ORDINANCE

ORDINANCE

02-O-37

AN ORDINANCE OF THE CITY OF WAUKEGAN, ILLINOIS, MAKING

AMENDMENTS TO THE GENERAL BUSINESS LICENSE, APPLICABLE TO ALL

BUSINESSES IN THE CITY OF WAUKEGAN NOT OTHERWISE REQUIRED TO

MAINTAIN A LICENSE, EXCEPTING THOSE BUSINESSES WHICH ARE

EXEMPT FROM LICENSING BY LAW, AND INCLUDING RENTAL HOUSING

WHEREAS, the City of Waukegan is a home-rule unit of the State of Illinois, and

as such has those powers pursuant to the Constitution of the State of Illinois which are

not specifically reserved to the State itself; and

WHEREAS, the City Council of the City of Waukegan desires to make certain

amendments to the General Business License, which is in effect in the City, to require all

businesses operating within the City to obtain such a license, unless such business is

exempt from licensing by State law; and

WHEREAS, the City Council wishes to continue the requirement that among

those businesses which are required to be licensed shall be all rental housing properties

which contain three or more units, and all non-owner-occupied rental properties, and

further the City Council wishes to institute an inspection requirement for all such

properties as a prerequisite to obtaining a General Business License; and

WHEREAS, the City Council wishes to ensure that all businesses operating in the

City which are not currently licensed by the City Collector and Licensing Office, which

are not otherwise exempt as above, be now licensed as provided herein.

NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of

Waukegan, as follows:

Section 1: Chapter 14 of the City Code of the City of Waukegan is hereby

amended as follows:

Sec. 14-1. Licenses - Required.

All persons who conduct, engage in, maintain, operate, carry on, or

manage a business or occupation for which a license is not required under any other

provisions of this code, other than those businesses or occupations which are exempt

from city licensing pursuant to law, shall be required to apply for and obtain a General

Business License from the City Collector and Licensing Office for such business or

occupation, prior to commencing operation of such business or occupation in the City of

Waukegan. The license fee for said license shall be $50.00 per calendar year for each

business having a total of twenty-five (25) employees or less; $100.00 per calendar year

for each business having a total of twenty-five (25) up to one hundred (100) employees;

and $150.00 per calendar year for each business having a total of greater than one

hundred (100) employees. Businesses listed in Section 14-632 herein shall pay those fees

specifically set forth in that Section. The license fee for vending machines shall be $25.00

per vending machine per calendar year. The license fee for General Business Licenses

for businesses engaged in rental housing shall be as set forth in Section 14-4(b) of this

ordinance.

Sec. 14-2. Same - Application.

(a) All businesses or occupations licensed hereunder or under any other

provision of this Code shall provide the following information to the City Collector and

Licensing Office: (1) The names of the owners, general partners and officers of the

business or occupation, where applicable; (2) the addresses of all such business or

occupation located within the City; (3) a detailed and comprehensive description of such

business or occupation; (4) notification of an emergency contact, including name and 24-

hour telephone number, who is available to handle emergencies at the business location;

(5) evidence of a current year occupancy permit for the premises in which the business

will take place, or pending application for same, issued by or applied for with the

Waukegan Building Department under Sec. 118.1 of the BOCA National Building Code,

as adopted by the City of Waukegan, and no General Business License will be issued

until such a Occupancy Permit has been obtained by the Applicant; (6) in the case of a

rental housing business, such other items as set forth in Section 14-4 of this ordinance;

(7) any other information as may be required by the Licensing Official for the protection

of the public health, safety or welfare of the patrons of such businesses or occupations,

their employees and the general public, including those items as are required by Section

14-3 below. Further no person shall engage in any trade, profession, business or

privilege for which a license is required by any provision of this Code without first

obtaining such license from the City in the manner provided in this Chapter.

(b) As set forth in Section 14-14 herein, home occupations as those are defined

in the Zoning Code, except for home day care businesses under Section 4-4.3(4)(d)(4),

shall not be required to obtain an occupancy permit. Home day care businesses shall be

required to obtain an occupancy permit.

Sec. 14-3. Same - Qualifications of Applicants.

The general standards herein set out relative to the qualifications of every

applicant for a City license shall be considered and applied by the Licensing Official.

Such standards shall include the following:

(a). Penal history. The Applicant's criminal conviction history shall be

considered.

(b) License history. The Applicant's license history, whether such person,

in previously operating in this or another state under any license bas

had such license revoked or suspended, the reasons therefor.

provisions of this article or indebted or obligated in any manner to the

City except for current taxes and/or current water bill.

(d) Compliance with zoning. building and health regulations. The

Applicant shall furnish such proof as may be required to the effect that

the proposed license activity, including the premises in which the

activity is to be carried out (see requirement of occupancy certificate

in Section 14-2 above), is not in violation of City Zoning, Building, or

other regulations. In addition, the premises and proposed license

activity must comply with any other applicable State or Federal

requirements.

Sec. 14-4. Rental Unit Business License.

(a) All owners of rental housing properties in the City, except those

properties of two units or less in which the owner resides, shall be

required to be licensed by the City Collector and Licensing Official.

(b) The annual fee schedule for said units on a per building basis shall be

as follows:

1-2 units -- $25.00

3-10 units -- $10.00 per unit

Over 10 units -- $100

Contiguous complex of multi-family buildings

(Totaling more than 20 Units)

owned by the same

person or entity --$200 for entire complex

Owners who reside in their own licensed building shall not be required

to pay a unit fee for the unit in which they reside.

information required in Section 14-2 above for General Business

Licenses, and shall in addition provide the following information:

Total number of properties owned by the Applicant, and number

of units at each premises, whether the units are occupied or

vacant at the time of license application, and the Applicant shall

provide a copy of the current City of Waukegan Zoning Letter or

Certificate for each premises, or evidence that the individual has

owned the premises continuously since prior to the enactment of

the City of Waukegan Zoning Code in December, 1987.

(d)(i) All rental residential property except those units occupied by the

owner shall be subject to an annual inspection as a condition to the

issuance of the business license. An inspection shall be scheduled on

an annual basis by the Code Official at a time during the same month

as the original inspection. The inspection fee, to be paid annually at the

time of filing the license application, shall be $25.00 per unit.

(ii) Upon receipt of a completed application for a license or renewal

license for a rental residential property, including the payment of all

required fees and the scheduling of a required licensing inspection, the

License Administrator shall notify the Code Official within 48 hours.

(iii) Licensing inspections of rental residential property shall be

conducted within sixty (60) days of the issuance of an initial license or

renewal license. The licensing inspection shall determine whether the

residential rental property is in conformance with the Building,

Zoning, Property Maintenance and Life Safety Codes of the City of

Waukegan, and shall include a physical inspection of the rental

residential property including the building exterior, common areas,

basement, and the interior of each residential unit.

(iv) When a licensing inspection of a rental residential property

reveals any violations of applicable codes, a compliance period will be

set by the code official, based on the minimum reasonable amount of

time necessary to correct all violations given their number and

severity. This compliance period shall in no event exceed thirty (30)

days.

(v) A licensing re-inspection will be conducted at the end of the

compliance period, or sooner at the request of the owner. If the re-

inspection reveals that outstanding code violations remain, the

applicant will be charged a $15.00 re-inspection fee. The Code

Official shall set another compliance date for remediation of all

remaining code violations. The license shall remain in effect during

this re-inspection time period. If at the time of the re-inspection the

Code Official finds that the requirements of all applicable City codes

have not been met, or that any information provided in the license

application is false, the license shall be suspended and revocation

proceedings shall commence in accordance with this Chapter.

(vi) Individual units in a licensed premises that become vacant during

the course of a license year may not be re-occupied until they are re-

inspected and approved for occupancy. Such re-inspection shall be

conducted by the City at no charge.

Sec. 14-5. License Upon Full Compliance.

A residential rental property which is in total compliance at the time of the

licensing inspection shall receive a license with no additional inspections. Re-

inspection periods, suspension periods or revocation periods shall not alter the

original annual inspection date of the property. The property will become due for

an annual inspection during the same month as the originally selected inspection

month.

Sec. 14-6. Renewal Licenses; Suspension and Revocation for Non-payment.

(a) Existing licenses in good standing are able to be renewed annually.

Prior to the annual expiration date of each license, the Applicant shall submit an

application for license renewal, which shall include all the information required in

Section 14-2 above, or a statement indicating that such information is still current.

At the time of submittal of the renewal application and fee, the property shall be

scheduled for inspection. The provisions of Sec. 14-4(d) with regard to

scheduling inspection and re-inspection, shall apply. Renewal license fees shall

be paid at the time of the renewal application, in the same amounts as the initial

license fee. Renewal fees paid over thirty (30) days after the renewal date shall be

considered delinquent, and the existing license shall be suspended until such time

as a renewal application is made and the fee, plus a 25 percent (25%) late fee, is

paid. Any such suspension shall only remain in effect for a period of sixty (60)

days, at which time if the renewal application, renewal fee and late fee are not

received by the office of the City Collector and License Official, the license shall

be revoked. Such revocation shall be automatic, and shall not be subject to the

hearing process set out in Section 14-11 and 14-12 below. Individuals or

companies whose licenses are revoked for nonpayment of fees and penalties shall

be so notified by the License Official, and shall immediately cease operating

under the revoked license. The provisions of Section 14-8(c) below regarding

termination of water service shall also apply in those instances where licenses are

revoked for non-payment of fees and penalties, except in cases of buildings which

are equipped with an automatic fire sprinkler system. In such cases, water service

will not be terminated, but an additional penalty of $500 per day shall be imposed

on businesses whose licenses are revoked for non-payment of fees and penalties.

(b) If a residential rental property is licensed for a period of three (3)

years of successful annual inspection and renewal, renewal inspections shall be

required only every other year after the third year, and shall continue on a biennial

basis. If at any time the property fails its biennial inspection, the property shall

revert to an annual inspection schedule for another three-year period. The term

"fails" shall be defined to mean less than 90% compliance with all applicable City

codes in any single unit.

Sec. 14-7. Bonds and Insurance.

All bonds required by any provision of this Code shall be executed by two

sureties, or a surety company, and be approved as to form by the Corporation

Counsel. Where policies of insurance are required, such policies shall be

approved as to substance and form by the Corporation Counsel. Satisfactory

evidence of coverage by bond or insurance shall be filed with the City Collector

and License Official before the license is issued.

Set 14.8. Conditions Precedent to Issuance.

(a) Where the approval of any City Officer or State or Federal officer or

entity is required prior to the issuance of any license required by any

provision of this Code, such approval must be presented to the City

Collector and License Official before any license is issued. When all

conditions for issuing a license are fulfilled, The License Official shall

issue the license.

(b) No license shall be issued if the conduct of the licensed activity will be

contrary to the public health, safety or welfare of the public.

this ordinance shall be subject to water service termination, pursuant

to procedures as set forth in the ordinances of the City of Waukegan

having to do with water service, except for those businesses, as set

forth in Sec. 14-5 above, which have an automatic fire sprinkler

system, in addition to any and all remedies available to the City under

the provisions of the City Code, the Statutes of the State of Illinois or

other applicable law and regulations, including, but not limited to, the

ability of the License Official, acting in conjunction with the Police

Department, to arrest any and all individuals who operate a business in

the City of Waukegan without a current business license, and charging

them with a misdemeanor under Sec. 14-15 herein. Such business

shall be immediately closed down and not reopened until such time as

all laws and regulations are complied with, including all the

requirements of this Article.

Sec. 14-9. Exhibition of License on Premises.

Every licensee under provisions of this Code shall carry his license upon

his person at all times when engaged in the trade, profession, business or

privilege for which the license was granted; except that where such trade,

profession, business or privilege is conducted at a fixed place or

establishment, the license shall be exhibited at all times in a conspicuous

place at the business location. The Licensee shall produce the license

upon demand of any police officer or person representing the City of

Waukegan.

Sec. 14-10. No Transfer of License.

Unless otherwise provided, no license required by any provision of this

Code shall be transferable.

Sec. 14-11. Suspension or Revocation of Licenses.

Any license required by any provision of this Code that is issued by the

City may be suspended or revoked by the City for any of the following

causes:

(a) Fraud, misrepresentation or incorrect statement contained in the

application for license, or made in carrying on the licensed activity.

(b) Conviction of any crime, misdemeanor, or the violation of any

ordinance by an individual licensee or the officers and/or shareholders

and agents of a corporate licensee or the partners of a partnership

license.

breach of the peace, or a menace to the health, safety, or welfare of the

public, or a disturbance of the peace and comfort of the residents of the

City, or upon recommendation of any official charged with approving

health requirements on the licensed premises.

(d) Expiration or cancellation of any required bond or insurance, and/or

expiration or cancellation of the City of Waukegan occupancy permit.

(e) Actions unauthorized or beyond the scope of the license granted.

(f) Violation of provisions of this Code applicable to the trade, profession,

business or privilege, for which the license has been granted, or

regulations or laws of the state so applicable.

(g) Failure to continuously comply with all conditions required as

precedent to the approval of the license, including, but not limited to,

failure to comply with all requirements of the licensing inspection/re-

inspection.

Sec. 14-12. Same - Procedure.

(a) when a license is suspended for any of the items set forth in Sec. 14-

11 the License Administrator shall send notice to the licensee at the

address provided on the most recent license application. Said Notice shall

be sent by certified mail, return receipt requested, or personally served

upon the licensee. The notice shall include the following:

(i) Description of the property at which the licensed activity is

taking place sufficient for identification;

(ii) A statement of the reasons for the suspension;

(iii) An explanation of the licensee's right to appeal the

suspension;

(b) If the license was suspended based upon a re-inspection failure, the

licensee may request another re-inspection prior to revocation. The cost of

the said re-inspection shall be an additional $15.00. If; upon re-inspection,

the City finds that the licensed residential rental property in connection

with which the notice was issued is now in compliance with this Chapter,

the License Administrator may reinstate the license.

appeal the suspension by filing an appeal of the license suspension with

the Development Review Board of the City of Waukegan A request in

letter form to appeal the suspension shall be sufficient to cause the

Development Review Board to set a time and place for hearing of the

appeal. Such an appeal shall operate as a stay of the revocation until such

time as the Board renders a decision on the appeal. The Development

Review Board shall conduct a hearing according to its rules and

regulations, and may immediately revoke the license, continue the

suspension for a definite compliance date with revocation being the

penalty for noncompliance, or dismiss the charges and reinstate the

license. The Board's decision shall be in writing and shall be mailed to

the person making the appeal with ten (10) days after the conclusion of the

hearing, by certified mail, return receipt requested.

(d) Decisions of the Development Review Board with regard to license

suspensions and revocations may be appealed directly to the City Council,

by filing an appeal, which may be in the form of a letter request, within

ten (10) days of receipt of the Board's written decision.

(e) A license may be revoked when an appeal has not been filed within

twenty (20) days following the issuance of an order of suspension, or if the

suspension is sustained after an appeal. A license may also be revoked

when in the opinion of the Code Official emergency conditions exist in a

rental residential property that require the immediate vacating of a

structure as specified in the Waukegan Property Maintenance and Housing

Code.

(f) A license that has been properly revoked as herein provided shall not

be reinstated. The licensee may, however, obtain a new license after all

violations have been corrected and following the procedures for obtaining

a new license as set forth in this Chapter, including the payment of all

applicable fees.

(g) Whenever a license is revoked, following a hearing or twenty days

after suspension where no hearing was requested, the License

Administrator shall send notice to the licensee at the address provided on

the most recent license application on file with the City. Said notice shall

be sent by certified mail, return receipt requested. In the case of

revocation of a license for rental residential property the License

Administrator shall also notify all tenants and occupants of the property by

posting a notice on all entrances of the rental residential structure. The

notice to be posted shall contain the following language:

"You are hereby notified that the license for this building has been

revoked pursuant to the ordinances of the City of Waukegan. You

must vacate this building within sixty (60) days of the date of this

notice. If you fail to vacate this building you will be in violation of

the ordinances of the City of Waukegan, and could also be subject

to fines not to exceed $750.00 per day of violation."

(h) Whenever an owner or property agent of a rental residential property

fails to license said property with the City, the License Administrator shall

notify all tenants or occupants of the rental residential property by posting

a notice on all entrances to the rental residential property. The notice to be

posted shall contain the following language:

"You are hereby notified that the owner or agent for this building

has failed to obtain a license for this rental residential property as

required by the ordinances of the City of Waukegan. You must

vacate this building within sixty (60) days of the date of this

notice. If you fail to vacate this building you will be in violation of

the ordinances of the City of Waukegan, and could also be subject

to fines not to exceed $750.00 per day of violation."

Sec. 14-13. Inspection Access.

If any owner, property agent, tenant, occupant or other person in control of

a rental residential property or a dwelling unit therein fails or refuses to

consent to free access and entry to the property or dwelling unit under his

control for any inspection pursuant to this ordinance, the Code Official or

his designee may apply to the Circuit Court for a search warrant or other

appropriate court order authorizing such inspections.

Sec 14-14. Occupancy Permits for Premises of Exempt Businesses.

All businesses, including those that are otherwise exempt by law from the

requirement of obtaining a General Business License, must obtain an

occupancy permit from the City of Waukegan Building Department for the

premises in which the business will take place. Included in this

requirement are home day care businesses operated as home occupations

under Section 4-4.3(4)(d)(4) of the Zoning Code of the City of Waukegan.

This requirement shall not apply to any other home occupations operated

under the Zoning Code. Those businesses which are exempt by law from

the General Business License requirements shall have a period of one year

from the date of passage of this Ordinance to obtain the occupancy

certificate required by this Ordinance. The fee for obtaining this

Occupancy-only Permit shall be $50.00.

Sec. 14-15. Operating a business without a license - Misdemeanor.

Pursuant to the provisions of Illinois Consolidated Statutes, Chapter 65,

Section 5/1-2-1.1, the operation of a business in the City of Waukegan

without a business license when the same is required under the terms of

the code of ordinances of the City of Waukegan, including this Chapter,

hereby declared to the a misdemeanor, punishable by incarceration in a

penal institution other than the penitentiary not to exceed six (6) months.

This penalty shall be in addition to any and all other penalties and fines

provided by law.

Sec. 14-612. Outdoor sales not permitted by those holding a hawkers or

peddlers license.

Under no circumstances may the sale of items under Section 14-606

through 14-611 take place in the out-of-doors. This shall include push-

carts, mobile carts, mobile or stationary stands, or other outside sales.

This requirement shall not affect the provisions of Section 14-481 herein

regarding Mobile Food Vendors.

Section 2. Existing Section 14-14 is hereby deleted.

Section 3. Sections 14--17, 14-18 and 14-19 are hereby removed from this

Chapter and placed into Chapter 15 of the City Code regarding Offenses. These sections

are hereby renumbered as Sections 15-23, 15-24, and 15-25 respectively.

Section 4. Section 14-153(t) is hereby deleted.

Section 5. Section 14-281(4) is hereby deleted.

Section 6. Section 14-396 is hereby amended to read as follows:

Sec. 14-396. Inspections.

The License Official from time to time shall inspect and examine all

places where cigars, cigarettes, and tobacco are licensed to be sold, for the

purpose of ascertaining whether the laws of the state and ordinances of the city in

relation to the same are being complied with. Any person licensed to sell cigars,

cigarettes, or tobacco upon the demand of such official shall furnish to him or her

for inspection samples of cigars, cigarettes, or tobacco sold or offered for sale by

him, which such samples may be sent for analysis under the direction of the

Licensing Official. A record of such analysis shall be kept in his or her office

available for inspection of the public.

Section 7. Section 14-413(a) is hereby amended to read as follows:

Sec. 14-413. Fees.

(a) Generally. The annual fee for the license required by this division

shall be $100.00.

Section 8. Sections 14-436 and 14-437 are hereby deleted.

Section 9. All other portions of Chapter 14 that are not changed or amended by

this Ordinance shall remain in full force and effect.

Section 10. Upon the passage of this ordinance, Ordinance No. 01-O-127 and

Ordinance No. 02-O-7 shall be repealed. All other ordinances or parts of ordinances in

conflict with this ordinance are also hereby repealed, to the extent of such conflict.

Section 11. This ordinance shall be in full force and effect from and after its

passage, approval, and publication in pamphlet form as provided by law.

/s/ MAYOR RICHARD H. HYDE

ATTEST:

/s/ WAYNE MOTLEY, City Clerk

Presented and read at a regular meeting of the Waukegan City Council on the 6th

day of May, 2002.

Passed and approved at a regular meeting of the Waukegan City Council on the 6th

day of May, 2002.

ROLL CALL: Aldermen TenPas, Needham, Hyde, Cunningham, Balen,

Rickerd, Figueroa & Harris

AYES: Aldermen TenPas, Needham, Hyde, Cunningham, Balen,

Rickerd & Figueroa

NAYS: Alderman Harris

ABSENT: None

ABSTAIN: None