Gilroy Municipal Code Art. VIII Daily Sewer Allocation and Overuse Penalties

Sewer use shall be limited to the daily sewer use allocation. After establishment of a daily sewer use allocation for a particular parcel of real property, the city shall monitor sewer use of such property through water meter readings, unless another method of sewer use calculation is requested by the owner of the real property and approved by the city (in its discretion) in writing.

For purposes of this section, a parcel’s daily sewer use shall be computed by dividing the parcel’s daily general use by the number of days in that billing period.

(Ord. No. 86-17, § 1, 9-15-1986; Ord. No. 2009-02, § I, 3-2-2009)

(a) If the actual daily sewer use on a parcel of real property is greater than the daily sewer use allocation for that parcel in any given billing period (which, for purposes of this chapter, shall be referred to as the initial overuse period), the city shall provide the parcel owner a written notice of overuse in the billing period following the initial overuse period. The notice of overuse shall state (1) the occurrence of the sewer use in excess of the daily sewer use allocation and (2) the higher rates imposed pursuant to section 19.119 for such overuse. For purposes of this chapter, “overuse” shall refer to sewer use billed to a parcel which use is in excess of that parcel’s sewer use allocation.

(b) The city shall provide a parcel owner with a notice of overuse if the parcel’s daily sewer use exceeds its daily sewer use allocation three (3) times in any six (6) consecutive billing periods, which six (6) consecutive billing periods shall be referred to in this chapter as the overuse period. The notice of overuse shall inform the owner of a parcel of real property that the owner’s parcel has exceeded its capacity during the overuse period and that, if the parcel exceeds its sewer use allocation for any additional billing period during the probationary period following the overuse period, the overuse rates set forth in section 19.119 will be applied to the parcel. For purposes of this chapter, the “probationary period” shall be defined as the twelve (12) billing periods following the overuse period.

(c) All notices of overuse referred to in subsections (a) and (b) of this section shall inform the parcel owner of the owner’s right to enter into a new sewer use allocation agreement to increase amount of sewer allocated to the parcel if such additional capacity is available.

(d) If a parcel’s average daily sewer use over a period of thirty-six (36) consecutive billing periods exceeds its total sewer use allocation for that period, the city may require the parcel owner to enter into a new sewer use allocation agreement reflecting the parcel’s expected average daily sewer use, even if such parcel does not meet the criteria for imposition of overuse rates set forth in section 19.119. In such event, the city shall provide the owner with a notice of its overuse and a proposed sewer use allocation agreement reflecting the property’s expected average daily sewer use. Failure of the parcel owner to enter into such sewer use allocation agreement shall subject the parcel to the overuse rates set forth in section 19.119(f).

(Ord. No. 86-17, § 1, 9-15-1986; Ord. No. 2009-02, § I, 3-2-2009)

(a) The rate charged for the first billing period in which overuse occurs during the probationary period (as defined in section 19.118(b)) shall be ten (10) times the highest existing sewer use rate for that parcel. This shall be referred to in this chapter as the “10X overuse rate.”

(b) If the average daily sewer use is greater than the daily sewer use allocation in any billing period after the 10X overuse rate is first charged, then the rate charged for the sewer use overage shall be one hundred (100) times the highest existing sewer use rate. This shall be referred to in this chapter as the “100X overuse rate.” Except as set forth in subsection (g) of this section, the 100X overuse rate shall be effective for any additional billing periods in which the sewer used on the parcel exceeds its sewer use allocation.

(c) For purposes of subsections (a) and (b) of this section, the highest existing sewer use rate for parcels with a single meter shall be the rate charged to that meter; and for parcels with two (2) or more meters, the highest existing sewer use rate shall be the highest metered rate on that parcel, except as otherwise set forth in subsection (d) of this section.

(d) For purposes of subsections (a) and (b) of this section, for parcels billed at a flat rate, the highest existing sewer use rate shall be the highest rate charged for sewer in the city as set forth in the city’s most current comprehensive fee schedule.

(e) Except as set forth in subsection (g) of this section, if the average daily sewer use is greater than the daily sewer use allocation in any billing period after the 100X overuse rate is charged, the city may choose (in its discretion) either to continue to charge the 100X overuse rate for the sewer use overage or to terminate the sewer and/or water service to the parcel owner.

(f) If the owner, through no fault of the city, fails to enter into a new sewer use allocation agreement within sixty (60) days after receiving the notice described in section 19.118(d), the city will be permitted to impose the 100X overuse rate, commencing in the billing period following the expiration of such sixty (60) day notice.

(g) If, after the notice referred to in section 19.118(b) has been issued to the owner of a parcel of real property, sewer use on the parcel does not exceed the sewer use allocation for the probationary period, the city shall be required to give the parcel owner a new notice prior to charging the 10X rate for sewer use on the parcel. If, after imposition of the 10X rate or 100X rate on the parcel, sewer use on the parcel at any time thereafter ceases to exceed the sewer allocation for a period of no fewer than twelve (12) consecutive months, the city may not charge the 100X rate for the next incidence of sewer overuse, but rather shall be required to give the parcel owner new notices of overuse pursuant to section 19.118 prior to charging the 10X rate for sewer use on the parcel. Any renewal of the overuse rates will thereafter follow the sequence of escalating penalties set forth in subsections (a) through (e) of this section. This subsection shall not apply to parcels for which the city has required a new sewer use allocation contract pursuant to section 19.118(d).

(h) For purposes of this section, “sewer use rate” shall be defined as the highest base rate for sewer use charged to any meter on the parcel and the corresponding highest tiered rate for sewer use that can be charged to that meter.

(Ord. No. 86-17, § 1, 9-15-1986; Ord. No. 2009-02, § I, 3-2-2009)