Borough of Chester, NJ
Morris County
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Table of Contents
Table of Contents

§ 192-40 Introduction.

A. 
The Borough is responsible for the provision of sanitary sewer services. In response to Borough approvals of development projects requiring these services and in fulfillment of municipal ordinances, the Borough undertakes substantial efforts to plan the construction of capital improvement projects essential to the provision of sewer and water services to accommodate existing and new demand for these services.
B. 
The Borough recognizes that there is a substantial need to allocate capacity in Borough facilities in order to provide the community with orderly and safe growth and to ensure the public health, safety and welfare. Furthermore, the Borough recognizes that the coordinated phase-in of new and expanded sewer service requests will promote the efficient allocation of sewer service and ensure that development is ultimately supported by adequate off-tract infrastructure prior to allocation of limited sewer capacity resources. Therefore, the Borough continues to pursue governing the allocation of treatment capacity within the Boroughs sewage treatment facilities and within the Boroughs potable water treatment facilities. The Borough hereby promulgates rules and regulations for the implementation and application of the allocation policy to all development projects and others within Borough.

§ 192-41 Purpose.

It is the purpose of the Borough in promulgating these rules and regulations to:
A. 
Accomplish the allocation of capacity within its potable wastewater treatment facilities with full recognition given to the sanitary sewer and potable water requirements as found in planning and zoning ordinances of the Borough and based upon the "build out" requirements of the Land Use Element and Utilities Services Element of the Borough Master Plan;
B. 
Administratively respond and adapt its capacity allocation within its wastewater treatment facilities to the evolutional land use objectives of the Borough;
C. 
Recognize that whenever any applicant's requirements for sewer service exceed the ability of the Borough to deliver service due to sewer system deficiencies of any kind, it shall be the responsibility of the applicant to pay its proportionate share of costs related to the upgrade and expansion of facilities, including planning, design, and construction of all facilities necessary to meet its requirements;
D. 
Accept responsibility for the growth and management of its sewer and water facilities in all aspects;
E. 
Eliminate the potential for the retaining of allocations of capacity in Borough facilities without actual connection as not being in the best economic and financial interest of the Borough and the community. This is accomplished by restricting the amount of gallonage to be allocated to development projects receiving preliminary approval from the Borough Planning Board or Zoning Board of Adjustment to the maximum gallonage limits as specified herein, and by specifying certain construction performance standards as well as reservation fees; and
F. 
Promote health, safety and welfare of the public as well as ensuring the construction of necessary infrastructure by coordinating the allocation of capacity within Borough facilities with off-tract road projects and programs of the Borough and the County of Morris.

§ 192-42 Guidelines and requirements for allocation of capacity for all users.

A. 
Capacity allocation agreements.
(1) 
Applicants shall enter into capacity allocation agreements with the Borough. These agreements shall specify, among other things, the following:
(a) 
Name of applicant and applicant's project (where applicable);
(b) 
Approval dates for the project from governmental and other bodies having jurisdiction;
(c) 
The financial obligations of the applicant; and
(d) 
The time(s) and method of payment and guaranties of performance.
(2) 
Applicants are required to pay for all services rendered in connection with a capacity allocation agreement. Generally, expenditures will consist of, but shall not be limited to the following:
(a) 
Expenditures associated with plan review and approval;
(b) 
Expenditures associated with construction inspection and engineer certification of applicant-built facilities; and
(c) 
Expenditures associated with the provision of as-built plans and drawings to the Borough.
B. 
Transfer of capacity allocation. Unless and only to the extent expressly permitted in any capacity allocation agreements, capacity allocation within the facilities of the Borough cannot be traded, sold, or otherwise reallocated by an applicant, unless the property identified by the capacity allocation agreement is sold to a new owner, such that the allocation shall run with the land to the extent necessary to effect the intent of that allocation agreement. Capacity allocated for any project or development shall not be assignable to any other project. In the event that a project or development is abandoned, or the construction of the same does not utilize the entire allocation of capacity granted to it, unused capacity will revert to the Borough, and shall become available for allocation in accordance with the terms of this policy.
C. 
Ownership of facilities. The Borough will own, operate and maintain all facilities related to sewer and water systems, excluding certain common use facilities serving multifamily units and commercial/industrial construction as determined by the Borough.

§ 192-43 Allocation and utilization of gallonage.

A. 
Categories of gallonage. Applicants for allocation of capacity within the Borough sewer and water treatment facilities shall be assigned to one of the following categories of gallonage based upon a qualitative analysis by the Borough of the requirements of the applicant for service. In descending levels of importance the categories are as follows:
(1) 
Health hazard gallonage. Gallonage from this category shall be allocated without limitation to relieve health hazards related to sanitary waste disposal within the Borough in accordance with state statute and the Borough Health Department. This category is the highest level of importance.
(2) 
Public building gallonage. Gallonage from this category shall be allocated without limitation to public buildings which are to be used for the health, safety and welfare of the public.
(3) 
Residential infill lot development. Gallonage from this category shall be allocated without limitation to existing lots within the residential zones which either (a) are not part of a major subdivision of land for development purposes, or (b) are part of a minor subdivision as defined under Borough ordinance one time only, and are within 200 feet of an existing sewer.
(4) 
Nonresidential infill gallonage. Gallonage represented by this category shall be allocated to existing and new customers for development or redevelopment of nonresidentially zoned properties. Allocations of capacity from this category of gallonage shall be granted based upon the assumption that (i) the Borough shall not be subject to a sewage treatment capacity connection moratorium as defined by the NJDEP and/or other applicable law or regulation, and (ii) applicants for allocations of capacity under this category of gallonage shall comply with the Treatment Works Approval Regulations of the NJDEP, if applicable. Nonresidential infill lot allocations shall be limited to:
(a) 
Nonresidential infill lots that were created by a minor subdivision (as defined under Borough ordinance) one time only or a single existing nonresidential lot; and
(b) 
Properties that lie within 200 feet of an existing sanitary sewer line and require a connection to the sanitary sewer system.
(5) 
Committed flow gallonage. Gallonage represented by this category shall consist of gallonage which has been allocated to applicants pursuant to:
(a) 
The issuance by NJDEP of a valid sewer extension permit which has not expired; or
(b) 
An agreement or other writing executed by an applicant and the Borough.
(6) 
New growth gallonage. Gallonage represented by this category shall be allocated to applicants for new development projects which have been duly approved by all governmental bodies having jurisdiction. New development projects are defined as new residential or nonresidential construction on vacant land and/or the expansion, upgrade, development or redevelopment of existing nonresidential properties. Allocations of capacity from this category of gallonage shall be granted based upon the assumption that (i) the Borough shall not be subject to a sewage treatment capacity connection moratorium as defined by the NJDEP and/or any other applicable law or regulation and (ii) applicants for allocations of capacity under this category of gallonage shall comply with the Treatment Works Approval Regulations of the NJDEP, if applicable. Projects requiring Planning Board and/or Zoning Board approvals shall be included in this category.
B. 
Level of priority of applicants within designated categories. The Borough shall establish and maintain for each applicant, in descending order, a priority position within the category of gallonage in which the applicant has been placed based upon the effective date of preliminary approval for that project from the Borough Planning Board or upon receipt of the appropriate equivalent approvals from the Zoning Board of Adjustment. Allocation of capacity in accordance with the Boroughs waiting list, if one is in place, shall be made from within each category. It is the expressed intention of the Borough that applicants are responsible for securing all needed approvals for their projects. Failure on the part of the applicant to secure a needed governmental approval for its project may result in placement of the applicant in a lower priority position, if failure to secure the approval results in the applicant's inability to proceed with the project within designated time frames as indicated in the Boroughs ordinance pertaining to allocation of gallonage.

§ 192-44 Reserved amounts of gallonage within categories.

The Borough reserves the right to reserve uncommitted amounts of gallonage within each specific category of gallonage for any purpose that it deems appropriate related to that category. Furthermore, based upon changing circumstances, utilization of available capacity by applicants, and the passage of time, Borough may reallocate amounts of gallonage among categories. Unused capacity in any category will revert to the Borough.

§ 192-45 Capacity allocation and adequacy of conveyance systems.

Allocation of capacity within Borough treatment facilities will be granted upon the premise that existing conveyance systems are adequate to provide the needed service to and from the applicant's site. If existing conveyance facilities are found to be inadequate to fulfill the applicant's requirements for service, projects will not be permitted to utilize allocated capacities within treatment facilities until necessary off-tract improvements are constructed by the applicant, Borough or others. Even if existing conveyance systems are presently adequate to fulfill the applicant's service requirements, the applicant may still be subject to requirements to contribute to the future improvement or expansion of conveyance systems based upon the applicant's impact thereon.

§ 192-46 Revocation and recapture of allocated gallonage.

A. 
Approval of facilities extensions. Applicants for sewer service requiring construction permits for on-tract and off-tract extensions of existing sewer facilities shall not receive an allocation of gallonage in Borough facilities without first having received Borough approval and/or endorsement for the extension of those facilities through the NJDEP's construction permits process and thereafter have been issued an NJDEP construction permit for those extensions. Subject to conditions further discussed in this article, applicants holding valid construction permits in accordance with NJDEP regulations shall not have their allocations of gallonage revoked by the Borough.
B. 
Allocations subject to revocation. Allocation of capacity in Borough facilities is subject to revocation under the following conditions:
(1) 
If the responsible party fails to initiate construction of permitted on-tract and off-tract facilities prior to the expiration of any NJDEP construction permit. Expired permits are subject to renewal/reapproval by the Borough prior to renewal/reapproval of the permit by NJDEP.
(2) 
After commencement of construction of permitted on-tract and off-tract facilities but prior to completion/final certification of said facilities, the allocation of capacity in Borough facilities is not subject to revocation if the responsible party maintains a valid construction permit in accordance with NJDEP regulations. The responsible party is expected to make reasonable continuous progress toward completion of construction of off-tract and on-tract facilities.
(3) 
After completion/final certification of NJDEP permitted on-tract and off-tract facilities by the Borough or its designated agent, a one-year time period (two years for nonresidential applicants) elapses without the applicant having been issued sewer and water connection permits annually for no less than 20% of approved residential structures (50% of approved structures for nonresidential applicants) associated with the applicant's project.
(4) 
If a one-year time period elapses from the issuance of a sewer and water connection permit without the issuance of any additional such permits for no less than 20% of approved residential structures (50% of approved structures for nonresidential applicants).
(5) 
If the responsible party declares bankruptcy and is unable to fulfill his financial commitments agreed to in the capacity allocation agreement.
(6) 
Notwithstanding any provisions herein, the maximum period for which any capacity allocation may be reserved without actual physical connection to the Boroughs system shall be 10 years, after which time, any capacity not being utilized by actual connection shall revert to the Borough, and shall become available for reallocation by the Borough as set forth in this chapter.