ITEM:		ACTION ITEM
17.	CONSIDER DETERMINATION OF SPECIAL CIRCUMSTANCES FOR 125 OCEAN VIEW BLVD., PACIFIC GROVE, CA
Meeting Date:			October 15, 2018	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item:
Prepared By:			David J. Stoldt	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: N/A
CEQA Compliance: This action does not constitute a project as defined by the California Environment Quality Act Guidelines Section 15378.

SUMMARY: District Rule 24-B requires that Non-Residential Water Use Capacity for a proposed project be calculated using “Table 2: Non-Residential Water Use Factors” adjusted for any verified Water Use Credit or On-Site Water Credit. However, District Rule 24-E-1 allows that “The General Manager may reduce (or increase) the Adjusted Water Use Capacity when Special Circumstances exist” (emphasis added.)

The property at 125 Ocean View Boulevard, Pacific Grove, has a verified Water Use Capacity of 18.53 acre-feet annually (AFA). The owner and a developer seek to develop a 225-room hotel on the site which, under normal circumstances, might result in a post-project Water Use Capacity higher than 18.53 AFA using the traditional factors from Table 2. Through the use of innovative design and construction methods (see Exhibit 17-A, attached) the developer believes that the Table 2 factors are too high and that the post-project Water Use Capacity will not exceed the existing capacity of 18.53 AFA.

As a result, the Board is being asked to determine that the proposed project be allowed to proceed with a finding of Special Circumstances.

RECOMMENDATION: The General Manager recommends the Board determine Special Circumstances exist for the proposed project at 125 Ocean View Boulevard, Pacific Grove and that the developer shall provide the District with a water demand and efficiency study documenting the project will not exceed 18.53 AFA of Water Use Capacity prior to permitting. Upon submission of the study and completed construction plans, staff shall review the project to determine that sufficient Water Use Capacity is available before a Water Permit is issued.

DISCUSSION: The District’s definition of “Special Circumstances” is as follows:

“Special Circumstances” shall mean (1) a list of specific circumstances shown in Rule 24-E where the General Manager may adjust the anticipated water demand calculation for a Water Permit, or (2) unusual, uncommon, peculiar, unique or rare situations that require Board consideration.

The discretion of the General Manager under (1) above is limited to projects that use non-potable supply for exterior uses, projects that utilize water in conjunction with a manufacturing process, or Non-Residential projects owned by a Public entity. The proposed project at 125 Ocean View Boulevard, Pacific Grove is none of these. Hence, it is the Board’s discretion to determine Special Circumstances exist under section (2) of the definition.

When Special Circumstances exist, projected water use figures must be supported either by historical use or other relevant documentation. To that end, the District should require a water demand and efficiency study prepared by a reputable outside consultant documenting the project will not exceed 18.53 AFA of Water Use Capacity.

When a Water Permit is issued under Special Circumstances, water use will be reviewed annually after occupancy. If actual water use exceeds the preliminary Water Use Capacity estimate, then the District will debit the Jurisdiction’s Allocation. Prior to issuance of the Water Permit by the District, the Jurisdiction must acknowledge in writing the potential debit to its Allocation, as well as authorize the District to issue a Water Permit based on a finding of Special Circumstances consistent with CEQA compliance for the proposed Project.

EXHIBIT

17-A Letter to District from Project Owner and Developer

U:\staff\Boardpacket\2018\20181015\ActionItems\17\Item-17.docx