S-534 - 07/16/1984 - WATER - Ordinances ORDINANCE NO. S- 534
AN ORDINANCE DECLARING AN INTENT TO RESCIND
THE OBLIGATION OF THE VILLAGE OF OAK BROOK FOR A PROPORTIONATE
SHARE OF DEVELOPMENT COSTS OF A PROJECT PROPOSED BY THE
DU PAGE WATER COMMISSION
WHEREAS, pursuant to the provisions of Division 135 of Article 11 of
the Illinois Municipal Code, the Village of Oak Brook (the "Municipality") passed
Ordinance S-500 on February 22, 1983 (the "Water Development Ordinance")
declaring the intent of the Municipality to obligate itself for a proportionate
share of the development costs of a project proposed by the Du Page Water
Commission to develop, acquire and construct a waterworks system and common
source of supply of water, including a pipeline transmission system, pumps,
reservoirs and related appurtances and land or rights in land, to pump and
provide storage for Lake Michigan water sufficient to supply the anticipated
needs of the water system of the Municipality and other participating members
(the "System"); and
WHEREAS, after enactment of the Water Development Ordinance by the
Municipality and the enactment of similar ordinances by other participating
members (the Municipality and the other participating members hereinafter
collectively referred to as the "Participating Members") , the Du Page Water
Commission approved the obligations contained in the Water Development Ordinance
and the similar ordinances enacted by the other Participating Members; and
WHEREAS, pursuant to the provisions of the Water Development Ordinance,
the Municipality executed and delivered a Water Development Cost Contract dated.
as of March 1 , 1983 (the "Water Development Cost Contract") between the Du Page
Water Commission and the Participating Members, wherein .the Municipality
obligated itself to pay its proportionate share of the development costs of the
System; and
WHEREAS, under the terms of the Water Development Cost Contract, the
Du Page Water Commission proposed to issue $16,000,000.00 interim water
development notes (the "Notes") to borrow funds temporarily for the payment of
the development costs of the Project in advance of permanent financing, to be
secured by a pledge by the Du Page Water Commission or the rights to receive
money from the Participating Municipalities under the Water Development Cost
Contract; and
WHEREAS, the Du Page Water Commission thereafter adopted a resolution
authorizing the sale of the Notes; and
WHEREAS, under the terms of the Water Development Cost Contract, the
Du Page Water Commission undertakes to use its best efforts to retire and refund
the Notes with permanent financing or other interim obligations prior to the time
the Municipality would be obligated to commence payment of its proportionate
share of the principal of and interest on the Notes as the same became due and
payable; and
WHEREAS, since the enactment of the Note Resolution, but before the
Notes were issued, the Illinois General Assembly has enacted a statute entitled
the Illinois Water Commission Act, Public Act 83-1123 resulting in substantial
changes to the provisions of Division 135 of the Illinois Municipal Code
concerning the organization, governing body, financing and operation of a water
commission created for the purpose of developing, acquiring and constructing a
waterworks system and a common source of supply of water; and
WHEREAS, the Du Page Water Commission and the Participating Members
believe the enactment of the Illinois Water Commission Act will seriously delay
the consummation of any permanent financing for the System through possible
litigation testing the validity of the legislation, thereby resulting in
necessary payment by the Participating Members of the principal of and interest
on the Notes, thereby frustrating the intent of the Water Development Cost
Contract of relieving the Participating Members of such payments through
consummation of permanent financing or refunding interim notes; and
Ordinance No. S- 534
An Ordinance Declaring An Intent
To Rescind The Obligation Of The
Village of Oak Brook For A
Proportionate Share of Development
Costs Of A Project Proposed By
The Du Page Water Commission
Page two
WHEREAS, in recognition of the forseen consequences of the enactment of
the Illinois Water Commission Act, the Du Page Water Commission will consider the
adoption of resolutions cancelling and terminating the Note Resolution and the
Water Development Cost Contract at a meeting or meetings to be held by the
Du Page Water Commission on or before July 30, 1984; and
WHEREAS, if the Du Page Water Commission adopts said resolutions on or
before July 30, 1984, it will be necessary, advisable, and in the best interests
of the Municipality to adopt this Ordinance rescinding and terminating the Water
Development Ordinance and the Water Development Cost Contract.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1 : That the preambles hereinabove set forth are hereby found to
be true and correct and are hereby incorporated herein by reference as if fully
set forth herein.
Section 2: Subject to the adoption of a resolution or resolutions by
the Du Page Water Commission on or before July 30, 1984 rescinding and
terminating the Note Resolution theretofore adopted by the Du Page Water
Commission, and rescinding and terminating, on its part, the Water Development
Cost Contract with the Participating Members, the Municipality does hereby
rescind and terminate the Water Development Ordinance, Ordinance 5-500 passed by
the Municipality on February 22, 1983, and on its part, the Water Development
Cost Contract executed by the Municipality as of March 1 , 1983, and the said
Water Development Ordinance and the Water Development Cost Contract shall
thereupon be of no further force and effect.
Section 3: If the Du Page Water Commission does not adopt a resolution
or resolutions on or before July 30, 1984 rescinding and terminating the Note
Resolution and the Water Development Cost Contract, the Municipality shall
continue to be bound by the Water Development Ordinance and be bound by and have
the benefit of the Water Development Cost Contract as if this Ordinance were not
enacted.
Section 4: That the'Village Clerk is hereby directed to deliver a
certified copy of this Ordinance to the Manager of the Du. Page Water Commission.
PASSED this 16th day of July , 1984,
Ayes: Trustees Maher Imrie Listecki and President Cerne
Nays: None
Absent: Trustees Philip, Rush and Watson
APPROVED this 16th day of July 1984.4-
ATTEST: Village President
Village Clerk .7e 4, �
A,proy.�d As To Ford:
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Village Atcei:nay
Published
Date Paper
Not Published XX