Prescott council adopts ordinance requiring private submeters for accessory dwelling units, passes 5-1

The City of Prescott on Feb. 11 adopted Ordinance No. 2025‑1881 to require private submeters for accessory dwelling units (ADUs) and to add ADU-related definitions to the land development and utility codes; the measure passed the City Council 5–1.

City staff explained the ordinance updates the Land Development Code and the City utility code to require a private water meter (submeter) for ADUs and to add a definition for "accessory dwelling unit private water meter." Staff said the change is intended to improve water conservation, increase transparency for landlords and tenants, and make leak detection easier.

At the start of the discussion staff summarized constraints imposed by recent state law: Arizona statute prevents municipalities from prohibiting long-term leasing of ADUs, requiring additional parking for ADUs, or requiring street improvements related to ADU development. Council members said the state law limits some of the local regulatory tools they had considered, but submetering remains a local option. Staff and a council subcommittee said submeters can reduce water use by 15–20% when tenants receive metered bills and that submeters are relatively low cost to install.

Councilmember Roosin moved to add private submetering to Prescott City Code for ADUs; the motion was adopted after a second and after staff confirmed that the submeter requirement will apply to new ADUs and to ADUs that undergo modifications but will not be retroactively enforced on existing, unchanged ADUs.

Several council members spoke in favor of the change as consistent with the council’s water‑conservation goals. Staff clarified that submeters are private meters used to measure water consumption for the accessory unit, that the submeter does not typically generate a separate city water bill for the tenant (it provides usage transparency for the property owner/lessor), and that the city’s utility code already requires separate metering for multi‑family residences in other contexts. A council member asked about ADUs attached to single‑family residences; staff said attached ADUs may be submetered similarly to condominium situations and would be subject to the submeter requirement.

The ordinance passed by a 5–1 vote. Staff said there is no program to require retroactive installation of submeters for existing ADUs unless the property makes changes that trigger the requirement. The council directed staff to proceed with the code updates in the packet and to incorporate any further adjustments after the ongoing state legislative session clarifies ADU rules.

Votes at the meeting recorded the ordinance as approved; the council did not identify a legal challenge or fiscal emergency related to the ordinance during the session.