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HomeMy WebLinkAbout1992 Ordinance No. 013ORDINANCE NO. 13 SE RIES OF 199'..,. BY AUTHORI TY COUNC IL BIL L NO. 10 I NT RODU CED BY COUNCIL MEMBER VAN DYKE AN ORDINAN CE AMENDING TITLE 5, CHAPTER 12, SECTICJN 3, OF THE ENG LEWOOD MUNICIPAL COD E WH ICH DEALS WITH GOING OUT OF BUS I NESS SA LE LICENSE . WHEREAS, tho Going Out of Business Sale Li ce nse was establish ed "ith the passage of Ordinance No . 29, Series of 1967 and was amended with the passage of Ordi nanc e of Ordin anc e No . 74, Series of 1981; and WHEREAS, the Going Out Of Bu si ness Sole Licen se wa s as tablishcd to protect loca l businesse s from unfair comp etition by com panies false ly claiming Lo be going ou t of busi ne ss and from b11sin e&1 liquidators and to ensure that final aales t.&Jtes wero co ll ec ted and r emi tted to L•< City by comp anie s going out of busi ne ss; and; and WHEREAS, the City Council wi she , to am end the Going Out Of Bu si ness Sale License pro visio ns of the Englewood Municipal Co de; NO W, THEREFORE , BE IT '.'WAINED BY THE CITY COUN CIL OF THE CITY OF EN GLEWOOD, CO LORADO, AS FOLLOWS: 5-12-J: 5-12-1-1: GOING OUT OF BUSINESS, FIRE , SM OKE AND WATER DAMAGED GOODS SALES: DEFINITIONS: For th e purpose of this Section , th e foll ow ing term ,, phrases, word s and thei r deri vatio ns shall have the mea nings given her &i n , FIRE SAL E, SMOKE SAL E WATE R SA LE A sale held out in such a mann er as to rea so nably cause th e public to believe that the sale will offer goods dam aged by fire, smoke or waler. GO ING OUT OF BU I. 'ESS SALE A sole h eld out in such o manner as lo reason ably cause the public to believe that, upo n the dis pos a l of the stock of goods on han d, th e busi ness ";11 cease oa d will be di sco ntin ued, inc lu ding but ne t limited to the fo 11owing sales: adju ste r's, adj ust1 rien t, nlteralion , assignee's, bank rupt, benefit of adm in istrato r's , hcn cfit of cre di tor's, be nefit of tru stee's, buil ding coming down , cl osin g, cred itors' commi ttee, creditors' e nd, exe cutor's finn l dnys1 for ced out, fo rc ed out of business , in solven ts , last dnys, lease ex pi re s, liquidation, los s of lense, mo rtgage sales, receiver's , trustee's, quitting business. •I - lO b GOODS Is me.ant t.o include any goods, wares, mercha ndi se or other property capable of being the object ofa sale regu lated hereunder. 5-12-3-2: EXEMPTIONS : The provisio ns ofthi• Chapter shall not apply lo pe rsons acting pursuant to an ord er or process of a court of comp etent ju risdiction, per so ns acting in nccordance with their powen and duties as public officials , nnd any pub li !!her of n news paper, ma gazine or other publicati on, who publis hes in good fai th , any odv c rtisem cnl withou kno wledge or its falsi , dece pti ve or mi sl eading characte r or without kn owledge lhal lhe provision s of thi s Secl'on have nol been co mplied with . 6--12-3-3: LICENSE REQU.ffiED, APPLICATION: A . It shall be unlawful for any person to 1ell or offe r for u le any goods al a sale ta be adverti sed or he.I d out by any mean s to be a goi ng out of business sale, a fire sal e, a smoke aale, a water damaged good s sale , or any combinati on ther~or without fir st having obtained a license therefor. B. A person desiring to conduct a sale regulated by lhi1 Section sha ll mak e written a pplication to the License Officer setting forth the fol\v•;ng information: l. The true name , d address of th• owner of the goods lo be the obj ec t of the sale. 2 . A description of the pince where such sale is lo be h el d. 3. The nature of the occu pancy, wh eth er by lea,e or s ubl ease, and th e effective da le or termination of such oc cupan cy. 4 . The dales of the period of lime in which the sale is to be co nducted. 5 . A full ~nd com plete statement of the facts in regard to the s ale inclu ding the reason for th e urge nt an d expeditiou s di sposal of goods the reby an d the manner in wh ich the :;a le will be conduckd. 6. An inventory or s tatem ent in such form and in such deta il a s the Lic ense Officer may r eq ui re settin g forth the am ount and description of th e goo ds to be sold at such sale and when r eqnired by the License Offi cer, th e date of acquisition of such goods , the persons from whom ob tained, an d the pi nce from which said goods were Inst taken . C Upo n the fil ing of the appli cati on , th e Licen se Offic er may mak e or ca use to be mode en investigation, e,amination or audit of the ap plicant and his off air s in relation to the propose d sa le . D. If the Li ce nse Offi ce r find s th e statements in th e eppli c-ntion nrc tru e and comp lete, and the proposed method of condu ctin g the ,mle are not suc h es to work n fr aud on pu rcha sers by mis rep res entati on or de ce ption, th en the Li cense Offic er s hall issue a licen se. Th e Li ce nse Offic er may deny the licen se on insuffi cie ncy of informe lio n in th e applicoti on, the statem ent or inventory, but in thal event he shall notify , in writing, th e applicant of t he specific grounds of insuffici ency, and sha ll gran t th e appli cant permission to file an amended or suppl emental ~ln lemenl or inventory. An y person who has held a regulated sale hereunder, at the location sta led in th e app lication, within ·me yen r last po st from the dal e of such aP$)1icati on shall no t be granted n license. -2- E . Ir the application •h all be denied , the applicant may require a hearing b efore the Li ce nse Ofl'Jc er; pro vi i ed 1 such reque st for hearing shall be in writing fil ed wi th the Lic er.se Offi cer within fi ve (5) days aller s uch denial . 5-12---3-4 : LICENS"i':FEE: A . Any applicant for a lic ense h ereunder shall su bmit l o the Li cense OfTic •r with hi s a, plic ation, a license fee of fifty dollars ($5 0.00). An ap plicant ror n renewal lkensc h ereunde r shall submit to the Lice nse Officer wit.h hi s renewa l opp li ceti on, a renewal license fee of twenty five dollars ($25 .00). B. Th e appli cant shall a!so .1eposit with the Li ce nsing Offi ce r an amount equal to 1,1,~ THREE AND ONE-HALF PERCE NT (3 .5%) of the r etail value of the g ,ods ta be so ld during the first week s of the sale. The Li ce n sing Offi ce r shall establish the deposit based upon prior sa les tax r eports fil ed with the Li censing Officer by the appli canL Afur th e first week of sales and pri or to any su b sequent week of the sale, the applicant shall deposit with the Licensing Offi ce r an amount •qual to tlt-~THREE AND ONE-HALF PERCENT (3 .5%) of the r etail value of the goods sold in the prior wee k of the sale. The depo sit may be in the form of cash or a bond acc eptable to the Licensing Offic er. The re co rds and transaction s of the a pplicant shall be s ubj ec t to we ekly review by the Lic ensi ng Offic er during the period of the sale. Lic ensees faili ng to comply with the sales tax filing and payment provisions of Title 4, Chapter 4 of this Code shall forfeit their deposit a~d the Lic ensing Officer sh all pursue the prop er coll ec tio n of all amounts properly due to the City under sai d Title 4 of thi s Code . AITER THE "AYMENT OF ALL TAXES DUE TO THE CITY, AN D VERIFICATION BY APPROPRIATE AUDIT , TH)?. THE CITY SHALL RETURN TO THE LICENSEE THE LICENSE FEE AND RE.'NEWAL FEE lF ANY, PROVIDED THE LICENSEE HAS COMPLIED WITH THE PROVI S IONS OF THIS CODE . 5-12---3-5: EFFECT OF LICENSE: The license sh all auth orize the sale described in the a pplication for a period of not more than sixty (6 0) co n se cuti ve doy s,-6und"Yti\nd holi~uded,following the issuance thereof, and shall authorize on ly the one ty pe of sale de scribed in th e a pplication at the location therein nam ed and of the goods described in th e inventory attached to the appl ication at the location therei n named and of the goods desc ribad in the inventary attached to th e application, and such add iti onal goods as have been approved for sale by the License Office r after a supplemental inventory has been fil ed upon th e term s specifi ed in this Section. No lic ense iss ued pur sua nt to this Section shall be ass ignable or transferable. 5-12-3-6: RENEWAL PROCEDURE: The Li cense Offic er shall renew a li cense for one pe riod of time only, su ch period to be in addition to the sixty (60) days pe rm itted in th e ori ginal license, and not to excee d thirty (3 0) consec ut ive days,-S unday,-..nd-holidoy, excluded,wh en h e finds that the lic en see has fil ed an appli cation for renewal, that fnct s exi st justifying the license renewal, and that the li ce nsee h as s ub mitted with the applicatio n for renewal, a revised inve nto ry in the ,nn nn er and form prescribed , showing the ite ms li ste d on the origin al or sup plement.al inventory remain in g unso ld . Tl-I E APPL ICAT ION HALL BE FOR A SPEC IFI C LOC ATI ON AND THERE S HAL L llE KO NEW LI CENSE OR RENEWAL ISSU ED FOR THE LOCATI ON FOR TH E LI CENSEE WITHI N A ONE YE AR T IM E PERIOD FROM THE DATE OF Tl-IE INITIAL LICEN SE -3- 5-12--3-7: DUTIES OF LICENSEE: lt ,:,uil be unlawful for any li censee hereund er to : A Make any additions whatsoever, during the period of the lic ensed sale, to th e stock of goods set forth in the inventory attached lo the application for li cense unless and until the applicant has filed a supplemental inventory with the License Officer, and the License Officer has found that said addition s arc required or des irable to aid in the conduct of the sale of the good s in the original in ven tory fil ed with th e application for a license , Said supplem en tal inventory shall be in such form and detail as mn y be required by the Lie nse Officer. If s aid suppl emental inventory is found lo be in suJnci ent, written notice thereof shall be given to the applicant and he shall be granted permission to amend th e same. If the application to add goods shall be denied, the applicant shall be given d hearing within five (5) days upon written request t,herefor . B. Employ any untrue, deceptive or misleading advertising. C. Fail or refuse to keep available at the place of sale a duplicate copy of the inventory submitted with the application, together with any supplemental inventories fil ed with snd approv ed by the License Offic er and lo foil or refuse to present s uch dupli rales to inspecting officials upon r equ esL Each licensee shall further keep available for inspectinf officials his stock records or other records of his businesi; relating to sai d sale or hi • application for a license. D . Fail or refuse to conduct the licensed sale in strict conformity with any representations in advertising or any holding out incident thereto . E . Fail or r efuse to keep any goods separate and apart from the goods li sted in the fil ed inventories as being object of sale, and make such distinction clear to the public by placing lags on all inventoried goods in and about the pl ace of sale, apprising the public of the status of all such goods. 5-12--3-8: REMOVAL OF GOODS: An y removal of good s inventori ed or described in an original or supplemen' ! inventory from th e pl ace of sale mentioned in the application sh all cause s uch goods to lose their id entity os the stock of any of the sales h erein defi ned , and no li ce ns e thereafter will be issued for the co nducting of a sal e of any such goods i n such raanner as to identify th em with th e. stor e, sto re nam e, store owne r or loc ati on referred to in the original application . Introduc ed , read in fu ll, and passed on f.rsl reading on the 16th d y of ~l arch, 1992. Publish ed as a Bill for an Ord ina nc e on the 19th da v of March , 1992. Read by UUe and passed on final reading on the 6th day of Aprtl, 1992 . . 4 . Published by Ulle as Orcllnance No./:J. Serles of 1992 . on !he 9th day of April. 1992 . d)'O r ATTEST: Ut;~#~ Patricia H. Crow. City Clerk I, Pa trici a H. Crow , City Clerk of the City of Engl ewood , Co lora do, hereby certify that th e above and for egoi ng is a true copy of the Ordinance passed on fin al reading an d pu blished by title as Ordi nan ce No . "-2.., S eries of 1992. GJ21vffe#~ Patricia H. Crow .5 . Date Ma r ch 16 . 1992 COUNCIL COMMUNICATION Agenda Item 11 b Subject "Go ing Out of Bu siness Sale" Li ce nse INITIATED BY Department of Financial Sen1ces STAFF SOURCE Lorraine Hayes, Dir ecto r of Financial Seniccs ISSUE /ACTION PROPOSED Staff recommends tha t City Council approve the attached ordJnance arnend!ng A Section 5-12 -3 of the Englewood MunJclpal Code, which deals \\1th "Going Out of W Bu sin ess Sale" li censes. PREVIOUS COUNCIL ACTION OrdJnance No. 29. 1967: Ordina nce No . 74. 1981: February 24, 1992 : STAFF ANALYSIS Established license for Gotng Out of Bustness Sales . Amended pro,islons of Code requJrtng sales tax d epo sits for Gotng Out of Business Sales. Cou,cil Stµdy Session on Going Out of Bu s ln tss Sales licenses. Th e atta~h ed ordinance amends the City Code to a ccompli sh the follow1ng : I . If the li censee h as co mpiled \\iU1 the pro\islons of U1e Code . U1e S50 li ce nse fee "ill be r efunded to the licensee after U1e final sales taxes d u e to the City are paid . 2. The sales tax deposit "ill b e calc ulated at the c urrent s al es tax r ate of 3-1 /2%. 3. Li ce n ses s hall b e lo cation specific and llmlted to one per ye,JI p er li ce nsee. BACKGROUND In response to citize n concern, Council reviewed the City's Goin g Out of Bu s in ess Sale li ce nsing r equirements . Council generally bellevc d tha t the li ce n se served tJ1 e original purposes of ( 1) preventing unfair business co mpe tition by fal sely a dv ertising ,md conducting co ntinuous or unwarranted go in g out of business sales, a nd (2) ensuring tila t sales taxes collected by bus inesses In fin a l sales a re r emitt ed to the Clly. Council agreed w1U1 citizen Input th a t U1e $5 0 ll ce n sc fee wa s o bj ec tionable for the business owner who was going out of busi n ess. FINANCIAL No materi al changes In revenues or costs will result fr om U1l s ch ange .