149-I:4-a Contracts for Private Construction and Reimbursement. –
I. A municipality adopting this section may contract with a private nongovernmental entity for the design, construction, and funding of a new sewer or sewerage system, or addition or modification thereto, but not for the subsequent maintenance thereof, meeting approved governmental standards of design and construction, for any such project for which the municipality may incur indebtedness under RSA 33, and may hold, expend, or distribute funds pursuant to the terms of such contract with a private nongovernmental entity; provided that sewer rentals, fees, and other charges received from persons benefitting from the sewer project may be used for the repayment of costs of design and construction funded by the private nongovernmental entity.
II. A municipality may adopt the provisions of this section allowing the board of sewer commissioners, board of public works commissioners, sewer department, or appropriate governing body to enter into a contract with a private nongovernmental entity, as described in this section, by the following method:
(a) In a town, other than a town that has adopted a charter pursuant to RSA 49-D, the question shall be placed on the warrant of a special or annual town meeting, by the governing body or by petition pursuant to RSA 39:3.
(b) In a city or town that has adopted a charter pursuant to RSA 49-C or RSA 49-D, the legislative body may consider and act upon the question in accordance with its normal procedures for passage of resolutions, ordinances, and other legislation. In the alternative, the legislative body of such municipality may vote to place the question on the official ballot for any regular municipal election.
(c) The vote shall specify the provisions of this section allowing for a contract with a private nongovernmental entity for the design, construction, and funding of a sewer or sewerage system or addition or modification thereto. If a majority of those voting on the question vote "yes," the procedure shall be available within the town or city on the date set by the governing body.
(d) A municipality may rescind the adoption provided in subparagraph (c) in the manner described in this paragraph.
III. The contract may provide for the transfer of sewer rentals, fees, and other charges as follows:
(a) Sewer rentals assessed under RSA 149-I:8 and system development charges for persons benefiting from the sewer project, held in a sewer fund under RSA 149-I:10, may be used for repayment of the costs of design and construction incurred by a private nongovernmental entity pursuant to the terms of the contract.
(b) Sewer rentals which would otherwise have been assessed to the private nongovernmental entity may be considered as sewer rentals levied, paid, and credited to the repayment under subparagraph (a).
IV. The contract shall provide for the following:
(a) Sewer rentals, fees, and other charges collected from persons served by the sewer project shall be separately accounted for within the sewer fund.
(b) No repayment obligation in the contract shall be made from funds other than from such separately accounted for sewer rentals, fees, and other charges in the sewer fund.
(c) The total of repayments under the contract shall not exceed the total costs of design and construction incurred by a private nongovernmental entity for the project.
(d) The contract shall contain a clause stating that no municipal general funds shall be appropriated for the repayment obligations under the contract.
(e) The contract under this section shall not be considered complete and enforceable until the final agreement is approved by majority vote of the governing body of the municipality.
V. The repayment obligation pursuant to a contract under this section shall at no time be included in the net indebtedness of the municipality for the purposes of RSA 33.