ITEM:		PUBLIC HEARING
11.	CONSIDER APPLICATION FOR VARIANCE FROM SEPARATE WATER METER REQUIREMENT FOR A 40-UNIT SENIOR HOUSING PROJECT – 200 GLENWOOD CIRCLE, MONTEREY (APN: 001-771-013-000)
Meeting Date:			March 18, 2019	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No:
Prepared By:			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: The Park Lane (a senior living facility) is requesting Board approval of a variance to allow permanent installation of in-line water meters in lieu of individual Cal-Am Water Meters at a new four-story, 40-unit senior independent living apartment building at 200 Glenwood Circle, Monterey. Sub-metering of Multi-Family Dwellings is allowed by Rule 23-A-1-i-(4) (Exhibit 11-A) when the installation of separate Water Meters is not feasible (i.e., Cease and Desist Order moratorium on new Connections) and the User is utilizing Water Credits on a Site that has a Connection. As a condition of approval, within 90 days of the conclusion of the moratorium, the owner of a sub-metered Site must have Water Meters installed for each sub-metered User by the Water Distribution System Operator. The project Site is currently supplied by two Master Meters and is utilizing Water Credit from various retrofits to offset the new project’s water demand. The Park Lane’s variance application is shown at Exhibit 11-B.

District Rule 23-A-1-i-(5) allows the Board to consider variances to the rule when the installation of separate Water Measuring Devices is not feasible due to Special Circumstances. “Special Circumstances” in this case are defined as “unusual, uncommon, peculiar, unique or rare situations that require Board consideration.” In considering a variance, the Board shall determine if another type of Water Measuring Device is appropriate (e.g., in-line sub-meters) and shall make reporting of consumption a condition of approval.

The Park Lane’s Special Circumstances are related to hot water in the new apartment project. The applicant is requesting a variance to allow permanent sub-metering to accommodate a central water heating plant. The plant will operate with high efficiency condensing water heaters and will be set up to allow future thermal solar water heating. By utilizing a central plant for hot water and heating, space is not needed in the individual units for water heaters, and gas can be kept out of the units to increase the safety of the senior residents. The latter is a particular concern for elderly persons who may not be able to smell a gas leak.

The new apartment building will utilize electronic sub-meters that are readable by the tenant to measure hot and cold water use in each unit. The sub-meters will be monitored by a central computer. Consumption information will be made available to MPWMD as needed. The Park Lane pays the utility bills for the residents and is motivated to encourage water use efficiency.

Separate metering is a best management practice of the California Water Efficiency Partnership (CalWEP). Additionally, state legislation passed in 2016 (California Water Code, Div. 1, Ch.8, Article 5) requires Multi-Family Residential Dwelling Units to either have a utility meter or a sub-meter for each individual Residential unit. Individual Water Meters encourage efficient water use by making each water User accountable for their consumption. Individual Water Meters also facilitate compliance with water use reductions during rationing periods.

Four similar variance requests have been granted for in-line meters at affordable housing projects: (1) MidPen Housing Corporation received a variance to allow for the use of in-line meters for 19 low-income senior housing units in Monterey; (2) the use of a single meter for each building was authorized for the Pacific Meadows senior housing complex in Carmel Valley; (3) the City of Monterey received a variance from the separate Water Meter requirement for the Osio Plaza low to moderate-income housing units; and (4) 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. Although the current application is for market rate housing, it is possible that by adding 40 units to the local housing stock, affordable units in the community may become available when the current tenants move into the new apartments.

Public notice of this hearing was posted on the project Site.

RECOMMENDATION: The proposed action to sub-meter the new apartments at The Park Lane supports the Districts goal to make water Users accountable for their water use. Staff recommends the Board approve the variance and adopt the Findings of Approval attached as Exhibit 11-C, with the following conditions: (1) In-line meters recording hot and cold water consumption for each Dwelling Unit must be installed and maintained. (2) The applicant/owner shall provide the District with sub-meter consumption data upon request. (3) Outdoor water use associated with new landscaping and common areas in the new building must be separately sub-metered. (4) Approval of this request is limited to one year. Within the year, the applicant must obtain water and building permits.

EXHIBITS

11-A Rule 23-A-1-i-(4)

11-B Application for Variance

11-C Draft Findings of Approval

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