HomeMy WebLinkAboutOrdinances - O-99-932 - 09/01/1999 - AUTHORIZE IMPROVEMENTS EMINENT DOMAING AND BONDORDINANCE NO. o-99-932
AN ORDINANCE authorizing improvements to the waterworks and
sewerage system of the City of McHenry, McHenry County,
Illinois, authorizing the issuance of waterworks and sewerage
revenue bonds therefor in an aggregate principal amount not to
exceed $15,000,000 and authorizing contract negotiations and
eminent domain proceedings relating to the property located at
3302 W. Waukegan Road, McHenry, Illinois.
WHEREAS, the City of McHenry, McHenry County, Illinois (the "City"), is a duly
organized and existing municipality incorporated and existing under the provisions of the laws of
the State of Illinois, is now operating under the provisions of the Illinois Municipal Code, as
amended (the "Code"), and for many years has owned and operated a municipally --owned
waterworks and sewerage system as a combined utility (the "System") as set forth in Division
139 of Article 11 of the Code; and
WHEREAS, the City Council of the City (the "Corporate Authorities") has determined
that it is advisable, necessary and in the best interests of the public health, safety and welfare to
improve the System by expanding the City's central wastewater treatment plant located at
3306 W. Waukegan Road within the City (the "Project"), all in accordance with preliminary
estimate of costs therefor, which have been prepared by the City; and
WHEREAS, the estimated cost of constructing and installing the Project, including
engineering, legal, financial, bond discount, printing and publication costs and other expenses is
between $10,000,000 and $15,000,000, and there are insufficient funds on hand and lawfully
available to pay the entire cost of the Project; and
WHEREAS, it is necessary and for the best interests of the City that the Project be
undertaken to meet the future ammonia -nitrogen discharge limits anticipated to be imposed by
the Illinois Environmental Protection Agency and provide for additional treatment capacity to
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serve future growth and in order to finance the costs thereof it will be necessary for the City to
issue up to $15,000,000 in bonds payable from the revenues of the System as authorized to be
issued at this time pursuant to Division 139 of Article 11 of the Code and Division 4 of Article 8
of the Code (the "Revenue Bonds"), which proceeds of the Revenue Bonds along with funds on
hand and lawfully available will be sufficient to pay the cost of the Project; and
WHEREAS, the Revenue Bonds will be in addition to the presently outstanding bonds that
are also payable from the revenues of the System; and
WHEREAS, the construction of the Project requires construction of additional sanitary
sewer improvements through property commonly known as 3302 W. Waukegan Road,
McHenry, Illinois, legally described and depicted as "Parcel 1" on the attached Exhibit A, all
being within the corporate limits of the City (the "Subject Property"); and
WHEREAS, to facilitate the construction of the Project, the City's attorney sent
correspondence to the owners of the Subject Property, dated August 17, 1999, attached hereto as
Exhibit B; and
WHEREAS, no response has been received by the City; and
WHEREAS, without the acquisition of the Subject Property, the Project cannot be
undertaken; and
WHEREAS, the City engineer anticipates a useful life span for the component parts of the
Project of at least 50 years; and
WHEREAS, it has been determined by the City Council that it is necessary, desirable and
in the best interests of the City to institute eminent domain proceedings to acquire the Subject
Property in order to construct the Project, which will improve the health, safety and welfare of
the public; and
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WHEREAS, the City has received a written preliminary appraisal indicating that the
market value of the fee simple interest of the Subject Property is $812,000 as of July 12, 1999;
and
WHEREAS, Section 11-139-12 of the Code provides the City with authority and rights of
eminent domain for the purposes of acquiring, constructing or improving the System:
NOW, THEREFORE, Be It Ordained by the City Council of the City of McHenry,
McHenry County, Illinois, as follows:
Section 1. Incorporation of Preambles. The Corporate Authorities hereby find that all
of the recitals contained in the preambles to this ordinance are full, true and correct and do
incorporate them into this ordinance by this reference.
Section 2. Determination to Issue Bonds. It is necessary and in the best interests; of the
City to construct the Project for the public health, safety and welfare, in accordance with the
preliminary estimate of costs as hereinabove described, that the System continue to be operated
as a combined utility in accordance with the provisions of Division 139 of Article 11 of the
Code, and that for such purpose, there are hereby authorized to be issued and sold the Revenue
Bonds in an aggregate principal amount not to exceed $15,000,000.
Section 3. Publication. This ordinance, together with a notice in the statutory form
(the "Notice"), shall be published once within ten (10) days after passage hereof by the
Corporate Authorities in the Northwest Herald, the same being a newspaper published in and of
general circulation in the City, and if no petition, signed by l , 2 74 electors, being equal to ten
percent (10%) of the number of registered voters in the City, asking that the question of
improving the System, as provided in this ordinance, and the issuance of the Revenue Bonds
therefor, be submitted to the electors of the City is filed with the City Clerk within thirty (30)
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days after the date of the publication of this ordinance and the Notice, then this ordinance shall
be in full force and effect.
Section 4. Additional Ordinances. If no petition meeting the requirements of
applicable law is filed during the petition period hereinabove referred to, then the Corporate
Authorities may adopt additional ordinances or proceedings supplementing or amending this
ordinance providing for the issuance and sale of the Revenue Bonds, prescribing all the details of
the Revenue Bonds, and providing for the collection, segregation and distribution of the revenues
of the System, so long as the maximum amount of the Revenue Bonds, as set forth in this
ordinance is not exceeded and there is no material change in the Project or other purposes
described herein. Such additional ordinances or proceedings shall in all instances become
effective immediately without publication or posting or any further act or requirement. This
ordinance, together with such additional ordinances or proceedings, shall constitute complete
authority for the issuance of the Revenue Bonds under applicable law.
Section S. Authorizing Contract Negotiations and Eminent Domain Proceedings. The
City staff and City attorney are hereby authorized and directed to provide the owners of the
Subject Property with a written offer to purchase the fee simple interest in the Subject Property
for the sum of $812,000. In the event that a response to this offer is not received within fourteen
(14) days following the written offer, the City attorney is authorized and directed to institute and
maintain eminent domain proceedings to acquire the fee simple interest in Subject Property
pursuant to Section 11-139-12 of the Code. The right of eminent domain for -the acquisition of
the Subject Property is desirable and in the best interests of the City in order to improve the
health, safety and welfare of the public through the proposed sanitary sewer improvements to the
City's central wastewater treatment facility.
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Section 6. Severability. If any section, paragraph, clause or provision of this ordinance
shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect
any of the other provisions of this ordinance.
Section 7. Repealer. All ordinances, resolutions or orders, or parts thereof, in conflict
with the provisions of this ordinance are to the extent of such conflict hereby repealed.
ADOPTED by the Corporate Authorities on September 1 , 1999.
AYES: Bolger Glab McClatchey, Murga royd, Rai rrl
NAYS: None.
ABSENT: None .
APPROVED on September 1 , 1999.
ayor, City of McHenry,
McHenry County, Illinois
PUBLISHED in the Northwest Herald on , 1999.
RECORDED in the City Records on 9 - J - 9 9 , 1999.
Attest:
City Clerk, Ci of McHe ,
McHenry County, Illinois
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