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W A T E R E N E R G Y I T F F r� E kd& P U B L I C U T I L I I I L S RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: APRIL 11, 2022 SUBJECT: RESOLUTION FOR ADOPTING A SERVICES PRIORITY POLICY FOR LOWER-INCOME DEVELOPMENTS IN ACCORDANCE WITH SENATE BILL 1087 ISSUE: Consider approval of a Resolution for adopting a services priority policy for lower-income developments in accordance with Senate Bill 1087. RECOMMENDATION: That the Board of Public Utilities recommend that the City Council adopt the proposed resolution for establishing a services priority policy for lower-income developments in accordance with Senate Bill 1087. BACKGROUND: Senate Bill 1087 (SB 1087) took effect on January 1, 2006. The law requires water and sewer providers to reserve water and sewer capacity for lower-income housing. Adopting the proposed resolution will ensure the City of Riverside (City) complies with this law. DISCUSSION: SB 1087 requires water and sewer services providers to adopt a policy granting priority for the provision of these services to proposed developments that include housing units for lower-income households. Such developments are defined as those that include at least one dwelling unit to be sold or rented to lower-income households, at an affordable cost, or at an affordable rent (Health and Safety Code sections 50052.5, 50053, and 50079.5). Additionally, the California Department of Housing and Community Development requires cities' Housing Elements include their adopted policy complying with SB 1087. Adopting the proposed resolution would also implement the City's 2025 General Housing Element Program HE -1 -12 -Affordable Housing Service Prioritization and Implementing Action HE -3.4, which requires the City adopt a policy prioritizing wastewater and water services for affordable housing in the event of service rationing (adopted October 5, 2021). The adoption of the proposed resolution to implement SB 1087 would apply only to the provision of service to new low-income developments and would not impact any prioritization of water or sewer service in the event of an emergency. The proposed policies and procedures would only