ITEM:		DISCUSSION ITEM
16.	UPDATE ON RESOLUTION 2024-13 SUPPORTING CLOSURE OF OPEN WATER PERMITS BY IMPLEMENTING A ONE-TIME AMNESTY PERIOD
Meeting Date:			June 16, 2025	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:	N/A
Prepared By:			Stephanie Kister Stephanie Locke	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 Environmental Quality Act Guidelines Section 15378.

SUMMARY:   On October 21, 2024, the Board adopted Resolution 2024-13 which authorizes the use of the District Reserve Allocation to help close certain “open” Water Permits (those without a final inspection and those with noticed violations) issued prior to October 1, 2022, as well as documented unpermitted water fixtures found during a pre-2017 inspection. The action also suspended several rules and waived fees for these projects through September 30, 2025. There were approximately 1,600 open permits from 1993-2022 identified when the Board adopted the resolution, not including a number of noticed violations.

Outreach

Following adoption of the resolution, staff set up three orientation meetings for the planning and building staff to learn about the amnesty process. Invitations were sent to several people at each jurisdiction. A video link to a recorded version of the meeting was also provided, and a summary notice was prepared by District Counsel and published after adoption of the regulation. The notice included a link to the final resolution.

District staff have been contacting the current property owners by mail, requesting they schedule a final inspection. They are given 30 days to respond, and if they don’t make contact, a second letter is sent with an additional 30 days to respond. When no response is received following a second letter, a Notice of Non-Compliance is filed on the title with a copy sent to the owner. Usually, the first letter results in an inspection and the property can be cleared, and the recordation of notice also triggers a significant response.

The key personnel in each jurisdiction have been helpful and cooperative. In most cases, the District is only requesting a sign off when fixtures have been added to ensure that the jurisdiction has an opportunity to correct any violations on their end. There have been a few projects unrelated to the open permits that have been referred to the jurisdiction for permitting.

Phase 1: Open Permits that Require a Final Inspection

Letters have been sent in batches by jurisdiction to the current property owner. The following table provides current statistics for compliance with this Phase 1 effort. Letters were first sent to open permits in Pacific Grove, followed by Sand City and Seaside, then Del Rey Oaks, Monterey, unincorporated County and the City of Carmel. Non-responsive property owners are sent a second letter, followed by recordation of a Notice of Non-Compliance on the property title.

The following table summarizes the current activity in the first phase of the project through May 2025. While there were initially close to 1,600 “open” Water Permits identified, efforts reduced this down to 1,162 properties with open permits. Some properties have multiple open permits, such as Del Monte Center, Carmel Valley Manor, and the Presidio of Monterey for example, and they received one letter for all open permits. Other permits have been closed by staff resulting in the lower total number of properties needing final inspections as of June 1, 2025.

Jurisdiction	No. Properties	1^st Letter	2^nd Letter	Deed Restriction	Successfully Closed
Pacific Grove	177	177	65	28	80%
Sand City	20	20	10	6	80%
Seaside	138	138	37	20	75%
Del Rey Oaks	23	23	11	8	65%
Monterey	219	219	98	40	82%
Unincorporated County	513	513	171	34	93%
Carmel	72	72	31		35%
TOTAL	1,162

Phase 2: Open Permits with Current Violations

The second phase of the amnesty program will be to clear properties that have noticed violations that have not been corrected. Permit violations and properties that have been given notice of requirements for a Water Permit should also be considered “open” permits. Starting in June, letters will be sent to these property owners giving them the opportunity to amend permits without penalties and to clear violations with the goal of completing the effort in August.

Impacts on Staffing

This project has added over 100 inspections per month to the schedule and has increased telephone calls, emails and other correspondence which is challenging staff. Of the inspections conducted, approximately 23% of them fail the first inspection usually due to different water fixtures than originally permitted. When an inspection fails, the inspector provides the property owner with information about the process to amend the Water Permit.

The staff time required to track the status of each inspection, send follow up letters, update statuses in the database, and coordinate with the Jurisdictions is immense. The two Conservation Analysts take over after the inspection with the goal of amending and closing the permit. Failing inspections require anywhere from 30 minutes to two hours of additional staff time to research and re-permit and may require a revised deed restriction and/or approval from the Jurisdiction. Inspection statistics are reported to the Board in the monthly Water Conservation Report.

Staff have encountered a range of reactions to this enforcement effort, although the majority have been positive. Most property owners have been cooperative and schedule their required final inspections when they understand that the requirement to schedule a final with the District was the property owner’s responsibility. A smaller number have expressed frustration regarding the time lapse between the permit issuance and the District's follow-up. In some cases, there are new owners since the permit was issued, and some never did the permitted project.

Impacts on District Reserve Allocation

Surprisingly, most permit amendments do not require additional water to close the permit. The Board authorized the use of the District Reserve Allocation for those projects that qualify for amnesty. Between October and May 31, 2025, 1.217 Acre-Feet of the District Reserve Allocation has been utilized for this project. Use of the District Reserve is reported in the Monthly Allocation Report.

Next Steps

Staff is continuing to send letters, conduct inspections, and finalize Water Permits in the first phase of the program. The second phase is currently being prepared for implementation later in June. Since the amnesty period closes at the end of September, there are more than three months to complete the project. As stated previously, monthly updates are available in the board packet’s Water Conservation Report and Monthly Allocation Report.

RECOMMENDATION: No action is required for this matter. It is provided for information/discussion only.

EXHIBIT

None

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