[HISTORY: Adopted by the City of Rochester 9-6-2022; amended in its entirety 3-7-2023. Subsequent amendments noted where applicable.]
The City of Rochester is authorized pursuant to RSA 38:27 and RSA 38:28 to assess a Water Development Connection Fee on new connections and development to help meet the additional water system demands created by the new development including capital construction and improvement of the City's water system. Said fees are assessed on a capacity buy-in approach as set forth in § 260A-4 below.
This chapter incorporates by reference the definitions found in the City of Rochester Water Ordinance. Chapter 260, § 260-2, as amended.
These regulations shall govern the assessment of connection fees upon new development connections to the City's Public Water System to generate capital funds to maintain, improve, and expand the water system to minimize the effect on existing customers in a fair and equitable manner.
The water development connection fee or assessment will be imposed pursuant to these provisions only upon new development connections, including subdivisions, building construction and other land use changes, based on a capacity buy-in approach. This approach applies to new users that are required to invest in the equity of the City's Public Water System at a rate that reflects prior investments by existing users per unit of total capacity to raise funds to meet the demands and impacts created by the new development connections to the City's water treatment and distribution facilities, inclusive of the system defined herein as the Public Water System. The water development connection fee shall not apply to any capital projects, including new connections or repairs, improvements, replacements, or expansion of the public water system initiated by the City, as approved by the City Council.
The water development connection fee is calculated as a per gallon per day charge by dividing the net equity in user paid capital assets by the capacity of the respective water system in gallons per day. The portion of the water system capacity assigned to any new user is determined based on New Hampshire Water Usage Unit Design Standards, as contained in Table 1008-1 in Env-Wq 1000 of the New Hampshire Code of Administrative Rules. The Code of Administrative Rules can be found at: https://www.des.nh.gov/sites/g/files/ehbemt341/files/documents/2020-01/Env-Wq%201000.pdf
The water development connection fee will be assessed by the Department at the time of application only for new connections pursuant to Article I, § 260-4. The fee shall not be assessed for any existing connections or developments. The fees shall be collected at the time of application for connection in accordance with § 260-4 above; however, the Department and applicant may establish an alternate, mutually acceptable schedule of payment of water development connection fees. If an alternate schedule for payment of fees is established, the Department may require the applicant to post surety, in the form of a cash bond, letter of credit or performance bond to guaranty future payment of the assessed impact fees. The Department and City reserve the right to annual review and amend the water development connection fees as necessary.
A. 
An applicant may request a full or partial waiver from the Department of the water development connection fee assessments imposed by this chapter. The amount of any such waiver, including the value of the land, facilities constructed, or other like-kind contributions or improvements to be made by the applicant toward public capital facilities in lieu of a water development connection fee shall not exceed the value of the water development connection fee.
B. 
The applicant must exclude from a waiver application the value of any on-site and/or off-site contributions or improvements that the applicant is required by the Department or City to implement or construct as a result of a plan or development approval. The required on or off-site contributions or improvements as a result of a plan or development approval by the City must be completed by the applicant in addition to or regardless of the water development connection fee under this chapter. The value of contributions or improvements proposed as a waiver to offset the connection fee by the applicant shall be credited only towards facilities of a like kind. All costs incurred by the Department for the review of a proposed waiver, including reasonable consultant and counsel fees, shall be paid by the applicant requesting a waiver.
C. 
An applicant may apply to the Department for a waiver of a portion or the full amount of the water development connection fee, where such waiver application is accompanied by an independent fee calculation study that documents the proportionate capital cost impacts of the new connection or development. The Department shall review any such study, and in its discretion, make a recommendation to the City Manager as to whether a waiver should be granted or denied. The City Manager shall approve all waiver applications. All costs incurred by the Department for review of any such study shall be paid by the applicant.
A. 
All funds collected shall be properly identified and promptly transferred for deposit into an individual capital facilities connection fee account for the water facilities for which fees are assessed and shall be used solely for the purposes specified in this chapter. The water development connection fee account shall be a capital reserve fund account and the City shall not accrue these fee revenues to the general fund.
B. 
Payment, administration, collection, custody, and records for the water development connection fee account shall be done by the Finance Department upon the direction of the City Manager.
C. 
The Department shall make a report to the City Council at the end of the fiscal year providing an account of all public water system facilities funded through water development connection fees during the prior year, and the report shall also include a summary of all waivers granted during the prior year.
D. 
Funds withdrawn from the water development connection fee account shall be used solely for the purpose of acquiring, constructing, expanding, or equipping those public water system facilities identified in this chapter.
Any party aggrieved by any decision, regulation, or provision under this chapter, as amended, from time to time, shall have the right to appeal said decision first to the Department. The Department shall issue a decision within 30 calendar days of receipt of the appeal. If said appeal is denied by the Department, then the aggrieved party shall have the right to appeal to the Utility Advisory Board within 30 days.
The City reserves the right to adopt, from time to time, additional rules and regulations as it shall deem necessary and proper relating to this chapter, which additional rules and regulations, to the extent appropriate, shall be a part of this chapter.
This chapter shall be in full force and effect immediately following its passage, as provided by law.