Substitute House Bill No. 5277 Special Act No. 24-7 AN ACT AMENDING THE CHARTER OF THE SOUTH CENTRAL CONNECTICUT 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, section 1 of special act 13- 20 and section 1 of special act 17-5, 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, section 7 of public act 02-85 and section 3 of [this act] special act 17-5, 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 or investing in noncore businesses, provided, at the time of any investment in such businesses, the authority's investment, less returns of or on such investments in Substitute House Bill No. 5277 Special Act No. 24-7 2 of 18 such businesses made on and after June 30, 2013, shall not exceed the greater of five per cent of the authority's net utility plant devoted to its water and wastewater utility businesses or such higher amount approved by a majority of the total weighted votes of the membership of the representative policy board, excluding vacancies, 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, special act 13-20, special act 17-5 and 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, special act 13-20, special act 17-5 and this act. The authority shall have the power to conduct or invest in noncore businesses authorized pursuant to this section, either directly or through an affiliated business entity. Sec. 2. Section 2 of special act 77-98, as amended by section 1 of special act 78-24, section 3 of public act 02-85, section 2 of special act 13-20 and section 2 of special act 17-5, is amended to read as follows (Effective from passage): As used in sections 1 to 33, inclusive, of special act 77-98, as amended by special act 78-24, public act 02-85, special act 13-20, special act 17-5 and this act, unless a different meaning appears in the context: "Authority" means the South Central Connecticut Regional Water Authority created by section 5 of special act 77-98, as amended by section 4 of special act 78-24, public act 02-85 and special act 13-20; "district" means the South Central Connecticut Regional Water District Substitute House Bill No. 5277 Special Act No. 24-7 3 of 18 created by section 3 of special act 77-98, as amended by section 2 of special act 78-24; ["Representative policy board"] "representative policy board" means the representative policy board of the South Central Connecticut Regional Water District created by section 4 of special act 77-98, as amended by section 3 of special act 78-24; "chief executive officer" means that full time employee of the authority responsible for the execution of the policies of the authority and for the direction of the other employees of the authority; "treasurer" means the treasurer of the authority; "customer" means any person, firm, corporation, company, association or governmental unit furnished water or wastewater service by the authority or any owner of property who guarantees payment for water or wastewater service to such property; "properties" means the water supply and distribution system or systems, wastewater collection and treatment systems and other real or personal property of the authority; "bonds" means bonds, notes and other obligations issued by the authority; "revenues" means all rents, charges and other income derived from the operation of the properties of the authority; "wastewater" means any substance, liquid or solid, which may contaminate or pollute or affect the cleanliness or purity of any water; "water supply system" means plants, structures and other real and personal property acquired, constructed or operated for the purpose of supplying water, including [land, reservoirs,] basins, dams, canals, aqueducts, standpipes, [conduits, pipelines, mains,] pumping stations, water distribution systems, including land, reservoirs, conduits, pipelines, mains, compensating reservoirs, waterworks or sources of water supply, wells, purification or filtration plants or other plants and works, connections, rights of flowage or diversion and other plants, structures, conveyances, real or personal property or rights therein and appurtenances necessary or useful and convenient for the accumulation, supply or distribution of water or for the conduct of water or environment related activities; "wastewater system" means plants, structures and other real and personal property acquired, constructed or operated for the purpose of collecting, treating and discharging or Substitute House Bill No. 5277 Special Act No. 24-7 4 of 18 reusing wastewater, whether or not interconnected, including wastewater treatment plants, pipes and conduits for collection of wastewater, pumping stations and other plants, works, structures, conveyances, real or personal property or rights therein and appurtenances necessary or useful and convenient for the collection, transmission, treatment and disposition of wastewater; "subsidiary corporation" means a corporation organized under the general statutes or by special act which owns or operates all or part of a water supply system or a wastewater system within the district and all of the voting stock of which is owned by the authority, "noncore business" means an activity, [to be located on property other than class I or class II land owned by the authority] including an activity conducted outside the state of Connecticut, that is related to water, environment, agriculture, sustainable manufacturing support, or an energy project consisting of either a class I renewable energy source, as defined in subdivision (20) of subsection (a) of section 16-1 of the general statutes, or a class III source, as defined in subdivision (38) of said section, but excluding wind sources located within the district [;] and any activity located on property that is class I or class II land owned by the authority; and "affiliated business entity" means a corporation, a limited liability company or a limited partnership controlled directly or indirectly by the authority that conducts or invests in a noncore business. A reference in sections 1 to 33, inclusive, of special act 77-98, as amended by special act 78-24, special act 84-46, public act 02-85 and [this act] special act 13-20, to any general statute, public act or special act shall include any amendment or successor thereto. Sec. 3. 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 Substitute House Bill No. 5277 Special Act No. 24-7 5 of 18 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] two hundred fifty 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] two-hundred-fifty-dollar compensation amount shall be adjusted on January 1, [2015] 2027, and every [fifth] third year thereafter to reflect changes [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 Substitute House Bill No. 5277 Special Act No. 24-7 6 of 18 representative policy board, and a secretary. The chairman shall receive a per diem payment of [1.5] one and one-half 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. (b) In voting upon all matters before the representative policy board, the vote of each member from a city or town shall be accorded a weight, determined as follows: The sum of (1) the quotient obtained by dividing the number of customers in the city or town from which such member is appointed by the total number of customers in all cities and towns from which members have been appointed, taken twice, and (2) the quotient obtained by dividing the number of acres of land owned by the authority within the city or town from which such member is appointed by the total number of acres of land owned by the authority in all cities and towns from which members have been appointed, shall be divided by three, the quotient thereof multiplied by one hundred and the product thereof shall be rounded to the nearest whole number. The weighted vote of the member appointed by the governor shall be one. For the purposes of this section, "number of customers" means the number of premises or groups of premises treated as units for ordinary billing or other ordinary receipt of charges by the authority and shall be determined from the records of the authority on the last day of its preceding fiscal year and "number of acres of land" means the number of acres of land rounded to the nearest whole number as may appear on the records of the authority on the last day of its preceding fiscal year. Notwithstanding the foregoing, prior to the first day of the fiscal year of the authority commencing after the acquisition by the authority of a water supply system, the weighted vote of each member of the representative policy board from a city or town shall be as follows: Bethany, four; Branford, seven; Cheshire, three; East Haven, six; Guilford, four; Hamden, twelve; Killingworth, one; Madison, six; Substitute House Bill No. 5277 Special Act No. 24-7 7 of 18 Milford, eleven; New Haven, seventeen; North Branford, eight; North Haven, four; Orange, three; Prospect, one; Wallingford, one; West Haven, ten; and Woodbridge, two. Whenever a vote is taken on any matter by the representative policy board, the vote shall be determined in accordance with this subsection. Members of the representative policy board holding a majority of the votes so weighted shall constitute a quorum. (c) The representative policy board shall adopt and may amend such rules of procedure and bylaws for the conduct of its affairs as it deems appropriate. It shall establish (1) a standing committee on land use and management to consult with the authority on all matters of land use and management, including acquisition and sale, recreational use, cutting of timber and other products, mining and quarrying; (2) a standing committee on finance to consult with the authority on matters relating to financial and budgetary matters and the establishment of rates; and (3) a standing committee on consumer affairs to consult with the authority and the officer of consumer affairs established pursuant to section 15 of special act 77-98 on matters concerning the interests of people residing within the district. The representative policy board may appoint such other committees as it considers convenient from time to time. (d) The representative policy board of the South Central Connecticut Regional Water District shall also include a member from each of the cities of Ansonia and Derby and the towns of Beacon Falls, Oxford and Seymour, each appointed in the manner set forth in subsection (a) of this section. The members first appointed shall serve from the date of their appointment until June 30, 1985, in the case of Seymour; until June 30, 1986, in the case of Beacon Falls; and until June 30, 1987, in the case of Ansonia, Derby and Oxford. Such members may participate in meetings of the representative policy board notwithstanding such towns and cities will not become members of the South Central Connecticut Substitute House Bill No. 5277 Special Act No. 24-7 8 of 18 Regional Water District until the effective date of the acquisition of the Ansonia Derby Water Company by the South Central Connecticut Regional Water Authority but, until such effective date, such members may vote only on matters concerning the fixing of rates and charges to support the financing of such acquisition. The weighted vote of such members shall be determined in the manner set forth in subsection (b) of this section as if such acquisition had occurred. This subsection shall have no further force and effect after the effective date of such acquisition or June 30, 1987, whichever occurs first. (e) Upon the expansion of the South Central Connecticut Regional Water District to include the area and territory of the town of Wolcott, the representative policy board shall include one member from the town of Wolcott appointed in the manner described in subsection (a) of this section. Such member shall serve for an initial term ending on June 30, 2005, or such later time as the member's successor shall be appointed and qualified. The weighted vote of such member shall be determined in the manner set forth in subsection (b) of this section, provided in no event shall such weighted vote be less than one. Sec. 4. Section 5 of special act 77-98, as amended by section 4 of special act 78-24, is amended to read as follows (Effective from passage): A public corporation, to be known as the "South Central Connecticut Regional Water Authority," constituting a public instrumentality and political subdivision, is created for the purposes, charged with the duties and granted the powers provided in sections 1 to 33, inclusive, of special act 77-98, as amended by special act 78-24 and this act. [The] On and before December 31, 2024, the authority shall consist of five members who shall be residents of the district and not be members of the representative policy board. [, who] On and after January 1, 2025, the authority shall consist of seven members who shall reside in Connecticut and not be members of the representative policy board, and not fewer than five such members shall be residents of the district. [and Substitute House Bill No. 5277 Special Act No. 24-7 9 of 18 who shall] All members shall be appointed without regard to political affiliation by a majority of the total votes of those members of the representative policy board present at a meeting at which [members of said board holding two-thirds of the total votes are present] at least two- thirds of the weighted vote, excluding vacancies, is present, for terms of five years, not to exceed four consecutive full terms, and until their successors are appointed and have qualified, except that of the members first appointed, one shall be appointed for a term ending January 1, 1983, one for a term ending January 1, 1982, one for a term ending January 1, 1981, one for a term ending January 1, 1980, and one for a term ending January l, 1979. The sixth member first appointed shall be appointed for a three-year term ending January 1, 2028, and the seventh member first appointed shall be appointed for a five-year term ending January 1, 2030. Any vacancy occurring on the authority shall be filled in the same manner for the unexpired portion of the term. Any member of the authority may be removed from office by the representative policy board for cause. Members of the authority shall receive such compensation [for their services as shall be fixed by the representative policy board] to be adjusted every three years by the Consumer Price Index factor, as described in section 4 of special act 77-98, as amended by special act 78-24, special act 84-46, public act 02-85, special act 03-11, special act 13-20 and this act, if approved by the majority of weighted votes of the membership of the representative policy board, excluding vacancies, and shall be reimbursed for their necessary expenses incurred in performance of their duties. Sec. 5. Section 9 of special act 77-98 is amended to read as follows (Effective from passage): The authority shall meet at least [monthly] quarterly. Except as the bylaws of the authority may provide in emergency situations, the powers of the authority shall be exercised by the members at a meeting duly called and held. [Three] On and before December 31, 2024, three Substitute House Bill No. 5277 Special Act No. 24-7 10 of 18 members shall constitute a quorum, and on and after January 1, 2025, four members shall constitute a quorum, and no action shall be taken except pursuant to the affirmative vote of [at least three members] a quorum. The authority may delegate to one or more of its members, officers, agents or employees such powers and duties as it may deem proper. Sec. 6. Section 14 of special act 77-98, as amended by section 6 of special act 78-24, section 6 of special act 99-12, section 10 of public act 02-85 and section 5 of special act 17-5, 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, including rates of interest on unpaid rates or charges, and may change such rates, [or] charges or rates of interest 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 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 Substitute House Bill No. 5277 Special Act No. 24-7 11 of 18 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, public act 02-85 and Substitute House Bill No. 5277 Special Act No. 24-7 12 of 18 [this act] special act 17-5 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] not to exceed the maximum rate as would be allowed for 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 fifteen years. The amount of any such rate or charge which remains due and unpaid [for thirty days may] after twenty-eight days, which number of days may be changed with the approval of the majority of the weighted votes of the membership of the representative policy board, excluding vacancies, with interest thereon at a rate approved by the representative policy board but not to exceed the maximum interest rate allowed pursuant to the Connecticut general statutes 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. 7. Section 19 of special act 77-98, as amended by section 15 of public act 02-85, section 6 of special act 13-20 and section 9 of special act Substitute House Bill No. 5277 Special Act No. 24-7 13 of 18 17-5, 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] three and one-half million dollars to repair, improve, construct, reconstruct, enlarge and extend any of its properties or systems, or (3) acquire or make a subsequent investment in any noncore business in an amount more than one and one-half 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, excluding vacancies. The dollar amounts specified in subdivisions (2) and (3) of this section shall be adjusted every three years by the Consumer Price Index factor, as described in section 4 of special act 77-98, as amended by special act 78-24, special act 84-46, public act 02-85, special act 03-11, special act 13-20 and this act, with the approval of a majority of the weighted votes of the membership of the representative policy board, excluding vacancies. 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. Sec. 8. Section 20 of special act 77-98 is amended to read as follows (Effective from passage): (a) The authority shall have an annual audit of its accounts, books and records by a certified public accountant selected by the Substitute House Bill No. 5277 Special Act No. 24-7 14 of 18 representative policy board. A copy of the audit shall be filed in the office of the town clerk in each town within the district [and with the public utilities control authority,] and shall be available for public inspection during the ordinary business hours of the authority at the principal office of the authority. A concise financial statement shall be [published annually, at least once, in a newspaper of general circulation in the municipality where the principal office of the authority is located. If such publication is not made by the authority, the representative policy board shall publish such statement at the expense of the authority] posted annually on the South Central Connecticut Water Authority's Internet web site. (b) The attorney general may examine the books, accounts and records of the authority. Sec. 9. Subsection (a) of section 21 of special act 77-98, as amended by special act 78-24 and section 16 of public act 02-85, is amended to read as follows (Effective from passage): (a) Neither the authority nor a subsidiary corporation or an affiliated business entity shall be required to pay taxes or assessments upon any of the properties acquired by it or under its jurisdiction, control or supervision, provided in lieu of such taxes or assessments the authority shall make annual payments to each municipality in which it or a subsidiary corporation owns property related to the water supply system equal to the taxes which would otherwise be due for the property of the authority or such subsidiary corporation in such municipality, excluding any improvements made to or constructed on any such real property by the authority or such subsidiary corporation, provided land owned by the authority or a subsidiary corporation related to the water supply system shall be assessed in accordance with section 12-63 of the general statutes, and provided further payments for property acquired by the authority or a subsidiary corporation during any tax year shall be adjusted for such fractional year in accordance with Substitute House Bill No. 5277 Special Act No. 24-7 15 of 18 the customary practice in such municipality for adjusting taxes between the buyer and seller of real property. In addition, the authority or a subsidiary corporation shall reimburse each such municipality for its expenses in providing municipal services to any improvements made to or constructed on any real property by the authority or such subsidiary corporation within such municipality. As used in this section, "improvements" does not include water pipes or improvements to water pipes. Sec. 10. Subsection (b) of section 22 of special act 77-98, as amended by section 17 of public act 02-85, is amended to read as follows (Effective from passage): (b) The bonds shall be authorized by resolution of the authority and shall bear such date or dates, mature at such time or times, [not exceeding forty years from their respective dates,] bear interest at such rates per annum, not exceeding statutory limitations, be payable at such times, be in such denomination, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in lawful money of the United States of America, at such place or places, and be subject to such terms of redemption as such resolution or resolutions may provide. All bonds of the authority shall be sold through a negotiated sale or a public sale to the bidder who shall offer the lowest true interest cost to the authority, to be determined by the authority. Sec. 11. Subsection (h) of section 22 of special act 77-98, as amended by section 17 of public act 02-85, is amended to read as follows (Effective from passage): (h) The authority shall have the power out of any funds available to purchase, as distinguished from the power of redemption above, [provided, any bonds issued by it at a price of not more than the principal amount thereof and accrued interest,] and all bonds so Substitute House Bill No. 5277 Special Act No. 24-7 16 of 18 purchased shall be cancelled. Sec. 12. Section 28 of special act 77-98, as amended by section 9 of special act 78-24, is amended to read as follows (Effective from passage): Nothing in sections 1 to 33, inclusive, of special act 77-98, as amended by special act 78-24, special act 84-46 and this act shall be construed to deprive the commissioner of environmental protection, the commissioner of health or any successor commissioner or board of any jurisdiction which such commissioners or boards may now or hereafter have. Neither the public utilities control authority nor any successor board or commissioner shall have jurisdiction of any kind over the authority, a subsidiary corporation, the representative policy board or the rates fixed or charges collected by the authority. [The authority shall annually file the report required of municipalities pursuant to section 16-29 of the general statutes with the public utilities control authority or any successor board and the clerks of the towns and cities within the district.] Sec. 13. Subsection (a) of section 30 of special act 77-98, as amended by section 10 of special act 78-24 and section 20 of public act 02-85, is amended to read as follows (Effective from passage): (a) The authority or any person who is aggrieved by a decision of the representative policy board with respect to the establishment of rates or charges, the establishment of land use standards and disposition policies, the sale or other transfer or change of use of real property, the location of purification, filtration or wastewater treatment plants, the commencement of any project costing more than [two] three and one- half million dollars, and as adjusted by the Consumer Price Index factor, as described in section 4 of special act 77-98, as amended by special act 78-24, special act 84-46, public act 02-85, special act 03-11, special act 13- 20 and this act, and subject to the approval of a majority of the weighted votes of the membership of the representative policy board, excluding Substitute House Bill No. 5277 Special Act No. 24-7 17 of 18 vacancies, to repair, improve, construct, reconstruct, enlarge or extend any of the properties or systems of the authority or the acquisition by purchase, lease or otherwise of any existing water supply system, wastewater system or part thereof, other than the purchase of all or any part of the properties and franchises of the New Haven Water Company, is entitled to review by the Superior Court as provided in this section. For the purposes of this section, the holders of any bonds or notes of the authority and any trustee acting on behalf of such holders shall be deemed aggrieved persons with respect to any decision of the representative policy board which violates any covenant or other provision of the resolution or resolutions authorizing such bonds or notes. Sec. 14. Subsection (a) of section 1 of special act 03-12 is amended to read as follows (Effective from passage): (a) Notwithstanding any provision of the general statutes or any public or special act, the South Central Connecticut Regional Water Authority, created by special act 77-98, as amended, may sell, lease, assign or otherwise dispose of any class I or class II land, as defined in section 25-37c of the general statutes, upon which a single-family dwelling or barn owned by the South Central Connecticut Regional Water Authority is situated provided (1) such single-family dwelling or barn was so situated prior to January 1, 1976, (2) any underground storage tanks on such property have been removed, (3) the property is not greater than the minimum acreage required to meet zoning requirements plus any allowance necessary for setback allowances and access or egress consistent with local zoning and use requirements, and, if the single-family dwelling or barn is located on class I land, such minimum acreage is met by utilizing class II or class III land, as defined in section 25-37c of the general statutes, to the greatest extent possible, (4) a restrictive covenant that would limit the expansion of the single- family dwelling or barn and restrict any activity or expansion of any Substitute House Bill No. 5277 Special Act No. 24-7 18 of 18 activity that would have a significant adverse [affect] effect on the public water supply is placed on the property, and (5) for class I land, the single-family dwelling or barn has historical significance, as confirmed, in writing, by the Connecticut Trust for Historic Preservation or its successor organization.