Bill Text: IL SB0060 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the Township Code. Provides that a township board may establish a fair and reasonable rate (currently, rate or charge) for users of waterworks systems and sewerage systems and a fair and reasonable connection charge for each new user. Provides that mayors or presidents of municipalities and customers must choose the independent entity to conduct the cost study, order the cost study, and pay for the cost study they requested. Further provides that the cost study must include an examination of residential and commercial connection charges for the waterworks system or sewerage system, whichever applies, in at least 30 units of local government in Illinois with a similar number of customers as are connected to the township's waterworks system and sewerage system (currently, examination of water main and sewer connection charges in neighboring units of local government or units of local government similar in size or population). Removes provisions concerning written quotes and payments for cost studies. Makes other changes. Effective immediately.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Engrossed) 2017-05-26 - Final Action Deadline Extended-9(b) May 31, 2017 [SB0060 Detail]

Download: Illinois-2017-SB0060-Engrossed.html



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1 AN ACT concerning local government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Township Code is amended by changing Section
5205-140 as follows:
6 (60 ILCS 1/205-140)
7 Sec. 205-140. Initiating proceedings for particular
8locality; rates and charges; lien.
9 (a) A township board may initiate proceedings under
10Sections 205-130 through 205-150 in the manner provided by
11Section 205-20.
12 (b) The township board may establish a fair and reasonable
13the rate for or charge to each user of the waterworks system or
14sewerage system, or combined waterworks and sewerage system, or
15improvement or extension at a rate that will be sufficient to
16pay the principal and interest of any bonds issued to pay the
17cost of the system, improvement, or extension and the
18maintenance and operation of the system, improvement, or
19extension and may provide an adequate depreciation fund for the
20bonds. Rates Charges or rates shall be established, revised,
21and maintained by ordinance and become payable as the township
22board determines by ordinance.
23 (b-5) The township board may establish a fair and

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1reasonable connection charge for each new user added to the
2township's waterworks system or sewerage system.
3 (c) The charges or rates are liens upon the real estate
4upon or for which sewerage service is supplied whenever the
5charges or rates become delinquent as provided by the ordinance
6of the board fixing a delinquency date.
7 (d) Notwithstanding any provision of law to the contrary,
8the township shall conduct a cost study shall be conducted
9regarding the connection charge of the township:
10 (1) before the township increases or creates a
11 connection charge;
12 (2) upon the request of the supervisor or a majority of
13 the township board of the township;
14 (3) upon the request of a majority of the mayors or
15 village presidents of the municipalities located within or
16 substantially within the township or township's facility
17 planning area; or
18 (4) upon the filing with the township board of a
19 petition signed by 10% or more of the customers who have
20 paid connection charges to the township in the previous 5
21 calendar years.
22 The cost study shall be conducted by an independent entity
23within 6 months of action taken under paragraphs (1), (2), (3),
24or (4) of this subsection (d). If a cost study is requested
25under paragraphs (1) or (2) of this subsection, then the
26township shall order and pay for the cost study. If a cost

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1study is requested under paragraphs (3) or (4) of this
2subsection, then the municipalities whose mayors or presidents
3requested the cost study under paragraph (3), or the customers
4who filed a petition under paragraph (4), shall choose the
5independent entity to conduct the cost study, order the cost
6study, and pay for the cost study. For purposes of subsections
7(d) and (e), the term "independent entity" shall mean an
8engineering firm that has not entered into a contract with any
9State agency, unit of local government, or non-governmental
10entity for goods or services within the township or township
11service area in the 24 months prior to being contracted to
12perform the cost study. After performing a cost study under
13this subsection (d), an independent entity may not contract
14with any State agency, unit of local government, or
15non-governmental entity for goods or services within the
16township or township service area in the 24 months after
17completion of the cost study other than to perform further cost
18studies under this subsection (d). A township shall not be
19required to conduct more than one cost study in a 60 month
20period under paragraphs (3) or (4) of this subsection (d). The
21cost study must include, at a minimum, an examination of
22residential and commercial similar water main and sewer
23connection charges for the waterworks system or sewerage
24system, whichever applies, in at least 30 units of local
25government in Illinois with a similar number of customers as
26are connected to the township's waterworks system and sewerage

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1system in neighboring units of local government or units of
2local government similar in size or population. Following the
3completion of the cost study, no increase or new connection
4charge may be imposed unless the increase or new charge is
5justified by the cost study. If the connection charge the
6township charged prior to completion of the cost study is
7higher than is justified by the cost study, the township shall
8reduce its connection charge to the amount justified by the
9cost study. For purposes of this subsection (d), "connection
10charge" means any charge or fee, by whatever name, assessed to
11recover the cost of connecting the customer's water main,
12sewer, or water main and sewer service line to the township's
13facilities, and includes only the direct and indirect costs of
14physically tying the service line into the township's main.
15 (e) (Blank). If a cost study has been conducted pursuant to
16subsection (d) of this Section and a new cost study is
17requested under paragraph (3) or (4) of subsection (d), the
18township shall obtain a written quote from an independent
19entity detailing the cost of the requested cost study and one
20of the following shall occur prior to a new cost study
21beginning:
22 (1) each township, village, and municipality whose
23 mayor or president requested the cost study under paragraph
24 (3) of subsection (d) shall pay a proportionate share of
25 the entire cost of the cost study as detailed in the
26 written quote required under this subsection (e); or

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1 (2) the customers who signed the petition under
2 paragraph (4) of subsection (d) shall pay a pro rata share
3 of the entire cost of the cost study as detailed in written
4 quote required under this subsection (e).
5 Payments required under either paragraph (1) or (2) of this
6subsection (e) shall be made to the township clerk, who shall
7forward the same to the independent entity upon receipt of
8entire amount of the written quote for the cost study. If the
9entire amount of the written quote for the cost study has not
10been received within 90 days from the township clerk providing
11public note of the amount of the written quote, then those
12amounts received by the township clerk shall be refunded to the
13persons or entities which paid them.
14 (f) For purposes of this Section:
15 "Connection charge" means any nominal charge or fee, by
16whatever name, assessed to recover the cost of connecting the
17customer's water main, sewer, or water main and sewer service
18line to the township's facilities, and includes only the direct
19and indirect costs of physically tying the service line into
20the township's main line in the adjoining utility easement.
21 "Independent entity" means an engineering firm that has not
22entered into a contract with any State agency, unit of local
23government, or non-governmental entity for goods or services
24within the township or township service area in the 24 months
25prior to being contracted to perform the cost study.
26(Source: P.A. 99-481, eff. 9-22-15; 99-498, eff. 1-29-16.)

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