Full Text of SB0280 102nd General Assembly
SB0280enr 102ND GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Municipal Code is amended by | 5 | | adding Division 135.5 in Article 11 as follows: | 6 | | (65 ILCS 5/Art. 11 Div. 135.5 heading new) | 7 | | DIVISION 135.5. REGIONAL WATER COMMISSIONS | 8 | | (65 ILCS 5/11-135.5-1 new) | 9 | | Sec. 11-135.5-1. References to Division. This Division may | 10 | | be referred to as the Regional Water Commissions Act. | 11 | | (65 ILCS 5/11-135.5-5 new) | 12 | | Sec. 11-135.5-5. Findings. The General Assembly finds | 13 | | that: | 14 | | (1) It is necessary and in the public interest to help | 15 | | assure a sufficient and economic supply of a source of | 16 | | water of suitable quality within those areas of this State | 17 | | that are dependent on ground water supply from portions of | 18 | | the Cambrian-Ordovician aquifer as well as shallow | 19 | | aquifers, and where those aquifers are expected not to be | 20 | | able to provide a sufficient supply of water or water of | 21 | | suitable quality to one or more municipalities which may |
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| 1 | | be located in more than a single county, and where, | 2 | | because of economic development and population growth and | 3 | | proximity to large urban centers, the health, safety, and | 4 | | welfare of the residents is threatened by the continuing | 5 | | reduction in the amount of ground water and quality of | 6 | | ground water that can be obtained from the aquifers. | 7 | | (2) Because of a need to provide such municipalities a | 8 | | continuing, available, and adequate source and supply of | 9 | | water on an economically viable basis, it is necessary and | 10 | | desirable to establish a different structure for | 11 | | municipalities in the affected region to jointly establish | 12 | | a source of water supply and the necessary waterworks and | 13 | | other supporting facilities as needed to provide a | 14 | | reliable, sustainable, and high-quality source of water on | 15 | | a cost-effective basis. | 16 | | (3) It is not the intent of the General Assembly to | 17 | | interfere with the structure and operation of other water | 18 | | commissions and county water commissions already existing | 19 | | around the State on the effective date of this amendatory | 20 | | Act of the 102nd General Assembly or to interfere with the | 21 | | power of municipalities to provide for the retail | 22 | | distribution of water to its residents or the customers of | 23 | | its water systems. | 24 | | (4) It is in the State's best interest to provide for a | 25 | | sufficient and economic supply of water to such areas. |
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| 1 | | (65 ILCS 5/11-135.5-10 new) | 2 | | Sec. 11-135.5-10. Regional water commissions. | 3 | | Municipalities may enter into joint efforts to acquire, | 4 | | develop, and operate a waterworks system or a common source of | 5 | | supply of water, or both, through intergovernmental | 6 | | cooperation in a regional water commission as provided in this | 7 | | Division. | 8 | | (65 ILCS 5/11-135.5-15 new) | 9 | | Sec. 11-135.5-15. Establishment of commission; members; | 10 | | initial costs and funding. | 11 | | (a) Establishment of commission. Two or more | 12 | | municipalities, at least one of which is located in whole or in | 13 | | part in the county of Cook, Kane, Kendall, Lake, McHenry, or | 14 | | Will and has 140,000 or more inhabitants at the time of | 15 | | establishment of a regional water commission, excluding cities | 16 | | of 500,000 or more inhabitants, may acquire, either by | 17 | | purchase or construction, a waterworks system or a common | 18 | | source of supply of water, or both, and may operate jointly a | 19 | | waterworks system or a common source of supply of water, or | 20 | | both, and improve and extend the same, as provided in this | 21 | | Division. The municipality meeting the requirement to have | 22 | | 140,000 or more inhabitants as required by this paragraph must | 23 | | have attained that population as of the effective date of this | 24 | | amendatory Act of the 102nd General Assembly. | 25 | | The corporate authorities of the municipalities desiring |
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| 1 | | to avail themselves of the provisions of this Division shall | 2 | | establish a regional water commission by adopting an ordinance | 3 | | determining and electing to acquire and operate jointly a | 4 | | waterworks system or a common source of supply of water, or | 5 | | both, as the case may be, and approving an intergovernmental | 6 | | agreement among the municipalities establishing the regional | 7 | | water commission. This agreement may be amended at any time | 8 | | upon the adoption of concurring ordinances by the corporate | 9 | | authorities of all member municipalities. | 10 | | (b) Addition or withdrawal of members; dissolution. The | 11 | | agreement may provide for additional municipalities to join | 12 | | the commission upon adoption of an ordinance by the corporate | 13 | | authorities of the joining municipality and, upon such | 14 | | consents, conditions, and approvals of the board of | 15 | | commissioners and of existing member municipalities as shall | 16 | | be provided in the agreement. The agreement shall provide the | 17 | | manner and terms on which a municipality may withdraw from | 18 | | membership in the commission and on which the commission may | 19 | | terminate and dissolve in whole or in part. | 20 | | (c) Filing of agreement. Promptly upon entering into the | 21 | | agreement or any amendment to it, a copy of such agreement or | 22 | | amendment shall be filed in the office of the Secretary of | 23 | | State. Promptly upon the addition or withdrawal of a | 24 | | municipality, or, upon the dissolution of the commission, that | 25 | | fact shall be certified by an officer of the commission to the | 26 | | Secretary of State. |
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| 1 | | (d) Development costs. A municipality whose corporate | 2 | | authorities adopted an ordinance and approved an | 3 | | intergovernmental agreement to acquire and operate jointly a | 4 | | waterworks system or a common source of supply of water, or | 5 | | both, as the case may be, under the provisions of this | 6 | | Division, may from time to time pay, advance, or obligate | 7 | | itself to the commission to bear a proportionate share of the | 8 | | development costs, including principal and interest, of any | 9 | | project proposed by the commission, including plans, | 10 | | feasibility reports, and engineering, even if the project is | 11 | | never constructed or water is never supplied by the commission | 12 | | to such municipality. | 13 | | Whenever the corporate authorities of a municipality | 14 | | determine that the municipality will pay, advance, or be | 15 | | obligated for its proportionate share of development costs as | 16 | | provided in this subsection, they shall adopt an ordinance | 17 | | declaring their intention that the municipality will do so, | 18 | | fix the maximum amount of the municipality's share of the cost | 19 | | the municipality proposes to pay or that the municipality will | 20 | | advance or to obligate the municipality for, the period over | 21 | | which it is proposed to pay the obligation (not exceeding 10 | 22 | | years), and the maximum amount to be paid annually, if such | 23 | | obligation is to be paid in installments. The time of payment | 24 | | of any such installment obligation may be extended for a | 25 | | period not exceeding 10 years from the final maturity date of | 26 | | the original obligation. On and after the date such ordinance |
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| 1 | | becomes effective, the municipality shall include an amount | 2 | | sufficient to pay the annual installments of its obligation | 3 | | each year in the next succeeding appropriation ordinances. The | 4 | | commission may require that if any such municipality whose | 5 | | corporate authorities determined to pay, to advance, or to | 6 | | obligate the municipality to the commission for development | 7 | | costs defaults in such payments, advances, or obligations, | 8 | | then the remaining municipalities whose corporate authorities | 9 | | have determined to pay, to advance, or to obligate the | 10 | | respective municipalities to the commission for development | 11 | | costs will be required to pay for all or a portion of the | 12 | | payments, advances by, or obligations of the defaulting | 13 | | municipality. No prior appropriation shall be required for the | 14 | | corporate authorities of a municipality to authorize the | 15 | | payments, advances, or obligations herein provided for. | 16 | | Whenever the corporate authorities of a municipality have | 17 | | obligated the municipality for development costs as herein | 18 | | provided and after the effective date of the ordinance under | 19 | | which the municipality became obligated for a specific amount | 20 | | for development costs of a project and after approval of such | 21 | | obligation by the commission, the commission is authorized to | 22 | | borrow funds temporarily for payment of such development costs | 23 | | in advance of permanent financing. The commission may from | 24 | | time to time and pursuant to an appropriate ordinance or | 25 | | resolution borrow money and issue its interim notes to | 26 | | evidence borrowings for such purpose, including all necessary |
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| 1 | | and incidental expenses in connection therewith. | 2 | | An ordinance or resolution authorizing the issuance of | 3 | | such notes shall describe the project and the development | 4 | | costs to be undertaken and specify the principal amount, rate | 5 | | of interest as authorized under Section 2 of the Bond | 6 | | Authorization Act, and the maturity date, which shall coincide | 7 | | with the due date of the obligations or the installments | 8 | | thereof incurred by the respective municipalities pursuant to | 9 | | this Section not, however, to exceed 10 years from date. | 10 | | Contemporaneously with the issuance of revenue bonds under | 11 | | Section 11-135.5-30, all outstanding interim notes issued for | 12 | | development costs of a project though they have not then | 13 | | matured shall be paid, both principal and interest to date of | 14 | | payment, from funds derived from the sale of revenue bonds for | 15 | | the permanent financing of any such project for which interim | 16 | | notes may have been issued and such interim notes shall be | 17 | | surrendered and cancelled, or, in the alternative, the | 18 | | commission may determine to pay such interim notes out of | 19 | | receipts from other sources available to the commission, | 20 | | including grants and loans. | 21 | | Whenever a member municipality has incurred development | 22 | | costs for a project and has advanced funds or otherwise | 23 | | obligated itself for the payment of such costs, the commission | 24 | | is authorized to accept assignment of such debt instruments | 25 | | and the payment obligations thereunder and to thereafter make | 26 | | all necessary payments to meet such obligations out of |
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| 1 | | receipts from other sources available to the commission, | 2 | | including grants and loans. | 3 | | As used in this subsection, "development costs" means the | 4 | | costs of development of a project, including debt incurred and | 5 | | principal and interest payments, whether incurred by the | 6 | | commission or a member municipality. | 7 | | (e) Construction and operating costs. A municipality, the | 8 | | corporate authorities of which adopted an ordinance and | 9 | | approved an intergovernmental agreement to acquire and operate | 10 | | jointly a waterworks system or a common source of supply of | 11 | | water, or both, as the case may be, under the provisions of | 12 | | this Division, may from time to time pay, advance, or obligate | 13 | | itself to the commission to bear a proportionate share of the | 14 | | construction and operating costs of any project proposed by | 15 | | the commission. | 16 | | Whenever the corporate authorities of a municipality | 17 | | determine that the municipality will pay, advance, or be | 18 | | obligated for its proportionate share of construction or | 19 | | operating costs as above provided, they shall adopt an | 20 | | ordinance declaring their intention to do so, fix the maximum | 21 | | amount of the municipality's share of the cost it proposes to | 22 | | pay, to advance, or to obligate itself for, fix the period over | 23 | | which it is proposed to pay the obligation, and state the | 24 | | maximum amount to be paid annually, if such obligation is to be | 25 | | paid in installments. On and after the date such ordinance | 26 | | becomes effective, the municipality shall include an amount |
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| 1 | | sufficient to pay the annual installments of its obligation | 2 | | each year in the next succeeding appropriation ordinances. The | 3 | | commission may require that if any such municipality whose | 4 | | corporate authorities determined that the municipality will | 5 | | pay, advance, or be obligated to the commission for | 6 | | construction or operating costs defaults in such payments, | 7 | | advances, or obligations, then the remaining municipalities | 8 | | whose corporate authorities have determined that the | 9 | | municipality will pay, advance, or be obligated to the | 10 | | commission for construction or operating costs will be | 11 | | required to pay for all or a portion of the payments, advances | 12 | | by, or obligations of the defaulting municipality. No prior | 13 | | appropriation shall be required for the corporate authorities | 14 | | of a municipality to authorize the payments, advances, or | 15 | | obligations herein provided for. | 16 | | Whenever a municipality, through its corporate | 17 | | authorities, has paid, advanced, or obligated the municipality | 18 | | for development, construction, or operating costs as herein | 19 | | provided, the commission may contract with the municipality, | 20 | | on such terms as may be agreed, for the repayment to the | 21 | | municipality by the commission of any payment or advance made | 22 | | by the municipality to the commission and to charge, in | 23 | | addition to all other charges and rates authorized under this | 24 | | Division, such rates and charges for water sold by the | 25 | | commission as shall be necessary to provide for such | 26 | | repayment. In addition, any payment or advance of such costs |
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| 1 | | made by a municipality pursuant to this Section may be repaid | 2 | | by the commission to the municipality from the proceeds of | 3 | | revenue bonds authorized to be issued by the commission | 4 | | pursuant to this Division or, in the alternative, the | 5 | | commission may determine to pay all or part of such amounts out | 6 | | of receipts from other sources available to the commission, | 7 | | including grants and loans. | 8 | | Whenever a member municipality has incurred construction | 9 | | and operating costs for a project and has advanced funds or | 10 | | otherwise obligated itself for the payment of such costs, the | 11 | | commission is authorized to accept assignment of such debt | 12 | | instruments and the payment obligations thereunder and to | 13 | | thereafter make all necessary payments to meet such | 14 | | obligations from the proceeds of revenue bonds authorized to | 15 | | be issued by the commission pursuant to this Division or, in | 16 | | the alternative, the commission may determine to pay all or | 17 | | part of such amounts out of receipts from other sources | 18 | | available to the commission, including grants and loans. | 19 | | As used in this subsection, "construction and operating | 20 | | costs" means the costs of construction and operation of a | 21 | | project, including debt incurred and principal and interest | 22 | | payments, whether incurred by the commission or a member | 23 | | municipality. | 24 | | (f) Commission facilities. A waterworks system or a common | 25 | | source of supply of water, or both, purchased or constructed | 26 | | by the commission: (1) may be located within or without the |
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| 1 | | corporate limits of any member municipality; (2) may include, | 2 | | or may consist of, without limitation, facilities for | 3 | | receiving, storing, and transmitting water from any source for | 4 | | supplying water to member municipalities and other purchasers | 5 | | of water from the commission; and (3) may include, without | 6 | | limitation, facilities that are developed, acquired, | 7 | | constructed, extended, or improved by the commission that may | 8 | | at any time be owned by another unit of local government if | 9 | | such facilities will serve the waterworks system or provide a | 10 | | common source of supply of water for the commission. | 11 | | (65 ILCS 5/11-135.5-20 new) | 12 | | Sec. 11-135.5-20. Board of commissioners. | 13 | | (a) Appointment of commissioners. Upon the adoption of an | 14 | | ordinance and intergovernmental agreement by the corporate | 15 | | authorities of a municipality under this Division, the mayor | 16 | | or president, with the approval of the corporate authorities, | 17 | | shall appoint a commissioner. | 18 | | (b) Commission. The commissioners so appointed by each of | 19 | | the municipalities shall constitute a commission and a | 20 | | municipal corporation and a public body politic and corporate | 21 | | with the powers and duties specified in this Division. The | 22 | | corporate name of the commission and its duration shall be | 23 | | provided in the agreement, and in such name the commission may | 24 | | contract and be contracted with and sue and be sued. The | 25 | | commissioners shall be collectively referred to as a board of |
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| 1 | | commissioners. | 2 | | (c) Term; qualifications; compensation; bonds. Each | 3 | | commissioner appointed by a mayor or president shall be the | 4 | | mayor or president or an elected member of the corporate | 5 | | authorities of the municipality from which the appointment is | 6 | | made. The agreement establishing the commission shall specify | 7 | | the period during which a commissioner shall hold office and | 8 | | may provide for the appointment of alternate commissioners | 9 | | from member municipalities. No commissioner may receive any | 10 | | compensation for serving as commissioner. Each commissioner | 11 | | shall furnish a bond for the faithful performance of that | 12 | | commissioner's official duties. This bond shall not be less | 13 | | than $5,000 and its costs shall be paid by the commission. | 14 | | (d) Removal; prohibited interests. Each commissioner may | 15 | | be removed by the corporate authorities of the municipality | 16 | | from which the commissioner was appointed for any cause for | 17 | | which any municipal officer may be removed. No commissioner or | 18 | | employee of the commission and no mayor, president, member of | 19 | | the corporate authorities, or employee of any of the | 20 | | municipalities shall be interested, directly or indirectly, in | 21 | | any contract or job of work or materials, or the profits | 22 | | thereof, or services to be performed for or by the commission. | 23 | | (e) Violations. A violation of this Section is a Class C | 24 | | misdemeanor. A conviction is cause for the removal of a person | 25 | | from office or employment. |
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| 1 | | (65 ILCS 5/11-135.5-25 new) | 2 | | Sec. 11-135.5-25. Board organization and powers. | 3 | | (a) Organization of board. A commission shall organize by | 4 | | electing a chair from among its own members and shall elect | 5 | | persons, who need not be commissioners, to such other offices | 6 | | as shall be designated in the agreement. It shall adopt its own | 7 | | bylaws, rules, and regulations and provide for its meetings. | 8 | | The commission has full and complete supervision, management, | 9 | | and control of the waterworks system or the common source of | 10 | | supply of water, or both, as provided in the agreement and | 11 | | ordinances for acquiring and operating the same, and in their | 12 | | maintenance, operation, and extension. The board of | 13 | | commissioners shall determine the general policy of the | 14 | | commission, shall approve the annual budget, shall make all | 15 | | appropriations (which may include appropriations made at any | 16 | | time in addition to those made in any annual appropriation | 17 | | document), shall approve all contracts for the purchase or | 18 | | sale of water, shall adopt ordinances or resolutions providing | 19 | | for the issuance of bonds or notes by the commission, shall | 20 | | adopt its bylaws, rules, and regulations, and shall have such | 21 | | other powers and duties as may be prescribed in the agreement. | 22 | | Such agreement may further specify the voting and approval | 23 | | requirements for actions regarding the commission's powers and | 24 | | duties, including those powers and actions of the commission | 25 | | which shall be authorized only upon votes of greater than a | 26 | | majority of all commissioners or only upon consents of the |
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| 1 | | corporate authorities of a certain number of member | 2 | | municipalities, or both. | 3 | | The agreement may provide for the establishment of a | 4 | | technical advisory committee to consist of a municipal | 5 | | employee member from each member municipality as designated by | 6 | | ordinance or other official action, from time to time by the | 7 | | corporate authorities of the member municipality, and having | 8 | | the qualifications as prescribed in the agreement, and also | 9 | | may provide for such functions and duties of the committee as | 10 | | will support the efficient administration and operation of the | 11 | | commission. | 12 | | The board of commissioners may establish other committees | 13 | | from time to time, consisting of either members of the board or | 14 | | members who are municipal employees from each member | 15 | | municipality, in order to support the efficient administration | 16 | | and operation of the commission. | 17 | | (b) Water contracts to acquire water supply. A commission | 18 | | may contract to acquire a supply of water on such terms and | 19 | | conditions as it finds in the best interests of the commission | 20 | | for a period not exceeding 101 years. A commission may | 21 | | contract with any person, corporation, political subdivision, | 22 | | municipal corporation, or other governmental or | 23 | | non-governmental entity for a supply of water, and any such | 24 | | political subdivision, municipal corporation, or other | 25 | | governmental entity is authorized to enter into such a | 26 | | contract with the commission. A commission may accept from a |
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| 1 | | municipality that is a member of the commission the assignment | 2 | | of a contract to acquire a supply of water and to accept and | 3 | | perform the duties and obligations and make all payments | 4 | | required pursuant to such assigned contract. | 5 | | A contract made by or assigned to a commission for a supply | 6 | | of water may contain provisions whereby the commission is | 7 | | obligated to pay for such supply of water without setoff or | 8 | | counterclaim and irrespective of whether such supply of water | 9 | | is ever furnished, made available, or delivered to the | 10 | | commission or whether any project for the supply of water | 11 | | contemplated by the contract is completed, operable, or | 12 | | operating and notwithstanding any suspension, interruption, | 13 | | interference, reduction, or curtailment of the supply of water | 14 | | from such project. | 15 | | No prior appropriation shall be required before entering | 16 | | into or accepting assignment of such contract, and no | 17 | | appropriation shall be required to authorize payments to be | 18 | | made under the terms of the contract, notwithstanding any | 19 | | provision of this Code to the contrary. The contract shall not | 20 | | be a debt within the meaning of any statutory or | 21 | | constitutional limitations. | 22 | | (c) Water contracts to provide water supply to members. | 23 | | The commission is authorized to contract with the | 24 | | municipalities which established the commission, and with | 25 | | other municipalities that have become members pursuant to the | 26 | | process established in the intergovernmental agreement, for a |
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| 1 | | supply of water to those municipalities, for a period not | 2 | | exceeding 101 years, and those municipalities are authorized | 3 | | to enter into such contracts with the commission. | 4 | | Any such contract made by a commission and any such | 5 | | municipalities to supply water may contain provisions whereby | 6 | | the purchasing municipality is obligated to pay for such | 7 | | supply of water without setoff or counterclaim and | 8 | | irrespective of whether such supply of water is ever | 9 | | furnished, made available, or delivered to the purchasing | 10 | | municipality or whether any project for the supply of water | 11 | | contemplated by any such contract is completed, operable, or | 12 | | operating and notwithstanding any suspension, interruption, | 13 | | interference, reduction, or curtailment of the supply of water | 14 | | from such project. Any such contract may provide that if one or | 15 | | more of the other purchasers' defaults in the payment of its | 16 | | obligations under the contract or similar contract made with | 17 | | the supplier of the water, the remaining purchasers party to | 18 | | such contract or such similar contract shall be required to | 19 | | pay for all or a portion of the obligations of the defaulting | 20 | | purchaser. Each municipality that enters into such a contract | 21 | | shall be obligated and have the duty to include an amount | 22 | | sufficient to pay the annual amount of its obligation each | 23 | | year in the next succeeding appropriation ordinances. No prior | 24 | | appropriation shall be required for a municipality to | 25 | | authorize the payments, advances, or obligations provided for | 26 | | in such contracts or this subsection. |
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| 1 | | (d) Water contracts to provide water supply to nonmembers | 2 | | and extend system. A commission may supply water to and | 3 | | contract with a person, corporation, political subdivision, | 4 | | municipal corporation, or other governmental or | 5 | | non-governmental entity, in addition to the municipalities | 6 | | which have formed the commission and other municipalities that | 7 | | have become members pursuant to the process established in the | 8 | | intergovernmental agreement, and to construct water | 9 | | transmission and distribution lines within a radius of 25 | 10 | | miles outside the corporate limits of member municipalities | 11 | | for the purpose of furnishing water to any additional entities | 12 | | which contract with the commission for a supply of water, upon | 13 | | such payment, terms, and conditions as may be mutually agreed | 14 | | upon. Any such contract shall be a continuing, valid, and | 15 | | binding obligation of the purchaser for such period of years, | 16 | | not to exceed 40, as may be provided in such contract. | 17 | | Any such contract entered into to supply water to a | 18 | | municipal corporation or political subdivision shall provide | 19 | | that the payments to be made thereunder shall be from the | 20 | | revenues to be derived by such municipality or political | 21 | | subdivision from the operation of the waterworks system or | 22 | | combined waterworks and sewer system of such municipality or | 23 | | political subdivision or from receipts from other sources | 24 | | available to the municipality or political subdivision, | 25 | | including grants and loans. Any such contract made by a | 26 | | commission and a purchaser that is such a municipal |
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| 1 | | corporation or political subdivision to supply water may | 2 | | contain provisions whereby the purchaser is obligated to pay | 3 | | for such supply of water without setoff or counterclaim and | 4 | | irrespective of whether such supply of water is ever | 5 | | furnished, made available, or delivered to the purchaser or | 6 | | whether any project for the supply of water contemplated by | 7 | | any such contract is completed, operable, or operating and | 8 | | notwithstanding any suspension, interruption, interference, | 9 | | reduction, or curtailment of the supply of water from such | 10 | | project. The contract may provide that, if one or more of the | 11 | | other purchasers defaults in the payment of its obligations | 12 | | under such contract or similar contract made with the supplier | 13 | | of the water, the remaining purchasers party to such contract | 14 | | or such similar contract shall be required to pay for all or a | 15 | | portion of the obligations of the defaulting purchaser. Each | 16 | | municipal corporation or political subdivision that enters | 17 | | into such a contract shall be obligated and have the duty to | 18 | | include an amount sufficient to pay the annual amount of its | 19 | | obligation each year in the next succeeding appropriation | 20 | | ordinances. No prior appropriation shall be required for a | 21 | | municipality or political subdivision to authorize the | 22 | | payments, advances, or obligations provided for in such | 23 | | contracts or this subsection. Any such contract shall not be a | 24 | | debt within the meaning of any statutory or constitutional | 25 | | limitations. | 26 | | (e) Additional powers. In addition to any other powers set |
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| 1 | | forth in this Division and in the agreement, a commission has | 2 | | the following powers: | 3 | | (1) The power to enter into intergovernmental police | 4 | | assistance agreements with any municipality or county. | 5 | | (2) The power to enter into intergovernmental | 6 | | agreements with any unit of local government or other | 7 | | governmental entity in order to carry out the purposes for | 8 | | which the commission was formed. | 9 | | (65 ILCS 5/11-135.5-30 new) | 10 | | Sec. 11-135.5-30. Revenue bonds. | 11 | | (a) Revenue bonds; power; purposes. A commission may from | 12 | | time to time issue its revenue bonds in such principal amounts | 13 | | as the commission deems necessary to provide sufficient funds | 14 | | to carry out any of its corporate purposes and powers, | 15 | | including, without limitation: developing, acquiring, | 16 | | constructing, extending, or improving a waterworks system or | 17 | | common source of supply of water, or any combination thereof; | 18 | | the funding or refunding of the principal of, redemption | 19 | | premium on, if any, and interest on bonds issued by it, whether | 20 | | or not such bonds or interest to be funded or refunded have or | 21 | | have not become due; the payment of engineering, legal, and | 22 | | other expenses, together with interest to a date one year | 23 | | subsequent to the estimated date of completion of the project; | 24 | | the establishment or increase of reserves to secure or to pay | 25 | | such bonds and interest thereon; the providing of working |
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| 1 | | capital; and the payment of all other costs or expenses of the | 2 | | commission incident to and necessary or convenient to carry | 3 | | out its corporate purposes and powers. These bonds shall have | 4 | | all the qualities of negotiable instruments under the laws of | 5 | | this State and shall not constitute indebtedness of any of the | 6 | | municipalities constituting the commission. | 7 | | (b) Source of payment. Every issue of bonds of a | 8 | | commission shall be payable out of the revenues to be derived | 9 | | pursuant to contracts with the specified municipalities and | 10 | | other purchasers of water or by virtue of the operation of any | 11 | | properties acquired or to be acquired or constructed. A | 12 | | commission may issue such types of bonds as it determines, | 13 | | including bonds as to which the principal and interest are | 14 | | payable from the revenues from one or more projects, or from an | 15 | | interest therein or a right to the products and services | 16 | | thereof, or from one or more revenue producing contracts made | 17 | | by the commission, or its revenues generally. Any such bonds | 18 | | may be additionally secured by a pledge of any grant, subsidy, | 19 | | contribution, or other revenue source from the United States, | 20 | | the State of Illinois, or any unit of local government, or any | 21 | | combination thereof. | 22 | | (c) Receipt of funds by treasurer. Before the treasurer of | 23 | | the commission is entitled to receive the proceeds of the sale | 24 | | of such a bond issue, the treasurer shall supply a corporate | 25 | | surety bond in an amount equivalent to the amount of funds to | 26 | | be derived from the sale of the bonds, and, in addition |
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| 1 | | thereto, the treasurer shall supply a separate corporate | 2 | | surety bond for the faithful accounting of any funds that may | 3 | | come into that individual's possession in an amount equal to | 4 | | the amount of funds likely to come into the treasurer's hands | 5 | | in any one year from the revenue to be derived from the | 6 | | operation of any of the properties of the commission. The cost | 7 | | of these surety bonds shall be paid by the commission. The | 8 | | requirement to supply corporate surety bonds under this | 9 | | subsection does not apply to the extent that the proceeds of | 10 | | the sale of the bonds and other funds are subject to the | 11 | | administration of the trustee pursuant to a trust indenture | 12 | | with a bank or trust company. | 13 | | (d) Approval process; terms. The revenue bonds shall be | 14 | | issued pursuant to an ordinance or resolution, or, in the | 15 | | alternative, pursuant to a master trust indenture as well as a | 16 | | supplemental trust indenture with each issuance, and may be | 17 | | issued in one or more series, and shall bear such date or | 18 | | dates, mature at such time or times within the estimated | 19 | | period of usefulness of the project involved and, in any | 20 | | event, not more than 50 years from the date thereof, bear | 21 | | interest at such rate or rates as authorized under Section 2 of | 22 | | the Bond Authorization Act, which rates may be fixed or | 23 | | variable, be in such denominations, be in such form, either | 24 | | coupon or registered, carry such conversion, registration, and | 25 | | exchange privileges, have such rank or priority, be executed | 26 | | in such manner, be payable in such medium of payment at such |
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| 1 | | place or places within or without the State, be subject to such | 2 | | terms of redemption with or without premium, and contain or be | 3 | | subject to such other terms as the ordinance or resolution, or | 4 | | the master trust indenture or supplemental trust indenture or | 5 | | both, may provide, and shall not be restricted by the | 6 | | provisions of any other law limiting the amounts, maturities, | 7 | | interest rates, or other terms of obligations of public | 8 | | agencies or private persons. The master trust indenture and | 9 | | any supplemental trust indenture shall be entered into with a | 10 | | bank or trust company within or outside the State having trust | 11 | | powers and possessing capital and surplus of not less than | 12 | | $50,000,000. The bonds shall be sold in such manner as the | 13 | | commission shall determine, at private or public sale. It | 14 | | shall not be necessary that the ordinance or resolution, or | 15 | | the master trust indenture or supplemental trust indenture or | 16 | | both, refer to plans and specifications nor that there be on | 17 | | file for public inspection prior to the adoption of such | 18 | | ordinance or resolution, or the master trust indenture or | 19 | | supplemental trust indenture or both, detailed plans and | 20 | | specifications of the project. This ordinance or resolution, | 21 | | or the master trust indenture or supplemental trust indenture | 22 | | or both, may contain such covenants and restrictions in | 23 | | relation to the operation of the properties under the control | 24 | | of the commission and the issuance of additional revenue bonds | 25 | | thereafter as may be deemed necessary or advisable for the | 26 | | assurance of payment of the bonds thereby authorized and as |
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| 1 | | may be thereafter issued. It shall be plainly stated on each | 2 | | bond that it does not constitute an indebtedness of any | 3 | | municipality represented by the commission within the meaning | 4 | | of any statutory or constitutional limitation. Upon the | 5 | | issuance of revenue bonds, the revenue of the commission | 6 | | derived pursuant to contracts entered into for the sale of | 7 | | water to the municipalities that have formed the commission | 8 | | and to other municipalities that have become members pursuant | 9 | | to the intergovernmental agreement, as well as contracts | 10 | | entered into with other persons, corporations, political | 11 | | subdivisions, municipal corporations, or other governmental or | 12 | | non-governmental entities and from the operation of its | 13 | | properties, shall be accounted for as provided in the | 14 | | ordinance or resolution, or the master trust indenture or | 15 | | supplemental trust indenture or both, authorizing the issuance | 16 | | of the bonds. Any commission created under the provisions of | 17 | | this Division may also issue bonds for the purpose of | 18 | | providing funds for the payment, refunding, or redemption of | 19 | | any of the commission's bonds or notes before, after, or at | 20 | | their maturity, including the payment of redemption premiums | 21 | | or interest accruing or to accrue on such bonds or notes being | 22 | | paid or redeemed, and for the payment of any installments of | 23 | | interest accrued or to accrue on any bond or note. | 24 | | (e) No limitation. The provisions of this Section are not | 25 | | a limit upon a municipality that is a home rule unit. |
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| 1 | | (65 ILCS 5/11-135.5-35 new) | 2 | | Sec. 11-135.5-35. Revenues; rates; costs; construction | 3 | | contracts. | 4 | | (a) Revenue fund. Whenever bonds are issued under this | 5 | | Division, the revenue received from the operation of the | 6 | | properties under the control of the commission shall be set | 7 | | aside as collected and deposited in a separate fund to be used | 8 | | only (1) in paying the cost of the operation and maintenance of | 9 | | those properties, (2) in providing an adequate depreciation | 10 | | fund, (3) in paying the principal of and interest upon the | 11 | | revenue bonds issued by the commission, as provided by this | 12 | | Division, (4) to comply with the covenants of the ordinance or | 13 | | resolution, or the master trust indenture or any applicable | 14 | | supplemental trust indenture or both, authorizing the issuance | 15 | | of such bonds, and (5) to carry out the corporate purposes and | 16 | | powers of the commission. | 17 | | (b) Rates and charges for waterworks system. If the | 18 | | commission has charge of the operation of a complete | 19 | | waterworks system, including the distribution mains, the | 20 | | commission shall establish rates and charges for water and the | 21 | | use of commission waterworks system facilities, which shall be | 22 | | sufficient at all times to pay the cost of operation and | 23 | | maintenance, to provide an adequate depreciation fund, to pay | 24 | | the principal of and interest upon all revenue bonds issued as | 25 | | provided by this Division, to comply with the covenants of the | 26 | | ordinance or resolution, or the master trust indenture or any |
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| 1 | | applicable supplemental trust indenture or both, authorizing | 2 | | the issuance of such bonds, and to carry out the corporate | 3 | | purposes and powers of the commission. Charges and rates shall | 4 | | be established, revised, and maintained by ordinance and | 5 | | become payable as the commission may determine by ordinance. | 6 | | (c) Rates and charges for water source of supply. If the | 7 | | commission has charge of the operation of a common source of | 8 | | supply of water, the municipalities represented by the | 9 | | commission shall contract with the commission for water. These | 10 | | municipalities shall establish such charges and rates for | 11 | | water supplied by them to consumers as will be sufficient at | 12 | | all times (1) to pay the cost of operation and maintenance of | 13 | | the respective waterworks systems (or combined waterworks and | 14 | | sewerage systems) of the municipalities, (2) to provide an | 15 | | adequate depreciation fund therefor, (3) to pay the principal | 16 | | of and interest on all revenue bonds of the municipalities | 17 | | payable from the revenues of the waterworks system (or | 18 | | combined waterworks and sewerage system), and (4) to pay the | 19 | | charges and rates established by the commission for the sale | 20 | | of water by the commission to, and the use of commission | 21 | | waterworks system facilities by, those municipalities. The | 22 | | commission shall establish such charges and rates for water | 23 | | supplied to those municipalities and the use of commission | 24 | | waterworks system facilities as will be sufficient at all | 25 | | times (1) to pay the cost of operation and maintenance of the | 26 | | common source of supply of water, (2) to provide an adequate |
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| 1 | | depreciation fund therefor, (3) to pay the principal of and | 2 | | interest on the revenue bonds issued by the commission, (4) to | 3 | | comply with the covenants of the ordinance or resolution, or | 4 | | the master trust indenture or any applicable supplemental | 5 | | trust indenture or both, authorizing the issuance of such | 6 | | bonds, and (5) to carry out the corporate purposes and powers | 7 | | of the commission, under the provisions of this Division. | 8 | | Contracts entered into between the commission and the | 9 | | specified municipalities shall include covenants for the | 10 | | establishment of rates and charges as provided in this | 11 | | Section. | 12 | | (d) Pension costs. Contributions to a retirement fund or | 13 | | other pension alternative authorized by the Illinois Pension | 14 | | Code, including, without limitation, the Illinois Municipal | 15 | | Retirement Fund, by commissions created under this Division | 16 | | which have been included under the retirement fund or other | 17 | | pension alternative shall be considered a cost of operation | 18 | | and maintenance for the purposes of this Section. | 19 | | (e) Enforcement of obligations. A holder of a bond or of | 20 | | any of its coupons issued under this Division, in a civil | 21 | | action, mandamus, or other proceeding, may enforce and compel | 22 | | performance of all duties required by this Division to be | 23 | | performed by such a commission or by any of the | 24 | | municipalities, including the making of rates and charges, the | 25 | | collecting of sufficient revenue, and the application thereof, | 26 | | as provided in this Division. |
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| 1 | | (f) Construction contracts. All or any portion of a | 2 | | waterworks system or other public improvement of such a | 3 | | commission, when the expense thereof will exceed the greater | 4 | | of (i) $25,000 or (ii) the amount of expense above which a work | 5 | | or public improvement by a municipality must be let to the | 6 | | lowest responsible bidder after advertising for bids under | 7 | | Section 8-9-1 of this Code, shall be constructed, maintained, | 8 | | or repaired either: (1) by a contract let to the lowest | 9 | | responsible bidder after advertising for bids, in the manner | 10 | | prescribed by the commission's bylaws, rules, and regulations | 11 | | and by the vote required as established in the | 12 | | intergovernmental agreement pursuant to Section 11-135.5-25; | 13 | | or (2) without advertising for bids, if authorized by a vote of | 14 | | greater than a majority of all the commissioners as | 15 | | established in the intergovernmental agreement pursuant to | 16 | | Section 11-135.5-25. The commission's bylaws, rules, and | 17 | | regulations shall provide for an alternative procedure for | 18 | | emergency procurement if an emergency makes it impracticable | 19 | | to follow the procedures in this subsection. | 20 | | (g) Project labor agreement. In connection with a contract | 21 | | by a commission for the construction of all or any portion of a | 22 | | waterworks system or other public improvement of the | 23 | | commission, the commission must enter into a project labor | 24 | | agreement with the applicable local building trades council | 25 | | prior to the commencement of any and all construction, | 26 | | building, renovation, demolition, or any material change to |
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| 1 | | the structure or land. | 2 | | (65 ILCS 5/11-135.5-40 new) | 3 | | Sec. 11-135.5-40. Property. | 4 | | (a) Generally. A commission may (i) acquire, hold, sell, | 5 | | lease as lessor or lessee, transfer, or dispose of real or | 6 | | personal property, or interest therein, and (ii) acquire by | 7 | | gift, legacy, or grant any real estate or personal property, | 8 | | or rights therein, in all such instances as it deems | 9 | | appropriate in the exercise of its powers for its lawful | 10 | | purposes, whether the land or personal property is located | 11 | | within or outside the boundaries of the members of the | 12 | | commission. The commission also may accept any grant, subsidy, | 13 | | or contribution from the United States, the State of Illinois, | 14 | | a unit of local government, or any other governmental entity, | 15 | | or any combination thereof. | 16 | | (b) Private property. Whenever a commission passes an | 17 | | ordinance for the construction or acquisition of any | 18 | | waterworks properties, or improvements or extension or mains, | 19 | | pumping stations, reservoirs, or other appurtenances thereto, | 20 | | which such commission is authorized to make, the making of | 21 | | which will require that private property be taken or damaged, | 22 | | such commission may cause compensation therefor to be | 23 | | ascertained and may condemn and acquire possession thereof in | 24 | | the same manner as nearly as may be, as provided for the | 25 | | exercise of the right of eminent domain under the Eminent |
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| 1 | | Domain Act. However, proceedings to ascertain the compensation | 2 | | to be paid for taking or damaging private property shall be | 3 | | instituted in the circuit court of the county where the | 4 | | property sought to be taken or damaged is situated. | 5 | | (c) Public property. When a commission created under this | 6 | | Division requires that public property be taken or damaged for | 7 | | the purposes specified in this Section, the commission may | 8 | | condemn and acquire possession of public property and cause | 9 | | compensation for such public property to be ascertained in the | 10 | | same manner provided for the exercise of the right of eminent | 11 | | domain under the Eminent Domain Act while the commission has | 12 | | the power to initiate action in the manner provided by Article | 13 | | 20 of the Eminent Domain Act. | 14 | | (d) Highways and public ground. A commission may | 15 | | construct, maintain, alter, and extend its water mains as a | 16 | | proper use of highways along, upon, under, and across any | 17 | | highway, street, alley, or public ground in the State, | 18 | | including highways within a municipality, but so as not to | 19 | | inconvenience the public use thereof, and the commission may | 20 | | construct, maintain, and operate any conduit or conduits, | 21 | | water pipe or pipes, wholly or partially buried or otherwise | 22 | | in, upon, and along any of the lands owned by the State and | 23 | | under any of the public waters therein. However, the right, | 24 | | permission, and authority hereby created shall be subject to | 25 | | all public rights of commerce and navigation and the authority | 26 | | of the United States in behalf of such public rights and also |
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| 1 | | the laws of the State to regulate and control the same. Notice | 2 | | shall be given to the highway authorities of a municipality, | 3 | | county, township, road district, or township district in which | 4 | | such highway, street, or public way may be situated at least 60 | 5 | | days before any construction or installation work in such | 6 | | highway or street shall commence. All laws and ordinances | 7 | | pertaining to such work for the protection of the public and of | 8 | | public property shall be complied with, except that no fee may | 9 | | be charged such commission for the construction or | 10 | | installation of such facilities in such public places. | 11 | | (e) Surplus property. When, in the opinion of a | 12 | | commission, real estate owned by it, however acquired, is no | 13 | | longer necessary, appropriate, required for the use of, | 14 | | profitable to, or for best interest of the commission, such | 15 | | commission may, by resolution, lease such surplus real estate | 16 | | for a period not to exceed 99 years or sell such surplus real | 17 | | estate, in accordance with procedures established in the | 18 | | intergovernmental agreement or bylaws or adopted by resolution | 19 | | by such commission. | 20 | | (f) Tax exemption. All property, income, and receipts of | 21 | | or transactions by a commission shall be exempt from all | 22 | | taxation, the same as if it were the property, income, or | 23 | | receipts of or transaction by the member municipalities. | 24 | | (g) Agricultural impact mitigation agreement. For any | 25 | | private property that is used for agricultural purposes, as | 26 | | defined in Section 1-60 of the Property Tax Code, that is |
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| 1 | | damaged or taken by a commission created under this Division, | 2 | | the commission shall enter into an agricultural impact | 3 | | mitigation agreement with the Illinois Department of | 4 | | Agriculture to ensure any negative impacts to private property | 5 | | are properly mitigated. | 6 | | (65 ILCS 5/11-135.5-45 new) | 7 | | Sec. 11-135.5-45. Laws not applicable. The provisions of | 8 | | this Division: (i) are not subject to Division 135 or Division | 9 | | 136 of Article 11 of this Code or the Water Commission Act of | 10 | | 1985; and (ii) do not apply to any commission formed or | 11 | | operating under Division 135 or Division 136 of Article 11 of | 12 | | this Code or the Water Commission Act of 1985.
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.
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