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Home My WebLink About01/28/1992 VICE MAYOR REFERRAL (PROPOSED ORDINANCES ONLY) DATE OF REFERRAL: January 28, 1992 REFERRED TO: Budget and Finance Committee - John W. Stinson ITEM: AMENDMENT TO CHAPTER 5.20 OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO CLOSE-OUT SALES BACKUP MATERIAL ATTACHED: Yes STATUS: TO COUNCIL COMMITTEE ON COMMITTEE REPORT NO. SENT TO COUNCIL ON PUBLIC HEARING ON ORDINANCE ADOPTED (DATE) PROPOSED ORDINANCE CANCELED (DATE) OTHER Please return to Jean in the City Manager's Office when completed for referral tracking. cc: Mayor and City Councilmembers City Manager City Attorney City Clerk REFER92.2 MEMORANDUM January 23, 1992 TO: KEVIN McDERMOTT, VICE-MAYOR FROM: LAWRENCE M. LUNARDINI, CITY ATTORNEY ~ SUBJECT: AMENDMENT TO CHAPTER 5.20 OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO CLOSE-OUT SALES Please refer the attached proposed ordinance amendment to whichever committee you deem appropriate. Background: Requirements for business regulatory permits under Municipal Code Title 5 are being updated and the ordinance format is being standardized. This amendment no longer imposes a tax on the businesses' inventory. A cost recovery fee must be paid instead. LML:pm Attachment cc: Bill Descary, Treasurer LML\AMEND1.MEM 1/22/92 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 5.20 OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO CLOSEOUT SALES. BE IT ORDAINED by the Council of the City of Bakersfield as follows: SECTION 1. Chapter 5.20 of the Bakersfield Municipal Code is hereby, amended to read as follows: Chspter 5.20 CLOSEOUT SALES Sections: 5.20.010 Definitions. 5.20.020 Permit required. 5.20.030 Application - Issuance - Fee. 5.20.040 Regulations. 5.20.050 Revocation. 5.20.060 Appeal. 5.20. 010 Definitions. Whenever used in this chapter, unless a different meaning clearly appears from the context, the words set forth in this section shall have the' following meanings: A. "CloseoUt sale" means the sale of a total inventory of goods or the sale of the stock of goods of a business advertising or holding itself out to be terminating the entire inventory of that stock of goods or terminating commercial operations at a fixed'place of business. The term is synonymous "- "damaged goods," insolvency, with an "insurance," "bankruptCy, ,, I, " "administrator' s, "assignee' s," "executor' s, " "receiver' s, " "forced 'removal'," "closeout, "trustee's," "creditor's, " "lost lease," "we quit," "liquidation" and other sales similarly designated. B. "Person" means any individual, partnership, corporation .or association of any nature whatsoever. 5.20.020 Permit re~zired. A. It is unlawful for any person, except licensed automobile dealerships and businesses having the term "liquidation," "liquidators," or any similar term, in the name of the business, to conduct a closeout sale in violation of this chapter or without having first procured and maintained a valid permit from the city manager or his designee. B. It is unlawful for any person to advertise any sale as "insurance," "bankruptcy," "damaged goods," insolvency," "assignee ' s," "executor ' s," "administrator ' s," "receiver ' s," "trustee's," "creditor's," "forced removal,!' "closeout," "lost' lease,,' "we quit," "liquidation" and other sales similarly designated, .without having first procured a permit from the city manager or his designee. 5.20.030 Application - Issuance - Fee. A. Applications for permits under this section shall be made on forms to be furnished by the city manager or his designee, shall be submitted no less than fourteen days prior .to commencement of the sale, shall be signe~ under penalty of perjury by the applicant and shall require the following information: 1.. The name, mailing address, title, telephone number, previously used names, date of birth, sex, height, weight, eye color, hair color, driver's license number, social security number, and arrest record, if any, of the applicant.and of all persons who will manage the business; ~ 2. The name, mailing address and location of the business; and 3. The business tax certificate number of the business. 4. The inventory or merchandise to be soid pursuant to this permit. 5. Whether a Permit pursuant to this chapter has ever been issued for this business in the past three years, and if so, the dates'of issuance, the inventory for which it was issued, the type of sale for which it was issued, and the location of the business for which it was issued. 6. Prior permits held in the past three years and whether such permits were ever'revoked or suspended, and the reasons therefor. - 2 - B. The city manager or his designee shall, in his discretion, issue a permit if he finds: 1. That the application is complete and truthful; 2. That a valid business tax'certificate has been iSsued for this business. ~ 3. That the.applicant has not been convicted in the past three years of a crime substantially related to the qualifications, functions or duties of the business for which application is made, unless he has obtained a certificate of rehabilitation. 4. That the applicant has not done any act in the past three years involving dishonesty, fraud or deceit with the intent to substantially benefit himself or another, or substantially injure another. 5. Neither the applicant nor any of its agents has previously violated this chapter. 6'. The advertising or conduct of such Sale will not constitute a fraud on the public. 7. The applicant has not at any time previously: a. held a closeout sale at the same location while holding itself out to be terminating commercia~ operations; or b. held a closeout sale for the same inventory or stock of goods. 8. That the applicant has not had a permit, issued under this chapter in the past three years, revoked, unless the city manager finds th'at the reasons for such revocation are unrelated to this application. C. All permits issued under this chapter shall remain in effect for no more than ninety days from the date of issuance. D. The applicant shall pay a fee not to exceed the cost of processing any such application and inspecting such sales as set forth in Section 3.70.040. E. Permits may be issued with conditions to en&ure that the sale will be operated in a safe and legal manner and will not constitute an undue burden on city resources. - 3 - 5.20.040 Re~lations. A. No permittee shall, during the permitted sale, add .any goods, wares or merchandise to the inventory of goods to be terminated, as described in the permit or application for such permit. · B. No closeout sale shall take place at any time unless there is displayed in a location clearly visible to the public a valid permit, issued pursuant to the provisions of this chapter, to so operate. C. Any permit issued pursuant to this chapter shall be non-transferrable, and shall be valid only as to the applicant and location and dates provided on the application for such permit. 5.20.050 Revocation. Any permit issued pursuant to this chapter shall be immediately revoked by the city manager whenever he finds: A. That misrepresentations were made on the application; or B. That the applicant has in the past three y~ars been convicted of a crime substantially related to the qualifications, functions or duties of.the business for which application is made, unless he has obtained a certificate of rehabilitation; or C. That the applicant has in the past three years done any act involving dishonesty, fraud or deceit with the intent to substantially benefit himself or another, or substantially injure another; or D. That any of the terms or conditions of said permit have been violated, or that the business has been operated in violation of local, state dr federal law. 5.20.060 Appeal. A. Should any applicant be dissatisfied with the decision of the city manager or his designee not to grant a permit or for the revocation of a permit, then said applicant may, No later than ten days after notice of such'decision is deposited in the United States mail, addressed to the applicant or permittee at the address provided on the application, make written Objection to the city council setting forth the grounds for dissatisfaction, whereupon the council shall hear said - 4 - objections at a regular meeting no later than three weeks following the filing of the objection with the city clerk. The applicant shall be given written notice no less than three days .prior to said hearing. The council may, upon said hearing, sustain, suspend or overrule the decision of the city manager, which decision shall be final and conclusive. B. Pending the hearing before the council, the decision of the city manager shall remain in full force and effect and any reversal thereof by the city council shall not be retroaCtive but shall take effect as of the date of the council's decision. SECTION 2. This Ordinance shall be posted in accordance with the Bakersfield Municipal Code and shall become effective ~hirty (30) days from and after /the date of its passage. -o0o - 5 - I }tEREBY CERTIFY that~the foregoing Ordinance was passed and adopted by the Council of the City of Bakersfield at a~ regular meeting thereof held on , by the following vote: CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED C~CE w.. MEDDERS MAYOR of the City of Bakersfield APPROVED as to form: LAWRENCE M. LUNARDINI CITY ATTORNEY of the City of Bakersfield LCM/meg BUS-ORD\ CLOSEOUT.ORD 1/22/92 - 6 -