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

Public Act 102-0684


 

Public Act 0684 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0684
 
SB0280 EnrolledLRB102 12409 AWJ 17746 b

    AN ACT concerning local government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Municipal Code is amended by
adding Division 135.5 in Article 11 as follows:
 
    (65 ILCS 5/Art. 11 Div. 135.5 heading new)
DIVISION 135.5. REGIONAL WATER COMMISSIONS

 
    (65 ILCS 5/11-135.5-1 new)
    Sec. 11-135.5-1. References to Division. This Division may
be referred to as the Regional Water Commissions Act.
 
    (65 ILCS 5/11-135.5-5 new)
    Sec. 11-135.5-5. Findings. The General Assembly finds
that:
        (1) It is necessary and in the public interest to help
    assure a sufficient and economic supply of a source of
    water of suitable quality within those areas of this State
    that are dependent on ground water supply from portions of
    the Cambrian-Ordovician aquifer as well as shallow
    aquifers, and where those aquifers are expected not to be
    able to provide a sufficient supply of water or water of
    suitable quality to one or more municipalities which may
    be located in more than a single county, and where,
    because of economic development and population growth and
    proximity to large urban centers, the health, safety, and
    welfare of the residents is threatened by the continuing
    reduction in the amount of ground water and quality of
    ground water that can be obtained from the aquifers.
        (2) Because of a need to provide such municipalities a
    continuing, available, and adequate source and supply of
    water on an economically viable basis, it is necessary and
    desirable to establish a different structure for
    municipalities in the affected region to jointly establish
    a source of water supply and the necessary waterworks and
    other supporting facilities as needed to provide a
    reliable, sustainable, and high-quality source of water on
    a cost-effective basis.
        (3) It is not the intent of the General Assembly to
    interfere with the structure and operation of other water
    commissions and county water commissions already existing
    around the State on the effective date of this amendatory
    Act of the 102nd General Assembly or to interfere with the
    power of municipalities to provide for the retail
    distribution of water to its residents or the customers of
    its water systems.
        (4) It is in the State's best interest to provide for a
    sufficient and economic supply of water to such areas.
 
    (65 ILCS 5/11-135.5-10 new)
    Sec. 11-135.5-10. Regional water commissions.
Municipalities may enter into joint efforts to acquire,
develop, and operate a waterworks system or a common source of
supply of water, or both, through intergovernmental
cooperation in a regional water commission as provided in this
Division.
 
    (65 ILCS 5/11-135.5-15 new)
    Sec. 11-135.5-15. Establishment of commission; members;
initial costs and funding.
    (a) Establishment of commission. Two or more
municipalities, at least one of which is located in whole or in
part in the county of Cook, Kane, Kendall, Lake, McHenry, or
Will and has 140,000 or more inhabitants at the time of
establishment of a regional water commission, excluding cities
of 500,000 or more inhabitants, may acquire, either by
purchase or construction, a waterworks system or a common
source of supply of water, or both, and may operate jointly a
waterworks system or a common source of supply of water, or
both, and improve and extend the same, as provided in this
Division. The municipality meeting the requirement to have
140,000 or more inhabitants as required by this paragraph must
have attained that population as of the effective date of this
amendatory Act of the 102nd General Assembly.
    The corporate authorities of the municipalities desiring
to avail themselves of the provisions of this Division shall
establish a regional water commission by adopting an ordinance
determining and electing to acquire and operate jointly a
waterworks system or a common source of supply of water, or
both, as the case may be, and approving an intergovernmental
agreement among the municipalities establishing the regional
water commission. This agreement may be amended at any time
upon the adoption of concurring ordinances by the corporate
authorities of all member municipalities.
    (b) Addition or withdrawal of members; dissolution. The
agreement may provide for additional municipalities to join
the commission upon adoption of an ordinance by the corporate
authorities of the joining municipality and, upon such
consents, conditions, and approvals of the board of
commissioners and of existing member municipalities as shall
be provided in the agreement. The agreement shall provide the
manner and terms on which a municipality may withdraw from
membership in the commission and on which the commission may
terminate and dissolve in whole or in part.
    (c) Filing of agreement. Promptly upon entering into the
agreement or any amendment to it, a copy of such agreement or
amendment shall be filed in the office of the Secretary of
State. Promptly upon the addition or withdrawal of a
municipality, or, upon the dissolution of the commission, that
fact shall be certified by an officer of the commission to the
Secretary of State.
    (d) Development costs. A municipality whose corporate
authorities adopted an ordinance and approved an
intergovernmental agreement to acquire and operate jointly a
waterworks system or a common source of supply of water, or
both, as the case may be, under the provisions of this
Division, may from time to time pay, advance, or obligate
itself to the commission to bear a proportionate share of the
development costs, including principal and interest, of any
project proposed by the commission, including plans,
feasibility reports, and engineering, even if the project is
never constructed or water is never supplied by the commission
to such municipality.
    Whenever the corporate authorities of a municipality
determine that the municipality will pay, advance, or be
obligated for its proportionate share of development costs as
provided in this subsection, they shall adopt an ordinance
declaring their intention that the municipality will do so,
fix the maximum amount of the municipality's share of the cost
the municipality proposes to pay or that the municipality will
advance or to obligate the municipality for, the period over
which it is proposed to pay the obligation (not exceeding 10
years), and the maximum amount to be paid annually, if such
obligation is to be paid in installments. The time of payment
of any such installment obligation may be extended for a
period not exceeding 10 years from the final maturity date of
the original obligation. On and after the date such ordinance
becomes effective, the municipality shall include an amount
sufficient to pay the annual installments of its obligation
each year in the next succeeding appropriation ordinances. The
commission may require that if any such municipality whose
corporate authorities determined to pay, to advance, or to
obligate the municipality to the commission for development
costs defaults in such payments, advances, or obligations,
then the remaining municipalities whose corporate authorities
have determined to pay, to advance, or to obligate the
respective municipalities to the commission for development
costs will be required to pay for all or a portion of the
payments, advances by, or obligations of the defaulting
municipality. No prior appropriation shall be required for the
corporate authorities of a municipality to authorize the
payments, advances, or obligations herein provided for.
    Whenever the corporate authorities of a municipality have
obligated the municipality for development costs as herein
provided and after the effective date of the ordinance under
which the municipality became obligated for a specific amount
for development costs of a project and after approval of such
obligation by the commission, the commission is authorized to
borrow funds temporarily for payment of such development costs
in advance of permanent financing. The commission may from
time to time and pursuant to an appropriate ordinance or
resolution borrow money and issue its interim notes to
evidence borrowings for such purpose, including all necessary
and incidental expenses in connection therewith.
    An ordinance or resolution authorizing the issuance of
such notes shall describe the project and the development
costs to be undertaken and specify the principal amount, rate
of interest as authorized under Section 2 of the Bond
Authorization Act, and the maturity date, which shall coincide
with the due date of the obligations or the installments
thereof incurred by the respective municipalities pursuant to
this Section not, however, to exceed 10 years from date.
    Contemporaneously with the issuance of revenue bonds under
Section 11-135.5-30, all outstanding interim notes issued for
development costs of a project though they have not then
matured shall be paid, both principal and interest to date of
payment, from funds derived from the sale of revenue bonds for
the permanent financing of any such project for which interim
notes may have been issued and such interim notes shall be
surrendered and cancelled, or, in the alternative, the
commission may determine to pay such interim notes out of
receipts from other sources available to the commission,
including grants and loans.
    Whenever a member municipality has incurred development
costs for a project and has advanced funds or otherwise
obligated itself for the payment of such costs, the commission
is authorized to accept assignment of such debt instruments
and the payment obligations thereunder and to thereafter make
all necessary payments to meet such obligations out of
receipts from other sources available to the commission,
including grants and loans.
    As used in this subsection, "development costs" means the
costs of development of a project, including debt incurred and
principal and interest payments, whether incurred by the
commission or a member municipality.
    (e) Construction and operating costs. A municipality, the
corporate authorities of which adopted an ordinance and
approved an intergovernmental agreement to acquire and operate
jointly a waterworks system or a common source of supply of
water, or both, as the case may be, under the provisions of
this Division, may from time to time pay, advance, or obligate
itself to the commission to bear a proportionate share of the
construction and operating costs of any project proposed by
the commission.
    Whenever the corporate authorities of a municipality
determine that the municipality will pay, advance, or be
obligated for its proportionate share of construction or
operating costs as above provided, they shall adopt an
ordinance declaring their intention to do so, fix the maximum
amount of the municipality's share of the cost it proposes to
pay, to advance, or to obligate itself for, fix the period over
which it is proposed to pay the obligation, and state the
maximum amount to be paid annually, if such obligation is to be
paid in installments. On and after the date such ordinance
becomes effective, the municipality shall include an amount
sufficient to pay the annual installments of its obligation
each year in the next succeeding appropriation ordinances. The
commission may require that if any such municipality whose
corporate authorities determined that the municipality will
pay, advance, or be obligated to the commission for
construction or operating costs defaults in such payments,
advances, or obligations, then the remaining municipalities
whose corporate authorities have determined that the
municipality will pay, advance, or be obligated to the
commission for construction or operating costs will be
required to pay for all or a portion of the payments, advances
by, or obligations of the defaulting municipality. No prior
appropriation shall be required for the corporate authorities
of a municipality to authorize the payments, advances, or
obligations herein provided for.
    Whenever a municipality, through its corporate
authorities, has paid, advanced, or obligated the municipality
for development, construction, or operating costs as herein
provided, the commission may contract with the municipality,
on such terms as may be agreed, for the repayment to the
municipality by the commission of any payment or advance made
by the municipality to the commission and to charge, in
addition to all other charges and rates authorized under this
Division, such rates and charges for water sold by the
commission as shall be necessary to provide for such
repayment. In addition, any payment or advance of such costs
made by a municipality pursuant to this Section may be repaid
by the commission to the municipality from the proceeds of
revenue bonds authorized to be issued by the commission
pursuant to this Division or, in the alternative, the
commission may determine to pay all or part of such amounts out
of receipts from other sources available to the commission,
including grants and loans.
    Whenever a member municipality has incurred construction
and operating costs for a project and has advanced funds or
otherwise obligated itself for the payment of such costs, the
commission is authorized to accept assignment of such debt
instruments and the payment obligations thereunder and to
thereafter make all necessary payments to meet such
obligations from the proceeds of revenue bonds authorized to
be issued by the commission pursuant to this Division or, in
the alternative, the commission may determine to pay all or
part of such amounts out of receipts from other sources
available to the commission, including grants and loans.
    As used in this subsection, "construction and operating
costs" means the costs of construction and operation of a
project, including debt incurred and principal and interest
payments, whether incurred by the commission or a member
municipality.
    (f) Commission facilities. A waterworks system or a common
source of supply of water, or both, purchased or constructed
by the commission: (1) may be located within or without the
corporate limits of any member municipality; (2) may include,
or may consist of, without limitation, facilities for
receiving, storing, and transmitting water from any source for
supplying water to member municipalities and other purchasers
of water from the commission; and (3) may include, without
limitation, facilities that are developed, acquired,
constructed, extended, or improved by the commission that may
at any time be owned by another unit of local government if
such facilities will serve the waterworks system or provide a
common source of supply of water for the commission.
 
    (65 ILCS 5/11-135.5-20 new)
    Sec. 11-135.5-20. Board of commissioners.
    (a) Appointment of commissioners. Upon the adoption of an
ordinance and intergovernmental agreement by the corporate
authorities of a municipality under this Division, the mayor
or president, with the approval of the corporate authorities,
shall appoint a commissioner.
    (b) Commission. The commissioners so appointed by each of
the municipalities shall constitute a commission and a
municipal corporation and a public body politic and corporate
with the powers and duties specified in this Division. The
corporate name of the commission and its duration shall be
provided in the agreement, and in such name the commission may
contract and be contracted with and sue and be sued. The
commissioners shall be collectively referred to as a board of
commissioners.
    (c) Term; qualifications; compensation; bonds. Each
commissioner appointed by a mayor or president shall be the
mayor or president or an elected member of the corporate
authorities of the municipality from which the appointment is
made. The agreement establishing the commission shall specify
the period during which a commissioner shall hold office and
may provide for the appointment of alternate commissioners
from member municipalities. No commissioner may receive any
compensation for serving as commissioner. Each commissioner
shall furnish a bond for the faithful performance of that
commissioner's official duties. This bond shall not be less
than $5,000 and its costs shall be paid by the commission.
    (d) Removal; prohibited interests. Each commissioner may
be removed by the corporate authorities of the municipality
from which the commissioner was appointed for any cause for
which any municipal officer may be removed. No commissioner or
employee of the commission and no mayor, president, member of
the corporate authorities, or employee of any of the
municipalities shall be interested, directly or indirectly, in
any contract or job of work or materials, or the profits
thereof, or services to be performed for or by the commission.
    (e) Violations. A violation of this Section is a Class C
misdemeanor. A conviction is cause for the removal of a person
from office or employment.
 
    (65 ILCS 5/11-135.5-25 new)
    Sec. 11-135.5-25. Board organization and powers.
    (a) Organization of board. A commission shall organize by
electing a chair from among its own members and shall elect
persons, who need not be commissioners, to such other offices
as shall be designated in the agreement. It shall adopt its own
bylaws, rules, and regulations and provide for its meetings.
The commission has full and complete supervision, management,
and control of the waterworks system or the common source of
supply of water, or both, as provided in the agreement and
ordinances for acquiring and operating the same, and in their
maintenance, operation, and extension. The board of
commissioners shall determine the general policy of the
commission, shall approve the annual budget, shall make all
appropriations (which may include appropriations made at any
time in addition to those made in any annual appropriation
document), shall approve all contracts for the purchase or
sale of water, shall adopt ordinances or resolutions providing
for the issuance of bonds or notes by the commission, shall
adopt its bylaws, rules, and regulations, and shall have such
other powers and duties as may be prescribed in the agreement.
Such agreement may further specify the voting and approval
requirements for actions regarding the commission's powers and
duties, including those powers and actions of the commission
which shall be authorized only upon votes of greater than a
majority of all commissioners or only upon consents of the
corporate authorities of a certain number of member
municipalities, or both.
    The agreement may provide for the establishment of a
technical advisory committee to consist of a municipal
employee member from each member municipality as designated by
ordinance or other official action, from time to time by the
corporate authorities of the member municipality, and having
the qualifications as prescribed in the agreement, and also
may provide for such functions and duties of the committee as
will support the efficient administration and operation of the
commission.
    The board of commissioners may establish other committees
from time to time, consisting of either members of the board or
members who are municipal employees from each member
municipality, in order to support the efficient administration
and operation of the commission.
    (b) Water contracts to acquire water supply. A commission
may contract to acquire a supply of water on such terms and
conditions as it finds in the best interests of the commission
for a period not exceeding 101 years. A commission may
contract with any person, corporation, political subdivision,
municipal corporation, or other governmental or
non-governmental entity for a supply of water, and any such
political subdivision, municipal corporation, or other
governmental entity is authorized to enter into such a
contract with the commission. A commission may accept from a
municipality that is a member of the commission the assignment
of a contract to acquire a supply of water and to accept and
perform the duties and obligations and make all payments
required pursuant to such assigned contract.
    A contract made by or assigned to a commission for a supply
of water may contain provisions whereby the commission is
obligated to pay for such supply of water without setoff or
counterclaim and irrespective of whether such supply of water
is ever furnished, made available, or delivered to the
commission or whether any project for the supply of water
contemplated by the contract is completed, operable, or
operating and notwithstanding any suspension, interruption,
interference, reduction, or curtailment of the supply of water
from such project.
    No prior appropriation shall be required before entering
into or accepting assignment of such contract, and no
appropriation shall be required to authorize payments to be
made under the terms of the contract, notwithstanding any
provision of this Code to the contrary. The contract shall not
be a debt within the meaning of any statutory or
constitutional limitations.
    (c) Water contracts to provide water supply to members.
The commission is authorized to contract with the
municipalities which established the commission, and with
other municipalities that have become members pursuant to the
process established in the intergovernmental agreement, for a
supply of water to those municipalities, for a period not
exceeding 101 years, and those municipalities are authorized
to enter into such contracts with the commission.
    Any such contract made by a commission and any such
municipalities to supply water may contain provisions whereby
the purchasing municipality is obligated to pay for such
supply of water without setoff or counterclaim and
irrespective of whether such supply of water is ever
furnished, made available, or delivered to the purchasing
municipality or whether any project for the supply of water
contemplated by any such contract is completed, operable, or
operating and notwithstanding any suspension, interruption,
interference, reduction, or curtailment of the supply of water
from such project. Any such contract may provide that if one or
more of the other purchasers' defaults in the payment of its
obligations under the contract or similar contract made with
the supplier of the water, the remaining purchasers party to
such contract or such similar contract shall be required to
pay for all or a portion of the obligations of the defaulting
purchaser. Each municipality that enters into such a contract
shall be obligated and have the duty to include an amount
sufficient to pay the annual amount of its obligation each
year in the next succeeding appropriation ordinances. No prior
appropriation shall be required for a municipality to
authorize the payments, advances, or obligations provided for
in such contracts or this subsection.
    (d) Water contracts to provide water supply to nonmembers
and extend system. A commission may supply water to and
contract with a person, corporation, political subdivision,
municipal corporation, or other governmental or
non-governmental entity, in addition to the municipalities
which have formed the commission and other municipalities that
have become members pursuant to the process established in the
intergovernmental agreement, and to construct water
transmission and distribution lines within a radius of 25
miles outside the corporate limits of member municipalities
for the purpose of furnishing water to any additional entities
which contract with the commission for a supply of water, upon
such payment, terms, and conditions as may be mutually agreed
upon. Any such contract shall be a continuing, valid, and
binding obligation of the purchaser for such period of years,
not to exceed 40, as may be provided in such contract.
    Any such contract entered into to supply water to a
municipal corporation or political subdivision shall provide
that the payments to be made thereunder shall be from the
revenues to be derived by such municipality or political
subdivision from the operation of the waterworks system or
combined waterworks and sewer system of such municipality or
political subdivision or from receipts from other sources
available to the municipality or political subdivision,
including grants and loans. Any such contract made by a
commission and a purchaser that is such a municipal
corporation or political subdivision to supply water may
contain provisions whereby the purchaser is obligated to pay
for such supply of water without setoff or counterclaim and
irrespective of whether such supply of water is ever
furnished, made available, or delivered to the purchaser or
whether any project for the supply of water contemplated by
any such contract is completed, operable, or operating and
notwithstanding any suspension, interruption, interference,
reduction, or curtailment of the supply of water from such
project. The contract may provide that, if one or more of the
other purchasers defaults in the payment of its obligations
under such contract or similar contract made with the supplier
of the water, the remaining purchasers party to such contract
or such similar contract shall be required to pay for all or a
portion of the obligations of the defaulting purchaser. Each
municipal corporation or political subdivision that enters
into such a contract shall be obligated and have the duty to
include an amount sufficient to pay the annual amount of its
obligation each year in the next succeeding appropriation
ordinances. No prior appropriation shall be required for a
municipality or political subdivision to authorize the
payments, advances, or obligations provided for in such
contracts or this subsection. Any such contract shall not be a
debt within the meaning of any statutory or constitutional
limitations.
    (e) Additional powers. In addition to any other powers set
forth in this Division and in the agreement, a commission has
the following powers:
        (1) The power to enter into intergovernmental police
    assistance agreements with any municipality or county.
        (2) The power to enter into intergovernmental
    agreements with any unit of local government or other
    governmental entity in order to carry out the purposes for
    which the commission was formed.
 
    (65 ILCS 5/11-135.5-30 new)
    Sec. 11-135.5-30. Revenue bonds.
    (a) Revenue bonds; power; purposes. A commission may from
time to time issue its revenue bonds in such principal amounts
as the commission deems necessary to provide sufficient funds
to carry out any of its corporate purposes and powers,
including, without limitation: developing, acquiring,
constructing, extending, or improving a waterworks system or
common source of supply of water, or any combination thereof;
the funding or refunding of the principal of, redemption
premium on, if any, and interest on bonds issued by it, whether
or not such bonds or interest to be funded or refunded have or
have not become due; the payment of engineering, legal, and
other expenses, together with interest to a date one year
subsequent to the estimated date of completion of the project;
the establishment or increase of reserves to secure or to pay
such bonds and interest thereon; the providing of working
capital; and the payment of all other costs or expenses of the
commission incident to and necessary or convenient to carry
out its corporate purposes and powers. These bonds shall have
all the qualities of negotiable instruments under the laws of
this State and shall not constitute indebtedness of any of the
municipalities constituting the commission.
    (b) Source of payment. Every issue of bonds of a
commission shall be payable out of the revenues to be derived
pursuant to contracts with the specified municipalities and
other purchasers of water or by virtue of the operation of any
properties acquired or to be acquired or constructed. A
commission may issue such types of bonds as it determines,
including bonds as to which the principal and interest are
payable from the revenues from one or more projects, or from an
interest therein or a right to the products and services
thereof, or from one or more revenue producing contracts made
by the commission, or its revenues generally. Any such bonds
may be additionally secured by a pledge of any grant, subsidy,
contribution, or other revenue source from the United States,
the State of Illinois, or any unit of local government, or any
combination thereof.
    (c) Receipt of funds by treasurer. Before the treasurer of
the commission is entitled to receive the proceeds of the sale
of such a bond issue, the treasurer shall supply a corporate
surety bond in an amount equivalent to the amount of funds to
be derived from the sale of the bonds, and, in addition
thereto, the treasurer shall supply a separate corporate
surety bond for the faithful accounting of any funds that may
come into that individual's possession in an amount equal to
the amount of funds likely to come into the treasurer's hands
in any one year from the revenue to be derived from the
operation of any of the properties of the commission. The cost
of these surety bonds shall be paid by the commission. The
requirement to supply corporate surety bonds under this
subsection does not apply to the extent that the proceeds of
the sale of the bonds and other funds are subject to the
administration of the trustee pursuant to a trust indenture
with a bank or trust company.
    (d) Approval process; terms. The revenue bonds shall be
issued pursuant to an ordinance or resolution, or, in the
alternative, pursuant to a master trust indenture as well as a
supplemental trust indenture with each issuance, and may be
issued in one or more series, and shall bear such date or
dates, mature at such time or times within the estimated
period of usefulness of the project involved and, in any
event, not more than 50 years from the date thereof, bear
interest at such rate or rates as authorized under Section 2 of
the Bond Authorization Act, which rates may be fixed or
variable, be in such denominations, be in such form, either
coupon or registered, carry such conversion, registration, and
exchange privileges, have such rank or priority, be executed
in such manner, be payable in such medium of payment at such
place or places within or without the State, be subject to such
terms of redemption with or without premium, and contain or be
subject to such other terms as the ordinance or resolution, or
the master trust indenture or supplemental trust indenture or
both, may provide, and shall not be restricted by the
provisions of any other law limiting the amounts, maturities,
interest rates, or other terms of obligations of public
agencies or private persons. The master trust indenture and
any supplemental trust indenture shall be entered into with a
bank or trust company within or outside the State having trust
powers and possessing capital and surplus of not less than
$50,000,000. The bonds shall be sold in such manner as the
commission shall determine, at private or public sale. It
shall not be necessary that the ordinance or resolution, or
the master trust indenture or supplemental trust indenture or
both, refer to plans and specifications nor that there be on
file for public inspection prior to the adoption of such
ordinance or resolution, or the master trust indenture or
supplemental trust indenture or both, detailed plans and
specifications of the project. This ordinance or resolution,
or the master trust indenture or supplemental trust indenture
or both, may contain such covenants and restrictions in
relation to the operation of the properties under the control
of the commission and the issuance of additional revenue bonds
thereafter as may be deemed necessary or advisable for the
assurance of payment of the bonds thereby authorized and as
may be thereafter issued. It shall be plainly stated on each
bond that it does not constitute an indebtedness of any
municipality represented by the commission within the meaning
of any statutory or constitutional limitation. Upon the
issuance of revenue bonds, the revenue of the commission
derived pursuant to contracts entered into for the sale of
water to the municipalities that have formed the commission
and to other municipalities that have become members pursuant
to the intergovernmental agreement, as well as contracts
entered into with other persons, corporations, political
subdivisions, municipal corporations, or other governmental or
non-governmental entities and from the operation of its
properties, shall be accounted for as provided in the
ordinance or resolution, or the master trust indenture or
supplemental trust indenture or both, authorizing the issuance
of the bonds. Any commission created under the provisions of
this Division may also issue bonds for the purpose of
providing funds for the payment, refunding, or redemption of
any of the commission's bonds or notes before, after, or at
their maturity, including the payment of redemption premiums
or interest accruing or to accrue on such bonds or notes being
paid or redeemed, and for the payment of any installments of
interest accrued or to accrue on any bond or note.
    (e) No limitation. The provisions of this Section are not
a limit upon a municipality that is a home rule unit.
 
    (65 ILCS 5/11-135.5-35 new)
    Sec. 11-135.5-35. Revenues; rates; costs; construction
contracts.
    (a) Revenue fund. Whenever bonds are issued under this
Division, the revenue received from the operation of the
properties under the control of the commission shall be set
aside as collected and deposited in a separate fund to be used
only (1) in paying the cost of the operation and maintenance of
those properties, (2) in providing an adequate depreciation
fund, (3) in paying the principal of and interest upon the
revenue bonds issued by the commission, as provided by this
Division, (4) to comply with the covenants of the ordinance or
resolution, or the master trust indenture or any applicable
supplemental trust indenture or both, authorizing the issuance
of such bonds, and (5) to carry out the corporate purposes and
powers of the commission.
    (b) Rates and charges for waterworks system. If the
commission has charge of the operation of a complete
waterworks system, including the distribution mains, the
commission shall establish rates and charges for water and the
use of commission waterworks system facilities, which shall be
sufficient at all times to pay the cost of operation and
maintenance, to provide an adequate depreciation fund, to pay
the principal of and interest upon all revenue bonds issued as
provided by this Division, to comply with the covenants of the
ordinance or resolution, or the master trust indenture or any
applicable supplemental trust indenture or both, authorizing
the issuance of such bonds, and to carry out the corporate
purposes and powers of the commission. Charges and rates shall
be established, revised, and maintained by ordinance and
become payable as the commission may determine by ordinance.
    (c) Rates and charges for water source of supply. If the
commission has charge of the operation of a common source of
supply of water, the municipalities represented by the
commission shall contract with the commission for water. These
municipalities shall establish such charges and rates for
water supplied by them to consumers as will be sufficient at
all times (1) to pay the cost of operation and maintenance of
the respective waterworks systems (or combined waterworks and
sewerage systems) of the municipalities, (2) to provide an
adequate depreciation fund therefor, (3) to pay the principal
of and interest on all revenue bonds of the municipalities
payable from the revenues of the waterworks system (or
combined waterworks and sewerage system), and (4) to pay the
charges and rates established by the commission for the sale
of water by the commission to, and the use of commission
waterworks system facilities by, those municipalities. The
commission shall establish such charges and rates for water
supplied to those municipalities and the use of commission
waterworks system facilities as will be sufficient at all
times (1) to pay the cost of operation and maintenance of the
common source of supply of water, (2) to provide an adequate
depreciation fund therefor, (3) to pay the principal of and
interest on the revenue bonds issued by the commission, (4) to
comply with the covenants of the ordinance or resolution, or
the master trust indenture or any applicable supplemental
trust indenture or both, authorizing the issuance of such
bonds, and (5) to carry out the corporate purposes and powers
of the commission, under the provisions of this Division.
Contracts entered into between the commission and the
specified municipalities shall include covenants for the
establishment of rates and charges as provided in this
Section.
    (d) Pension costs. Contributions to a retirement fund or
other pension alternative authorized by the Illinois Pension
Code, including, without limitation, the Illinois Municipal
Retirement Fund, by commissions created under this Division
which have been included under the retirement fund or other
pension alternative shall be considered a cost of operation
and maintenance for the purposes of this Section.
    (e) Enforcement of obligations. A holder of a bond or of
any of its coupons issued under this Division, in a civil
action, mandamus, or other proceeding, may enforce and compel
performance of all duties required by this Division to be
performed by such a commission or by any of the
municipalities, including the making of rates and charges, the
collecting of sufficient revenue, and the application thereof,
as provided in this Division.
    (f) Construction contracts. All or any portion of a
waterworks system or other public improvement of such a
commission, when the expense thereof will exceed the greater
of (i) $25,000 or (ii) the amount of expense above which a work
or public improvement by a municipality must be let to the
lowest responsible bidder after advertising for bids under
Section 8-9-1 of this Code, shall be constructed, maintained,
or repaired either: (1) by a contract let to the lowest
responsible bidder after advertising for bids, in the manner
prescribed by the commission's bylaws, rules, and regulations
and by the vote required as established in the
intergovernmental agreement pursuant to Section 11-135.5-25;
or (2) without advertising for bids, if authorized by a vote of
greater than a majority of all the commissioners as
established in the intergovernmental agreement pursuant to
Section 11-135.5-25. The commission's bylaws, rules, and
regulations shall provide for an alternative procedure for
emergency procurement if an emergency makes it impracticable
to follow the procedures in this subsection.
    (g) Project labor agreement. In connection with a contract
by a commission for the construction of all or any portion of a
waterworks system or other public improvement of the
commission, the commission must enter into a project labor
agreement with the applicable local building trades council
prior to the commencement of any and all construction,
building, renovation, demolition, or any material change to
the structure or land.
 
    (65 ILCS 5/11-135.5-40 new)
    Sec. 11-135.5-40. Property.
    (a) Generally. A commission may (i) acquire, hold, sell,
lease as lessor or lessee, transfer, or dispose of real or
personal property, or interest therein, and (ii) acquire by
gift, legacy, or grant any real estate or personal property,
or rights therein, in all such instances as it deems
appropriate in the exercise of its powers for its lawful
purposes, whether the land or personal property is located
within or outside the boundaries of the members of the
commission. The commission also may accept any grant, subsidy,
or contribution from the United States, the State of Illinois,
a unit of local government, or any other governmental entity,
or any combination thereof.
    (b) Private property. Whenever a commission passes an
ordinance for the construction or acquisition of any
waterworks properties, or improvements or extension or mains,
pumping stations, reservoirs, or other appurtenances thereto,
which such commission is authorized to make, the making of
which will require that private property be taken or damaged,
such commission may cause compensation therefor to be
ascertained and may condemn and acquire possession thereof in
the same manner as nearly as may be, as provided for the
exercise of the right of eminent domain under the Eminent
Domain Act. However, proceedings to ascertain the compensation
to be paid for taking or damaging private property shall be
instituted in the circuit court of the county where the
property sought to be taken or damaged is situated.
    (c) Public property. When a commission created under this
Division requires that public property be taken or damaged for
the purposes specified in this Section, the commission may
condemn and acquire possession of public property and cause
compensation for such public property to be ascertained in the
same manner provided for the exercise of the right of eminent
domain under the Eminent Domain Act while the commission has
the power to initiate action in the manner provided by Article
20 of the Eminent Domain Act.
    (d) Highways and public ground. A commission may
construct, maintain, alter, and extend its water mains as a
proper use of highways along, upon, under, and across any
highway, street, alley, or public ground in the State,
including highways within a municipality, but so as not to
inconvenience the public use thereof, and the commission may
construct, maintain, and operate any conduit or conduits,
water pipe or pipes, wholly or partially buried or otherwise
in, upon, and along any of the lands owned by the State and
under any of the public waters therein. However, the right,
permission, and authority hereby created shall be subject to
all public rights of commerce and navigation and the authority
of the United States in behalf of such public rights and also
the laws of the State to regulate and control the same. Notice
shall be given to the highway authorities of a municipality,
county, township, road district, or township district in which
such highway, street, or public way may be situated at least 60
days before any construction or installation work in such
highway or street shall commence. All laws and ordinances
pertaining to such work for the protection of the public and of
public property shall be complied with, except that no fee may
be charged such commission for the construction or
installation of such facilities in such public places.
    (e) Surplus property. When, in the opinion of a
commission, real estate owned by it, however acquired, is no
longer necessary, appropriate, required for the use of,
profitable to, or for best interest of the commission, such
commission may, by resolution, lease such surplus real estate
for a period not to exceed 99 years or sell such surplus real
estate, in accordance with procedures established in the
intergovernmental agreement or bylaws or adopted by resolution
by such commission.
    (f) Tax exemption. All property, income, and receipts of
or transactions by a commission shall be exempt from all
taxation, the same as if it were the property, income, or
receipts of or transaction by the member municipalities.
    (g) Agricultural impact mitigation agreement. For any
private property that is used for agricultural purposes, as
defined in Section 1-60 of the Property Tax Code, that is
damaged or taken by a commission created under this Division,
the commission shall enter into an agricultural impact
mitigation agreement with the Illinois Department of
Agriculture to ensure any negative impacts to private property
are properly mitigated.
 
    (65 ILCS 5/11-135.5-45 new)
    Sec. 11-135.5-45. Laws not applicable. The provisions of
this Division: (i) are not subject to Division 135 or Division
136 of Article 11 of this Code or the Water Commission Act of
1985; and (ii) do not apply to any commission formed or
operating under Division 135 or Division 136 of Article 11 of
this Code or the Water Commission Act of 1985.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 12/16/2021