Illinois General Assembly - Full Text of HB4333
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Full Text of HB4333  94th General Assembly

HB4333ham003 94TH GENERAL ASSEMBLY

Rep. Renee Kosel

Filed: 3/1/2006

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 4333

2     AMENDMENT NO. ______. Amend House Bill 4333, AS AMENDED, by
3 replacing everything after the enacting clause with the
4 following:
 
5     "Section 5. The Intergovernmental Cooperation Act is
6 amended by changing Section 3.1 as follows:
 
7     (5 ILCS 220/3.1)  (from Ch. 127, par. 743.1)
8     Sec. 3.1. Municipal Joint Action Water Agency.
9     (a) Any municipality or municipalities of this State, any
10 county or counties of this State, any township in a county with
11 a population under 700,000 of this State, any public water
12 district or districts of this State, any body corporate and
13 politic, or any combination thereof may, by intergovernmental
14 agreement, establish a Municipal Joint Action Water Agency to
15 provide adequate supplies of water on an economical and
16 efficient basis for member municipalities, public water
17 districts and other incorporated and unincorporated areas
18 within such counties. For purposes of this Act, the water
19 supply may only be derived from Lake Michigan, the Mississippi
20 River, the Missouri River, or the Sangamon River Valley
21 Alluvium. Any such Agency shall itself be a municipal
22 corporation, public body politic and corporate. A Municipal
23 Joint Action Water Agency so created shall not itself have
24 taxing power except as hereinafter provided.

 

 

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

 

 

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1 Agency established pursuant to this Section 3.1 shall be a
2 Board of Directors. There shall be one Director from each
3 member municipality, public water district, township, and
4 county of the Municipal Joint Action Water Agency appointed by
5 ordinance of the corporate authorities of the municipality,
6 public water district, township, or county. Each Director shall
7 have one vote. Each Director shall be the Mayor or President of
8 the member municipality, or the chairman of the board of
9 trustees of the member public water district, the supervisor of
10 the member township, or the chairman of the county board or
11 chief executive officer of the member county or a county board
12 member appointed by the chairman of the county board of the
13 member county, appointing the Director; an elected member of
14 the corporate authorities of that municipality, public water
15 district, township, or county; or other elected official of the
16 appointing municipality, public water district, township, or
17 county. Any agreement establishing a Municipal Joint Action
18 Water Agency shall specify the period during which a Director
19 shall hold office and may provide for the appointment of
20 Alternate Directors from member municipalities, public water
21 districts, townships, or counties. The Board of Directors shall
22 elect one Director to serve as Chairman, and shall elect
23 persons, who need not be Directors, to such other offices as
24 shall be designated in the agreement.
25     The Board of Directors shall determine the general policy
26 of the Municipal Joint Action Water Agency, shall approve the
27 annual budget, shall make all appropriations (which may include
28 appropriations made at any time in addition to those made in
29 any annual appropriation document), shall approve all
30 contracts for the purchase or sale of water, shall adopt any
31 resolutions providing for the issuance of bonds or notes by the
32 Agency, shall adopt its by-laws, rules and regulations, and
33 shall have such other powers and duties as may be prescribed in
34 the agreement. Such agreement may further specify those powers

 

 

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1 and actions of the Municipal Joint Action Water Agency which
2 shall be authorized only upon votes of greater than a majority
3 of all Directors or only upon consents of the corporate
4 authorities of a certain number of member municipalities,
5 public water districts, townships, or counties.
6     The agreement may provide for the establishment of an
7 Executive Committee to consist of the municipal manager or
8 other elected or appointed official of each member
9 municipality, public water district, township, or county, as
10 designated by ordinance from time to time by the corporate
11 authorities of the member municipality, public water district,
12 township, or county, and may prescribe powers and duties of the
13 Executive Committee for the efficient administration of the
14 Agency.
15     (c) A Municipal Joint Action Water Agency established
16 pursuant to this Section 3.1 may plan, construct, improve,
17 extend, acquire, finance (including the issuance of revenue
18 bonds or notes as provided in this Section 3.1), operate,
19 maintain, and contract for a joint waterworks or water supply
20 system which may include, or may consist of, without
21 limitation, facilities for receiving, storing, and
22 transmitting water from any source for supplying water to
23 member municipalities, public water districts, townships, or
24 counties (including county special service areas created under
25 the Special Service Area Tax Act and county service areas
26 authorized under the Counties Code), or other public agencies,
27 persons, or corporations. Facilities of the Municipal Joint
28 Action Water Agency may be located within or without the
29 corporate limits of any member municipality.
30     A Municipal Joint Action Water Agency shall have such
31 powers as shall be provided in the agreement establishing it,
32 which may include, but need not be limited to, the following
33 powers:
34         (i) to sue or be sued;

 

 

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1         (ii) to apply for and accept gifts or grants or loans
2     of funds or property or financial or other aid from any
3     public agency or private entity;
4         (iii) to acquire, hold, sell, lease as lessor or
5     lessee, transfer or dispose of such real or personal
6     property, or interests therein, as it deems appropriate in
7     the exercise of its powers, and to provide for the use
8     thereof by any member municipality, public water district,
9     township, or county;
10         (iv) to make and execute all contracts and other
11     instruments necessary or convenient to the exercise of its
12     powers (including contracts with member municipalities,
13     with public water districts, with townships, and with
14     counties on behalf of county service areas); and
15         (v) to employ agents and employees and to delegate by
16     resolution to one or more of its Directors or officers such
17     powers as it may deem proper.
18     Member municipalities, public water districts, townships,
19 or counties may, for the purposes of, and upon request by, the
20 Municipal Joint Action Water Agency, exercise the power of
21 eminent domain available to them, convey property so acquired
22 to the Agency for the cost of acquisition, and be reimbursed
23 for all expenses related to this exercise of eminent domain
24 power on behalf of the Agency.
25     All property, income and receipts of or transactions by a
26 Municipal Joint Action Water Agency shall be exempt from all
27 taxation, the same as if it were the property, income or
28 receipts of or transaction by the member municipalities, public
29 water districts, townships, or counties.
30     (d) A Municipal Joint Action Water Agency established
31 pursuant to this Section 3.1 shall have the power to buy water
32 and to enter into contracts with any person, corporation or
33 public agency (including any member municipality, public water
34 district, township, or county) for that purpose. Any such

 

 

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1 contract made by an Agency for a supply of water may contain
2 provisions whereby the Agency is obligated to pay for the
3 supply of water without setoff or counterclaim and irrespective
4 of whether the supply of water is ever furnished, made
5 available or delivered to the Agency or whether any project for
6 the supply of water contemplated by any such contract is
7 completed, operable or operating and notwithstanding any
8 suspension, interruption, interference, reduction or
9 curtailment of the supply of water from such project. Any such
10 contract may provide that if one or more of the other
11 purchasers defaults in the payment of its obligations under
12 such contract or a similar contract made with the supplier of
13 the water one or more of the remaining purchasers party to such
14 contract or such similar contract shall be required to pay for
15 all or a portion of the obligations of the defaulting
16 purchasers. No such contract may have a term in excess of 50
17 years.
18     A Municipal Joint Action Water Agency shall have the power
19 to sell water and to enter into contracts with any person,
20 corporation or public agency (including any member
21 municipality, any public water district, any township, or any
22 county on behalf of a county service area as set forth in this
23 Section) for that purpose. No such contract may have a term in
24 excess of 50 years. Any such contract entered into to sell
25 water to a public agency may provide that the payments to be
26 made thereunder by such public agency shall be made solely from
27 revenues to be derived by such public agency from the operation
28 of its waterworks system or its combined waterworks and
29 sewerage system. Any public agency so contracting to purchase
30 water shall establish from time to time such fees and charges
31 for its water service or combined water and sewer service as
32 will produce revenues sufficient at all times to pay its
33 obligations to the Agency under the purchase contract. Any such
34 contract so providing shall not constitute indebtedness of such

 

 

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1 public agency so contracting to buy water within the meaning of
2 any statutory or constitutional limitation. Any such contract
3 of a public agency to buy water shall be a continuing, valid
4 and binding obligation of such public agency payable from such
5 revenues.
6     A Municipal Joint Action Water Agency shall establish fees
7 and charges for the purchase of water from it or for the use of
8 its facilities. No prior appropriation shall be required by
9 either the Municipal Joint Action Water Agency or any public
10 agency before entering into any contract authorized by this
11 paragraph (d).
12     The changes in this Section made by this amendatory Act of
13 1984 are intended to be declarative of existing law.
14     (e) 1. A Municipal Joint Action Water Agency established
15 pursuant to this Section 3.1 may, from time to time, borrow
16 money and, in evidence of its obligation to repay the
17 borrowing, issue its negotiable water revenue bonds or notes
18 pursuant to this paragraph (e) for any of the following
19 purposes: for paying costs of constructing, acquiring,
20 improving or extending a joint waterworks or water supply
21 system; for paying other expenses incident to or incurred in
22 connection with such construction, acquisition, improvement or
23 extension; for repaying advances made to or by the Agency for
24 such purposes; for paying interest on the bonds or notes until
25 the estimated date of completion of any such construction,
26 acquisition, improvement or extension and for such period after
27 the estimated completion date as the Board of Directors of the
28 Agency shall determine; for paying financial, legal,
29 administrative and other expenses of the authorization,
30 issuance, sale or delivery of bonds or notes; for paying costs
31 of insuring payment of the bonds or notes; for providing or
32 increasing a debt service reserve fund with respect to any or
33 all of the Agency's bonds or notes; and for paying, refunding
34 or redeeming any of the Agency's bonds or notes before, after

 

 

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1 or at their maturity, including paying redemption premiums or
2 interest accruing or to accrue on such bonds or notes being
3 paid or redeemed or for paying any other costs in connection
4 with any such payment or redemption.
5     2. Any bonds or notes issued pursuant to this paragraph (e)
6 by a Municipal Joint Action Water Agency shall be authorized by
7 a resolution of the Board of Directors of the Agency adopted by
8 the affirmative vote of Directors from a majority of the member
9 municipalities, public water districts, townships, and
10 counties, and any additional requirements as may be set forth
11 in the agreement establishing the Agency. The authorizing
12 resolution may be effective immediately upon its adoption. The
13 authorizing resolution shall describe in a general way any
14 project contemplated to be financed by the bonds or notes,
15 shall set forth the estimated cost of the project and shall
16 determine its period of usefulness. The authorizing resolution
17 shall determine the maturity or maturities of the bonds or
18 notes, the rate or rates at which the bonds or notes are to
19 bear interest and all the other terms and details of the bonds
20 or notes. All such bonds or notes shall mature within the
21 period of estimated usefulness of the project with respect to
22 which such bonds or notes are issued, as determined by the
23 Board of Directors, but in any event not more than 50 years
24 from their date of issue. The bonds and notes may bear
25 interest, payable at such times, at a rate or rates not
26 exceeding the maximum rate established in the Bond
27 Authorization Act, as from time to time in effect. Bonds or
28 notes of a Municipal Joint Action Water Agency shall be sold in
29 such manner as the Board of Directors of the Agency shall
30 determine, either at par or at a premium or discount, but such
31 that the effective interest cost (excluding any redemption
32 premium) to the Agency of the bonds or notes shall not exceed a
33 rate equal to the rate of interest specified in the Act
34 referred to in the preceding sentence.

 

 

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1     The resolution authorizing the issuance of any bonds or
2 notes pursuant to this paragraph (e) shall constitute a
3 contract with the holders of the bonds and notes. The
4 resolution may contain such covenants and restrictions with
5 respect to the purchase or sale of water by the Agency and the
6 contracts for such purchases or sales, the operation of the
7 joint waterworks system or water supply system, the issuance of
8 additional bonds or notes by the Agency, the security for the
9 bonds and notes, and any other matters, as may be deemed
10 necessary or advisable by the Board of Directors to assure the
11 payment of the bonds or notes of the Agency.
12     3. The resolution authorizing the issuance of bonds or
13 notes by a Municipal Joint Action Water Agency shall pledge and
14 provide for the application of revenues derived from the
15 operation of the Agency's joint waterworks or water supply
16 system (including from contracts for the sale of water by the
17 Agency) and investment earnings thereon to the payment of the
18 cost of operation and maintenance of the system (including
19 costs of purchasing water), to provision of adequate
20 depreciation, reserve or replacement funds with respect to the
21 system or the bonds or notes, and to the payment of principal,
22 premium, if any, and interest on the bonds or notes of the
23 Agency (including amounts for the purchase of such bonds or
24 notes). The resolution shall provide that revenues of the
25 Municipal Joint Action Water Agency so derived from the
26 operation of the system, sufficient (together with other
27 receipts of the Agency which may be applied to such purposes)
28 to provide for such purposes, shall be set aside as collected
29 in a separate fund or funds and used for such purposes. The
30 resolution may provide that revenues not required for such
31 purposes may be used for any proper purpose of the Agency or
32 may be returned to member municipalities.
33     Any notes of a Municipal Joint Action Water Agency issued
34 in anticipation of the issuance of bonds by it may, in

 

 

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1 addition, be secured by a pledge of proceeds of bonds to be
2 issued by the Agency, as specified in the resolution
3 authorizing the issuance of such notes.
4     4. (i) Except as provided in clauses (ii) and (iii) of this
5 subparagraph 4 of this paragraph (e), all bonds and notes of
6 the Municipal Joint Action Water Agency issued pursuant to this
7 paragraph (e) shall be revenue bonds or notes. Such revenue
8 bonds or notes shall have no claim for payment other than from
9 revenues of the Agency derived from the operation of its joint
10 waterworks or water supply system (including from contracts for
11 the sale of water by the Agency) and investment earnings
12 thereon, from bond or note proceeds and investment earnings
13 thereon, or from such other receipts of the Agency as the
14 agreement establishing the Agency may authorize to be pledged
15 to the payment of revenue bonds or notes, all as and to the
16 extent as provided in the resolution of the Board of Directors
17 authorizing the issuance of the revenue bonds or notes. Revenue
18 bonds or notes issued by a Municipal Joint Action Water Agency
19 pursuant to this paragraph (e) shall not constitute an
20 indebtedness of the Agency or of any member municipality,
21 public water district, township, or county within the meaning
22 of any constitutional or statutory limitation. It shall be
23 plainly stated on each revenue bond and note that it does not
24 constitute an indebtedness of the Municipal Joint Action Water
25 Agency or of any member municipality, public water district,
26 township, or county within the meaning of any constitutional or
27 statutory limitation.
28     (ii) If the Agreement so provides and subject to the
29 referendum provided for in clause (iii) of this subparagraph 4
30 of this paragraph (e), the Municipal Joint Action Water Agency
31 may borrow money for corporate purposes on the credit of the
32 Municipal Joint Action Water Agency, and issue general
33 obligation bonds therefor, in such amounts and form and on such
34 conditions as it shall prescribe, but shall not become indebted

 

 

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1 in any manner or for any purpose in an amount including
2 existing indebtedness in the aggregate which exceeds 5.75% of
3 the aggregate value of the taxable property within the
4 boundaries of the participating municipalities, public water
5 districts, townships, and county service areas within a member
6 county determined by the governing body of the county by
7 resolution to be served by the Municipal Joint Action Water
8 Agency (including any territory added to the Agency after the
9 issuance of such general obligation bonds), collectively
10 defined as the "Service Area", as equalized and assessed by the
11 Department of Revenue and as most recently available at the
12 time of the issue of said bonds. Before or at the time of
13 incurring any such general obligation indebtedness, the
14 Municipal Joint Action Water Agency shall provide for the
15 collection of a direct annual tax, which shall be unlimited as
16 to rate or amount, sufficient to pay the interest on such debt
17 as it falls due and also to pay and discharge the principal
18 thereof at maturity, which shall be within 40 years after the
19 date of issue thereof. Such tax shall be levied upon and
20 collected from all of the taxable property within the
21 territorial boundaries of such Service Area at the time of the
22 referendum provided for in clause (iii) and shall be levied
23 upon and collected from all taxable property within the
24 boundaries of any territory subsequently added to the Service
25 Area. Dissolution of the Municipal Joint Action Water Agency
26 for any reason shall not relieve the taxable property within
27 such Service Area from liability for such tax. Liability for
28 such tax for property transferred to or released from such
29 Service Area shall be determined in the same manner as for
30 general obligation bonds of such county, if in an
31 unincorporated area, and of such municipality, if within the
32 boundaries thereof. The clerk or other officer of the Municipal
33 Joint Action Water Agency shall file a certified copy of the
34 resolution or ordinance by which such bonds are authorized to

 

 

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1 be issued and such tax is levied with the County Clerk or
2 Clerks of the county or counties containing the Service Area,
3 and such filing shall constitute, without the doing of any
4 other act, full and complete authority for such County Clerk or
5 Clerks to extend such tax for collection upon all the taxable
6 property within the Service Area subject to such tax in each
7 and every year, as required, in amounts sufficient to pay the
8 principal of and interest on such bonds, as aforesaid, without
9 limit as to rate or amount. Such tax shall be in addition to
10 and in excess of all other taxes authorized to be levied by the
11 Municipal Joint Action Water Agency or by such county,
12 municipality, township, or public water district. The issuance
13 of such general obligation bonds shall be subject to the other
14 provisions of this paragraph (e), except for the provisions of
15 clause (i) of this subparagraph 4.
16     (iii) No issue of general obligation bonds of the Municipal
17 Joint Action Water Agency (except bonds to refund an existing
18 bonded indebtedness) shall be authorized unless the Municipal
19 Joint Action Water Agency certifies the proposition of issuing
20 such bonds to the proper election authorities, who shall submit
21 the proposition to the voters in the Service Area at an
22 election in accordance with the general election law, and the
23 proposition has been approved by a majority of those voting on
24 the proposition.
25     The proposition shall be substantially in the following
26 form:
27 -------------------------------------------------------------
28     Shall general obligation
29 bonds for the purpose of (state
30 purpose), in the sum not to
31 exceed $....(insert amount),                Yes
32 be issued by the .........           ------------------------
33 (insert corporate name of the               No
34 Municipal Joint Action Water

 

 

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1 Agency)?
2 -------------------------------------------------------------
3     5. As long as any bonds or notes of a Municipal Joint
4 Action Water Agency created pursuant to this Section 3.1 are
5 outstanding and unpaid, the Agency shall not terminate or
6 dissolve and, except as permitted by the resolution or
7 resolutions authorizing outstanding bonds or notes, no member
8 municipality, public water district, township, or county may
9 withdraw from the Agency. While any such bonds or notes are
10 outstanding, all contracts for the sale of water by the Agency
11 to member municipalities, public water districts, townships,
12 or counties shall be irrevocable except as permitted by the
13 resolution or resolutions authorizing such bonds or notes. The
14 Agency shall establish fees and charges for its operations
15 sufficient to provide adequate revenues to meet all of the
16 requirements under its various resolutions authorizing bonds
17 or notes.
18     6. A holder of any bond or note issued pursuant to this
19 paragraph (e) may, in any civil action, mandamus or other
20 proceeding, enforce and compel performance of all duties
21 required to be performed by the Agency or such counties, as
22 provided in the authorizing resolution, or by any of the public
23 agencies contracting with the Agency to purchase water,
24 including the imposition of fees and charges, the collection of
25 sufficient revenues and the proper application of revenues as
26 provided in this paragraph (e) and the levying, extension and
27 collection of such taxes.
28     7. In addition, the resolution authorizing any bonds or
29 notes issued pursuant to this paragraph (e) may provide for a
30 pledge, assignment, lien or security interest, for the benefit
31 of the holders of any or all bonds or notes of the Agency, (i)
32 on any or all revenues derived from the operation of the joint
33 waterworks or water supply system (including from contracts for
34 the sale of water) and investment earnings thereon or (ii) on

 

 

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1 funds or accounts securing the payment of the bonds or notes as
2 provided in the authorizing resolution. In addition, such a
3 pledge, assignment, lien or security interest may be made with
4 respect to any receipts of the Agency which the agreement
5 establishing the Agency authorizes it to apply to payment of
6 bonds or notes. Any such pledge, assignment, lien or security
7 interest for the benefit of holders of bonds or notes shall be
8 valid and binding from the time the bonds or notes are issued,
9 without any physical delivery or further act, and shall be
10 valid and binding as against or prior to any claims of any
11 other party having any claims of any kind against the Agency
12 irrespective of whether such other parties have notice of such
13 pledge, assignment, lien or security interest.
14     A resolution of a Municipal Joint Water Agency authorizing
15 the issuance of bonds or notes pursuant to this paragraph (e)
16 may provide for the appointment of a corporate trustee with
17 respect to any or all of such bonds or notes (which trustee may
18 be any trust company or state or national bank having the power
19 of a trust company within Illinois). In that event, the
20 resolution shall prescribe the rights, duties and powers of the
21 trustee to be exercised for the benefit of the Agency and the
22 protection of the holders of such bonds or notes. The
23 resolution may provide for the trustee to hold in trust, invest
24 and use amounts in funds and accounts created as provided in
25 the resolution. The resolution authorizing the bonds or notes
26 may provide for the assignment and direct payment to the
27 trustee of amounts owed by public agencies to the Municipal
28 Joint Action Water Agency under water sales contracts for
29 application by the trustee to the purposes for which such
30 revenues are to be used as provided in this paragraph (e) and
31 as provided in the authorizing resolution. Upon receipt of
32 notice of such assignment, the public agency shall thereafter
33 make the assigned payments directly to such trustee.
34     Nothing in this Section authorizes a Joint Action Water

 

 

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1 Agency to provide water service directly to residents within a
2 municipality or in territory within one mile or less of the
3 corporate limits of a municipality that operates a public water
4 supply unless the municipality has consented in writing to such
5 service being provided.
6 (Source: P.A. 90-210, eff. 7-25-97; 90-595, eff. 1-1-99;
7 91-134, eff. 1-1-00.)
 
8     Section 10. The Illinois Municipal Code is amended by
9 adding Section 11-124-5.1 as follows:
 
10     (65 ILCS 5/11-124-5.1 new)
11     Sec. 11-124-5.1. Acquisition of water systems by eminent
12 domain.
13     (a) In addition to other provisions providing for the
14 acquisition of water systems or water works, whenever a public
15 utility subject to the Public Utilities Act utilizes public
16 property (including, but not limited to, right-of-way) of a
17 municipality for the installation or maintenance of all or part
18 of its water distribution system, the municipality has the
19 right to exercise eminent domain to acquire the entirety of the
20 water system, in accordance with this Section. Unless it
21 complies with the provisions set forth in this Section, a
22 municipality is not permitted to acquire by eminent domain that
23 portion of a system located in another incorporated
24 municipality without agreement of that municipality, but this
25 provision shall not prevent the acquisition of that portion of
26 the water system existing within the acquiring municipality.
27     (b) Where a water system that is owned by a public utility
28 (as defined in the Public Utilities Act) provides water to
29 customers located entirely in 2 or more municipalities, the
30 system may be acquired by either or both of the municipalities
31 by eminent domain if there is in existence an intergovernmental
32 agreement between the municipalities served providing for

 

 

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1 acquisition.
2     (c) If a water system that is owned by a public utility
3 provides water to customers located in one or more adjacent
4 municipalities and also to customers in an unincorporated area
5 and if at least 70% of the customers of the system or portion
6 thereof are located within the municipality or municipalities,
7 then the system, or portion thereof as determined by the
8 corporate authorities, may be acquired, using eminent domain or
9 otherwise, by either a municipality under subsection (a) or an
10 entity created by agreement between municipalities where at
11 least 70% of the customers reside. For the purposes of
12 determining "customers of the system", only retail customers
13 directly billed by the company shall be included in the
14 computation. The number of customers of the system most
15 recently reported to the Illinois Commerce Commission for any
16 calendar year preceding the year a resolution is passed by a
17 municipality or municipalities expressing preliminary intent
18 to purchase the water system or portion thereof shall be
19 presumed to be the total number of customers within the system.
20 The public utility shall provide information relative to the
21 number of customers within each municipality and within the
22 system within 60 days of any such request by a municipality.
23     (d) In the case of acquisition by a municipality or
24 municipalities or entity created by law to own or operate a
25 water system under this Section, service must be provided to
26 all retail customers of the system at the time of acquisition
27 without discrimination in rates based on whether the customer
28 is located within or outside the boundaries of the acquiring
29 municipality or municipalities or entity.
30     (e) For the purposes of this Section, "system" includes all
31 assets reasonably necessary to provide water service to a
32 contiguous or compact geographical service area and include,
33 but are not limited to, interests in real estate, all wells,
34 pipes, treatment plants, pumps and other physical apparatus,

 

 

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1 data and records of facilities and customers, fire hydrants,
2 equipment, or vehicles and also includes service agreements and
3 obligations derived from use of the assets, whether or not the
4 assets are contiguous to the municipality, municipalities, or
5 entity created for the purpose of owning or operating a water
6 system.
7     (f) The valuation of all systems or waterworks acquired
8 under this Section and any other Division of this Article 11
9 may be pursuant to the formulas set forth in Section 11-139-12.
10     (g) Notwithstanding any other provision of law, the
11 Illinois Commerce Commission has no approval authority of any
12 eminent domain action brought by any governmental entity or
13 combination of such entities to acquire water systems or water
14 works.
15     (h) This Section does not apply to any public utility
16 company that, on January 1, 2006, supplied a total of 70,000 or
17 fewer meter connections in the State unless and until (i) that
18 public utility company receives approval from the Illinois
19 Commerce Commission under Section 7-204 of the Public Utilities
20 Act for the reorganization of the public utility company or
21 (ii) the majority control of the company changes through a
22 stock sale, a sale of assets, a merger (other than an internal
23 reorganization) or otherwise. For the purpose of this Section,
24 "public utility company" means the public utility providing
25 water service and includes any of its corporate parents,
26 subsidiaries, or affiliates possessing a franchised water
27 service in the State.
28     (i) The provisions of this Section are severable under
29 Section 1.31 of the Statute on Statutes.
 
30     Section 15. The Code of Civil Procedure is amended by
31 changing Section 7-102 as follows:
 
32     (735 ILCS 5/7-102)  (from Ch. 110, par. 7-102)

 

 

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1     Sec. 7-102. Parties. Where the right to take private
2 property for public use, without the owner's consent or the
3 right to construct or maintain any public road, railroad,
4 plankroad, turnpike road, canal or other public work or
5 improvement, or which may damage property not actually taken
6 has been heretofore or shall hereafter be conferred by general
7 law or special charter upon any corporate or municipal
8 authority, public body, officer or agent, person, commissioner
9 or corporation and the compensation to be paid for or in
10 respect of the property sought to be appropriated or damaged
11 for the purposes mentioned cannot be agreed upon by the parties
12 interested, or in case the owner of the property is incapable
13 of consenting, or the owner's name or residence is unknown, or
14 the owner is a nonresident of the state, the party authorized
15 to take or damage the property so required, or to construct,
16 operate and maintain any public road, railroad, plankroad,
17 turnpike road, canal or other public work or improvement, may
18 apply to the circuit court of the county where the property or
19 any part thereof is situated, by filing with the clerk a
20 complaint, setting forth, by reference, his, her or their
21 authority in the premises, the purpose for which the property
22 is sought to be taken or damaged, a description of the
23 property, the names of all persons interested therein as owners
24 or otherwise as appearing of record, if known, or if not known
25 stating that fact and praying such court to cause the
26 compensation to be paid to the owner to be assessed. If it
27 appears that any person not in being, upon coming into being,
28 is, or may become or may claim to be, entitled to any interest
29 in the property sought to be appropriated or damaged the court
30 shall appoint some competent and disinterested person as
31 guardian ad litem, to appear for and represent such interest in
32 the proceeding and to defend the proceeding on behalf of the
33 person not in being, and any judgment entered in the proceeding
34 shall be as effectual for all purposes as though the person was

 

 

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1 in being and was a party to the proceeding. If the proceeding
2 seeks to affect the property of persons under guardianship, the
3 guardians shall be made parties defendant. Persons interested,
4 whose names are unknown, may be made parties defendant by the
5 same descriptions and in the same manner as provided in other
6 civil cases. Where the property to be taken or damaged is a
7 common element of property subject to a declaration of
8 condominium ownership pursuant to the Condominium Property Act
9 or of a common interest community, the complaint shall name the
10 unit owners' association in lieu of naming the individual unit
11 owners and lienholders on individual units. Unit owners,
12 mortgagees and other lienholders may intervene as parties
13 defendant. For the purposes of this Section "common interest
14 community" shall have the same meaning as set forth in
15 subsection (c) of Section 9-102 of the Code of Civil Procedure.
16 "Unit owners' association" or "association" shall refer to both
17 the definition contained in Section 2 of the Condominium
18 Property Act and subsection (c) of Section 9-102 of the Code of
19 Civil Procedure. Where the property is sought to be taken or
20 damaged by the state for the purposes of establishing,
21 operating or maintaining any state house or state charitable or
22 other institutions or improvements, the complaint shall be
23 signed by the governor or such other person as he or she shall
24 direct, or as is provided by law. No property, except property
25 described in either Section 3 of the Sports Stadium Act,
26 property to be acquired in furtherance of actions under or
27 Article 11, Divisions 124, 126, 128, 130, 135, 136, and
28 Division 139, of the Illinois Municipal Code, property to be
29 acquired in furtherance of actions under Section 3.1 of the
30 Intergovernmental Cooperation Act, property that is a water
31 system or waterworks pursuant to the home rule powers of a unit
32 of local government, and property described as Site B in
33 Section 2 of the Metropolitan Pier and Exposition Authority
34 Act, belonging to a railroad or other public utility subject to

 

 

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1 the jurisdiction of the Illinois Commerce Commission may be
2 taken or damaged, pursuant to the provisions of Article VII of
3 this Act, without the prior approval of the Illinois Commerce
4 Commission. This amendatory Act of 1991 (Public Act 87-760) is
5 declaratory of existing law and is intended to remove possible
6 ambiguities, thereby confirming the existing meaning of the
7 Code of Civil Procedure and of the Illinois Municipal Code in
8 effect before January 1, 1992 (the effective date of Public Act
9 87-760).
10 (Source: P.A. 89-683, eff. 6-1-97; 90-6, eff. 6-3-97.)".