ITEM: ACTION ITEMS

11. Consider Amending the Original Pebble Beach Reclamation Project Agreements to Designate the Pebble Beach Community Services District (PBCSD) Fire Station Site As A “Benefited Property”

Meeting Date: August 18, 2003 Budgeted: N/A

Program/Line Item No.: N/A

Staff Contact: Stephanie Pintar Cost Estimate: N/A

General Counsel Approval: District Counsel and Special Counsel have reviewed this request.

Committee Recommendation: Water Demand Committee supports the recommendation.

CEQA Compliance: Monterey County (Mitigated Negative Declaration, Pebble Beach Community Service District Facilities Improvements, PLN 0010445)

SUMMARY: The Pebble Beach Community Services District (PBCSD) has requested an amendment to the Wastewater Reclamation Project Fiscal Sponsorship Agreement to include its fire station site in the list of benefited properties. Earlier this year, the Pebble Beach Company conveyed 2.2 acres of “benefited property” to the Pebble Beach Community Services District (PBCSD) to facilitate improvements to its fire station and related community service facilities. With the purchase of the property, the Pebble Beach Company included 1.0 acre-foot of water from its water entitlement. The PBCSD is in the process of realigning the lot line of its current fire station site to incorporate the land purchased from the Pebble Beach Company. Once the lot line adjustment is completed, technically one-half of the property will be “benefited” and the other half will not be.

County approvals for PBCSD’s expansion are currently pending, and PBCSD needs the property issue resolved in order to meet County deadlines for grading. The County only allows grading between April 15 and October 15. PBCSD’s urgency in resolving the water allocation for the project is also due to the fact that PBCSD is presently storing equipment outside its existing facility while awaiting construction of new storage facilities, offices and a maintenance facility. Equipment being stored outdoors includes a television van and a reserve fire engine.

The Board should consider amending the original Pebble Beach Reclamation Project agreements to include the (PBCSD) fire station site as a benefited property. A copy of the revised PBCSD property description is attached as Exhibit 11-A. A technical amendment will enable fire station and related administrative and maintenance facilities improvements to be constructed based upon water from potable entitlements created by the Pebble Beach Reclamation Project.

RECOMMENDATION: Staff recommends that the Board direct staff to amend the Wastewater Reclamation Project Fiscal Sponsorship Agreement to include the PBCSD site in the list of benefited properties.

On July 21, 2003, the Water Demand Committee reviewed the PBCSD request and the action considered by the Board on February 27. The Water Demand Committee asked the Acting General Manager to contact Special Counsel regarding any potential problems associated with making this technical amendment at this time. Special Counsel did not foresee any problems with this action. Therefore, staff’s recommendation is to add the PBCSD site to the list of benefited properties.

BACKGROUND: The Board considered this item at its February 27, 2003 meeting (staff report attached as Exhibit 11-B). The issue was deferred to allow it to be resolved as part of the discussions regarding modifications to the financing and operations agreements for Phase II improvements to the CAWD/PBCSD Wastewater Reclamation Project. At the time that the Board deferred action, PBCSD’s General Manager Richard Andrews agreed to the delay, as it appeared that the Phase II discussions would be forthcoming. The Board is still in the process of resolving the Phase II issues, and it appears that resolution is several months away.

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