Carmel planning commission backs moving water to affordable housing and divides remaining 14 acre‑feet among local uses

The Carmel‑by‑the‑Sea Planning Commission on Sept. 9 recommended that City Council formally place the 14 acre‑feet of water the city received from the Monterey Peninsula Water Management District into the city’s water allocation tables and shift 3 acre‑feet into the low and very low income housing category.

The recommendation, made during a public hearing on the city’s Water Management Program, includes combining single‑family and multifamily residential into one category and allocating 6 acre‑feet there; allocating 2 acre‑feet to commercial uses and 3 acre‑feet to municipal uses; and leaving the balance in an unallocated reserve to be reviewed annually by the commission.

Why it matters: The city is under a Monterey Peninsula Water Management District allocation process and a state cease‑and‑desist constraint that limits new meter hookups. How the city assigns the 14 acre‑feet affects whether projects — particularly deed‑restricted affordable units, ADUs and hotel‑to‑housing conversions in the adopted housing element amendment — can move forward without waiting for more water.

Staff planner Marnie Waffle told commissioners the 14 acre‑feet is currently in an “unallocated reserve” and that state and local rules require the city to document allocations in a council resolution. “This presentation is a result of a recent water allocation that the City received from the Monterey Peninsula Water Management District,” Waffle said during her staff report.

Commission discussion focused on how tightly to reserve the new water for deed‑restricted affordable housing versus spreading it more broadly to allow smaller, local housing and commercial projects to proceed. Some commissioners and public commenters urged allocating all 14 acre‑feet now rather than keeping most in reserve.

Public commenters included Adam Jeselnik, an architect and long‑time resident, who said the city should move the water into use so eligible projects can apply. Jeselnik said the district has additional water available should jurisdictions need more in the future, and urged the commission to send firm numbers to council.

The commission’s motion, made by Commissioner Locke and seconded, recommended the council adopt a resolution allocating the 14 acre‑feet as follows: 3 acre‑feet to low/very‑low income housing; 6 acre‑feet to a consolidated residential category (single‑family and multifamily); 2 acre‑feet to commercial uses; and 3 acre‑feet to municipal uses. The motion also asked staff to move an existing small balance from an expired category back into the residential category and delete the now‑obsolete category, and it directed staff to bring an annual report on activity in each category for possible reallocation.

Commissioners and staff underscored limits: properties still must have existing service connections to receive allocations under the district’s current rules, and the city cannot set new meters while the cease‑and‑desist order remains in force. Waffle said projects that do not increase net water use can be processed without regard to water allocations and that affordable projects can be accepted and put on a waiting list until water is available.

What’s next: Staff will take the commission’s recommendation to the City Council for a formal allocation resolution. The council already indicated interest in reserving 3 acre‑feet for lower‑income housing; the commission’s recommendation expands allocations for other local priorities and asks staff to monitor usage and return annually.

Community context: The allocation dovetails with the city’s recently adopted housing element (April 2024) and draft housing element amendment, which include programs such as LiveWork and mixed‑income incentives; those draft programs collectively have projected water demands staff estimated at roughly 30 acre‑feet under certain development scenarios. Waffle emphasized the estimates are illustrative and that timing of projects will determine when allocated water is requested.

Commission vote: The motion to recommend the allocation carried on a roll call vote (Commissioners Alborn, Allen, Locke and Chair LePage voted yes).