Meeting Date:           November 24, 2003                            Budgeted: N/A

                                                                                                Program/Line Item No.:  N/A

Staff Contact:             Robert Cline                                      Cost Estimate: N/A

                                    Gabriella Ayala


General Counsel Approval: N/A

Committee Recommendation: N/A

CEQA Compliance: N/A 


SUMMARY: Mr. Gregory Hanlon, 672 Van Buren Circle, Monterey, is appealing a decision of the General Manager to deny a Water Use Credit for removal of a spa (Exhibit 9-A).  Resolution 2001-09 modified Rule 24, Table I: Residential Fixture Unit Count, in July 2001, eliminating water credits for outdoor water fixtures (Exhibit 9-B).  In addition, Table 1: Residential Fixture Unit, specifically exempts hot tubs/spas from the water permit requirement.  Current rules allow a hot tub/spa to be added without a water permit, and similarly, no credit is established for removing one.  A copy of the current Rule 24, Table 1 is attached as Exhibit 9-C. 


In September 2000, the applicant obtained a water permit (#18714, attached as Exhibit 9-D) to add a bathroom, utility sink and bar sink to his home on Van Buren Circle in Monterey.  On October 24, 2000, the District amended the water permit to legalize a spa (see Water Release Form attached to Exhibit 9-D).  At that time, and until July 2001, District law required a water permit for outdoor spas.  The City of Monterey authorized water from its “other water source” allocation and the applicant paid a connection charge for the added fixtures.  As Mr. Hanlon paid connection charges to permit the spa, he feels he should receive a credit for removal of the spa.


The District conducted a final inspection to verify compliance with District conservation requirements on May 8, 2003.  At that time, staff indicated on the inspection report that there was no credit for the spa pursuant to MPWMD Resolution 2001-09 (Exhibit 9-E).  Mr. Hanlon requested verification of the credit denial in a letter to the District that was received on June 30, 2003 (Exhibit 9-F).  The District responded on July 15, 2003, formally denying credit for the spa (Exhibit 9-G). 


Mr. Hanlon is currently adding a third bathroom to his home.  Mr. Hanlon states that because he paid for one fixture unit to legalize the spa in 2000, and because he was not personally notified of the change in spa fixture unit value brought about by MPWMD Resolution 2001-09, he should be entitled to the former spa fixture unit value.  On November 3, 2003, Mr. Hanlon obtained a water permit to add a half bath from the District, pending the final decision on the water credit for the spa.  The fixtures in the half bath were offset by eliminating the utility sink and the bar sink that were added in 2000.  To complete the proposed full bathroom addition, Mr. Hanlon has the option of eliminating (or relocating) a second showerhead in the existing master bathroom shower to offset a new shower or bathtub in the current project.


RECOMMENDATION:   Staff recommends the Board deny the appeal and adopt the Findings of Denial attached as (Exhibit 9-H).  District staff has discussed the options available to Mr. Hanlon that would allow the bathroom addition to proceed despite the change in the District’s rules as they relate to hot tubs/spas.  A similar appeal was heard in April and June 2003, when Bruce Zanetta and Therese Beauclaire appealed staff’s denial of credit for multiple showerheads.  In that case, Resolution 2001-09 eliminated water credit for multiple showerheads.  The Board ruled that the applicant was subject to the Rules in effect at the time the complete application is received.     


Water permit applications are subject to the Rules and Regulations that are in effect at the time the complete application is received.  The District’s Rules and Regulations are subject to change by action of the Board of Directors.  This appeal applicant received and completed a project using a former set of rules that was in place in 2000.  The rules have changed since the applicant’s last project.  Mr. Hanlon is now subject to the current rules. 


BACKGROUND:  District Resolution 2001-09, adopted by the Board on July 16, 2001 following a public hearing, modified District Rule 24, Table 1: Residential Fixture Unit Count to disallow water use credits for outdoor water fixtures.  A reasonable time was allowed (from July 16, 2001 until December 31, 2001) for a complete application to be filed with the jurisdiction to utilize any water fixture credits that were changed by the Resolution.  Notice of the window of opportunity was posted on the District’s website and in the District offices.  The District allowed water credits during the window of opportunity for water fixtures/credits that were documented prior to the date of the Resolution.  To use the water credits previously documented by the District, a complete application had to have been on file by December 31, 2001 with the planning and/or building department in the jurisdiction where the property was located.