Carmel-by-the-Sea staff preview council agenda: water allocation, TOT draft, AW Shucks appeal

Carmel-by-the-Sea city staff on Friday previewed a packed City Council agenda that will include a decision on shifting a limited municipal water allocation, a consultant's briefing on revenue options and the first draft of ballot language to raise the city's transient-occupancy tax (TOT).

The moderator said the city holds "around 16 acre feet of water" and that the commercial allocation has been exhausted, meaning the City Council would need to approve any reallocation between buckets such as residential, affordable housing or municipal supply. "As the policy is written they have to be the ones that moves water around between the allocations," the moderator said.

Why it matters: reallocating water affects development approvals and available supply for housing categories that rely on set allocations. Staff also told the council it is in full budget season and will present revenue options, including potential ballot measures.

Staff said a consultant will present municipal revenue tools ranging from obvious options such as a TOT increase or sales tax adjustments to more complex assessment measures. The council will see the first draft of language for a measure that would raise the city's TOT from 10% to 12% and will hear public comment on whether to place it on the ballot.

The agenda will also include an appeal of the Planning Commission's decision on AW Shucks' application for a use permit to operate as a drinking establishment. The moderator said the council will hear that appeal at Tuesday's meeting.

Council members Baron and Delves's ad hoc committee is expected to return with a pathway to adopt residential design guidelines by the end of the year and will request council endorsement of that work plan.

Next steps: The City Council meetings are scheduled for Monday and Tuesday next week, when these items will be discussed and members will accept public comment.