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Council debates how to bill utilities for 'mother‑in‑law' units and basement Airbnbs; staff to draft formal policy
Summary
City leaders discussed whether landlords should pay a separate monthly culinary water and sewer fee for accessory rental units (basements, guest apartments) or whether overage charges suffice; council asked staff to produce a draft policy and return in October.
Castle Dale council members and staff spent part of the meeting discussing policy for accessory rental units often called "mother‑in‑law" apartments, basement rentals and short‑term rentals such as Airbnbs. The discussion centered on how to bill water and sewer services for those units — by requiring a separate connection/fee or retaining a single meter and charging overage fees when usage exceeds an allotted threshold.
Staff told the council that the state has directed cities to regulate these residences and that other local practices vary: some jurisdictions charge a connection fee for each unit; others manage use via overage charges. Council members pressed staff on practical measurement issues (how usage would be measured without a second meter), the relationship between requiring a second meter and the water‑share requirement, and whether short‑term rentals (STRs) should be treated differently from long‑term rental apartments.
A council member noted that the city charges a connection fee for cabins or motel‑style groupings in certain circumstances and that park operators report active lots monthly. Staff said the city does not currently require water shares for every unit in a multi‑unit setting but has administrative reporting requirements for trailer parks and similar developments.
On Airbnbs the council identified at least one existing basement unit operating as an STR and requested that staff include STRs in the draft language only if they are basement units or similar accessory dwellings. No vote was taken; council asked staff to return with a clearer proposal and ordinance language for review and public hearing.
Why it matters: The council’s choice will affect landlords, tenants and short‑term rental operators and has implications for fairness in billing, city revenue and enforcement workload. The council emphasized the need for clarity in any new policy so property owners understand connection, metering and fee obligations.
Next steps: Staff will prepare draft ordinance language clarifying the handling of accessory rental units and short‑term rentals where they function as basement or accessory dwellings, including options for required connections, meter installation and overage charge mechanics. The draft will be circulated to council members before the October meeting.
Ending: The council left the item at discussion, asking staff to return with recommended language and to identify where public notice or hearings will be required.
