ITEM:		ACTION ITEM
13.	CONSIDER DENIAL OF REQUEST FROM CITY OF MONTEREY RE ALLOCATION FOR 2000 AND 2600 GARDEN ROAD, MONTEREY
Meeting Date:			May 18, 2020	Budgeted:	N/A
From:			David J. Stoldt	Program/
			General Manager	Line Item No.:	N/A
Prepared By:			David J. Stoldt	Cost Estimate:	N/A
General Counsel Approval: N/A
Committee Recommendation: The Water Demand Committee met May 7, 2020 and voted to deny the request 3-0.
CEQA Compliance: Action does not constitute a project as defined by the California Environmental Quality Act Guidelines section 15378.

SUMMARY:  At its March 5, 2020 Water Demand Committee meeting, the Committee discussed a letter dated February 18, 2020 from the City of Monterey requesting a water allocation for affordable housing projects on Garden Road. The allocation would come from the District Reserve initially, but shifted to a future District allocation for jurisdictional use based on housing needs.

The allocation would allow 31 additional 100% affordable units at 2000 Garden Road and 35 additional 100% affordable units at 2600 Garden Road.

The day prior to the March Committee meeting, the State Water Resources Control Board (SWRCB) submitted an email expressing its concerns with such an approach. The email simply clouded any decision to release water at this time, prior to having discussion with SWRCB staff once total Peninsula needs are identified. At its April 2, 2020 meeting the Water Demand Committee took up this matter with Director Hoffmann initially making a motion for the committee to defer action until after staff and the SWRCB meet and come to some accommodation regarding use of the District Reserve. However, Director Edwards then suggested staff bring the item back in May and Director Hoffmann agreed. Director Edwards then turned that suggestion into a motion and it passed 3-0.

At this time, staff is recommending denial of the request because of the SWRCB email still being unresolved, as well as the policy for the use of the District Reserve is under separate discussion (see agenda Item 14.) Water Demand Committee concurred with a 3-0 vote to recommend denial by the Board at its May 18th meeting.

The Committee supports the projects, but believes it is appropriate to wait until a Peninsula-wide solution can be brought forward. District staff is still planning to visit with SWRCB staff about water for housing needs under the Cease and Desist Order (CDO) once the various jurisdictional needs are known, as an outcome of the Technical Advisory Committee (TAC) process. The General Manager spoke with the SWRCB attorney assigned to the CDO on April 30, 2020 to begin the process of seeking accommodation for near-term housing needs under the existing CDO.

RECOMMENDATION: The Committee recommends the Board deny the City’s request at this time and direct staff to interact with SWRCB on Peninsula-wide housing needs and the CDO, pursuant to the TAC process.

EXHIBIT

None

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