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BACKGROUND New State Submeterinq Requirement. During the recent drought, California legislators found that water conservation is more effective when individuals can monitor their own water usage. Legislators noted that many residents living in apartments or mixed-use buildings often have a fixed charge for water included with their rent. Such fixed charge does not encourage conservation. With a policy interest towards promoting water conservation, the legislature adopted Senate Bill 7 (2016, Wolk). SB 7 requires that each dwelling in a multiunit residential structure of two or more dwellings have an individual water meter or submeter. This requirement applies to structures that are completely residential, as well as mixed-use. SB 7 exempts affordable housing projects, time shares and a few other uses. SB 7's submetering requirements place the entire burden of submeter installation, maintenance, reading, and allocation of water costs on the private property owner. The City's Utilities Division will continue to install appropriately sized individual water meters and read such individual meters for billing purposes. The private property owner will only pay charges and connections fees (to the City and Zone 7) for individual meters installed. Submeters will be the exclusive responsibility of the private property owner, with SB 7 including many administrative requirements for such submeters. City's Water Meter Process The City's current process for water meter installation is divided into two categories. (1) single family detached homes, duets, and townhouses; and (2) condominiums, apartments, and commercial uses. For Category 1 dwellings, the City requires individual water meters for each residence.' For Category 2 uses, the City requires individual water meters for each residential condominium; commercial condos, apartments and commercial uses under single ownership and control can• (a) have only one connection; or (b) be required to have multiple connections; at the determination of the Director of Operation Services.2 (See Municipal Code § 14.04 050 C.) DISCUSSION To incorporate the submetering requirements of SB 7, amendments are proposed to Municipal Code Chapters 14.04 Regulation of Water System and Water Service Fees and 14.08 Water Connections, as shown in Attachment 1.3 These changes include: § 14.04 010 - New definitions for terms from SB 7. § 14.04.050 - Adds requirement that dwellings in multiunit residential structures be either: (a) individually metered; or (b) submetered Clarifies existing practice of requiring individual meters for single family dwellings, duets, townhomes and condos. 1 During construction, the City's building inspector notifies the Utilities Division when to set such individual water meters. Connection fees were paid when the building permit was issued 2 For Category 2 projects, the City's construction services inspector notifies the Utilities Division when to set water meters. Connection fees were paid with encroachment permits Amendments are shown in track changes. If the ordinance is introduced, when adopted at a subsequent meeting the changes will be accepted for codification purposes Page 2 of 3