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Earlier editions: 2026-09

Chapter 19 — Sewers and Sewage Disposal›Article VIII — DAILY SEWER ALLOCATION AND OVERUSE PENALTIES

Gilroy Municipal Code § 19.115 Daily sewer use allocation

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

Cite as: Gilroy Municipal Code § 19.115 · Text as of 2026-10-04

(a) In accordance with the terms of this chapter, the city shall calculate a daily sewer use allocation for: (1) existing parcels of commercial and industrial real property that have a connection to municipal sewer service but do not have an existing sewer use allocation; (2) existing parcels of commercial and industrial property that have existing sewer use allocations, which allocations were not imposed on such parcels as part of, or in conjunction with, agreements related to development or improvement of the parcels; and (3) parcels of real property for which the city receives applications for new commercial and/or industrial development or uses as well as increased sewer capacity allocation.

(b) A daily sewer use allocation for any parcel of real property shall be purchased from city at such cost and on such terms and conditions as may be established from time to time by city council resolution.

(c) Upon receipt of an application for a daily sewer use allocation for new development on a parcel of real property, or for increased sewer use for an existing development on such a parcel, the city may require an applicant for purchase of a daily sewer use allocation to provide information necessary to confirm, to the city’s satisfaction, that the allocation corresponds to the amount of sewer that occupants of the parcel are reasonably expected to use. The city shall have the right, in its discretion, to determine whether the applicant’s requested allocation is sufficient, insufficient or excessive.

(d) Upon receipt of an application for a commercial or industrial use on a parcel of real property that already has a connection to the municipal sewer service, but no current daily sewer use allocation, the city shall issue a daily sewer use allocation for such parcel as further set forth in section 19.115-1. For any parcel with an existing connection to municipal sewer service, existing sewer use shall be allocated at no cost. If the parcel thereafter requires an additional sewer use allocation, such allocation shall be purchased at such cost and on such terms and conditions as may be established from time to time by city council resolution.

(e) The city’s daily sewer use allocation shall be considered an entitlement that shall not be alienable from the parcel of real property containing such allocation. Upon subdivision of such parcel, the sewer use allocation shall be divided proportionately among the resulting parcels of real property based on the square footage of the land contained in each resulting parcel.

(f) Upon determination of an appropriate daily sewer use allocation for all parcels of real property for which a new or increased allocation is sought, the city and the parcel owner shall enter into a sewer capacity allocation agreement in a form determined by the city, in its discretion, which agreement shall entitle the parcel owner to the daily sewer use allocation specified therein. The city may, at its discretion, record such agreement.

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

§ 19.115-1. Calculation of daily sewer use allocation.

The daily sewer use allocation of any parcel of real property shall be based on the parcel’s peak daily general use.

For purposes of this chapter, “daily general use” shall be defined as the parcel’s average daily consumption of water excluding water used for irrigation; and “peak daily general use” shall be defined as the parcel’s highest average daily consumption of water, excluding water used for irrigation, in the four (4) consecutive billing periods commencing with the November billing period within the preceding thirty-six (36) months. For purposes of this section, a billing period shall be ascribed to November if any of the meters on that parcel measures at least fifty percent (50%) of the completed calendar days in November. Peak daily general use shall not be calculated based on any billing period during which the parcel experienced water use in excess of fifty percent (50%) greater than the average water use billed during the same month for the preceding three (3) years because of a water leak or other abnormal occurrence that is not likely to reoccur regularly. If water use for both irrigation and general uses are measured by the same meter, the city shall make a reasonable estimate of the amount of such water that is likely to have been used for general use during that period.

The city may reduce the peak daily sewer use allocation if it determines, based on evidence regarding the proposed or actual use of the parcel, that sewer use on the parcel will not be substantially equivalent to water use for nonirrigation purposes on the parcel. In such event, the city may set the peak daily sewer use allocation to reflect the amount of sewer capacity that city reasonably determines will be used by the parcel.

(Ord. No. 2009-02, § I, 3-2-2009)

Exceptions & meaning →

§ 19.115-2. Appeal of daily sewer use allocation.

If a parcel owner disagrees with the city’s proposed daily sewer use allocation or any action taken by the city increasing or decreasing such allocation, such parcel owner shall have the right to appeal such action(s). Any such appeal shall be made no later than thirty (30) days after the city’s mailing to the parcel owner of notice thereof pursuant to procedures adopted by the city from time to time. The appeal shall be in writing and shall provide the city with written evidence sufficient to prove to the reasonable satisfaction of the city engineer, or his/her designee, that the proposed daily sewer use allocation does not reasonably reflect the parcel’s expected sewer use.

(Ord. No. 2009-02, § I, 3-2-2009)

Exceptions & meaning →

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