Illinois General Assembly - Full Text of SB0280
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Full Text of SB0280  102nd General Assembly

SB0280enr 102ND GENERAL ASSEMBLY

  
  
  

 


 
SB0280 EnrolledLRB102 12409 AWJ 17746 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5adding 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
10be 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
13that:
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.
3Municipalities may enter into joint efforts to acquire,
4develop, and operate a waterworks system or a common source of
5supply of water, or both, through intergovernmental
6cooperation in a regional water commission as provided in this
7Division.
 
8    (65 ILCS 5/11-135.5-15 new)
9    Sec. 11-135.5-15. Establishment of commission; members;
10initial costs and funding.
11    (a) Establishment of commission. Two or more
12municipalities, at least one of which is located in whole or in
13part in the county of Cook, Kane, Kendall, Lake, McHenry, or
14Will and has 140,000 or more inhabitants at the time of
15establishment of a regional water commission, excluding cities
16of 500,000 or more inhabitants, may acquire, either by
17purchase or construction, a waterworks system or a common
18source of supply of water, or both, and may operate jointly a
19waterworks system or a common source of supply of water, or
20both, and improve and extend the same, as provided in this
21Division. The municipality meeting the requirement to have
22140,000 or more inhabitants as required by this paragraph must
23have attained that population as of the effective date of this
24amendatory Act of the 102nd General Assembly.
25    The corporate authorities of the municipalities desiring

 

 

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1to avail themselves of the provisions of this Division shall
2establish a regional water commission by adopting an ordinance
3determining and electing to acquire and operate jointly a
4waterworks system or a common source of supply of water, or
5both, as the case may be, and approving an intergovernmental
6agreement among the municipalities establishing the regional
7water commission. This agreement may be amended at any time
8upon the adoption of concurring ordinances by the corporate
9authorities of all member municipalities.
10    (b) Addition or withdrawal of members; dissolution. The
11agreement may provide for additional municipalities to join
12the commission upon adoption of an ordinance by the corporate
13authorities of the joining municipality and, upon such
14consents, conditions, and approvals of the board of
15commissioners and of existing member municipalities as shall
16be provided in the agreement. The agreement shall provide the
17manner and terms on which a municipality may withdraw from
18membership in the commission and on which the commission may
19terminate and dissolve in whole or in part.
20    (c) Filing of agreement. Promptly upon entering into the
21agreement or any amendment to it, a copy of such agreement or
22amendment shall be filed in the office of the Secretary of
23State. Promptly upon the addition or withdrawal of a
24municipality, or, upon the dissolution of the commission, that
25fact shall be certified by an officer of the commission to the
26Secretary of State.

 

 

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1    (d) Development costs. A municipality whose corporate
2authorities adopted an ordinance and approved an
3intergovernmental agreement to acquire and operate jointly a
4waterworks system or a common source of supply of water, or
5both, as the case may be, under the provisions of this
6Division, may from time to time pay, advance, or obligate
7itself to the commission to bear a proportionate share of the
8development costs, including principal and interest, of any
9project proposed by the commission, including plans,
10feasibility reports, and engineering, even if the project is
11never constructed or water is never supplied by the commission
12to such municipality.
13    Whenever the corporate authorities of a municipality
14determine that the municipality will pay, advance, or be
15obligated for its proportionate share of development costs as
16provided in this subsection, they shall adopt an ordinance
17declaring their intention that the municipality will do so,
18fix the maximum amount of the municipality's share of the cost
19the municipality proposes to pay or that the municipality will
20advance or to obligate the municipality for, the period over
21which it is proposed to pay the obligation (not exceeding 10
22years), and the maximum amount to be paid annually, if such
23obligation is to be paid in installments. The time of payment
24of any such installment obligation may be extended for a
25period not exceeding 10 years from the final maturity date of
26the original obligation. On and after the date such ordinance

 

 

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1becomes effective, the municipality shall include an amount
2sufficient to pay the annual installments of its obligation
3each year in the next succeeding appropriation ordinances. The
4commission may require that if any such municipality whose
5corporate authorities determined to pay, to advance, or to
6obligate the municipality to the commission for development
7costs defaults in such payments, advances, or obligations,
8then the remaining municipalities whose corporate authorities
9have determined to pay, to advance, or to obligate the
10respective municipalities to the commission for development
11costs will be required to pay for all or a portion of the
12payments, advances by, or obligations of the defaulting
13municipality. No prior appropriation shall be required for the
14corporate authorities of a municipality to authorize the
15payments, advances, or obligations herein provided for.
16    Whenever the corporate authorities of a municipality have
17obligated the municipality for development costs as herein
18provided and after the effective date of the ordinance under
19which the municipality became obligated for a specific amount
20for development costs of a project and after approval of such
21obligation by the commission, the commission is authorized to
22borrow funds temporarily for payment of such development costs
23in advance of permanent financing. The commission may from
24time to time and pursuant to an appropriate ordinance or
25resolution borrow money and issue its interim notes to
26evidence borrowings for such purpose, including all necessary

 

 

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1and incidental expenses in connection therewith.
2    An ordinance or resolution authorizing the issuance of
3such notes shall describe the project and the development
4costs to be undertaken and specify the principal amount, rate
5of interest as authorized under Section 2 of the Bond
6Authorization Act, and the maturity date, which shall coincide
7with the due date of the obligations or the installments
8thereof incurred by the respective municipalities pursuant to
9this Section not, however, to exceed 10 years from date.
10    Contemporaneously with the issuance of revenue bonds under
11Section 11-135.5-30, all outstanding interim notes issued for
12development costs of a project though they have not then
13matured shall be paid, both principal and interest to date of
14payment, from funds derived from the sale of revenue bonds for
15the permanent financing of any such project for which interim
16notes may have been issued and such interim notes shall be
17surrendered and cancelled, or, in the alternative, the
18commission may determine to pay such interim notes out of
19receipts from other sources available to the commission,
20including grants and loans.
21    Whenever a member municipality has incurred development
22costs for a project and has advanced funds or otherwise
23obligated itself for the payment of such costs, the commission
24is authorized to accept assignment of such debt instruments
25and the payment obligations thereunder and to thereafter make
26all necessary payments to meet such obligations out of

 

 

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1receipts from other sources available to the commission,
2including grants and loans.
3    As used in this subsection, "development costs" means the
4costs of development of a project, including debt incurred and
5principal and interest payments, whether incurred by the
6commission or a member municipality.
7    (e) Construction and operating costs. A municipality, the
8corporate authorities of which adopted an ordinance and
9approved an intergovernmental agreement to acquire and operate
10jointly a waterworks system or a common source of supply of
11water, or both, as the case may be, under the provisions of
12this Division, may from time to time pay, advance, or obligate
13itself to the commission to bear a proportionate share of the
14construction and operating costs of any project proposed by
15the commission.
16    Whenever the corporate authorities of a municipality
17determine that the municipality will pay, advance, or be
18obligated for its proportionate share of construction or
19operating costs as above provided, they shall adopt an
20ordinance declaring their intention to do so, fix the maximum
21amount of the municipality's share of the cost it proposes to
22pay, to advance, or to obligate itself for, fix the period over
23which it is proposed to pay the obligation, and state the
24maximum amount to be paid annually, if such obligation is to be
25paid in installments. On and after the date such ordinance
26becomes effective, the municipality shall include an amount

 

 

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1sufficient to pay the annual installments of its obligation
2each year in the next succeeding appropriation ordinances. The
3commission may require that if any such municipality whose
4corporate authorities determined that the municipality will
5pay, advance, or be obligated to the commission for
6construction or operating costs defaults in such payments,
7advances, or obligations, then the remaining municipalities
8whose corporate authorities have determined that the
9municipality will pay, advance, or be obligated to the
10commission for construction or operating costs will be
11required to pay for all or a portion of the payments, advances
12by, or obligations of the defaulting municipality. No prior
13appropriation shall be required for the corporate authorities
14of a municipality to authorize the payments, advances, or
15obligations herein provided for.
16    Whenever a municipality, through its corporate
17authorities, has paid, advanced, or obligated the municipality
18for development, construction, or operating costs as herein
19provided, the commission may contract with the municipality,
20on such terms as may be agreed, for the repayment to the
21municipality by the commission of any payment or advance made
22by the municipality to the commission and to charge, in
23addition to all other charges and rates authorized under this
24Division, such rates and charges for water sold by the
25commission as shall be necessary to provide for such
26repayment. In addition, any payment or advance of such costs

 

 

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1made by a municipality pursuant to this Section may be repaid
2by the commission to the municipality from the proceeds of
3revenue bonds authorized to be issued by the commission
4pursuant to this Division or, in the alternative, the
5commission may determine to pay all or part of such amounts out
6of receipts from other sources available to the commission,
7including grants and loans.
8    Whenever a member municipality has incurred construction
9and operating costs for a project and has advanced funds or
10otherwise obligated itself for the payment of such costs, the
11commission is authorized to accept assignment of such debt
12instruments and the payment obligations thereunder and to
13thereafter make all necessary payments to meet such
14obligations from the proceeds of revenue bonds authorized to
15be issued by the commission pursuant to this Division or, in
16the alternative, the commission may determine to pay all or
17part of such amounts out of receipts from other sources
18available to the commission, including grants and loans.
19    As used in this subsection, "construction and operating
20costs" means the costs of construction and operation of a
21project, including debt incurred and principal and interest
22payments, whether incurred by the commission or a member
23municipality.
24    (f) Commission facilities. A waterworks system or a common
25source of supply of water, or both, purchased or constructed
26by the commission: (1) may be located within or without the

 

 

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1corporate limits of any member municipality; (2) may include,
2or may consist of, without limitation, facilities for
3receiving, storing, and transmitting water from any source for
4supplying water to member municipalities and other purchasers
5of water from the commission; and (3) may include, without
6limitation, facilities that are developed, acquired,
7constructed, extended, or improved by the commission that may
8at any time be owned by another unit of local government if
9such facilities will serve the waterworks system or provide a
10common 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
14ordinance and intergovernmental agreement by the corporate
15authorities of a municipality under this Division, the mayor
16or president, with the approval of the corporate authorities,
17shall appoint a commissioner.
18    (b) Commission. The commissioners so appointed by each of
19the municipalities shall constitute a commission and a
20municipal corporation and a public body politic and corporate
21with the powers and duties specified in this Division. The
22corporate name of the commission and its duration shall be
23provided in the agreement, and in such name the commission may
24contract and be contracted with and sue and be sued. The
25commissioners shall be collectively referred to as a board of

 

 

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1commissioners.
2    (c) Term; qualifications; compensation; bonds. Each
3commissioner appointed by a mayor or president shall be the
4mayor or president or an elected member of the corporate
5authorities of the municipality from which the appointment is
6made. The agreement establishing the commission shall specify
7the period during which a commissioner shall hold office and
8may provide for the appointment of alternate commissioners
9from member municipalities. No commissioner may receive any
10compensation for serving as commissioner. Each commissioner
11shall furnish a bond for the faithful performance of that
12commissioner's official duties. This bond shall not be less
13than $5,000 and its costs shall be paid by the commission.
14    (d) Removal; prohibited interests. Each commissioner may
15be removed by the corporate authorities of the municipality
16from which the commissioner was appointed for any cause for
17which any municipal officer may be removed. No commissioner or
18employee of the commission and no mayor, president, member of
19the corporate authorities, or employee of any of the
20municipalities shall be interested, directly or indirectly, in
21any contract or job of work or materials, or the profits
22thereof, or services to be performed for or by the commission.
23    (e) Violations. A violation of this Section is a Class C
24misdemeanor. A conviction is cause for the removal of a person
25from 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
4electing a chair from among its own members and shall elect
5persons, who need not be commissioners, to such other offices
6as shall be designated in the agreement. It shall adopt its own
7bylaws, rules, and regulations and provide for its meetings.
8The commission has full and complete supervision, management,
9and control of the waterworks system or the common source of
10supply of water, or both, as provided in the agreement and
11ordinances for acquiring and operating the same, and in their
12maintenance, operation, and extension. The board of
13commissioners shall determine the general policy of the
14commission, shall approve the annual budget, shall make all
15appropriations (which may include appropriations made at any
16time in addition to those made in any annual appropriation
17document), shall approve all contracts for the purchase or
18sale of water, shall adopt ordinances or resolutions providing
19for the issuance of bonds or notes by the commission, shall
20adopt its bylaws, rules, and regulations, and shall have such
21other powers and duties as may be prescribed in the agreement.
22Such agreement may further specify the voting and approval
23requirements for actions regarding the commission's powers and
24duties, including those powers and actions of the commission
25which shall be authorized only upon votes of greater than a
26majority of all commissioners or only upon consents of the

 

 

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1corporate authorities of a certain number of member
2municipalities, or both.
3    The agreement may provide for the establishment of a
4technical advisory committee to consist of a municipal
5employee member from each member municipality as designated by
6ordinance or other official action, from time to time by the
7corporate authorities of the member municipality, and having
8the qualifications as prescribed in the agreement, and also
9may provide for such functions and duties of the committee as
10will support the efficient administration and operation of the
11commission.
12    The board of commissioners may establish other committees
13from time to time, consisting of either members of the board or
14members who are municipal employees from each member
15municipality, in order to support the efficient administration
16and operation of the commission.
17    (b) Water contracts to acquire water supply. A commission
18may contract to acquire a supply of water on such terms and
19conditions as it finds in the best interests of the commission
20for a period not exceeding 101 years. A commission may
21contract with any person, corporation, political subdivision,
22municipal corporation, or other governmental or
23non-governmental entity for a supply of water, and any such
24political subdivision, municipal corporation, or other
25governmental entity is authorized to enter into such a
26contract with the commission. A commission may accept from a

 

 

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1municipality that is a member of the commission the assignment
2of a contract to acquire a supply of water and to accept and
3perform the duties and obligations and make all payments
4required pursuant to such assigned contract.
5    A contract made by or assigned to a commission for a supply
6of water may contain provisions whereby the commission is
7obligated to pay for such supply of water without setoff or
8counterclaim and irrespective of whether such supply of water
9is ever furnished, made available, or delivered to the
10commission or whether any project for the supply of water
11contemplated by the contract is completed, operable, or
12operating and notwithstanding any suspension, interruption,
13interference, reduction, or curtailment of the supply of water
14from such project.
15    No prior appropriation shall be required before entering
16into or accepting assignment of such contract, and no
17appropriation shall be required to authorize payments to be
18made under the terms of the contract, notwithstanding any
19provision of this Code to the contrary. The contract shall not
20be a debt within the meaning of any statutory or
21constitutional limitations.
22    (c) Water contracts to provide water supply to members.
23The commission is authorized to contract with the
24municipalities which established the commission, and with
25other municipalities that have become members pursuant to the
26process established in the intergovernmental agreement, for a

 

 

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1supply of water to those municipalities, for a period not
2exceeding 101 years, and those municipalities are authorized
3to enter into such contracts with the commission.
4    Any such contract made by a commission and any such
5municipalities to supply water may contain provisions whereby
6the purchasing municipality is obligated to pay for such
7supply of water without setoff or counterclaim and
8irrespective of whether such supply of water is ever
9furnished, made available, or delivered to the purchasing
10municipality or whether any project for the supply of water
11contemplated by any such contract is completed, operable, or
12operating and notwithstanding any suspension, interruption,
13interference, reduction, or curtailment of the supply of water
14from such project. Any such contract may provide that if one or
15more of the other purchasers' defaults in the payment of its
16obligations under the contract or similar contract made with
17the supplier of the water, the remaining purchasers party to
18such contract or such similar contract shall be required to
19pay for all or a portion of the obligations of the defaulting
20purchaser. Each municipality that enters into such a contract
21shall be obligated and have the duty to include an amount
22sufficient to pay the annual amount of its obligation each
23year in the next succeeding appropriation ordinances. No prior
24appropriation shall be required for a municipality to
25authorize the payments, advances, or obligations provided for
26in such contracts or this subsection.

 

 

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1    (d) Water contracts to provide water supply to nonmembers
2and extend system. A commission may supply water to and
3contract with a person, corporation, political subdivision,
4municipal corporation, or other governmental or
5non-governmental entity, in addition to the municipalities
6which have formed the commission and other municipalities that
7have become members pursuant to the process established in the
8intergovernmental agreement, and to construct water
9transmission and distribution lines within a radius of 25
10miles outside the corporate limits of member municipalities
11for the purpose of furnishing water to any additional entities
12which contract with the commission for a supply of water, upon
13such payment, terms, and conditions as may be mutually agreed
14upon. Any such contract shall be a continuing, valid, and
15binding obligation of the purchaser for such period of years,
16not to exceed 40, as may be provided in such contract.
17    Any such contract entered into to supply water to a
18municipal corporation or political subdivision shall provide
19that the payments to be made thereunder shall be from the
20revenues to be derived by such municipality or political
21subdivision from the operation of the waterworks system or
22combined waterworks and sewer system of such municipality or
23political subdivision or from receipts from other sources
24available to the municipality or political subdivision,
25including grants and loans. Any such contract made by a
26commission and a purchaser that is such a municipal

 

 

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1corporation or political subdivision to supply water may
2contain provisions whereby the purchaser is obligated to pay
3for such supply of water without setoff or counterclaim and
4irrespective of whether such supply of water is ever
5furnished, made available, or delivered to the purchaser or
6whether any project for the supply of water contemplated by
7any such contract is completed, operable, or operating and
8notwithstanding any suspension, interruption, interference,
9reduction, or curtailment of the supply of water from such
10project. The contract may provide that, if one or more of the
11other purchasers defaults in the payment of its obligations
12under such contract or similar contract made with the supplier
13of the water, the remaining purchasers party to such contract
14or such similar contract shall be required to pay for all or a
15portion of the obligations of the defaulting purchaser. Each
16municipal corporation or political subdivision that enters
17into such a contract shall be obligated and have the duty to
18include an amount sufficient to pay the annual amount of its
19obligation each year in the next succeeding appropriation
20ordinances. No prior appropriation shall be required for a
21municipality or political subdivision to authorize the
22payments, advances, or obligations provided for in such
23contracts or this subsection. Any such contract shall not be a
24debt within the meaning of any statutory or constitutional
25limitations.
26    (e) Additional powers. In addition to any other powers set

 

 

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1forth in this Division and in the agreement, a commission has
2the 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
12time to time issue its revenue bonds in such principal amounts
13as the commission deems necessary to provide sufficient funds
14to carry out any of its corporate purposes and powers,
15including, without limitation: developing, acquiring,
16constructing, extending, or improving a waterworks system or
17common source of supply of water, or any combination thereof;
18the funding or refunding of the principal of, redemption
19premium on, if any, and interest on bonds issued by it, whether
20or not such bonds or interest to be funded or refunded have or
21have not become due; the payment of engineering, legal, and
22other expenses, together with interest to a date one year
23subsequent to the estimated date of completion of the project;
24the establishment or increase of reserves to secure or to pay
25such bonds and interest thereon; the providing of working

 

 

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1capital; and the payment of all other costs or expenses of the
2commission incident to and necessary or convenient to carry
3out its corporate purposes and powers. These bonds shall have
4all the qualities of negotiable instruments under the laws of
5this State and shall not constitute indebtedness of any of the
6municipalities constituting the commission.
7    (b) Source of payment. Every issue of bonds of a
8commission shall be payable out of the revenues to be derived
9pursuant to contracts with the specified municipalities and
10other purchasers of water or by virtue of the operation of any
11properties acquired or to be acquired or constructed. A
12commission may issue such types of bonds as it determines,
13including bonds as to which the principal and interest are
14payable from the revenues from one or more projects, or from an
15interest therein or a right to the products and services
16thereof, or from one or more revenue producing contracts made
17by the commission, or its revenues generally. Any such bonds
18may be additionally secured by a pledge of any grant, subsidy,
19contribution, or other revenue source from the United States,
20the State of Illinois, or any unit of local government, or any
21combination thereof.
22    (c) Receipt of funds by treasurer. Before the treasurer of
23the commission is entitled to receive the proceeds of the sale
24of such a bond issue, the treasurer shall supply a corporate
25surety bond in an amount equivalent to the amount of funds to
26be derived from the sale of the bonds, and, in addition

 

 

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1thereto, the treasurer shall supply a separate corporate
2surety bond for the faithful accounting of any funds that may
3come into that individual's possession in an amount equal to
4the amount of funds likely to come into the treasurer's hands
5in any one year from the revenue to be derived from the
6operation of any of the properties of the commission. The cost
7of these surety bonds shall be paid by the commission. The
8requirement to supply corporate surety bonds under this
9subsection does not apply to the extent that the proceeds of
10the sale of the bonds and other funds are subject to the
11administration of the trustee pursuant to a trust indenture
12with a bank or trust company.
13    (d) Approval process; terms. The revenue bonds shall be
14issued pursuant to an ordinance or resolution, or, in the
15alternative, pursuant to a master trust indenture as well as a
16supplemental trust indenture with each issuance, and may be
17issued in one or more series, and shall bear such date or
18dates, mature at such time or times within the estimated
19period of usefulness of the project involved and, in any
20event, not more than 50 years from the date thereof, bear
21interest at such rate or rates as authorized under Section 2 of
22the Bond Authorization Act, which rates may be fixed or
23variable, be in such denominations, be in such form, either
24coupon or registered, carry such conversion, registration, and
25exchange privileges, have such rank or priority, be executed
26in such manner, be payable in such medium of payment at such

 

 

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1place or places within or without the State, be subject to such
2terms of redemption with or without premium, and contain or be
3subject to such other terms as the ordinance or resolution, or
4the master trust indenture or supplemental trust indenture or
5both, may provide, and shall not be restricted by the
6provisions of any other law limiting the amounts, maturities,
7interest rates, or other terms of obligations of public
8agencies or private persons. The master trust indenture and
9any supplemental trust indenture shall be entered into with a
10bank or trust company within or outside the State having trust
11powers and possessing capital and surplus of not less than
12$50,000,000. The bonds shall be sold in such manner as the
13commission shall determine, at private or public sale. It
14shall not be necessary that the ordinance or resolution, or
15the master trust indenture or supplemental trust indenture or
16both, refer to plans and specifications nor that there be on
17file for public inspection prior to the adoption of such
18ordinance or resolution, or the master trust indenture or
19supplemental trust indenture or both, detailed plans and
20specifications of the project. This ordinance or resolution,
21or the master trust indenture or supplemental trust indenture
22or both, may contain such covenants and restrictions in
23relation to the operation of the properties under the control
24of the commission and the issuance of additional revenue bonds
25thereafter as may be deemed necessary or advisable for the
26assurance of payment of the bonds thereby authorized and as

 

 

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1may be thereafter issued. It shall be plainly stated on each
2bond that it does not constitute an indebtedness of any
3municipality represented by the commission within the meaning
4of any statutory or constitutional limitation. Upon the
5issuance of revenue bonds, the revenue of the commission
6derived pursuant to contracts entered into for the sale of
7water to the municipalities that have formed the commission
8and to other municipalities that have become members pursuant
9to the intergovernmental agreement, as well as contracts
10entered into with other persons, corporations, political
11subdivisions, municipal corporations, or other governmental or
12non-governmental entities and from the operation of its
13properties, shall be accounted for as provided in the
14ordinance or resolution, or the master trust indenture or
15supplemental trust indenture or both, authorizing the issuance
16of the bonds. Any commission created under the provisions of
17this Division may also issue bonds for the purpose of
18providing funds for the payment, refunding, or redemption of
19any of the commission's bonds or notes before, after, or at
20their maturity, including the payment of redemption premiums
21or interest accruing or to accrue on such bonds or notes being
22paid or redeemed, and for the payment of any installments of
23interest accrued or to accrue on any bond or note.
24    (e) No limitation. The provisions of this Section are not
25a 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
3contracts.
4    (a) Revenue fund. Whenever bonds are issued under this
5Division, the revenue received from the operation of the
6properties under the control of the commission shall be set
7aside as collected and deposited in a separate fund to be used
8only (1) in paying the cost of the operation and maintenance of
9those properties, (2) in providing an adequate depreciation
10fund, (3) in paying the principal of and interest upon the
11revenue bonds issued by the commission, as provided by this
12Division, (4) to comply with the covenants of the ordinance or
13resolution, or the master trust indenture or any applicable
14supplemental trust indenture or both, authorizing the issuance
15of such bonds, and (5) to carry out the corporate purposes and
16powers of the commission.
17    (b) Rates and charges for waterworks system. If the
18commission has charge of the operation of a complete
19waterworks system, including the distribution mains, the
20commission shall establish rates and charges for water and the
21use of commission waterworks system facilities, which shall be
22sufficient at all times to pay the cost of operation and
23maintenance, to provide an adequate depreciation fund, to pay
24the principal of and interest upon all revenue bonds issued as
25provided by this Division, to comply with the covenants of the
26ordinance or resolution, or the master trust indenture or any

 

 

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1applicable supplemental trust indenture or both, authorizing
2the issuance of such bonds, and to carry out the corporate
3purposes and powers of the commission. Charges and rates shall
4be established, revised, and maintained by ordinance and
5become payable as the commission may determine by ordinance.
6    (c) Rates and charges for water source of supply. If the
7commission has charge of the operation of a common source of
8supply of water, the municipalities represented by the
9commission shall contract with the commission for water. These
10municipalities shall establish such charges and rates for
11water supplied by them to consumers as will be sufficient at
12all times (1) to pay the cost of operation and maintenance of
13the respective waterworks systems (or combined waterworks and
14sewerage systems) of the municipalities, (2) to provide an
15adequate depreciation fund therefor, (3) to pay the principal
16of and interest on all revenue bonds of the municipalities
17payable from the revenues of the waterworks system (or
18combined waterworks and sewerage system), and (4) to pay the
19charges and rates established by the commission for the sale
20of water by the commission to, and the use of commission
21waterworks system facilities by, those municipalities. The
22commission shall establish such charges and rates for water
23supplied to those municipalities and the use of commission
24waterworks system facilities as will be sufficient at all
25times (1) to pay the cost of operation and maintenance of the
26common source of supply of water, (2) to provide an adequate

 

 

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1depreciation fund therefor, (3) to pay the principal of and
2interest on the revenue bonds issued by the commission, (4) to
3comply with the covenants of the ordinance or resolution, or
4the master trust indenture or any applicable supplemental
5trust indenture or both, authorizing the issuance of such
6bonds, and (5) to carry out the corporate purposes and powers
7of the commission, under the provisions of this Division.
8Contracts entered into between the commission and the
9specified municipalities shall include covenants for the
10establishment of rates and charges as provided in this
11Section.
12    (d) Pension costs. Contributions to a retirement fund or
13other pension alternative authorized by the Illinois Pension
14Code, including, without limitation, the Illinois Municipal
15Retirement Fund, by commissions created under this Division
16which have been included under the retirement fund or other
17pension alternative shall be considered a cost of operation
18and maintenance for the purposes of this Section.
19    (e) Enforcement of obligations. A holder of a bond or of
20any of its coupons issued under this Division, in a civil
21action, mandamus, or other proceeding, may enforce and compel
22performance of all duties required by this Division to be
23performed by such a commission or by any of the
24municipalities, including the making of rates and charges, the
25collecting of sufficient revenue, and the application thereof,
26as provided in this Division.

 

 

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1    (f) Construction contracts. All or any portion of a
2waterworks system or other public improvement of such a
3commission, when the expense thereof will exceed the greater
4of (i) $25,000 or (ii) the amount of expense above which a work
5or public improvement by a municipality must be let to the
6lowest responsible bidder after advertising for bids under
7Section 8-9-1 of this Code, shall be constructed, maintained,
8or repaired either: (1) by a contract let to the lowest
9responsible bidder after advertising for bids, in the manner
10prescribed by the commission's bylaws, rules, and regulations
11and by the vote required as established in the
12intergovernmental agreement pursuant to Section 11-135.5-25;
13or (2) without advertising for bids, if authorized by a vote of
14greater than a majority of all the commissioners as
15established in the intergovernmental agreement pursuant to
16Section 11-135.5-25. The commission's bylaws, rules, and
17regulations shall provide for an alternative procedure for
18emergency procurement if an emergency makes it impracticable
19to follow the procedures in this subsection.
20    (g) Project labor agreement. In connection with a contract
21by a commission for the construction of all or any portion of a
22waterworks system or other public improvement of the
23commission, the commission must enter into a project labor
24agreement with the applicable local building trades council
25prior to the commencement of any and all construction,
26building, renovation, demolition, or any material change to

 

 

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1the 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,
5lease as lessor or lessee, transfer, or dispose of real or
6personal property, or interest therein, and (ii) acquire by
7gift, legacy, or grant any real estate or personal property,
8or rights therein, in all such instances as it deems
9appropriate in the exercise of its powers for its lawful
10purposes, whether the land or personal property is located
11within or outside the boundaries of the members of the
12commission. The commission also may accept any grant, subsidy,
13or contribution from the United States, the State of Illinois,
14a unit of local government, or any other governmental entity,
15or any combination thereof.
16    (b) Private property. Whenever a commission passes an
17ordinance for the construction or acquisition of any
18waterworks properties, or improvements or extension or mains,
19pumping stations, reservoirs, or other appurtenances thereto,
20which such commission is authorized to make, the making of
21which will require that private property be taken or damaged,
22such commission may cause compensation therefor to be
23ascertained and may condemn and acquire possession thereof in
24the same manner as nearly as may be, as provided for the
25exercise of the right of eminent domain under the Eminent

 

 

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1Domain Act. However, proceedings to ascertain the compensation
2to be paid for taking or damaging private property shall be
3instituted in the circuit court of the county where the
4property sought to be taken or damaged is situated.
5    (c) Public property. When a commission created under this
6Division requires that public property be taken or damaged for
7the purposes specified in this Section, the commission may
8condemn and acquire possession of public property and cause
9compensation for such public property to be ascertained in the
10same manner provided for the exercise of the right of eminent
11domain under the Eminent Domain Act while the commission has
12the power to initiate action in the manner provided by Article
1320 of the Eminent Domain Act.
14    (d) Highways and public ground. A commission may
15construct, maintain, alter, and extend its water mains as a
16proper use of highways along, upon, under, and across any
17highway, street, alley, or public ground in the State,
18including highways within a municipality, but so as not to
19inconvenience the public use thereof, and the commission may
20construct, maintain, and operate any conduit or conduits,
21water pipe or pipes, wholly or partially buried or otherwise
22in, upon, and along any of the lands owned by the State and
23under any of the public waters therein. However, the right,
24permission, and authority hereby created shall be subject to
25all public rights of commerce and navigation and the authority
26of the United States in behalf of such public rights and also

 

 

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1the laws of the State to regulate and control the same. Notice
2shall be given to the highway authorities of a municipality,
3county, township, road district, or township district in which
4such highway, street, or public way may be situated at least 60
5days before any construction or installation work in such
6highway or street shall commence. All laws and ordinances
7pertaining to such work for the protection of the public and of
8public property shall be complied with, except that no fee may
9be charged such commission for the construction or
10installation of such facilities in such public places.
11    (e) Surplus property. When, in the opinion of a
12commission, real estate owned by it, however acquired, is no
13longer necessary, appropriate, required for the use of,
14profitable to, or for best interest of the commission, such
15commission may, by resolution, lease such surplus real estate
16for a period not to exceed 99 years or sell such surplus real
17estate, in accordance with procedures established in the
18intergovernmental agreement or bylaws or adopted by resolution
19by such commission.
20    (f) Tax exemption. All property, income, and receipts of
21or transactions by a commission shall be exempt from all
22taxation, the same as if it were the property, income, or
23receipts of or transaction by the member municipalities.
24    (g) Agricultural impact mitigation agreement. For any
25private property that is used for agricultural purposes, as
26defined in Section 1-60 of the Property Tax Code, that is

 

 

SB0280 Enrolled- 31 -LRB102 12409 AWJ 17746 b

1damaged or taken by a commission created under this Division,
2the commission shall enter into an agricultural impact
3mitigation agreement with the Illinois Department of
4Agriculture to ensure any negative impacts to private property
5are properly mitigated.
 
6    (65 ILCS 5/11-135.5-45 new)
7    Sec. 11-135.5-45. Laws not applicable. The provisions of
8this Division: (i) are not subject to Division 135 or Division
9136 of Article 11 of this Code or the Water Commission Act of
101985; and (ii) do not apply to any commission formed or
11operating under Division 135 or Division 136 of Article 11 of
12this Code or the Water Commission Act of 1985.
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.