ITEM:		PUBLIC HEARING
10.	CONSIDER APPLICATION FOR VARIANCE OF SEPARATE WATER METER REQUIREMENT FOR A 19 UNIT SENIOR AFFORDABLE HOUSING PROJECT – 669 VAN BUREN STREET, MONTEREY (APN: 001-512-020)
Meeting Date:			January 25, 2017	Budgeted:	N/A
From:			Dave Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Stephanie Locke	Cost Estimate:	N/A
General Counsel Approval: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: MidPen Housing Corporation is requesting Board approval of a variance to allow the installation of in-line water meters in lieu of individual Cal-Am water meters at a 19-unit low-income senior housing project at city-owned 669 Van Buren Street, Monterey. The Site is currently served by three water meters. The project was designed to have a central water heating plant for domestic hot water that includes thermal solar water heating and allows for high efficiency condensing water heaters. The central water heater plant will have two water heaters, allowing redundancy. A central plant also reduces the space needed in the individual units for water heaters and allows the project to keep gas out of the units to increase the safety of the senior residents.

The applicant intends to have hot and cold water submeters in the units for the tenants that will be electronically monitored by a central computer. Consumption information will be available to MPWMD. MidPen Housing Corporation will be paying the utility bills for the project, and is therefore motivated to ensure that water consumption on the site is not excessive. MidPen Housing Corporation’s variance application is shown at Exhibit 10-A.

District Rule 23-A (3), shown as Exhibit 10-B, requires that each water user have a separate Water Meter. Separate metering is also a best management practice of the California Urban Water Conservation Council. Furthermore, state legislation passed in 2016 (California Water Code, Div. 1, Ch.8, Article 5) requires every unit in a multi-unit residential structure to either have a utility meter or a submeter, but specifically exempts low-income housing.

The District Rule also allows for a variance when there are special circumstances or undue hardship. The applicant has indicated that there are special circumstances which merit consideration of a variance to the rule for this particular affordable senior housing project. As stated in the variance request, the requirement to install separate hot water heaters and individual Water Meters in this project would increase the project cost and would increase the cost of utilities for the limited income residents. MidPen Housing Corporation has indicated that this affordable senior housing project could be compromised if required to install separate hot water systems to each residential apartment.

There have been three similar situations where variances have been granted for in-line meters at affordable housing projects: (1) the use of a single meter for each building was authorized for the Pacific Meadows senior housing complex in Carmel Valley; (2) the City of Monterey received a variance from the separate Water Meter requirement for the Osio Plaza low to moderate-income housing units; and (3) South County Housing Corporation received a variance to allow for the use of in-line meters for 49 low-income senior housing units in Pacific Grove.

RECOMMENDATION: District Rule 23-A, requiring individual Water Meters was adopted to encourage conserved water by making each water user accountable for their consumption. Individual water meters also facilitate compliance with water use reductions during rationing periods. MidPen Housing Corporation has agreed to install in-line meters for each unit (sub-metering) to have access to information about individual water use if needed. The proposed action by MidPen Housing Corporation to sub-meter the units supports the Districts goals.

Staff recommends the Board approve the variance and adopt the Findings of Approval attached as Exhibit 10-C, including the following conditions: (1) In-line meters for each unit must be installed and maintained. The in-line meter data must be accessible to the building management to assist with water use tracking during times of rationing. The applicant/owner shall provide this information to the District upon request; (2) Outdoor water use at the project site will be separately metered; (3) The Board’s approval of this request is limited to one year. Within the year, the applicant must obtain water and building permits.

EXHIBITS

10-A Variance Application submitted by MidPen Housing Corportation

10-B District Rule 23-A (3)

10-C Draft Findings of Approval

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