HomeMy WebLinkAbout2013 Ordinance No. 040t
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ORDINANCE NO. 7Z2.-
SERIES OF 2013
BY AUTHORITY
COUNCIL BILL NO. 39
INTRODUCED BY COUNCIL
MEMBER WOODWARD
AN ORDINANCE ADDING SECTION 10 TO TITLE 5, CHAPTER 1, ENTITLED "SPECIAL
CONDITIONS OF THE LICENSE"; AND DELETING TITLE 5, CHAPTER 17, ENTITLED
"GOING OUT OF BUSINESS AND DAMAGED GOODS SALES", OF THE ENGLEWOOD
MUNICIPAL CODE 2000.
WHEREAS , Title 5 of the Englewood Municipal Code was rewritten in the 1990 's ; and
WHEREAS , in the 1990's the City believed a license was necessary to address false and
misleading "going out of business sales ", because a few violators held perpetual going out of
business sales ; and
WHEREAS , since the 1990 's few if any of the licenses have been issued so that such license
can be eliminated from the Englewood Municipal Code by adding new language to the Code
• requiring license holders not to use "untrue, deceptive or misleading advertising"; and
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WHEREAS , the passage of this proposed ordinance will add new language requiring the license
holder to "conduct sales in strict conformity with representations made in advertising" to insure
that customers are not mislead and that sales are as advertised or represented; and
WHEREAS, Title 5, Chapter 7 of the Englewood Municipal Code 2000 is outdated; and
WHEREAS , misleading advertising and conducting sales in conformity with representations
made in advertising is being inserted into Title 5, Chapter 1 of the Englewood Municipal Code
requiring license holders not to employ misleading advertising and requiring them to conduct sales
in conformity with representations made in advertising ; and
WHEREAS , the Director of Finance and Administrative Services met with the Englewood City
Council to discuss these matters at the July 2013 Study Sessions.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO , AS FOLLOWS:
Section 1. The City Council of the City of Englewood, Colorado hereby authorizes amending
Title 5, Chapter 1, by the addition of a new Section 10 , entitled "Sp ecial Condition s of the
License" of the Englewood Municipal Code 2000, to read as follows:
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5-1-1 o: Special Conditions of the License,
License holders shall not employ any untrue, deceptive or misleading advertising and shall
conduct sales in strict conformity with representations made in advertising.
Section 2 . The City Council of the City of Englewood, Colorado hereby repeals Title 5,
Chapter 17, "Going Out of Business and Damaged Goods Sales", of the Englewood Municipal
Code 2000, in its entirety and reserves Chapter 17 for future legislation.
§ 17: CaiBg Out af BusiBess aBd Damaged Caads Sales
§ 17 1: Defieitiaes.
For the puff)ose ofthis Chapter, the following tefffis, phrases, 1Nords and their derivations shall
have the meanings gi'f'en herein:
Damaged Goods: A sale held out in such a manner as to reasonably cause the public to belie1,<e
that the sale will offer goods damaged by fire, smoke, v,,ater, or other reason.
Goi1'lg Out ofBusiness S-ale: A sale held out in such a manner as to reasonably cause the public
to believe that, upon the disposal of the stock of goods on hand, the business wql cease and 1Nill
be discontinued, including but not limited to the follo\ving sales: adjuster's, adjustment,
alteration, assignee's, bankrupt, benefit of administrator's, benefit of creditor's, benefit of
trustee's, building coming down, closing, creditors' committee, creditors' end, e'l(ecutor's, final
days, forced out, forced out of business, insolvents, last days, lease e'IEpires, liq-uidation, loss of
lease, mortgage sales, receiver's, trustee's, q-uitting business.
Goods: Is meant to include any goods, ,.,,,ares, ffierchandise or other property capable of being the
ob:i ect of a sale regulated by this Chapter.
§ 17 2: LieeBse Required.
It shall be unlawful to conduct a going out of business and/or damaged goods sales prior to
obtaining a license froffi the Licensing Officer ec,wept for the follov1ing:
-A: Persons acting pursuant to an order or process of a court of coffipetent jurisdiction, persons
acting in accordance with their powers and duties as public officials, and any publisher of a
ne1Nspaper, magazine or other publication, 1,vho publishes in good faith, any advertisement,
without knowledge of its false, decepti'f'e or misleading character or without knovlledge that
the provisions of this Chapter ha1,'e not been complied with.
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in accordan . ut of a· · pr01<1swns of Title 5 , Chapter 1 ~ge sale lice ce vnth the • · .
ee req · .
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. ,oef ef sales ••• 46jlesH. :
~ C ottJOP~)'f-' eof-f ~601:}lfficRf)ptEle~teB-H· ~•,i:er ~-= in,entory.
: m Chapter 1 of this T'tl A, ' e, Ifie le!le-·•
· &,le, Th.. De
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. ~Hlg Sj!Bsial
d . 0./J sit Req1,lired m ..
epos1t vlith the L' . add1t10n to all 1· • ISBB&B Of!; ""~ ,sal,le r relall ..i..e ef Ifie -·-•" an """''"" e-., • ..,,e lees , !!te "I' r
shall e . goods to ee sold d . ..........=¥•--p want shall
the lie stabhsh the deposit eased up unn~ the first , .. ,eek of the sal T rcent (3
""'" helde ; BB ~Rer ,al •· he Lis
~ Duties e f"J:,' :;wense flakier ..
follo:wing duties ~~-In add1twn to requir are requrred f 1 · ements of Gh owense holdapter 1 of this t. 1 ers under this cha t it e, the
t1 P er:
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+. No additions to imrentory raay ae raade Gl:lring the period of the licensed sale to the
stock of goods set forth in the imrentory attached to the application for license.
:i. License holders shall keep availalJle at the place of sale a duplicate copy of the
imrentory submitted with the application and shall present such dl:lplicates to inspecting
officials upon request. Each license holder shall further keep a.v:ailalJle for inspecting
officials his stock records or other records of ms ausiness relating to said sale or ms
application for a license .
~ License holders shall not eraploy any u-ntrue, deceptive or misleading ad1,rertising.
4. License holders shall condu.ct the licensed sale in strict conformity 1,vith any
representations raade in advertising.
~ License holders shall keep any goods separate and apart frora the goods listed in the
filed inventories as aeing 013:i ect of sale, and raake such distinction el ear to the public ay
placing tags on all inventoried goods in and alJout the place of sale, apprising the public
of the status of all such go eds.
~ Remove! &/Goods. If any goods descriaed in the inventory are rerao 1,red frora the place of
sale authori2ed ay the license, those goods shall lose their identity as the stock of any of the
"sales" defined ay the license. P.fo license 1,vill ae issued under tms chapter for conducting a
sale of those goods rerao:ved from the sale that identifies thera with the original license.
Section 3. Safety Clauses. The City Council hereby finds, detennines, and declares that this
Ordinance is promulgated under the general police power of the City of Englewood, that it is
promulgated for the health, safety, and welfare of the public, and that this Ordinance is necessary
for the preservation of health and safety and for the protection of public convenience and
welfare. The City Council further determines that the Ordinance bears a rational relation to the
proper legislative object sought to be obtained.
Section 4. Severability. If any clause, sentence, paragraph, or part of this Ordinance or the
application thereof to any person or circumstances shall for any reason be adjudged by a court of
competent jurisdiction invalid, such judgment shall not affect, impair or invalidate the remainder
of this Ordinance or it application to other persons or circumstances.
Section 5. Inconsistent Ordinances. All other Ordinances or portions thereof inconsistent or
conflicting with this Ordinance or any portion hereof are hereby repealed to the extent of such
inconsistency or conflict.
Section 6. Effect of repeal or modification. The repeal or modification of any provision of
the Code of the City of Englewood by this Ordinance shall not release, extinguish, alter, modify,
or change in whole or in part any penalty, forfeiture, or liability, either civil or criminal, which
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shall have been incurred under such provision, and each provision shall be treated and held as
still remaining in force for the purposes of sustaining any and all proper actions, suits,
proceedings, and prosecutions for the enforcement of the penalty, forfeiture, or liability, as well
as for the purpose of sustaining any judgment, decree, or order which can or may be rendered,
entered, or made in such actions, suits, proceedings, or prosecutions .
Section 7. Penalty. The Penalty Provision of Section 1-4-1 EMC shall apply to each and
every violation of this Ordinance .
Introduced , read in full, and passed on first reading on the 5th day of August, 2013.
Published by Title as a Bill for an Ordinance in the City's official newspaper on the 9th day of
August, 2013.
Published as a Bill for an Ordinance on the City's official website beginning on the 7th day of
August, 2013 for thirty (30) days.
Read by title and passed on final reading on the 19th day of August, 2013 .
Published by title in the City's official newspaper as Ordinance No. ~ Series of 2013, on
the 23 rd day of August, 2013.
Published by title on the City's official website beginning on the 21st day of
August, 2013 for thirty (30) days .
This Ordinance shall take effect thirty (30) days after publication following final passage.
I , Loucrishia A. Ellis , City Clerk of the City of Englewood, Colorado , hereby certify that the
above and foregoing is ;,MU-e copy of the Ordinance passed on final reading and published by
title as Ordinance No. '1.fd_, Series of 2013.
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COUNCIL COMMUNICATION
Date: Agenda Item: Subject:
August 5, 2013 9 a iv A Bill for an Ordinance Deleting Chapter 1 7 of Title 5 and
adding language to Chapter 5, Title 1 of the Englewood
Municipal Code (Business and License Regulations)
Initiated By: Staff Source:
Finance and Administrative Services Department Frank Gryglewicz, Director
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
City Council discussed this issue with staff at the study session on July 1, 2013. Council requested staff
prepare a bill for an ordinance deleting Title 5, Chapter 17, Going Out of Business and Damaged Goods
Sales and adding a new Section 1 0 to Chapter 1. A bill for an ordinance was prepared and place on the
August 5, 2013 Regular Agenda to delete Chapter 17 of Title 5.
RECOMMENDED ACTION
Staff recommends Council approve the attached bill for an ordinance deleting Chapter 1 7 of Title 5 in its
entirety and adding additional language to Chapter 1 as follows :
5-1-10: -Special Conditions of the License.
License holders shall not employ any untrue, deceptive or misleading advertising and
shall conduct sales in strict conformity with representations made in advertising.
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
Title 5 of the Englewood Municipal Code was completely rewritten in the 1990s. At that time City staff
believed a license was necessary to address false and misleading "going out of business sales" because a
few violators held perpetual going out of business sales . Since that time few, if any of the licenses have
been issued and staff believes the license can be deleted from Code if new language is added requiring
license holders not to use "untrue, deceptive or misleading advertising." Also, the new language requires
the license holder to "conduct sales in strict conformity with representations made in advertising" to insure
customers are not mislead that sales are as represented.
FINANCIAL IMPACT
These changes to the Code are revenue neutral.
LIST OF ATTACHMENTS
Proposed bill for an ordinance