Illinois General Assembly - Full Text of SB0280
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of SB0280  102nd General Assembly

SB0280ham002 102ND GENERAL ASSEMBLY

Rep. Lawrence Walsh, Jr.

Filed: 10/27/2021

 

 


 

 


 
10200SB0280ham002LRB102 12409 AWJ 30184 a

1
AMENDMENT TO SENATE BILL 280

2    AMENDMENT NO. ______. Amend Senate Bill 280 by replacing
3everything after the enacting clause with the following:
 
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

 

 

10200SB0280ham002- 2 -LRB102 12409 AWJ 30184 a

1    assure a sufficient and economic supply of a source of
2    water of suitable quality within those areas of this State
3    that are dependent on ground water supply from portions of
4    the Cambrian-Ordovician aquifer as well as shallow
5    aquifers, and where those aquifers are expected not to be
6    able to provide a sufficient supply of water or water of
7    suitable quality to one or more municipalities which may
8    be located in more than a single county, and where,
9    because of economic development and population growth and
10    proximity to large urban centers, the health, safety, and
11    welfare of the residents is threatened by the continuing
12    reduction in the amount of ground water and quality of
13    ground water that can be obtained from the aquifers.
14        (2) Because of a need to provide such municipalities a
15    continuing, available, and adequate source and supply of
16    water on an economically viable basis, it is necessary and
17    desirable to establish a different structure for
18    municipalities in the affected region to jointly establish
19    a source of water supply and the necessary waterworks and
20    other supporting facilities as needed to provide a
21    reliable, sustainable, and high-quality source of water on
22    a cost-effective basis.
23        (3) It is not the intent of the General Assembly to
24    interfere with the structure and operation of other water
25    commissions and county water commissions already existing
26    around the State on the effective date of this amendatory

 

 

10200SB0280ham002- 3 -LRB102 12409 AWJ 30184 a

1    Act of the 102nd General Assembly or to interfere with the
2    power of municipalities to provide for the retail
3    distribution of water to its residents or the customers of
4    its water systems.
5        (4) It is in the State's best interest to provide for a
6    sufficient and economic supply of water to such areas.
 
7    (65 ILCS 5/11-135.5-10 new)
8    Sec. 11-135.5-10. Regional water commissions.
9Municipalities may enter into joint efforts to acquire,
10develop, and operate a waterworks system or a common source of
11supply of water, or both, through intergovernmental
12cooperation in a regional water commission as provided in this
13Division.
 
14    (65 ILCS 5/11-135.5-15 new)
15    Sec. 11-135.5-15. Establishment of commission; members;
16initial costs and funding.
17    (a) Establishment of commission. Two or more
18municipalities, at least one of which is located in whole or in
19part in the county of Cook, DuPage, Kane, Kendall, Lake,
20McHenry, or Will and has 140,000 or more inhabitants at the
21time of establishment of a regional water commission,
22excluding cities of 500,000 or more inhabitants, may acquire,
23either by purchase or construction, a waterworks system or a
24common source of supply of water, or both, and may operate

 

 

10200SB0280ham002- 4 -LRB102 12409 AWJ 30184 a

1jointly a waterworks system or a common source of supply of
2water, or both, and improve and extend the same, as provided in
3this Division. The municipality meeting the requirement to
4have 140,000 or more inhabitants as required by this paragraph
5must have attained that population as of the effective date of
6this amendatory Act of the 102nd General Assembly.
7    The corporate authorities of the municipalities desiring
8to avail themselves of the provisions of this Division shall
9establish a regional water commission by adopting an ordinance
10determining and electing to acquire and operate jointly a
11waterworks system or a common source of supply of water, or
12both, as the case may be, and approving an intergovernmental
13agreement among the municipalities establishing the regional
14water commission. This agreement may be amended at any time
15upon the adoption of concurring ordinances by the corporate
16authorities of all member municipalities.
17    (b) Addition or withdrawal of members; dissolution. The
18agreement may provide for additional municipalities to join
19the commission upon adoption of an ordinance by the corporate
20authorities of the joining municipality and, upon such
21consents, conditions, and approvals of the board of
22commissioners and of existing member municipalities as shall
23be provided in the agreement. The agreement shall provide the
24manner and terms on which a municipality may withdraw from
25membership in the commission and on which the commission may
26terminate and dissolve in whole or in part.

 

 

10200SB0280ham002- 5 -LRB102 12409 AWJ 30184 a

1    (c) Filing of agreement. Promptly upon entering into the
2agreement or any amendment to it, a copy of such agreement or
3amendment shall be filed in the office of the Secretary of
4State. Promptly upon the addition or withdrawal of a
5municipality, or, upon the dissolution of the commission, that
6fact shall be certified by an officer of the commission to the
7Secretary of State.
8    (d) Development costs. A municipality whose corporate
9authorities adopted an ordinance and approved an
10intergovernmental agreement to acquire and operate jointly a
11waterworks system or a common source of supply of water, or
12both, as the case may be, under the provisions of this
13Division, may from time to time pay, advance, or obligate
14itself to the commission to bear a proportionate share of the
15development costs, including principal and interest, of any
16project proposed by the commission, including plans,
17feasibility reports, and engineering, even if the project is
18never constructed or water is never supplied by the commission
19to such municipality.
20    Whenever the corporate authorities of a municipality
21determine that the municipality will pay, advance, or be
22obligated for its proportionate share of development costs as
23provided in this subsection, they shall adopt an ordinance
24declaring their intention that the municipality will do so,
25fix the maximum amount of the municipality's share of the cost
26the municipality proposes to pay or that the municipality will

 

 

10200SB0280ham002- 6 -LRB102 12409 AWJ 30184 a

1advance or to obligate the municipality for, the period over
2which it is proposed to pay the obligation (not exceeding 10
3years), and the maximum amount to be paid annually, if such
4obligation is to be paid in installments. The time of payment
5of any such installment obligation may be extended for a
6period not exceeding 10 years from the final maturity date of
7the original obligation. On and after the date such ordinance
8becomes effective, the municipality shall include an amount
9sufficient to pay the annual installments of its obligation
10each year in the next succeeding appropriation ordinances. The
11commission may require that if any such municipality whose
12corporate authorities determined to pay, to advance, or to
13obligate the municipality to the commission for development
14costs defaults in such payments, advances, or obligations,
15then the remaining municipalities whose corporate authorities
16have determined to pay, to advance, or to obligate the
17respective municipalities to the commission for development
18costs will be required to pay for all or a portion of the
19payments, advances by, or obligations of the defaulting
20municipality. No prior appropriation shall be required for the
21corporate authorities of a municipality to authorize the
22payments, advances, or obligations herein provided for.
23    Whenever the corporate authorities of a municipality have
24obligated the municipality for development costs as herein
25provided and after the effective date of the ordinance under
26which the municipality became obligated for a specific amount

 

 

10200SB0280ham002- 7 -LRB102 12409 AWJ 30184 a

1for development costs of a project and after approval of such
2obligation by the commission, the commission is authorized to
3borrow funds temporarily for payment of such development costs
4in advance of permanent financing. The commission may from
5time to time and pursuant to an appropriate ordinance or
6resolution borrow money and issue its interim notes to
7evidence borrowings for such purpose, including all necessary
8and incidental expenses in connection therewith.
9    An ordinance or resolution authorizing the issuance of
10such notes shall describe the project and the development
11costs to be undertaken and specify the principal amount, rate
12of interest as authorized under Section 2 of the Bond
13Authorization Act, and the maturity date, which shall coincide
14with the due date of the obligations or the installments
15thereof incurred by the respective municipalities pursuant to
16this Section not, however, to exceed 10 years from date.
17    Contemporaneously with the issuance of revenue bonds under
18Section 11-135.5-30, all outstanding interim notes issued for
19development costs of a project though they have not then
20matured shall be paid, both principal and interest to date of
21payment, from funds derived from the sale of revenue bonds for
22the permanent financing of any such project for which interim
23notes may have been issued and such interim notes shall be
24surrendered and cancelled, or, in the alternative, the
25commission may determine to pay such interim notes out of
26receipts from other sources available to the commission,

 

 

10200SB0280ham002- 8 -LRB102 12409 AWJ 30184 a

1including grants and loans.
2    Whenever a member municipality has incurred development
3costs for a project and has advanced funds or otherwise
4obligated itself for the payment of such costs, the commission
5is authorized to accept assignment of such debt instruments
6and the payment obligations thereunder and to thereafter make
7all necessary payments to meet such obligations out of
8receipts from other sources available to the commission,
9including grants and loans.
10    As used in this subsection, "development costs" means the
11costs of development of a project, including debt incurred and
12principal and interest payments, whether incurred by the
13commission or a member municipality.
14    (e) Construction and operating costs. A municipality, the
15corporate authorities of which adopted an ordinance and
16approved an intergovernmental agreement to acquire and operate
17jointly a waterworks system or a common source of supply of
18water, or both, as the case may be, under the provisions of
19this Division, may from time to time pay, advance, or obligate
20itself to the commission to bear a proportionate share of the
21construction and operating costs of any project proposed by
22the commission.
23    Whenever the corporate authorities of a municipality
24determine that the municipality will pay, advance, or be
25obligated for its proportionate share of construction or
26operating costs as above provided, they shall adopt an

 

 

10200SB0280ham002- 9 -LRB102 12409 AWJ 30184 a

1ordinance declaring their intention to do so, fix the maximum
2amount of the municipality's share of the cost it proposes to
3pay, to advance, or to obligate itself for, fix the period over
4which it is proposed to pay the obligation, and state the
5maximum amount to be paid annually, if such obligation is to be
6paid in installments. On and after the date such ordinance
7becomes effective, the municipality shall include an amount
8sufficient to pay the annual installments of its obligation
9each year in the next succeeding appropriation ordinances. The
10commission may require that if any such municipality whose
11corporate authorities determined that the municipality will
12pay, advance, or be obligated to the commission for
13construction or operating costs defaults in such payments,
14advances, or obligations, then the remaining municipalities
15whose corporate authorities have determined that the
16municipality will pay, advance, or be obligated to the
17commission for construction or operating costs will be
18required to pay for all or a portion of the payments, advances
19by, or obligations of the defaulting municipality. No prior
20appropriation shall be required for the corporate authorities
21of a municipality to authorize the payments, advances, or
22obligations herein provided for.
23    Whenever a municipality, through its corporate
24authorities, has paid, advanced, or obligated the municipality
25for development, construction, or operating costs as herein
26provided, the commission may contract with the municipality,

 

 

10200SB0280ham002- 10 -LRB102 12409 AWJ 30184 a

1on such terms as may be agreed, for the repayment to the
2municipality by the commission of any payment or advance made
3by the municipality to the commission and to charge, in
4addition to all other charges and rates authorized under this
5Division, such rates and charges for water sold by the
6commission as shall be necessary to provide for such
7repayment. In addition, any payment or advance of such costs
8made by a municipality pursuant to this Section may be repaid
9by the commission to the municipality from the proceeds of
10revenue bonds authorized to be issued by the commission
11pursuant to this Division or, in the alternative, the
12commission may determine to pay all or part of such amounts out
13of receipts from other sources available to the commission,
14including grants and loans.
15    Whenever a member municipality has incurred construction
16and operating costs for a project and has advanced funds or
17otherwise obligated itself for the payment of such costs, the
18commission is authorized to accept assignment of such debt
19instruments and the payment obligations thereunder and to
20thereafter make all necessary payments to meet such
21obligations from the proceeds of revenue bonds authorized to
22be issued by the commission pursuant to this Division or, in
23the alternative, the commission may determine to pay all or
24part of such amounts out of receipts from other sources
25available to the commission, including grants and loans.
26    As used in this subsection, "construction and operating

 

 

10200SB0280ham002- 11 -LRB102 12409 AWJ 30184 a

1costs" means the costs of construction and operation of a
2project, including debt incurred and principal and interest
3payments, whether incurred by the commission or a member
4municipality.
5    (f) Commission facilities. A waterworks system or a common
6source of supply of water, or both, purchased or constructed
7by the commission: (1) may be located within or without the
8corporate limits of any member municipality; (2) may include,
9or may consist of, without limitation, facilities for
10receiving, storing, and transmitting water from any source for
11supplying water to member municipalities and other purchasers
12of water from the commission; and (3) may include, without
13limitation, facilities that are developed, acquired,
14constructed, extended, or improved by the commission that may
15at any time be owned by another unit of local government if
16such facilities will serve the waterworks system or provide a
17common source of supply of water for the commission.
 
18    (65 ILCS 5/11-135.5-20 new)
19    Sec. 11-135.5-20. Board of commissioners.
20    (a) Appointment of commissioners. Upon the adoption of an
21ordinance and intergovernmental agreement by the corporate
22authorities of a municipality under this Division, the mayor
23or president, with the approval of the corporate authorities,
24shall appoint a commissioner.
25    (b) Commission. The commissioners so appointed by each of

 

 

10200SB0280ham002- 12 -LRB102 12409 AWJ 30184 a

1the municipalities shall constitute a commission and a
2municipal corporation and a public body politic and corporate
3with the powers and duties specified in this Division. The
4corporate name of the commission and its duration shall be
5provided in the agreement, and in such name the commission may
6contract and be contracted with and sue and be sued. The
7commissioners shall be collectively referred to as a board of
8commissioners.
9    (c) Term; qualifications; compensation; bonds. Each
10commissioner appointed by a mayor or president shall be the
11mayor or president or an elected member of the corporate
12authorities of the municipality from which the appointment is
13made. The agreement establishing the commission shall specify
14the period during which a commissioner shall hold office and
15may provide for the appointment of alternate commissioners
16from member municipalities. No commissioner may receive any
17compensation for serving as commissioner. Each commissioner
18shall furnish a bond for the faithful performance of that
19commissioner's official duties. This bond shall not be less
20than $5,000 and its costs shall be paid by the commission.
21    (d) Removal; prohibited interests. Each commissioner may
22be removed by the corporate authorities of the municipality
23from which the commissioner was appointed for any cause for
24which any municipal officer may be removed. No commissioner or
25employee of the commission and no mayor, president, member of
26the corporate authorities, or employee of any of the

 

 

10200SB0280ham002- 13 -LRB102 12409 AWJ 30184 a

1municipalities shall be interested, directly or indirectly, in
2any contract or job of work or materials, or the profits
3thereof, or services to be performed for or by the commission.
4    (e) Violations. A violation of this Section is a Class C
5misdemeanor. A conviction is cause for the removal of a person
6from office or employment.
 
7    (65 ILCS 5/11-135.5-25 new)
8    Sec. 11-135.5-25. Board organization and powers.
9    (a) Organization of board. A commission shall organize by
10electing a chair from among its own members and shall elect
11persons, who need not be commissioners, to such other offices
12as shall be designated in the agreement. It shall adopt its own
13bylaws, rules, and regulations and provide for its meetings.
14The commission has full and complete supervision, management,
15and control of the waterworks system or the common source of
16supply of water, or both, as provided in the agreement and
17ordinances for acquiring and operating the same, and in their
18maintenance, operation, and extension. The board of
19commissioners shall determine the general policy of the
20commission, shall approve the annual budget, shall make all
21appropriations (which may include appropriations made at any
22time in addition to those made in any annual appropriation
23document), shall approve all contracts for the purchase or
24sale of water, shall adopt ordinances or resolutions providing
25for the issuance of bonds or notes by the commission, shall

 

 

10200SB0280ham002- 14 -LRB102 12409 AWJ 30184 a

1adopt its bylaws, rules, and regulations, and shall have such
2other powers and duties as may be prescribed in the agreement.
3Such agreement may further specify the voting and approval
4requirements for actions regarding the commission's powers and
5duties, including those powers and actions of the commission
6which shall be authorized only upon votes of greater than a
7majority of all commissioners or only upon consents of the
8corporate authorities of a certain number of member
9municipalities, or both.
10    The agreement may provide for the establishment of a
11technical advisory committee to consist of a municipal
12employee member from each member municipality as designated by
13ordinance or other official action, from time to time by the
14corporate authorities of the member municipality, and having
15the qualifications as prescribed in the agreement, and also
16may provide for such functions and duties of the committee as
17will support the efficient administration and operation of the
18commission.
19    The board of commissioners may establish other committees
20from time to time, consisting of either members of the board or
21members who are municipal employees from each member
22municipality, in order to support the efficient administration
23and operation of the commission.
24    (b) Water contracts to acquire water supply. A commission
25may contract to acquire a supply of water on such terms and
26conditions as it finds in the best interests of the commission

 

 

10200SB0280ham002- 15 -LRB102 12409 AWJ 30184 a

1for a period not exceeding 101 years. A commission may
2contract with any person, corporation, political subdivision,
3municipal corporation, or other governmental or
4non-governmental entity for a supply of water, and any such
5political subdivision, municipal corporation, or other
6governmental entity is authorized to enter into such a
7contract with the commission. A commission may accept from a
8municipality that is a member of the commission the assignment
9of a contract to acquire a supply of water and to accept and
10perform the duties and obligations and make all payments
11required pursuant to such assigned contract.
12    A contract made by or assigned to a commission for a supply
13of water may contain provisions whereby the commission is
14obligated to pay for such supply of water without setoff or
15counterclaim and irrespective of whether such supply of water
16is ever furnished, made available, or delivered to the
17commission or whether any project for the supply of water
18contemplated by the contract is completed, operable, or
19operating and notwithstanding any suspension, interruption,
20interference, reduction, or curtailment of the supply of water
21from such project.
22    No prior appropriation shall be required before entering
23into or accepting assignment of such contract, and no
24appropriation shall be required to authorize payments to be
25made under the terms of the contract, notwithstanding any
26provision of this Code to the contrary. The contract shall not

 

 

10200SB0280ham002- 16 -LRB102 12409 AWJ 30184 a

1be a debt within the meaning of any statutory or
2constitutional limitations.
3    (c) Water contracts to provide water supply to members.
4The commission is authorized to contract with the
5municipalities which established the commission, and with
6other municipalities that have become members pursuant to the
7process established in the intergovernmental agreement, for a
8supply of water to those municipalities, for a period not
9exceeding 101 years, and those municipalities are authorized
10to enter into such contracts with the commission.
11    Any such contract made by a commission and any such
12municipalities to supply water may contain provisions whereby
13the purchasing municipality is obligated to pay for such
14supply of water without setoff or counterclaim and
15irrespective of whether such supply of water is ever
16furnished, made available, or delivered to the purchasing
17municipality or whether any project for the supply of water
18contemplated by any such contract is completed, operable, or
19operating and notwithstanding any suspension, interruption,
20interference, reduction, or curtailment of the supply of water
21from such project. Any such contract may provide that if one or
22more of the other purchasers' defaults in the payment of its
23obligations under the contract or similar contract made with
24the supplier of the water, the remaining purchasers party to
25such contract or such similar contract shall be required to
26pay for all or a portion of the obligations of the defaulting

 

 

10200SB0280ham002- 17 -LRB102 12409 AWJ 30184 a

1purchaser. Each municipality that enters into such a contract
2shall be obligated and have the duty to include an amount
3sufficient to pay the annual amount of its obligation each
4year in the next succeeding appropriation ordinances. No prior
5appropriation shall be required for a municipality to
6authorize the payments, advances, or obligations provided for
7in such contracts or this subsection.
8    (d) Water contracts to provide water supply to nonmembers
9and extend system. A commission may supply water to and
10contract with a person, corporation, political subdivision,
11municipal corporation, or other governmental or
12non-governmental entity, in addition to the municipalities
13which have formed the commission and other municipalities that
14have become members pursuant to the process established in the
15intergovernmental agreement, and to construct water
16transmission and distribution lines within a radius of 25
17miles outside the corporate limits of member municipalities
18for the purpose of furnishing water to any additional entities
19which contract with the commission for a supply of water, upon
20such payment, terms, and conditions as may be mutually agreed
21upon. Any such contract shall be a continuing, valid, and
22binding obligation of the purchaser for such period of years,
23not to exceed 40, as may be provided in such contract.
24    Any such contract entered into to supply water to a
25municipal corporation or political subdivision shall provide
26that the payments to be made thereunder shall be from the

 

 

10200SB0280ham002- 18 -LRB102 12409 AWJ 30184 a

1revenues to be derived by such municipality or political
2subdivision from the operation of the waterworks system or
3combined waterworks and sewer system of such municipality or
4political subdivision or from receipts from other sources
5available to the municipality or political subdivision,
6including grants and loans. Any such contract made by a
7commission and a purchaser that is such a municipal
8corporation or political subdivision to supply water may
9contain provisions whereby the purchaser is obligated to pay
10for such supply of water without setoff or counterclaim and
11irrespective of whether such supply of water is ever
12furnished, made available, or delivered to the purchaser or
13whether any project for the supply of water contemplated by
14any such contract is completed, operable, or operating and
15notwithstanding any suspension, interruption, interference,
16reduction, or curtailment of the supply of water from such
17project. The contract may provide that, if one or more of the
18other purchasers defaults in the payment of its obligations
19under such contract or similar contract made with the supplier
20of the water, the remaining purchasers party to such contract
21or such similar contract shall be required to pay for all or a
22portion of the obligations of the defaulting purchaser. Each
23municipal corporation or political subdivision that enters
24into such a contract shall be obligated and have the duty to
25include an amount sufficient to pay the annual amount of its
26obligation each year in the next succeeding appropriation

 

 

10200SB0280ham002- 19 -LRB102 12409 AWJ 30184 a

1ordinances. No prior appropriation shall be required for a
2municipality or political subdivision to authorize the
3payments, advances, or obligations provided for in such
4contracts or this subsection. Any such contract shall not be a
5debt within the meaning of any statutory or constitutional
6limitations.
7    (e) Additional powers. In addition to any other powers set
8forth in this Division and in the agreement, a commission has
9the following powers:
10        (1) The power to enter into intergovernmental police
11    assistance agreements with any municipality or county.
12        (2) The power to enter into intergovernmental
13    agreements with any unit of local government or other
14    governmental entity in order to carry out the purposes for
15    which the commission was formed.
 
16    (65 ILCS 5/11-135.5-30 new)
17    Sec. 11-135.5-30. Revenue bonds.
18    (a) Revenue bonds; power; purposes. A commission may from
19time to time issue its revenue bonds in such principal amounts
20as the commission deems necessary to provide sufficient funds
21to carry out any of its corporate purposes and powers,
22including, without limitation: developing, acquiring,
23constructing, extending, or improving a waterworks system or
24common source of supply of water, or any combination thereof;
25the funding or refunding of the principal of, redemption

 

 

10200SB0280ham002- 20 -LRB102 12409 AWJ 30184 a

1premium on, if any, and interest on bonds issued by it, whether
2or not such bonds or interest to be funded or refunded have or
3have not become due; the payment of engineering, legal, and
4other expenses, together with interest to a date one year
5subsequent to the estimated date of completion of the project;
6the establishment or increase of reserves to secure or to pay
7such bonds and interest thereon; the providing of working
8capital; and the payment of all other costs or expenses of the
9commission incident to and necessary or convenient to carry
10out its corporate purposes and powers. These bonds shall have
11all the qualities of negotiable instruments under the laws of
12this State and shall not constitute indebtedness of any of the
13municipalities constituting the commission.
14    (b) Source of payment. Every issue of bonds of a
15commission shall be payable out of the revenues to be derived
16pursuant to contracts with the specified municipalities and
17other purchasers of water or by virtue of the operation of any
18properties acquired or to be acquired or constructed. A
19commission may issue such types of bonds as it determines,
20including bonds as to which the principal and interest are
21payable from the revenues from one or more projects, or from an
22interest therein or a right to the products and services
23thereof, or from one or more revenue producing contracts made
24by the commission, or its revenues generally. Any such bonds
25may be additionally secured by a pledge of any grant, subsidy,
26contribution, or other revenue source from the United States,

 

 

10200SB0280ham002- 21 -LRB102 12409 AWJ 30184 a

1the State of Illinois, or any unit of local government, or any
2combination thereof.
3    (c) Receipt of funds by treasurer. Before the treasurer of
4the commission is entitled to receive the proceeds of the sale
5of such a bond issue, the treasurer shall supply a corporate
6surety bond in an amount equivalent to the amount of funds to
7be derived from the sale of the bonds, and, in addition
8thereto, the treasurer shall supply a separate corporate
9surety bond for the faithful accounting of any funds that may
10come into that individual's possession in an amount equal to
11the amount of funds likely to come into the treasurer's hands
12in any one year from the revenue to be derived from the
13operation of any of the properties of the commission. The cost
14of these surety bonds shall be paid by the commission. The
15requirement to supply corporate surety bonds under this
16subsection does not apply to the extent that the proceeds of
17the sale of the bonds and other funds are subject to the
18administration of the trustee pursuant to a trust indenture
19with a bank or trust company.
20    (d) Approval process; terms. The revenue bonds shall be
21issued pursuant to an ordinance or resolution, or, in the
22alternative, pursuant to a master trust indenture as well as a
23supplemental trust indenture with each issuance, and may be
24issued in one or more series, and shall bear such date or
25dates, mature at such time or times within the estimated
26period of usefulness of the project involved and, in any

 

 

10200SB0280ham002- 22 -LRB102 12409 AWJ 30184 a

1event, not more than 50 years from the date thereof, bear
2interest at such rate or rates as authorized under Section 2 of
3the Bond Authorization Act, which rates may be fixed or
4variable, be in such denominations, be in such form, either
5coupon or registered, carry such conversion, registration, and
6exchange privileges, have such rank or priority, be executed
7in such manner, be payable in such medium of payment at such
8place or places within or without the State, be subject to such
9terms of redemption with or without premium, and contain or be
10subject to such other terms as the ordinance or resolution, or
11the master trust indenture or supplemental trust indenture or
12both, may provide, and shall not be restricted by the
13provisions of any other law limiting the amounts, maturities,
14interest rates, or other terms of obligations of public
15agencies or private persons. The master trust indenture and
16any supplemental trust indenture shall be entered into with a
17bank or trust company within or outside the State having trust
18powers and possessing capital and surplus of not less than
19$50,000,000. The bonds shall be sold in such manner as the
20commission shall determine, at private or public sale. It
21shall not be necessary that the ordinance or resolution, or
22the master trust indenture or supplemental trust indenture or
23both, refer to plans and specifications nor that there be on
24file for public inspection prior to the adoption of such
25ordinance or resolution, or the master trust indenture or
26supplemental trust indenture or both, detailed plans and

 

 

10200SB0280ham002- 23 -LRB102 12409 AWJ 30184 a

1specifications of the project. This ordinance or resolution,
2or the master trust indenture or supplemental trust indenture
3or both, may contain such covenants and restrictions in
4relation to the operation of the properties under the control
5of the commission and the issuance of additional revenue bonds
6thereafter as may be deemed necessary or advisable for the
7assurance of payment of the bonds thereby authorized and as
8may be thereafter issued. It shall be plainly stated on each
9bond that it does not constitute an indebtedness of any
10municipality represented by the commission within the meaning
11of any statutory or constitutional limitation. Upon the
12issuance of revenue bonds, the revenue of the commission
13derived pursuant to contracts entered into for the sale of
14water to the municipalities that have formed the commission
15and to other municipalities that have become members pursuant
16to the intergovernmental agreement, as well as contracts
17entered into with other persons, corporations, political
18subdivisions, municipal corporations, or other governmental or
19non-governmental entities and from the operation of its
20properties, shall be accounted for as provided in the
21ordinance or resolution, or the master trust indenture or
22supplemental trust indenture or both, authorizing the issuance
23of the bonds. Any commission created under the provisions of
24this Division may also issue bonds for the purpose of
25providing funds for the payment, refunding, or redemption of
26any of the commission's bonds or notes before, after, or at

 

 

10200SB0280ham002- 24 -LRB102 12409 AWJ 30184 a

1their maturity, including the payment of redemption premiums
2or interest accruing or to accrue on such bonds or notes being
3paid or redeemed, and for the payment of any installments of
4interest accrued or to accrue on any bond or note.
5    (e) No limitation. The provisions of this Section are not
6a limit upon a municipality that is a home rule unit.
 
7    (65 ILCS 5/11-135.5-35 new)
8    Sec. 11-135.5-35. Revenues; rates; costs; construction
9contracts.
10    (a) Revenue fund. Whenever bonds are issued under this
11Division, the revenue received from the operation of the
12properties under the control of the commission shall be set
13aside as collected and deposited in a separate fund to be used
14only (1) in paying the cost of the operation and maintenance of
15those properties, (2) in providing an adequate depreciation
16fund, (3) in paying the principal of and interest upon the
17revenue bonds issued by the commission, as provided by this
18Division, (4) to comply with the covenants of the ordinance or
19resolution, or the master trust indenture or any applicable
20supplemental trust indenture or both, authorizing the issuance
21of such bonds, and (5) to carry out the corporate purposes and
22powers of the commission.
23    (b) Rates and charges for waterworks system. If the
24commission has charge of the operation of a complete
25waterworks system, including the distribution mains, the

 

 

10200SB0280ham002- 25 -LRB102 12409 AWJ 30184 a

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

 

 

10200SB0280ham002- 26 -LRB102 12409 AWJ 30184 a

1of water by the commission to, and the use of commission
2waterworks system facilities by, those municipalities. The
3commission shall establish such charges and rates for water
4supplied to those municipalities and the use of commission
5waterworks system facilities as will be sufficient at all
6times (1) to pay the cost of operation and maintenance of the
7common source of supply of water, (2) to provide an adequate
8depreciation fund therefor, (3) to pay the principal of and
9interest on the revenue bonds issued by the commission, (4) to
10comply with the covenants of the ordinance or resolution, or
11the master trust indenture or any applicable supplemental
12trust indenture or both, authorizing the issuance of such
13bonds, and (5) to carry out the corporate purposes and powers
14of the commission, under the provisions of this Division.
15Contracts entered into between the commission and the
16specified municipalities shall include covenants for the
17establishment of rates and charges as provided in this
18Section.
19    (d) Pension costs. Contributions to a retirement fund or
20other pension alternative authorized by the Illinois Pension
21Code, including, without limitation, the Illinois Municipal
22Retirement Fund, by commissions created under this Division
23which have been included under the retirement fund or other
24pension alternative shall be considered a cost of operation
25and maintenance for the purposes of this Section.
26    (e) Enforcement of obligations. A holder of a bond or of

 

 

10200SB0280ham002- 27 -LRB102 12409 AWJ 30184 a

1any of its coupons issued under this Division, in a civil
2action, mandamus, or other proceeding, may enforce and compel
3performance of all duties required by this Division to be
4performed by such a commission or by any of the
5municipalities, including the making of rates and charges, the
6collecting of sufficient revenue, and the application thereof,
7as provided in this Division.
8    (f) Construction contracts. All or any portion of a
9waterworks system or other public improvement of such a
10commission, when the expense thereof will exceed the greater
11of (i) $25,000 or (ii) the amount of expense above which a work
12or public improvement by a municipality must be let to the
13lowest responsible bidder after advertising for bids under
14Section 8-9-1 of this Code, shall be constructed, maintained,
15or repaired either: (1) by a contract let to the lowest
16responsible bidder after advertising for bids, in the manner
17prescribed by the commission's bylaws, rules, and regulations
18and by the vote required as established in the
19intergovernmental agreement pursuant to Section 11-135.5-25;
20or (2) without advertising for bids, if authorized by a vote of
21greater than a majority of all the commissioners as
22established in the intergovernmental agreement pursuant to
23Section 11-135.5-25. The commission's bylaws, rules, and
24regulations shall provide for an alternative procedure for
25emergency procurement if an emergency makes it impracticable
26to follow the procedures in this subsection.

 

 

10200SB0280ham002- 28 -LRB102 12409 AWJ 30184 a

1    (g) Project labor agreement. In connection with a contract
2by a commission for the construction of all or any portion of a
3waterworks system or other public improvement of the
4commission, the commission must enter into a project labor
5agreement with the applicable local building trades council
6prior to the commencement of any and all construction,
7building, renovation, demolition, or any material change to
8the structure or land.
 
9    (65 ILCS 5/11-135.5-40 new)
10    Sec. 11-135.5-40. Property.
11    (a) Generally. A commission may (i) acquire, hold, sell,
12lease as lessor or lessee, transfer, or dispose of real or
13personal property, or interest therein, and (ii) acquire by
14gift, legacy, or grant any real estate or personal property,
15or rights therein, in all such instances as it deems
16appropriate in the exercise of its powers for its lawful
17purposes, whether the land or personal property is located
18within or outside the boundaries of the members of the
19commission. The commission also may accept any grant, subsidy,
20or contribution from the United States, the State of Illinois,
21a unit of local government, or any other governmental entity,
22or any combination thereof.
23    (b) Private property. Whenever a commission passes an
24ordinance for the construction or acquisition of any
25waterworks properties, or improvements or extension or mains,

 

 

10200SB0280ham002- 29 -LRB102 12409 AWJ 30184 a

1pumping stations, reservoirs, or other appurtenances thereto,
2which such commission is authorized to make, the making of
3which will require that private property be taken or damaged,
4such commission may cause compensation therefor to be
5ascertained and may condemn and acquire possession thereof in
6the same manner as nearly as may be, as provided for the
7exercise of the right of eminent domain under the Eminent
8Domain Act. However, proceedings to ascertain the compensation
9to be paid for taking or damaging private property shall be
10instituted in the circuit court of the county where the
11property sought to be taken or damaged is situated.
12    (c) Public property. When a commission created under this
13Division requires that public property be taken or damaged for
14the purposes specified in this Section, the commission may
15condemn and acquire possession of public property and cause
16compensation for such public property to be ascertained in the
17same manner provided for the exercise of the right of eminent
18domain under the Eminent Domain Act while the commission has
19the power to initiate action in the manner provided by Article
2020 of the Eminent Domain Act.
21    (d) Schedule for acquisition. If a commission created
22under this Division determines that negotiations for the
23acquisition of property or easements for making any
24improvement, which such commission is authorized to make, have
25proven unsuccessful and, the commission shall have, by
26resolution, adopted a schedule or plan of operation for the

 

 

10200SB0280ham002- 30 -LRB102 12409 AWJ 30184 a

1execution of the project and therein made a finding that it is
2necessary to take such property or easements immediately or at
3some specified later date in order to comply with the
4schedule, the commission may commence proceedings to acquire
5such property or easements in the same manner provided in
6Article 20 of the Eminent Domain Act (quick-take procedure),
7except that, if the property or easement is located in a
8municipality having more than 2,000,000 inhabitants, the
9commission may not commence such proceedings until the
10acquisition has been approved by ordinance of the corporate
11authorities of the municipality.
12    (e) Highways and public ground. A commission may
13construct, maintain, alter, and extend its water mains as a
14proper use of highways along, upon, under, and across any
15highway, street, alley, or public ground in the State,
16including highways within a municipality, but so as not to
17inconvenience the public use thereof, and the commission may
18construct, maintain, and operate any conduit or conduits,
19water pipe or pipes, wholly or partially buried or otherwise
20in, upon, and along any of the lands owned by the State and
21under any of the public waters therein. However, the right,
22permission, and authority hereby created shall be subject to
23all public rights of commerce and navigation and the authority
24of the United States in behalf of such public rights and also
25the laws of the State to regulate and control the same. Notice
26shall be given to the highway authorities of a municipality,

 

 

10200SB0280ham002- 31 -LRB102 12409 AWJ 30184 a

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

 

 

10200SB0280ham002- 32 -LRB102 12409 AWJ 30184 a

1mitigation agreement with the Illinois Department of
2Agriculture to ensure any negative impacts to private property
3are properly mitigated.
 
4    (65 ILCS 5/11-135.5-45 new)
5    Sec. 11-135.5-45. Laws not applicable. The provisions of
6this Division: (i) are not subject to Division 135 or Division
7136 of Article 11 of this Code or the Water Commission Act of
81985; and (ii) do not apply to any commission formed or
9operating under Division 135 or Division 136 of Article 11 of
10this Code or the Water Commission Act of 1985.
 
11    Section 10. The Eminent Domain Act is amended by adding
12Section 25-5-85 as follows:
 
13    (735 ILCS 30/25-5-85 new)
14    Sec. 25-5-85. Quick-take; regional water commissions.
15Quick-take proceedings under Article 20 may be used by a
16regional water commission for one period of 3 years after
17adoption of a schedule for acquisition of property or
18easements for the purposes of a regional water commission by a
19regional water commission established under Division 11-135.5
20of the Illinois Municipal Code. This Section does not
21authorize more than one 3-year quick-take period for any one
22regional water commission.
 

 

 

10200SB0280ham002- 33 -LRB102 12409 AWJ 30184 a

1    Section 99. Effective date. This Act takes effect upon
2becoming law.".