Templeton CSD softens separate-meter rule, directs staff to allow master meters for qualifying affordable multifamily and ADU projects

The Templeton Community Services District board on June 16 directed staff to interpret its separate-service-connection rules more flexibly and to draft a code amendment that would allow master-metering for qualifying multifamily affordable housing and permit shared connections for accessory dwelling units (ADUs).

District engineer Laurie Team outlined the history and current code language that has required a separate meter for each dwelling unit for about 19 years. Staff said the district’s code does include limited discretion for master-meter scenarios, but that practice historically has required separate connections.

Developers and contractors told the board the requirement can be a major cost barrier. Marty Muhammad of Central Coast Project Planning said shared branch connections for ADUs are commonly allowed elsewhere in the county and can reduce hookup costs substantially. Daisy Miguel, associate director with People Self-Help Housing, told the board her Rolling Hills 3 project proposes 28 affordable units that would remain affordable for 55 years and that individual meters significantly increase development costs and tenant utility burdens; she said the project plans include shutoff valves for individual buildings and units.

Board members and staff discussed technical and enforcement issues: separate meters can make it easier for the district to isolate leaks and for owners to shut off individual units, while shared connections can create challenges for identifying service problems and for sewer backups arising on a shared lateral. Staff noted the district’s billing system can handle multiple units served by a single meter and that older duplexes and triplexes in the district already operate on shared meters.

After public comment and deliberation, the board voted to allow staff to apply a more relaxed interpretation of the meter rule for qualifying multifamily projects (noting state law exemptions for certain low-income housing), to permit shared connections for ADUs and to cease enforcement actions on recently constructed ADUs that are out of compliance. The board also directed staff to work with legal counsel to prepare an ordinance amendment to make the relaxed standard clear in the code and to formalize conditions (including shutdown/access provisions) for any master-meter approvals. Roll call reflected four aye votes with one member absent.

The board and staff emphasized that any ordinance change will include safeguards around billing, shutoffs and the conditions under which a property would later be required to provide independent service (for example, if a lot is split). Staff said it will confirm cost-neutrality for the district before finalizing code language and return with proposed ordinance text for future board consideration.