General Assembly Substitute Bill No. 87
February Session, 2016 *_____SB00087PD____032116____*
General Assembly
Substitute Bill No. 87
February Session, 2016
*_____SB00087PD____032116____*
AN ACT CONCERNING THE SOUTH CENTRAL CONNECTICUT REGIONAL WATER AUTHORITY.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 1 of special act 77-98, as amended by section 5 of special act 99-12, section 2 of public act 02-85 and section 1 of special act 13-20, is amended to read as follows (Effective from passage):
It is found and declared as a matter of legislative determination that the creation of the South Central Connecticut Regional Water Authority for the primary purpose of providing and assuring the provision of an adequate supply of pure water and the safe disposal of wastewater at reasonable cost within the South Central Connecticut Regional Water District and such other areas as may be served pursuant to cooperative agreements and acquisitions authorized by section 11 of special act 77-98, as amended by section 5 of special act 78-24, section 3 of special act 84-46, [and] section 7 of public act 02-85 and section 3 of this act, and, to the degree consistent with the foregoing, of advancing water conservation and the conservation and compatible recreational use of land held by the authority, conducting [water or environmental related activities] or investing in businesses related to water, energy, agriculture, the environment or any other activity, provided such other activity is determined to be in the best interests of customers by a majority of the total weighted votes of the membership of the representative policy board, in each case within or without the district [, provided] and that, at the time of any additional investment in such activities, the authority's [outstanding principal debt] original capital investment less returns of or on such capital in such [activities] businesses made on and after June 30, [2013] 2016, shall not exceed the greater of five per cent of the authority's net utility plant devoted to water supply and distribution and wastewater collection and treatment or such higher amount approved by a majority of the total weighted votes of the membership of the representative policy board and the carrying out of its powers, purposes, and duties under sections 1 to 33, inclusive, of special act 77-98, as amended by special act 78-24, special act 84-46, sections 5 to 7, inclusive, of special act 99-12, sections 2 to 21, inclusive, of public act 02-85, [and this act] special act 13-20, this section and sections 2 to 7, inclusive, of this act, and for the benefit of the people residing in the South Central Connecticut Regional Water District and the State of Connecticut, and for the improvement of their health, safety and welfare, that said purposes are public purposes, and that the authority will be performing an essential governmental function in the exercise of its powers under sections 1 to 33, inclusive, of special act 77-98, as amended by special act 78-24, special act 84-46, sections 5 to 7, inclusive, of special act 99-12, section 2 of public act 02-85, [and this act] special act 13-20, this section and sections 2 to 7, inclusive, of this act.
Sec. 2. Subsection (a) of section 4 of special act 77-98, as amended by section 3 of special act 78-24, section 2 of special act 84-46, section 5 of public act 02-85, section 2 of special act 03-11 and section 10 of special act 13-20, is amended to read as follows (Effective from passage):
(a) There shall be a representative policy board of the South Central Connecticut Regional Water District which shall consist of one elector from each city and town within the district who shall be appointed by the chief elected official of such city or town, with the approval of its legislative body, and one elector of the state who shall be appointed by the governor. Members shall serve for a term of three years commencing July 1, except that the members first appointed shall serve terms commencing July 1, 1977, and such members appointed from Bethany, East Haven, Killingworth, New Haven, Orange and West Haven shall serve until June 30, 1978, such members appointed from Branford, Guilford, Madison, North Branford, Prospect and Woodbridge shall serve until June 30, 1979, such members appointed from Cheshire, Hamden, Milford, North Haven and Wallingford shall serve until June 30, 1980, and the member first appointed by the governor shall serve for a term commencing upon appointment and ending on the third June thirtieth thereafter; provided members shall continue to serve until their successors are appointed and have qualified. In the event of the resignation, death or disability of a member from any city or town or the state, a successor may be appointed by the chief elected official of such city or town, or in the case of the member appointed by the governor, for the unexpired portion of the term. The chief elected official of each such city or town may appoint a provisional member to serve until December 1, 1977, with full authority to act as a member until said date. Members and provisional members shall receive one hundred dollars, adjusted as provided in this subsection, for each day in which they are engaged in their duties and shall be reimbursed for their necessary expenses incurred in the performance of their duties. Such one-hundred-dollar-per-day compensation amount shall be adjusted on January 1, 2015, and every fifth year thereafter to reflect [changes] increases since 2012 in the Consumer Price Index for All Urban Consumers, Northeast Urban, All Items (1982-84=100) published by the United States Bureau of Labor Statistics or a comparable successor index. They shall elect a chairman and a vice-chairman, who shall be members or provisional members of the representative policy board, and a secretary. The chairman shall receive a per diem payment of 1.5 times the amount paid to members and provisional members. The representative policy board shall meet at least quarterly with the authority and such members of the staff of the authority as the representative policy board deems appropriate.
Sec. 3. Section 11 of special act 77-98, as amended by section 5 of special act 78-24, section 3 of special act 84-46 and section 7 of public act 02-85, is amended to read as follows (Effective from passage):
Subject to the provisions of sections 1 to 33, inclusive, of special act 77-98, as amended by special act 78-24, special act 84-46, sections 5 to 7, inclusive, of special act 99-12, [and this act] public act 02-85, special act 13-20, this section and sections 2 to 7, inclusive, of this act, the authority shall have the power: (a) To sue and be sued; (b) to have a seal and alter the same at its pleasure; (c) to acquire in the name of the authority by purchase, lease or otherwise and to hold and dispose of personal property or any interest therein, including shares of stock of a subsidiary corporation; (d) to acquire in the name of the authority by purchase, lease or otherwise and to hold and dispose of any real property or interest therein, including water rights and rights of way and water discharge rights, which the authority determines to be necessary or convenient, and to acquire any existing wastewater system or water supply system or parts thereof which are wholly or partially within the district as described under section 3 of special act [78-24] 77-98, as amended by section 2 of special act 78-24, section 1 of special act 84-46 and [this act] public act 02-85. As a means of so acquiring, the authority or a subsidiary corporation may purchase all of the stock or all or any part of the assets and franchises of any existing privately owned water or wastewater company, whereupon the authority or such subsidiary corporation shall succeed to all rights, powers and franchises thereof. Sections 16-43, 16-50c and 16-50d of the general statutes shall not apply to any action by the authority or a subsidiary corporation or any action by any privately owned water company or sewage company, as defined in section 16-1 of the general statutes, taken to effectuate the acquisition of the stock or all or any part of the assets and franchises of such water company or sewage company by the authority, provided section 16-43 shall apply to any action taken to effectuate the acquisition of the stock or all or any part of the assets and franchises of the Ansonia Derby Water Company by the authority. Notwithstanding any provision of section 25-32 of the general statutes, land may be transferred to the authority or a subsidiary corporation of the authority as part of such an acquisition. The commissioner of health services shall not grant a permit for a change in the use of any class I or class II land owned by the Ansonia Derby Water Company on the effective date of this section and not transferred to the authority or a subsidiary corporation or a permit for the sale, lease or assignment of any such class II land, unless (1) all provisions of section 25-32 are complied with, and (2) the commissioner of health services determines, after holding a hearing, notice of which shall be published not later than thirty days before the hearing in one or more newspapers having a substantial circulation in the municipalities in which the land is located, that such change in the use or sale, lease, or assignment of the land will not have a significant adverse impact upon present and future water supply needs of the authority or a subsidiary corporation of the authority; (e) to construct and develop any water supply system or any wastewater system; (f) to own, operate, maintain, repair, improve, construct, reconstruct, replace, enlarge and extend any of its properties; (g) any provision in any general statute, special act or charter to the contrary notwithstanding, but subject to the provisions of section 12 of special act 77-98, as amended by [this act] section 8 of public act 02-85, and section 28 of special act 77-98, as amended by section 9 of special act 78-24, to sell water, however acquired, to customers within the district or to any municipality or water company; (h) any provisions in any general statute, special act or charter to the contrary notwithstanding, to purchase water approved by the commissioner of health from any person, private corporation or municipality when necessary or convenient for the operation of any water supply system operated by the authority; (i) to adopt and amend bylaws, rules and regulations for the management and regulation of its affairs and for the use and protection of the water and properties of the authority or a subsidiary corporation and, subject to the provisions of any resolution authorizing the issuance of bonds, rules for the sale of water, the collection and processing of wastewater and the collection of rents and charges for both water supply and wastewater functions. A copy of such bylaws, rules and regulations and all amendments thereto, certified by the secretary of the authority, shall be filed in the office of the secretary of the state and with the clerk of each town and city within the district. Any superior court located within the district shall have jurisdiction over any violation of such bylaws, rules or regulations and the authority may prosecute actions before the superior court to enforce such bylaws, rules and regulations; (j) to make contracts and to execute all necessary or convenient instruments, including evidences of indebtedness, negotiable or non-negotiable; (k) to borrow money, to issue negotiable bonds or notes, to fund and refund the same and to provide for the rights of the holders of the authority's obligations; (l) to open the grounds in any public street or way or public grounds for the purpose of laying, installing, maintaining or replacing pipes and conduits, provided upon the completion of such work the grounds shall be restored to the condition they were in previously; (m) to enter into cooperative agreements with other water authorities, municipalities, water districts, water companies or water pollution control authorities within or without the district for interconnection of facilities, for exchange or interchange of services and commodities or for any other lawful purpose necessary or desirable to effect the purposes of sections 1 to 33, inclusive, of special act 77-98, as amended by special act 78-24, special act 84-46 and sections 5 to 7, inclusive, of special act 99-12, special act 13-20, this section and sections 2 to 7, inclusive, of this act, such agreements to be binding for a period specified therein; (n) to acquire, hold, develop and maintain land and other real estate and waters for conservation and for compatible active and passive recreational purposes and to levy charges for such uses, provided the state department of health finds that such uses will not harm the quality of water provided by the authority; (o) to apply for and accept grants, loans or contributions from the United States, the state of Connecticut or any agency, instrumentality or subdivision of either of them or from any person, and to expend the proceeds for any of its purposes; (p) to create programs and policies for the purpose of conserving water; (q) to do any and all things necessary or convenient to carry out the powers expressly given in sections 1 to 33, inclusive, of special act 77-98, as amended by special act 78-24, special act 84-76, and sections 5 to 7, inclusive, of special act 99-12, [and this act] public act 02-85, special act 13-20, this section and sections 2 to 7, inclusive, of this act, including the powers granted by the general statutes to stock corporations, except the power to issue stock, and the powers granted by the general statutes to water pollution control authorities.
Sec. 4. Section 14 of special act 77-98, as amended by section 6 of special act 78-24, section 6 of special act 99-12 and section 10 of public act 02-85, is amended to read as follows (Effective from passage):
With the approval of the representative policy board, the authority shall establish just and equitable rates or charges for the use of the water supply system and the wastewater system authorized herein, to be paid by any customer, and may change such rates or charges from time to time. Such water supply system rates or charges shall be established so as to provide funds sufficient in each year, with other water supply related revenues, if any, (a) to pay the cost of maintaining, repairing and operating the water supply system and each and every portion thereof, to the extent that adequate provision for the payment of such cost has not otherwise been made, (b) to pay the principal of and the interest on outstanding water supply bonds of the authority as the same shall become due and payable, (c) to meet any requirements of any resolution authorizing, or trust agreement securing, such bonds of the authority, (d) to make payments in lieu of taxes as provided in section 21 of special act 77-98, as amended by section 8 of special act 78-24 and [this act] public act 02-85, as the same become due and payable, upon the water supply system properties of the authority or of a subsidiary corporation to the municipalities in which such properties are situated, (e) to provide for the maintenance, conservation and appropriate recreational use of the land of the authority, and (f) to pay all other reasonable and necessary expenses of the authority and of the representative policy board to the extent that such expenses are allocable to the water supply system activities of the authority and the representative policy board. Such wastewater system rates or charges shall be established so as to provide funds sufficient in each year with other wastewater related revenues, if any, (1) to pay the cost of maintaining, repairing and operating the wastewater system and each and every portion thereof, to the extent that adequate provision for the payment of such cost has not otherwise been made, (2) to pay the principal of and the interest on outstanding wastewater bonds of the authority as the same shall become due and payable, (3) to meet any requirements of any resolution authorizing, or trust agreement securing, such bonds of the authority, (4) to pay all other reasonable and necessary expenses of the authority and of the representative policy board to the extent that such expenses are allocable to the wastewater activities of the authority and of the representative policy board. No such rate or charge shall be established until it has been approved by the representative policy board, after said board has held a public hearing at which all the users of the waterworks system or the wastewater system, the owners of property served or to be served and others interested have had an opportunity to be heard concerning such proposed rate or charge. The representative policy board shall approve such rates and charges unless it finds that such rates and charges will provide funds in excess of the amounts required for the purposes described previously in this section, or unless it finds that such rates and charges will provide funds insufficient for such purposes. The rates or charges so established for any class of users or property served shall be extended to cover any additional premises thereafter served which are within the same class, without the necessity of a hearing thereon. Any change in such rates or charges shall be made in the same manner in which they were established. The rates or charges levied upon any customer of any water supply system acquired pursuant to subsection (d) of section 11 of special act 77-98, as amended by section 5 of special act 78-24, section 3 of special act 84-46, [and this act] public act 02-85, this section and sections 2 to 7, inclusive, of this act, or served pursuant to a cooperative agreement pursuant to subsection (m) of said section 11 shall not be required to be equalized with the authority's existing rates, but may be set on a separate basis, provided such rates are just, equitable and nondiscriminatory. Such rates or charges, if not paid when due, shall constitute a lien upon the premises served and a charge against the owners thereof, which lien and charge shall bear interest at the same rate as would unpaid taxes. Such lien shall take precedence over all other liens or encumbrances except taxes and may be foreclosed against the lot or building served in the same manner as a lien for taxes, provided all such liens shall continue until such time as they shall be discharged or foreclosed by the authority without the necessity of filing certificates of continuation, but in no event for longer than [ten] fifteen years. The amount of any such rate or charge which remains due and unpaid for thirty days may, with interest thereon at [the same rate as unpaid taxes] a rate approved by the representative policy board but not to exceed the maximum interest rate allowed by state law for unpaid property taxes and with reasonable attorneys' fees, be recovered by the authority in a civil action in the name of the authority against such owners. Any municipality shall be subject to the same rate or charges under the same conditions as other users of the water supply system or the wastewater system. The assets or the revenues of the water system shall not be available to satisfy debts, judgments or other obligations arising out of the operation of the wastewater system and the assets or the revenues of the wastewater system shall not be available to satisfy debts, judgments or other obligations arising out of the operation of the water system.
Sec. 5. Section 16 of special act 77-98, as amended by section 12 of public act 02-85 and section 4 of special act 13-20, is amended to read as follows (Effective from passage):
All contracts in excess of fifty thousand dollars for any supplies, materials, equipment, construction work or other contractual services shall be in writing and shall be awarded upon either sealed bids or proposals or, unless otherwise required by law, electronic submission of bids or proposals, in each case made in compliance with a public notice duly advertised by publication in one or more newspapers of general circulation or, if there are no such newspapers, in appropriate electronic media, including, without limitation, the authority's Internet web site, as are likely to reach a broad segment of potential vendors, at least ten days before the time fixed for [opening] review of said bids or proposals, except for (1) contracts for professional services, (2) when the supplies, materials, equipment or work can only be furnished by a single party, (3) when the authority determines by a two-thirds vote of the entire authority that the award of such contract by negotiation without public bidding will be in the best interest of the authority, or (4) when the procurement is made as a result of participation in a procurement group, alliance or consortium made up of other state or federal governmental entities in which the state of Connecticut is authorized to participate. The authority may in its sole discretion reject all such bids or proposals or any bids received from a person, firm or corporation the authority finds to be unqualified to perform the contract, and shall award such contract to the lowest responsible bidder qualified to perform the contract.
Sec. 6. Subsection (c) of section 18 of special act 77-98, as amended by section 7 of special act 78-24, section 14 of public act 02-85 and section 5 of special act 13-20, is amended to read as follows (Effective from passage):
(c) After approval of land use standards and disposition policies in the manner provided in subsection (b) of this section, the authority shall not sell or otherwise transfer any real property or any interest or right therein, except for access or utility purposes or any sale or transfer determined by the standing committee on land use and management of the representative policy board to have no significant adverse impact on the authority's open space, recreational or watershed protection policies, without giving thirty days' advance written notice to the representative policy board member from the town in which the subject property lies, or develop such property for any use not directly related to a water supply function, other than for public recreational use not prohibited by section 25-43c of the general statutes, without the approval of a majority of the weighted votes of all of the members of the representative policy board, excluding vacancies, in the case of a parcel of twenty acres or less, and by three-fourths of the weighted votes of all of the members of said board, excluding vacancies, in the case of a parcel in excess of twenty acres. The representative policy board shall not approve such sale or other transfer or development unless it determines, following a public hearing, that the proposed action (1) conforms to the established standards and policies of the authority, (2) is not likely to affect the environment adversely, particularly with respect to the purity and adequacy of both present and future water supply, and (3) is in the public interest, giving due consideration, among other factors, to the financial impact of the proposed action on the customers of the authority and on the municipality in which the real property is located.
Sec. 7. Section 19 of special act 77-98, as amended by section 15 of public act 02-85 and section 6 of special act 13-20, is amended to read as follows (Effective from passage):
The authority shall not (1) acquire, by purchase, lease or otherwise, any existing water supply system or parts thereof or any wastewater system or parts thereof, (2) commence any project costing more than two million dollars to repair, improve, construct, reconstruct, enlarge and extend any of its properties or systems, or (3) acquire or make [a subsequent] an investment in any [water or environment related] business related to water, energy, agriculture, the environment or any other activity determined to be in the best interests of customers pursuant to section 1 of special act 77-98, as amended by section 5 of special act 99-12, section 2 of special act 02-85, section 1 of special act 13-20, this section and sections 2 to 7, inclusive, of this act, in an amount more than one million dollars without the approval, following a public hearing, of a majority of the total weighted votes of the membership of the representative policy board. In the case of the first acquisition by the authority of an existing water supply system or part thereof, after such approval by the representative policy board the authority shall file with the town clerk of each city and town in the district its plan for such acquisition. The legislative body of each such city and town shall approve or disapprove such acquisition plan within sixty days after such filing, provided failure to disapprove within such sixty days shall be deemed approval of such acquisition plan. The authority shall not first acquire an existing water supply system or part thereof except in accordance with an acquisition plan approved by at least sixty per cent of such legislative bodies.
This act shall take effect as follows and shall amend the following sections:
Section 1 from passage SA 77-98, Sec. 1
Sec. 2 from passage SA 77-98, Sec. 4(a)
Sec. 3 from passage SA 77-98, Sec. 11
Sec. 4 from passage SA 77-98, Sec. 14
Sec. 5 from passage SA 77-98, Sec. 16
Sec. 6 from passage SA 77-98, Sec. 18(c)
Sec. 7 from passage SA 77-98, Sec. 19
This act shall take effect as follows and shall amend the following sections:
Section 1
from passage
SA 77-98, Sec. 1
Sec. 2
from passage
SA 77-98, Sec. 4(a)
Sec. 3
from passage
SA 77-98, Sec. 11
Sec. 4
from passage
SA 77-98, Sec. 14
Sec. 5
from passage
SA 77-98, Sec. 16
Sec. 6
from passage
SA 77-98, Sec. 18(c)
Sec. 7
from passage
SA 77-98, Sec. 19
PD Joint Favorable Subst.
PD
Joint Favorable Subst.