09g_City_of_San_Luis_Obispo_Response_cc*

R3

Arroyo Grande, Grover Beach, Morro Bay, Pismo Beach, San Luis Obispo, Cambria CSD, Heritage Ranch CSD, Los Osos CSD, Nipomo CSD, San Miguel CSD, and Templeton CSD should consider revising water bills to show rate tiers, water usage for each tier and the charges for each tier. Recommended Response: This recommendation will be implemented in 2012. The City is in the process of replacing its existing utility billing system and anticipates the new system will be operational in early 2012. With the implementation of the new system, enhancements to the information displayed on the utility bills will occur. The new utility billing software will require Grand Jury Report on Water Conservation Rate Setting modifications to display the level of detail that is recommended by the Grand Jury. There is project funding currently identified specifically for custom reports, one of which meets the level of detail outlined by the Grand Jury.

R5

The cities and the county should consider adopting an ordinance that would require new apartment buildings to have meters that register indoor water used by individual units. To reduce costs, meters could be a type intended only for use by apartment building owners, instead of those supplied by water provider for water service hook-ups. Recommended Response: Although this recommendation will not be implemented, the City of San Luis Obispo has been strongly encouraging new apartment buildings to provide individual meters in the sidewalk area along street frontage for each unit. For smaller apartment complexes, this recommendation has been implemented on several projects. It should be noted that there is not a significant cost impact relative to the cost of the water meters in these cases. The City of San Luis Obispo charges water and sewer impact fees based on the number of apartment units in a new complex, not the number of water meters. The actual cost of the individual water meters are less than $100 but would require additional piping from the meter into each apartment. For large apartment complexes, requiring separate water meters along the street right-of-way in the sidewalk may prove much more difficult. Based on City policy, the City is responsible for the water system up to and including the water meter for each unit. For large complexes, the City requires one large meter along the street right-of-way to limit future responsibility for onsite water systems. The City will continue to encourage the installation of separate water meters for each individual apartment for new projects where reasonable. Individual "sub-meters" could be recommended onsite for the individual property owner's apportionment of the water bill. There is legislation (AB19) being proposed that would require all new multi-unit residential structures, or newly constructed multi-unit residential and commercial structures, to have individual water meters to each unit. Attachment 3 is a copy of the proposed legislation. The requirements outlined in the proposed legislation demonstrate the complexities associated with requiring sub-meters. Issues such as periodic testing of the meter accuracy, reading meters to coincide with the date that the City would read the master meter, and who would pay for the costs for reading the sub-meters and processing the bills are challenging and will require thorough discussion to ensure equity among all parties involved. Grand Jury Report on Water Conservation Rate Setting It is anticipated that AB 19 will likely be acted on in 2012. There will need to be much more discussion and modification to the requirements of the proposed legislation to build consensus among all parties affected by this legislation. Based on the discussions above, the City of San Luis Obispo will not be evaluating an option to amend the Municipal Code, at this time, to require individual meters for all new apartment units. FISCAL IMPACT There is no fiscal impact associated with this letter of response to the Grand Jury. ALTERNATIVE The Council may choose to modify the attached response letter to the Grand Jury and Presiding Judge.