SB3046 Engrossed LRB094 19197 BDD 54740 b

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 Intergovernmental Cooperation Act is
5 amended by changing Section 3.1 as follows:
 
6     (5 ILCS 220/3.1)  (from Ch. 127, par. 743.1)
7     Sec. 3.1. Municipal Joint Action Water Agency.
8     (a) Any municipality or municipalities of this State, any
9 county or counties of this State, any township in a county with
10 a population under 700,000 of this State, any public water
11 district or districts of this State, any body corporate and
12 politic, or any combination thereof may, by intergovernmental
13 agreement, establish a Municipal Joint Action Water Agency to
14 provide adequate supplies of water on an economical and
15 efficient basis for member municipalities, public water
16 districts and other incorporated and unincorporated areas
17 within such counties. For purposes of this Act, the water
18 supply may only be derived from Lake Michigan, the Mississippi
19 River, the Missouri River, or the Sangamon River Valley
20 Alluvium. Any such Agency shall itself be a municipal
21 corporation, public body politic and corporate. A Municipal
22 Joint Action Water Agency so created shall not itself have
23 taxing power except as hereinafter provided.
24     A Municipal Joint Action Water Agency shall be established
25 by an intergovernmental agreement among the various member
26 municipalities, public water districts, townships, bodies
27 corporate and politic, and counties, upon approval by an
28 ordinance adopted by the corporate authorities of each member
29 municipality, public water district, township, body corporate
30 and politic, or county. This agreement may be amended at any
31 time upon the adoption of concurring ordinances by the
32 corporate authorities of all member municipalities, public

 

 

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1 water districts, townships, bodies corporate and politic, and
2 counties. The agreement may provide for additional
3 municipalities, public water districts, any body corporate and
4 politic, townships in counties with a population under 700,000,
5 or counties to join the Agency upon adoption of an ordinance by
6 the corporate authorities of the joining municipality, public
7 water district, township, or county, and upon such consents,
8 conditions and approvals of the governing body of the Municipal
9 Joint Action Water Agency and of existing member
10 municipalities, public water districts, townships, bodies
11 corporate and politic, and counties as shall be provided in the
12 agreement. The agreement shall provide the manner and terms on
13 which any municipality, public water district, township, or
14 county may withdraw from membership in the Municipal Joint
15 Action Water Agency and on which the Agency may terminate and
16 dissolve in whole or in part. The agreement shall set forth the
17 corporate name of the Municipal Joint Action Water Agency and
18 its duration. Promptly upon any agreement establishing a
19 Municipal Joint Action Water Agency being entered into, or upon
20 the amending of any such agreement, a copy of such agreement or
21 amendment shall be filed in the office of the Secretary of
22 State of Illinois. Promptly upon the addition or withdrawal of
23 any municipality, public water district, township in a county
24 with a population under 700,000, or county, or upon the
25 dissolution of a Municipal Joint Action Water Agency, that fact
26 shall be certified by an officer of the Agency to the Secretary
27 of State of Illinois.
28     (b) The governing body of any Municipal Joint Action Water
29 Agency established pursuant to this Section 3.1 shall be a
30 Board of Directors. There shall be one Director from each
31 member municipality, public water district, township, body
32 corporate and politic, and county of the Municipal Joint Action
33 Water Agency appointed by ordinance of the corporate
34 authorities of the municipality, public water district,
35 township, or county. Each Director shall have one vote. Each
36 Director shall be the Mayor or President of the member

 

 

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1 municipality, or the chairman of the board of trustees of the
2 member public water district, the supervisor of the member
3 township, the appointee of the body corporate and politic, or
4 the chairman of the county board or chief executive officer of
5 the member county or a county board member appointed by the
6 chairman of the county board of the member county, appointing
7 the Director; an elected member of the corporate authorities of
8 that municipality, public water district, township, or county;
9 or other elected official of the appointing municipality,
10 public water district, township, or county. Any agreement
11 establishing a Municipal Joint Action Water Agency shall
12 specify the period during which a Director shall hold office
13 and may provide for the appointment of Alternate Directors from
14 member municipalities, public water districts, townships, or
15 counties. The Board of Directors shall elect one Director to
16 serve as Chairman, and shall elect persons, who need not be
17 Directors, to such other offices as shall be designated in the
18 agreement.
19     The Board of Directors shall determine the general policy
20 of the Municipal Joint Action Water Agency, shall approve the
21 annual budget, shall make all appropriations (which may include
22 appropriations made at any time in addition to those made in
23 any annual appropriation document), shall approve all
24 contracts for the purchase or sale of water, shall adopt any
25 resolutions providing for the issuance of bonds or notes by the
26 Agency, shall adopt its by-laws, rules and regulations, and
27 shall have such other powers and duties as may be prescribed in
28 the agreement. Such agreement may further specify those powers
29 and actions of the Municipal Joint Action Water Agency which
30 shall be authorized only upon votes of greater than a majority
31 of all Directors or only upon consents of the corporate
32 authorities of a certain number of member municipalities,
33 public water districts, townships, bodies corporate and
34 politic, or counties.
35     The agreement may provide for the establishment of an
36 Executive Committee to consist of the municipal manager or

 

 

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1 other elected or appointed official of each member
2 municipality, public water district, township, body corporate
3 and politic, or county, as designated by ordinance or other
4 official action, from time to time by the corporate authorities
5 of the member municipality, public water district, township,
6 body corporate and politic, or county, and may prescribe powers
7 and duties of the Executive Committee for the efficient
8 administration of the Agency.
9     (c) A Municipal Joint Action Water Agency established
10 pursuant to this Section 3.1 may plan, construct, improve,
11 extend, acquire, finance (including the issuance of revenue
12 bonds or notes as provided in this Section 3.1), operate,
13 maintain, and contract for a joint waterworks or water supply
14 system which may include, or may consist of, without
15 limitation, facilities for receiving, storing, and
16 transmitting water from any source for supplying water to
17 member municipalities, public water districts, townships, or
18 counties (including county special service areas created under
19 the Special Service Area Tax Act and county service areas
20 authorized under the Counties Code), or other public agencies,
21 persons, or corporations. Facilities of the Municipal Joint
22 Action Water Agency may be located within or without the
23 corporate limits of any member municipality.
24     A Municipal Joint Action Water Agency shall have such
25 powers as shall be provided in the agreement establishing it,
26 which may include, but need not be limited to, the following
27 powers:
28         (i) to sue or be sued;
29         (ii) to apply for and accept gifts or grants or loans
30     of funds or property or financial or other aid from any
31     public agency or private entity;
32         (iii) to acquire, hold, sell, lease as lessor or
33     lessee, transfer or dispose of such real or personal
34     property, or interests therein, as it deems appropriate in
35     the exercise of its powers, and to provide for the use
36     thereof by any member municipality, public water district,

 

 

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1     township, or county;
2         (iv) to make and execute all contracts and other
3     instruments necessary or convenient to the exercise of its
4     powers (including contracts with member municipalities,
5     with public water districts, with townships, and with
6     counties on behalf of county service areas); and
7         (v) to employ agents and employees and to delegate by
8     resolution to one or more of its Directors or officers such
9     powers as it may deem proper.
10     Member municipalities, public water districts, townships,
11 bodies corporate and politic, or counties may, for the purposes
12 of, and upon request by, the Municipal Joint Action Water
13 Agency, exercise the power of eminent domain available to them,
14 convey property so acquired to the Agency for the cost of
15 acquisition, and be reimbursed for all expenses related to this
16 exercise of eminent domain power on behalf of the Agency.
17     All property, income and receipts of or transactions by a
18 Municipal Joint Action Water Agency shall be exempt from all
19 taxation, the same as if it were the property, income or
20 receipts of or transaction by the member municipalities, public
21 water districts, townships, bodies corporate and politic, or
22 counties.
23     (d) A Municipal Joint Action Water Agency established
24 pursuant to this Section 3.1 shall have the power to buy water
25 and to enter into contracts with any person, corporation or
26 public agency (including any member municipality, public water
27 district, township, or county) for that purpose. Any such
28 contract made by an Agency for a supply of water may contain
29 provisions whereby the Agency is obligated to pay for the
30 supply of water without setoff or counterclaim and irrespective
31 of whether the supply of water is ever furnished, made
32 available or delivered to the Agency or whether any project for
33 the supply of water contemplated by any such contract is
34 completed, operable or operating and notwithstanding any
35 suspension, interruption, interference, reduction or
36 curtailment of the supply of water from such project. Any such

 

 

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1 contract may provide that if one or more of the other
2 purchasers defaults in the payment of its obligations under
3 such contract or a similar contract made with the supplier of
4 the water one or more of the remaining purchasers party to such
5 contract or such similar contract shall be required to pay for
6 all or a portion of the obligations of the defaulting
7 purchasers. No such contract may have a term in excess of 50
8 years.
9     A Municipal Joint Action Water Agency shall have the power
10 to sell water and to enter into contracts with any person,
11 corporation or public agency (including any member
12 municipality, any public water district, any township, any body
13 corporate and politic, or any county on behalf of a county
14 service area as set forth in this Section) for that purpose. No
15 such contract may have a term in excess of 50 years. Any such
16 contract entered into to sell water to a public agency may
17 provide that the payments to be made thereunder by such public
18 agency shall be made solely from revenues to be derived by such
19 public agency from the operation of its waterworks system or
20 its combined waterworks and sewerage system. Any public agency
21 so contracting to purchase water shall establish from time to
22 time such fees and charges for its water service or combined
23 water and sewer service as will produce revenues sufficient at
24 all times to pay its obligations to the Agency under the
25 purchase contract. Any such contract so providing shall not
26 constitute indebtedness of such public agency so contracting to
27 buy water within the meaning of any statutory or constitutional
28 limitation. Any such contract of a public agency to buy water
29 shall be a continuing, valid and binding obligation of such
30 public agency payable from such revenues.
31     A Municipal Joint Action Water Agency shall establish fees
32 and charges for the purchase of water from it or for the use of
33 its facilities. No prior appropriation shall be required by
34 either the Municipal Joint Action Water Agency or any public
35 agency before entering into any contract authorized by this
36 paragraph (d).

 

 

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1     The changes in this Section made by this amendatory Act of
2 1984 are intended to be declarative of existing law.
3     (e) 1. A Municipal Joint Action Water Agency established
4 pursuant to this Section 3.1 may, from time to time, borrow
5 money and, in evidence of its obligation to repay the
6 borrowing, issue its negotiable water revenue bonds or notes
7 pursuant to this paragraph (e) for any of the following
8 purposes: for paying costs of constructing, acquiring,
9 improving or extending a joint waterworks or water supply
10 system; for paying other expenses incident to or incurred in
11 connection with such construction, acquisition, improvement or
12 extension; for repaying advances made to or by the Agency for
13 such purposes; for paying interest on the bonds or notes until
14 the estimated date of completion of any such construction,
15 acquisition, improvement or extension and for such period after
16 the estimated completion date as the Board of Directors of the
17 Agency shall determine; for paying financial, legal,
18 administrative and other expenses of the authorization,
19 issuance, sale or delivery of bonds or notes; for paying costs
20 of insuring payment of the bonds or notes; for providing or
21 increasing a debt service reserve fund with respect to any or
22 all of the Agency's bonds or notes; and for paying, refunding
23 or redeeming any of the Agency's bonds or notes before, after
24 or at their maturity, including paying redemption premiums or
25 interest accruing or to accrue on such bonds or notes being
26 paid or redeemed or for paying any other costs in connection
27 with any such payment or redemption.
28     2. Any bonds or notes issued pursuant to this paragraph (e)
29 by a Municipal Joint Action Water Agency shall be authorized by
30 a resolution of the Board of Directors of the Agency adopted by
31 the affirmative vote of Directors from a majority of the member
32 municipalities, public water districts, townships, bodies
33 corporate and politic, and counties, and any additional
34 requirements as may be set forth in the agreement establishing
35 the Agency. The authorizing resolution may be effective
36 immediately upon its adoption. The authorizing resolution

 

 

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1 shall describe in a general way any project contemplated to be
2 financed by the bonds or notes, shall set forth the estimated
3 cost of the project and shall determine its period of
4 usefulness. The authorizing resolution shall determine the
5 maturity or maturities of the bonds or notes, the rate or rates
6 at which the bonds or notes are to bear interest and all the
7 other terms and details of the bonds or notes. All such bonds
8 or notes shall mature within the period of estimated usefulness
9 of the project with respect to which such bonds or notes are
10 issued, as determined by the Board of Directors, but in any
11 event not more than 50 years from their date of issue. The
12 bonds and notes may bear interest, payable at such times, at a
13 rate or rates not exceeding the maximum rate established in the
14 Bond Authorization Act, as from time to time in effect. Bonds
15 or notes of a Municipal Joint Action Water Agency shall be sold
16 in such manner as the Board of Directors of the Agency shall
17 determine, either at par or at a premium or discount, but such
18 that the effective interest cost (excluding any redemption
19 premium) to the Agency of the bonds or notes shall not exceed a
20 rate equal to the rate of interest specified in the Act
21 referred to in the preceding sentence.
22     The resolution authorizing the issuance of any bonds or
23 notes pursuant to this paragraph (e) shall constitute a
24 contract with the holders of the bonds and notes. The
25 resolution may contain such covenants and restrictions with
26 respect to the purchase or sale of water by the Agency and the
27 contracts for such purchases or sales, the operation of the
28 joint waterworks system or water supply system, the issuance of
29 additional bonds or notes by the Agency, the security for the
30 bonds and notes, and any other matters, as may be deemed
31 necessary or advisable by the Board of Directors to assure the
32 payment of the bonds or notes of the Agency.
33     3. The resolution authorizing the issuance of bonds or
34 notes by a Municipal Joint Action Water Agency shall pledge and
35 provide for the application of revenues derived from the
36 operation of the Agency's joint waterworks or water supply

 

 

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1 system (including from contracts for the sale of water by the
2 Agency) and investment earnings thereon to the payment of the
3 cost of operation and maintenance of the system (including
4 costs of purchasing water), to provision of adequate
5 depreciation, reserve or replacement funds with respect to the
6 system or the bonds or notes, and to the payment of principal,
7 premium, if any, and interest on the bonds or notes of the
8 Agency (including amounts for the purchase of such bonds or
9 notes). The resolution shall provide that revenues of the
10 Municipal Joint Action Water Agency so derived from the
11 operation of the system, sufficient (together with other
12 receipts of the Agency which may be applied to such purposes)
13 to provide for such purposes, shall be set aside as collected
14 in a separate fund or funds and used for such purposes. The
15 resolution may provide that revenues not required for such
16 purposes may be used for any proper purpose of the Agency or
17 may be returned to member municipalities.
18     Any notes of a Municipal Joint Action Water Agency issued
19 in anticipation of the issuance of bonds by it may, in
20 addition, be secured by a pledge of proceeds of bonds to be
21 issued by the Agency, as specified in the resolution
22 authorizing the issuance of such notes.
23     4. (i) Except as provided in clauses (ii) and (iii) of this
24 subparagraph 4 of this paragraph (e), all bonds and notes of
25 the Municipal Joint Action Water Agency issued pursuant to this
26 paragraph (e) shall be revenue bonds or notes. Such revenue
27 bonds or notes shall have no claim for payment other than from
28 revenues of the Agency derived from the operation of its joint
29 waterworks or water supply system (including from contracts for
30 the sale of water by the Agency) and investment earnings
31 thereon, from bond or note proceeds and investment earnings
32 thereon, or from such other receipts of the Agency as the
33 agreement establishing the Agency may authorize to be pledged
34 to the payment of revenue bonds or notes, all as and to the
35 extent as provided in the resolution of the Board of Directors
36 authorizing the issuance of the revenue bonds or notes. Revenue

 

 

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1 bonds or notes issued by a Municipal Joint Action Water Agency
2 pursuant to this paragraph (e) shall not constitute an
3 indebtedness of the Agency or of any member municipality,
4 public water district, township, or county within the meaning
5 of any constitutional or statutory limitation. It shall be
6 plainly stated on each revenue bond and note that it does not
7 constitute an indebtedness of the Municipal Joint Action Water
8 Agency or of any member municipality, public water district,
9 township, or county within the meaning of any constitutional or
10 statutory limitation.
11     (ii) If the Agreement so provides and subject to the
12 referendum provided for in clause (iii) of this subparagraph 4
13 of this paragraph (e), the Municipal Joint Action Water Agency
14 may borrow money for corporate purposes on the credit of the
15 Municipal Joint Action Water Agency, and issue general
16 obligation bonds therefor, in such amounts and form and on such
17 conditions as it shall prescribe, but shall not become indebted
18 in any manner or for any purpose in an amount including
19 existing indebtedness in the aggregate which exceeds 5.75% of
20 the aggregate value of the taxable property within the
21 boundaries of the participating municipalities, public water
22 districts, townships, and county service areas within a member
23 county determined by the governing body of the county by
24 resolution to be served by the Municipal Joint Action Water
25 Agency (including any territory added to the Agency after the
26 issuance of such general obligation bonds), collectively
27 defined as the "Service Area", as equalized and assessed by the
28 Department of Revenue and as most recently available at the
29 time of the issue of said bonds. Before or at the time of
30 incurring any such general obligation indebtedness, the
31 Municipal Joint Action Water Agency shall provide for the
32 collection of a direct annual tax, which shall be unlimited as
33 to rate or amount, sufficient to pay the interest on such debt
34 as it falls due and also to pay and discharge the principal
35 thereof at maturity, which shall be within 40 years after the
36 date of issue thereof. Such tax shall be levied upon and

 

 

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1 collected from all of the taxable property within the
2 territorial boundaries of such Service Area at the time of the
3 referendum provided for in clause (iii) and shall be levied
4 upon and collected from all taxable property within the
5 boundaries of any territory subsequently added to the Service
6 Area. Dissolution of the Municipal Joint Action Water Agency
7 for any reason shall not relieve the taxable property within
8 such Service Area from liability for such tax. Liability for
9 such tax for property transferred to or released from such
10 Service Area shall be determined in the same manner as for
11 general obligation bonds of such county, if in an
12 unincorporated area, and of such municipality, if within the
13 boundaries thereof. The clerk or other officer of the Municipal
14 Joint Action Water Agency shall file a certified copy of the
15 resolution or ordinance by which such bonds are authorized to
16 be issued and such tax is levied with the County Clerk or
17 Clerks of the county or counties containing the Service Area,
18 and such filing shall constitute, without the doing of any
19 other act, full and complete authority for such County Clerk or
20 Clerks to extend such tax for collection upon all the taxable
21 property within the Service Area subject to such tax in each
22 and every year, as required, in amounts sufficient to pay the
23 principal of and interest on such bonds, as aforesaid, without
24 limit as to rate or amount. Such tax shall be in addition to
25 and in excess of all other taxes authorized to be levied by the
26 Municipal Joint Action Water Agency or by such county,
27 municipality, township, or public water district. The issuance
28 of such general obligation bonds shall be subject to the other
29 provisions of this paragraph (e), except for the provisions of
30 clause (i) of this subparagraph 4.
31     (iii) No issue of general obligation bonds of the Municipal
32 Joint Action Water Agency (except bonds to refund an existing
33 bonded indebtedness) shall be authorized unless the Municipal
34 Joint Action Water Agency certifies the proposition of issuing
35 such bonds to the proper election authorities, who shall submit
36 the proposition to the voters in the Service Area at an

 

 

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1 election in accordance with the general election law, and the
2 proposition has been approved by a majority of those voting on
3 the proposition.
4     The proposition shall be substantially in the following
5 form:
6 -------------------------------------------------------------
7     Shall general obligation
8 bonds for the purpose of (state
9 purpose), in the sum not to
10 exceed $....(insert amount),                Yes
11 be issued by the .........           ------------------------
12 (insert corporate name of the               No
13 Municipal Joint Action Water
14 Agency)?
15 -------------------------------------------------------------
16     5. As long as any bonds or notes of a Municipal Joint
17 Action Water Agency created pursuant to this Section 3.1 are
18 outstanding and unpaid, the Agency shall not terminate or
19 dissolve and, except as permitted by the resolution or
20 resolutions authorizing outstanding bonds or notes, no member
21 municipality, public water district, township, or county may
22 withdraw from the Agency. While any such bonds or notes are
23 outstanding, all contracts for the sale of water by the Agency
24 to member municipalities, public water districts, townships,
25 or counties shall be irrevocable except as permitted by the
26 resolution or resolutions authorizing such bonds or notes. The
27 Agency shall establish fees and charges for its operations
28 sufficient to provide adequate revenues to meet all of the
29 requirements under its various resolutions authorizing bonds
30 or notes.
31     6. A holder of any bond or note issued pursuant to this
32 paragraph (e) may, in any civil action, mandamus or other
33 proceeding, enforce and compel performance of all duties
34 required to be performed by the Agency or such counties, as
35 provided in the authorizing resolution, or by any of the public
36 agencies contracting with the Agency to purchase water,

 

 

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1 including the imposition of fees and charges, the collection of
2 sufficient revenues and the proper application of revenues as
3 provided in this paragraph (e) and the levying, extension and
4 collection of such taxes.
5     7. In addition, the resolution authorizing any bonds or
6 notes issued pursuant to this paragraph (e) may provide for a
7 pledge, assignment, lien or security interest, for the benefit
8 of the holders of any or all bonds or notes of the Agency, (i)
9 on any or all revenues derived from the operation of the joint
10 waterworks or water supply system (including from contracts for
11 the sale of water) and investment earnings thereon or (ii) on
12 funds or accounts securing the payment of the bonds or notes as
13 provided in the authorizing resolution. In addition, such a
14 pledge, assignment, lien or security interest may be made with
15 respect to any receipts of the Agency which the agreement
16 establishing the Agency authorizes it to apply to payment of
17 bonds or notes. Any such pledge, assignment, lien or security
18 interest for the benefit of holders of bonds or notes shall be
19 valid and binding from the time the bonds or notes are issued,
20 without any physical delivery or further act, and shall be
21 valid and binding as against or prior to any claims of any
22 other party having any claims of any kind against the Agency
23 irrespective of whether such other parties have notice of such
24 pledge, assignment, lien or security interest.
25     A resolution of a Municipal Joint Water Agency authorizing
26 the issuance of bonds or notes pursuant to this paragraph (e)
27 may provide for the appointment of a corporate trustee with
28 respect to any or all of such bonds or notes (which trustee may
29 be any trust company or state or national bank having the power
30 of a trust company within Illinois). In that event, the
31 resolution shall prescribe the rights, duties and powers of the
32 trustee to be exercised for the benefit of the Agency and the
33 protection of the holders of such bonds or notes. The
34 resolution may provide for the trustee to hold in trust, invest
35 and use amounts in funds and accounts created as provided in
36 the resolution. The resolution authorizing the bonds or notes

 

 

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1 may provide for the assignment and direct payment to the
2 trustee of amounts owed by public agencies to the Municipal
3 Joint Action Water Agency under water sales contracts for
4 application by the trustee to the purposes for which such
5 revenues are to be used as provided in this paragraph (e) and
6 as provided in the authorizing resolution. Upon receipt of
7 notice of such assignment, the public agency shall thereafter
8 make the assigned payments directly to such trustee.
9     Nothing in this Section authorizes a Joint Action Water
10 Agency to provide water service directly to residents within a
11 municipality or in territory within one mile or less of the
12 corporate limits of a municipality that operates a public water
13 supply unless the municipality has consented in writing to such
14 service being provided.
15 (Source: P.A. 90-210, eff. 7-25-97; 90-595, eff. 1-1-99;
16 91-134, eff. 1-1-00.)
 
17     Section 10. The Illinois Municipal Code is amended by
18 adding Section 11-124-5 as follows:
 
19     (65 ILCS 5/11-124-5 new)
20     Sec. 11-124-5. Acquisition of water systems by eminent
21 domain.
22     (a) In addition to other provisions providing for the
23 acquisition of water systems or water works, whenever a public
24 utility subject to the Public Utilities Act utilizes public
25 property (including, but not limited to, right-of-way) of a
26 municipality for the installation or maintenance of all or part
27 of its water distribution system, the municipality has the
28 right to exercise eminent domain to acquire the entirety of the
29 water system, in accordance with this Section. Unless it
30 complies with the provisions set forth in this Section, a
31 municipality is not permitted to acquire by eminent domain that
32 portion of a system located in another incorporated
33 municipality without agreement of that municipality, but this
34 provision shall not prevent the acquisition of that portion of

 

 

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1 the water system existing within the acquiring municipality.
2     (b) Where a water system that is owned by a public utility
3 (as defined in the Public Utilities Act) provides water to
4 customers located entirely in 2 or more municipalities, the
5 system may be acquired by either or both of the municipalities
6 by eminent domain if there is in existence an intergovernmental
7 agreement between the municipalities served providing for
8 acquisition.
9     (c) If a water system that is owned by a public utility
10 provides water to customers located in one or more adjacent
11 municipalities and also to customers in an unincorporated area
12 and if at least 70% of the customers of the system or portion
13 thereof are located within the municipality or municipalities,
14 then the system, or portion thereof as determined by the
15 corporate authorities, may be acquired, using eminent domain or
16 otherwise, by either a municipality under subsection (a) or an
17 entity created by agreement between municipalities where at
18 least 70% of the customers reside. For the purposes of
19 determining "customers of the system", only retail customers
20 directly billed by the company shall be included in the
21 computation. The number of customers of the system most
22 recently reported to the Illinois Commerce Commission for any
23 calendar year preceding the year a resolution is passed by a
24 municipality or municipalities expressing preliminary intent
25 to purchase the water system or portion thereof shall be
26 presumed to be the total number of customers within the system.
27 The public utility shall provide information relative to the
28 number of customers within each municipality and within the
29 system within 60 days of any such request by a municipality.
30     (d) In the case of acquisition by a municipality or
31 municipalities or entity created by law to own or operate a
32 water system under this Section, service must be provided to
33 all retail customers of the system at the time of acquisition
34 without discrimination in rates based on whether the customer
35 is located within or outside the boundaries of the acquiring
36 municipality or municipalities or entity.

 

 

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1     (e) For the purposes of this Section, "system" includes all
2 assets reasonably necessary to provide water service to a
3 contiguous or compact geographical service area and include,
4 but are not limited to, interests in real estate, all wells,
5 pipes, treatment plants, pumps and other physical apparatus,
6 data and records of facilities and customers, fire hydrants,
7 equipment, or vehicles and also includes service agreements and
8 obligations derived from use of the assets, whether or not the
9 assets are contiguous to the municipality, municipalities, or
10 entity created for the purpose of owning or operating a water
11 system.
12     (f) After a municipality adopts a resolution of intent to
13 study the feasibility of purchasing any water system or
14 waterworks, the municipality is entitled to review and inspect
15 all of the financial and other records and both tangible and
16 intangible assets of the utility related to the operation of
17 the system or waterworks in order to determine the feasibility
18 of the purchase. The utility must cooperate with any reasonable
19 request by the municipality related to the municipality's study
20 of the feasibility of the purchase. Additionally, the utility
21 must make its employees or employees of related corporations or
22 service providers available to the municipality in order to
23 respond to inquiries related to the purchase. Information
24 obtained by the municipality under this Section is not a public
25 record and must be treated as confidential by the municipality
26 and used only for the purpose of determining the feasibility of
27 the purchase of the water system or waterworks.
28     (g) The valuation of all systems or waterworks acquired
29 under this Section and any other Division of this Article 11
30 may be pursuant to the formulas set forth in Section 11-139-12.
31 In determining just compensation for a water system or
32 waterworks system in an eminent domain action under this
33 Section, the court may consider the amount of any land
34 donations, impact fees, or similar payments by parties other
35 than the utility used in the construction of the system or
36 waterworks.

 

 

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1     (h) Notwithstanding any other provision of law, the
2 Illinois Commerce Commission has no approval authority of any
3 eminent domain action brought by any governmental entity or
4 combination of such entities to acquire water systems or
5 waterworks.
 
6     Section 15. The Code of Civil Procedure is amended by
7 changing Section 7-102 as follows:
 
8     (735 ILCS 5/7-102)  (from Ch. 110, par. 7-102)
9     Sec. 7-102. Parties. Where the right to take private
10 property for public use, without the owner's consent or the
11 right to construct or maintain any public road, railroad,
12 plankroad, turnpike road, canal or other public work or
13 improvement, or which may damage property not actually taken
14 has been heretofore or shall hereafter be conferred by general
15 law or special charter upon any corporate or municipal
16 authority, public body, officer or agent, person, commissioner
17 or corporation and the compensation to be paid for or in
18 respect of the property sought to be appropriated or damaged
19 for the purposes mentioned cannot be agreed upon by the parties
20 interested, or in case the owner of the property is incapable
21 of consenting, or the owner's name or residence is unknown, or
22 the owner is a nonresident of the state, the party authorized
23 to take or damage the property so required, or to construct,
24 operate and maintain any public road, railroad, plankroad,
25 turnpike road, canal or other public work or improvement, may
26 apply to the circuit court of the county where the property or
27 any part thereof is situated, by filing with the clerk a
28 complaint, setting forth, by reference, his, her or their
29 authority in the premises, the purpose for which the property
30 is sought to be taken or damaged, a description of the
31 property, the names of all persons interested therein as owners
32 or otherwise as appearing of record, if known, or if not known
33 stating that fact and praying such court to cause the
34 compensation to be paid to the owner to be assessed. If it

 

 

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1 appears that any person not in being, upon coming into being,
2 is, or may become or may claim to be, entitled to any interest
3 in the property sought to be appropriated or damaged the court
4 shall appoint some competent and disinterested person as
5 guardian ad litem, to appear for and represent such interest in
6 the proceeding and to defend the proceeding on behalf of the
7 person not in being, and any judgment entered in the proceeding
8 shall be as effectual for all purposes as though the person was
9 in being and was a party to the proceeding. If the proceeding
10 seeks to affect the property of persons under guardianship, the
11 guardians shall be made parties defendant. Persons interested,
12 whose names are unknown, may be made parties defendant by the
13 same descriptions and in the same manner as provided in other
14 civil cases. Where the property to be taken or damaged is a
15 common element of property subject to a declaration of
16 condominium ownership pursuant to the Condominium Property Act
17 or of a common interest community, the complaint shall name the
18 unit owners' association in lieu of naming the individual unit
19 owners and lienholders on individual units. Unit owners,
20 mortgagees and other lienholders may intervene as parties
21 defendant. For the purposes of this Section "common interest
22 community" shall have the same meaning as set forth in
23 subsection (c) of Section 9-102 of the Code of Civil Procedure.
24 "Unit owners' association" or "association" shall refer to both
25 the definition contained in Section 2 of the Condominium
26 Property Act and subsection (c) of Section 9-102 of the Code of
27 Civil Procedure. Where the property is sought to be taken or
28 damaged by the state for the purposes of establishing,
29 operating or maintaining any state house or state charitable or
30 other institutions or improvements, the complaint shall be
31 signed by the governor or such other person as he or she shall
32 direct, or as is provided by law. No property, except property
33 described in either Section 3 of the Sports Stadium Act,
34 property to be acquired in furtherance of actions under or
35 Article 11, Divisions 124, 126, 128, 130, 135, 136, and
36 Division 139, of the Illinois Municipal Code, property to be

 

 

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1 acquired in furtherance of actions under Section 3.1 of the
2 Intergovernmental Cooperation Act, property that is a water
3 system or waterworks pursuant to the home rule powers of a unit
4 of local government, and property described as Site B in
5 Section 2 of the Metropolitan Pier and Exposition Authority
6 Act, belonging to a railroad or other public utility subject to
7 the jurisdiction of the Illinois Commerce Commission may be
8 taken or damaged, pursuant to the provisions of Article VII of
9 this Act, without the prior approval of the Illinois Commerce
10 Commission. This amendatory Act of 1991 (Public Act 87-760) is
11 declaratory of existing law and is intended to remove possible
12 ambiguities, thereby confirming the existing meaning of the
13 Code of Civil Procedure and of the Illinois Municipal Code in
14 effect before January 1, 1992 (the effective date of Public Act
15 87-760).
16 (Source: P.A. 89-683, eff. 6-1-97; 90-6, eff. 6-3-97.)