ITEM: ACTION ITEMS

13. CONSIDER PROCESSING A REQUEST BY PEBBLE BEACH COMMUNITY SERVICES DISTRICT (PBCSD) TO DESIGNATE PBCSD PROPERTY AS A BENEFITTED PROPERTY TO THE CAWD/PBCSD WASTEWATER RECLAMATION PROJECT

Meeting Date: February 27, 2003 Budgeted: N/A

Program/Line Item No.: N/A

Staff Contact: Stephanie Pintar Cost Estimate: N/A

General Counsel Approval: District Counsel review and comments noted below.

Committee Recommendation: NA

CEQA Compliance: N/A

SUMMARY: Pebble Beach Community Services District (PBCSD) has requested that its existing site (2.5 acres) be considered a “benefited property” (Exhibit 13-A). PBCSD is planning to consolidate its existing site (APN 008-031-009) with part of an adjacent parcel (APN 008-031-017) that is being acquired from the Pebble Beach Company (Exhibit 13-B). PBCSD is purchasing one acre-foot of water from Pebble Beach Company as part of the property purchase. PBCSD’s request is for the newly consolidated parcel to be considered a “benefited property” according to Rule 23.5. The effect of this request would be to make the water freed up by the CAWD/PBCSD Wastewater Reclamation Project available to the entire parcel. This request would not increase the amount of water available from the existing entitlements.

District Rule 23.5 outlines the permit process for using entitlements of water that were received as a result of water being freed up by the Wastewater Reclamation Project. The complete text of Rule 23.5 is contained at Exhibit 13-C. “Benefited Properties” are defined in Rule 23.5 as “those properties within the Cal‑Am service area which have been identified within the application of the selected Fiscal Sponsor/Sponsors and upon which Water Entitlements granted pursuant to a Water Use Permit may be utilized.”

The Board is asked to provide direction on the process to respond to PBCSD’s request. The Board may deny the request, or if the Board chooses to grant the request, District Counsel has suggested two options that will allow the PBCSD property to receive water from the reclamation project entitlements:

1. A definitional change could be made to Rule 23.5, Benefited Properties. Revising the definition of “benefited properties” would require an ordinance.

2. A “Technical Amendment” could be made to the Wastewater Reclamation Project Fiscal Sponsorship Agreement. In this scenario, the Fiscal Sponsorship Agreement could be modified to include the existing PBCSD facility in the list of benefited properties. Reasons supporting this technical amendment: The property (1) is owned by a public entity; (2) is adjacent to a benefited property; (3) is unique in that it is located on an “island” that has public roads on two sides and the benefited property that it is acquiring on the third side; and (4) the new parcel will be created by consolidating a benefited property with a non-benefited property. An amendment would allow the one acre-foot allotment of water from Pebble Beach Company to be used throughout the new parcel.

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RECOMMENDATION: Staff recommends that the Board provide direction to staff on processing this request. If the Board chooses to grant the request and directs staff on the method to include the PBCSD parcel, a public hearing will be held prior to action on the request. If an ordinance is required to amend the definition of “Benefited Property,” an ordinance will be prepared for first reading at the next available Board meeting. An amendment to the Fiscal Sponsorship Agreement could also be prepared and ready for consideration at the next available Board meeting.

BACKGROUND: Pebble Beach Company (PBC) is the principal fiscal sponsor of the $33.9 million CAWD/PBCSD Wastewater Reclamation Project and was granted an entitlement of 365 acre-feet of water per year for use on certain or “Benefited Properties” located in the Del Monte Forest area of Monterey County and owned by the PBC. PBC supports PBCSD’s request to amend the Fiscal Sponsorship Agreement to allow water from PBC’s entitlement to benefit adjacent property owned by PBCSD when a piece of PBC’s Benefited Property is acquired. A letter of support from Mark Stilwell, Executive Vice President of Pebble Beach Company, is attached as Exhibit 13-D.

The following is a list of previous amendments to the Fiscal Sponsorship Agreement:

· April 15, 1996 – Amendment to add additional lot to the list of Benefited Properties in the Griffin Estates. Property was located adjacent to their property described in the Fiscal Sponsorship Agreement.

· December 12, 1996 - Amendment to add two PBC-owned lots to the list of Benefited Properties. The additional lots were contiguous to two of PBC=s existing Benefited Properties in the Lodge area.

· June 16, 1997 – Amendment to add two PBC-owned lots to the list of Benefited Properties. The additional lots were contiguous to two of PBC=s existing Benefited Properties in the Lodge area.

• September 15, 1997 – Amendment to add parcel inadvertently omitted from list of Benefited Properties. Property was located adjacent to other property described in the Fiscal Sponsorship Agreement.
• August 17, 1998 – Amendment to add four PBC-owned parcels to the list of Benefited Properties. Properties were outside the Del Monte Forest in Pacific Grove, but were located adjacent to properties described in the Fiscal Sponsorship Agreement.

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