Ephrata Borough says I have to split utilities for 2 unit rental

[Matthew McMasters]

Hello BP forums!  I have wanted to convert my current single family residence into a rental property for quite a while now.  Before I owned the property it was actually a 2 unit rental but it was converted back into a single family home at some point before I bought it.  My plan was to put the kitchen back in upstairs and start renting it out and live in the bottom.  Almost all of the houses where I live (Church Ave, Ephrata, PA) are single family houses split into rental units.

I talked with the Ephrata borough and they told me that I would need to have separate water meters and electric for both units.  Initially I was planning on just keeping it all together but I could easily split the water and electric which I know would be the best in the long run.. Except that I was then told that I would have to have the water metered in a 'pit' outside of the house.  The current water meter is inside the house just after the main supply comes through the wall.  I haven't been able to get a hold of the woman who can fully explain this to me so I'm hoping someone on here can help me understand this.

The man at the borough office made it sound like I would have to dig up my sidewalk and put in a lot of money to make that happen... If this is the case then the feasibility of converting my house back into a rental might not look so good.  

If anyone has any idea of what it will take to convert a single family house into a rental in Ephrata borough please let me know.  I will greatly appreciate it.