The URL can be used to link to this page

Home My WebLink About1996 Ordinance No. 059\ • • • ORDINANCE NO. §J_ SERIF.8 OF 1996 BY AUTHORITY COUNCIL BILL NO . 69 INTRODUCED BY COUNCIL MEMBER HATHAWAY AN ORDINANCE REPEALING TITLE 5, CHAPTER 12, SECTION S, OF THE ENGLEWOOD MUNICIPAL CODE 1985 PERTAINiNG TO GOING OUT OF BUSINESS AND DAMAGED GOODS SALES AND RE-ENACTING A NEW CHAPTER 17. WHEREAS, Going Out of Buain,... _. lioenaes are needed to protect cons umers from being mislead by busineeaes advert:iaing a eoing out of business sale, when in fact there is not intent to actually clooe the busin ... ; and WHEREAS, consumer,, can be mialead into believing they are being offered the lowest ?<J8Sible price on merchandise from a "closing business," but the busineu has no intent of oeuing operation•; WHERF.AS , a pn,of of salee tu depooit ia required to ensure the City collects revenues that support City lel'Viceo; and WHEREAS, no transfera. of this license ia allowed as it is location/busin ess s pecific; and WHEREAS, no addition• to inventory ia allowed , nor is any m isleading adve rtising allowed in order to protect cnmmera; NOW , THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS: SediDn..l. Tbe City Council of the City of Englewood, Colorado hereby am ends Title 5, Chapter 12, Section 3 , of the Englewood l',l,.micipal Code 1985, by repealin g an re- enacting a new Chapter 17 , to read as foU ,,ws: CIIAPTER17 GOING Otn' OF BCJSINE!.IS AND DAMAGED GOODS SALES SECTION: 5 )7-1: 5-17-2 5-17-3 : 5-17-4 : DEF!NlTIONS LICENSI!: REQUIRED f.?P LICATION FOR LICENSE SPECIAL CONDITIONS AND RESTRICTIONS OF THE LICENSE 5-17-1 : DEFINITIONS: FOR THE PURPOSE OF THIS CHAPl'ER, THE F OLLOWING TERMS, PHRASES, WORDS AND THEIR DERIVATION S SHALL HAVE THE MEANINGS GIVEN HEREIN . DAMAGED GOODS GOING OUT OF BUSINES.SSALE GOODS A SALE HELD OUT IN SUCH A MANNER AS TO REASONABLY CAUSE THE PUBIJC TO BEIJE\IE THAT THE SALE WILL OFFER GOODS DAMAGED BY FIRE, SMOKE, WATER, OR OTHER REASON . 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 WILL CEASE AND WILL BE DISCONTINUED, INCLUDING BUT NOT IJMITED TO THE FOLLOWING SALES: ADJUSTER'S, ADJUSTMENT, ALTERATION, ASSIGNEE'S, BANKRUPI', BENEFIT OF ADMINISTRATOR'S, BENEFIT OF CREDITOR'S, BENEFIT OF TRUSTEE'S, BUILDING COMING DOWN, CLOSING, CREDITORS' COMMITTEE, CREDITORS' END, EXECUTOR'S, FINAL DAYS, FORCED OUT, FORCED OUT OF BUSINESS, INSOLVENTS, LAST DAYS , LEASE EXPIRES , IJQUIDATION, LOSS OF LEASE, MORTGAGE SALES, RECEIVER'S, TRUSTEE'S, QUITTING BUSINE',;,. JS MEANT TO INCLUDE ANY GOODS , WARES, MERCHANDISE OR OTHER PROPERTY CAPABLE OF BEING THE OBJECT OF A SALE REGULATED BY THIS Cl:APTER. 5-17-2: LICENSE REQUIRED: 1T SHALL BE UNLAWFUL TO CONDUCT A GOING OUT OF BUSINESS AND/OR DAMAGED GOODS SALES PRIOR TO OBTAINING A LICENSE FROM THE IJCENSING OFFICER EXCEPT FOR THE FOLLOWING : A . PERSONS ACTING PURSUANT TO AN ORDER OR PROCESS OF .. , COURT OF COMPETENT JURISDICTION, PERSONS ACTING IN ACCORDANCE WITH THEIR POWERS AND DC' 11ES AS PUBLIC OFFICIALS , AND ANY PUBIJSHER OF A NEWSPAPER, MAGAZINE OR OTHER PUBLICATION, WHO PUBLISHES IN GOOD FAITH, ANY ADVERTISEMENT, WITHOUT KNOWLEDGE OF ITS FALSE , DECEPJ'IVE OR MISLEADING CHARACTER OR WITHOUT KNOWLEDGE THAT THE PROVISIONS OF TJilS CHAPJ'ER HAVE NOT BEEN COMPLIED WITH . 5-17-3: APPLICATION FOR LICENSE: A. THE APPLICATION FOR A GOING OUT OF BUSINESS AND/O R DAMAGED GOODS SALE LICENSE SHALL BE MADE IN AC CORDANCE WITH THE PROVISIONS OF TlTLE 5, C HAPl'ER !. -2- • • • • B. lN ADDfflON THB APPLICANT SHALL BE REQUIRED TO PROVIDE TH! FOLLOWING : 1. PROOF OF SALES TAX DEPOSIT . 2. COPY OF COMPLETE INVENTORY . 5-17-4: SPECIAL CONDfflONS AND IIBS'l1UCl'fON8 OF THE UCENSE: IN ADDITION TO UCENSING CONDfflONS SET FORTH IN CHAPTER 1 OF T!IlS TITLE , THE FOLLOWING SPECIAL PROVISIONS SHALL APPLY: A. SAJ.ES TAX DEPOSIT BIQUJRED . IN ADDfflON TO ALL APPUCABLE IJCENSE FBES, THE APPUCANT SHALL DEPOSIT WITH THE UCENSE OFFICER AN AMOUNT EQUAL TO THREE AND ONE -HALF PERCENT (S .5t,) OP THE RETAIL VALUE OF THE GOODS TO BE SOLD DURING Tm: FIRST WEEK OF THE SALE. THE IJCENSE OFFICER SHALL ESTABUSH THE DEPOSIT BASED UPON PRIOR SALES TAX REPORTS FILED WITH THE IJCENSE omCER BY THE IJCENSE HOLDER . AFTER THE SALE, THE APPUCANT SHALL DEPOSIT WITH THE UCENSE omcER AN AMOUNT EQUAL TO THREE AND ONE-HALF PERCENT (3.St,) OP THE RETAIL VALUE OF THE GOODS SOLD IN THE PRIOR WEEK OF THE SALE . THE DEPOSIT MAY BE IN THE FORM OF CASH OR A BOND ACCEPTABLE TO THE UCENSE OFFICER. THE RECORDS AND TRANSACTIONS OF THE APPIJCANT SHALL BE SUBJECT TO WEEKLY REVIEW BY THE LICENSE OFFICER DURING THE PERIOD OF THE SALE. UCENSE HOLDERS FAIUNO TO COMPLY WITH THE SALES TAX FILING AND PAYMENT PROVISIONS OF TITLE 4, CHAPTER 4, OF TmS CODE SHALL FORFEIT THEIR DEPOSIT AND THE LICENSE OFFICER SHALL PURSUE THE PROPER COLLECTION OF ALL AMOUNTS PROPERLY DUE TO THE CITY. B . c. AFTER THE PAYMENT OF ALL TAXES DUE , AND A VERIFICATION IS PROVIDED BY AN APPROPRIATE CITY AUDIT, THE C,TY SHALL RETURN TO THE UCENSE HOLDER ANY FUNDS DEPOSITED BY THE LICENSE HOLDER . TERM OF LIG.E.l:!SE. THE UCENSE SHALL !.UTHORIZE THE SALE DESCRIBED IN THE APPLICATION FOR A PERIOD OF NOT MORE THAN SIXTY (60) DAYS . A ONE TIME LICENSE RENEWAL MAY BE ALLOWED . THE RE NEWAL SHALL NOT EXCEED 'THIRTY (SO i CONSECUTIVE DAYS . AFl'F ,R THE LICENSF EXPIRES, ALL BUSINESS ACTMTIES l'!iALL CEASE , AND NO'.r RESUME UNDER THE SAME DIREC7 OR INDIRECT OWNERSHIP FOR A PERIOD OF TWO (2) YEAil.5 . rnNSE...NOT ASSIGNABLE OR TRANSFERI...BJ..E . NO LICENSE ISSUED PURSUANT TO rms CHAPTER SHALL BE ASSIGNABLE OR TRA.-:SPERABLE . D. DJl'J'IIS Al UCIJffll pm DIBS IN ADDfflON TO REQUIREMENTS OF OHAl,'TBR 1 OF THIS TITLE, THE FOLLOWING DUTIES ARE REQUIRED OF UCENSE HOLDERS UNDER THIS CHA."TER: 1. NO ADDITIONS TO INVENTORY "MAY BE MADE DURINC 1 THE PERIOD OF THE LICENSED SALE TO THE STOCK OF GOODS SET FORTH IN THE INVENTORY ATTACHED TO THE APPUCATION FOR LICENSE. 2. LICENSE HOLDERS SHALL KEEP AVAILABLE AT THE PLACE OF SALE A DUPLICATE COPY OF THl~ INVENTORY SUBMITTED WITH THE APPLICATION AND SHALL PRESENT SUCH DUPLICATES TC INSPECTING omcIALS UPON REQUEST . EACll LICENSE HOLDER SHALL FURTHER KEEP AVAILABLE FOR INSPECI'lNG omcIALS HIS STOCK RECORDS OR OTHER RECORDS OF HIS BUSINESS RELATING TO SAID SALE OR ms APPLICATION FOR A LICENSE. S. LICENSE HOLDERS SHALL NOT EMPLOY ANY UNTRUE , DECEPTIVE OR MISLEADING ADVERTISING . 4. LICENSE HOLDERS SHALL CONDUCT THE LICENSED SALE IN STRICT CONFORMITY WITH ANY REPRESENTATIONS IN ADVERTISING OR ANY HOLDING OUT INCIDENT THERETO . 5. IJCENSE HOLDERS SHALL KEEP ANY GOODS SEPARATE AND APART FROM THE GOODS IJSTED IN THE FILED INVENTORIES ~ S BEING OBJECT OF SALE , AND MAKE SUCH DISTINCTION CLEAR TO THE PUBLI C BY PLACING TAGS ON ALL INVENTORIED GOODS IN AND ABOUT THE PLACE OF SALE , APPRISING THE PUBLIC OF THE STATUS OF ALL SUCH GOODS . E. REMOVAL OF GOODS . IF ANY GOODS DESCRillED IN THE INVENTORY ARE REMOVED FROM THE PLACE OF SALE AUTH ORIZED BY THE LICENSE , THOSE GOODS SHALL LOSE THEIR IDENTITY AS THE STOCK OF ANY OF THE 'SALES" DEFINED BY THE IJCENSE. NO LICENSE WILL BE ISSUED UNDER THIS CHAPTER FOR CONDUCTING A SALE OF THOSE GOODS REMOVED FROM THE SALE THAT IDENTIFIES THEM WITP. THE ORIGINAL LICENSE. ~ S.fety Claus.. The City Council, hereby finds, determines , and declares that thia Ordinance i• 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 i1 necessary for the preservation of health and safety and for the protection of public convenience and welfare . The City Council furth er det ermines that the Ordinance bean, a rational relation ID the proper legi slative obj ect sought to be obtained . -4 - • • • • llll:lillL1. Btxet1blJlty II any claUN, _.....,, parap-aph, ..-pat ol tllil OrdlnaDce or the application thonal to any i--er circwn1tancu ■ball tbr any reuon be acijudgecl by a cowt ol compelct jurildlction Invalid, ouch judrment llhall not affect impair or invalidate tho remainder of thia Ordinance or Ito application to other per■ono or cim11111tancoe . ~ lnconehrtent Ordinaoc:e ■ All other Ordinancea or port;ona thereof inconsistent or conflictin1 with tllil Ordinance or any portion heffOf. are hereby repealed to the extent of ouch incODJti■tency or conflict. ~ Effe:t of repeal or modification Tbe repeal or modification of any pro\'iaion of the Code of the City of Englewood by thia Ordinance ■hall not releaae , extinguiah, alter, modify , or change in whole or in part any penalty, forfeiture, or liability, either civil or criminal , which llhall have been incurred under auch proviaion, and each provision ■hall be treated and held as still remaining in force for the purpoees of austo'ning any and all proper actiona, auit■, proceeclinp, and prosecutions for the enforcement of the penalty, forfeiture, or liability, u well u for the purpooe of suataining any judgment, decree, or order which can or may be rendered, entered, or mad e in ■>1cb acti0111, lllill, proceedings , er prosecutions. Sts1imJ 6 . I:l:11.&lJ.x . The Penalty Proviaio.• of E .M.C. Section l__.•l llhall apply to each and every vi ol11tion of this Ordinance . Introduced, reai 'n fut\, and paaaed on lint reeding on the 4th day of November, 1996. Published aa ~ Bill for an Ordinance on the 7th day of November, 1996 . Read by title and passed on final reading on the 18th day of November, 1996. Pu1,liahed by title as Ordinance No . ,Q., Series of 1996 , on the 21st day of November, 1996. I , Loucrishia A. Ellis , City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true copy of the Ordinance pass..'CI on final ....,_, ""''""'""' ~ s,, u 0...,u• N,q. :::ir · . . '1/4 ~ -5 - • • Date Novem ber 4, 1990 COUNCIL COMMUNICATION Agenda 11am 10 a ii Subject BIii for an ord inance cniatlng a new Chapter 17 (Going Oul of Business) In Tltle 5 of the C Code Initiated By Staff Source De rt me nt of Flna,,c1 .. a ... 1_s __ e __ rv1ces ____ ...... _______ """'F ... ra __ n __ k_G ..... -1ew1 ...... cz=-... D ... lre __ ct __ o_r _________ _. COUNCIL GOAL ANt PREVIOUS COUNCIL ACTION Th is bill for en ord lnanc , creates a new Ch apter 17 to Tttle 5 of the City Code . The proposed creation of th is Chapte r Is the result of tn e morat oriu m being In effect . At the Me y 6 , 1996 study session , staff discu:.seo the proposed morat ori um wi th th e Co un cil. On June 3, 1996. the City CounrJI read and passed Ord inanr,i 25 , S.1ries ol 1996 on fin al re adi ng. Th is Ord in ance establish ed the moratorium to rJn fr om June 10. 11196 to Cecem bf,r 1~. 1996 . RECOMMENDED ACTION Staff recomm ends City Council approve th is bi ll for an ord inance . BACKGROUND , ANALYSIS , AND AL TERNATIVF.S IDENTIFIED Prior to thi s proposed chang e, Goi ng Out of Buslness licenses we .• Included under Title 5, Chapter 12 . Thi s license wa s speci fi cally excl uded from the moratori c th at began on June 10, 1996 . Go ing Out of Bu si ness licens,is are needed to protect COOSlJmers from belr19 mislead by buslnesses advert is ing a going out of business sale, wh en in fact there Is no intent to actually clo se the busln ess . CollSllmers can be misl ead into relieving they are be ing offered the lowest posslble price on :nerchand lse from a "cl oslng busine ss : but the bu si ness ha s no Intent of ce aslng operations . The Chapter provides for the tenn of tlce nse, non- transferability of the license , dut ies .,1 the license holder, and removal of goods . These provisions ha ve not cha nged . New pro vi sio ns includP now li cens e lees are set by resolution , and clarification reg ardi ng cea sing busl ness alter the licen se expi res . No alt ern ative s we re lde r,i: '.ed. FINANCIAL IMPACT Th e City of Englewood co ll ected $100.00 in le es for this licen se in 1995. LIST OF ATTACHMENTS Copy of pro posed bill tor an ord ina nce