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HomeMy WebLinkAbout86-14 - Amending 55.16 of the Newport Beach Municipal Code Pertaining to Going Out of Business SalesORDINANCE NO. 86 -14 AN ORDINANCE OF THE CITY OF NEWPORT BEACH AMENDING 55.16 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO GOING OUT OF BUSINESS SALES The City Council of the City of Newport Beach does hereby ordain as follows: Section 1. Chapter 5.16 of the Newport Beach Municipal Code is amended to read as follows: Chapter 5.16 GOING OUT OF BUSINESS SALE ORDINANCE Sections: 5.16.005 Purpose and Intent. 5.16.010 Definitions. 5.16.015 Exceptions. 5.16.020 Waiver. 5.16.025 • Permit Required. 5.16.030 Application for Permit. 5.16.035 Investigation /Permit Approval. 5.16.040 Permit /Terms and Conditions. 5.16.050 Permit /Transfer. 5.16.060 Surrender of Business License. 5.16.070 Revocation of Permit. 5.16.080 Appeal. Section 5.16.005 Purpose and Intent. The City Council finds and declares that the provisions of this Ordinance are necessary to further significant legitimate City interests in that: (A) Sales tax constitutes a significant portion of revenue to the City of Newport Beach and purchaser confidence in the integrity of persons conducting business within the City • of Newport Beach is important to maintaining a high -level of sales tax. The failure of merchants to fairly conduct the reasons for "going out of business sales" or liquidations could erode consumer confidence; -1- • (B) Prolonged liquidation or "going out of business" sales could tend to create, or leave the impression of, blighted or economically depressed conditions in and around the location of the sale; and (C) Liquidation or forced sales are frequently characterized by large banners or signs which can result in visual blight, and the presence of a large number of persons which can result in traffic congestion, noise, and litter. Section 5.16.010. Definitions. For purposes of this Chapter, the following words, terms or phrases shall be defined as provided in this section: (A) "Sale" means any sale of or offer to sell, goods or merchandise to the general public for the declared purpose of ceasing business at that location, or for the purpose of disposing of damaged goods or merchandise. (B) "City Manager" means the City Manager, the Finance Director, the Business License Supervisor and their • respective designees. -2- (D) The City Council finds and declares that the provisions of this Ordinance are necessary and appropriate to reduce the adverse impacts that can result from liquidation or going out of business sales consistent with minimal impact on the • rights of business owners and operators. Section 5.16.010. Definitions. For purposes of this Chapter, the following words, terms or phrases shall be defined as provided in this section: (A) "Sale" means any sale of or offer to sell, goods or merchandise to the general public for the declared purpose of ceasing business at that location, or for the purpose of disposing of damaged goods or merchandise. (B) "City Manager" means the City Manager, the Finance Director, the Business License Supervisor and their • respective designees. -2- • r� J • Section 5.16.015. Exceptions. The provisions of this Chapter shall not apply to, or affect, the following: (A) Sales conducted by persons acting in their official capacities as public officials; (B) Sales conducted by persons acting pursuant to process or order issued by a court of competent jurisdiction; auction. (C) Duly licensed auctioneers selling at an Section 5.16.020. Waiver. The City Manager may, upon receipt of a written application requesting a waiver and specifying the reasons for the request, waive the requirements of this Chapter if it is determined that all of the goods or merchandise proposed to be sold in the sale were damaged within the City of Newport Beach by fire, flood, earthquake or similar disaster while in the possession of the person or entity proposing to hold the sale. Section 5.16.025. Permit Required. No person shall conduct any sale without first having obtained a permit from the City to conduct the sale. Section 5.16.030. Application for Permit. (A) An application for the permit required by this Chapter shall be filed with the Finance Director at least -3- twenty (20) days prior to the date on which the sale is to • commence; (B) The application shall be accompanied by a fee of $25.00. (C) The application shall be in writing and signed, under penalty of perjury, by the person conducting the sale or by an authorized representative of the business entity conducting the sale. (D) The application shall contain the following information: ( 1 ) The address of the location at which • the sale is to be conducted; (2) The dates and times during which the sale is to be conducted; (3) The type of ownership of the business and, if other than a sole proprietorship, the position held with the business entity by the person signing the application; (4) The reasons for, and the nature of, the sale; (5) An inventory or statement setting forth the quantity and description of all goods and merchandise • to be sold at the sale with sufficient information to permit identification of the goods and merchandise upon inspection; -4- (6) A statement describing the quantity • and description of all goods and merchandise ordered prior to the date of application but not received by the applicant; (7) In the event the application seeks an extension of the original permit, an inventory of the goods that remain in stock; and (8) Such other information as the City Manager may deem necessary in determining whether to issue the permit or any extension. (E) At the time the application is filed, applicant shall grant permission to the City Manager to enter, during normal business hours, the property or premises on which • the sale is to be conducted for the purpose of verifying the accuracy of the inventory statement required by this section. Section 5.16.035. Investigation /Permit Approval. The City Manager may conduct an investigation prior to issuance of the permit. The City Manager shall grant the permit upon a determination that the statements in the application are true and the proposed sale does not violate any City ordinance or state law. The decision to grant or deny the permit shall be made at least ten (10) days prior to the scheduled commencment of the sale. The City Manager may impose conditions on the permit as are necessary or appropriate to protect the interests of the City and persons residing or working near the location of the • sale. Section 5.16.040. Permit /Term and Conditions. (A) A permit issued pursuant to the first -5- application shall extend for a period of sixty (60) days, and • shall be subject to the conditions specified in subsection (C) and conditions imposed by the City Manager. (B) Permits granted pursuant to application submitted after expiration of the original permit shall extend for a period of forty -five (45) days and shall be subject to the conditions specified in subsection (C) and conditions imposed by City Manager. (C) All permits issued pursuant to this Chapter shall be subject to the following conditions: (1) The permittee shall comply with all applicable city ordinances and state laws; • (2) Permittee shall sell only those goods specified in the original inventory or the statement describing goods ordered, but not received. (3) Permittee shall not engage in a false, fraudulent or deceptive business practice in the conduct of the sale; and (4) Additional conditions may be imposed on the permit subsequent to issuance if, in the opinion of the City Manager, those conditions are necessary or appropriate to protect the interests of the City or persons residing or working near the location of the sale. • Section 5.16.050. Permit /Transfer. A permit issued pursuant to the provisions of this Chapter shall not be transferable. -6- Section 5.16.060. Surrender of Business License. • A person issued a permit pursuant to this Chapter shall, at the time the permit is first issued, surrender the business license issued to him for the business being discontinued. Section 5.16.070. Revocation of Permit. A permit granted pursuant to this Chapter may be revoked by the City Manager upon a determination that the permittee has failed to comply with the provisions of this Chapter, or conditions imposed on the permit. In the event the City Manager determines there are grounds for revocation, the City Manager shall give written notice of intent to revoke the permit and the • right of permittee to request a hearing before the City Manager within five (5) days from the date on which notice is given. The notice shall be accompanied by copies of any documents in the possession of the City Manager that pertain to the grounds for revocation. Notice shall be deemed given when deposited at the United States mail, first class postage prepaid, and addressed to permittee at the address shown on the application for permit. If the permittee does not request a hearing within five (5) days, the decision of the City Manager shall be final and permittee shall have no right to appeal. In the event the permittee requests a hearing, a hearing will be held within five (5) days of the request. The permittee may appear in person, or submit a statement signed under penalty of perjury specifying the reasons why the permit should not be revoked. The City Manager shall notify permittee, in writing, of the decision within five (5) days after the hearing. This notice shall state the reason for the decision and advise permittee of the right to appeal to the City Council. -7- • Section 5.16.080. Appeal. A permittee may appeal a decision by the City Manager to impose condition on a permit, denying a permit, or revoking a permit by filing a written appeal with the City Clerk within five (5) days after the date on the notice of the decision of the City Manager. The City Council may hear the appeal, or appoint a hearing officer to take evidence, and submit findings and recommendations. The City Council shall render its decision within five (5) days after the hearing or submit the findings and recommendations by a hearing officer. The decision of the City Council shall be final. Section 2. This Ordinance was introduced at a regular • meeting of the City Council of the City of Newport Beach held on the 12th day of May, 1986 , and adopted on the 27th day of May , 1986, by the following vote, to -wit: AYES, COUNCILMEMBERS Agee, Cox, Hart, Maurer, Plummer NOES, COUNCILMEMBERS ENT P CIL RS Heather, Strauss Mayor ATTEST: City -Clerk me