Gilroy Municipal Code § 27.76 Daily water use allocation

(a) In accordance with the terms of this chapter, the city shall calculate a daily water use allocation for: (1) existing parcels of commercial and industrial real property that have a connection to municipal water service but do not have an existing water use allocation; (2) existing parcels of commercial and industrial property that have existing water 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 water capacity allocation.

(b) A daily water use allocation for any parcel of real property shall be purchased from the 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 water use allocation for new development on a parcel of real property, or for increased water use for an existing development on such a parcel, the city may require an applicant for purchase of a daily water use allocation to provide information necessary to confirm, to the city’s satisfaction, that the allocation corresponds to the amount of water 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, which parcel already has a connection to the municipal water service, but no current daily water use allocation, the city shall issue a daily water use allocation for such parcel as further set forth in section 27.76-1. For any parcel with such an existing connection to municipal water service, existing water use shall be allocated at no cost. If the parcel thereafter requires an additional water 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 water 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 water 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 water 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 water capacity allocation agreement in a form determined by the city, in its discretion, which agreement shall entitle the parcel owner to the daily water use allocation specified therein. The city may, at its discretion, record such agreement.

(Ord. No. 86-16, § 1, 9-15-1986; Ord. No. 2009-01, § I, 3-2-2009)

The daily water use allocation of any parcel of real property shall be determined by adding together the parcel’s peak daily general use, plus the parcel’s peak daily irrigation 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; “peak daily general use” shall be defined as the parcel’s highest average daily consumption of water, excluding water used for irrigation, in any given billing period within the preceding thirty-six (36) months; and “peak daily irrigation use” shall be defined as the parcel’s highest average daily consumption of water for irrigation purposes in any given billing period within the preceding thirty-six (36) months. Neither peak daily general use nor peak daily irrigation use shall 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.

The city may reduce the peak daily water use allocation if it determines, based on evidence regarding the proposed or actual use of the parcel, that water use on the parcel will be substantially less than that calculated pursuant to the preceding paragraph. In such event, the city may set the peak daily water use allocation to reflect the amount of water capacity that city reasonably determines will be used by the parcel.

(Ord. No. 2009-01, § I, 3-2-2009)

If a parcel owner disagrees with the city’s proposed daily water 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 water use allocation does not reasonably reflect the parcel’s expected water use.

(Ord. No. 2009-01, § I, 3-2-2009)