PETITION OF:

Section 1. Notwithstanding any general or special law, rule or regulation to the contrary, the town of Hadley may establish a special account to be known as the Town of Hadley Sewer System Capital Improvement Fund. The purpose of the fund is to provide the revenue for the improvement and rehabilitation of the system to treat wastewater within the sewer system servicing the town of Hadley, the funding of engineering, construction and rehabilitation of the sewer treatment works, pumping stations and facilities serving the town of Hadley and to provide revenues to do all things necessary to correct, remedy, repair, prevent and prohibit any and all forms of infiltration or inflow from groundwater and other sources of leakage into pipes, facilities and system. The special account shall be maintained by the treasurer of the town of Hadley in a banking institution doing business in the commonwealth and expenditures from the special account shall be made subject to appropriation initiated by the sewer commission and approved by a majority vote of the town meeting.

Section 2. Payments to such account shall be made by applicants for connection to the sewer system of the town who are constructing or erecting new buildings or developing land for industrial, commercial and residential uses. The method and amount of such payments from such private sources shall be as determined by a schedule of fees to be set by the sewer commission. The schedule shall provide for the method of determining the amount of each payment from such applicants based upon their anticipated sewer use as provided in section 3.

Section 3. The sewer commission may assess a sewer improvement fee for all new connections to the town sewer system as determined by the sewer commission. Prior to assessing said sewer improvement fee, the sewer commission shall prepare a wastewater facilities upgrade and improvement plan, which shall include an engineer’s estimate of construction costs. The sewer improvement fee shall be assessed by one of the methods authorized by MGL c, 83, s. 15 and shall not exceed the estimated cost of construction to improve the sewer system and to reduce infiltration and inflow into the system.

Section 4. There shall be a schedule of estimated costs of constructing such wastewater facilities as are described in section 1, expressed in dollars per square foot, established by the commission, which schedule will not be established until the proposed schedule is first published in a newspaper in general circulation in the town and considered at a public hearing held for such purpose.

Section 5. All sewer improvement fees collected shall be deposited into the special fund. Monies deposited into the special fund shall be used only for the purposes set forth in this act, as may be determined by the commission. The commission may accept grants or gifts for deposit into the fund. The treasurer of the town of Hadley may invest monies in the special account and the income and interest accruing shall inure to the benefit of the special account.

Section 6. The sewer system improvement fees imposed under this act shall be in addition to any other fees permitted by law, including without limitation, sewer connection fees, betterment fees, privilege fees and user charges.

Section 7. Additional appropriation may be made by a majority vote of the town meeting into this special account for the purpose of providing additional funds for the purposes set forth in this act.

Section 8. The sewer commission for the town of Hadley may make applications for available state and federal government grants for the engineering, construction and rehabilitation of wastewater treatment works, pumping station and facilities, and to pledge any and all such sums of money in said account with the approval of the town meeting for any such matching grants for engineering, construction and rehabilitation of wastewater treatment works, pumping stations and facilities.

Section 9. The town accountant shall file jointly with the sewer commission, the treasurer, finance committee and the bureau of accounts, a written report relative to such special account. The report shall be made 120 days after the books of account are closed for each fiscal year.

Section 10. The sewer commission shall promulgate rules and regulations for the implementation and administration of the special account and set fees in accordance with this act.