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HomeMy WebLinkAboutOrd 0520ORDINANCE N0. 520 AN ORDINANCE AMENDING THE ORDINANCE CODE OF THE CITY OF BURLINGAME BY ADDING THERE- TO A NEK ARTICLE TO BE KNOI,.N AS "ARTICLE 11-A, REGULATING THE BUSINESS OF DEALING IN USED MOTOR VEHICLES; DEFINING A USED AUTOMOBILE DEALERr ESTABLISHING THE PRO- CEDURE FOR OBTAINING A PERMIT TO DEAL IN USED MOTOR VEHICLES; REQUIRING A BOND THEREFOR; PROVIDING PENALTY FOR VIOLATION THEREOF AND REPEALING ALL ORDINANCES IN CONFLICT THEREWITH." The City Council of the City of Burlingame does ordain asfollows¢ Section 1 - The Ordinance Code of the City of Burlingame is here- by amended by adding thereto a new article to be known as Article 11-A, providing for the control and regulation of the sale of used motor ve- hicles which shall read as follows; ARTICLE 11-A REGULATING THE BUSINESS OF DEALIWGIN USED MOTOR VEHICLES: DEFINING A USED AUTOMOBILE DEALER; ESTABLISHING THE PROCEDURE FOR OBTAINING A PERDIIT TO DEAL IN USED MOTOR VEHICLES; REQUIRING A BOND THEREFOR; PRO- VIDING PENALTY FOR VIOLATION THEREOF AND REPEALING ALL ORDINANCES IN CONFLICT TBrRE- WITH. SECTION 1138* DEFINITIONS. (a) For the purpose of this Code, a "used automobile dealer" is defined to be a person engaged m, conduct - a ing, managing, operat 407 or carrying on the business of selling or otherwise dealing in used motor vehicles, as the term "motor vehicle" is defined in the Vehicle Code of the State of California and who buys or accepts on consignment, or otherwise becomes possessed of, motor ve- hicles, for the purpose of re -selling, or who sells at a price greater than that originally paid therefor, two or more used motor vehicles in any one calendar year, or sells two or more used motor vehicles a year for a commission; provided, however, that the provisions of this ordi- nance shall not be construed to apply to any insurance compary,finance company, transportation company, banking corporation,or any other per- son who may come into possession of such used motor vehicles in t he regular course of business and who shall sell such motor vehiclesunder his contractual or lien rights or to save.himself from financial loss* - 1 - (b) The word "person" as used in this code shall mean and include an individual, firm, association, partnership, or corporation• SECTION 1139. PERMIT REQUIRED. No person shall engage in, con- duct, manage, operate or carry on the business of a used auto mobile dealer within the City of Burlingame unless a permit so to do at the place or location where such business is carried on shall have first been granted such person by the City Council of theCity of Burlingame. SECTION 111;0. APPLICATION. To obtain the permit required by $set - ion 1139 of this code, the applicant shall file a written application therefor with the City Clerk of the City of Burlingame, which applica- tion shall be verified by the applicant, if an individuals or, if the applicant shall be a firm, association, or partnership, then the appli- cation shall be verified by one of the members; or, if the applicant shall be a corporation, then the application shall be verified by one of the officers thereof. Such application shall set forth the following information; The name, age, and residence address of the applicant, if an individuals or applicants if a firm, association, or partnerships or,if a corporation, its name, date and place of incorporation, address of its principal place of business, and the names of all its officers, together with their respective addresses; or, if a firm, assooiation,or partnership, the names of the members comprising the firm, association or partner- ship, together with their respective addresses, the kind of business for which such permit is sought; the address at which such business is to be oonducteds and a statement as to whether or not an application for a similar permit has been refused, cancelled, rescinded, revoked, or suspended by any city, county or political subdivision of the State of California, The application must show that the applicant intendsto carry on his business of a used automobile dealer at a fixed place with- in the City of Burlingame where used motor vehicles will be displayed for sale, The application shall also set forth a recital of the business affiliations of the individuals whose names are hereinabove required to ,-2 - be named on said application for a period of ten (10) years prior to the date of the application. SECTION li41. APPLICATION FEES. An application for a permit to engage and conduct, manage, operate or otherwise carry on the business of a used automobile dealer shall be accompanied by an application fee in the sum of Two Hundred Fifty Dollars (0250.00). Such application fee shall be in addition to any permit or license fee which is now or may hereafter be required to be paid. In the event an application is denied or withdrawn by the appli- cant, One Hundred Seventy Five Dollars ("�175.00) shall be refunded to the applicant, the balance to be retained by the City for processing the application. All fees herein provided for shall be collected by the City Tax Collector, who shall issue proper receipts therefor. SECTION 1142. NOTICE AND INVESTIGATION. Upon receipt of the ap- plication and payment of the application fee,the City Clerk shall pre- sent the application to the City Council. The City Council shall set the application for hearing and shall direct notice of the time, date, and place of such hearing to be given by causing a notice thereof to be published once a week for four (4) successive weeks in a newspaper of general circulation published daily in the City. Said notice shall set forth the date and place of the hearing, the name of the applicant and the location at which the business is to be conducted. After the City Council has set the application for hearing it shall refer the application to the Chief of Police and the Fire C hief who shall cause an investigation of the application and of the applicant or applicants, or members, partners, or offioers, as the case may be, of an applicant firm, association, partnership or e► corporation, to be made within thirty (30) days after the receipt of such application by Chief of Police and Fire Chief, and who shall, on or before the ex- piration of said thirty (30) day period, return the application, to- gether with their written report of investigation thereof, to the City Council for its consideration at the time set for hearing upon the ap- plication. - 3 - The report of the Chief of Police shall include the fingerprinting identification and investigation of those persons whose names are here- in required to be set forth in said application. The report of the Fire Chief shall include an inspection of the premises to determine possible fire hazards to adjoining properties• SECTION 1143. HEARING. At the time fixed for the hearing, the City Council shall examine the applicant, consider the report of the Chief of Police and Fire Chief, and, unless it shall find that the ap- plicant is not of good character', reputation, moral integrity or a fit and proper person to conduct the business for which the application has been made or that the conduct of the business at the location specified in the application would be detrimental to the public health, safety or welfare, shall direct the City Tax Collector to issue a permit upon filing of the bond provided for in Section 1144 of this code, which permit shall be valid for a period of one (1) year from the date of is- suance. The Council may continue the hearing from time to time for its recommendation thereon, or for the purpose of obtaining further or ad- ditional information which, in its sole discretion, it may deem nec- essaryo SECTION 1144. BOND. Every applicant at the time of making said application, and every person, firm or corporation who has heretofore been engaged and hereafter engages in the business of dealing in used automobiles, within thirty days, shall file hereafter and thereafter maintain, a bond in the sum of Four Thousand Dollars ($4,000.00),which shall run to the City of Burlingame and to any person,firm or corpora- tion who shall sustain any injury covered by said bond. Such bond shall be executed by the persons firm or corporation operating or proposing to operate as a used automobile dealer as principal and by a corpora- tion which is licensed by the Insurance Commissioner of this State to transact the business of fidelity and surety insurance a surety, or in lieu of said surety corporation bond, applicant may deposit cash or United States Government Bonds of the current market value in the amount -4- of Four Thousand Dollars (14,000.00). The bond shall be conditioned that the principal will indemnify any and all persons, firms or cornor- ations for any loss suffered by the substitution by the principal of a motor vehicle other than the one selected by the purchaser, or by his failure to deliver a clear title to those legally entitled thereto, or by any misappropriation of moneys or property belonging to a purchasor in connection with a sale of a motor vehicle by the principal, or any loss due to an alteration of a motor vehicle on the part o£ the princi- pal to deceive the purchaser as to the year model of any vehicle sold, or any loss due to principals failure to meet the conditions of any guarantee given and shall furthermore be conditioned that said obligor will faithfully conform to and abide by the provisions of this ordi- nance. Said bond shall not be void upon the first recovery but may be used and recovered on from time to time by any person aggrieved until the whole penalty is exhausted. Such bond shall remain in full force and effect until the license of the principal is revoked or until the bond is cancelled by the surety. The surety may cancel said bond and be relieved of further liability thereunder by giving fifteen days writ- ten notice to the City Clerk of the City of Burlingaire. The total ag- gregate liability on said bond shall be limited to Four Thousand Dollars ($4,000.00). .Any person, firm or corporation who sustains an injury covered by this bond may, in addition to any other remedy that he may have, bring an action in his own name on the bond for the recovery of any damage sustained by him. .Any bond filed upApr this part must be approved by the City Attorney of the City of Burlingame• Any person, firm, or corporation carrying on a business of a used automobile dealer in the City of Burlingame on the .effective date of this ordinance must, within thirty (30) days thereafter, File a bond, as ;n this seot.4on provided, with the City Clerk. In the event that the bond filed as hereinabove provided shall be cancelled by the surety thereon, at any time, the used automobile deal- er in whose favor such bond was filed shall, within fifteen days after notice of such cancellation, file a new bond, and if such new bond is - 5 - not filed within such period of fifteen days, the permit of said auto- mobile dealer is thereupon thereby terminated and revoked without re- quirement of action on the part of the Chief of Police or otherwise. SECTION 1145• STATE LICENSE AND NUMBER -REVOCATION OF PERMIT. Every used automobile dealer must have, in addition to the permit re- quired by this code, a state license, and shall not commence business until such state license has been obtained and presented to the Chief of Police. Any revocation of such license shall be cause for revoca- tion of a permit issued under this code. SECTION 11L6. DISPLAY OF PERMIT SIGNS ON BUILDINGS. The permit of each person, firm or corporation licensed as a used automobile deal- er under the provisions of this en2ftsom shall be prominently displayed in the place of business of such dealer. There must also be displayed in a conspicuous place on the front portion of the place of business the name of the person, firm or corporation to whom thepermit has been issued, such name to be in letters not less than twelve inches in height and legible for a distance of fifty feet. SECTION 1147. DISCONTINUANCE OF BUSINESS BY PERMITTEE. Anyone now or hereafter holding a permit as a used automobile dealer who dis- continues business for a period exceeding ninety days, thereby relin- quishes all right or interest in said permit and said permit is there. by terminated and revoked without requirement of action on the part of the Chief of Police or otherwise. SECTION 1148. PERMIT TRANSFER. No permit or renewal thereof is- sued under the provisions of this code shall be transferable; provided, however, that a bona fide transfer of an interest in the business of a used automobile dealer shall not be considered a transfer of the per- mit if the original permittee retains a majority interest in said bus- iness. The original permittee, shall, within ten (10) days from and after the sale or transfer of a business or any interest therein for which a permit has been granted under the provisions of this code, notify the City Council in writing of the name and address of theperson or persons - 6 - to whom such business or any interest in such business, has been sold or transferred, together with their finger print identification. The City Council shall immediately cause this information to be given to the Chief of Police, who shall make an investigation of such individual or individuals as required by Section 1142 hereof and file a written report therein with the City Council within thirty (30) days after re- ceipt of said information. If said individuals shall fail to meet the qualifications set forth in Section 1143 hereof, the permit shall be revoked by the City Council. SECTION 1119. RENEVIAL - CHANGE OE' LOCATION. Any permit issued under the provisions of this code shall be renewable from year to year upon application, except that no such permit shall be renewed unless any business license fee which may then be due and owing to the City of Burlingame shall have first been paid for the business for which the application is made. Such application shall be made within thirty(30) days from the date of the expiration of such permit or the last renewal thereof, and if not so made, such permit shall be subject to revocation, Such applications for renewal shall set forth the information required in an original application, except that finger printing identification shall not be required if the same is on file in a prior application. A fee of Five Dollars (05.00) shall be charged for any application for e change of location of the place of business for w7business for which a permit has been granted under the provisions of this code. SECTION 1150. REVOCATION, Any permit granted under the provisions of this code may be suspended or revoked by the City Council when it shall appear that the business or calling of the person to whom such permit was granted is conducted in a disorderly or improper manner, or in violation of any statute of the State of California, or ordinance of the City of Burlingame, or that the person conducting the business is of an unfit character to conduct the same, or the purpose for which the permit has been issued is being abused to the detriment of the pub- lic, or is being used for a purpose wholly foreign to that for which the permit was issued, or that such person has violated, or caused or permitted to be violated any of the provisions of this code or of any law relating to or regulating such used automobile business, or that such person has failed to pay or satisfy within thirty (30) days after the same shall have become final, any judgment entered against him in any court, arising out of any claim, demand, or cause of motion for misrepresentation, fraud, or deceit committed in connection with the sale of any motor vehicle. If the permit of any person to engage in, conduct, manage, operate, or carry on any business under the provisions of this code shall be so revoked, another such permit shall not be granted to such person to engage in, conduct,manage, operate, or carry on any such business within twelve (12) months after the date of such revocation. SECTION 1151- HEARING ON REVOCATION. No permit granted under the provisions of this code shall be suspended or revoked,however, un- til a hearing shall have first been had by the City Council- Written notice of such hearing shall be served upon the permittee at least five (5) days prior to the date thereof- Such notice shall state the time, date and place of such hearing and shall contain a brief statement of the grounds to be relied upon for revoking or suspending such permit• The notice of hearing may be served on the permittee personally or up- on the manager or any other person in charge of the place of business for which the permit was issued, or such permittee may be notified of such hearing by depositing the notice in the United States mail in a sealed envelope, postage prepaid, addressed to the permittee at the business address appearing upon the application filed by, or in behalf of, said permittee. The decision of the City Council, after the hear- ing in this section provided for, shall be final and conclusive. SECTION 1152, EXPANSION OF LOCATION. A permit granted under this code shall only entitle the permittee to conduct the business for which the permit was granted at the location specified in the permit. A lo- cation may be expanded or enlarged to include contiguous property,pro- vided a permit has been granted by the City Council so to do. SECTION 1153- CERTAIN AD`rERTISEMENTS AND SALES PROHIBITED. It shall be unlawful for any used automobile dealer to advertise for sale in any newspaper, or through any other medium, any automobile not ac- tually for sale at the premises of such dealer at the time the adver- tisement is inserted in the newspaper or other medium. Within forty - eight hours after any automobile that has been advertised for sale has been sold or withdrawn from sale, the used automobile dealer offering the same shall request withdrawal of any advertisement relative to such automobile, from any newspaper or any other medium publishing the same• It shall be unlawful for any used automobile dealer to sell any used automobile or other motor vehicle from any place other than the fixed and established place of business, for which the permit therefor has been granted by the City Council, except that such sales may be made by a licensed used automobile dealer from the registered place of business of any used automobile dealer holding a permit hereunder. It shall be unlawful for any dealer in used automobiles to erect or cause to be erected any sign, billboard or other structure for the purpose of advertising other than in compliance with this code. SECTION 1154. SURFACE, Except as herein otherwise permittedjthe surface of the entire area of every used car lot shall be paved with rock and gravel rolled and bound with an oil mixture to form a firm surface, or with an asphaltum pavement with sufficient base a - , and of sufficient thickness to be suitable for use in mov- ing vehicles over it without indentation• Any pavement of higher char- aoter will be acceptable, Notwithstanding said requirements, any por- tion of any used car lot may be devoted to a properly irrigated an d maintained garden with shrubs, lawn, or other treatment for beautifica- tion thereof. The surface of every used car lot and the sidewalk area in front thereof shall at all times be kept clean and free from weeds, Any used automobile dealer holding a permit to do business in the City of Burlingame on the effective date of this ordinance need not comply with the provisions of this section regarding the surfacing of his or its used car lot until January 1, 1953• - 9 - SECTION 1155. BUILDINGS. Every used car lot shall have on it , unless it immediately adjoins a building owned or leased by applicant and used by him for the transaction of said used car business, an of- fice building of appropriate size, built in conformity with the build- ing requirements of the zone or district in which such used car lot is located, which building shall provide adequate toilet facilities and shall at all times be kept and maintained in a neat, sanitary and clean condition as to the exterior and interior thereof. Purchases, sales, and other transactions of the operator of such used car lot shall be transacted within said building as far as possible. Any used automobile dealer holding a permit to do business in the City of Burlingame on the effective date of this ordinance n e e d not comply with the provisions of this section regarding any office build- ing on his or its used car lot until January 1, 1953• SECTION 1156. RECORDS TO BE KEPT - REPORTS TO POLICE. Every used automobile dealer shall keep a record of the purchases, consignments sales and exchanges of each motor vehicle purchased,sold, consigned to be sold, or exchanged by such dealer and said record shall et all times be open to the inspection of the Chief of Police, or any peace officer under his direction. Said record shall contain the name and address of the person, firm or corporation from whom purchased, or received, the make, state license number, motor number, serial number, style and seating capacity of any used motor vehicle purchased or received. SECTION 1157. PRINCIPALS RESPONSIBLE. Every person,firm or corp- oration operating under the provisions of this apd&newe shall be held strictly responsible for the conduct and representations of all employ- ees in all transactions regarding used automobiles or other motor vee hicles; nor shall such dealer permit any person to sell, purchase or exchange, or to offer to sell, purchase or exchange any used auto mo- bile or other motor vehicle in or upon the premises or locations spec- ified in his perthit unless such person also has a permit as provided herein, or is an employee of a person having such permit. Any viola- tion of this section shall subject such dealer to suspension or revocation - 10 - of his permit by the City Council. SECTION 1158. GASOLINE SUPPLY. No person, firm or corporation operating under the provisions of this ordinance shall store, keep or park automobiles or motor vehicles upon the premises licensed within twenty-five (25) feet of gasoline supply stations or dispensing units except while being serviced with gasoline, oil, air and water and bat- tery testing, SECTION 1159. PEPJIITS UNDER OTHER ORDINANCES. Any person having a new or used automobile dealer's permit on the effective date hereof need not file an application under the provisions of this tce nor pay the original application fee herein mentioned. Existing permits shall continue in full force and effect until January 1, 1952 the same as if issued under the provisions of this code, TOpon their expiration, they may be renewed as provided in Section 1149 of this code. Persons holding such permits must thereafter comply with all the provisions of this ordinance, except as provided in Sections 1154 and 1155 hereof. SECTION 1160. CONSTITUTIONALITY. If any section, subsection,cen- tence, clause or phrase of this ordinance for any reason is held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection. sentence, clause and phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional. SECTION 1161. REPEALING PROVISION. All ordinances or parts of ordinances in conflict herewith are hereby repealed. SECTION 2, This ordinance shall be published once as requi rest by law. H. Kent Atwat,gr " Mayor I, HERBERT K. VVHITE, City Clerk, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council held on the 22nd day of October, 1951, and adopted thereafter, as amended, on the 19th day of November, 1951, by the following vote: i=S: COUNM11EN: Atwater -Byrd -Hunt -Love -Simonds NOES: COUNCILMEN: None ABSENT COUNCILTEN: None Herbert K. White City Clerk