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Council asks staff to draft water‑allocation resolution, sets interim split of incoming supply
Summary
After a lengthy debate, the council directed staff to prepare a draft allocation resolution that places 3 acre‑feet to very low/low income housing, 3 AF to single‑family residential, 2 AF to multifamily residential and creates an ADU category (0 AF) while leaving remainder unallocated for future decisions.
The Carmel‑by‑the‑Sea City Council on Tuesday directed staff to prepare a draft water‑allocation resolution that would apportion part of the 14 acre‑feet recently made available to the city by the Monterey Peninsula Water Management District.
The Planning Commission had recommended a distribution of the newly available supply; council members debated that recommendation for more than two hours. The Council ultimately approved a motion to have staff return with a formal ordinance that (1) reserves 3 acre‑feet for very low and low income housing, (2) sets 3 acre‑feet for single‑family residential projects, (3) sets 2 acre‑feet for multifamily residential projects, (4) creates a separate category for accessory dwelling units (ADUs) with no allocation at present, and (5) leaves the remaining supply in the city’s unallocated reserve for later allocation.
Councilmembers and outside agency representatives discussed a range of technical, legal and regional considerations. R. A. Sherian, general manager of the Monterey County Water Resources Agency, urged caution and noted regional groundwater‑management work and pending updates to groundwater sustainability plans that may affect supply planning. Stephanie Locke, water demand manager at the Monterey Peninsula Water Management District, said the district and partner agencies had evaluated source water and that district staff was comfortable making the 14 acre‑foot allocation available to jurisdictions.
Nathan Smith, a fire captain and paramedic who spoke during public comment, argued that improved availability of water for housing and municipal needs improves public safety; several residents and developers asked for allocations to proceed to allow permit activity and small renovations to proceed.
The council’s motion directs staff to draft the formal ordinance and return with recommended language for the city’s municipal code, together with a proposed implementation schedule and an annual monitoring plan. Council members emphasized that allocated water will remain dedicated to the city and cannot be sold off-site; staff and the district confirmed that state and district rules bar resale.
Council also asked staff to study and report back on several policy questions: whether ADUs should receive a separate allocation or be included in residential buckets; whether pre‑allocation fixture retrofits should be required prior to a building permit that increases water demand; how mixed‑income projects should be allocated water; and whether water tied to hotel‑to‑residential conversions should be charged to commercial or residential buckets.
Councilmembers voted 5–0 to direct staff to prepare the allocation resolution and return with an ordinance draft and implementation plan.
