Donovan v. County of Lake

951 N.E.2d 1256, 351 Ill. Dec. 592
CourtAppellate Court of Illinois
DecidedJuly 8, 2011
Docket2-10-0390
StatusPublished
Cited by2 cases

This text of 951 N.E.2d 1256 (Donovan v. County of Lake) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Donovan v. County of Lake, 951 N.E.2d 1256, 351 Ill. Dec. 592 (Ill. Ct. App. 2011).

Opinion

951 N.E.2d 1256 (2011)
351 Ill. Dec. 592

Christopher DONOVAN, Amanda Donovan, Robert Cooper, and Mary Cooper, Individually and on Behalf of All Persons Similarly Situated, Plaintiffs-Appellants,
v.
The COUNTY OF LAKE, Defendant-Appellee.

No. 2-10-0390.

Appellate Court of Illinois, Second District.

July 8, 2011.

*1258 Howard Philip Levine, DeAno & Scarry LLC, Wheaton, Shawn M. Collins, Aaron W. Rapier, The Collins Law Firm, P.C., Naperville, Patrick A. Salvi, Salvi & Schostok & Pritchard P.C., Waukegan, for Mary Cooper, Robert Cooper, Amanda Donovan, Christopher Donovan.

Michael J. Waller, Lake County State's Attorney, Daniel L. Jasica, Assistant State's Attorney, James C. Bakk, Law Offices of James C. Bakk, Waukegan, for Lake County, Illinois.

OPINION

Justice BIRKETT delivered the judgment of the court, with opinion.

¶ 1 Plaintiffs, Christopher Donovan, Amanda Donovan, Robert Cooper, and Mary Cooper, residents of the Glennshire subdivision in the Village of Hawthorne Woods (Village), brought a class action against defendant, the County of Lake (County), seeking to prevent the County from issuing revenue bonds repayable solely by customers of the Hawthorne Woods-Glennshire (HWG) water system (water system), for the costs of constructing a new water system. Judge Christopher C. Starck granted the County's motion to dismiss counts I and II of plaintiffs' amended complaint and transferred the remaining counts to the court's chancery division. In the chancery division, Judge Mitchell L. Hoffman granted summary judgment in favor of the County on counts III and IV of plaintiffs' second amended complaint. For the following reasons, we affirm the orders of the trial court.

¶ 2 I. FACTS

¶ 3 A. Background

¶ 4 The water system was originally constructed between 1954 and 1962 and served 224 residences by delivering water from 20 shallow wells. Each well served less than 15 residences, which classified the system as a "non-community water supply" and therefore not subject to public water system standards. See 415 ILCS 5/3.145 (West 2008).

¶ 5 The wells in the water system have water distribution mains, or piping, measuring 1½ to 2 inches in diameter and are located mainly in the back and front yards of private residences. Half of the water system was never under the Village's control and was acquired by the County in 1973 under an agreement to which the Village was not a party. In 1975, the Village contracted with the County for the County to take over the operation and ownership of the portion of the water system the Village controlled (contract hereinafter referred to as the 1975 contract).

¶ 6 In the 1975 contract, the County agreed to make any improvements to the water system that were required by the Illinois Environmental Protection Agency (IEPA). It also provided that, for operating, maintaining, or paying debts for improvements to the water system, the County was authorized to charge individual customers rates as required. Further, the contract provided that "[t]he County will from time to time issue revenue bonds to expand and improve the water supply facilities. Said revenue bonds shall be retired by funds derived from the local system."

*1259 ¶ 7 In operating the water system, the County sampled and tested the water monthly at each of the 20 wells and sent the results of those tests to the IEPA. Between September 2000 and August 2005, three test results showed coliform exceeding the maximum contaminant level.

¶ 8 In 2006, the County obtained a permit from the IEPA to install interim chlorination facilities for the water system. Those facilities were constructed and made operational before August 2006. On September 19, 2007, the County submitted to the Village for its approval engineering and design plans for an IEPA-compliant water system, along with an application for a Village permit to site the new water system's distribution piping in the Village's right-of-ways and public easements.

¶ 9 Since the Village had permitted a competing water supply system, Aqua Illinois, to be installed in the Village subsequent to the 1975 contract, in order for the new water system to be constructed, the Village required the County to: (1) connect the water system to the Aqua Illinois water system; and (2) obtain its new water supply by buying water in bulk from Aqua Illinois.

¶ 10 To fulfill the Village's requirements, the County negotiated a "Water Supply and Sales Agreement" with the Village and with Aqua Illinois. This contract was effective May 12, 2009 (the 2009 contract).

¶ 11 In the 2009 contract, the parties acknowledged that the 2009 contract was a supplement to the 1975 contract. The parties also acknowledged that the water system was not originally constructed to public water system standards and that the water system was at that time more than 50 years old. The parties noted that the IEPA had cited the water system for various violations of state drinking-water standards and that the Illinois Attorney General had filed against the County an enforcement action that sought the replacement of the water system with a state-code-compliant public water system (PWS).

¶ 12 Among other things, the 2009 contract provided for Village authorization of a surcharge to water system customers' water bills to retire subordinate revenue bonds issued by the County to fund the construction of the new water system.

¶ 13 Regarding the local funding for the construction of the new water system, the 2009 contact, paragraph 3(g)(2)(I), specifically provides:

"Funding Mechanism for new HWG PWS. The Village acknowledges and agrees that the proposed County-issued subordinate revenue bonds, secured by a surcharge on the water bills to HWG area Customers, is an appropriate funding mechanism by which the County is authorized, under the terms of the 1975 Contract between the Village and County, to charge and collect from HWG area Customers, for the proposed new Code-compliant HWG PWS construction and related costs. The Village agrees that the County is authorized, upon issuance of said County subordinate revenue bonds, to charge and collect from HWG area Customers, a surcharge on the water bills of HWG area Customers to retire said County-issued subordinate revenue bonds."

¶ 14 The construction permit for the new water system was issued on May 8, 2009, and identified the approved water supply distribution piping as "17,207 feet of 4-inch water main, 2,490 feet of 6-inch water main, 12,373 feet of 8-inch water main, and 1,885 feet of 10-inch water main." The replacement water system would be an entirely new, code-compliant public water system, with distribution piping located in public right-of-ways and easements.

*1260 ¶ 15 The initial estimates for the cost of building the new water system ranged from $23,000 to $25,000 per water system residence/parcel. However, following approval of the 2009 contract and the County's subsequent bidding out of the project, the actual cost for constructing the new water system is $11,600 per residence/parcel.

¶ 16 Before fixing the amount of the revenue bonds to be issued to fund the construction of the new water system, the County provided notice to the water system customers of the $11,600 per residence/parcel cost and offered the customers an opportunity to prepay that amount in a lump sum. Of the 227 parcels served by the water system, 144 customers prepaid the lump-sum amount.

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Bluebook (online)
951 N.E.2d 1256, 351 Ill. Dec. 592, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donovan-v-county-of-lake-illappct-2011.