ITEM:		PUBLIC HEARINGS
21.	CONSIDER REQUEST FOR VARIANCE FROM INDIVIDUAL WATER METER REQUIREMENTS (DISTRICT RULE 23) CARMEL FOUNDATION (APN 010-136-013)
Meeting Date:			June 15, 2009	Budgeted:	N/A
From:			Darby Fuerst	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Stephanie Pintar	Cost Estimate:	N/A
General Counsel Approval: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: The Carmel Foundation, a California Public Benefit Corporation, is requesting Board approval of a variance to the District’s metering requirements to allow a single California American Water (CAW) connection to supply domestic water to a low-income senior housing project at Dolores Street between 4^th Avenue and 5^th Avenue in Carmel. The project involves construction of fourteen low-income residential units. The Carmel Foundation is a local non-profit membership organization that provides substantial activities, services and assistance to local seniors. The Carmel Foundation’s variance application is Exhibit 21-A.

District Rule 23-A-1-i (Exhibit 21-B) requires that each water user have a separate water meter. A “user” is defined as a customer or consumer of water, and includes each residence and every non-residential enterprise that has water uses. District Rule 90, Variance, states that “the Board may, after holding a public hearing, in specific cases, grant a variance from any provision of the standards incorporated in these Rules and Regulations whenever it finds: (a) that special circumstances exist in a particular case, and (b) that practical difficulties or unnecessary hardship would result from the strict interpretation and enforcement of any such standards, and (c) that the granting of such a variance would not tend to defeat the purposes of these Rules and Regulation”.

DISCUSSION: The Carmel Foundation is requesting a variance to the District’s metering requirements for its senior housing project. Installation of individual water meters for each unit would substantially increase the project costs and would result in a loss of parking, living area, and landscaping along the front of the property. Installation of individual CAW meters for each unit would present a hardship that could jeopardize the project. The project was planned with a central hot water system; installation of individual CAW meters would require new engineering and would be cost-prohibitive.

To mitigate the effects of using a master meter (i.e., one main CAW meter for domestic water needs), the applicant has agreed to install electronically monitored in-line water meters in each unit’s hot and cold water lines, thereby not defeating the purpose of the metering regulation. The applicant has also agreed to provide meter readings to the District. In addition, the project will incorporate installation of ultra-low consumption washers, High Efficiency Toilets, and minimal drought tolerant landscaping. All of these measures will ensure that water is efficiently used for the project.

District Rule 23-A-1-i, requiring individual water meters, was adopted to encourage conservation by making each water user accountable for their consumption. Individual water meters also facilitate compliance with water use reductions during rationing periods. The Carmel Foundation has indicated its willingness to install and monitor in-line water meters for each tenant and to allow the District access to all consumption records. The proposed action to sub-meter the units supports the District’s goals.

RECOMMENDATION: Staff recommends the Board approve the variance with the following conditions:

1. The applicant shall install two water meters: One for exterior uses and one for interior uses.

2. The applicant shall install and maintain electronically monitored in-line water meters in both the hot and cold water lines to each unit.

3. The applicant shall install in-line water meters for hot and cold water to measure water use in the common laundry room.

4. The applicant shall agree that a Notice and Deed Restriction Regarding Limitation on Use of Water on a Property will be recorded on the property. This document will list these conditions and any others that were initially included in the Water Permit for the project.
5. The applicant shall agree that a Notice and Deed Restriction to Provide Public Access to Water Use Data will be recorded on the property. This document provides authorization to retrieve, collect, compile and report actual water use data for the property. Obtaining this authorization releases the District from the restrictions of any Non-Disclosure Agreement between the District and California American Water.
6. The applicant shall enter into an indemnification agreement with the District, whereby the Applicant agrees to indemnify, defend and hold harmless the District from any and all legal and financial responsibility that may arise in connection with approval of the variance, including but not limited to attorney’s fees and costs that the District may incur.

Staff recommends the Board adopt the Findings of Approval attached as (Exhibit 21-C).

BACKGROUND: There have been seven similar situations where the District Board has granted variances to allow in-line water meters: (1) The use of one meter for each building was authorized by the Board for the Pacific Meadows senior housing complex in Carmel Valley; (2) individual in-line meters have been used at the Naval Postgraduate School for new buildings on the main campus; (3) Santa Catalina School received a variance from the separate water meter requirement for new dormitory/faculty apartments with the condition that the school install in-line meters to monitor water use; (4) the City of Monterey received a variance from the separate water meter requirement for the Osio Plaza low to moderate-income housing units; (5) South County Housing Corporation received approval of a variance to allow a single California American Water connection to supply water to 49 low-income senior housing units; (6) PRI, LLC received a variance to allow a single California American Water connection to supply water to 18 affordable housing units; (7) Design Center, LLC received approval of a variance to allow a single California American Water connection to supply water to a mixed-use (i.e. commercial and residential) project; and (8) GLC Foothill Monterey, LLC received approval of a variance to allow a single California American Water connection to supply a non-residential use project with nine tenants.

Staff was asked to inquire about CAW in-line meters after the last variance was granted to GLC Foothill Monterey, LLC. Although CAW has previously had “condo” meters, CAW no longer offers that service. Billing for the Carmel Foundation project will be made through the two house meters and will be paid by Carmel Foundation.

EXHIBITS

21-A Variance Application

21-B District Rule 23-A

21-C Findings of Approval

u/staff/word/boardpacket/2009/20090615/pubhrgs/21/item21.doc