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TO: Mayor Richard C. Irvin
FROM: Jennifer Stallings, City Clerk
DATE: December 23, 2022
SUBJECT:
To establish a yearly fee for Liquor License Endorsements and Maximum Violation Fees for Licensees, Related to Chapter 6, "Alcoholic Liquor" of the Code of Ordinances.
PURPOSE:
To assess an appropriate fee for the optional Liquor License Endorsements available to liquor licensees as well as maximum fees that may be assessed when a violation of the liquor code is committed.
BACKGROUND:
On April 14, 2020, revisions were made to Chapter 6, "Alcoholic Liquor", including the addition of endorsements available to licensees. An endorsement is an option available as an "add on" to a current liquor license that adds to the licensee's ability to sell or serve alcohol (i.e., strolling, catering, BYOB, package sales). The endorsement option was enacted during the COVID pandemic and no additional fees were initially assessed for endorsements.
The maximum fee for a violation of the liquor code has been set at $2,000.00 since a fee range was added to the fee schedule in 2018. A maximum violation fee should be set high enough to serve as a deterrent and should be high enough to be punitive, when necessary.
DISCUSSION:
Now that fee-free endorsements have been available for two renewal cycles, we have determined an appropriate fee based on several factors. First, research looking for similar endorsement fees used by other municipalities showed that the endorsement concept is not frequently used, with one other area municipality utilizing a somewhat similar (although not identical) endorsement model, the City of Park Ridge. Park Ridge's endorsement fees range from $250.00 to $1,500.00 with those endorsements most similar to Aurora's costing $250.00. Second, staff time is expended in the application processing, review and issuance of endorsements and now that we have issued several endorsements, we have a general idea of the time involved in this process. Third, over the last two years, significant savings has been passed along to some businesses that were eligible for an endorsement to their liquor license, instead of a second liquor license. Effectively, some businesses that were previously required to purchase two separate licensees now only have to purchase one license and an endorsement. This cost savings to businesses was an intended consequence of the implementation of the endorsement format. Finally, while a nominal fee of $250.00 is proposed for each endorsement, businesses benefit from endorsements as they expand the ability of the licensees to generate sales and revenue. Based on these factors, staff feels it is appropriate to assess a nominal yearly fee of $250.00 per endorsement. Liquor license fees were last updated on January 25, 2022 pursuant to R22-016, however, endorsement fees were "reserved until 2023-2024 renewal year." The fee schedule now needs to be updated to add the endorsement fee.
Staff feels it is appropriate that the maximum fees for a violation of the liquor code be increased from $2,000.00 to $5,000.00 per violation to deter future behavior and serve a punitive function when needed.
IMPACT STATEMENT:
This change will amend the existing fee schedule to assess a $250.00 yearly fee for each endorsement and to increase the maximum fees for a violation of the liquor code to $5,000.00 per violation.
RECOMMENDATIONS:
Staff recommends that the proposed resolution be approved.
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution establishing a yearly fee for Liquor License Endorsements and maximum violation fees for licensees related to Chapter 6, "Alcoholic Liquor" of the Code of Ordinances.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, it is necessary for the City of Aurora to determine by separate ordinance or resolution of the City Council certain fees to be charged by the city.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows:
Section One: That all Resolutions or part of Resolutions in conflict herewith are hereby repealed insofar as any conflict exists.
Section Two: That the fees required by Chapter 6 of the City Code shall be as listed in the attached Exhibit A.
Section Three: That upon passage, the City Clerk shall publish this Resolution in pamphlet form.