“SUB-METERING”

A SOLUTION TO INCREASING WATER COST AND WATER CONSERVATION

By Tom Rogers, President of California Sub-Meters

If an association does not have individual water meters for each resident, the water and sewer costs are paid equally in their monthly HOA dues. Whether a home has one person living there or a family of five, washes four loads of laundry a week or 15 loads, takes five minute showers or 30 minute showers, their share of the water expense is the same. With sewer and water rates increasing every year, water is becoming a very concerning issue to the Boards of Directors and Property Managers.

Glen Eden Garden Homes Association is an example of how one association took some action. This 20-year-old condominium complex of 620 units is located in Hayward. This large community has a very active Board of Directors. They decided to focus on finding a solution to the financial drain their high water usage and increasing water costs was causing the association. The Board made the decision to install sub-meters and to bill each resident for their water usage.

First off - - What are sub-meters? Why install sub-meters?

Sub-meters are the same type of meters the city uses to measure water usage. They are installed at the main water line going into each individual unit. The residents are then billed at the same rate that the city is charging the association. Sub-metering offers an equitable distribution of cost and piece of mind knowing that you are paying only for the water you use. Sub-metering has become a popular trend for new construction, as it is the only sensible solution for water management.

In the past, condominium projects were built with one public master meter that would service many residents. The water and sewer were included as common area cost to the association and was included in the monthly HOA dues. Ten to twenty years ago when water and sewer costs were a fraction of what they are today, this concept worked well. Today it is time to look for a new solution. Sub-metering has proven to be a cost-effective way to solve this major expense and problem.

When homeowners realize that they will be accountable for their water usage, they are motivated to discover and repair water-wasting leaks. They fix leaky toilets and replace faulty fixtures. Sub-metering promotes water conservation on their part, and thus is a saving and value for everyone concerned.

Since sub-metering also eliminates the domestic water costs from the association’s budget, it is a very effective way to keep homeowners dues low. The homeowner readily recognizes the increased value in their properties, as the individual condo owner will pay only for the water they use.

How does sub-metering work?

  1. The requirements to sub-meter water are that each unit must have an individual hot water heater and individual water shut-off valve.
  1. Contact California Sub-Meters for a free estimate to have sub-meters installed. The sub-metering company will require a plot map of the project and a copy of a recent water and sewer bill.
  1. If the Board is in agreement and comfortable with the estimate, then schedule a meeting with the sub-metering company and the Board. The Board needs to have their questions answered before presenting the concept of sub-metering to the residents.
  1. These are some of the frequently asked questions about sub-metering. How does the billing process work? Who now pays the city water bill? What type of meters is installed? What is the cost of the service fee to read, bill, and collect for water? Who pays the service fee? Where will the meters be installed and how will they look? Can water be shut off for non-payment? How are meters typically paid for? Who owns and services meters? Do our HOA dues go down after meters are installed? It is important that the Board is well informed, organized, and in agreement with the various sub-metering issues prior to addressing the residents.
  1. The board should review the association CC&R’s to determine if individual water usage can be billed to each resident. If you are in doubt, consult your attorney. Many Boards feel they have a financial obligation to sub-meter water, as it saves money and promotes water conservation.
  1. If you vote to proceed, establish a plan of action. A projected date and a goal of when you would like to install the meters and to start billing the residents for water and sewer. Schedule another meeting with the sub-metering company and plumbers to review and approve the installation process.
  1. Send a newsletter to the residents informing them of your decision to sub-meter. You will note that water consumption starts going down immediately in anticipation of having to start paying a water and sewer bill. Sub-metering generates big savings and immediately rewards residents for water conservation.
  1. After the meters are installed, they are all read on the same day. The homeowner receives their meter reading with a general information letter. This will inform them how the sub-metering company reads the meters, bills the residents, and collects the money. The sub-metering company adds a service charge to the bill. The bills are mailed to the owners and not the renters since the owner is ultimately responsible. The money collected along with accounting worksheets are sent to the property manager who in turn pays the water and sewer bill from the city just as they have done in the past.
  1. Water meters seldom fail and the sub-metering company normally does not charge for meter repairs if they sold the meters. There is an annual compliance charge from California State Agriculture Weights and Measure of two dollars per meter per year plus a $60 per year fee for the complex.

Water rates went up dramatically last year, and Glen Eden Garden Community did not have to raise the HOA dues because of the increased utility costs. The Board members of Glen Eden Garden Community Association couldn’t be more pleased with their decision to install water meters. They recaptured $189,946 in water expenses the first year after the meters were installed!

The residents are also very happy. They realize sub-metering has increased their property value. Their HOA dues will be kept lower without adding the cost of rising water and sewer. They have the peace of mind knowing that they are only paying for the water they use, and residents are no longer resentful about neighbors washing cars, excessive laundry, or excessive irrigation usage.

Tom Rogers of California Sub-Meters believes that when homeowners do not receive water bills, water-wasting leaks go undiscovered. For example a leaky toilet can waste 50,000 gallons of water in one month! But once residents are financially accountable for their own water bill, they become motivated to conserve water and to fix their water-wasting leaks. He states that when a condominium complex installs sub-meters, water costs go down anywhere between 25% to 30% that first year.

California Sub-Meters reads the meters and collects the money thus allowing property management to spend their valuable time managing the property. They service homeowners associations throughout the state of California managing their water and sewer costs.

Submitted by Tom Rogers, president of California Sub-Meters

(see photo)