Bill Text: CT HB05457 | 2012 | General Assembly | Introduced

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Bill Title: An Act Concerning The Southeastern Council Of Governments And The Southeastern Connecticut Water Authority.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2012-03-12 - Public Hearing 03/16 [HB05457 Detail]

Download: Connecticut-2012-HB05457-Introduced.html

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General Assembly		Raised Bill No. 5457
February Session, 2012		LCO No. 2031
		*02031_______PD_*
Referred to Committee on Planning and Development
Introduced by:
(PD)

AN ACT CONCERNING THE SOUTHEASTERN COUNCIL OF GOVERNMENTS AND THE SOUTHEASTERN CONNECTICUT WATER AUTHORITY.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsections (a) and (b) of section 4 of number 381 of the special acts of 1967, as amended by section 1 of number 206 of the special acts of 1969 and section 1 of public act 02-76, is amended to read as follows (Effective from passage):

[(a) The representative advisory board to the Southeastern Connecticut Water Authority shall consist of two electors from each town within the district who shall be appointed by the board of selectmen or town council, as the case may be, on September 1, 1969, and whose successors shall be so appointed on or before September first biennially thereafter. One of such members of the advisory board from each town shall be appointed by the members of the board of selectmen or town council, as the case may be, of the political party having the greatest representation on such board or council and the other member of said advisory board shall be appointed by the members of the board of selectmen or town council of the political party having the next greatest representation. Nothing in this subsection shall be construed to prohibit any member of the Southeastern Connecticut Regional Council of Governments from serving as a member of the representative advisory board. Members shall serve for a term of two years and until their successors are appointed and have qualified and shall serve without compensation. They shall elect a chairman, a vice-chairman and a secretary and establish such bylaws as they deem necessary. Members of the advisory board shall not vote on any matter before the advisory board other than in person.

(b) The advisory board shall meet at least quarterly with the authority to review the progress and financial condition of the authority, and may, as it deems necessary, call special meetings with the authority to review such progress and financial condition and to discuss issues relating to water supply and the operations of the authority. The advisory board shall establish procedures and policies, jointly with the authority, to govern the basis on which the authority shall coordinate its activities to cooperatively develop the water supply and distribution system necessary for an integrated regional water supply system. The advisory board shall select the certified public accountant to conduct the annual audit of the accounts, books and records of the authority.]

(a) The Southeastern Connecticut Council of Governments shall replace the Representative Advisory Board to the Southeastern Connecticut Water Authority, assuming all of such board's previous responsibilities, and shall serve as the appointing and managing authority of the Southeastern Connecticut Water Authority, providing a direct link back to the municipalities that both the Southeastern Connecticut Council of Governments and Southeastern Connecticut Water Authority serve.

(b) The Southeastern Connecticut Council of Governments shall meet at least biannually to review the activity and progress of the authority, and shall meet quarterly to review the financial condition of the authority. The Southeastern Connecticut Council of Governments shall select the certified public accountant to conduct the annual audit of the accounts, books and records of the authority.

Sec. 2. Section 5 of number 381 of the special acts of 1967, as amended by section 2 of public act 02-76 and section 1 of special act 03-7, is amended to read as follows (Effective from passage):

A corporation known as the "Southeastern Connecticut Water Authority" is created for the purposes, charged with the duties and granted the powers provided in [this act] number 381 of the special acts of 1967. The authority shall be a body corporate and politic. The authority shall consist of seven members who [shall not be members of the advisory board] may be members of the Southeastern Connecticut Council of Governments, all of whom shall be residents of the district, [. Five members shall be appointed directly by a majority of those members of the representative advisory board present and voting at a meeting. The remaining two members shall be appointed by the representative advisory board, subject to the conditions described in this section, from a slate of no fewer than three nominees provided by the Southeastern Connecticut Regional Council of Governments. The term of appointment shall be five years and until their successors are appointed except that of the five members first appointed one shall be appointed for a term of five years, one for a term of four years, one for a term of three years, one for a term of two years and one for a term of one year and the two members selected from nominees provided by the Southeastern Connecticut Regional Council of Governments shall be appointed for terms of four and three years, respectively. Not more than four members of the authority shall be members of the same political party. Vacancies on the authority shall be filled by appointments by the advisory board for the unexpired terms, including the replacement of members nominated by the Southeastern Connecticut Regional Council of Governments by selecting and appointing new members from a slate of nominees provided by the Southeastern Connecticut Regional Council of Governments. Members of the authority may be removed from office by the advisory board for cause. Members of the authority shall receive such compensation for their services as shall be fixed by the advisory board and shall be reimbursed for their necessary expenses incurred in the performance of their duties. Nothing in this section shall be construed to prohibit any member of the Southeastern Connecticut Regional Council of Governments from serving as a member of the authority] as defined in section 3 of number 381 of the special acts of 1967, and who shall be appointed by a majority of those members of the Southeastern Connecticut Council of Governments at a meeting at which two-thirds of the membership of the council are present, for terms of three years until their successors are appointed, except that of the members first appointed two shall be appointed for a term of three years, two shall be appointed for a term of two years, and one shall be appointed for a term of one year. In addition, the Executive Director of the Southeastern Connecticut Council of Governments, or his or her designee, shall serve as a nonvoting, ex-officio member of the authority. Vacancies on the authority shall be filled by the Southeastern Connecticut Council of Governments for the unexpired term in the manner prescribed above. Members of the authority may be removed from office for cause by the Southeastern Connecticut Council of Governments.

Sec. 3. Section 8 of number 381 of the special acts of 1967 is amended to read as follows (Effective from passage):

The authority may employ such persons as it may require for the performance of its duties and may fix and determine their qualifications, duties and compensation. The authority may also from time to time contract for expert professional services. The Southeastern Connecticut Council of Governments, or by delegation its executive committee, shall be authorized to ratify the appointment of the chief executive officer of the authority and any contract for professional services in excess of one hundred thousand dollars.

Sec. 4. Section 13 of number 381 of the special acts of 1967, as amended by section 2 of number 206 of the special acts of 1969 and section 1 of special act 73-133, is amended to read as follows (Effective from passage):

When a city, town, borough, corporation, company, association or person intends to develop for water supply purposes within the district a potential surface reservoir site with an estimated dependable yield of more than five hundred thousand gallons per day, or one or more potential wells having estimated combined yields of more than fifty gallons per minute, except for wells which are within one thousand feet of an existing water main belonging to such city, town, borough, corporation, company, association or person, it shall first declare such intention to the authority and to the Southeastern Connecticut Council of Governments and shall indicate its anticipated water requirements. Within three months of being so notified, the authority shall determine whether or not such water supply development would affect the regional water supply plan of the authority. If in the authority's judgment such plan will not be affected, the authority shall release such potential water supply site for development by such city, town, borough, corporation, company, association or person; otherwise the authority shall promptly select an engineer satisfactory to such city, town, borough, corporation, company, association or person to design and supervise construction of facilities to satisfy such water requirements, construction of which shall be commenced by the authority upon approval of plans by such city, town, borough, corporation, company or person. Failure of the authority to act within the prescribed time limit shall constitute approval for development of the site or well field by the city, town, borough, corporation, company, association or person concerned. Provisions of this section shall not apply to development of a water supply for a single dwelling or for water requirements of less than fifty gallons per minute. For the purpose of section 13 of number 381 of the special acts of 1967, as amended by section 2 of number 206 of the special acts of 1969, the intention to develop one or more wells having estimated yields of fifty gallons per minute shall be presumed if the city, town, borough, corporation, company, association or person (1) commences the development of a well water supply on the basis of studies which indicate a maximum requirement in excess of fifty gallons per minute; or (2) commences construction of two or more dwelling units consisting of, but not limited to, single family or duplex homes, apartments, condominiums or cooperatives, to be served by a single water supply, pursuant to a plan of lots which, together with any adjacent tracts owned or controlled by the same person or persons, contains fifty acres or more. The cost of development of such a well shall be allocated between the Southeastern Connecticut Water Authority and such city, town, borough, corporation, company, association or person in accordance with such regulations as said authority shall adopt.

Sec. 5. Section 14 of number 381 of the special acts of 1967, as amended by section 3 of number 206 of the special acts of 1969 and section 2 of special act 73-133, is amended to read as follows (Effective from passage):

The authority shall have the power: (a) To sue and be sued; (b) to have a seal and alter the same at pleasure; (c) to acquire, in the name of the authority, lease, hold and dispose of personal property or any interest therein for its corporate purposes, including the power to purchase prospective or tentative awards in connection with the exercise of the power of eminent domain granted; (d) to purchase, in the name of the authority, any water supply system or parts thereof situated within or outside the district, except in the town of Lebanon, for the purpose of supplying water for domestic, commercial and public purposes at retail to individual consumers within the district or at wholesale in the manner provided by subdivision (h) of this section. As a means of so acquiring for such purposes and subject to the approval of the public utilities commission, the authority may purchase all of the stock of any existing privately owned water corporation or water company and thereafter such water corporation or water company shall be convenient for the operation of any water supply system developed by the authority, on such terms and conditions as the parties may agree upon, or when necessary or convenient for resale by the authority under the provisions of subdivision (g) of this section; (i) to make bylaws for the management and regulation of its affairs and for the use of its properties and, subject to the provisions of any bond issue, rules for the sale of water and the collection of rents and charges therefor. A copy of such rules and bylaws and all amendments thereto, certified by the secretary of the authority, shall be filed in the office of the secretary of the state; (j) to make contracts and to execute all necessary or convenient instruments, including evidence of indebtedness, negotiable or non-negotiable; (k) to make surveys, soundings and examinations; (l) to borrow money and to issue negotiable bonds or notes and to fund and refund the same and to provide for the rights of the holders of the authority's obligations, subject to the approval of the Southeastern Connecticut Council of Governments; (m) to fix rates and collect charges for the use of the facilities of, or services rendered by, or for any commodities furnished by the authority such as to provide revenues sufficient at all times to pay, as the same shall become due, the principal and interest on the bonds or notes of the authority together with the maintenance of proper reserves, in addition to paying, as the same shall become due, the expense of operating and maintaining the properties of the authority together with proper reserves for depreciation, maintenance and contingencies and all other obligations and indebtedness of the authority, subject to the approval of the Southeastern Connecticut Council of Governments; (n) to enter into cooperative agreements with other water authorities, municipalities, water districts or utility or water supply companies within or without the district for the interconnection of the facilities, exchange or interchange of services and commodities or for any other lawful purposes necessary or desirable to effect the purpose of [this act] number 206 of the special acts of 1969, subject to the approval of the Southeastern Connecticut Council of Governments, such agreements to be binding for a period specified therein; (o) to accept grants, loans or contributions from the United States, the state of Connecticut, or any agency or instrumentality of either of them, or an individual, by request or otherwise, and to expend the proceeds for any purposes of the authority, subject to the approval of the Southeastern Connecticut Council of Governments; (p) to do all things necessary or convenient to carry out the powers expressly given in [this act] number 206 of the special acts of 1969 and including the powers granted by the general statutes to stock corporations except the power to issue stock; (q) at any time after the authority has, upon petition by property owners representing a majority in number and frontage to be assessed for present benefits, authorized the acquisition or construction of a water supply system or portion thereof, the authority may apportion and assess the whole or any portion of the cost upon the lands and buildings in the district which, in its judgment, are especially benefited thereby, and upon the owners of such land and buildings, according to such rules as the authority adopts, subject to the right of appeal as hereinafter provided, and provided no assessment shall be made upon any land and buildings for which a water supply is currently available from any municipal water supply system. Such assessment may include a proportionate share of the cost of any part of the water supply system, including the cost of preliminary studies and surveys, detailing working plans and specifications, acquiring necessary land or property or any interest therein, damage awards, interest charges during construction, legal and other fees, and any other expense incidental to the completion of the work, provided the authority shall not assess for the cost of transmission or feeder mains into which the authority will not permit service connection to be made, or for the cost of any main in excess of the cost of an eight-inch main, except where a larger main is required for the benefit of a particular property or group of properties, against which the authority may then assess the additional costs of such larger mains. THE BASIS FOR THE ASSESSMENT FOR SUCH MAINS SHALL BE DETERMINED BY VOTE OF THE LEGISLATIVE BODY OF THE TOWN WITHIN WHICH THE MAINS ARE LAID. The authority may divide the total territory to be benefited by a water supply system into local districts and may levy assessments against the property benefited in each local district separately. In assessing benefits against property in any local district the authority may add to the cost of the part of the water supply system located in the local district a proportionate share of the cost of any part of the water supply system located outside the local district but deemed by the authority to be necessary or desirable for the operation of the part of the system within the local district. In assessing benefits and apportioning the amount to be raised thereby among the properties benefited, the authority may give consideration to area, frontage, grand list valuation, present or permitted use or classification of benefit properties and any other relevant factors. The authority shall make a reasonable allowance in the case of a property having frontage on more than one street and whenever for any reason the particular situation of any property requires an allowance. Revenue from assessment of benefits shall be used solely for acquisition or construction of the water supply system providing such benefits or for payment of principal of and interest on bonds or notes issued to finance such acquisition or construction. No assessment shall be made against any property in excess of the special benefit to accrue to such property, and the aggregate of all assessments for the assessable portion of the entire water supply system of the authority shall at no time exceed the total construction cost of such assessable portion of such water supply system. In case of a property other than commercial, industrial or institutional which exceeds by more than one hundred percent the size of the smallest lot permitted in the lowest density residential zone allowed under zoning regulations or, in the case of a town having no zoning regulations, a lot size of one acre in area and one hundred fifty feet in frontage, assessment of such excess land shall be deferred until such time as such excess land shall be built upon or a building permit issued therefore or until approval of a subdivision plan of such excess property by the planning commission having jurisdiction, whichever event occurs first, at which time assessment may be made as provided herein. No lien securing payment shall be filed until the property is assessed. No assessment or supplementary assessment shall be made until after a public hearing before the authority at which the owner of the property to be assessed shall have an opportunity to be heard concerning the proposed assessment. Notice of time, place and purpose of such hearing shall be published at least ten days before the date thereof in a newspaper having circulation in the district, and a copy of such notice shall be mailed to the owner of any property to be affected thereby, at least ten days before the date thereof, at such owner's address as shown in the last-completed grand list of the municipality in which such property is located or at any later address of which the authority may have knowledge. A copy of the proposed assessment shall be on file in the office of the authority and in the office of the town clerk of the town in which the property to be assessed is located, and such assessment shall be available for inspection by the public for at least ten days before the date of such hearing. When the authority has determined the amount of the assessment to be levied, it shall file a copy thereof in the office of the authority and shall record a copy thereof in the office of such town clerk and, not later than five days after such filing and recording, shall cause the name to be published in a newspaper having circulation in the district. Such publication shall state the date on which such assessment was filed and that any appeal from such assessment must be taken to the court of common pleas for the county wherein the property is located, within twenty-one days after such filing. Such court may appoint three disinterested persons to appraise the benefits to such property and to make a report of their doings to the court. Such appeal, during the pendency thereof, shall stay all proceedings for the collection of the particular assessment upon which the appeal is predicated. If any assessment is not valid or enforceable for any reason, a new assessment may be made. If any assessment is made which is not sufficient to cover the entire cost of the work to be paid for by such assessment, a supplementary assessment may be made by the authority within six months after final completion of construction against those properties previously assessed, to the end that a sum sufficient to pay the cost of such work may be obtained, provided no such supplementary assessment, together with the original assessment, shall exceed the value of the special benefit to accrue to the property against which the benefit is assessed. Assessments shall be due and payable at such time as is fixed by the authority, provided no assessment shall become due until the work or particular portion thereof for which such assessment was levied has been completed. The authority shall give notice of the date when assessments are due and payable by publication at least twice within a period of fifteen days in a newspaper having circulation in the district. Such notice shall list the streets and describe the area within which are located any properties against which such assessments are due. No assessment shall be due and payable earlier than thirty days after first publication of such notice. The authority may provide for payment of any assessment in substantially equal annual installments, not exceeding twenty, and may provide for interest charges not exceeding six per cent for any deferred payments, provided the last instalment of any assessment shall be due not later than one year prior to the date of the last maturity of any bonds or notes issued by the authority to finance acquisition or construction of any water supply system or portion thereof in respect to which the assessment was levied. Any person may pay any instalment for which he is liable at any time prior to the due date thereof and no interest on any such instalment shall be charged beyond the date of such payment. Any assessment of benefits or any instalment thereof not paid within thirty days after the due date shall be delinquent and shall be subject to interest from such due date at the interest rate and in the manner provided by the general statutes for delinquent property taxes. Each addition of interest shall be collectible as a part of such assessment. Whenever any instalment of an assessment becomes delinquent, all remaining unpaid instalments of such assessment shall also become delinquent. Any unpaid assessment and any interest due thereon shall constitute a lien upon the real estate against which the assessment was levied from the date of such levy. Each such lien may be continued, recorded and released in the manner provided by the general statutes for continuing, recording and releasing property tax liens. Each such lien shall take precedence over all other liens and ecumbrances except taxes and may be foreclosed in the same manner as property tax liens. The authority may by resolution designate any person as collector of water supply system assessments, and the authority may recover any such assessment in a civil action against any person liable therefor. Whenever any person has become delinquent in the payment of any instalment and has paid all such past-due instalments together with any interest or other charges, the authority shall permit such person to pay any remaining instalments without additional penalty, except for subsequent default, in accordance with the original instalment schedule. The authority may establish and revise fair and reasonable charges for connection with a water supply system. The owner of property against which any such connection charge is levied shall be liable for payment thereof. Municipally-owned and other tax-exempt property which uses the water supply system shall be subject to such charges under the same conditions as are the owners of other property. No schedule of such charges for connection with a water supply system shall be established or revised until after a public hearing before the authority at which any parties having an interest in such charges shall have an opportunity to be heard. Notice of the time, place and purpose of such hearing shall be published at least ten days before the date thereof in a newspaper having circulation in the district. A copy of the proposed charges shall be on file in the office of the authority and in the office of the town clerk of the town in which the property being charged is located, and such charges shall be available for inspection by the public for at least ten days before the date of such hearing. When the authority has established or revised such charges, it shall file a copy thereof in the office of the authority and in the office of such town clerk and, not later then five days after such filing, shall cause the same to be published in a newspaper having circulation in the district. Such publication shall state the date on which such charges were filed and the time and manner of paying such charges and shall state that any appeal from such charges must be taken within twenty-one days after such filing. Any person aggrieved by any charge for connection with a water supply system may appeal to the court of common pleas for the county wherein the local district is located. In establishing or revising such charges the authority may classify the property connected or to be connected with the water supply system and may give consideration to any factors relating to the kind, quality or extent of use of any such property or classification of property including anticipated maximum rate of flow to the property; size of service pipe and meter; private fire protection to be provided by the service pipe and appurtenances; and any other factors affecting the cost of rendering water service to the property. The authority may establish minimum charges for connection with a water supply system. Any charge for connection with or for use of a water supply system not paid within thirty days of the due date shall thereupon be delinquent and shall bear interest from the due date at the rate and in the manner provided by the general statutes for delinquent property taxes. Each addition of interest shall be collectible as a part of such connection or use charge. Any such unpaid connection or use charge shall constitute a lien upon the real estate against which such charge was levied from the date it became delinquent. Each such lien may be continued, recorded and released in the manner provided by the general statutes for continuing, recording and releasing property tax liens by the person designated as collector of connection charges. Each such lien shall take precedence over all other liens and ecumbrances except taxes and may be foreclosed in the same manner as a lien for property taxes. The authority may by resolution designate any person as collector of water supply system connection and use charges, and such collector of water supply system connection and use charges may collect such charges in accordance with the provisions of the general statutes for the collection of property taxes. The authority may recover any such charges in a civil action against any person liable therefor. The authority shall have such other rights in connection with the sale of water including the right to discontinue water service for nonpayment of delinquent bills, as its bylaws or regulations shall provide.

Sec. 6. Section 16 of number 381 of the special acts of 1967 is amended to read as follows (Effective from passage):

(a) The authority, subject to review and comment by the Southeastern Connecticut Council of Governments, shall have the power and is authorized from time to time to issue its negotiable bonds for any of its corporate purposes, including incidental expenses in connection therewith, and to secure the payment of the same by a lien or pledge covering all or part of its contracts, earnings or revenues. The authority shall have power from time to time, whenever it deems refunding expedient, to refund any bonds by the issuance of new bonds within the terms of any refunding provisions of its bonds, whether the bonds to be refunded have or have not matured, and may issue bonds partly to refund bonds then outstanding and partly for any of its corporate purposes. Except as may be otherwise expressly provided by the authority, every issue of bond by the authority shall be preferred obligations, taking priority over all other claims against the authority, and payable out of any moneys, earnings or revenues of the authority, subject only to any agreements with the holders of particular bonds pledging any particular moneys, earnings or revenues. Notwithstanding the fact that the bonds may be payable from a special fund, if they are otherwise of such form and character as to be negotiable instruments under the terms of the uniform commercial code, the bonds shall be negotiable instruments within the meaning of and for all the purposes of the uniform commercial code, subject only to the provisions of the bonds for registration. (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, 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 upon sealed bids to the bidder who shall offer the lowest net interest cost to the authority, to be determined by the authority. The notice of sale shall be published at least once, not less than ten nor more than forty days before the date of sale, in a financial newspaper circulated in the state of Connecticut and the city of New York and designated by the authority. The notice shall call for the receipt of sealed bids and shall fix the date, time and place of sale. (c) Any resolution or resolutions authorizing any bonds or any issue of bonds may contain provisions which shall be a part of the contract with the holders of the bonds thereby authorized as to (1) pledging all or any part of the moneys, earnings, income and revenues derived from all or any part of the properties of the authority to secure the payment of the bonds or of any issue of the bonds subject to such agreement with the bondholders as may then exist; (2) the rates, rentals, fees and other charges to be fixed and collected and the amounts to be raised in each year thereby, and the use and disposition of the earnings and other revenues; (3) the setting aside of reserves and the creation of sinking funds and the regulation and disposition thereof; (4) limitations on the right of the authority to restrict and regulate the use of the properties in connection with which such bonds are issued; (5) limitations on the purposes to which, and the manner in which, the proceeds of sale of any issue of bonds may be applied; (6) limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding or other bonds; (7) the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which such consent may be given; (8) the creation of special funds into which any earnings or revenues of the authority may be deposited; (9) the terms and provisions of any trust deed or indenture securing the bonds or under which bonds may be issued; (10) defining the acts or omission to act which shall constitute a default in the obligations and duties of the authority to the bondholders and providing the rights and remedies of the bondholders in the event of such default, including as a matter of right the appointment of a receiver, provided such rights and remedies shall not be inconsistent with the general laws of this state; (11) limitations on the power of the authority to sell or otherwise dispose of its properties; (12) any other matters, of like or different character, which in any way affect the security or protection of the bonds; (13) limitations on the amount of moneys derived from the properties to be expended for operating administrative or other expenses of the authority. (d) It is the intention of the legislature that any pledge of earnings, revenues or other moneys made by the authority shall be valid and binding from the time when the pledge is made; that the earnings, revenues or other moneys so pledged and thereafter received by the authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and that the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the authority irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded. (e) Neither the members of the authority nor any person executing the bonds shall be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof. (f) 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 such bonds shall be cancelled. (g) In the discretion of the authority, the bonds may be secured by a trust indenture by and between the authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company. Such trust indenture may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of any law, including covenants setting forth the duties of the authority in relation to the construction, maintenance, operation, repair and insurance of the properties, and the custody, safeguarding and application of all moneys, and may provide that the properties shall be constructed and paid for under the supervision and approval of consulting engineers. The authority may provide by such trust indenture or other depository for the methods of disbursement thereof, with such safeguards and restrictions as it may determine. All expenses incurred in carrying out such trust indenture may be treated as part of the cost of maintenance, operation and repairs of the properties. If the bonds are secured by a trust indenture, bondholders shall have no authority to appoint a separate trustee to represent them. Notwithstanding any other provisions of [this act] number 381 of the special acts of 1967, any resolution or resolutions authorizing bonds or notes of the authority shall contain a covenant by the authority that it will at all times maintain rates, fees, rentals or other charges sufficient to pay, and that any contracts entered into by the authority for the sale and distribution of water shall contain rates, fees, rentals or other charges sufficient to pay, the cost of operation and maintenance of the properties, the principal of and interest on any obligation issued pursuant to such resolution or resolutions as the same severally become due and payable, and to maintain any reserves or other funds required by the terms of such resolution or resolutions.

Sec. 7. Section 17 of number 381 of the special acts of 1967 is amended to read as follows (Effective from passage):

The authority, subject to review and comment by the Southeastern Connecticut Council of Governments, shall have the power and is authorized to issue negotiable bond anticipation notes and may renew the same from time to time, but the maximum maturity of any such note, including renewals thereof, shall not exceed five years from date of issue of such original note. Such notes shall be paid from any moneys of the authority available therefor and not otherwise pledged, or from the proceeds of the sale of the bonds of the authority in anticipation of which they were issued. The notes shall be issued in the same manner as the bonds and such notes and the resolution or resolutions authorizing the same may contain any provisions, conditions or limitations which the bonds or a bond resolution of the authority may contain. Such notes may be sold at public or private sale at not less than par and shall bear interest at a rate not exceeding five per cent per annum. Such notes shall be as fully negotiable as the bonds of the authority.

Sec. 8. Section 18 of number 381 of the special acts of 1967, as amended by section 3 of public act 02-76, is amended to read as follows (Effective from passage):

(a) The authority, subject to any limitation on the amount of revenues available to be expended for such purposes, and subject to engineering and financial feasibility studies, shall plan, operate and maintain a water supply system and, where necessary, construct water supply systems for the Southeastern Connecticut Planning Region. In no event is [this act] public act 02-76 to be construed as requiring the authority to construct a water supply system in any area where expected revenues would not meet the expected expenditure for construction and operation of such a water supply system. [, provided, on the written request of the city council of the city of Groton, for the provision of water, said authority shall immediately proceed to establish a source of water supply for said city which will provide not less than four million gallons of water per day and shall connect such source to the water supply system of said city, the cost of such establishment and connection to be borne by said authority.]

(b) Notwithstanding any provision of subsection (a) of this section or any other provision of any special act or general statute, the authority shall, not later than July 1, 2003, either (1) amend or revise such authority's last water supply plan for the Southeastern Connecticut Planning Region, or (2) adopt a new water supply plan for the Southeastern Connecticut Planning Region. The cost of such amendment, revision or adoption shall not exceed one hundred fifty thousand dollars. In the amendment, revision or adoption of any such plan pursuant to this subsection, the authority shall conduct an analysis of the potential to more fully interconnect and integrate the Southeastern Connecticut Planning Region water supply system. The authority shall submit for review any amendments, revisions or plan developed pursuant to this subsection to the water planning council established pursuant to public act 01-177, as amended by [this act] public act 02-76.

Sec. 9. Section 27 of number 381 of the special acts of 1967 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 [representative advisory board] Southeastern Connecticut Council of Governments. A copy of the audit shall be delivered to the municipalities within the district, [and to the public utilities commission] the Southeastern Connecticut Council of Governments and the Public Utilities Regulatory 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 advisory board] Southeastern Connecticut Council of Governments shall publish such statement at the expense of the authority. If the authority fails to make such an audit, the auditor or accountant designated by the [representative advisory board] Southeastern Connecticut Council of Governments shall examine, at the expense of the authority, the accounts and books of the authority, including its receipts, disbursements, contracts, leases, sinking funds, investments and any other matters relating to its finances, operation and affairs. (b) The attorney general shall have the right to examine the books, accounts and records of the authority.

Sec. 10. Section 33 of number 381 of the special acts of 1967, as amended by section 5 of number 206 of the special acts of 1969 and section 2 of special act 73-95, is amended to read as follows (Effective from passage):

The sum of two hundred fifty thousand dollars is appropriated for the purpose of providing working capital and organizational funds for the authority. Upon the effective date of sections 1 to 12, inclusive, of this act, the sum of one hundred thousand dollars is appropriated to the Southeastern Connecticut Council of Governments. Such appropriation may be used for administrative costs, for legal and professional consultant services and for other organizational purposes.

Sec. 11. Number 381 of the special acts of 1967, as amended by section 1 of special act 73-64, is amended to read as follows (Effective from passage):

(a) There shall be established a technical advisory board to the Southeastern Connecticut Water Authority and the [representative advisory board of said authority] Southeastern Connecticut Council of Governments. Said technical advisory board shall advise and assist the authority and [representative board] the council in arriving at technical consensus on future regional water requirements, assist in the establishment and implementation of long-range programs, and provide technical advice in the consideration on major technical projects, the acquisition of utilities, utility operation, rate exchanges and in other appropriate matters.

(b) Each town in the Southeastern Connecticut Water Authority district, having a water waste water utility or such other board or commission having functions directly relating to water supply may appoint one member. This member shall serve at the pleasure of the appointing municipality. Such member shall elect a chairman who shall serve for a term of one year.

(c) Technical advisory board members may attend any and all meetings of the Southeastern Connecticut Water Authority, the [representative advisory board] Southeastern Connecticut Council of Governments or committees thereof. Such members shall offer such advice as may be requested or as they shall deem appropriate. They shall, in [liason] liaison with the [representative advisory board members of their respective communities] Southeastern Connecticut Council of Governments, report to their municipalities any matters affecting those municipalities. Technical advisory board members shall be representatives of their respective communities and shall be governed by instructions of their municipalities. Technical advisory board members shall serve in an advisory capacity and have no vote as to the decisions of the Southeastern Connecticut Water Authority or the [representative advisory board] Southeastern Connecticut Council of Governments.

This act shall take effect as follows and shall amend the following sections:
Section 1	from passage	Number 381 of the special acts of 1967, Sec. 4(a) and (b)
Sec. 2	from passage	Number 381 of the special acts of 1967, Sec. 5
Sec. 3	from passage	Number 381 of the special acts of 1967, Sec. 8
Sec. 4	from passage	Number 381 of the special acts of 1967, Sec. 13
Sec. 5	from passage	Number 381 of the special acts of 1967, Sec. 14
Sec. 6	from passage	Number 381 of the special acts of 1967, Sec. 16
Sec. 7	from passage	Number 381 of the special acts of 1967, Sec. 17
Sec. 8	from passage	Number 381 of the special acts of 1967, Sec. 18
Sec. 9	from passage	Number 381 of the special acts of 1967, Sec. 27
Sec. 10	from passage	Number 381 of the special acts of 1967, Sec. 33
Sec. 11	from passage	Number 381 of the special acts of 1967

Statement of Purpose:

To replace the Representative Advisory Board to the Southeastern Water Authority with the Southeastern Connecticut Council of Governments, to give said Council additional supervisory powers and to make technical and conforming changes.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]