Part One

Conflict of Interest Question Raised

By Patric Hedlund

LEBEC–A tiny American flag and a tattered cowboy hat holding four strips of yellow paper were the props at center stage in the Tejon Ranch Company’s split-level theater-in-the-round boardroom on Friday, July 18.

The event was a meeting of the Tejon Castac Water District Board. The question before the group was whether TRC and its partner, DMB Associates, have an adequate water supply available to support the 3,400 homes, resort hotels and golf courses proposed for their gated Tejon Mountain Village resort community.

The developers are in the Environmental Impact Report (EIR) phase of their entitlement process. Approval of a water supply assessment (WSA) by the Tejon Castac Water District Board, certifying that water supply is sufficient, must be included as part of the EIR to be submitted to Kern County, according to state law. The stakes are high. Without such certification, development could not go forward.

Seated at the table were Board President Dennis Atkinson, Vice President of Agriculture for Tejon Ranch; Babs Makinde, Tejon Ranch water resources manager; Robert Stine, President and CEO of Tejon Ranch Company; and Joe Drew, Senior Vice President of Real Estate for TRC. Two attorneys were there as well.

Several members of the public came to observe, along with Kern County Planner Lorelei H. Oviatt and Tejon Mountain Village development executives. They all rose to pledge allegiance to the tiny flag.

Then water district attorney Ernest Conant said, “A question of conflict of interest has been raised because the water district board members are also members of the board and employees of Tejon Ranch Company, and may have financial interest in the Tejon Mountain Village, LLC. We have reviewed this and don’t believe there is a conflict….But as a matter of caution,” he continued, “we will ask each of the directors to recuse themselves. Does each board member concur with my recommendation?”

There was agreement around the table. “There is a procedure,” Conant continued, “to requalify members so the board has a quorum in order to be able to act….” Then he reached for the hat in the center of the table.

Continued Next Week

This is part of the July 25, 2008 online edition of The Mountain Enterprise.

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