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_ VILLAGE OF OAK BROOK '
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9e Village Board Transmittal Memorandum
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DATE: August 10, 2001
SUBJECT: Amendments to the Village Code — Foreign Fire Insurance Tax Board
FROM: Richard A. Martens, Village Attorney
RECOMMENDATION: That the Village Board adopt the attached ordinance.
The statute governing the Foreign Fire Insurance Tax Board has been amended, thereby necessitating a
revision to our local ordinance.
By way of background, this law, originally enacted in 1895, states that out -of -state insurance
companies providing coverage in Illinois must pay a sum not exceeding 2% of the gross receipts
received from fire insurance upon property in the Village or such lesser sum set by local ordinance.
The tax is required because these companies are immune to other Illinois taxes. In practice, the Illinois
Municipal League collects this tax for a small fee and allocates the tax among the Illinois
municipalities.
Our current ordinance provides that any expenditure in excess of $5,000 is subject to the approval of
the President and Board of Trustees, provided that the Board shall approve such expenditure if it is for
the maintenance, use and benefit of the department. This language is based on the prior statute which
provided that "the treasurer of the fire department shall receive the money so paid in and shall pay out
the money upon the order of the fire department for the maintenance, use and benefit of the
department."
The statute has been amended to provide that "the treasurer of the department foreign fire insurance
board shall receive the appropriated money and shall pay out the money upon the order of the
department foreign fire insurance board for the maintenance, use and benefit of the department."
Accordingly, I have modified the provisions of our local ordinance to conform with the amended
statute.
The firefighters have asked that all members of the department, including probationers, be eligible to
serve on the Board. The statute permits this.
A "red - lined" version of the ordinance is attached for your convenience. Because the foreign fire
insurance tax funds are public funds, I have advised the foreign fire insurance tax board that they must
be used for the purposes set forth in the statute and should conform to the Village's purchasing
procedures.
I understand you will consider this matter at your regular meeting on August 14, 2001.
pc: Foreign Fire Insurance Tar Board
FOREIGN FIRC.doc
Ordinance 2001- BD -FF -G-
AN ORDINANCE AMENDING
TITLE 2, CHAPTER 6, FOREIGN FIRE INSURANCE TAX BOARD,
OF THE VILLAGE CODE OF
THE VILLAGE OF OAK BROOK, IL
WHEREAS, the corporate authorities previously ordained, approved and adopted
Ordinance G -581 establishing a Foreign Fire Insurance Tax Board, which ordinance has been
incorporated in the Village Code as Chapter 6 of Title 2; and
WHEREAS, the corporate authorities, from time to time, have amended said Village
Code; and
WHEREAS, the Village President and Board of Trustees deem the further amendment to
Chapter 6 of Title 2 of said Village Code to be appropriate, and in the best interest of the
citizens of the Village of Oak Brook;
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 provisions of the preamble hereinabove set forth are hereby
adopted as though fully set forth herein.
Section 2: That Title 2, Chapter 6, Foreign Fire Insurance Tax Board of the Village Code
of the Village of Oak Brook is hereby amended to read as follows:
"CHAPTER 6
FOREIGN FIRE INSURANCE TAX BOARD
2 -6 -1: BOARD CREATED; MEMBERSHIP:
The Village of Oak Brook Foreign Fire Insurance Tax Board is hereby created to consist of four
(4) members. Four (4) officers shall comprise the Board and shall be elected from all employees
of the Village of Oak Brook Fire Department and shall have full voting privileges on any matter
before such Board. The officers shall be a president, vice president, treasurer and secretary.
The offices of the Board shall be filled by election by the employees of the Fire Department. In
addition to the officers as provided above, the Fire Chief or his designee shall be an ex officio
member, unless otherwise elected to the Board at an election held in accordance with the
provisions of this Section. As an ex officio member, the Fire Chief shall not have any voting
privileges, but shall have the right to participate in all open or closed session discussions
regarding the management of foreign fire insurance tax funds, preparation of long -range
Ordinance 2001- BD -FF -G-
Foreign Fire Insurance Tax Board
Page 2
financial plans and annual budgets, or any other matter within the scope of the powers and
duties of the Board and notice of any regular or special meeting in the same manner given to
any voting member. (Ord. G -581, 1 -28 -1997)
2 -6 -2: DEFINITION:
The term "employee ", as used in this Chapter, shall mean any full -time sworn firefighter, paid
on -call firefighter or other member or officer of the Village of Oak Brook Fire Department,
including the Fire Chief and all promoted positions.
(Ord. G -581, 1 -28 -1997)
2 -6 -3: TERMS:
The initial and successor elections of the Board shall be held prior to May 1, 1997, and May 1 in
odd - numbered years thereafter. Officers shall take office on May 1 and shall serve up to and
including April 30 two (2) years later. The terms for all officers shall be two (2) years. The initial
election shall be held in accordance with guidelines and procedures established by the Village
Attorney; and, thereafter, the Board shall adopt all necessary rules and regulations governing
the nomination and election of such officers for subsequent elections. (Ord. G -581, 1 -28 -1997)
2 -6-4: FOREIGN FIRE INSURANCE TAX FUND:
A Village of Oak Brook Fire Department Foreign Fire Insurance Tax Fund is hereby created and
all revenue received by the Village from the foreign fire insurance tax shall be deposited in the
Fund and shall be held and expended according to the following procedures:
A.
All funds paid to the Village Treasurer
pursuant to Division 10 "Foreign Fire Insurance Company Fees" of Article 11 of
the Illinois Municipal Code (65 ILCS 5111 -10 -1 et seq.) shall be set apart and shall
be appropriated annually by the corporate authorities to the Board.
CB.
The Treasurer of the
Board shall receive the appropriated money and shall pay out the money upon the
order of the Board for the maintenance, use and benefit of the Department.
9C. By July 31 of each year, the officers of the Board shall approve a five (5) year
projection and a preliminary budget for the subsequent calendar year for the expenditure
of the funds received pursuant to the foreign fire insurance tax. The officers of the Board
shall, no later than September 30, adopt a final budget for the collection and expenditure
of the foreign fire insurance tax for the subsequent calendar year, to be approved by
ordinance by the Village President and Board of Trustees in conjunction with the annual
municipal budget, in order to comply with the statutory mandate of a prior appropriation
for all expenditures. The final budget may be amended at any time by a majority vote of
the officers of the Board with the concurrence of the Village President and Board of
Ordinance 2001- BD -FF -G-
Foreign Fire Insurance Tax Board
Page 3
Trustees consistent with established practice. Expenditures shall be made only for items
specifically described in the final budget as originally adopted or subsequently amended.
D. Any expenditure made from the Fund shall be made in accordance with Village rules,
regulations, practices and ordinances, as may be amended from time to time, which
govern the procurement of goods and services.
E. No expenditure shall be made from the Fund without approval of the Board.
F. The Board treasurer shall give a bond to the Village President and Board of Trustees
in an amount equal to three (3) times the amount of foreign fire insurance tax revenue to
ensure the faithful performance of the Board treasurer of his duties imposed by law and
by Board rules and regulations. Fees for said bond shall be paid from the funds collected
from the foreign fire insurance tax.
G. The Board treasurer shall be responsible for paying the service charge levied by the
Illinois Municipal League for the collection of the foreign fire insurance tax from the
proceeds of the foreign fire insurance tax, provided such fee is chargeable by State law;
and provided that the service charge has not already been retained by the Illinois
Municipal League prior to disbursement of the tax. (Ord. G -581, 1 -28 -1997)
2 -6 -5: MEETINGS:
In accordance with the Open Meetings Act, the Board shall establish a regular time and place
for its meetings. The president shall preside at the meetings. The secretary shall keep a record
of all resolutions, proceedings and actions of the Board, and these records shall be open to the
public. Three (3) members of the Board shall constitute a quorum for the transaction of its
business. The affirmative vote of three (3) members of the Board shall constitute approval of
business before it. Special meetings, with appropriate notice, may be called by the president or
by no less than three (3) members of the Board. Any person shall be entitled to appear and be
heard on any matter before the Board. (Ord. G -581, 1 -28 -1997)
2 -6 -6: RULES AND REGULATIONS:
The Board may promulgate written rules and regulations governing Board matters so long as
such rules and regulations are not inconsistent with any applicable law.
. All rules and regulations
shall be posted in each fire station, the Oak Brook Village Hall and a copy provided to the
Village Clerk. ,
The Board secretary shall maintain a record of
all Board rules and regulations, which shall be available for public inspection.
At no time shall the actions of the Board or its officers interfere with the rights of the Fire Chief,
the composition of the Oak Brook Fire Department, the Oak Brook Board of Fire and Police
Commissioners, or in any way impede the ordinary operation of the Oak Brook Fire Department.
(Ord. G -581, 1 -28 -1997)
Ordinance 2001- BD -FF -G-
Foreign Fire Insurance Tax Board
Page 4
Section 3: That all ordinances or parts of ordinances in conflict herewith are, to the
extent of such conflict, hereby repealed.
Section 4: That the Village Clerk is hereby authorized and directed to publish this
ordinance and the official Village Code of Ordinances of the Village of Oak Brook in
pamphlet/book form in the manner provided by law.
PASSED THIS day of August, 2001.
Ayes:
Nays:
Absent:
Abstain:
APPROVED THIS day of August, 2001.
ATTEST:
Village Clerk
Approved as to form:
Village Attorney
Village President
Published in Pamphlet/Book Form:
(Date)
7. B. 1) (continued)
The Village Engineer, in reviewing the traffic and parking needs
along Tower Drive, had recommended that the current parking
prohibition along this street be relaxed by allowing parking on the
west side of the street. Tower Drive is a very short street that
services the Oak Brook Surgical Centre, well house #3, and a small
business on the east side of the street. There appears to be a need
for parking in this area, particularly for patients of the surgical
center.
Motion by Trustee Savino, seconded by Trustee Butler, to approve
Ordinance #2001 -TC -G -681, "An Ordinance Amending Title 7,
Chapter 2, The Traffic Ordinance, of the Village Code of the
Village of Oak Brook to Regulate Parking Along Tower Drive ", as
presented and waive the full reading thereof. ROLL CALL VOTE:
Ayes: 5 — Trustees Butler, Caleel, Craig, Miologos and Savino.
Nays: 0 — None.
Absent: 1 — Trustee Korin. Motion carried.
2) ORDINANCE #2001- BD -FF -G -680, AN ORDINANCE
AMENDING TITLE 2, CHPATER 6 FOREIGN FIRE
INSURANCE TAX BOARD, OF THE VILLAGE CODE OF THE
VILLAGE OF OAK BROOK, ILLINOIS
The statute governing the Foreign Fire Insurance Tax Board has
been amended, thereby necessitating a revision to our local
ordinance. This law, originally enacted in 1895, states that out -of-
state insurance companies providing coverage in Illinois must pay a
sum not exceeding 2% of the gross receipts received from fire
insurance upon property in the Village or such lesser sum set by
local ordinance. The tax is required because these companies are
immune to other Illinois taxes. In practice, the Illinois Municipal
League collects this tax for a small fee and allocates the tax among
the Illinois municipalities. The Village's current ordinance
provides that any expenditure in excess of $5,000 is subject to the
approval of the Board of Trustees, provided that the Board shall
approve such expenditure if it is for the maintenance, use and
benefit of the department. This language is based on the prior
statute which provided that "the treasurer of the fire department
shall receive the money so paid in and shall pay out the money
upon the order of the fire department for the maintenance, use and
benefit of the department."
VILLAGE OF OAK BROOK Minutes
I WA
Page 6 of 14 August 14, 2001
#01 -8 D -FF -G -630
AMEND TITLE 2
CHPTR 6, FRGN
FIRE INS TAX BD
7. B. 2) (continued)
The statute has been amended to provide that "the treasurer of the
department foreign fire insurance board shall receive the
appropriated money and shall pay out the money upon the order of
the department foreign fire insurance board for the maintenance,
use and benefit of the department." The firefighters have asked that
all members of the department, including probationers, be eligible
to serve on the Board that is permitted by State Statute.
Motion by Trustee Caleel, seconded by Trustee Butler, to approve
Ordinance #2001- BD -FF -G -680 An Ordinance Amending Title 2,
Chapter 6, Foreign Fire Insurance Tax Board, of the Village Code
of the Village of Oak Brook, Illinois" as presented and waive the
full reading thereof. ROLL CALL VOTE:
Ayes: 5 — Trustees Butler, Caleel, Craig, Miologos and Savino.
Nays: 0 — None.
Absent: 1 — Trustee Korin. Motion carried.
7. B. 3) The Board addressed this agenda item earlier in the meeting.
C. AWARD OF CONTRACTS:
1) STREET MARKER PROJECT
Staff was directed at the July 10, 2001 meeting to negotiate with
Western Remac Inc. and TAPCO Inc. for the purpose of supplying
approximately 160 street markers comprised of sign posts,
ornamental post bases, sign frames, and post finials. Additionally,
staff was asked to prepare a cost estimate for updating our existing
street marker design with larger posts, sign blades and post finials.
Staff did not receive any of the additional information requested
from Western Remac; apparently, the company is not interested in
pursuing the project. After additional review of their submitted
proposal, the design itself, which is a totally cast piece, would be
physically difficult to store due to its size, and would require that the
entire assembly be replaced if any one component were damaged.
This would significantly drive up replacement and inventory costs.
Therefore, it is staffs opinion that this design, as submitted, would
not be in the best interest of the Village long -term. TAPCO's design
is multi - pieced which means that only the pieces damaged would
have to be replaced not the entire assembly.
VILLAGE OF OAK BROOK Minutes Page 7 of 14
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August 14, 2001
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VILLAGE OF OAK BROOK
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS 60523 -2255
August 16, 2001
STERLING CODIFIERS, INC.
7600 Mineral Drive, Suite 200
Coeur d'Alene, ID 83814
Attn Robertson S. Rollins, General Manager
Dear Rob
PHONE 630 990 -3000
FAX 630 990-0876
W E B S I T E www oak -brook orb
The Village Board, at their meeting of Tuesday, August 14, 2001, passed and approved:
✓RDINANCE 2001- BD -FF -G -680 AN ORDINANCE AMENDING TITLE 2. HAPTER 6. FOREIGN
FIRE INSURANCE TAX BOARD OF THE VILLAGE CODE OF THE VILLAGE OF OAK BROOK, IL
ORDINANCE 2001 -TC -G -681 AN ORDINANCE AMENDING TITLE 7. CHAPTER 2. THE
TRAFFIC ORDINANCE OF THE VILLAGE COD4E OF THE VILLAGE OF OAK BROOK TO
REGULATE PARKING ALONG TOWER DRIVE
The above ordinances are being forwarded to you for inclusion in the Village Code of the Village of Oak Brook I
would appreciate your acknowledging receipt of this ordinance
Sincerely,
Richard A. Martens
Village Attorney,
RAM:sps
Enclosures