South Central Regional Water Authority Land Sales

You asked what power the South Central Regional Water Authority has to sell land.

The South Central Regional Water Authority was created in 1977 by act of the General Assembly to supply water and protect watershed and other lands consistent with its water supply mission. As intended, the authority acquired the New Haven Water Company, its plant and about 25,000 acres of land in 1980.

The special act establishing the authority empowers it to buy, sell, and lease property, but also places restrictions on sales or transfers, including requiring a three-fourths vote of its Representative Policy Board for transactions exceeding 20 acres. The law requires the authority to set standards for categorizing its lands, and to establish a property disposition policy. The board cannot approve sales or transfers unless, following a public hearing, it finds that adverse environmental effects are unlikely, the action is in the public interest, and the transaction conforms to the authority's policies and standards. In most cases a detailed statement of environmental impacts must be prepared. The Department of Environmental Protection (DEP) and the municipality where the property is located have a first purchase option.

As required by law, standards for categorizing authority property and a land disposition policy were developed as part of a land use plan adopted in 1983. The plan also contains detailed land use evaluations of each of the authority's landholdings. A supplement to the plan was adopted in 1988. A revised plan was published in February 1994 and recently rejected by the board. The plan makes water supply protection the principal factor guiding land use; establishes goals which deal with water supply, resource management, and recreation; and creates five land use categories, some of which dictate protection of the land and others which allow development.

The authority's land disposition policy reiterates and expands upon the statutory restrictions on sales and transfers. As required by the General Statutes and Department of Public Health and Addiction Services regulations, lands closest to watersheds may not be sold. Under the policy, sales of other lands is an option when sales meet land use goals and policies and do not adversely affect customers or municipalities.

The South Central Regional Water Authority was created in 1977 by special act of the General Assembly primarily for water supply purposes and also, to the degree consistent with providing water, for "advancing the conservation and compatible recreational use of land held by the authority" (SA 77-98). The authority was also authorized to acquire any existing water supply system in its water supply district, and, as intended, acquired the former New Haven Water Company in 1980. The district embraces Bethany, Branford, Cheshire, East Haven, Guilford, Hamden, Killingworth, Madison, Milford, New Haven, North Branford, North Haven, Orange, Prospect, West Haven and Woodbridge.

The act was passed over Governor Grasso's veto. Although she found the concept of the authority a sound one, she was concerned that the district could expand into additional towns without legislative approval. She also objected to inadequate state representation considering that the authority's tax exempt status would result in a state revenue loss of over $1 million and the state might insure authority borrowing. In 1978 the authority's act was amended to (1) include a gubernatorial appointment to the authority's Representative Policy Board, (2) specify that the authority is a political subdivision of the state, (3) exempt the authority from taxes on receipts and earnings, and (4) make other changes (SA 78-24).

The regional water authority's affairs are governed by a representative policy board composed of a member of each district municipality and one gubernatorial appointment. Voting power is weighted according to a formula based on each municipality's proportion of customers and authority-owned land. No member has more than 16 of the total 101 weighted votes. Among other things, the board appoints a five member authority which acts in the nature of an executive committee running the day to day operations of the district. The board also approves the chief executive officer appointed by the authority, the acquisition of supply systems and construction projects in excess of $1 million, rates and charges established by the authority, and the issuance of bonds. The authority's five members must be district residents who are not members of the board. They serve for five-year staggered terms.

The law empowers the authority to acquire, hold, and dispose of real property "which the authority determines to be necessary or convenient." It is also authorized "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."

The law requires the authority to develop standards for categorizing its lands by suitability for various uses. These categories include land that is surplus for water supply and desirable for open space and recreation. The authority must also develop real property disposition procedures that identify sales or transfers unlikely to have a significant effect on the environment. The authority is forbidden to sell or transfer real property or interests or rights in real property, except for access or utility purposes, and to develop property except for water supply or public recreational use without approval of the Representative Policy Board. For sale or transfer of parcels of 20 acres or less, a majority of weighted votes of all members is required; for those exceeding 20 acres, three-fourths. The board cannot approve a sale or transfer unless, following a public hearing, it determines that the action:

1. conforms to the authority's standards and policies;

2. is not likely to adversely affect the environment, especially water supply issues; and

3. is in the public interest considering, among other factors, financial effects on authority customers and the host municipality.

Each request for approval by the board must be accompanied by an evaluation containing:

1. a property description, including a description of the nearby environment, watershed function, and cost of maintaining the property in its current use;

2. a statement that the proposed action conforms to the authority's land classification standards and disposition policies;

3. a detailed statement of the environmental impact of the proposed action and, if appropriate, any alternatives; and

4. a summary of the authority's final evaluation and recommendation.

The detailed statement of environmental impact must consider effects on water supply purity and adequacy, the relationship of the proposed action to existing land use plans, unavoidable adverse environmental commitments of resources which would be involved if the proposed action were implemented, and any proposed mitigation measures to minimize adverse environmental effects. A preliminary assessment of environmental impact may be submitted in lieu of the detailed statement where a sale or transfer is identified in the land use standards and disposition policies as being “unlikely to have any significant effect on the environment.” Based on the preliminary assessment, the authority's Representative Policy Board may waive or modify requirements for the detailed statement.

At least 60 days before the public hearing, the Representative Policy Board must submit the environmental evaluation to the Department of Public Health and Addiction Services, the Office of Policy and Management, the relevant regional planning agency, the chief executive officer of the town where the property is located, and other appropriate agencies. The evaluation must be available for public inspection. The board's decision must be published in a newspaper of general circulation in the district and copies must be filed with the town clerk of each municipality in the district.

Once a sale or transfer of land has been approved by the board, the authority must notify the commissioner of the Department of Environmental Protection (DEP) and the municipality where the property is located by certified mail of its intention to sell or transfer the property and the terms of the transaction. Within 90 days, the town or city or the DEP may notify the authority that it wants to exercise its statutory right to acquire the property. The municipality's right is superior to that of the state. Failure to give notice or a notice that the municipality or DEP are not interested waives the statutory right of acquisition. The authority must sell the property to the municipality or the state within 18 months after it first notified them. If the parties cannot agree on a price, the municipality or state can use an eminent domain procedure. Failure to acquire the property or proceed by eminent domain within 18 months of notice waives the right to acquire. If the authority later proposes to sell or transfer the property at a lower price or with fewer restrictions than when offered to the municipality or state it must notify them and again give them the option of acquiring the parcel subject to the same procedures as in the original offer.

The requirement that property be offered to the state or municipalities does not apply where property is sold or transferred to another utility. The proceeds of any sale or transfer must be used for capital improvements to remaining property, property acquisition, or debt retirement.

The authority owned 24,227 acres in 1993, a decline from 25,265 a decade earlier. Currently 10% of the land is covered by reservoirs, 86% is forested, and the remainder occupied by water supply structures, upstream ponds, power lines, and leased farmland or playing fields. There are 19 houses and other buildings that are rented, 167 miles of authority-maintained roads and forestry trails, and 30 miles of blue blazed trails maintained by the Connecticut Forest and Park Association.

As noted above, the special act creating the authority directed it to develop standards for categorizing the authority's lands by use, and a land disposition policy. In 1983 the authority adopted a land use plan which established general standards and policies for land use, categories of land use, and land disposition and acquisition policies (copy attached). The bulk of the plan contains detailed land use plans for each of the authority's landholdings. These detailed plans address water supply, watershed characteristics, history, and planned land uses complete with maps, statistics, and photographs. The landholdings are designated North Branford, Saltonstall, Mill River, West River, Maltby, and North Cheshire well field. There are also sections on nonwater supply lands and miscellaneous parcels.

The authority approved a supplement to its land use plan in 1988 to reflect 15 amendments, “mostly to expand recreational uses or to make minor changes in the boundaries for development uses.” A major updating of the 1983 plan was completed in February of 1994 which, according to the authority, is designed to reflect “changes of ownership and uses of authority landholdings and our present plans for the future use of these lands.” This update was rejected by the representative policy board on June 6, 1994. The principal reason for rejection was a new policy that called for the authority to conserve a majority of its land that can be sold under state law (Class II and Class III). Several state legislators, local officials and conservation groups expressed concern that this goal could allow the authority to sell up to 49% of the land.

Protection of drinking water is the principal standard guiding the land use plan, and the authority has categorized lands based on their importance for doing so under the statutory classification system administered by the Department of Health and Addiction Services (CGS § 25-37c). Within the limitations of providing water, the land uses are based on the land's natural features and “its suitability to meet the needs of the region and its local communities.” The following are the authority's goals guiding land use planning:

1. to ensure an adequate supply of pure drinking water at reasonable cost;

2. to protect outstanding natural and historical features;

3. to reserve land for the production of timber, cultivation of agricultural crops, and conservation of wildlife;

4. to manage nonrenewable natural resources judiciously;

5. to match regional and local recreational and open space needs with land capabilities;

6. to foster use of the land for education and research;

7. to promote the development at appropriate locations of special institutions and facilities that will serve regional and local needs;

8. to structure recreational activities so that they produce revenues in excess of costs; and

9. to provide sufficient flexibility to accommodate unanticipated future needs by exercising caution in committing land to irreversible uses.

The authority divided its lands into five categories and established policies to guide the use of each.

1. The Water Supply and Source Protection category of lands are to be used as necessary for construction of filtration plants, water storage tanks, pumping stations, wells, dams, tunnels, and other facilities needed for water supply.

2. The Preservation category includes “outstanding” natural and historic features to be protected to the extent compatible with water supply objectives.

3. The Recreation and Education category lands recognize regional and local needs for recreation, open space, and educational uses with emphasis on recreational areas accessible from urban centers.

4. The Natural Resource Development and Conservation category provides economic forest management, prime farmland conservation, and mineral excavation that does not cause unacceptable adverse affects.

5. The Other Land Development category lands have potential for wind, hydro, and photovoltaic power generation; institutions; and residential, business, or commercial development.

The authority's land disposition policy reiterates statutory limitations and expands on them. Thus, the policy forbids sale, lease, or assignment of the land closest to water supplies (Class I). Disposition of other lands remains an option when the parcels meet the land use goals and policies, and sale or transfer does not adversely affect customers or municipalities. Consideration is given to local planning and zoning, and the disposition must comply with state laws. There is a preference for leases over sales. Priority is given to those who exchange land more valuable for water supply protection, or goods and services that will advance authority goals and purposes.

The policy reiterates the statutory requirement for a detailed statement of environmental impact and specifies dispositions unlikely to have any significant effect such as preservation of open space and historical sites, recreation involving minimal land disturbance, forest management, continuing existing uses, enlargement of adjoining residential lots not including major structural facilities, and research and educational activities not requiring construction of facilities or significant landscape alterations. The policy restates the statutory requirement of giving towns and the state first refusal in acquiring unimproved land.

Watershed land that is not Class I or is within 150 feet of a distribution reservoir or a stream that enters it will not be sold to private developers unless identified in the plan. Off- watershed land sold to private developers is limited to land without value for water supply, that does not contribute to control of water supply lands, has no foreseeable usefulness to accommodate a district need, and does not contribute to consolidation of efficiently manageable tracts.