G-1047 - 05/26/2015 - LICENSE -ALCOHOL - Ordinances Supporting Documents ITEM 6.D.9
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AGENDA ITEM!
Regular Board of Trustees Meeting
of
May 26, 2015
SUBJECT: An Amendment to Chapter 1 of Title 4 of the Village Code of the Village of Oak
Brook, Illinois Regarding Liquor License Regulations
FROM: Charlotte K. Pruss, Village Clerk
BUDGET SOURCE/BUDGET IMPACT: N/A
RECOMMENDED MOTION: I move to approve passage of Ordinance G-1047, "An
Ordinance Amending Chapter 1 of Title 4 of the Village Code of the Village of Oak Brook,
Illinois Regarding Liquor License Regulations"
Back-ground/History:
Section 4-1-15 of the Village Code requires liquor licensees to maintain a minimum amounts of
general liability and liquor liability insurance ("Insurance Requirements'.
After further review of this Section, and in consultation with the Village Attorney, Village Clerk
Charlotte Pruss and Deputy Village Clerk Kathy Vonachen recommend that Section 4-1-15 of
the Village Code be amended to clarify that the Insurance Requirements are not satisfied by
insurance policies that contain a self-insurance retention provision (SIR).
An insurance policy that contains a SIR provision requires the policy holder to pay a certain
dollar amount specified in the policy be ore the insurance company will respond to a loss or
claim. This means that if the policy holder cannot satisfy its SIR requirement, the insurance
company is not required to payout on a claim. A SIR provision differs from an insurance policy
with a deductible because, under a deductible policy, the insurance company is contractually
obligated to pay out on a claim even if the insured fails to satisfy its deductible.
Recommendation:
The recommendation is for passage of Ordinance G-1047, "An Ordinance Amending Title 4, of
Chapter 1, Section 15 of the Village Code of the Village of Oak Brook, Illinois Regarding
Liquor License Regulations " regarding Insurance Requirements.
ORDINANCE 2015-LC-AL-G-1047
AN ORDINANCE AMENDING SECTION 15.A OF CHAPTER 1 OF TITLE 4
OF THE VILLAGE CODE OF THE VILLAGE OF OAK BROOK, ILLINOIS
REGARDING LIQUOR LICENSE INSURANCE REQUIREMENTS
WHEREAS, the Village of Oak Brook, Illinois ("Village's is a body politic and corporate,
organized and existing pursuant to the Illinois Municipal Code, 65 ILCS 5/1-1-1 et seq.; and
WHEREAS, Section 11-42-10.1 of the Illinois Municipal Code, 65 ILCS 5/11-42-10.1, and Section
4-1 of the Illinois Liquor Control Act, 235 ILCS 5/4-1, provide the Village authority to determine the
number, kind, and classification of licenses for retail sales of alcoholic liquor; and
WHEREAS, pursuant to Chapter 1 of Title 4 of the Village Code of the Village of Oak Brook,
Illinois ("Village Code'j, the Village regulates the number, kind, and classification of licenses for retail
sales of alcoholic liquor; and
WHEREAS, Section 4-1-15.A of the Village Code requires liquor licensees to maintain general
liability and liquor liability insurance from responsible insurance companies authorized and licensed to
do business in Illinois ("Insurance Requirement'j; and
WHEREAS, Village staff has recommended the Insurance Requirement should be amended to
clarify that an insurance policy that includes a self-insurance retention term (SIR) requiring a licensee to
pay a specified amount before the insurance company responds to a loss or claim ("Proposed
Amendment's does not satisfy the Insurance Requirement; and
WHEREAS, the Village President and Board of Trustees have determined that it is in the best
interest of the Village and its residents to adopt the Proposed Amendment;
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: Recitals. The foregoing recitals are hereby incorporated into, and made a part
of, this Ordinance as the findings of the President and Board of Trustees of the Village of Oak Brook.
Section 2: Amendment to Title 4, Chapter 1, Section 15, Subsection A of the Village Code.
Subsection A, entitled "Insurance Requirements," of Section 15, entitled "Conditions of Licenses," of
Chapter 1, entitled "Liquor Control," of Title 4, entitled "Business and License Regulations," of the Village
Code shall be amended further, and shall read as follows:
4-1-15: CONDITIONS OF LICENSES:
A. Insurance Requirements:
1. All licensees shall have in effect, prior to the issuance of any liquor license
hereunder, general liability insurance with limits of not less than one million
dollars ($1,000,000.00) combined single limit or one million dollars
($1,000,000.00) per occurrence and per aggregate, naming the village of
Oak Brook as a party insured, and shall submit to the village a certificate or
policy of insurance as evidence of such coverage, issued by an insurance
company licensed to do business in the state and have a "Best" rating
acceptable to the village. The effective period of such insurance coverage
shall coincide with the period the liquor license is in effect. A general
Additions are bold and double-underlined;A°W;^^° are A...,&thFO.^�
Ordinance 2015-LC-AL-G-1047
Amending Section 4-1-15 of the Village Code
Re: Liquor License Requirements
Page 2 of 2
liabili y insurance policy containing a self-insurance retention
r�uire lent(SIR) does not satisfy the requirements of this subsection.
2. In addition, each liquor license applicant shall furnish evidence satisfactory to
the liquor control commissioner, or the commissioner's designee, that it is
covered by a policy of liquor liability insurance by a responsible insurance
company authorized and licensed to do business in the state insuring such
applicant in the amount of not less than one million dollars ($1,000,000.00).
liquor liability insurance policy containing a self-insurance retentio
requirement(SIR) does not satisfy the requirements of this subsection
Section 3: Severability. If any provision of this Ordinance or part thereof is held invalid by a
court of competent jurisdiction, the remaining provisions of this Ordinance shall remain in full force and
effect, and shall be interpreted, applied, and enforced so as to achieve, as near as may be, the purpose
and intent of this Ordinance to the greatest extent permitted by applicable law.
Section 4: Effective Date. This Ordinance shall be in full force and effect from and after its
passage, approval, and publication in the manner provided by law.
APPROVED THIS May 26th day of May, 2015
Gopal G. Lalmalani
Village President
PASSED THIS 26th day of May, 2015
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk
Additions are bold and double-underlined;a°'°*i^^°we strae-*hf!E)u '
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