Agenda 05-19-2026; 8-i - Declaration of Easements and Restrictive Covenants for the Crisis Diversion Facility

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2 4. Sanitary Sewer Easement — Establishes an easement for the County and Capkov in the event that Capkov develops its property first or the County needs to connect to the sanitary sewer line across Capkov's property, as shown in Exhibit D. The current plan is to connect to the sanitary sewer in the public right-of-way on Waterstone Drive, in which case the easement would not be needed 5. Sign Easements — Establishes easements on both sides of the new road, as shown on Exhibit E, so either party could construct a monument sign, along with an agreement on maintenance, repair, and cost sharing of the monument signs. The agreement specifically allows either party to refrain from using this space, thereby exempting them from maintenance costs. The County's current plan is to install a monument sign on the north- west section of the County property near the entrance. 6. Road Construction Easement and other Improvements — Establishes easements for the County to complete work necessary along Waterstone Drive 7. Payment in Lieu — As approved as part of the purchase and sales agreement, the County may contribute up to $35,000 to the Town of Hillsborough or provide a reimbursement to Capkov for the future completion of road improvements to connect the new road to Phobe Street. FINANCIAL IMPACT: The agreement specifies that the County will be responsible for the construction and ongoing maintenance of all site infrastructure. Funding for the construction of the Crisis Diversion Facility, including the $35,000 payment in Lieu, was approved as part of the FY 2025-35 Capital Investment Plan. Ongoing maintenance costs will be funded through the Asset Management Services operating budget. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 2: HEALTHY COMMUNITY OBJECTIVE 1: Improve harm reduction, prevention, and support services for adults and children experiencing behavioral health issues, substance use disorder, and intellectual or developmental disability. OBJECTIVE 4: Reduce impacts and barriers for justice-involved children and adults through deflection, diversion, therapeutic interventions, and re-entry support, including housing. RECOMMENDATION(S): The Manager recommends that the Board approve the Declaration of Easements and Restrictive Covenants between Orange County and Capkov Ventures, Inc. for the Crisis Diversion Facility, and authorize the Chair to sign the document upon final review by the County Attorney.