HomeMy WebLinkAboutAgenda Packets - 2003/06/02
CITY OF MOUNDS VIEW
CITY COUNCIL WORKSESSION AGENDA
Monday, June 2, 2003
7pm
CALL TO ORDER
ROLL CALL: Linke, Stigney, Quick, Marty, Gunn
PUBLIC COMMENT
Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full
name and address for the minutes. Also, please limit your comments to three minutes.
Agenda Items Discussed by Consensus
______ 1. Presentation by MMKR of the Annual Financial Report
______ 2. Pawnshop Discussion – Ordinances 711 and 712
______ 3. Police Civil Service Commission Discussion
______ 4. Mounds View Mobile Home Park Second Access Issue – Introduction of the Draft
Feasibility Report
______ 5. City Council Priorities Discussion
______ 6. Review Legal RFP Responses, Identify Firms for Interview
______ 7. City Administrator Recruitment Update - Set Interview Dates (No Report)
Next Council Worksession: Monday, July 7, 2003
Next City Council Meeting: Monday, June 9, 2003
Item No. 1
Type of Business: WK
WK: Work Session; PH: Public Hearing;
CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Charles Hansen, Finance Director
Item Title/Subject: Presentation by MMKR of the Annual Financial Report
Meeting Date: June 2, 2003
Attached is the Comprehensive Annual Financial Report for the Year Ended
December 31, 2002. The financial report was audited by Malloy, Montague,
Karnowski, Radosevich & Co., P.A.
Representatives of MMKR will be at the June 2nd work session to make a
presentation and answer any questions. The Management Report and the Special
Purpose Audit Reports will be handed out by MMKR and discussed on Monday night.
Financial reports can be difficult to read. If you aren’t inclined to read the entire
document, then I suggest that reading the letter of transmittal on pages three through
nine and reviewing the combined financial statements on pages fourteen through
nineteen would be good preparation for the work-session.
If possible, we would like to hear and attempt to answer as many questions as
possible at the work-session so that it won’t be necessary to bring MMKR
representatives back for a second meeting.
A resolution will be placed on the agenda for one of the June regular City Council
meetings to officially accept the annual financial report.
Respectfully Submitted,
Charles Hansen
Item No: 2
Meeting Date: June 2, 2003
Type of Business: Worksession
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: James Ericson, Acting City Administrator
Item Title/Subject: Pawnshop Regulation Discussion
Introduction:
The City Council adopted an Interim ordinance on February 27, 2003, which directed the
Planning Commission to review the licensing and zoning implications related to pawnshops
and to recommend applicable provisions. The Planning Commission discussed this issue at
meetings in March, April and May of this year, reviewing State statues, ordinances from
adjoining communities and ordinances from communities where pawnshops currently
operate. The Commission also heard testimony from representatives of the Mounds View
Police Department who did research on their own, discussing the potential impacts of a
pawnshop with other police departments. After significant discussion and input from
interested parties including residents and tenants from Moundsview Square, the Commission
adopted a resolution forwarding two ordinances on to the City Council for their consideration.
The Planning Commission’s resolution along with the two ordinances are attached for your
review. In addition, attached to this cover report is the full report drafted for the May 12,
2003 City Council meeting.
Discussion:
Pawnshop regulation is a contentious, emotional issue for most communities. And while
there have been major advancements and improvements in the pawn industry with the
proliferation of new Pawn Americas and other pawn chains designed to look like any other
retail establishment, there still remains negative connotations and images associated with
such businesses.
The adoption of ordinances to regulate such a business is imperative to protect and preserve
local control over the siting and operation of such a business. Without such controls, a
Pawnshop could operate unregulated in a city, locating in an area that would otherwise be
deemed inappropriate. Adoption of requirements is not an invitation for such a use, it is a
proactive measure as opposed to a less effective and more expensive reactive response.
The last point which needs to be emphasized is that the City cannot prohibit a Pawnshop
from locating here if there are other commercial uses present and zoned for in the City.
What CAN a City Do?
Cities can and should regulate WHERE in the community such a use would be appropriate
and cities can and should adopt regulations and licensing requirements to control the
operation and to protect the health, safety, well-being of the community. Regulations should
not be so unreasonable as to effectively prohibit the use, especially if it can be proven that
the underlying intent of the regulations is exactly that.
Location. The Planning Commission discussed possible locations for a pawnshop and
determined that Moundsview Square would be the least intrusive location in the City, and
even though located within the City’s primary commercial corridor, the visual impact would be
limited to 100 square feet of signage amidst the other wall-mounted signs at Moundsview
Square. (The proposed requirements however would not preclude a pawnshop from
opening at either the Hardee’s or Mattress Factory building instead of within the mall itself.)
Tenants of Moundsview Square and nearby residents have voiced concerns that a
Pawnshop would not be an appropriate use within the family oriented mall. Other uses may
not be consistent either but that is more of a leasing issue determined and controlled by
Paster Enterprises, the mall’s owner. The City cannot dictate what kind of commercial retail
uses locate within the mall unless otherwise regulated by licensing or permitting provisions.
The question then is, if not Moundsview Square, where?
A resident has suggested creation of an “overlay zone” within the City where a Pawnshop
could locate. The one identified zone would be north of new Trunk Highway 10, in the area
currently being utilized by Sysco Foods, the Bridges Golf Course, Bridges Technology Park
and Zep Manufacturing. (I am not aware if there is any available space for lease at any of
these locations.) Another potential “overlay” location would be parcels abutting Mustang
Drive and Mustang Circle, however there could be some potential opposition from the
existing businesses in that area.
Fees. While the Planning Commission did discuss fees at length and made a
recommendation regarding fees, the City Council is the body that sets the fees. Any fees
would need to be separate from the ordinances and would need to be adopted by resolution
with an amendment to the City’s Fee Schedule. Licensing fees need to reasonably relate to
the impact upon the City, thus a City cannot legitimately impose for example a $25,000
license fee simply to discourage a certain business. The annual license fee currently
proposed is $5,000. In addition to that, the City would receive 50 cents from every
reportable transaction as currently proposed. Together, it would be intended that the
collected fees would cover the City’s added expense of overseeing and monitoring the
operation, the bulk of which would be handled by the Police Department. We have
researched other cities fees and have made inquiries with other p olice departments to get a
sense of how much extra work is generated with the addition of a pawnshop. Based on this
research, it could be determined that a $5,000 annual license fee would be insufficient.
Whatever is ultimately decided on fees, if it is determined after the fact that the fees are
insufficient, the Council does have the authority to adjust them as needed. (Attached to this
report is a breakdown of what other cities charge.) It has been reported in the newspaper
that the proposed annual license fee is $10,000. That figure has been discussed and may
well be appropriate, however no formal recommendation of that amount was ever adopted.
Other Requirements. In terms of the other licensing requirements, the Planning
Commission took a fairly restrictive approach to the regulations and these can be reviewed
line by line to familiarize the Council with all of the issues. Our prosecuting attorney has
reviewed the proposed regulations and has no problems with it. Scott Riggs has reviewed it
as well.
Recommendation:
Review and discuss all of the issues associated with Pawnshops and direct staff for more
information or to place the item on the agenda for further discussion or consideration.
_____________________________________
James Ericson
Interim City Clerk/Administrator
Attachments:
1. May 12, 2003 Report
2. Ordinance 711, Zoning Requirements
3. Ordinance 712, Licensing requirements
4. Planning Commission Resolution 724-03
5. License Fee Research
Item No: 9B & 9C
Meeting Date: May 12, 2003
Type of Business: PH & CB
City of Mounds View Staff Report
To: Mounds View City Council
From: James Ericson, Interim City Administrator
Item Title/Subject: Consideration of Ordinances 711 and 712 Related to
Licensing and Zoning of Pawnshops in Mounds View;
Special Planning Case No. SP-114-03
History:
The City Council adopted an Interim ordinance on February 27, 2003, which directed the
Planning Commission to review the licensing and zoning implications and to recommend
applicable provisions. The Planning Commission has discussed this issue at their March
5th, March 19th, April 2nd, April 16th and May 7th meetings. The Commission reviewed
State statues, ordinances from adjoining communities and ordinances from communities
where pawnshops currently operate. The Commission also heard testimony from
representatives of the Mounds View Police Department who did research on their own,
discussing the potential impacts of a pawnshop with other police departments. After
significant discussion and input from interested parties including residents and tenants from
Moundsview Square, the Commission adopted a resolution forwarding the two ordinances on
to the City Council for their consideration. The Planning Commission’s resolution along with
the two ordinances are attached for your review.
Discussion:
Two ordinances are being considered this evening. Ordinance 711 is the ordinance which
amends the Zoning Code to identify the particular zoning district in which a pawnshop could
locate. Ordinance 712 is the ordinance which amends the City’s business license
regulations, creating the licensing framework within which a potential pawnshop would need
to operate. While this report addresses both ordinances, the public hearing applies only to
Ordinance 711 regarding the amendment to the Zoning Code. There has been significant
feedback from members of the community already regarding this subject so the Council may
want to allow for public comment during the discussion relating to the licensing provisions as
well.
Before delving into the two ordinances, it must be pointed out that the City does not currently
have any regulations relating to Pawnshops. Without such regulations, there is a risk of a
Pawnshop opening in the City anywhere without any controls whatsoever. By creating the
licensing provisions the City is taking the necessary steps to protect the health, safety and
welfare of the community. The City cannot simply say no to a Pawnshop without exposing
the City to expensive legal challenges. The City can, however, adopt very strict licensing
provisions and adopt a fee structure that is sufficient to cover the added expense to the
City’s police department.
Pawn Ordinances Report
May 12, 2003
Page 2
Ordinance 711.
This is a public hearing.
This ordinance amends the Zoning Code by identifying which zoning district a Pawnshop can
locate. The district proposed by the Commission is the B -4, Regional Business District. The
B-4 district is the City’s most intense business district. Because there is only one parcel so
zoned in the City, the number of locations where such a use could locate is also just the
one—Moundsview Square. The licensing provisions drafted by the Commission require a
1,000 foot separation between such uses, which in effect limits the number of Pawnshops
that could locate in Mounds View to just one.
Traditionally speaking, the options are to pick an appropriate district and then determine if
the use should be permitted by right or if the use would need a conditional use permit (CUP).
Because of the public hearing requirements built into the licensing provisions, staff and the
Commission felt it was not necessary to identify a pawnshop as a conditional use.
At the Commission’s meeting on April 16, 2003, a resident proposed a non-traditional
response to the zoning question. Instead of identifying a single zoning district, the City could
establish an “overlay” zoning district within which Pawnshops could be located. The resident
further suggested that a good place for the Pawn overlay district would be north of new State
Highway 10. This is predominantly an industrial and office area and is also where the City’s
golf course is located. The rationale behind this suggestion is that there are no churches, no
daycares and no residential uses north of Highway 10 that would be impacted by such a use.
The decision of the Planning Commission was not however unanimous. The dissenting
opinions were that Moundsview Square, being a family mall with family uses, would be an
inappropriate location to site a Pawnshop and that if such a use were to locate in the mall, it
would put the existing businesses and the public at risk and would expose families and
children to the type of people who frequent Pawnshops. Other dissenting opinions
expressed concern with the City’s efforts to revitalize the County Highway 10 corridor and
how such a use at that location would not be detrimental to the City’s corridor redevelopment
plans. The majority of the Commission supported the B-4 district if such a district were to
locate in the City, instead of creating an overlay zone north of Highway 10.
The Commission recommends adoption of Ordinance 711. Staff supports the decision of the
Planning Commission however we would not be opposed to the concept of an overlay district
alternative.
Action: Approve, table or deny the introduction and first reading of Ordinance 711.
The Council may decide to continue the public hearing through to the May 27th meeting to
allow for the greatest public input possible on this subject. The Pioneer Press and the
Bulletin will be printing articles about the Pawnshop ordinances so the May 27th meeting
may generate a fairly large public attendance.
Pawn Ordinances Report
May 12, 2003
Page 3
Ordinance 712:
(While this was not advertised as a public hearing, the C ouncil may ask for public comment
as if it were.)
The Planning Commission reviewed many ordinances and licensing provisions from other
communities and requested input and feedback from Mounds View’s Police department, who
also did their own research regarding the appropriate licensing provisions and the
appropriate fee structure. The ordinances reviewed ranged from being minimally restrictive
with few regulations to those being very restrictive. Based on the comments of the
Commission, staff drafted the attached ordinance with the assistance of an outside
consultant. Neither ordinance reflects the fees being proposed as the Council sets fees on
an annual basis by resolution. The Commission did, however, include their recommendation
as to fees in their resolution, which is attached for the Council’s review.
The ordinance begins with a “purpose” statement, which is as follows:
“The City Council of the City of Mounds View finds that pawnbroker regulation is
appropriate because such activities provide an opportunity for the commission of crimes
and their concealment because such businesses have the ability to receive and transfer
stolen property easily and quickly. The City Council also finds that consumer protection
regulation of such activities is warranted because customers of such businesses
frequently seek their services during times of desperate financial circumstances. To
help the City of Mounds View to better regulate current and future pawn businesses,
decrease and stabilize costs associated with the regulation of the pawn industry, and
increase identification of criminal activities in the pawn industry through the timely
collection and sharing of pawn transaction information, this chapter also implements
and establishes the required use of the Automated Pawn System (APS).”
Following the purpose statement, the ordinance then defines many of the terms used
throughout the ordinance. The next section, 516.03, indicates that a license is required to
operate a Pawnshop in the City of Mounds View and that, in Section 516.04 and 516.05, the
application and investigation processes are articulated. Section 516.06 indicates that the
license term is one year, and in Section 516.07 the fees are addressed, but only to the point
of mentioning that fees would be adopted annually by resolution of the City Council.
Our research revealed that the license fees charged to pawnshops also varied widely,
ranging from a low of $50 to as high as $15,000. The average annual license fee was
$2,500. A suggestion was made that the annual fee should be as high as the highest
adjacent community, which would be the city of Blaine, which charges $15,000 annually.
Blaine, however, does not charge or collect a “transaction” fee which is common in most
other cities. (Most cities charge $1.50 per billable transaction, of which the City collects 50
cents, the remaining dollar being paid to APS to defray their costs of processing and
managing the databases.)
Pawn Ordinances Report
May 12, 2003
Page 4
The Planning Commission, in their resolution, recommends the following fee structure:
??Annual License: $5,000
??Per transaction fee: $1.50
??Investigation fee: $750
??License bond: $10,000
One of the concerns raised at the Planning Commission meetings was whether the
proposed fees would actually cover the cost that would be incurred by our police
department. While it is “believed” that the amounts listed above would be adequate, we
have received feedback from other police departments that would indicate to the contrary.
The Council will need to determine whether the fees proposed by the Planning
Commission would be sufficient and if not, what would be appropriate.
Sections 516.10 and 516.11 address persons and locations ineligible for a license. The
language in these two sections are fairly common and straightforward, the Planning
Commission recommended limiting the size of the premises to 5,000 square feet to
eliminate the possibility of a pawn superstore locating in the City. It is in this section also
that places the 1,000 foot separation requirement between two pawnshops. With the
separation requirement, only one pawnshop could locate in the City.
Section 516.11 establishes most of the operating conditions of a Pawnshop, the first being
that the business shall be a member of the Automated Pawn System (APS). The city of
Minneapolis created the database system to track items pawned and purchased, giving
police departments in the metro area the opportunity to query the system for items that
may have recently been stolen. Everyone pawning or selling goods to a pawnbroker is
photographed and/or videotaped and they are required to provide proper identification.
Pawnbrokers are required to “hold” (not resell) an item for periods of time. This is another
area that deviates from city to city, however the typical hold times are 90 days for pawned
goods and 30 days for goods purchased outright. The Police Department recommended
90 day holds on BOTH pawned and purchased goods to allow for the maximum amount of
time to recover any potentially stolen goods before they are resold. Once sold, the items
would not be traceable unless the sell price exceeded $100. For goods sold in excess of
$100, the licensee must collect the name, address and phone number of the person
purchasing the item. The Planning Commission decided to follow suit with most other
cities and recommended the 30-day hold.
Section 516.11 also addresses handguns and firearms in general. The Police department
asked many surrounding communities whether they allowed or prohibnited the
pawing/purchase or sale of firearms. While some cities prohibit handguns, no ordinance
we found prohibited the pawn, purchase or sale of sport rifles and shotguns. The Planning
Commission, based upon the recommendation of the Police Department, added language
that prohibits the pawn, purchase and sale of ANY firearm.
In this same section of the ordinance, it is required that signage be posted to inform
persons seeking to pawn, pledge, sell, leave, or deposit articles of property with the licensee
of the following requirements:
Pawn Ordinances Report
May 12, 2003
Page 5
TO PAWN OR SELL PROPERTY:
??YOU MUST BE AT LEAST 18 YEARS OF AGE
??YOU MUST BE THE TRUE OWNER OF THE PROPERTY
??THE PROPERTY MUST BE FREE OF ALL CLAIMS AND LIENS
??YOU MUST PRESENT VALID PHOTO IDENTIFICATION
??VIOLATION OF ANY OF THESE REQUIREMENTS IS A CRIME.
Section 516.13 addresses the License Suspension and Revocation, provisions, which are
broad and all inclusive. The language is as follows:
The City Council may suspend or revoke a license issued under this chapter
upon a finding of a violation of:
a. Any of the provisions of this chapter
b. Any state statute regulating pawnbrokers or precious metal dealers
c. Any state or local law relating to moral character and repute. Any
conviction by the pawnbroker or precious metal dealer for theft, receiving
stolen property or any other crime or violation involving stolen property
shall result in the immediate suspension pending a hearing on revocation
of any license issued hereunder.
Basically, this language indicates that the Council could suspend or revoke the license for
any violation of any provision, however the Council would not impose a penalty so harsh as
to be disproportionate to the violation. It was suggested by a community member that there
should be a list of consequences along with a list of penalties. While the Code could
certainly be amended to reflect a penalty schedule, with very few exceptions, the City Code
opts for discretion and flexibility. Creating explicit fines and penalties may tie the Council’s
hand if circumstances warranted a lesser or greater fine or penalty. It was also suggested
that the Code take on a three-strikes approach to enforcement. Again, while that could be
implemented, the Council may determine that the first strike would warrant immediate
suspension or revocation. All violations and infractions of the Pawn Code would be reported
to the Council.
Last, Section 516.14 lists the prohibited acts associated with the pawn enterprise. The
list, which is not intended to be exhaustive, includes the following:
Pawn Ordinances Report
May 12, 2003
Page 6
No pawnbroker licensed upon this chapter shall (1) lend money on a pledge at a rate of
interest above that allowed by law, (2) possess stolen goods, (3) sell pledged goods before
the time to redeem has expired, (4) make a loan on a pledge to a minor or purchase property
from a minor, (5) accept consignments or sell consigned goods or items, and (6) keep,
possess or operate, or permit the keeping, possession or operation of gambling or gambling
equipment.
Public Comments: The following public comments were raised at the Planning
Commission meetings:
a. Acceptable Identification. I asked the Police Department if they felt it would be
appropriate or advantageous to limit the acceptable ID provisions to include ONLY
Minnesota drivers licenses or state issued Ids. The Police Department did not feel such
a restriction was necessary
b. Guaranteed Enforcement. The manner by which enforcement will occur will be through
random checks and through proactive Police work. Regardless, the Police Department
will provide the enforcement and will bring any violations to the attention of the City
Council for possible license suspension or revocation.
c. How will Manager be defined. The definition of a Manager has been added to the
ordinance and a requirement added that on average the Manager shall work a minimum
of 80 hours per month.
d. Fees should reflect that of the highest of the adjacent communities. The Police
department reviewed the fees and feels that they will be adequate however other cities
indicate that a Pawnshop creates more of a burden on the department than is recovered
through fees.
e. How will a Pawnshop impact the PD. Until a Pawnshop locates in the City, no one is
quite sure what the impact will be to the police department. The Chief and his
investigators have researched other communities and are familiar with the impacts to
other departments. If the impacts are such that the Pawnshop is requiring a
disproportionate amount of police activity, the fees would need to be adjusted
accordingly.
f. Maximum Interest rate. Minnesota Statutes establish the maximum interest rate that can
be charged. The Planning Commission agreed to NOT require a lesser threshold than
the state requires, although the Council certainly has that authority through the adoption
of the ordinance.
g. Enforcement. The comment was raised that the ordinance does not explicitly
communicate what offenses would warrant what penalties. Rather than attempting to
identify the multitude of potential violations and then attempt to associate an appropriate
consequence, the Police Department suggested leaving the language as is to allow for
discretion and flexibility.
Pawn Ordinances Report
May 12, 2003
Page 7
h. Prohibited Acts. It was suggested that the prohibited acts identified in Section 516.14
should be referenced in Section 516.13, the section dealing with suspension and
revocation. The prohibited acts ARE referenced, however in a broad sense with the
following language: “The City Council may suspend or revoke a license issued under
this chapter upon a finding of violation of . . . any of the provisions of this chapter”
which of course includes Section 516.14. While the prohibited acts COULD be
referenced if desired for additional emphasis, it would be redundant.
Summary:
In closing, and as the Council is aware, the City cannot simply decide to prohibit a use from
locating within the City. The City can, however, regulate the time, manner and location of
uses and impose licensing fees and requirements to ensure the health, safety and welfare of
the community. When the City Council adopted Ordinance 709 in February of this year, the
direction was given for the Planning Commission to research, review and draft ordinances to
control and regulate such a business. The Commission has completed this process and
their resolution adopted on May 7, 2003 recommends to the City Council Ordinances 711, an
ordinance amending the Zoning Code, and Ordinance 712, an Ordinance amending the
Business License Regulations of the City. The Planning Commission is NOT recommending
that the City attract a Pawnshop but rather is recommending adoption of the two ordinances
to PROTECT the City in the event one does attempt to locate here.
Recommendation:
The Planning Commission and Staff recommend the City Council review the two draft
ordinances and if found acceptable, to move their introduction and first reading. If the City
Council desires additional information or would like more time to review the proposed
amendments, a tabling action would be in order. If the Council would like to consider
additional public comment at your next meeting, I would recommend that a motion to
continue the public hearing also be considered.
If you should have any questions regarding either ordinance or the Planning Commission’s
resolution, please contact me at your convenience.
_____________________________________
James Ericson
Interim City Clerk/Administrator
Attachments:
1. Draft Ordinance 711
2. Draft Ordinance 712
3. Planning Commission Resolution 724-03
ORDINANCE NO. 711
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
AN ORDINANCE AMENDING THE MOUNDS VIEW CITY CODE SECTIONS 1102.02,
PERTAINING TO DEFINITIONS, AND 1115.02, PERTAINING TO PERMITTED USES
IN B-4 ZONING DISTRICTS
THE CITY OF MOUNDS VIEW ORDAINS:
SECTION 1: Section 1102.02 of the Mounds View Zoning Code pertaining to
definitions is hereby amended by adding new definitions as underlined to read as
follows:
Subd. 86. PAWNBROKER: (a) Except as provided in paragraph (b) , "pawnbroker"
means a person engaged in whole or in part in the business of lending money
on the security of pledged goods left in pawn, or in the business of purchasing
tangible personal property to be left in pawn on the condition that it may be
redeemed or repurchased by the seller for a fixed price within a fixed period of
time.
(b) The following are exempt from the definition of "pawnbroker": any bank
regulated by the state of Minnesota, the comptroller of the currency of the
United States, the Federal Deposit Insurance Corporation, the board of
governors of the Federal Reserve System, or any other federal or state authority
and their affiliates; any bank or savings and loan whose deposits or accounts
are eligible for insurance by the Federal Deposit Insurance Corporation or any
successor to it and all affiliates of those banks and savings and loan
associations; any state or federally chartered credit union; any industrial loan
and thrift company or regulated lender subject to licensing and regulation by
the department of commerce.
Subd. 87. PAWNSHOP: “Pawnshop” means the location at which or premises in
which a pawnbroker regularly conducts business.
All existing subsequent subdivisions within Section 1102.02 are hereby renumbered
as appropriate.
SECTION 2: Section 1115.02 of the Mounds View Zoning Code pertaining to
Permitted Uses within the B4 Zoning District is hereby amended by alphabetically inserting
the following underlined uses:
Pawnshops, as regulated and licensed according to Chapter 516 of the City
Code.
SECTION 3. This Ordinance becomes effective thirty (30) days after its
publication in the official City newspaper.
Read by the City Council of the City of Mounds View on this ____ day of _____, 2003.
Read and passed by the City Council of the City of Mounds View this _____ day
of _________, 2003.
Jerry Linke, Mayor
ATTEST:
________________________________
James Ericson,
Acting Clerk / Administrator
(SEAL)
APPROVED AS TO FORM:
_________________________
City Attorney
ORDINANCE NO. 712
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
AN ORDINANCE AMENDING THE INDEX AND TABLE OF CONTENTS OF THE
MOUNDS VIEW MUNICIPAL CODE, AMENDING THE TABLE OF CONTENTS OF
TITLE 500, BUSINESS LICENSE REGULATIONS, AND ADDING A NEW CHAPTER
516, ENTITLED “PAWNSHOPS”
THE CITY OF MOUNDS VIEW ORDAINS:
SECTION 1: The Mounds View Municipal Code Index is amended by
alphabetically inserting the following underlined text:
Pawnshops ………………………………………………………….………………………516
SECTION 2: The Mounds View Municipal Code Table of Contents is amended by
inserting the following underlined text:
Pawnshops ………………………………………………………….………………………516
SECTION 3: The Table of Contents for Title 500, Business License Regulations, is
amended by inserting the following underlined text:
Pawnshops ………………………………………………………….………………………516
SECTION 4: A new Chapter 516 entitled “Pawnshops” is hereby added to Title
500, Business License Regulations:
D R A F T – REVISED 5-19-03
Ordinance 712
Page 2
CHAPTER 516
PAWNSHOPS
SECTION:
516.01: Purpose
516.02: Definitions
516.03: License Required
516.04: Application for License
516.05: Investigation by Police Department
516.06: Term of License and Renewals
516.07: License Fees
516.08: Billable Transaction Fees
516.09: Bond Requirement
516.10: Ineligible Persons and Locations
516.11: General License Requirements
516.12: Alarm System Requirement
516.13: Suspension or Revocation of License
516.14: Prohibited Acts
516.15: Adoption of State Statute by Reference
516.16: Separability
516.01 PURPOSE: The City Council of the City of Mounds View finds that
pawnbroker regulation is appropriate because such activities provide an opportunity
for the commission of crimes and their concealment because such businesses have
the ability to receive and transfer stolen property easily and quickly. The City Council
also finds that consumer protection regulation of such activities is warranted
because customers of such businesses frequently seek their services during times of
desperate financial circumstances.
To help the City of Mounds View to better regulate current and future pawn businesses,
decrease and stabilize costs associated with the regulation of the pawn industry, and
increase identification of criminal activities in the pawn industry through the timely
collection and sharing of pawn transaction information, this chapter also implements
and establishes the required use of the Automated Pawn System (APS).
516.02 DEFINITIONS: As used in this Chapter, the following words and terms
shall have the meanings as follows:
ACCEPTABLE IDENTIFICATION: Acceptable forms of identification are a current valid
Minnesota driver's license, a current valid Minnesota identification card, or a current
valid photo driver's license or identification card issued by another state or province
of Canada.
Ordinance 712
Page 3
AUTOMATED PAWN SYSTEM (APS): A computerized data collection system that
mandates the collection of data and digitized images via modem for the purpose of
regulation and review of licensed pawn dealers by city officials and authorized
subscribers.
BILLABLE TRANSACTIONS: Every reportable transaction conducted by a
pawnbroker, except renewals, redemptions, or extensions of existing pawns on items
previously reported and continuously in the licensee's possession.
CONSIGNMENT: Acting as a sales agent for another, selling another person’s goods
without having to first purchase said goods.
ISSUING AUTHORITY: The City of Mounds View.
ITEM CONTAINING PRECIOUS METAL: An item made in whole or in part of metal and
containing more than one percent (1%) by weight of silver, gold or platinum.
MANAGER: A person or persons designated by the licensee to operate and
supervise the pawnshop under the provisions of this Chapter.
MINOR: Any natural person under the age of eighteen (18) years.
PAWNBROKER: A person engaged in whole or in part in the business of lending
money on the security of pledged goods left in pawn, or in the business of purchasing
tangible personal property to be left in pawn on the condition that it may be redeemed
or repurchased by the seller for a fixed price within a fixed period of time. The
following are exempt from the definition of "pawnbroker": any bank regulated by the
state of Minnesota, the comptroller of the currency of the United States, the Federal
Deposit Insurance Corporation, the board of governors of the Federal Reserve system,
or any other federal or state authority and their affiliates; any bank or savings and loan
whose deposits or accounts are eligible for insurance by the Federal Deposit Insurance
Corporation or any successor to it and all affiliates of those banks and savings and
loan associations; any state or federally chartered credit union; any industrial loan and
thrift company or regulated lender subject to licensing and regulation by the
department of commerce.
PAWNSHOP: The licensed location in which a pawnbroker conducts business.
PERSON: One or more natural persons; a partnership, including a limited
partnership; a corporation, including a foreign, domestic or nonprofit corporation, a
trust, a political subdivision of the state; or any other business organization.
PRECIOUS METAL DEALER: Except as exempted by MN Statutes Section 325F.732
Subd 2, any natural person, partnership or corporation engaging in the business of
buying, selling or pawning secondhand items containing precious metal, including,
but not limited to, jewelry, watches, eating utensils, candlesticks, and religious and
decorative objects.
PRECIOUS METALS: means Silver, gold or platinum.
Ordinance 712
Page 4
REDEMPTION PERIOD: The date by which an item of property that has been pawned
must be redeemed by the pledger without risk that the item will be sold. Such date
must be a day on which the pawnbroker or precious metal dealer is open for regular
business.
REPORTABLE TRANSACTION: Every transaction conducted by a pawnbroker in
which merchandise is received through a pawn or purchase, or in which a pawn is
renewed, extended, or for which a unique transaction number or identifier is
generated by their point of sale software, is reportable, except:
A. The bulk purchase of new or used merchandise from a merchant, manufacturer, or
wholesaler having an established permanent place of business, and the retail sale
of said merchandise, provided the pawnbroker must maintain a record of such
purchase which describes each item, and must mark each item in a manner which
relates it to that transaction record.
B. Retail and wholesale sales of merchandise originally received by pawn or
purchase, and for which all applicable hold and/or redemption periods have
expired.
516.03 LICENSE REQUIRED: No person shall exercise, carry on or be engaged
in the trade or business of pawnbroker within the city unless such person is currently
licensed in accordance with this chapter to be a pawnbroker. Pawnbrokers shall also
maintain and display at all times a current and valid Precious Metal Dealer License
issued by Ramsey County.
516.04 APPLICATION FOR LICENSE: Every application for license under this
chapter, whether for a natural person, partnership, corporation or other organization,
shall be made on a form supplied by the City and shall contain all information as
required on that form by law.
Subd. 1. All applications for a license under this chapter shall be signed and sworn
to under oath or affirmation by applicant. If the application is that of a natural
person, it shall be signed and sworn to by such person; if that of a corporation,
by an officer thereof; if that of a partnership, by one of the general partners;
and if that of an unincorporated association, by the manager or managing
officer thereof.
Subd. 2. Any falsification on a license application shall result in the denial of a
license.
Subd. 3. No Pawnbroker License will be issued, renewed or transferred without a
public hearing conducted by the City Council after a notice has been published
in the official City newspaper at least ten (10) days in advance of the hearing.
Ordinance 712
Page 5
516.05 INVESTIGATION BY POLICE DEPARTMENT:
Subd. 1. Investigation and Report: All applications shall be referred to the police
department for verification and investigation of the facts set forth in the
application. The police department shall make a written report and
recommendation to the City Council as to approval or denial of the license. The
City Council may order and conduct such additional investigation that it deems
necessary.
Subd. 2. Cost of Investigation: An investigation fee shall be collected with each
application for a Pawnshop license to cover the expense of any investigation
needed to assure compliance with this chapter. The investigation fee is
established by resolution of the City Council. If the investigation and verification
process is conducted outside the state of Minnesota, additional fees may be
required.
Subd. 3. When a licensee places a manager in charge of the business, or if the
named manager(s) in charge of a licensed business changes, the licensee
must complete and submit the appropriate investigation application within
fourteen (14) days. The manager shall be subject to the investigation required
herein and to payment of the investigation fee required by this chapter, which
shall be paid in advance. The designation of a new manager shall not cause
the license to become invalid before a decision is rendered, provided proper
notice and application are made by the applicant. A proposed new manager
shall be referred to as the interim manager. In the event an interim manager is
rejected, the licensee shall designate another interim manager and make the
required application within fourteen (14) days of the decision. If a proposed
manager is rejected, the decision may be appealed to the city council by filing
a written notice of appeal with the city clerk/administrator within ten (10) days
after being notified of the rejection.
516.06 TERM OF LICENSE AND RENEWALS:
Subd. 1 Term: Licenses expire annually on December 31. The license fee will be
prorated in thirty (30) day increments for licenses issued after June 30.
Subd. 2. Renewal: A license under this section will not be renewed if the City Council
determines that the licensee has failed to comply with the provisions of this
chapter in a preceding license year or if there would be sufficient grounds not to
issue a license in the first instance.
516.07 LICENSE FEES: To defray administrative and other costs of processing
applications for Pawnshop licenses, a nonrefundable fee shall be paid at the time an
application is filed with the City. The minimum fee shall be established by resolution
approved by the City Council.
Ordinance 712
Page 6
516.08 BILLABLE TRANSACTION FEES: Licensees shall pay a monthly
transaction fee on all billable transactions. The minimum fee shall be established by
resolution approved by the City Council. Such fee shall be due and payable within
thirty (30) days. Failure to timely pay the billable transaction fee shall constitute a
violation of this chapter.
516.09 BOND REQUIREMENT: At the time of filing an application for a license,
the applicant shall file a bond in the amount of ten thousand dollars ($10,000.00) with
the City. The bond, with a duly licensed surety company as surety thereon, must be
approved as to form by the city attorney. The bond must be conditioned on the licensee
observing all ordinances of the City and all laws relating to the business of pawnbroker
or precious metal dealer, and the licensee accounting for and delivering to any person
legally entitled thereto any articles which may have come into the possession of the
licensee as pawnbroker, or in lieu thereof such licensee paying the person or persons
the reasonable value thereof. The bond shall contain a provision that it may not be
canceled without thirty (30) days advance written notice to the licensing authority.
516.10 INELIGIBLE PERSONS AND LOCATIONS:
Subd. 1. Ineligible Persons: No licenses under this chapter shall be issued to an
applicant who is a natural person, general or managing partner, manager,
proprietor or agent if such applicant:
a. Is a minor at the time the application is filed;
b. Has been convicted of any offense related to the occupation licensed or
involving moral turpitude;
c. Is not a citizen of the United States or a resident alien;
d. Is not of good moral character or repute;
e. Has misrepresented or falsified information on the license application;
f. Holds an intoxicating liquor license under this code;
g. Has had a pawnbroker or precious metal dealer license revoked elsewhere;
or
h. Other good and sufficient reason at the sole discretion of the City Council.
Subd. 2. Ineligible Locations: The following locations shall be ineligible for licenses
under this chapter:
a. No license shall be granted or renewed for operation on any property on
which taxes, assessments or other financial claims of the state, county, school
district or city are due, delinquent or unpaid.
Ordinance 712
Page 7
b. No license shall be granted or renewed if the property on which the
business is to be conducted is owned or controlled by a person who is
ineligible for a license.
c. The property is not properly zoned.
d. A location within one thousand (1,000) feet of an existing pawnshop.
e. No license shall be granted for a premises in excess of 5,000 square feet.
Subd. 3. Multiple Brokers Or Dealers Prohibited: No license shall be issued for
multiple pawnbrokers at one location.
516.11 GENERAL LICENSE REQUIREMENTS:
Subd. 1. Record Keeping: All licensees shall utilize the Automated Pawn System
(APS) for the creation, maintenance, and storage of transactional records
regarding licensed activities. At the time of a receipt of an item of property,
whether purchased or pawned, the pawnbroker shall immediately record, on
computer disc or if the computer is temporarily unavailable in a book or journal
which has page numbers that are preprinted and in an indelible ink, the
following information:
a. Description Of Item: An accurate description of the item of property
including, but not limited to, any trademark, identification number, serial
number, model number, brand, brand name or other identifying mark on such
item;
b. Date And Time: The date and time the item of property was received by the
licensee, and the unique alpha and/or numeric transaction identifier that
distinguishes it from all other transactions in the licensee's records.
Transaction identifiers must be assigned consecutively;
c. Description Of Person: The name, address, residence phone n umber, date of
birth, and accurate description including: sex, height, weight, race, color of
eyes and color of hair of the person from whom the item of property was
received;
d. Identification Number: The identification number and state or nation of issue
from any of the following forms of identification of the person from whom the
item of property was received:
(1) A valid driver's license;
(2) A valid state or national picture identification.
e. Price: The price of the item paid and whether the item was purchased or
pawned;
f. Fees: A list of all fees and charges that the transaction may be subject to;
Ordinance 712
Page 8
g. Statement: A signed statement from the person from whom the item of
property is received that there are no liens on the item, that it is not stolen and
that the person has the right to sell it.
h. Photograph or Video Recording: The licensee must take a color photograph
or color video recording of each customer involved in a billable transaction
and every item pawned or sold that does not have a unique serial or
identification number permanently engraved or affixed.
(1) Photo Provisions: The photograph taken must be at least two inches
(2") in length by two inches (2") in width and must be maintained in such
a manner that the photograph can be readily matched and correlated
with all other records of the transaction to which they relate. Such
photographs must be available to the chief of police, or the chief's
designee, upon request. The major portion of the photograph must
include an identifiable front facial close up of the person who pawned or
sold the item. Items photographed must be accurately depicted. The
licensee must inform the person that he or she is being photographed
by displaying a sign of sufficient size in a conspicuous place on the
premises.
(2) Video Provisions: If a video photograph is taken, the video camera
must zoom in on the person pawning or selling the item so as to include
an identifiable close up of that person's face. Items photographed by
video must be accurately depicted. Video photographs must be
electronically referenced by time and date so they can be readily
matched and correlated with all other records of the transaction to
which they relate. The licensee shall display a sign of sufficient size in a
conspicuous place on the premises informing patrons that all
transactions are video-recorded. The licensee must keep the exposed
videotape for four (4) months, and furnish it to the police department
upon request.
(3) Digitized Photographs: Digital images shall be provided in a format
specified by the issuing authority, electronically cross referenced to the
reportable transaction with which they are associated.
i. Renewals, Extensions And Redemptions: For renewals, extensions and
redemptions, the licensee shall provide the original transaction identifier, the
date of the current transaction, the type of transaction, interest charges
accrued, and any amount paid for the transaction or the article. When an article
of purchased or forfeited property is sold or disposed of by a licensee the
records shall contain an account of such sale with the date, the amount for
which the article was sold, and the full name, current address, and telephone
number of the person to whom sold.
Ordinance 712
Page 9
Subd. 2. Inspection Of Records: The pawnbroker shall make available the
information required in subdivision 1 of this section at all reasonable times for
inspection by the police department or other representatives of the licensing
authority.
Subd. 3. Retention of Records. The pawnbroker shall retain the information required
in this section for at least five (5) years.
Subd. 4 Daily Reports To Police Are Required: The pawnbroker shall submit daily to
the police department all information required by this section regarding every
reportable transaction by transferring it from their computer to the Automated
Pawn System. All required records must be transmitted completely and
accurately after the close of business each day in accordance with standards
and procedures established by the issuing authority using procedures that
address security concerns of the licensees and the issuing authority. The
licensee must display a sign of sufficient size, in a conspicuous place in the
premises, which informs all patrons that all transactions are reported to the
police department daily.
Subd. 5. Data Transfer Failures:
a. If a licensee is unable to successfully transfer the required reports by
electronic means, the licensee must provide the police department printed
copies of all reportable transactions along with the videotape(s) for that date,
by twelve o'clock (12:00) noon the next business day;
b. If the problem is determined to be in the licensee's system and is not
corrected by the close of the first business day following the failure, the
licensee must provide the required reports and shall be charged a fifty dollar
($50.00) reporting failure penalty, daily, until the error is corrected; or
c. If the problem is determined to be outside the licensee's system, the
licensee must provide the required reports and resubmit all such transaction
electronically when the error is corrected.
d. If a licensee is unable to capture, digitize or transmit digital photographs
required by this chapter, the licensee must immediately take all required
photographs with a still camera, cross reference the photographs to the
correct transaction, and make the pictures available to the police department
upon request.
e. Regardless of the cause or origin of the technical problems that prevented
the licensee from uploading their reportable transactions, upon correction of
the problem, the licensee shall upload every reportable transaction from every
business day the problem had existed.
f. The police department may at their discretion, upon presentation of
extenuating circumstances by the licensee, delay the implementation of the
daily reporting penalty imposed by this section.
Ordinance 712
Page 10
Subd. 6. Police Order To Hold Property: Whenever the police department notifies the
pawnbroker not to sell an item, the item shall not be sold or removed from the
licensed premises until authorized to be released by the police department.
Subd. 7. Holding Period Of Pawnbrokers:
a. Any item pawned to a pawnbroker for which a report to the police is
required under this chapter shall not be sold or otherwise transferred for
ninety (90) days after the date of the pawn. However, an individual may redeem
an item pawned seventy two (72) hours after the item was received on deposit
by the pawnbroker, excluding Sundays and legal holidays.
b. Any item sold outright to a pawnbroker for which a report to the police is
required under this chapter shall not be sold or otherwise transferred for thirty
(30) days after the date of the initial purchase.
Subd. 8. Receipt: The pawnbroker shall provide a receipt to the seller or pledger
of any item of property received, which shall include:
a. The name, address and phone number of the pawnbroker or precious metal
dealer business.
b. The date on which the pawnbroker or precious metal dealer received the
item.
c. A description of the item received and amount paid to the pledger or seller in
exchange for the item pawned or sold.
d. The signature of the pawnbroker or precious metal dealer or agent.
e. The last regular business day by which the item must be redeemed by the
pledger without risk that the item will be sold and the amount necessary to
redeem the pawned item on that date.
f. The annual rate of interest charged on pawned items received.
g. The name, address, and signature of the seller or pledger.
Subd. 9. Hours Of Operation: No pawnbroker shall be open for the transaction of
business on any day of the week before eight o'clock (8:00) A.M. or after eight
o'clock (8:00) P.M.
Subd. 10. Minors: The pawnbroker shall not purchase or receive personal property
of any nature on deposit or pledge from any minor.
Subd. 11. Inspection Of Items: The pawnbroker shall at all times during the term of
the license allow the police department to enter the premises where the
pawnbroker business is located, for the purpose of inspecting such premises
and inspecting the items, wares and merchandise therein for the purpose of
locating items suspected or alleged to have been stolen or otherwise
improperly disposed of.
Ordinance 712
Page 11
Subd. 12. License Display: A license issued under this chapter must be posted in a
conspicuous place in the premises for which it is used. The license issued is
only effective for the compact and contiguous space specified in the approved
license application. Any additional required county and state licenses shall be
similarly posted.
Subd. 13. Maintenance Of Order: A licensee under this chapter shall be responsible
for the conduct of the business being operated and shall maintain conditions
of order.
Subd. 14. Prohibited Goods: No licensee under this chapter shall accept any item of
property which contains an altered or obliterated serial number or "operation
identification" number or any item of property whose serial number has been
removed.
Subd. 15. Payment By Check: Payment of more than two hundred fifty dollars
($250.00) by a licensee for any article deposited, left, purchased, pledged or
pawned shall be made only by a check, draft, or other negotiable or
nonnegotiable instrument that is drawn against funds held by a financial
institution. This policy shall be posted in a c onspicuous place in the premises.
Subd. 16. Storage: All items shall be stored within the licensed premises.
Subd. 17. Prohibited Items: Licensee shall not accept for pawn or purchase or offer
for sale firearms or handguns.
Subd. 18. Signage: L icensees shall by adequate signage and separate written notice
inform persons seeking to pawn, pledge, sell, leave, or deposit articles of
property with the licensee of the foregoing requirements:
TO PAWN OR SELL PROPERTY:
??YOU MUST BE AT LEAST 18 YEARS OF AGE
??YOU MUST BE THE TRUE OWNER OF THE PROPERTY
??THE PROPERTY MUST BE FREE OF ALL CLAIMS AND LIENS
??YOU MUST PRESENT VALID PHOTO IDENTIFICATION
??VIOLATION OF ANY OF THESE REQUIREMENTS IS A CRIME.
For the purpose of this Subsection, “adequate signage” shall mean at least one
sign of not less than four (4) square feet in surface area, comprised of lettering
of not less than three-quarters (3/4) of an inch in height, posted in a conspicuous
place on the licensed premises.
Ordinance 712
Page 12
Subd. 19. Disposition of Articles: When any article is sold or disposed of by the
licensee, the records shall contain an account of such sale with the date
thereof, interest and charges accrued, the amount for which the article was
sold and, in the case of items sold for more than $100.00, the name, address
and telephone number of the purchaser.
Subd. 20. Managers: In the event the Licensee places a manager or managers in
charge of the operation (subject to the requirements of Section 516.04), the
manager or managers shall work on average a minimum of 80 hours p er month
during a six-month time period.
516.12 ALARM SYSTEM REQUIREMENT: An alarm system, professionally
installed and approved by the Police Chief shall be installed at the licensed premises.
516.13 SUSPENSION OR REVOCATION OF LICENSES:
Subd. 1. Violation: The City Council may suspend or revoke a license issued under
this chapter upon a finding of a violation of:
a. Any of the provisions of this chapter
b. Any state statute regulating pawnbrokers or precious metal dealers
c. Any state or local law relating to moral character and repute. Any
conviction by the pawnbroker or precious metal dealer for theft, receiving
stolen property or any other crime or violation involving stolen property shall
result in the immediate suspension pending a hearing on revocation of any
license issued hereunder.
Subd. 2 Notice; Hearing: Except in the case of a suspension pending a hearing on
revocation, a revocation or suspension by the City Council shall be preceded by
written notice to the licensee and a public hearing. The written notice shall give
at least ten (10) days notice of the time and place of the hearing and shall state
the nature of the charges against the pawnbroker or precious metal dealer. The
Council may, without any notice, suspend any license pending a hearing on
revocation for a period not exceeding thirty (30) days. The notice may be served
upon the pawnbroker by United States mail addressed to the most recent
address of the business in the license application.
Ordinance 712
Page 13
516.14 PROHIBITED ACTS:
Subd. 1. No pawnbroker licensed upon this chapter shall:
a. Lend money on a pledge at a rate of interest above that allowed by law;
b. Possess stolen goods;
c. Sell pledged goods before the time to redeem has expired;
d. Make a loan on a pledge to a minor or purchase property from a minor;
e. Accept consignments or sell consigned goods or items.
f. Keep, possess or operate, or permit the keeping, possession or operation on
the licensed premises of dice, slot machines, roulette wheels, punchboards,
blackjack tables or pinball machines which return coins or slugs, chips or
tokens of any kind, which are redeemable in merchandise or cash. Gambling of
any kind, except as noted herein, is prohibited. No gambling equipment
authorized under Minnesota Statutes, chapter 349, may be kept or operated
and no raffles may be conducted on the licensed premises and/or adjoining
rooms. The purchase of lottery tickets may take place on the licensed premises
as authorized by the director of the lottery pursuant to Minnesota Statutes,
chapter 349A.
516.15 ADOPTION BY REFERENCE: Minnesota Statutes, Chapter 325J is
hereby adopted by reference. Wherever this chapter is more restrictive than said
statutes, this chapter will control. Wherever said statutes are more restrictive than
this chapter, said statutes shall control.
516.16 SEPARABILITY: Should any section, clause or other provision of this
chapter be declared by a court of competent jurisdiction to be invalid such decision
shall not effect the validity of the ordinance as a whole or any part other than the part
so declared invalid.
Ordinance 712
Page 14
SECTION 5. This Ordinance becomes effective thirty (30) days after its
publication in the official City newspaper.
Read by the City Council of the City of Mounds View on this 12th day of May,
2003.
Read and passed by the City Council of the City of Mounds View this 27th day of
May, 2003.
Jerry Linke, Mayor
ATTEST:
________________________________
James Ericson,
Interim Clerk / Administrator
APPROVED AS TO FORM:
_________________________
City Attorney
(SEAL)
MOUNDS VIEW PLANNING COMMISSION
RESOLUTION NO. 724-03
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION RECOMMENDING AMENDMENTS TO TITLE 500, BUSINESS
LICENSE REGULATIONS, AND TITLE 1100, ZONING CODE, OF THE MOUNDS
VIEW CITY CODE, PERTAINING TO THE LICENSURE AND ZONING REGULATION
OF PAWNSHOPS WITHIN THE CITY OF MOUNDS VIEW.
WHEREAS, on January 27, 2003, the Mounds View City Council adopted Interim
Ordinance 709, an emergency interim ordinance regulating the presence and siting of
Pawnshops and related establishments within the City Of Mounds View; and,
WHEREAS, Ordinance 709 directed the Mounds View Planning Commission to
conduct a study of this matter and make recommendations as to the adoption of amended
official controls or regulations to fulfill the City's legal obligation to adequately protect the
public health, safety and welfare of the community; and,
WHEREAS, in response to said direction, the Planning Commission studied this
matter at their meetings on March 5, March 19, April 2 and April 16, 2003; and,
WHEREAS, throughout the process the Planning Commission has encouraged
interested parties to provide comment on the topic; and,
WHEREAS, the Planning Commission reviewed ordinances from neighboring
communities, ordinances from communities in which Pawnshops have already located and
review various sections from the Minnesota State statutes, all of which helped form the basis
for its draft ordinances relating to licensing and zoning requirements for Pawnshops in the
City of Mounds View.
NOW, THEREFORE, BE IT RESOLVED that the Mounds View Planning Commission
recommends approval of amendments to Title 1100 and Title 500 of the Mounds View
Municipal Code respectively represented by draft Ordinances 711 and 712, attached hereto
as Exhibit 1 and 2, respectively.
NOW, THEREFORE, BE IT FURTHER RESOLVED that the Mounds View Planning
Commission recommends the following fees for Pawnshops in Mounds View:
Annual License Fee: $5,000.00
Per Transaction Fee: $1.50
Investigation Fee: $750.00
Operations Bond: $10,000.00
Resolution 724-03
May 7, 2003
Page 2
BE IT FINALLY RESOLVED that the Mounds View Planning Commission directs staff
to forward this resolution and the two draft ordinances to the City Council prior to approval of
the minutes.
Adopted this 7th day of May, 2003.
______________________________________
Gary Stevenson, Chairperson
ATTEST:
______________________________________
James Ericson
Interim City Administrator
(SEAL)
N:\Data\Groups\Comdev\Special Projects\SP-114-03 (Pawn Shops)\724-03, Pawn ordinances.doc
Item No: 5
Meeting Date: June 2, 2003
Type of Business: Worksession
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: James Ericson, Acting City Administrator
Item Title/Subject: City Council Priorities
Introduction:
At recent meetings of the City Council, there has been some discussion regarding individual
priorities of the Council, and at the meeting on May 19, 2003, a list was compiled which is
attached to this report, labeled “City Council Priorities and Concerns – 2003”.
Discussion:
While all of the concerns and priorities listed are worthy, we are probably not able to focus
on all of the issues at the same time or at the same level of attention. Some concerns are
ongoing (such as Code Enforcement) while others are more time sensitive (such as filling the
soon to be vacant space at the community center.) Given the number of vacancies on staff,
the Council may want to focus on a handful of these priorities and direct staff accordingly.
To accomplish this, it might be helpful to rank ALL of the concerns and priorities. To
accomplish this, I made a list of the priorities, removing duplicate or similar entries. Each
priority could be ranked individually from one to five with “1” being low and “5” being high
priority.
Recommendation:
Discuss and direct staff accordingly.
_____________________________________
James Ericson
Interim City Clerk/Administrator
Attachments:
Unranked 2003 Council Priorities
(Rank each priority from one to five, with “1” being low and “5” being high.)
_____ County Highway 10 Redevelopment
_____ Use of Stanton Mean, Frequency of step increases, Salary ranges
_____ Emphasize Code Enforcement
_____ Work with Community Center and the YMCA
_____ Establish sanitary sewer rates based on actual water usage
_____ Attract new businesses to Mounds View (Economic Development)
_____ Explore solutions for golf course money problems
_____ Continue work on the YMCA vs. City run Community Center
_____ Resolve problem of sump pups discharging into sanitary sewer system
_____ Work with strip mall owners to improve appearances
_____ Fill vacancy at the Community Center (Community Ed Space)
_____ Amend Code to support life-cycle housing, upper-end condominiums
_____ Encourage or require single-day garbage pick-up throughout City
_____ Street Improvement Funding, Bonding, Assessment policies
_____ Explore ways to reduce costs in response to reductions in State aids
_____ Amend Code to restrict or prohibit additional fast food drive-thrus
_____ Maintain open Communication between staff, council, residents
_____ Address and Resolve Sound wall Issue
_____ Unified vision for Staff, Council and Commissions; work toward same goals
_____ Amend Code to increase minimum square footage requirements for homes
_____ RCWD project on Golf Course land, spoils for sound wall earthen berm
_____ Creatively maintain services levels under difficult budget constraints.
City Council Priorities and Concerns -- 2003
Sherry Gunn:
1. Redevelopment of County Highway 10 - it seems to have disappeared again!
2. "Creatively" maintaining services to the residents - under tough budget constraints.
3. Attracting new businesses to Mounds View
4. Getting owners of the strip malls to update malls' appearances
5. Keeping lines of communication open and working smoothly between staff and council.
6. Continue work on the YMCA vs. City run Community Center.
7. Road repair - assessment policy Budget - once we know how the cutbacks actually affect us
8. Bring the commissions, council and staff together to improve communication and make
sure we are all working towards the same goals.
Roger Stigney:
1. Use of Stanton mean to establish salaries & Frequency of employee raises
2. Explore solutions for golf course money problems
3. Fill vacancy at the Community Center (Community Ed Space)
4. Explore ways to reduce costs in response to proposed reductions in LGA
5. Street improvement funding
6. Establish sanitary sewer rates based on actual water usage
Gary Quick:
1. Code revisions to (1) restrict or prohibit additional fast food drive-thrus, (2) support life-
cycle housing, construction of upper-end condominiums, and (3) increase minimum square
footage requirements for a single-family dwelling
2. Emphasize code enforcement (junk vehicles, etc.)
3. Encourage or require single-day garbage pick-up throughout City
4. Address and Resolve Sound wall Issue
5. Resolve problem of sump pups discharging into sanitary sewer system
Rob Marty:
1. Pay increases, salaries and ranges
2. Resolve problem of sump pups discharging into sanitary sewer system
3. County Highway 10 Redevelopment
4. Street Improvements, Funding, Bonding, Assessment policies
5. Compute sanitary sewer rates based on usage
6. RCWD project on Golf Course land, spoils for Sound wall earthen berm
Jerry Linke:
1. Code Enforcement
2. Work with Community Center and the YMCA
3. Open Communication between staff, council, residents
4. Resolve problem of sump pups discharging into sanitary sewer system.
C:\Documents and Settings\JimE\Favorites\City Council Stuff\2003 Priorities.doc
Item No: 6
Meeting Date: June 2, 2003
Type of Business: Worksession
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: James Ericson, Acting City Administrator
Item Title/Subject: Review of Legal Services Responses to RFP
Introduction:
I have concluded my review and assessment of the City Attorney proposals and would like to
share with you my findings and to identify those firms considered to be candidates for
interview. While all of you have had the responses for a few weeks, you may not have
reviewed the proposals to the extent and depth that I did, and for that reason I have provided
you with some summary tables and documentation which I used to help identify those firms
to interview.
Summary:
Thirteen firms responded to the RFP, ten of which submitted proposals to provide the City
with civil representation. Two firms (Frank Madden & Associates and Krass Monroe) offered
to provide only a subset of services and were not considered. Three of the ten forms also
offered to provide the City with prosecution services while a fourth firm, Hughes & Costello,
offered only to provide prosecution services.
Selection Criteria:
My assessment of the firms was based on a number of factors, such as experience, firm
depth, cost of services and retainer amount. As you can see from the table entitled
“Services Covered under Retainer Agreement” most of the firms are similar in what is
covered under the retainer. Some include more than others, however most indicate that
general legal issues are covered while financing, litigation and other defense or
representation would be outside the scope of the retainer.
Because the proposed services covered under the retainer were similar, I ranked firms in
order of the cost of the annual retainer, followed by depth of firm and then the overall
presentation of their proposal. Through this ranking effort, I have identified four firms to
interview—Kelly & Fawcett, Winthrop & Weinstine, Barna Guzy & Steffen, and Halleland
Lewis Nilan Sipkins & Johnson.
Interviews:
Assuming the Council raises no objections, I would like to schedule interviews with the firms
either later this week or early in the following week. Greg Lee, Mike Sommer, Charlie
Hansen and I will make up the interview panel. If a council member would like to take part in
the interviews, either as a passive observer or an active participant, simply let me know. I
imagine that the interviews could be accomplished in a single day with a block of time in the
morning and a block in the afternoon.
Legal Service RFP Memo
June 2, 2003
Page 2
Firm Retainer
Amount
Depth of Firm Depth of
Response
Kelly & Fawcett $2,800 Low (7) Adequate
Winthrop & Weinstine $2,900 High (70) Adequate
Barna, Guzy & Steffen $3,000 High (26) High
Halleland Lewis Nilan $4,800 High (50) High
Knaak & Kantrude $5,500 Low (5) Adequate
Jenson Bell Converse $3,000 Medium (10) Low
Kennedy & Graven $3,000 High (26) High
Newquist & Ekstrum $2,800 Low (5) Low
Campbell & Knutson $8,500 Medium (10) High
Ratwick Roszak & Maloney $16,000 High (21) High
Firms not Selected for Interview:
Six firms, beginning with Knaak & Kantrude in the table above, were not selected for
interview. While most submitted good responses, some were simply too expensive to
realistically consider. Other firms, such as Knaak & Kantrude and Newquist & Ekstrum,
lacked a sufficient depth and base of experience. Some of the proposals themselves were
lacking in depth and detail, which was a drawback in the case of Jenson Bell Converse.
Last, in the case of Kennedy & Graven, while they have provided legal services to the City
of Mounds View for many years, department heads and city administrators past and present
have expressed frustration with the level of responsiveness exhibited by the city attorney.
For that and other reasons, Kennedy & Graven was not selected for an interview.
Prosecution Services:
Chief Sommer and I reviewed the responses for prosecution services and it is our
recommendation to continue with the firm of Hughes and Costello under the terms they
propose.
Conclusion
At a minimum, please review the information I have provided and let me know if anything
appears out of order. If you have had the time to review the individual proposals in depth
and have specific comments, I would be happy to discuss the proposal in greater detail.
After the panel interviews the four selected firms, we will rank the firms and present the
rankings to the City Council with a recommendation and resolution to appoint a firm to
provide civil legal services to the City of Mounds View.
__________________________________
Jim Ericson, Interim City Administrator
C:\Documents and Settings\JimE\Favorites\Admin\Legal RFPs\Staff Memo - May 28, 2003.doc
Mounds View Legal Services Request for Proposals
Responder Information
Page 1
Firm Info Lead Attorney Civil or
Prosecution
Other Cities
Represented
Retainer
Fee
Per hour
Rates
NEWQUIST & EKSTRUM, CHARTERED
Suite 301, Fridley Plaza Office Building
6401 University Avenue NE
Fridley, MN 55432-4381
763-571-6870 (Phone)
763-571-6884 (Fax)
Gregg V. Herrick
Civil
Prosecution for Hilltop
& Fridley, Civil for
Hilltop
$2,800
$95.00
$40.00
KELLY & FAWCETT, P.A.
2350 US Bancorp Piper Jaffray Plaza
444 Cedar Street
Saint Paul, MN 55101
651-224-3781 (Phone)
651-223-8019
Patrick J. Kelly
Sarah J. Sonsalla
Civil
Maplewood, Taylors
Falls, White Bear
Township
$2,800
$120.00
$50.00
CAMPBELL KNUTSON, P.A.
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, MN 55121
651-452-5000
Joel Jamnik
Tom Scott
Elliot Knetsch
Gina Brandt
Civil
Prosecuting
Farmington, Lindstrom,
Mora, Braham, Elko,
Zimmerman, St. Louis
Park, Stillwater Twsp.
$8,500
$90 /hr
$125.00
$110.00
$65.00
KNAAK & KANTRUDE, P.A.
3500 Willow Lake Blvd, Suite 800
Vadnais Heights, MN 55110
651- 490-9078 (Phone)
651-490-1580 (fax)
Fritz Knaak
Civil
Prosecuting
Fridley, Newport
$5,500
$6,000
$90.00
Mounds View Legal Services Request for Proposals
Responder Information
Page 2
Firm Info Lead Attorney Civil or
Prosecution
Other Cities
Represented
Retainer
Fee
Per hour
Rates
WINTHROP & WEINSTINE, P.A.
300 Dain Rauscher Plaza
60 South Sixth Street
Minneapolis, MN 55402-4430
612-347-0700 (Phone)
612-347-0600 (fax)
Mike Hatting
Civil
Mendota Heights
$2,900
$165
KENNEDY & GRAVEN, CHARTERED
470 Pillsbury Center
200 South Sixth Street
Minneapolis, MN 55402
612-337-9260 (Phone)
612-337-9310 (Fax)
Scott Riggs
Bob Vose
Civil
New Brighton and
many others
$3,000
$120
HALLELAND LEWIS NILAN SIPKINS & JOHNSON
600 Pillsbury Center South
220 South Sixth Street
Minneapolis, MN 55402
612-338-1838 (Phone)
612-338-7858 (Fax)
Suesan Lea Pace
Joe Schmitt
Civil
Prior Lake
$4,800
$145.00
FRANK MADDEN & ASSOCIATES
505 North Highway 169, Suite 505
Plymouth, MN 55441-6444
763-545-2525 (Phone)
763-545-2866 (Fax)
Frank Madden
Pam Galanter
Civil, limited
to labor and
employment
law
Blaine & others
$400
$105.00
to
$130.00
Mounds View Legal Services Request for Proposals
Responder Information
Page 3
BARNA, GUZY & STEFFEN, LTD.
400 Northtown Financial Plaza
200 Coon Rapids Boulevard
Coon Rapids, MN 55433
763-780-8500 (Phone)
Scott Lepak
Jim Hoeft
Jim Hoeft
Darrell Jensen
Civil
Prosecuting
Centerville, St. Francis
Columbia Heights
$3,000
$145.00
$125.00
$65.00
RATWIK, ROSZAK & MALONEY, P.A.
300 U.S. Trust Building
730 Second Avenue South
Minneapolis, MN 55402
612-339-0060 (Phone)
Jay T. Squires
Scott Anderson
M. Waldspurger
Civil
Roseville, Red Wing,
Eagan,
$16,000
$125.00
$115.00
$65.00
JENSON, BELL, CONVERSE & ERICKSON, P.A.
1500 Minnesota World Trade Center
30 East Seventh Street
St. Paul, MN 55101
651-223-4999
Roger A. Jensen
Mitchell
Converse
Civil
Vadnais Heights
White Bear Lake
Average
of last 12
months
$155.00
$85.00
HUGHES & COSTELLO
1230 Landmark Towers
345 St. Peter Street
St. Paul, MN 55102-1216
651-227-8427 (Phone)
651-227-8428 (Fax)
Tom Hughes
Prosecuting Mounds View
New Brighton
Falcon Heights
Lauderdale
Mendota Heights
Richfield
$3,875 in
2004,
$4,000 in
2005
KRASS MONROE, P.A.
Suite 1100 Southpoint Office Center
1650 West 82nd Street
Minneapolis, MN 55431-1447
952-885-5999 (Phone)
They are only
interested in
Bond, Public
Finance, TIF
Have worked with
cities of Arden Hills,
New Brighton &
Roseville
Services Covered under Retainer Agreement
Page 1
Newquist Kelly Campbell Knaak Winthrop Kennedy Halleland Barna Ratwik Jensen Attend City Council meetings X X X X X X X (1) X X X
Draft and review ordinances, resolutions, and
correspondence
X (1) X X X X X X X X X
Review City Council agendas and meeting minutes X X X X X X X
Advise the Mayor, Council Members and staff on city
legal matters
X X X X X X X X X X
Prepare / review contracts and joint powers of
agreements
X X (1) X X X (1)
Codification of City ordinances on a regular basis X X
Represent City in matters related to the enforcement of
building and zoning codes
X X X
Research and submit legal opinions X X X X X X X X X
Meet with the Council and Staff as needed to review
agenda items and status of all legal matters
X X X X X X X X
Provide legal briefs regarding new or proposed
legislation affecting municipal operations
X X X X X X X X
Provide written update on new State or Federal
legislation or judicial decisions impacting the City and
suggested action or changes in operations or procedures
to assure compliance
X X X X X X X X
Provide advice on open meeting law, data practice,
records retention and privacy issues
X X X X X X
Services Covered under Retainer Agreement
Page 2
Newquist Kelly Campbell Knaak Winthrop Kennedy Halleland Barna Ratwik Jensen Represent City in employment issues, labor negotiations,
Civil Service Commission, arbitration, administrative
hearings and in litigation involving same
Interpret and advise with respect to municipal
employment matters including, but not limited to, PERA,
labor agreements, personnel policy, FLSA, Veterans’
Preference, and unemployment compensation
X X X X
Defend City in litigation including human rights claims;
condemnation; permits and administrative actions; and
labor and employment matters
X
Defend City in uninsured claims and other insurance
matters
Review of financing, special assessments, bonds and
insurance requirements required by or for City
X (2) X X
Represent City in the acquisition of properties for public
improvements, easements, and parks
Represent City in condemnation proceedings for public
improvement projects
X
Represent City in workers’ compensation matters X
Initiate litigation on behalf of City as requested by City
Council
Services Covered under Retainer Agreement
Page 3
Newquist Kelly Campbell Knaak Winthrop Kennedy Halleland Barna Ratwik Jensen Interpret and advise regarding State land use statutes
and City Code
X X X X
Interpret and advise regarding laws relating to
Comprehensive Plans and Metropolitan Council
approvals
X X X X
Interpret and advise regarding impact fees and legal
uses
X X X X
Advise and represent the City on environmental matters X
Prepare and review conditional use permits, variances,
PUDs, subdivisions, development agreements
X X
Possess an adequate knowledge of TIF laws and
understand their application.
X X X
Prepare deeds, easements and other documents for recording
(Knaak & Kantrude)
X
Review documents submitted by Bond counsel involving debt
related instruments and provide opinions (Knaak)
X
Services Covered under Retainer Agreement
Page 4
Knaak & Kantrude Notes:
(1) Proposal indicates only review, not prepare and review
(2) Proposal excludes review of financing and special assessments
Winthrop & Weinstine Notes:
(1) All general legal issues covered under retainer. Issues arising from an application, litigation and all municipal representation
outside of retainer.
Ratwick Roszak Notes:
(1) Proposal indicates only review, not prepare and review
Halleland Lewis Notes:
(1) Retainer is a capped monthly amount of $6,000. This covers everything EXCEPT finance and bond work, litigation or
contested case administrative proceedings, arbitrations, discrimination claims, site-specific environmental issues, commission
and authority work, recodifications and pass through legal fees.
Newquist & Ekstrom Notes:
(1) This includes only MINOR ordinance revisions, everything else is review only.
Services Covered under Retainer Agreement
Page 5
(1) Campbell Knutson retainer does not include litigation, defense or representation
(2) Barna Guzy proposes a retainer equal to average of last three years billings ($3,000)
(3) Jenson Bell proposes a monthly retainer equal to 1/12 of the previous year’s civil billings
Lead
Attorney
Hourly
Fee
Retainer
Amount
Out of
Pocket
Expenses
Minimum
Time
Increment
billed
Firm
Depth
Municipal
Experience
of firm and
attorney
Municipal
Billings as a
% of total firm
billings
Year Firm
was
Founded
Newquist $125 $2,800 Unknown Unknown Low (5) Medium 50% 1986
Kelly $120 $2,800 Copies: .30
Fax: $1 / pg
All else at cost
.25 of an hour
(15 minutes)
Low (7) High 21% Unknown
Campbell $125 $8,500
(1)
Copies: .20
Postage > .50 &
all else, at cost
.20 of an hour
(12 minutes)
Medium (10) High 80% 1986
Knaak $90 $5,500
< 500 copies, <
$25 in LD = no
cost
.10 of an hour
(6 minutes)
Low (5) High 65% 2002
Winthrop $165 $2,900 Copies: .15
LD: .11
.10 of an hour
(6 minutes)
High (70) Medium, low Less than 1% 1979
Kennedy $120 $3,000 Copies: .20
Fax: .50 / pg
All else at cost
.10 of an hour
(6 minutes)
High (26) High 1958
Halleland 145 $6,000 At cost .10 of an hour High (50) High Unknown 1996
Barna $145 (2) Copies: NC
LD at cost
.20 of an hour
(12 minutes)
High (26) High 6% 1939
Ratwick $125 $16,000 Unknown Unknown High (21) Medium 93% 1987
Jensen $155 (3) Copies: .20 .10 of an hour Medium (10) High 25% 1962
Criminal Prosecution Services
The following firms have submitted prosecution services proposals:
Firm Fees Other Information
Barna, Guzy & Steffen, Ltd. Retainer amount equal to the average of the previous
three years prosecution billings
Experienced, however not currently
representing Ramsey County
municipalities
Hughes & Costello $3,875 Has provided services to Mounds View
since 1994. Also represents City of New
Brighton
Knaak & Kantrude $6,000 Currently represents city of Newport
Campbell & Knutson $90 per hour Experienced, however not currently
representing Ramsey County
municipalities