Illinois General Assembly - Illinois Compiled Statutes

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65 ILCS 5/11-119.2-4

(65 ILCS 5/11-119.2-4) (from Ch. 24, par. 11-119.2-4)

Sec. 11-119.2-4.

A. Any 2 or more municipalities, contiguous or
noncontiguous, and which operate a natural gas plant or system, may form a
municipal natural gas agency by the execution of an agency agreement authorized
by an ordinance adopted by the governing body of each municipality. The agency
agreement may state:

(1) that the municipal natural gas agency is created

and incorporated under the provisions of this Division as a body politic and corporate, municipal corporation and unit of local government of the State of Illinois;

(2) the name of the agency and the date of its

establishment;

(3) the names of the municipalities which have

adopted the agency agreement and constitute the initial members of the municipal natural gas agency;

(4) the names and addresses of the persons initially

appointed in the ordinances adopting the agency agreement to serve on the Board of Directors and act as the representatives of the municipalities, respectively, in the exercise of their powers as members;

(5) the limitations, if any, upon the terms of office

of the directors, provided that such directors shall always be selected and vacancies in their offices declared and filled by ordinances adopted by the governing body of the respective municipalities;

(6) the location by city, village or incorporated

town in the State of Illinois of the principal office of the municipal natural gas agency;

(7) provisions for the disposition, division or

distribution of obligations, property and assets of the municipal natural gas agency upon dissolution; and

(8) any other provisions for regulating the business

of the municipal natural gas agency or the conduct of its affairs which may be agreed to by the member municipalities, consistent with this Division, including, without limitation, any provisions for weighted voting among the member municipalities or by the directors.

B. The presiding officer of the Board of Directors of any municipal natural gas agency
established pursuant to this Division or such other officer selected by the Board of Directors, within 3 months after establishment,
shall file a certified copy of the agency agreement and a list of the
municipalities which have adopted the agreement with the recorder of the county
in which the principal office is located.  The recorder shall record this
certified copy and list and shall immediately transmit the certified copy and
list to the Secretary of State, together with his certificate of recordation.
The Secretary of State shall file these documents and issue his certificate of
approval over his signature and the Great Seal of the State.  The Secretary of
State shall make and keep a register of municipal natural gas agencies
established under this Division.

C. Each municipality which becomes a member of the municipal natural gas
agency shall appoint a representative to serve on the Board of Directors, which
representative may be a member of the governing body of the municipality. Each
appointment shall be made by the mayor, or president, subject to the
confirmation of the governing body.  The directors so appointed shall hold
office for a term of 3 years, or until a successor has been duly appointed and
qualified, except that the directors first appointed shall determine by lot at
their initial meeting the respective directors which shall serve for a term of
one, 2 or 3 years from the date of that meeting.  A vacancy shall be filled for
the balance of the unexpired term in the same manner as the original
appointment.

The Board of Directors is the corporate authority of the municipal natural
gas agency and shall exercise all the powers and manage and control all of the
affairs and property of the agency.  The Board of Directors shall have full
power to pass all necessary ordinances, resolutions, rules and regulations
for the proper management and conduct of the business of the board, and
for carrying into effect the objects for which the agency was established.

At the initial meeting of the Board of Directors to be held within 30 days
after the date of establishment of the municipal natural gas agency, the directors shall elect
from their members a presiding officer to preside over the meetings of the Board of Directors and an alternate presiding officer and may elect an executive
board.  The Board of Directors shall determine and designate in the agency's bylaws the titles for the presiding officers. The directors shall also elect a secretary and treasurer, who need
not be directors.  The board may select such other officers, employees and
agents as deemed to be necessary, who need not be directors or residents
of any of the municipalities which are members of the municipal natural gas
agency. The board may designate appropriate titles for all other officers, employees, and agents. All persons selected by the board shall hold their respective offices
during the pleasure of the board, and give such bond as may be required by the
board.

D. The bylaws of the municipal natural gas agency, and any amendments
thereto, shall be adopted by the Board of Directors by a majority vote
(adjusted for weighted voting, if provided in the Agency Agreement) to provide
the following:

(1) the conditions and obligations of membership, if

any;

(2) the manner and time of calling regular and

special meetings of the Board of Directors;

(3) the procedural rules of the Board of Directors;

(4) the composition, powers and responsibilities of

any committee or executive board;

(5) the rights and obligations of new members, and

the disposition of rights and obligations upon termination of membership; and

(6) such other rules or provisions for regulating the

affairs of the municipal natural gas agency as the board shall determine to be necessary.

E. Every municipal natural gas agency shall maintain an office in the State
of Illinois to be known as its principal office.  When a municipal natural gas
agency desires to change the location of such office, it shall file with
the Secretary of State a certificate of change of location, stating the
new address and the effective date of change.  Meetings of the Board of
Directors may be held at any place within the State of Illinois, designated
by the Board of Directors, after notice.  Unless otherwise provided by the
bylaws, an act of the majority of the directors present at a meeting at
which a quorum is present is the act of the Board of Directors.

F. The Board of Directors shall hold at least one meeting each year for
the election of officers and for the transaction of any other business.
Special meetings of the Board of Directors may be called for any purpose
upon written request to the presiding officer of the Board of Directors or secretary to call the meeting.
Such officer shall give notice of the meeting to be held not less than 10
days and not more than 60 days after receipt of such request.  Unless the
bylaws provide for a different percentage, a quorum for a meeting of the
Board of Directors is a majority of all members then in office.  All meetings
of the board shall be held in compliance with the provisions of the Open
Meetings Act.

G. The agency agreement may be amended as proposed at any meeting of the
Board of Directors for which notice, stating the purpose, shall be given
to each director and, unless the bylaws prescribe otherwise, such amendment
shall become effective when ratified by ordinances adopted by a majority
of the governing bodies of the member municipalities.  Each amendment, duly
certified, shall be recorded and filed in the same manner as for the original
agreement.

H. Each member municipality shall have full power and authority, subject
to the provisions of its charter and laws regarding local finance, to
appropriate money for the payment of the expenses of the municipal natural gas
agency and of its representative in exercising its functions as a member of the
municipal natural gas agency.

I. Any additional municipality which operates a natural gas plant or system
may join the municipal natural gas agency, or any member municipality may
withdraw therefrom upon the approval by ordinance adopted by the governing body
of the majority of the municipalities which are then members of the municipal
natural gas agency.  Any new member shall agree to assume its proportionate
share of the outstanding obligations of the municipal natural gas agency and
any member permitted to withdraw shall remain obligated to make payments under
any outstanding contract or agreement with the municipal natural gas agency.
Any such change in membership shall be recorded and filed in the same manner as
for the original agreement.

J. Any 2 or more municipal natural gas agencies organized pursuant to this
Division may consolidate to form a new municipal natural gas agency when
approved by ordinance adopted by the governing body of each municipality which
is a member of the respective municipal natural gas agency and by the execution
of an agency agreement as provided in this Section.

(Source: P.A. 96-204, eff. 1-1-10.)