Thanks for the replies. These make total sense to me. To clarify, the "cost saved" is for replacing the (small) gas line we already had in ground before building the spa.
I'll definitely call my gas company to see if they can replace the meter with a bigger one. But can this gas line still be used? For example, with a higher gas pressure to that line? I may eventually replace that line when I get around to redo the pavers on top of it. But that may happen next year. Before then, can I add a new regulator for this line to increase the pressure?
PG&E will replace the meter for free (which is very unusual). You will not increase the pressure, which is not the issue. It is the amount of gas available to the unit. You heater wants 400BTU (400 cubic feet, 4 therms) per hour and your meter will not allow that through it.
As with most installers, yours never told you to get a larger meter. Usually that is because you immediately think the unit will use more gas, but not so, it will use what it needs, or try to get it (whistle) and sound like it has asthma. So does your meter. Get the larger meter and see what happens. If you need a larger gas line, you will have to get that, too, (or a smaller heater) but even at the distances you mention I've seen them work OK with your size pipe, its just not ideal. Try to not have anything else that uses gas on at the same time.
Heaters never "adapt" to the low flow, they just have performance issues that can lead to damage (sooted heat exchanger, poor heating, burned-out burners, noise, etc.).
The builder/installer can't get the meter for you as the owner of the utility account is the only one that can request the change. Lost a few installs because of that as I would not install a heater to a system with inadequate gas supply. Haven't seen it with your brand heater, but have seen the damage it can do to a normal atmospheric one. Have seen those heaters installed with flex gas line, hopefully yours isn't, that barely worked. Replaced that with the proper hard pipe and problems were gone, including the whistling.