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91_HB3226
LRB9110377JMpr
1 AN ACT to amend the intergovernmental Cooperation Act by
2 changing Section 3.2.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Intergovernmental Cooperation Act is
6 amended by changing Section 3.2 as follows:
7 (5 ILCS 220/3.2) (from Ch. 127, par. 743.2)
8 Sec. 3.2. (a) Any two or more municipalities, counties
9 or combination thereof may, by intergovernmental agreement,
10 establish a Municipal Joint Action Agency to provide for
11 efficient and environmentally sound collection,
12 transportation, processing, storage and disposal of municipal
13 waste. Any such Agency shall itself be a municipal
14 corporation, public body politic and corporate. A Municipal
15 Joint Action Agency formed for such purpose shall be
16 established by an intergovernmental agreement among the
17 various members upon approval by an ordinance adopted by the
18 corporate authorities of each member. Such agreement may be
19 amended at any time as may be provided in the
20 intergovernmental agreement. The agreement may provide for
21 additional members to join the Agency upon adoption of an
22 ordinance by the corporate authorities of the joining member
23 and upon such consents, conditions and approvals of the
24 governing body of the Municipal Joint Action Agency and of
25 existing members as shall be provided in the agreement. The
26 intergovernmental agreement shall provide the manner and
27 terms on which any member may withdraw from membership in the
28 Municipal Joint Action Agency and on which the Agency may
29 terminate and dissolve in whole or in part. The agreement
30 shall set forth the corporate name of the Municipal Joint
31 Action Agency and its duration. Promptly upon any agreement
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1 establishing a Municipal Joint Action Agency being entered
2 into, or upon the amending of any such agreement, a copy of
3 such agreement or amendment shall be filed in the office of
4 the Secretary of State of Illinois. Promptly upon the
5 addition or withdrawal of any member, or upon the dissolution
6 of a Municipal Joint Action Agency, that fact shall be
7 certified by an officer of the Agency to the Secretary of
8 State of Illinois.
9 (b) The governing body of any Municipal Joint Action
10 Agency established pursuant to this Section 3.2 shall be a
11 Board of Directors. The number, terms of office and
12 qualifications of the Board of Directors shall be provided
13 for in the intergovernmental agreement. Directors shall be
14 selected by vote of the members which are eligible to vote
15 under the terms of the intergovernmental agreement. The
16 method of voting by members for directors shall be provided
17 for in the intergovernmental agreement which may authorize
18 the corporate authorities of a member to designate an
19 individual to cast its vote or votes at any such election.
20 The Board of Directors shall determine the general policy of
21 the Agency, shall approve the annual budget, shall make all
22 appropriations, shall adopt all resolutions providing for the
23 issuance of bonds or notes by the Agency, shall adopt its
24 bylaws, rules and regulations, and shall have such other
25 powers and duties as may be prescribed in the agreement.
26 The Board of Directors shall act by a vote of a majority
27 of its members or by such greater majority as may be provided
28 in the intergovernmental agreement. If the intergovernmental
29 agreement so provides, the Board of Directors may create one
30 or more committees, define their duties and designate the
31 members of the committees, who need not be members of the
32 Board. The Municipal Joint Action Agency shall have such
33 officers who shall be elected in such manner and for such
34 terms as shall be prescribed by the intergovernmental
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1 agreement or as may be determined by the Board of Directors.
2 The officers shall have such duties as may be provided in the
3 intergovernmental agreement or as may be determined by the
4 Board of Directors.
5 (c) A Municipal Joint Action Agency may plan, construct,
6 reconstruct, acquire, own, lease (as lessor or lessee),
7 equip, extend, improve, manage, operate, maintain, repair,
8 close and finance waste projects. In determining the size of
9 the waste project, adequate provision shall be given to the
10 present and reasonably anticipated future needs of the
11 recycling and resource recovery interest within the area.
12 A Municipal Joint Action Agency shall have such powers as
13 shall be provided in the agreement establishing it, which may
14 include, but need not be limited to, the following powers:
15 (i) To sue or be sued;
16 (ii) To apply for and accept gifts, grants or loans of
17 funds or property or financial or other aid from any public
18 agency or private entity;
19 (iii) To acquire, hold, sell, lease as lessor or lessee,
20 lend, transfer or dispose of such real or personal property
21 including intangible property, or interests therein, as it
22 deems appropriate in the exercise of its powers, to provide
23 for the use thereof by any member upon such terms and
24 conditions and with such fees or charges as it shall
25 determine, and to mortgage, pledge or otherwise grant
26 security interests in any such property;
27 (iv) To make and execute all contracts and other
28 instruments necessary or convenient to the exercise of its
29 power;
30 (v) To adopt, amend and repeal ordinances, resolutions,
31 rules and regulations with respect to its powers and
32 functions and not inconsistent with this Section 3.2,
33 including ordinances for the licensing of waste haulers, and
34 to enforce those ordinances licensing waste haulers;
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1 (vi) To provide for the insurance, including self
2 insurance, of any property or operations of the Municipal
3 Joint Action Agency or its members, directors, officers and
4 employees, against any risk or hazard, and to indemnify its
5 members, directors, officers and employees therefrom;
6 (vii) To appoint, retain and employ officers, agents,
7 independent contractors and employees to carry out its powers
8 and functions hereunder;
9 (viii) To make and execute any contract with the
10 federal, state, or a unit of local government or any person
11 relating to a waste project, including contracts which
12 require:
13 (1) the contracting party pay the Agency a fixed
14 amount for the collection, processing and disposal of a
15 stated amount of municipal waste (whether or not the
16 stated amount of waste is collected or disposed of), or
17 pay all or a portion of the capital and operating
18 expenses of a waste project;
19 (2) the contracting party make exclusive use of a
20 waste project for collecting, processing or disposing of
21 all or any portion of municipal waste over which the
22 party has control;
23 (3) the abandonment, restriction, or prohibition on
24 completion or construction of competing waste projects by
25 the contracting party;
26 (4) specific provisions with respect to the
27 collection, processing, transportation, storage and
28 disposal of municipal waste;
29 (5) payment of fees and charges with respect to a
30 waste project;
31 (ix) To enter into contracts which provide for
32 compensation to areas affected by an Agency waste project;
33 (x) To enter into contracts with the host community
34 controlling location, use, operation, maintenance and closing
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1 of the waste project;
2 (xi) To create reserves for the purpose of planning,
3 constructing, reconstructing, acquiring, owning, managing,
4 insuring, leasing, equipping, extending, improving,
5 operating, maintaining, repairing, and closing waste
6 projects;
7 (xii) To create, develop and implement plans for closing
8 and re-use of sites on which waste projects are located,
9 which plans may provide for various uses, including but not
10 limited to, residential, recreational, commercial, office and
11 industrial uses;
12 (xiii) To prepare, submit and administer plans, and to
13 participate in intergovernmental agreements, pursuant to the
14 Local Solid Waste Disposal Act.
15 (d) 1. A Municipal Joint Action Agency may, from time to
16 time, borrow money, and, in evidence of its obligation to
17 repay the borrowing, issue its negotiable revenue bonds or
18 notes for any of its corporate purposes, including, but not
19 limited to, the following: for paying costs of planning,
20 constructing, reconstructing, acquiring, owning, leasing,
21 equipping, improving, closing or extending a waste project
22 and implementing a re-use of the waste project; for paying
23 other expenses incident to or incurred in connection with
24 such project; for repaying advances made to or by the Agency
25 for such purposes; for paying interest on the bonds or notes
26 until the estimated date of completion of any such project
27 and for such period after the estimated completion date as
28 the Board of Directors of the Agency shall determine; for
29 paying financial, legal, administrative and other expenses of
30 the authorization, issuance, sale or delivery of bonds or
31 notes; for paying costs of insuring payment of or other
32 credit enhancement of the bonds or notes; for providing or
33 increasing a debt service reserve fund with respect to any or
34 all of the Agency's bonds or notes; for creation of reserves
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1 for the planning, constructing, reconstructing, acquiring,
2 leasing, managing, equipping, extending, insuring, improving
3 or closing of waste projects; and for paying, refunding or
4 redeeming any of the Agency's bonds or notes before, after or
5 at their maturity, including paying redemption premiums or
6 interest accruing or to accrue on such bonds or notes being
7 paid or redeemed or for paying any other costs in connection
8 with any such payment or redemption.
9 2. Any bonds or notes issued pursuant to this paragraph
10 (d) by a Municipal Joint Action Agency shall be authorized by
11 a resolution of the Board of Directors of the Agency adopted
12 by the affirmative vote of a majority of the Directors and in
13 compliance with any additional requirements as may be set
14 forth in the agreement establishing the Agency. The
15 authorizing resolution may be effective immediately upon its
16 adoption. The authorizing resolution shall describe in a
17 general way any waste project contemplated to be financed by
18 the bonds or notes, shall set forth the estimated cost of the
19 waste project and shall determine its period of usefulness.
20 The authorizing resolution shall determine the maturity or
21 maturities of the bonds or notes, the denominations, the rate
22 or rates at which the bonds or notes are to bear interest and
23 all the other terms and details of the bonds or notes. The
24 bonds or notes may be issued as serial bonds payable in
25 installments or as term bonds with or without sinking fund
26 installments or a combination thereof. All such bonds or
27 notes shall mature within the period of estimated usefulness
28 of the project with respect to which such bonds or notes are
29 issued, as determined by the Board of Directors, but in any
30 event not more than 50 years from their date of issue. The
31 bonds and notes may bear interest at such rate or rates as
32 the resolution shall provide, notwithstanding any other
33 provision of law, and shall be payable at such times as
34 determined by the authorizing resolution. Bonds or notes of
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1 a Municipal Joint Action Agency shall be sold in such manner
2 as the Board of Directors of the Agency shall determine,
3 either at par or at a premium or discount.
4 3. In connection with the issuance of its bonds or
5 notes, the Municipal Joint Action Agency may enter into
6 arrangements to provide additional security and liquidity for
7 its obligations. These may include, without limitation,
8 municipal bond insurance, letters of credit, lines of credit
9 by which the Municipal Joint Action Agency may borrow funds
10 to pay or redeem its obligations and purchase or remarketing
11 arrangements for assuring the ability of owners of the
12 obligations to sell or to have redeemed the obligations. The
13 Municipal Joint Action Agency may enter into contracts and
14 may agree to pay fees to persons providing such arrangements,
15 including from bond or note proceeds.
16 The resolution of the Municipal Joint Action Agency
17 authorizing the issuance of its bonds or notes may provide
18 that interest rates may vary from time to time depending upon
19 criteria set forth in the resolution, which may include,
20 without limitation, a variation of interest rates as may be
21 necessary to cause bonds or notes to be remarketable from
22 time to time at a price equal to their principal amount, and
23 may provide for appointment of a national banking
24 association, bank, trust company, investment banker or other
25 financial institution to serve as a remarketing agent in that
26 connection. Notwithstanding any other provision of law, the
27 resolution of the Municipal Joint Action Agency authorizing
28 the issuance of its bonds or notes may provide that
29 alternative interest rates or provisions will apply during
30 such times as the bonds or notes are held by a person
31 providing a letter of credit or other credit enhancement
32 arrangement for those bonds or notes.
33 4. The resolution authorizing the issuance of any bonds
34 or notes pursuant to this paragraph (d) shall constitute a
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1 contract with the holders of the bonds and notes. The
2 resolution may contain such covenants and restrictions with
3 respect to the waste project and the contracts with respect
4 to such waste project, the issuance of additional bonds or
5 notes by the Agency, the security for the bonds and notes,
6 and any other matters as may be deemed necessary or advisable
7 by the Board of Directors to assure the payment of the bonds
8 or notes of the Agency.
9 5. The resolution authorizing the issuance of bonds or
10 notes by a Municipal Joint Action Agency established pursuant
11 to this Section 3.2 shall pledge and provide for the
12 application of revenues derived from the operation of the
13 Agency's waste projects, revenues received from its members
14 (including from contracts for the use of the Agency's waste
15 projects) and revenues from its investment earnings to the
16 payment of the operating expenses of the waste projects, to
17 provision of adequate depreciation, reserve or replacement
18 funds with respect to the waste project, planned waste
19 projects, or the bonds or notes, and to the payment of
20 principal, premium, if any, and interest on the bonds or
21 notes of the Agency (including amounts for the purchase of
22 such bonds or notes). The resolution may provide that
23 revenues of the Municipal Joint Action Agency so derived and
24 other receipts of the Agency which may be applied to such
25 purposes shall be set aside as collected in a separate fund
26 or funds and used for such purposes. The resolution may
27 provide that revenues not required for such purposes may be
28 used for any proper purpose of the Agency or may be returned
29 to members.
30 Any notes of a Municipal Joint Action Agency may, in
31 addition, be secured by a pledge of proceeds of bonds to be
32 issued by the Agency, as specified in the resolution
33 authorizing the issuance of such notes.
34 6. All bonds and notes of the Municipal Joint Action
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1 Agency issued pursuant to this paragraph (d) shall be revenue
2 bonds or notes. Such bonds or notes shall have no claim for
3 payment other than from revenues of the Agency derived from
4 the operation of its waste projects, from revenues received
5 from its members (including from contracts for the use of the
6 Agency's waste projects), from bond or note proceeds, from
7 such other receipts of the Agency as the agreement
8 establishing the Agency may authorize to be pledged to the
9 payment of bonds or notes, and from investment earnings on
10 the foregoing, all as and to the extent as provided in the
11 resolution of the Board of Directors authorizing the issuance
12 of the bonds or notes. Bonds or notes issued by a Municipal
13 Joint Action Agency pursuant to this paragraph (d) shall not
14 constitute an indebtedness of the Agency or of any member
15 within the meaning of any constitutional or statutory
16 limitation. It shall be plainly stated on each bond and note
17 that it does not constitute an indebtedness of the Municipal
18 Joint Action Agency or of any member within the meaning of
19 any constitutional or statutory limitation.
20 7. As long as any bonds or notes of a Municipal Joint
21 Action Agency created pursuant to this Section 3.2 are
22 outstanding and unpaid, the Agency shall not terminate or
23 dissolve and, except as permitted by the resolution or
24 resolutions authorizing outstanding bonds or notes, no member
25 may withdraw from the Agency. The Agency shall establish
26 fees and charges for its operations sufficient to provide
27 adequate revenues to meet all of the requirements under its
28 various resolutions authorizing bonds or notes.
29 8. A holder of any bond or note issued pursuant to this
30 paragraph (d) may, in any civil action, mandamus or other
31 proceeding, enforce and compel performance of all duties
32 required to be performed by the Agency, as provided in the
33 authorizing resolution, or by any of the members or other
34 persons contracting with the Agency to use the Agency's waste
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1 projects, including the imposition of fees and charges, the
2 collection of sufficient revenues and the proper application
3 of revenues as provided in this paragraph (d).
4 9. In addition, the resolution authorizing any bonds or
5 notes issued pursuant to this paragraph (d) may provide for a
6 pledge, assignment, lien or security interest, for the
7 benefit of the holders of any or all bonds or notes of the
8 Agency, (i) on any and all revenues derived from the
9 operation of the Agency's waste projects (including from
10 contracts for the use of the Agency's waste projects) and
11 investment earnings thereon, (ii) on any and all revenues
12 received from its members, or (iii) on funds or accounts
13 securing the payment of the bonds or notes as provided in the
14 authorizing resolution. In addition, such a pledge,
15 assignment, lien or security interest may be made with
16 respect to any receipts of the Agency which the agreement
17 establishing the Agency authorizes it to apply to payment of
18 bonds or notes. Any such pledge, assignment, lien or
19 security interest for the benefit of holders of bonds or
20 notes shall be valid and binding from the time the bonds or
21 notes are issued, without any physical delivery or further
22 act, and shall be valid and binding against or prior to any
23 claims of any other party having any claims of any kind
24 against the Agency irrespective of whether such other parties
25 have notice of such pledge, assignment, lien or security
26 interest.
27 A resolution of a Municipal Joint Action Agency
28 authorizing the issuance of bonds or notes pursuant to this
29 paragraph (d) may provide for the appointment of a corporate
30 trustee with respect to any or all of such bonds or notes
31 (which trustee may be any trust company or state or national
32 bank having the power of a trust company within Illinois).
33 In that event, the resolution shall prescribe the rights,
34 duties and powers of the trustee to be exercised for the
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1 benefit of the Agency and the protection of the holders of
2 such bonds or notes. The resolution may provide for the
3 trustee to hold in trust, invest and use amounts in funds and
4 accounts created as provided in the resolution. The
5 resolution authorizing the bonds or notes may provide for the
6 assignment and direct payment to the trustee of amounts owed
7 by members and other persons to the Municipal Joint Action
8 Agency under contracts for the use of or access to the
9 Agency's waste projects for application by the trustee to the
10 purposes for which such revenues are to be used as provided
11 in this paragraph (d) and as provided in the authorizing
12 resolution. Upon receipt of notice of such assignment, the
13 member or other person shall thereafter make the assigned
14 payments directly to such trustee.
15 (e) A Municipal Joint Action Agency established pursuant
16 to this Section 3.2 and any of its members shall each have
17 the power to enter into contracts with any person,
18 corporation or public agency, including any other member and
19 the Municipal Joint Action Agency, with respect to a waste
20 project. Any such contract may permit the contracting party
21 to make use of the waste project and pay such fees and
22 charges as may be established. Any member so contracting to
23 use a waste project shall establish such fees and charges for
24 the collection, transportation, processing, storage and
25 disposal of municipal waste as are necessary to produce
26 revenues sufficient to pay its obligations to the Agency
27 under the contract to use the waste project; provided,
28 however, that the member may satisfy its obligation to make
29 payments under the contract from any funds of the member
30 otherwise available for such purpose. Any contract between
31 the Agency and its members with respect to a waste project
32 shall not constitute an indebtedness of such members within
33 any statutory or constitutional limitation. Any such
34 contract shall be a continuing, valid and binding obligation
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1 of such member payable from the fees and charges it imposes
2 for collection, transportation, processing, storage and
3 disposal of municipal waste. Any such contract between the
4 Agency and its members may contain provisions whereby the
5 contracting parties are obligated to pay for all or a portion
6 of the waste project without setoff or counterclaim and
7 irrespective of whether the waste project is ever completed,
8 made available or provided to the contracting party and
9 notwithstanding any suspension, interruption, interference,
10 reduction or curtailment of such waste project. Any such
11 contract may provide that if one or more of the other parties
12 to the contract defaults in the payments of its obligations
13 under such contract or a similar contract made with respect
14 to the waste project, one or more of the remaining parties to
15 such contract or similar contract shall be required to pay
16 for all or a portion of the obligation of the defaulting
17 purchasers. No contract entered into under this subparagraph
18 (e) shall have a term in excess of 50 years. No prior
19 appropriation shall be required by either the Municipal Joint
20 Action Agency or any member before entering into any contract
21 under this subparagraph (e).
22 (f) A Municipal Joint Action Agency established pursuant
23 to this Section 3.2 and its members shall have the power to
24 enter into contracts for a term not exceeding 50 years
25 relating to the collection, transportation, processing,
26 storage and disposal of municipal waste. Parties to the
27 contract shall have the power to agree to provide by
28 ordinance, license, franchise, contract or other means that
29 the method of collection, transportation, processing, storage
30 and disposal of municipal waste shall be the exclusive
31 methods to be allowed within their respective jurisdiction,
32 notwithstanding the fact that competition may be displaced or
33 that such ordinance, license, franchise, contract or other
34 means may have an anticompetitive effect. Such contract may
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1 require the parties by ordinance, license, contract or other
2 means to require that all or any portion of the municipal
3 waste generated within the jurisdiction of the contracting
4 party be delivered to a waste project designated by the
5 parties. Such ordinance, license, franchise, contract or
6 other means may be utilized by the contracting party to
7 insure a constant flow of municipal waste to the facility
8 notwithstanding the fact that competition may be displaced or
9 that such measures have an anticompetitive effect.
10 (g) Members may, for the purposes of, and upon request
11 by the Municipal Joint Action Agency, exercise the power of
12 eminent domain available to them and convey the property so
13 acquired to the Agency for the cost of acquisition and all
14 expenses related thereto.
15 (h) A member may enter into an agreement with the
16 Municipal Joint Action Agency obligating the member to make
17 payments to the Municipal Joint Action Agency in order to
18 finance the costs of planning, acquisition and construction
19 of a waste project. A Municipal Joint Action Agency
20 established pursuant to this Section 3.2 may agree to
21 reimburse its members from proceeds of any borrowing for
22 costs of the member with respect to planning, acquisition and
23 construction of an Agency waste project.
24 (i) Property, income and receipts of or transactions by
25 a Municipal Joint Action Agency created pursuant to this
26 Section 3.2 shall be exempt from all taxation, the same as if
27 it were the property, income of or transaction by a
28 municipality or county member.
29 (j) The following terms whenever used or referred to in
30 this Section 3.2 shall have the following meanings, except
31 where the context clearly indicates otherwise:
32 (1) "Municipal waste" means garbage, general household,
33 institutional and commercial waste, industrial lunchroom or
34 office waste, landscape waste, and construction or demolition
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1 debris.
2 (2) "Waste project" means land, any rights therein and
3 improvements thereto, one or more buildings, structures or
4 other improvements, machinery, equipment, vehicles and other
5 facilities incidental to the foregoing, used in the
6 collection, transportation, transfer, storage, disposal,
7 processing, treatment, recovery and re-use of municipal
8 waste. A waste project shall include land held for a planned
9 waste project or used to buffer a waste project from adjacent
10 land uses.
11 (3) "Bonds or notes" includes other evidences of
12 indebtedness.
13 (Source: P.A. 87-650.)
14 Section 99. Effective date. This Act takes effect upon
15 becoming law.