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Earlier editions: 2026-09

Title 15 — UTILITY SERVICES›Chapter 15.36 — SEWER SERVICES AND FEES 1

Chico Municipal Code Art. I General Provisions

Chico Municipal Code · 2026-10 edition · updated 2026-10-04 · Chico

Cite as: Chico Municipal Code Article I · Text as of 2026-10-04

15.36.003 Purpose.

This chapter is enacted pursuant to the municipal affairs provisions of Section 201 of the City Charter for the purpose of establishing the terms and conditions under which sewer service will be provided to premises located within the city and that part of the unincorporated portion of the Chico urban area included within the city's sewer service area as designated in the manner hereinafter provided for herein including, but not limited to, establishing the amount of the sewer service fees, water pollution control plant capacity fees, trunkline capacity fees, lift station capacity fees, sewer main installation fees, and sewer lateral installation fees to be assessed and levied upon an owner of premises utilizing such sewer service in order to fund the cost of constructing, installing, operating, and maintaining the facilities necessary to provide the services.

(Ord. 1865 §1, Ord. 2049 §1, Ord. 2092 §2)

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15.36.006 City council findings.

The city council makes the following findings required by Section 66001 of the California Government Code in regard to the water pollution control plant capacity fees, trunkline capacity fees, lift station capacity fees, sewer main installation fees, and sewer lateral installation fees assessed and levied pursuant to the provisions of this chapter:

A. The city council finds that the only environmentally sound method to dispose of domestic and industrial wastewaters from residential and nonresidential development occurring in a community the size of the Chico community is through community sewer facilities which, like the city's sewer system, are capable of collecting such wastewaters and treating the wastewaters to at least secondary treatment standards. The city council also finds that there is a particular need for such community sewer facilities to serve residential and nonresidential development occurring in the Chico community in that by reason of the high nitrate levels in the groundwaters underlying the Chico community, caused in large part by the individual septic tank and leach field waste disposal systems which now serve a significant segment of the Chico community, the Regional Water Quality Control Board for the Central Valley Region has adopted an order which requires existing development in the Chico community to discontinue the use of such septic tank and leach field waste disposal systems no later than July 1, 1996, and which prohibits the use of such septic tank and leach field waste disposal systems for new development occurring within the Chico community on and after the date of such order, save and except for septic tank and leach field waste disposal systems serving development whose density does not exceed the equivalent of one residential dwelling unit per acre. By reason of the foregoing, the city council finds that new development would be unable to proceed in the city or other parts of the Chico community without the community sewer facilities to be funded with the water pollution control plant capacity fees, trunkline capacity fees, lift station capacity fees, sewer main installation fees, and sewer lateral installation fees assessed and levied pursuant to the provisions of this chapter. Accordingly, the city council finds that there is a reasonable relationship between the need for the public facilities to be funded with such fees and the residential and nonresidential development upon which such fees are imposed.

B. The city council finds that all revenues from the water pollution control plant capacity fees, trunkline capacity fees, lift station capacity fees, sewer main installation fees, and sewer lateral installation fees assessed and levied on residential and nonresidential development pursuant to the provisions of this chapter must be used for the purpose of providing additional capacity in the city water pollution control plant, sewer trunklines, sewer lift stations, sewer main facilities, and sewer lateral facilities sufficient in amount to replace the sewer facilities or capacity in such sewer facilities which is utilized by such development, and/or to pay any debt or other obligation incurred by the city in previously providing the sewer facilities or capacity in such sewer facilities which is utilized by such development. By reason of the foregoing, the city council finds that the water pollution control plant capacity fees, trunkline capacity fees, lift station capacity fees, sewer main installation fees, and sewer lateral installation fees assessed and levied on residential and nonresidential development pursuant to the provisions of this chapter provide an ongoing means for immediately making capacity in the city's sewer system available to new development as such development occurs. Accordingly, the city council determines that there is a reasonable relationship between the use of the water pollution control plant capacity fees, trunkline capacity fees, lift station capacity fees, sewer main installation fees, and sewer lateral installation fees provided for by this chapter and the residential and nonresidential development upon which such fees are imposed.

C. It is the intent of the city council that all water pollution control plant capacity fees, trunkline capacity fees, lift station capacity fees, sewer main installation fees, and sewer lateral installation fees assessed and levied on residential and nonresidential development pursuant to the provisions of this chapter be based on the replacement cost of capacity in the city water pollution control plant, sewer trunklines, sewer lift stations, sewer main facilities, and sewer lateral facilities which is utilized by such development. Towards this end, city council decisions to adopt the water pollution control plant capacity fees, trunkline capacity fees, lift station capacity fees, sewer main installation fees and sewer lateral installation fees provided for by this chapter, as well as city council decisions to increase or decrease any such fees, have and will continue to be based on a “connection fee nexus report” prepared by or under the direction of the director. Such reports set forth the various factors and calculations considered and made in establishing such fees. In addition such reports demonstrate that the particular fee or fees addressed by the report are, in fact, less than or equal to the replacement cost of the sewer system facilities utilized by the residential or nonresidential development for which the fee is assessed. Following a city council decision to adopt, increase or decrease any such fee, copies of the report are maintained on file in the office of the city clerk at all times the fee remains in effect. Accordingly, the city council has provided the means for establishing and documenting the reasonable relationship between the amount of the water pollution control plant capacity fees, trunkline capacity fees, lift station capacity fees, sewer main installation fees, and sewer lateral installation fees provided for by this chapter and the cost of the water pollution control plant facilities, sewer trunkline facilities, sewer lift station facilities, sewer main facilities, and sewer lateral facilities attributable to the residential or nonresidential development upon which the fees are assessed.

(Ord. 1865 §2, Ord. 1980 §1, Ord. 2049 §2, Ord. 2092 §3, Ord. 2364 §249)

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15.36.008 Director.

The term “director,”as used in this chapter, means the director of the public works department.

(Ord. 2364 §250, Ord. 2439 §107)

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15.36.010 Definitions.

Unless the contrary is stated or clearly appears from the context, the definitions set forth in this section shall govern the construction of the words and phrases used in this chapter.

A. Domestic Wastes. Wastes associated with human habitation or of human or animal origin.

B. Dwelling Unit. Any building or mobile home and any part of a building or mobile home which is equipped with plumbing fixtures and which is suitable for residential occupancy by any number of persons living together as a single family.

C. Industrial Use. The use of nonresidential premises for the purpose of manufacturing, processing, fabricating, refining, repairing, packaging and/or storing commercial products.

D. Industrial Wastes. Wastes associated with any producing, manufacturing or processing operation of any nature whatsoever, including wastes associated with any producing, manufacturing or processing operation with domestic wastes.

E. Lift Station. The pump, pump housing, force main, and all other facilities necessary to pump sewerage from one elevation to a higher elevation, as well as any real property required for same.

F. Nonresidential Premises. All premises other than residential premises.

G. Occupant. The owner of premises and any person residing on premises or using premises for any purpose.

H. Owner. The person or persons holding the title to premises as shown by the official records of the county of Butte.

I. Person. Any natural person, firm, company, corporation, partnership, association, or any public entity other than the city.

J. Premises. Any lot, place, or parcel of land, or any building, structure, or mobile home, or any part of a building, structure, or mobile home on any lot, place or parcel of land.

K. Residential Premises. All premises used exclusively for residential purposes except for boarding houses, dormitories, motels, hotels, hospitals, convalescent homes, or other premises used primarily as a temporary place of residence.

L. Sewerage Collection System. That part of the sewer system used to collect wastewaters and convey the same to the headworks of the water pollution control plant.

M. Sewer Lateral. That part of the sewer piping between a building waste disposal system and a sewer main or trunkline.

N. Sewer Main. Any sewer constructed in a street, a sewer easement, a public utility easement, or a public service easement which is less than fifteen inches in diameter and designed to accommodate a system of sewer laterals.

O. Sewer System. The municipal sanitary system of the city, including but not limited to all facilities for the collection, treatment and disposal of wastewater.

P. Trunkline. Any sewer constructed in a street, a sewer easement, a public utility easement, or a public service easement which has a diameter equal to or greater than fifteen inches.

Q. Wastewater. Waterborne wastes.

R. Water Pollution Control Plant. That part of the sewer system used in the treatment and/or reclamation of wastewater discharged to the sewer system, including all land and all buildings or portions of buildings used in the operation and maintenance of the treatment works.

(Ord. 1735 §1 (part), Ord. 1858 §§1-3, Ord. 1971 §1, Ord. 2092 §4)

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15.36.015 Adoption of sewer fee schedule.

Notwithstanding any provisions of this chapter to the contrary, the city council may, by resolution, adopt a sewer fee schedule which incorporates the sewer service rates, the water pollution control plant capacity rates, the trunkline capacity rates, the lift station capacity rates, the sewer main installation rates, and the sewer lateral installation rates established herein, together with rate equivalent for any subclass of residential or nonresidential premises for which a rate has been established herein and which sets forth any administrative policies and procedures which are necessary to fully implement the provisions of this chapter, provided that such fee schedule does not change the basic intent of the provisions of this chapter.

(Ord. 1735 §1 (part), Ord. 2049 §3, Ord. 2092 §5)

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15.36.020 Disposition of sewer fee revenues.

All revenues received by the city from fees assessed and levied pursuant to this chapter shall be deposited in revenue accounts and used as follows:

A. Sewer Service Fees. All revenues received from sewer service fees shall be deposited in a sewer service fees account and used only for the purpose of operating, maintaining, replacing, or improving sewer system facilities, or paying the principal and interest due on any debts or other obligations incurred by the city for the purpose of operating, maintaining, replacing, or improving sewer system facilities.

B. Water Pollution Control Plant Capacity Fees. All revenues received from water pollution control plant capacity fees shall be deposited in a water pollution control plant capacity fees account and used only for the purpose of providing additional capacity in the water pollution control plant or paying any debt or other obligation incurred by the city for the purpose of providing additional capacity in the water pollution control plant.

C. Trunkline Capacity Fees and Lift Station Capacity Fees. All revenues received from trunkline capacity fees and lift station capacity fees shall be deposited in a trunkline capacity fees and lift station capacity fees account and used only for the purpose of providing additional trunklines or lift stations, providing additional capacity in existing trunklines or lift stations, and/or paying the principal and interest on any debt or other obligation incurred by the city for the purpose of providing additional trunklines or lift stations or providing additional capacity in existing trunklines or lift stations, including, but not limited to, any obligation under a trunkline or lift station reimbursement agreement.

D. Sewer Main Installation Fees and Sewer Lateral Installation Fees. All revenues received from sewer main installation fees and sewer lateral installation fees shall be deposited in a sewer main and sewer lateral installation fees account and used only for the purpose of providing additional sewer mains and/or sewer laterals or paying the principal and interest on any debt or other obligation incurred by the city for the purpose of providing additional sewer mains and/or sewer laterals, including, but not limited to, any obligation under a sewer main reimbursement agreement.

(Ord. 1735 §1 (part), Ord. 2049 §4, Ord. 2092 §6)

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15.36.022 Disposition of unappropriated sewer fee revenues.

A. Report of City Manager. Commencing with the 1991/1992 fiscal year and in each fiscal year thereafter, the city manager, on or before the date the city council considers its budget for the ensuing fiscal year, shall provide the city council with a report which sets forth the total amount of all water pollution control plant capacity fees, trunkline capacity fees, lift station capacity fees, sewer main installation fees, and sewer lateral installation fees then on deposit in the water pollution control plant capacity fees account, the trunkline capacity and lift station capacity fees account, and the sewer main and sewer lateral installation fees account.

B. Action by the City Council. Commencing with the 1991/1992 fiscal year and in each fiscal year thereafter, the city council, following receipt of the city manager's report, shall take one of the following actions with respect to any unappropriated water pollution control plant capacity fee revenues, trunkline capacity fee revenues, lift station capacity fee revenues, sewer main installation fee revenues, and/or sewer lateral installation fee revenues then on deposit in the water pollution control plant capacity fees account, trunkline and lift station capacity fees account, or sewer main and sewer lateral installation fees account which were received and deposited in such accounts four or more years prior to the date of such report:

  1. Appropriate all or any part of such unappropriated fee revenues for the acquisition, construction and/or installation of sewer system facilities in the manner hereinbefore provided by this chapter;

  2. Make a finding with respect to all or any part of such fee revenues which identifies the purpose to which the revenues are to be put and which demonstrates a reasonable relationship between the fees from which the revenues were derived and the purposes for which they were charged; or

  3. Provide for the refund of all or any part of such unappropriated fee revenues, together with any interest accrued thereon, to the current owner of any property for which fees were paid; provided, however, that if the administrative costs of refunding such fee revenues exceed the amount to be refunded, the city council, after considering the matter at a public hearing, notice of which is given in the manner provided for by Section 66001(e) of the California Government Code, may appropriate such fee revenues for any other facility or improvement for which development fees are charged or otherwise imposed pursuant to this code and which the council determines will benefit the properties for which the sewer fees were paid.

(Ord. 1865 §3, Ord. 2049 §5, Ord. 2092 §7)

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15.36.025 Premises entitled to receive city sewer service.

The following premises located within the Chico Sphere of Influence, as designated by the Butte County Local Agency Formation Commission, shall be entitled to receive city sewer service upon issuance of a connection permit, payment of all fees, and subject to all other conditions and requirements hereinafter provided for by this chapter:

A. All premises located in that part of the Chico Sphere of Influence within the incorporated territory of the City.

B. The following premises in that part of the Chico Sphere of Influence within the unincorporated territory of the county of Butte:

  1. Nonresidential premises developed or being developed with buildings or structures devoted to an industrial use;

  2. Residential or nonresidential premises owned by a nonprofit corporation and developed or being developed with buildings or structures utilized or to be utilized by such nonprofit corporation in the provision of social services benefitting persons residing within the incorporated territory of the City of Chico.

  3. Residential or nonresidential premises served by a failing septic tank; and

  4. Residential or nonresidential premises subject to a sewer service and annexation agreement executed prior to December 17, 1993, in which the city undertook to provide sewer service to such premises, residential or nonresidential premises which are within a county subdivision for which the city issued a commitment to provide sewer service prior to December 17, 1993, and residential or nonresidential premises authorized to connect to sewer services pursuant to a connection permit issued prior to September 14, 1995.

(Ord. 1735 §1 (part), Ord. 1971 §2, Ord. 2068 §1)

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15.36.030 Agreements with other agencies owning sewerage collection systems within the…

The city council may, by written agreement, authorize another public agency owning a sewerage collection system within the unincorporated territory of the county of Butte to connect such sewerage collection system to the water pollution control plant owned and operated by the city where:

A. The area served by the sewerage collection system is located entirely within the Chico Sphere of Influence as approved by the Butte County Local Agency Formation Commission; and

B. The agreement with the public agency owning the sewerage collection system includes the following provisions:

  1. A provision which requires the sewerage collection system to be connected to the headworks of the water pollution control plant at the sole cost and expense of the public agency operating the sewerage collection system and in accordance with plans and specifications approved by the director,

  2. A provision which sets forth the means for funding any expansion of the water pollution control plant facilities required to treat all of the wastewaters to be discharged to the water pollution control plant through the sewerage collection system and, where necessary, coordinates the commencement of any such wastewater discharge with the completion of such expanded facilities,

  3. A provision which requires all connections to the sewerage collection system, all sewer laterals and sewer main extensions installed incident to a connection to the sewerage collection system, and all discharges of wastewaters to the sewerage collection system to comply with the requirements of this chapter,

  4. A provision which authorizes the city to maintain the sewerage collection system and monitor all wastewaters discharged thereto.

(Ord. 1735 §1 (part), Ord. 1971 §3, Ord. 2364 §251)

15.36.032 Agreements with certain public agencies seeking to connect premises within…

The city council shall, by written agreement, authorize the Regents of the University of California, the Trustees of the California State University System, the Butte County Superintendent of Schools, any school district, and any other state agency to connect premises owned or used by them and located within the incorporated territory of the city or located in that portion of the unincorporated territory of the county of Butte within the Chico Sphere of Influence to the sewer system in consideration of the payment of a negotiated sewer system capacity fee, which negotiated sewer system capacity fee shall be in lieu of the payment of any water pollution control plant capacity fee, trunkline capacity fee, lift station capacity fee, sewer main installation fee, or sewer lateral installation fee hereinafter provided for by this chapter. Such fee shall be negotiated with such public agency in a manner provided for in Chapter 13, Part 1, Division 2, Title 5 of the California Government Code, commencing with Section 54999, as amended, shall be based on the same objective criteria and methodology established by this chapter for determining the water pollution control plant capacity fee, trunkline capacity fee, lift station capacity fee, sewer main installation fee, and sewer lateral installation fee assessed and levied upon other owners of premises connecting to the sewer system, and shall be in an amount which does not exceed the public agency's proportionate share of the cost of the sewer system facilities of benefit to the premises being served by such facilities. This section, however, shall not relieve a public agency connecting premises to the sewer system from complying with any other provisions of this chapter relating to premises connected or being connected to the sewer system save and except for those provisions relating to the imposition of a water pollution control plant capacity fee, trunkline capacity fee, lift station capacity fee, sewer main installation fee, and/or sewer lateral installation fee.

(Ord. 1865 §4, Ord. 1971 §4, Ord. 2049 §6, Ord. 2092 §8, Ord. 2300)

15.36.035 Appeals.

Any person aggrieved by a determination of the director or the finance director made pursuant to the provisions of this chapter shall be entitled to appeal such determination to the city council pursuant to the rules of procedure adopted therefor. Pending a decision upon an appeal relative to the amount of any fee assessed and levied pursuant to the provisions of this chapter, the person making such appeal shall pay such fee. If, after the appeal is heard, the city council determines that the fee was not properly assessed or levied or that the fee exceeds the amount of the fee which should have been assessed and levied pursuant to the provisions of this chapter, the city council shall direct that such fee or excess fees be refunded.

(Ord. 1735 §1 (part), Ord. 2004 §19, Ord. 2364 §252)

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15.36.037 Temporary deferral of development impact fees.

Notwithstanding any other provisions of this code, the water pollution control plant capacity fees (Article III), trunkline capacity fees (Article IV), and lift station capacity fees (Article V) imposed on residential and nonresidential projects pursuant to this chapter may be deferred subject to the provisions set forth in section 3.85.135 of this code without incurring interest.

(Ord. 2379)

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