City Council Regular Meeting


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  12.A.       
Meeting Date: 04/07/2021  

RECOMMENDATION
Receive a report on the status of the City’s water reserves per the January 2021 Monterey Peninsula Water Management District (MPWMD) monthly allocation report and monthly entitlement report.
DISCUSSION
The Municipal Code PGMC 11.68 governs the City’s water distribution regulations and established priority dates for wait-listed applications. The City maintains a Water Wait List that provides for the orderly distribution of available water and the City Council last received a status report on March 4, 2020.

It is important to note that at this time a California Public Utility Commission (CPUC) moratorium may interfere with Cal-Am's ability to set new water meters to serve projects that do not have access to a current, active Cal-Am water meter. Vacant lots remain on the waitlist due to the property owner's current inability to set a new meter due to the regulatory water drought.

Each month, the MPWMD releases a Monthly Allocation Report and a Monthly Entitlement Report in the MPWMD Regular meeting agenda packet. The most recent reports available for the month of January 2021 states the City has a total of 0.079 acre-feet (AF) of water available for allocation and 33.442 AF of entitlement water remaining available for purchase.

Public potable water available for allocation remains extremely scarce in Pacific Grove and water demand exceeds the City’s current allocation supply by approximately 4.2-acre-feet. Entitlement water became available in 2019 and the City began sales of entitlement water in July 2019. Residential projects requesting water include existing established single-family residential units that purchasing entitlement water to add bathroom(s), laundry rooms, and/or utility sinks.

The MPWMD currently uses the following water factors to approximate water needs for residential uses:
Single-family homes in an urban setting (vs rural) - 0.20 AF
Multi-family units - 0.12 AF
Accessory Dwelling Units - 0.07 AF

Approximately 9.87 AF remains available for purchase for affordable units according to Council's entitlement water allocation direction. This amount represents approximately 141 new ADUs or 82 multi-family units using the MPWMD factors. To date, new accessory dwelling units represent the bulk of the 1.050 AF of affordable housing entitlement water that is distributed. These are new residential units that are added to and serve to increase the City's housing stock.

Commercial projects include the Pacific Grove Hotel located at 157 Grand Ave. and the mixed-use project at 520 Lighthouse Ave.  The MPWMD distributed 3.432 AF for the 520 Lighthouse mixed-use project; however, payment to the City will be received prior to the final approval of the building permit.

The information is summarized in the table below.
  Non-Entitlement
Water (AF)
Entitlement Water
available for
purchase (AF)
Affordable
Housing
Entitlement Water
Water
Allocation*
0.079 26.890 11.5
Water
Distributed**
0.0 3.898 1.05
Wait
Listed***
-4.1915 11.4746 0.58
Balance
Remaining
-4.1125 11.5174 9.87

*Water Allocation - water allocation available for potential projects.
**Water Distributed – water allocated by the MPWMD.
***Wait Listed – amount of additional water requested by project applicants but not allocated by the MPWMD
OPTIONS
1. Take no action.
2. Redistribute entitlement water in different amounts to the General and Affordable Housing Categories.
FINANCIAL IMPACT:
Allocation and/or sales of potable water to property owners may result in increased tax revenue for the City. Potential financial impacts include increased sales tax from commercial projects, increased sales taxes from commercial leases on City-owned property and increased tourism due to improvements, and potential increased revenue from higher assessed values of residential projects. An update on water entitlement sales is forthcoming at a later date.
  
GOAL ALIGNMENT: City Asset Stewardship: Repair, maintain and improve City assets, including streets, sidewalks, sewer systems, buildings, and parks and trails.
Attachments
MPWMD Non-Entitlement water
MPWMD Entitlement water
PPT


    

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