Fountain council directs staff to draft ADU ordinance after state mandate; agrees on separate meters, 750‑sq‑ft cap

Fountain City planning staff briefed the City Council on April 22 on implementing a new state law that requires municipalities to allow accessory dwelling units, and council members gave staff direction to draft an ordinance that reflects several local limits and utility rules.

Christy Martinez, with the city of Fountain planning department, told the council the state measure “mandates that all municipalities allow accessory dwelling units or ADUs ... and that all needs to be in place by June thirtieth of 2025.” Martinez outlined where ADUs must be allowed, what design and permitting elements the statute prevents cities from imposing, and which elements remain subject to local regulation.

The council’s discussion focused on four practical policy areas: maximum ADU size, height for detached ADUs, utility service and metering, and how ADUs may be used as short‑term rentals. Council members repeatedly stressed public‑safety, utility capacity and neighborhood‑character concerns while asking staff for a draft ordinance that complies with the statute yet is as restrictive as the law allows.

Key decisions and directions

- Size limit: Councilors generally supported staff’s recommendation to cap ADU floor area so that units meet the statute’s minimums but remain subordinate to the primary house. Council member Deidra Duncan said, “I’d like to go with the recommendation from the staff and make it, 7 50 square feet.” Staff will draft language setting a 750‑square‑foot maximum (and a proposed rule that an ADU cannot exceed the principal dwelling where appropriate).

- Height: Staff recommended a 12‑foot maximum height for detached ADUs to keep them clearly subordinate to primary homes. Multiple council members signaled support for the staff recommendation as an initial limit.

- Utilities and metering: Council gave clear direction that city‑served ADUs must have separate water and electric meters. Council member Rick said, “I do not want, daisy chained water meters or electric meters.” Martinez said applicants must provide written confirmation from the water, sewer and electric service providers that adequate facilities are available before a building permit will be issued. City staff will pursue intergovernmental agreements (IGAs) with other local water providers that serve parts of Fountain to seek consistency across service areas, while recognizing the city cannot unilaterally change governance or rules for external districts.

- Short‑term rentals: Council deferred a final decision on whether ADUs may be used as short‑term rentals and asked staff to return with options and a recommended definition of “short‑term rental.” Martinez said the statute allows ADUs to be used as short‑term rentals where the local government permits it; council asked for that policy question and a draft definition to be provided in the ordinance package.

Public‑safety and utilities concerns

A Fire Department representative told the council their primary concern is fire spread and access if ADUs are built too close to the main structure, saying, “That that would probably be our largest concern is that we're not building these ADUs right up to the main structure and then thus closing the gap, for fire spread.” Council members also raised worries about on‑street parking demand and neighborhood impacts if ADU density increases without clear controls.

Next steps and timing

Martinez said staff will draft the ordinance incorporating the policy directions discussed and identify related code conflicts to repeal or amend. The ordinance is scheduled for first and second readings before the statutory deadline; Martinez said staff is exploring a possible short extension and has spoken with the bill’s author and DOLA staff but is awaiting written confirmation. Council directed staff to return with a draft ordinance that includes: the 750‑sq‑ft cap (staff recommendation), a 12‑foot detached ADU height limit (staff recommendation), separate‑meter requirements for city utilities, proposed IGA outreach to other water providers, and options on short‑term rental restrictions prior to the next council hearing.

Why it matters

The state law changes how Fountain can regulate single‑family lots: ADUs will become a permitted housing type in zones that allow single‑family detached homes, limiting some traditional local design and owner‑occupancy rules. Council members framed their choices as seeking a balance between complying with state law and protecting neighborhood safety, parking and infrastructure capacity.

What staff will return with

Martinez said the ordinance draft will include the required statutory elements, any recommended maximums or limits the city can lawfully impose, and specific utility‑metering language for Fountain’s service area; staff will also document conflicts in current code (for example, the tiny‑homes section that overlaps ADU rules) and recommend repeals or edits.