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HomeMy WebLinkAboutPL PACKET 10152002 Meeting Sheet IIIIIIVIIIVIIIVIIIVIIIVIIIIIIIIIII 102890 Box: 27 Folder: PL PACKETS 2000-2004 Document: PL PACKET 10152002 CITY OF ST. ANTHONY PLANNING COMMISSION MEETING AGENDA OCTOBER 15, 2002 7 p.m., Council Chambers 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. PUBLIC INPUT Individuals may address the Planning Commission about any item not included on the regular agenda. Speakers are requested to come to the podium, state their name and address for the Clerk's record, and limit their remarks to five minutes. 5. APPROVAL OF AGENDA 6. MEETING MINUTES 6.1 Review and Approve Planning Commission Minutes of August 20, 2002 7. COMMUNICATION FROM CITY COUNCIL 7.1 Designate a Planning Commission Member to the October 22, 2002 City Council Meeting 8. PUBLIC HEARINGS 8.1 Business Data Record Services/Belair Excavating, 3015 37th Ave NE: (1) a building height variance of 9 feet; and (2) a side yard variance of 35 feet 9. INFORMATION AND DISCUSSION 9.1 Discuss Ordinance/Moratorium for Second Hand Goods Dealers Licenses 9.2 Northwest Quadrant Redevelopment Update 10. ANNOUNCEMENTS 11. ADJOURNMENT ATTENTION PLANNING COMMISSION MEMBERS: IF YOU ARE UNABLE TO ATTEND THE MEETING, PLEASE CONTACT SUSAN HALL AT 612-706-1324. 1 CITY OF ST. ANTHONY 2 3 - PLANNING COMMISSION MEETING 4 5 AUGUST 20, 2002 6 7:00 p.m. 7 8 9 I. CALL TO ORDER. 10 Chair Melsha called the meeting to order at 7:00 p.m. 11 12 II. PLEDGE OF ALLEGIANCE. 13 Chair Melsha invited the Commission and the audience to join in the Pledge of Allegiance. 14 15 III. ROLL CALL. 16 Commissioners present: Chair Melsha; Vice Chair Stille, Commissioners Hanson, 17 Hoska, Steeves, Thomas, and Tillman. 18 19 Absent: None. 20 21 Also present: Assistant City Manager Susan Hall. 22 23 24 IV. PUBLIC INPUT. 25 Hearing no comments, Chair Melsha moved forward with the agenda. 26 27 V. APPROVAL OF AGENDA. 28 Motion by Chair Melsha, second by Commissioner Hanson, to approve the meeting agenda as 29 presented. 30 31 Motion carried unanimously. 32 33 VI. MEETING MINUTES. 34 6.1 Review and Approve of the Planning Commission meeting minutes of July 16, 2002 35 Motion by Commissioner Thomas, second by Commissioner Steeves, to approve the 36 Planning Commission meeting minutes of July 16, 2002. 37 38 Motion carried unanimously. 39 40 VII. COMMUNICATION WITH CITY COUNCIL. 41 7.1 Designate a Planning Commission member to the City Council regular meeting of 42 August 27, 2002. 43 Chair Melsha indicated that he is available to attend the next City Council meeting on 44 August 27, 2002. 45 46 VIII. INFORMATION AND DISCUSSION. 47 8.1 Review preliminary site plan for Business Data Record Services, 3015 37"' Avenue 48 NE. Page 2 1 Susan Hall presented the preliminary plans for Business Data Record Services at 2 3015 37th Avenue NE. She noted that their plans call for demolition of four existing 3 buildings and construction of a new 40,000 s.f. building. Although not marked on the 4 preliminary site plan, the applicants may need a variance as they have mentioned a 5 building height of 43-44 feet. Maximum building height in a Light Industrial zoning 6 district is 35 feet. A good example of what this will look like is Business_.Data Record 7 Services, which was recently constructed at 200 Old Highway 8 in New Brighton. That 8 building stands 42 feet in height. Mr. Cloutier stated his electronic storage business is 9 growing and hence the need for more space. 10 11 Hall said that the City Engineer has asked that drainage be addressed so that the runoff 12 from the site goes to a water retention pond. A new retention pond is shown on the 13 preliminary site plan. 14 15 Mark Murlowski, Chief Executive with Belair Excavating, reviewed a history of this 16 property and stated they would like feedback from the Planning Commission and 17 recommendations to proceed with the next step. He explained they are an affiliate of 18 Berger Transfer, the original and current owner of the property, and the largest Allied 19 agent for household and commercial goods in the nation. Their headquarters is in St. 20 Anthony and they have several other sites as well. The St. Anthony facility was built in 21 the late 1950s, early 1960s, and after that several additions have occurred. 22 23 Jim White, architect for the project, stated they have completed preliminary planning of 24 this site. He reviewed the uses and buildings that surround this site and stated the project 25 would involve the demolition of four single-story buildings (one being a walkout). He 26 stated Business Data Record Services has gradually been improving the appearance and 27 life/safety issues at the site. He reviewed several of those improvements which included 28 sprinkling the building and improving energy efficiency. 29 30 Mr. White noted the footprint of the new building, which would replace a 40-year-old 31 non-sprinkled building with a sprinkled, precast, maintenance-free building. He 32 displayed a picture of the building and photographs were handed out and reviewed by the 33 Planning Commissioners. 34 35 Mr. White stated the civil engineer has found the watershed criteria can be met and 36 preliminary discussions with them have occurred. He stated from grade to parapet it is 37 42 to 44 feet in height with the first four feet giving the truck dock height. Since the site 38 slopes from the south down 20 feet towards the railroad tracks on the north, the impact of 39 the building height from County Road D is minimal, probably four to six feet higher than 40 the current highest building on the site. Also, there is a small auto shop to the west that is 41 slightly higher than their highest building so this may be about the same height as that 42 building. 43 44 Mr. White stated the benefits to St. Anthony are to improve overall appearance, 45 maintenance free materials, upgrading fire protection and energy efficiency, they expect 46 vehicle traffic will be dramatically reduced on Macalester Drive, and providing a new 47 detention pond to control run off. He stated they are requesting variances so they can Page 3 1 proceed and requested input from the Planning Commission. 2 3 Chair Melsha asked how much taller this building will be than those being removed. Mr. 4 White stated the buildings being demolished are about 25 feet in height. 5 6 Chair Melsha asked if the setback requirement is being met. Mr. Murlowski stated the 7 proposed setback allow this building to line up with the recently finished vault building 8 at five feet from Macalester Drive and County Road D. 9 10 Chair Melsha asked if that building needed a variance when it was constructed in 1972. 11 Mr. Murlowski stated it did not. Mr. White stated that building was upgraded about two 12 years ago and a variance was not required at that time since the building footprint was 13 not changed. 14 15 Chair Melsha explained the need to show a hardship in order to receive a variance. He 16 asked if there is a unique feature that would result in a hardship consideration. 17 18 Mr. White stated it will consolidate the business operation and provide space for storage 19 and aisles. 20 21 Mr. Murlowski stated the operation is media and record storage as well as fine arts 22 storage. Thus the layout is very important to maximize the volume that can be stored. 23 24 Chair Melsha explained that both variance requests need to meet that finding as well as to 25 maintain the characteristics of the neighborhood, which don't appear to be impacted due 26 to the building height. He asked if there can be a reasonable use of this property without 27 the variance. 28 29 Thomas stated if the 35-foot setback from Macalester Drive was required, there would 30 not be enough room for parking and the truck turning radius He noted there are 50 31 parking spaces and asked if that is for employees or visitors. 32 33 Mr. White stated there are 40 parking spaces, primarily for employees since there are few 34 visitors to this site. He stated that is adequate parking for their needs. 35 36 Hall stated that level of parking complies with the City's requirements for this type of 37 facility. 38 39 Chair Melsha asked what would happen to the feasibility of the project should the 40 buildings be required to comply with the Macalester Drive setback. 41 Mr. Murlowski stated they don't know for sure but do know they could not make a 42 proposal with a setback at 25 to 30 feet since the building would not contain enough 43 storage. 44 45 Vice Chair Stille asked what kind of inside improvements are being made. Mr. 46 Murlowski stated the buildings have steel rack storage, portions are climate 47 controlled (heated/cooled/moisture condition), and two dock areas for straight trucks Page 4 1 are being proposed. He explained there are high bay lighting, gas fired unit heaters, 2 and very wide aisles. For this user, the rack storage system works very well. 3 4 Vice Chair Stille stated he visited the site and did not notice a retention pond. Mr. 5 White stated that would be added as part of the project. 6 7 Vice Chair Stille asked if there will be a common wall. Mr. White stated that is 8 correct and two buildings would be joined with a common wall. 9 10 Vice Chair Stille addressed the issue of finding a hardship and asked the applicant to 11 provide information about the characteristics of this site that would make it unique. 12 13 Steeves recommended they obtain an application form from City staff so they can 14 begin to work on those issues. 15 16 Mr. White noted the pie-shaped corner, which restricts the area to the north. 17 18 Thomas asked if there will be vegetation around the retainage ponds. Mr. Murlowski 19 stated there is not much space but they will be presenting a landscaping plan that 20 provides some plantings. Mr. White noted that area will also be fenced off. 21 22 Chair Melsha thanked the applicants for providing this information in advance. 23 24 Mr. Murlowski stated they also appreciate the opportunity to present these 25 preliminary plans and will submit a formal application for the September Planning 26 Commission meeting. 27 28 8.2 Review ' survey information and make recommendation to City Council re: 29 amendment to City ordinance relating to the definition of`garage" and "accessga 30 building" and to regulate the size of garages in relation to the floor area ration 31 (FAR) in residential districts. 32 Susan Hall explained this is continuation of a discussion regarding the amendment 33 relating to the definition of"garage" and "accessory building" and to regulate the size of 34 garages in relation to the floor area ratio (FAR) in residential districts. City staff has 35 researched area metropolitan municipalities, with the help of e-mail, on the subject and 36 provided that report for the Commission's review. 37 38 Hall explained the issues she researched and stated that staff found cities handle the 39 "mass" issue in a number of ways. A couple of cities contacted use FAR, like St. 40 Anthony. Arden Hills has a FAR of 30%; Roseville has a 30% FAR in R-1 and 40% 41 FAR in R-2. Most cities contacted do not have FAR, but rather use lot coverage, 42 setbacks, height, maximum garage square footages, to regulate building size. Lot 43 coverage of 25-35% and building height of 25-30 feet are common among the cities 44 surveyed. Some cities surveyed have gone through a similar dialogue as St. Anthony. 45 Hall explained that generally, it was found that most cities limit the size of accessory 46 buildings and garages in some way. 47 Page 5 1 Chair Melsha thanked Ms. Hall for her work to research these issues. He noted that St. 2 Anthony does not limit the size of detached accessory buildings except by setback and 3 FAR. 4 5 Thomas asked if the Council received a recommendation from Dahlgren Shardlow Uban 6 (DSU). 7 8 Hoska stated the Council wanted to go from the DSU ideas and asked the Planning 9 Commission to review staff research information so an informed recommendation could 10 be made. He advised that the Mayor also mentioned the information provided by the 11 League of Minnesota Cities. Hoska thanked Ms. Hall for her work as well. 12 13 Hall reviewed how she conducted this research and stated she can do additional research 14 if so directed. 15 16 Chair Melsha stated it seems there are two issues to address: 1) does FAR need to be 17 adjusted; and, 2) should St. Anthony have a design review board. He suggested the 18 Planning Commission come to a recommendation on whether the proposed ordinance 19 should be amended and if there is interest to research whether a design review board 20 should be formed in the future. Chair Melsha suggested the issue of the design review 21 board not delay the third reading of the ordinance. 22 23 Vice Chair Stille concurred and suggested that a subcommittee be established to address 24 the issues related to a design review board. He noted the amendment to the ordinance is 25 due to the ambiguity in the way the current ordinance is written. He stated he does not 26 know if the FAR is right but it at least corrects the issue of the ordinance not being clear. 27 Vice Chair Stille noted he and Hanson have been on the Planning Commission for four 28 years and this is the first time this issue has been raised. 29 30 Chair Melsha agreed this is not an epidemic and the Planning Commission needs to keep 31 the focus on the issue. 32 33 Vice Chair Stille stated he supports recommending the Council move forward with the 34 third reading. 35 36 Chair Melsha stated garages of up to 1,000 square feet are now going to be excluded in 37 the FAR whether attached or detached. If over that size, it would be included in the FAR 38 calculation. 39 40 Tillman noted that the FAR will limit the amount of second-story space and commented 41 on the impact to the floor area ratio. 42 Thomas stated a speaker at the last meeting made a good point that if you exclude living 43 space above an attached garage, it allows people to build a saltbox on top of their garage, 44 which may not be very aesthetically pleasing or acceptable to the neighbors. He stated he 45 supports allowing living space above attached garages and attics to allow homeowners 46 the ability to increase their living space without having to move, consider demolishing 47 the home, or covering more of the lot. He agreed with the need for further study since it Page 6 1 could be more sophisticated and address smaller lot uses without penalizing them since 2 they may have reached their maximum floor ratio. 3 4 Chair Melsha asked the Planning Commissioners whether they are comfortable with 5 recommending the Council move forward with third reading. 6 7 Thomas asked if the current proposal excludes living spaces above garages. 8 9 Chair Melsha explained that garages of up to 1,000 square feet are now going to be 10 excluded in the FAR whether attached or detached. If over that size, it would be included 11 in the FAR calculation. 12 13 Hall stated it will add more square footage to the FAR. 14 15 Thomas stated the Council minutes mention language recommended by the Building 16 Inspector. Hall stated she has not seen that language. 17 18 Chair Melsha noted the proposed language is not inconsistent with what other cities are 19 doing. 20 21 Hall stated if this is approved, the Brama case would be conforming. She advised that 22 building permit is on hold until the ordinance readings are completed and the ordinance 23 approved. 24 25 .Tillman stated she agrees with recommending the Council move ahead with the third 26 reading since having to count detached but not attached square footage does not seem to 27 be fair. 28 29 Chair Melsha stated he would also be comfortable with recommending the City Council 30 approve third reading with no other changes to the ordinance. 31 32 Thomas stated he would not mind seeing the recommendation of the Building Inspector. 33 Hall stated the Building Inspector did not want to see any changes made to the existing 34 language. 35 36 Tillman stated the current regulation, as written, is not very clear. 37 38 Chair Melsha stated it appears to be the consensus of the Planning Commission to 39 recommend the City Council move forward with third reading of the ordinance with no 40 further amendment. 41 42 Chair Melsha next addressed the issue of further study of a design review board. He 43 stated that he would support forming a subcommittee to address that issue. 44 45 Tillman stated that it makes her nervous to consider having a design review board since it 46 is very difficult to regulate "taste" and while some may think the appearance is pleasing, Page 7 1 another may not. She stated that the regulations must be "black and white" so it is easily 2 understood if the proposal meets or does not meet the Code. 3 4 Steeves stated in the City of Minneapolis, a 45-day neighborhood review period is 5 required. He explained that often times staff attends the meetings and sees neighbors 6 trying to redesign the applicant's house on the spot. He commented on the problems that 7 can occur with a neighborhood review board. 8 9 Thomas noted that St. Anthony is made up of a whole array of housing styles and 10 different neighborhoods. He suggested that if someone tried to tear down one of the 11 tudors on St. Anthony Parkway, there would be objections from the neighborhood. He 12 noted that while he agrees it can get picky, neighborhood input may be considered the 13 price of democracy. 14 15 Steeves stated the difference comes when someone acquires and develops the lot 16 privately. Then to bring in a design review process seems to him to be somewhat 17 onerous or an exercise that is probably less than productive if not a requirement and just 18 a suggestion. - 19 20 Tillman stated there are also market pressures that come to bear since it is not good to 21 have the largest and best house in the neighborhood since it sometimes does not retain its 22 value. 23 24 Vice Chair Stille suggested the Planning Commission further study the information 25 provided by staff and discuss whether this process would be applicable in St. Anthony. 26 He noted the design review process may be an avenue to protect some of the 27 neighborhoods in St. Anthony. 28 29 Chair Melsha stated he is not at the point where he is comfortable telling a private 30 homeowner how their house should look and, perhaps, the recommendation to the City 31 Council should be to gather information about the process for review and discussion at 32 the next meeting about whether the Council should take that process further. He stated 33 the Council's meeting minutes do not make clear whether the Council supports the 34 formation of a design review board. 35 36 Thomas stated he thinks there is value in encouraging someone who is renovating a 37 property to talk to their neighbors to get their input. He noted that large renovation 38 projects can impact sunlight or be imposing to adjacent buildings. He stated he would 39 urge them to talk to their neighbors prior to a substantial rehab that impacts other 40 property values. 41 42 Chair Melsha concurred that would be the neighborly thing to do. 43 Planning Commission consensus was reached to further research a design review board 44 process. 45 46 8.3 Northwest Quadrant/Apache Redevelopment Update. Page 8 1 Susan Hall reviewed the report from Jim Prosser to update the City on what is happening 2 with the Apache redevelopment project. She stated this report is also posted on the City's 3 website. Hall advised they are identifying revenues sources and land activities. She 4 stated that there will be another public involvement process later in the year and work has 5 started on design guidelines. Hall stated she has heard they want to start this project in 6 2003 but to meet that timeline, the process needs to start in October or November of 7 2002. 8 9 Chair Melsha asked if Culvers Restaurant has purchased the Exhaust Pros property. Hall 10 stated they have not yet reached a purchase agreement but are still working on it. She 11 stated she has not seen final plans from Culvers. 12 13 IX. ANNOUNCEMENTS. 14 Commissioner Hanson advised that on September 14th, the St. Anthony Shopping Center 15 and Hitching Post area businesses will be having a Villager Appreciation Day from 10 a.m. 16 to 5 p.m. He advised of the activities that will take place. Hanson reviewed the 17 improvements and landscaping that has occurred to improve the appearance and reported 18 that a hair cutting business will be opening shortly. 19 20 Chair Melsha -noted the information included in the meeting packet about the forum on first 21 ring suburbs scheduled for Monday, September 9, in Richfield. He stated he will attend that 22 symposium by Myron Orfield. 23 24 X. ADJOURNMENT. 25 Motion by Commissioner Thomas, second by Commissioner Steeves, to adjourn the meeting 26 at 7:58 p.m. 27 28 Motion carried unanimously. 29 30 Respectfully submitted, 31 32 Carla Wirth 33 Timesaver Off Site Secretarial, Inc. 34 MEMORANDUM DATE: 10/8/02 MEETING DATE: 10/15/02 TO: Chair Melsha & Planning Commission Members FROM: Susan M.H. Hall, Assistant City Manager SUBJECT: Public Hearing for Business Data Record Services Expansion Requested Action: A public hearing will be held on October 15 for Business Data Record Services demolition and expansion plans at 3015 37th Avenue Northeast. The final submitted site plan shows demolition of four existing buildings and construction of a new 40,000 square feet building. Notification has been sent to the property owners within 350 feet of the proposed development. Mr. Murlowski of Belair Excavating is representing Business Data Record Services for two variance requests: 1) A building height variance of 9 feet for a proposed 44 feet building height; and 2) A side yard variance request of 35 feet (along Macalester Drive) for a proposed 5 feet side yard adjacent to a street. Background: Mr. Murlowski met with the Planning Commission on August 20 for a concept review of preliminary site plans. The applicants are now submitting their final plans and are asking for two variances. First, a variance for building height of 44 feet is proposed. According to city ordinance, maximum building height in a Light Industrial zoning district is 35 feet, which makes this a variance request of 9 feet. Fire Chief Joel Hewitt has reviewed the proposed plans and stated the height will be okay because of the mutual aid agreement. A good example of what this height will look like is at another nearby Business Data Record Services site at 200 Old Highway 8 in New Brighton. That building stands 42 feet in height. The second variance request is for the side yard setback. The side yard is considered Macalester Drive. The applicants are requesting a side yard setback of 5 feet. City ordinance states a side yard adjacent to a street must be at least 40 feet, which makes this a variance request of 35 feet. Although the proposed side yard setback won't make the building stick out any more than the existing building, it would be on the curb line. Public Works Director Jay Hartman has reviewed the existing an proposed setbacks and said for snow removal there will still be plenty of room in the right of way to stock pile snow. Still, he noted, this is a substantial variance request. Per the applicants, the existing side yard setback at Macalester Drive is 5 feet at the south building and 30 feet at the north building. The existing front yard setback at 37th (County Road D) is 20 feet, the existing side yard at the Xcel substation varies from 2 feet to 0 feet. Finally, the existing rear yard setback at the railroad varies from 3 feet to 1 foot, 6 inches. The property and easement lines are 50 feet from the railroad centerline. The city engineer reviewed and approved the drainage plans. The runoff from the site will go to a new water retention pond shown on the site plan. Parking is adequate at the site, per city ordinance, because this is a warehousing facility which requires the facility must have at least one space per employee on the largest shift plus one parking space per company vehicle. There are 40 parking stalls shown on the site plan, which will.be enough spots for employees per Mr. Murlowski. Attachments: • Final Site Plan • Survey - - - - - ----------- --- - - - - ------------- - - - - - -----.-•-•- ........................................................ ........... % EXISTING BUILDING EXISTING BUILDING EXISTING BUILDING EXISTING BUILDING TO REMAIN TO REMAIN %A TO REMAIN TO REMAIN f A < 'rA EXISTING a cc ---—-—-----—----- BUILDING TO BE DEMOLISHED x 0 ..... ....... . ...... . z 0 Z) 0 so u Z a I L7- EXISTING BUILDING TO BE DEMOLISHED EXISTING BUILDING m 0 TO REMAIN Z b, ............. MACALASTER DRIVE Z O Z! V) u- 21 SITE PLAN IS BASED ON SURVEY BY z 0 < Z: JAMES M.HALVERSON DATED 1/20/1960 C) North 0 Z Lu cc . 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Hall, Assistant City Managerd� SUBJECT: Second Hand Goods Dealers Ordinance/Moratorium Requested Action: The City Council is asking the Planning Commission for a recommendation on a revised Second Hand Goods Dealers ordinance and a new ordinance regulating pawn shops in St. Anthony while a moratorium has been placed on issuance of any aforementioned licenses. Background: It has come to staffs attention that the ordinance for the second hand goods dealers license is in need of updating. In St. Anthony's ordinance, pawn shops fall under the second hand goods dealers' section. In doing some research on the subject, city staff has learned it will be necessary to have a separate pawn shop ordinance to address separate concerns arising from this type of business. Today there are requirements for pawn shops that are not addressed in the City's ordinance. On October 8, 2002, the St. Anthony City Council approved the moratorium for second hand goods dealers' licenses, waiving all three readings. The purpose of the moratorium is to put on hold all applications for licenses while city staff can study and provide recommendations to the Planning Commission and City Council on revised ordinances. Captain John Ohl of the Police Department mentions in the attached memorandums some of the problems associated with these businesses and what the City needs to look at to deal with the concerns. The course of action likely is that the City's second hand goods dealers' ordinance will be revised and the new pawn shop ordinance will be adopted. City staff has identified two City of Minneapolis' ordinances as good models for pawn shops and second hand goods dealers' ordinances, which are enclosed for review. As Capt. Ohl has stated, it is imperative the City's pawn shop ordinance is similar to Minneapolis's, or the suggested "minimum language paperwork," both of which require membership in the Automated Pawn System (APS), among other requirements. In addition, staff has obtained pawn shop ordinances from Fridley and Hopkins; these are also enclosed for review. The enclosed ordinances have also been forwarded to the City Attorney's Office for review and comment. The timeline on the review will depend on what Commissioners deem appropriate and what the City Attorney's Office and city staff will need to complete the assessment. The moratorium will be in place for one year, unless changed by the City Council. Attachments: • City of St. Anthony Second Hand Goods Dealers Ordinance (Section 565) • September 13, 2002, Memorandum from Capt. John Ohl • October 1, 2002, Memorandum from Capt. John Ohl • City of Minneapolis Pawnbrokers Ordinance (Chapter 324) • Suggested Minimum Language for APS Compliant Ordinances • City of Minneapolis Secondhand Dealers Ordinance (Chapter 321) • City of Fridley Pawn Shop Ordinance (Chapter 31) • City of Hopkins Pawnbrokers Ordinance (Section 1180) j Subd. 1. Evidence of Qualification. Evidence of qualifications establi ed before any agency of the State will be prima facie evidence of competen under this Section. Subd. 2. Proof of State License. Whenever an agency of a State imposes licensing or registration requirements for any trade li rased under this Section, roof of satisfaction of all State requirements must a provided. 560.05 Bon and Insurance. Upon approval of the li nse application and prior to the issuance of a license, any applicant who.does of have the required State license must file: (a) A bond in amount of$2,0 conditioned upon compliance with all provisions of ' Code an he State of Minnesota Building Code regulating or gove g nstruction work. (b) A certificate of publi a ' 'ty insurance in the amount of$100,000 per person and $300,0 per acc ent for death or bodily injury, and$50,000 for property d ge. (c) Proof of Wo er's Compensation ins ance as required by law. 560.06 Ri ht to Perfor A City license granted to a ge ral contractor includes the right to perform all the work included in a general cont ct. The license includes any or all persons perf rming the work which is classified and li d,providing that each person perfo g such work is in the regular employ of the g eral contractor and is qualified and State law and the provisions of this Section to per rm such work. The general con ctor is responsible for all of the work so performed. bcontractors on any work e required to comply with this Section for that subcontrac 's particular type of w rk. 560.0 Provisions. Unlicensed employees under the supervision of a licensee ay be en g ged by a licensed contractor,but this provision will not be construed as exe 'ting . su employees from licensing or registration requirements imposed by State law. Section 565 -SECONDHAND GOODS DEALERS 565.01 Definitions. For purposes of this Section the term"Secondhand goods dealer" means a person whose regular business includes selling or receiving tangible personal property (excluding motor vehicles) previously used,rented,owned or leased. l 5-32 565.02 Exemptions. This Section does not apply to or include the following: (a) The sale of secondhand goods where all of the following conditions are present: (1) The sale is held on property occupied as a dwelling by the seller, or owned, rented or leased by a charitable or political organization. (2) The items.offered for sale are owned by the occupant. (3) The sale does not exceed a period of 72 consecutive hours. (4) Not more than two sales are held either by the same person or on the same property in any 12-month period. (5) None of the items offered for sale have been purchased for resale or received on consignment for purpose of resale. (b) Sales by a person licensed as a motor vehicle dealer. (c). The sale of secondhand books,magazines, sound or video recordings,or films. (d) The sale of goods at an auction held by a licensed auctioneer. (e) The business of buying or selling only those secondhand goods taken as part or full payment for new goods, and where such business is incidental to and not the primary business of a person. (f) A bulk sale of property from a merchant,manufacturer,or wholesaler having an established place of business or of goods sold at open sale from bankrupt stock. (g) Goods sold at a public market. (h) Goods sold at an exhibition. 565.03 License Required. No person may engage in the business of secondhand goods dealer without first obtaining a secondhand goods dealer license. 5-33 j. 565.04 License Fee. The annual license fee for a secondhand goods dealer is set forth in Section 615. 565.05 Application. Subd. 1.- Contents. 'A license applicant must:complete an application form provided by the City Manager. The application must be in a form and request information of the applicant as determined by the City Council. Subd. 2. Execution. If the applicant is a natural person,the application must be signed and sworn to by the person; if a corporation,by an officer authorized to sign; if a partnership,by a partner. Subd. 3. Fees. The application must be accompanied by the license fee required in Section 615. The fee will be returned to the applicant if the application is rejected. Subd. 4. False Statements. It is unlawful to knowingly make a false statement in the license application. In addition to all other penalties,the license may be subsequently revoked by the City Council for a violation of this Subsection. .565.06 Bond. A license will not be issued unless the applicant files with the City Clerk a bond with corporate surety,cash, or a United States government bond in the amount of $3,000. The bond must be conditioned on the licensee obeying the laws and ordinances governing the licensed business and paying all fees, taxes,penalties and other charges associated with the business. The bond must provide that it is forfeited to the City upon a violation of law or ordinance. 565.07 Investigation. The City,prior to the granting of an initial or renewed secondhand goods dealer license,will conduct a preliminary background and financial investigation of the applicant. Any person having a beneficial interest in the license will be investigated by the Chief of Police and the results reported to the City Council. The Chief of Police will verify the.facts stated in the application,and report all convicted violations.of state.law,federal law, or municipal_ordinances involving the applicant,: interested persons, or the licensed premises while under that applicant's proprietorship. 565.08 Public Hearing. A secondhand goods dealer license will not be issued or renewed without a public hearing. Any person having an interest in or who will be affected by the proposed license will be permitted to testify-at the hearing. 565.09 Persons Ineligible. A license will not be issued to: 1 5-34 j (a) A person not a citizen of the United States or a resident alien. (b) A person under 18 years of age. (c) A person who within five years ofthe license application date has been convicted of receiving stolen property,sale of stolen property or controlled substance,burglary,robbery, damage or trespass to property, or any law or ordinance regulating the business of secondhand goods dealer. (d) A person who within five years of the license application date had a secondhand goods dealer license revoked. (e) A person whom the City Council determines not to be of sufficient good moral character and repute. (f) A person if the City Council determines that issuance or renewal of the license would adversely affect the public health,safety, or welfare. 565.10 License Limitations. A license will be issued to the applicant only, and only for the business premises as described in the application. The license is effective only for : the premises specified in the approved license application. 565.11 Records. A licensed secondhand goods dealer, at the time of receipt of an item, must immediately record, in ink or other indelible.medium in a book or word processing unit, the following information: (a) An accurate description of the item including,but not limited to, any trademark, identification number,serial number,model number,brand name,or other identifying mark on such item. (b). The purchase price. (c) Date,time and place of receipt. (d) Name, address and date of birth of the person from whom the item was received. (e) The identification number from any of the following forms of identification of the seller: 5-35 (1) Valid picture driver's license. (2) Picture identification. (3) Medicard. (f) The books as well as the goods received must be open for inspection by the police department at reasonable'times. Records required by this Subsection must be stored and maintained by the licensee for a period of at least three years. 565.12 Daily Reports. For the following items,regardless of resale price, a secondhand goods dealer or pawnbroker must make out,on forms approved by the police department, and send daily by mail to the police department, a legible description of the goods received during the preceding day,together with the time received and a description of the person from whom the goods were received: (a) Items with a serial number identification, or"operation identification" symbol. (b) Cameras. (c) Electronic audio or video equipment. (d) Precious jewelry or gems, and precious metals. (e) Artist-signed or artist-attributed works of art. (f) Guns and firearms. (g) Items not included in the above,except furniture and kitchen or laundry appliances,which the secondhand goods dealer intends to sell for more than$200. (h) Items the dealer has reason to believe that the article was stolen or lost. 565.13 Holding. An item received by a secondhand goods dealer,for which a report to the police is required,may not be sold or otherwise transferred for a period of 30 days after the date of such report to the police. 565.14 Receipt. A licensed secondhand goods dealer or pawnbroker must provide a receipt to the seller or consignor of any items which includes: 5-36 �. (a) The address and phone number of the business. (b) The date. (c) A description of the item purchased. . (d) The purchaser's signature. 565.15 Police Orders. If a City police officer notifies a dealer not to sell an item, the item may not be sold or removed from the licensed premises until authorized to be released by the police. 565.20 Weapons. A dealer may not receive as a pledge or otherwise accept for consignment or sale any revolver,pistol, sawed-off shotgun, automatic rifle,blackjack, switchblade knife, or other.similar weapons or firearms. 565.21 Payments by Check. When a secondhand goods dealer buys or otherwise receives an item at the licensed place of business,payment must be made by check made payable to a named payee who is the actual intended seller. 565.22 Inspections. A peace officer or any properly designated employee of the City or the State of Minnesota may enter, inspect and search business premises licensed under this Section during business hours,without a warrant. 565.23 County License. Secondhand goods dealers dealing in precious metals and gems must be licensed by the County. Section 570 - APARTMENT BUILDINGS 570.01 Purpose. It is the purpose and intent of this Section 570 is to protect the health safety and welfare of citizens of the City who have as their place of abode a living unit in a apartment building and to protect and regulate the living conditions of citizens residing in apartment buildings in the City. 570.02 License Required. No person,partnership, corporation or other group or entity may own or operate a apartment building in the City without the owner first having obtained a license in accordance with this Section 570. 570.03 Application for Licenses. Applications for licenses are to be made by the owner on forms provided by the City. The purchaser of a apartment building may apply as the 5-37 MEMO DATE: October 1, 2002 TO: Sue Hall, Assistant City Manager FROM: Capt. John Ohl SUBJECT: Pawn and Second nd oods Ordinance Pawn broker businesses, by nature, provide an opportunity for the commission of crimes, and have the ability to receive and transfer property stolen by others easily and quickly. There are also consumer protection regulations warranted, and we have an obligation to comply with basic consumer protection standards, thereby protecting the public health, safety, and general welfare of the citizens we serve. To help the police department better regulate current and future pawn businesses, and increase identification of criminal activities in the pawn industry, a pawn ordinance is a must. Many concerns associated with pawn shops have equal weight when discussing second hand goods dealers. The police department and city administration need time to research a suitable ordinance for both pawn brokers and second hand goods dealers. We also need to set fee schedules, and create an application process. Pawn shops may require up to 25% of an officer's time, and we need to discuss revenues generated by licensing and the additional burden on the police department itself. For these reasons, a moratorium on these types of businesses should be imposed, until we have had time to review the aforementioned process. MEMO DATE: September 13, 2002 TO: Asst. City Manager Sue Hall FROM: Capt. John Ohl SUBJECT: Pawn Ordinance In researching this topic, I spoke with several agencies and police officers, and have the following thoughts: • We need a pawn ordinance, even if we do not have a pawn shop. • Our pawn ordinance should be separate from our second hand goods ordinance. • The dynamics surrounding pawn shops are quite specific, and we should not attempt to combine a second hand goods ordinance with a pawn ordinance. • It is imperative that our pawn ordinance is similar to Minneapolis Police Department's, or the suggested"minimum language paperwork" (attached), both of which require membership in the Automated Pawn System, among other requirements. • Membership in the Automated Pawn System(APS) costs the department a one time fee of$500 plus $72 per month. These costs are generally passed onto the pawn business through licensing and application fees. In addition to the application and licensing fees, APS also tracks each pawn transaction, and charges the city $1 per transaction. Generally, cities then charge pawn shops $1.50 to$2 per transaction to recoup officer time and city expenses for time spent monitoring these businesses. NQTE—The one time $500 charge is to set up a computer network and software, allowing web access to APS. The department implications related to time investment are as follows: • Time will be spent checking compliance with the ordinance. This will be extensive, and could take as much as 25% of an officer's time. • Pawn shops generate a disproportionate amount of radio calls. • We will be recovering stolen property, and will be asked to charge suspects with possession of that stolen property. • There will be billing considerations for Finance. • Officers will need to attend a three hour training session on using APS. Most cities set applications and license fees at $2500 - $3000 plus $1.50 to $2 per transaction. Other cities set a variety of application and fee schedules, some of which are as follows: • Little Canada- $8000 plus $1.50 per transaction • Burnsville - $10,000 plus $1.35 per transaction • Blaine- $15,000 plus no per transaction fee Pawn broker businesses, by nature, provide an opportunity for the commission of crimes, and have the ability to receive and transfer property stolen by others easily and quickly. There are also consumer protection regulations warranted, and we have an obligation to comply with basic consumer protection standards, thereby protecting the public health, safety, and general welfare of the citizens we serve. To help the police department better regulate current and future pawn businesses, decrease and stabilize costs associated with the regulation of pawn businesses, and increase identification of criminal activities in the pawn industry, a pawn ordinance is a must. CHAPTER 324. PAWNBROKERS 324.10. Purpose. The city council finds that use of services provided by pawnbrokers provides an opportunity for the commission of crimes and their concealment because pawn businesses have the ability to receive and transfer property stolen by others easily and quickly. The city council also finds that consumer protection regulation is warranted in transactions involving pawnbrokers. The city council further finds that the pawn industry has outgrown the city's current ability to effectively or efficiently identify criminal activity related to pawn shops. The purpose of this chapter is to prevent pawn businesses from being used as facilities for the commission of crimes and to assure that such businesses comply with basic consumer protection standards, thereby protecting the public health, safety, and general welfare of the citizens of the city. To help the police department 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). (95-Or-160, § 1, 12-29-95) 324.20. Definitions. When used in this article, the following words shall mean: Pawnbroker. Any natural person, partnership or corporation, either as principal, or agent or employee thereof, who loans money on deposit or pledge of personal property, or other valuable thing, or who deals in the purchasing of personal property, or other valuable thing on condition of selling the same.back again at a stipulated price, or who loans money secured by chattel mortgage on personal property, taking possession of the property or any part thereof so mortgaged. To the extent that a pawnbroker's business includes buying personal property previously used, rented or leased, or selling it on consignment, the provisions of this chapter shall be applicable. Reportable transaction. Every transaction conducted by a pawnbroker in which merchandise is received through a pawn, purchase, consignment or trade, or in which a pawn is renewed, extended or redeemed, is reportable except: (1)The bulk purchase or consignment 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 or consignment which describes each item, and must mark each item in a manner which relates it to that transaction record. (2) Retail and wholesale sales of merchandise originally received by pawn or purchase, and for which all applicable hold and/or redemption periods have expired. Billable transaction. 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 is a billable transaction. (95-Or-160, § 1, 12-29-95) 324.30. License required. No person shall engage in the business of pawnbroker at any location without a pawnbroker license for that location. No pawnbroker license may be transferred to a different location or a different person. Issuance of a license under this chapter shall not relieve the licensee from obtaining any other licenses required to conduct business at the same or any other locations. (95-Or-160, § 1, 12-29-95) 324.40. License classifications. (a)Licenses renewed under provisions of this chapter shall be classified according to the number of billable transactions submitted annually to the Minneapolis Police Department during the twelve (12) month period ending September 30 prior to renewal. The classifications shall be: Class A- Licensees that submitted four hundred (400) or more transactions. Class B - Licensees that submitted fewer than four hundred (400)transactions. (b)All new licenses issued pursuant to this chapter after January 1, 1996, shall be deemed to be Class A licenses and subject to all applicable fees and regulations. (95-Or-160, § 1, 12-29- 95) 324.50. License fees. (a)The annual license fees for licenses issued under this chapter shall be as follows: Class_A-Two thousand five hundred dollars ($2,500.00). Class B-Two thousand five hundred dollars ($2,500.00). The annual license fee shall be payable semi-annually in accordance with procedures established by the director of licenses and consumer services. (b)The billable transaction license fee shall be classified according to the medium by which daily reports required by section 324.100 are submitted to the Minneapolis Police Department. These classifications shall be as follows: Modem - Required of all Class A licensees, optional for Class B licensees. Manual- Required of all Class B licensees who do not fulfill Class A reporting requirements. (c) The billable transaction license fee shall reflect the cost of processing transactions from the respective classifications and other related regulatory expenses as determined by the city council, and shall be reviewed and adjusted, if necessary, at least every six(6) months. Licensees shall be notified in writing thirty(30) days before any adjustment is implemented. The billable transaction fee for modem transactions shall not exceed the billable transaction fee for manual transactions. (d) Billable transaction fees shall be billed monthly and are due and payable within thirty(30) days. Failure to do so is a violation of this chapter. (95-Or-160, § 1, 12-29-95) 324.60. Investigation fee. (a)An applicant for a new license under this chapter, or for the renewal of an existing license that is more than six(6) months past due, shall deposit one thousand five hundred dollars ($1,500.00) with the police license inspector at the time an original application is submitted to cover the costs involved in verifying the license application and to cover the expense of any investigation needed to assure compliance with this chapter. If the investigation process is conducted solely within the State of Minnesota, the fee shall be five hundred dollars ($500.00) and the remainder of the deposit shall be returned to the applicant upon completion of the investigation. If the investigation is conducted outside the State of Minnesota, the issuing authority may recover the actual investigation costs not exceeding ten thousand dollars ($10,000.00). (95-Or-160, § 1, 12-29-95) 324.70. Expiration of license. All licenses shall expire on January 1st. (95-Or-160, § 1, 12-29-95) 324.80.Application required. (a) (Contents.)An application form provided by the department of licenses and consumer services must be completed by every applicant for a new license or for renewal of an existing license. Every new applicant must provide all the following information: (1) If the applicant is a natural person: a. The name, place and date of birth, street resident address, and phone number of applicant. b. Whether the applicant is a citizen of the United States or resident alien. c. Whether the applicant has ever used or has been known by a name other than the applicant's name, and if so, the name or names used and information concerning dates and places used. d.The name of the business if it is to be conducted under a designation, name, or style other than the name of the applicant and a certified copy of the certificate as required by Minnesota Statutes, Section 333.01. e. The street address at which the applicant has lived during the preceding five (5) years. f. The type, name and location of every business or occupation in which the applicant has been engaged during the preceding five (5) years and the name(s) and address(es) of the applicant's employer(s) and partner(s), if any,for the preceding five (5) years. g. Whether the applicant has ever been convicted of a felony, crime, or violation of any ordinance other than a traffic ordinance. If so, the applicant must furnish information as to the time, place, and offense of all such convictions. h. The physical description of the applicant. L Applicant's current personal financial statement and true copies of the applicant's federal and state tax returns for the two (2) years prior to application. j. If the.applicant does not manage the business, the name of the manager(s) or other person(s) in charge of the business and all information concerning each of them required in a. through h. of subdivision (1) of this section. (2) If the applicant is a partnership: a. The name(s) and address(es)of all general and limited partners and all information concerning each general partner required in subdivision (1) of this section. b. The name(s) of the managing partner(s) and the interest of each partner in the licensed business. c. A true copy of the partnership agreement shall be submitted with the application. If the partnership is required to file a certificate as to a trade name pursuant to Minnesota Statutes, Section 333.01, a certified copy of such certificate must be attached to the application. d.A true copy of the federal and state tax returns for partnership for the two (2)years prior to application. e. If the applicant does not manage the business, the name of the manager(s) or other person(s) in charge of the business and all information concerning each of them required in a. through h. of subdivision (1) of this section. (3) If the applicant is a corporation or other organization: a. The name of the corporation or business form, and if incorporated, the state of incorporation. b.A true copy of the Certificate of Incorporation, Articles of Incorporation or Association Agreement, and By-laws shall be attached to the application. If the applicant is a foreign corporation, a Certificate of Authority as required by Minnesota Statutes, Section 303.06, must be attached. c. The name of the manager(s) or other person(s) in charge of the business and all information concerning each manager, proprietor, or agent required in a. through h. of subdivision (1) of this section. d. A list of all persons who control or own an interest in excess of five (5) percent in such organization or business form or who are officers of the corporation or business form and all information concerning said persons required in subdivision (1) above. This subdivision (d), however, shall not apply to a corporation whose stock is publicly traded on a stock exchange and is applying for a license to be owned and operated by it. (4) For all applicants: a. Whether the applicant holds a current pawnbroker, precious metal dealer or secondhand goods dealer license from any other governmental unit. b. Whether the applicant has previously been denied, or had revoked or suspended, a pawnbroker, precious metal dealer, or secondhand dealer license from any other governmental unit. c. The location of the business premises. d. If the applicant does not own the business premises, a true and complete copy of the executed lease. e. The legal description of the premises to be licensed. f. Whether all real estate and personal property taxes that are due and payable for the premises to be licensed have been paid, and if not paid, the years and amounts that are unpaid. g. Whenever the application is for premises either planned or under construction or undergoing substantial alteration, the application must be accompanied by a set of preliminary plans showing the design of the proposed premises to be licensed. h. Such other information as the city council or issuing authority may require. (b) New manager. When a licensee places a manager in charge of a business, or if the named manager(s) in charge of a licensed business changes, the licensee must complete and submit the appropriate application, on forms provided by the department of licenses and consumer services, within fourteen (14)days. The application must include all appropriate information required in section 324.80. (1) Upon completion of an investigation of a new manager, the licensee must pay an amount equal to the cost of the investigation to assure compliance with this chapter. If the investigation process is conducted solely within the State of Minnesota, the fee shall be five hundred dollars ($500.00). If the investigation is conducted outside the State of Minnesota, the issuing authority may recover the actual investigation costs not exceeding ten thousand dollars ($10,000.00). (c)Application execution. All applications fora license under this chapter must be signed and sworn to under oath or affirmation by the applicant. If the application is that of a natural person, it must 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. (d) Investigation. The police license inspector must investigate into the truthfulness of the statements set forth in the application and shall endorse the findings thereon. The applicant must furnish to the police license inspector such evidence as the inspector may reasonably require in support of the statements set forth in the application. (e) Public hearing. The council member of the ward in which the proposed business would be located may request a public hearing at council, or in the evening hours at a location in the approximate vicinity of the proposed location. (f) Persons ineligible for a license. No licenses under this chapter will be issued to an applicant who is a natural person, a partnership if such applicant has any general partner or managing partner, a corporation or other organization if such applicant has any manager, proprietor or agent in charge of the business to be licensed, if the applicant: (1) Is a minor at the time that the application is filed; (2) Has been convicted of any crime directly related to the occupation licensed as prescribed by Minnesota Statutes, Section 364.03, Subd. 2, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a licensee under this chapter as prescribed by Minnesota Statutes, Section 364.03, Subd. 3; or (3) Is not of good moral character or repute. (95-Or-160, § 1, 12-29-95) 324.90. Bond required. Before a license will be issued, every applicant must submit a five thousand dollar($5,000.00) bond on the forms provided by the department of licenses and consumer services. All bonds must be conditioned that the principal will observe all laws in relation to pawnbrokers, and will conduct business in conformity thereto, and that the principal will account for and deliver to any person legally entitled any goods which have come into the principal's hand through the principal's business as a pawnbroker, or in lieu thereof, will pay the reasonable value in money to the person. The bond shall contain a provision that no bond may be canceled except upon thirty(30) days written notice to the city, which shall be served upon the department of licenses and consumer services. (95-Or-160, § 1, 12-29-95) 324.100. Records required. At the time of any reportable transaction other than renewals, extensions or redemptions, every licensee must immediately record in English the following information by using ink or other indelible medium on forms or in a computerized record approved by the police license inspector: (1)A complete and accurate description of each item including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item. (2)The purchase price, amount of money loaned upon, or pledged therefor. (3) The maturity date of the transaction and the amount due, including monthly and annual interest rates and all pawn fees and charges. (4) Date, time and place 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. (5) Full name, residence address, residence telephone number, date of birth and accurate description of the person from whom the item of property was received, including: sex, height, weight, race, color of eyes and color of hair. (6)The identification number and state of issue from any of the following forms of identification of the seller: a. Current valid Minnesota driver's license. b. Current valid Minnesota identification card. c. Current valid photo driver's license or identification card issued by another state.or province of Canada. (7)The signature of the person identified in the transaction. (8)Effective sixty(60) days from the date of notification by the police license inspector of acceptable video standards, but no sooner than April 1, 1996, the licensee must also take a color photograph or color video recording of: a. Each customer involved in a billable transaction. b. Every item pawned or sold that does not have a unique serial or identification number permanently engraved or affixed. If a photograph is taken, it must be at least two (2) inches in length by two (2) inches 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 chiefs 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 in the premises. 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 must inform the person that he or she is being videotaped orally and by displaying a sign of sufficient size in a conspicuous place on the premises. The licensee must keep the exposed videotape for three (3) months. (9) Digitized photographs. Effective sixty(60) days from the date of notification by the police license inspector, but no sooner than July 1, 1996, Class A licensees must, and Class B licensees may, fulfill the color photograph requirements in section 324.100 (8) by submitting them as digital images, in a format specified by the issuing authority, electronically cross- referenced to the reportable transaction they are associated with. Notwithstanding the digital images may be captured from required video recordings, this provision does not altar or amend the requirements in subdivision (8). (10) Renewals, extensions and redemptions. For renewals, extensions and redemptions, the licensee shall provide the original transaction identifier, the date of the current transaction, and the type of transaction. (11) Inspection of records. The records must at all reasonable times be open to inspection by the police department or department of licenses and consumer services. Data entries shall be retained for at least three (3) years from the date of transaction. Entries of required digital images shall be retained a minimum of ninety (90) days. (95-Or-160, § 1, 12-29-95; 97-Or-064, § 1, 7-25-97) 324.110. Daily reports to police. (a) Method. Licensees must provide to the police department the information required in section 324.100(1) through (6), in writing, on forms approved by the business day following the date of the transaction. The licensee must display a sign of sufficient size, and in a conspicuous place in the premises, so as to inform all patrons that all transactions are reported to the police department daily. Effective sixty (60) days from the date of notification by the police license inspector, but no sooner than ninety (90) days after the police license inspector provides licensees with computerized record standards, licensees must submit every reportable transaction to the police department daily in the following manner: (1)Class A licensees must, and Class B licensees may, provide to the police department the information required in section 324.100 (1) through (6), by transferring it from their computer to the police department via modem. 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 a dial-callback protocol or other 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. (2)Class B licensees who do not fulfill requirements of section 324.110(a)(1) must provide to the police department the information required in section 324.100 (1)through (6), in writing, on forms approved by the police department, by 12:00 noon the first business day following the date of the transaction. 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. (b) Billable transaction fees. Licensees, regardless of class, will be charged for billable transactions at the current rate for the medium by which they were reported to the police department except: (1) If a Class A licensee, or a Class B licensee who has consistently reported via modem, is unable to successfully transfer the required reports by modem, the licensee must provide the police department printed copies of all reportable transactions along with the video tape(s)for that date, by 12:00 the next business day, and must be charged at the modem rate for billable transactions; (2) 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 as detailed in [section] 324.110(b)(1), and must be charged at the modem rate for transactions through the close of the first business day following the failure, and at the manual rate for all subsequent billable transactions until the error is corrected; or (3) If the problem is determined to be outside the licensee's system, the licensee must provide the required reports in detail in 324.110(b)(1), and will be billed at the modem rate for billable transactions until the error'is corrected. (4) If a Class A licensee, or a Class B licensee who has consistently reported via modem, is unable to capture, digitize or transmit the photographs required in section 324.100 (8) and (9), the licensee must immediately take all required photographs with a still camera, immediately develop the pictures, cross-reference the photographs to the correct transaction, and deliver them to the police department by 12:00 noon the next business day. Billable transactions will be charged at the modem rate for transactions through the close of the first business day following the failure, and at the manual rate for all subsequent billable transactions until the error is corrected. (5)Second and subsequent occurrences of circumstances detailed in section 324.110(b), (1), (2)or(4), within any six (6) consecutive months, will be charged at the manual rate for billable transactions until the error is corrected. (6) Section 324.110(b) (1) through (5) notwithstanding, the police license inspector may, upon presentation of extenuating circumstances, extend the period that a qualifying licensee is billed at the modem rate for billable transactions. (95-Or-160, § 1, 12-29-95; 97-Or-064, §2, 7-25-97) 324.120. Receipt required. Every licensee must provide a receipt to the party identified in every reportable transaction and must maintain a duplicate of that receipt for three (3) years. The receipt must include at least the following information: (1)The name, address and telephone number of the licensed business. (2)The date and time the item was received by the licensee. (3)Whether the item was pawned or sold, or the nature of the transaction. (4)An accurate description of each item received including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item. (5)The signature or unique identifier of the licensee or employee that conducted the transaction. (6)The amount advanced or paid. (7)The monthly and annual interest rates, including all pawn fees and charges. (8)The last regular day of business 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. (9) The full name, residence address, residence telephone number, and date of birth of the pledger or seller. (10)The identification number and state of issue from any of the following forms of identification of the seller: a. Current valid Minnesota driver's license. b. Current valid Minnesota identification card. c. Current valid photo driver's license or identification card issued by another state:or province of Canada. (11) Description of the pledger or seller including approximate sex, height,weight, race, color of eyes and color of hair. (12)The signature of the pledger or seller. (13)All printed statements as required by State Statute 325J.04 subdivision 2, or any other applicable statutes. (95-Or-160, § 1, 12-29-95; 97-Or-064, §3, 7-25-97) 324.130. Redemption period. Any person pledging, pawning or depositing an item for security must have a minimum of ninety (90) days from the date of that transaction to redeem the item before it may be forfeited and sold. During the ninety(90) day holding period, items may not be removed from the licensed location except as provided in section 324.200. Licensees are prohibited from redeeming any item to anyone other than the person to whom the receipt was issued or,to any person identified in a written and notarized authorization to redeem the property identified in the receipt, or to a person identified in writing by the pledger at the time of the initial transaction and signed by the pledger, or with approval of the police license inspector. Written authorization for release of property to persons other than original pledger must be maintained along with original transaction record in accordance with [section] 324.100(10). (95-Or-160, § 1, 12-29-95) 324.140. Holding period. Any item purchased by a licensee must not be sold or otherwise transferred for thirty(30) days from the date of the transaction. An individual may redeem.an item seventy-two (72) hours after the item was received on deposit, excluding Sundays and legal holidays. (95-Or-160, § 1, 12- 29-95) 324.150. Police order to hold property. (a) Investigative hold. Whenever a law enforcement official from any agency notifies a licensee not to sell an item, the item must not be sold or removed from the premises. The investigative hold shall be confirmed in writing by the originating agency within seventy-two (72) hours and will remain in effect for fifteen (15) days from the date of initial notification, or until the investigative order is canceled, or until an order to hold/confiscate is issued, pursuant to [section] 324.150(b), whichever comes first. (b) Order to hold. Whenever the chief of police, or the chiefs designee, notifies a licensee not to sell an item, the item must not be sold or removed from the licensed premises until authorized to be released by the chief or the chiefs designee. The order to hold shall expire ninety (90) days from the date it is placed unless the chief of police or the chiefs designee determines the hold is still necessary and notifies the licensee in writing. (c) Order to confiscate. If an item is identified as stolen or evidence in a criminal case, the chief or chiefs designee may: (1) Physically confiscate and remove it from the shop, pursuant to a written order from the chief or the chiefs designee, or (2) Place the item on hold or extend the hold as provided in [section] 324.150(b), and leave it in the shop. When an item is confiscated, the person doing so shall provide identification upon request of the licensee, and shall provide the licensee the name and phone number of the confiscating agency and investigator, and the case number related to the confiscation. When an order to hold/confiscate is no longer necessary, the chief of police, or chiefs designee shall so notify the licensee. (95-Or-160, § 1, 12-29-95) 324.160. Inspection of items. At all times during the terms of the license, the licensee must allow the police license inspector or his designee(s)to enter the premises where the licensed business is located, including all off-site storage facilities as authorized in section 324.200, during normal business hours, except in an emergency, for the purpose of inspecting such premises and inspecting the items, ware and merchandise and records therein to verify compliance with this chapter or other applicable laws. (95-Or-160, § 1, 12-29-95) 324.170. Label required. Licensees must attach a label to every item at the time it is pawned, purchased or received in inventory from any reportable transaction. Permanently recorded on this label must be the number or name that identifies the transaction in the shop's records, the transaction date, the name of the item and the description or the model and serial number of the item as reported to the police department, whichever is applicable, and the date the item is out of pawn or can be sold, if applicable. Labels shall not be re-used. (95-Or-160, § 1, 12-29-95) 324.180. Prohibited acts. (a) No person under the age of eighteen (18) years may pawn or sell or attempt to pawn or sell goods with any licensee, nor may any licensee receive any goods from a person under the age of eighteen (18) years. (b) No licensee may receive any goods from a person of unsound mind or an intoxicated person. (c) No licensee may receive any goods, unless the seller presents identification in the form of a valid driver's license, a valid State of Minnesota identification card, or current valid photo driver's license or identification card issued by the state of residency of the person from whom the item was received. (d) No licensee may receive any item of property that possesses an altered or obliterated serial number or operation identification number or any item of property that has had its serial number removed. (95-Or-160, § 1, 12-29-95) (e) No person may pawn, pledge, sell, consign, leave, or deposit any article of property not their own; nor shall any person pawn, pledge, sell, consign, leave, or deposit the property of another, whether with permission or without; nor shall any person pawn, pledge, sell, consign, leave, or deposit any article of property in which another has a security interest; with any licensee. (f) No person seeking to pawn, pledge, sell, consign, leave, or deposit any article of property with any licensee shall give a false or fictitious name; nor give a false date of birth; nor give a false or out of date address of residence or telephone number; nor present a false or altered identification, or the identification of another; to any licensee. 324.190. Denial, suspension or revocation. Any license under this chapter may be denied, suspended or revoked for one or more of the following reasons: (1)The proposed use does not comply with the Minneapolis Zoning Code. (2)The proposed use does not comply with any health, building, building maintenance or other provisions of this Code of Ordinances or state law. (3)The applicant or licensee has failed to comply with one or more provisions of this chapter. (4)The applicant is not a citizen of the United States or a resident alien, or upon whom it is impractical or impossible to conduct a background or financial investigation due to the unavailability of information. (5) Fraud, misrepresentation or bribery in securing or renewing a license. (6) Fraud, misrepresentation or false statements made in the application and investigation for, or in the course of, the applicant's business. (7)Violation within the preceding five (5) years, of any law relating to theft, damage or trespass to property, sale of a controlled substance, or operation of a business. (8)The owner of the premises licensed or to be licensed would not qualify for a license under the terms of this chapter. (95-Or-160, § 1, 12-29-95; 97-Or-064, §4, 7-25-97) 324.200. Business at only one place. A license under this chapter authorizes the licensee to carry on its business only at the permanent place of business designated in the license. However, upon written request, the police license inspector may approve an off-site locked and secured storage facility. The licensee shall permit inspection of the facility in accordance with section 324.160. All provisions of this chapter regarding recordkeeping and reporting apply to the facility and its contents. Property shall be stored in compliance with all provisions of the city code. The licensee must either own the.building in which the business is conducted, and any approved off-site storage facility, or have a lease on the business premises which extends for more than six (6) months. (95-Or-160, § 1, 12-29-95) 324.210. Separability. Should any section, subsection, 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. (95-Or-160, § 1, 12-29-95) TO: dlfB�L�I :TI� SUBJ: Suggested Minimum Language for APS Compliant Ordinances The following information is provided as a guide for police departments and attorneys engaged in developing or modifying pawnbroker ordinances in Minnesota. Its use will enable jurisdictions to implement and mandate use of the Automated Pawn SystemM (APSTM)and effectively regulate pawn shops more efficiently. Minnesota Statutes 1996 325J Pawnbrokers, sets certain minimum regulatory requirements, and then specifically enables local governments to adopt more restrictive laws related to pawnbrokers. The genesis for most of the language herein is Title 14 of the Minneapolis Code of Ordinances, Chapter 324 Pawnbrokers (MCO 324)which was unanimously passed by the City council in December, 1995. It is the first ordinance to specifically mandate the use of the Automated Pawn System'"' and the billable transaction fee cost recovery model. Since then, numerous other communities have used it as a template in re-writing their pawn (and in some cases, secondhand dealer) ordinances. Readers are encouraged to review the ordinances in order to better understand how the use of APS, and the billable transaction fee regulatory model it supports, enables communities to recover their total cost of regulating these businesses. The following elements should be included in new or revised pawnbroker ordinances. ASSUMPTIONS: These suggestions assume: 1) That all pawn shops in a given jurisdiction will be required to report their transactions electronically via APS. 2) That the jurisdiction is implementing the use of billable transaction fees to recover their costs of regulation. STYLES USED: ♦ (WHEN APPROPRIATE, EXPLANATIONS OR BACKGROUND ON ELEMENTS ARE CAPITALIZED AND ITALICIZED IN PARENTHESIS.) • Language specifically required for implementing and using the Automated Pawn SystemTM service is underlined. Purpose.The city council finds that use of services provided by pawnbrokers provides an opportunity for the commission of crimes and their concealment because pawn businesses have the ability to receive and transfer property stolen by others easily and quickly. The city council also finds that consumer protection regulation is warranted in transactions involving pawnbrokers. The city council further finds that the pawn industry has outgrown the city's current ability to effectively or efficiently identify criminal activity related to pawn shops. The purpose of this chapter is to prevent pawn businesses from being used as facilities for the commission of crimes, and to assure that such businesses comply with basic consumer protection standards, thereby protecting the public health, safety, and general welfare of the citizens of the city. To help the police department 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). APS PAWN ORD LANGUAGE Rev 1.1.doc 1 Definitions. When used in this article, the following words shall mean: Pawnbroker.Any natural person, partnership or corporation, either as principal, or agent or employee thereof, who loans money on deposit or pledge of personal property, or other valuable thing, or who deals in the purchasing of personal property, or other valuable thing on condition of selling the same back again at a stipulated price, or who loans money secured by chattel mortgage on personal property,taking possession of the property or any part thereof so mortgaged. To the extent that a pawnbroker' s business includes buying personal property Previously used, rented or leased, or selling it on consignment, the provisions of this chapter shall be applicable. Reportable transaction. Every transaction conducted by a pawnbroker in which merchandise is received through a pawn, purchase, consignment or trade, or in which a pawn is renewed, extended or redeemed, or for which a unique transaction number or identifier is generated by their point-of-sale software, is reportable except: (1) The bulk purchase or consignment 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 or consignment which describes each item, and must mark each item in a manner which relates it to that transaction record. (2) Retail and wholesale sales of merchandise originally received by pawn or purchase, and for which all applicable hold and/or redemption periods have expired. Billable transaction. 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 is a billable transaction. License fees. (THE CURRENT MINNEAPOLIS ANNUAL FEE IS TWO THOUSAND FIVE HUNDRED DOLLARS ($2,500.00)). (a)The annual license fees for licenses issued under this chapter shall be: (b)The billable transaction license fee shall reflect the cost of processing transactions and other related regulatory expenses as determined by the city council, and shall be reviewed and adjusted, if necessary, every six(6) months. Licensees shall be notified in writing thirty(30) days before any adjustment is implemented. (c) Billable transaction fees shall be billed monthly and are due and payable within thirty (30) days. Failure to do so is a violation of this chapter. Application required. (THE REQUIREMENTS DETAILED HERE ARE INTENDED TO PROVIDE LICENSING AUTHORITIES ADEQUATE INFORMATION TO MAKE A GOOD DECISION RE. THE APPLICANT(S)) (a) (Contents.)An application form provided by the department of licenses and consumer services must be completed by every applicant for a new license or for renewal of an existing license. Every new applicant must provide all the following information: (1) If the applicant is a natural person: a. The name, place and date of birth, street resident address, and phone number of applicant. b. Whether the applicant is a citizen of the United States or resident alien. APS PAWN ORD LANGUAGE Rev 1.1.doc 2 t c. Whether the applicant has ever used or has been known by a name other than the applicant's name, and if so, the name or names used and information concerning dates and places used. d. The name of the business if it is to be conducted under a designation, name, or style other than the name of the applicant and a certified copy of the certificate as required by Minnesota Statutes, Section 333.01. e. The street address at which the applicant has lived during the preceding five (5) years. f. The type, name and location of every business or occupation in which the applicant has been engaged during the preceding five (5) years and the name(s) and address( es) of the applicant's employer(s)and partner(s), if any, for the preceding five (5)years. g. Whether the applicant has ever been convicted of a felony, crime, or violation of any ordinance other than a traffic ordinance. If so, the applicant must furnish information as to the time, place, and offense of all such convictions. h. The physical description of the applicant. L Applicant's current personal financial statement and true copies of the applicant's federal and state tax returns for the two (2)years prior to application. j. If the applicant does not manage the business,the name of the manager(s) or other person(s) in charge of the business and all information concerning each of them required in a. through h. of subdivision (1) of this section. (2) If the applicant is a partnership: a. The name(s) and address(es)of all general and limited partners and all information concerning each general partner required in subdivision (1)of this section. b. The name(s)of the managing partner(s) and.the interest of each partner in the licensed business. c. A true copy of the partnership agreement shall be submitted with the application. If the partnership is required to file a certificate as to a trade name pursuant to Minnesota Statutes, Section 333.01, a certified copy of such certificate must be attached to the application. d. A true copy of the federal and state tax returns for partnership for the two (2)years prior to application. e. If the applicant does not manage the business, the name of the manager(s) or other person(s) in charge of the business and all information concerning each of them required in a. through h. of subdivision (1) of this section. (3) If the applicant is a corporation or other organization: a. The name of the corporation or business form, and if incorporated, the state of incorporation. b. A true copy of the Certificate of Incorporation, Articles of Incorporation or Association Agreement, and By-laws shall be attached to the application. If the applicant is a foreign APS PAWN ORD LANGUAGE Rev 1.1.doc 3 corporation, a Certificate of Authority as required by Minnesota Statutes, Section 303.06, must be attached. c. The name of the manager(s) or other person(s) in charge of the business and all information concerning each manager, proprietor, or agent required in a. through h. of subdivision (1) of this section. d. A list of all persons who control or own an interest in excess of five (5) percent in such organization or business form or who are officers of the corporation or business form and all information concerning said persons required in subdivision (1)above. This subdivision (d), however, shall not apply to a corporation whose stock is publicly traded on a stock exchange and is applying for a license to be owned and operated by it. (4) For all applicants: a. Whether the applicant holds a current pawnbroker, precious metal dealer or secondhand goods dealer license from any other governmental unit. b. Whether the applicant has previously been denied, or had revoked or suspended, a pawnbroker, precious metal dealer, or secondhand dealer license from any other governmental unit. c. The location of the business premises. d. If the applicant does not own the business premises, a true and complete copy of the executed lease. e. The legal description of the premises to be licensed. f. Whether all real estate and personal property taxes that are due and payable for the premises to be licensed have been paid, and if not paid, the years and amounts that are unpaid. g. Whenever the application is for premises either planned or under construction or undergoing substantial alteration, the application must be accompanied by a set of preliminary plans showing the design of the proposed premises to be licensed. h. Such other information as the city council or issuing authority may require. (b) New manager. When a licensee places a manager in charge of a business, or if the named manager(s) in charge of a licensed business changes, the licensee must complete and submit the appropriate application within fourteen (14)days. The application must include all appropriate information required in this section. (1) Upon completion of an investigation of a new manager, the licensee must pay an amount equal to the cost of the investigation to assure compliance with this chapter. If the investigation process is conducted solely within the State of Minnesota,the fee shall be five hundred dollars($500.00). If the investigation is conducted outside the State of Minnesota, the issuing authority may recover the actual investigation costs not exceeding ten thousand dollars ($10,000.00). (c)Application execution. All applications for a license under this chapter must be signed and sworn to under oath or affirmation by the applicant. If the application is that of a natural person, it must be signed and sworn to by such person; if that of a corporation, by an officer thereof; if APS PAWN ORD LANGUAGE Rev 1.1.doc 4 that of a partnership, by one of the general partners; and if that of an unincorporated association, by the manager or managing officer thereof. (d) Investigation. The police department must investigate into the truthfulness of the statements set forth in the application and shall endorse the findings thereon. The applicant must furnish to the police license inspector such evidence as the inspector may reasonably require in support of the statements set forth in the application. (e) Public hearing. The council member may request a public hearing at council, or in the evening hours at a location in the approximate vicinity of the proposed location. (f) Persons ineligible for a license. No licenses under this chapter will be issued to an applicant who is a natural person, a partnership if such applicant has any general partner or managing partner, a corporation or other organization if such applicant has any manager, proprietor or agent in charge of the business to be licensed, if the applicant: (1) Is a minor at the time that the application is filed; (2) Has been convicted of any crime directly related to the occupation licensed as prescribed by Minnesota Statutes, Section 364.03, Subd. 2, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a licensee under this chapter as prescribed by.Minnesota Statutes, Section 364.03, Subd. 3; or (3) Is not of good moral character or repute. Bond reaulred. Before a license will be issued, every applicant must submit a five thousand dollar($5.000.00) bond on the forms provided by the licensing authority.All bonds must be conditioned that the Drincipal will observe all laws in'relation to pawnbrokers and will conduct business in conformity thereto, and that the principal will account for and deliver to any person legally entitled any goods which have come into the principal's hand through the Principal's business as a Pawnbroker, or in lieu thereof. will Pay the reasonable value in money to the Person. The bond shall contain a provision that no bond may be canceled except upon thirty (30) days written notice to the city, which shall be served upon the licensing authority. Records required.At the time of any reportable transaction other than renewals extensions or redemptions, every licensee must immediately record in English the following information by using ink or other indelible medium on forms or in a computerized record approved by the police department: (1) A complete and accurate description of each item including but not limited to any trademark, identification number, serial number, model number, brand name or other identifying mark on such an item. (2) The purchase price amount of money loaned upon or pledged therefor. (3) The maturity date of the transaction and the amount due, including monthly and annual interest rates and all Dawn fees and charges. (4) Date, time and place 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. APS PAWN ORD LANGUAGE Rev 1.1.doc 5 1 (5) Full name current residence address current residence telephone number, date of birth and accurate description of the Derson from whom the item of the property was received, including: sex height weight race color of eves and color of hair. (6) The identification number and state of issue from any of the following forms of identification of the seller: a. Current valid Minnesota driver's license. b. Current valid Minnesota identification card. c Current valid photo identification card issued by another state or province of Canada. (7) The signature of the person identified in the transaction. (8) Effective sixty (60) days from the date of notification by the police department of acceptable video standards the licensee must also take a color photograph or color video recording of: a. Each customer involved in a billable transaction. b Every item pawned or sold that does not have a unique serial or identification number permanently engraved or affixed. If a photograph is taken it must be at least two (2) inches in length by two (2) inches 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 chiefs 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 in the Dremises 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 must inform the person that he or she is being videotaped orally and by displaying a sign of sufficient size in a conspicuous place on the premises The licensee must keep the exposed videotape for three (3) months. (9) Digitized photographs Effective sixty (60) days from the date of notification by the police department licensees must fulfill the color photograph requirements in section (RECORDS REQUIRED) (8) by submitting them as digital images in a format specified by the issuing authority, electronically cross- referenced to the reportable transaction they are associated with. Notwithstanding the digital images may be captured from required video recordings, this provision does not altar or amend the requirements in subdivision (8). (10) Renewals extensions and redemptions For renewals extensions and redemptions, the licensee shall provide the original transaction identifier, the date of the current transaction, and the type of transaction. (11) Inspection of records The records must at all reasonable times be open to inspection by the'Dolice department or department of licenses and consumer services. Data entries shall APS PAWN ORD LANGUAGE Rev 1.1.doc 6 be retained for at least three (3) vears from the date of transaction Entries of required digital images shall be retained a minimum of ninety (90) days. Daily reports to police. (a) Effective no later than sixty (60) days after the police department Provides licensees with computerized record standards licensees must submit every reportable transaction to the police department daily in the following manner: (1) Licensees must provide to the police department all information required in section (RECORDS REQUIRED) (1) through (6) and other required information by transferring it from their computer to the Automated Pawn System via modem All required records must be transmitted completely and accurately after the close of business each day in accordance with standards and Drocedures 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. (b) Billable transaction fees. Licensees will be charged for each billable transaction reported to the police department. (1) If a licensee is unable to successfully transfer the required reports by modem the licensee must provide the police department printed copies of all reportable transactions along with the video tave(s)for that date. by 12: 00 the next business day: (2) 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 as detailed in section (DAILY REPORTS TO POLICE) (b)(1) and must be charged a frftv dollar($50.00) reporting failure penalty, daily, until the error is corrected: or (3) If the problem is determined to be outside the licensee's system the licensee must provide the required reports in (DAILY REPORTS TO POLICE) (b)(1) and resubmit all such transaction via modem when the error is corrected. MY a licensee is unable to capture digitize or transmit the Photographs required in (RECORDS REQUIRED) (9). 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 County Sheriff upon request (5) 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 (5) (DAILY REPORTS TO POLICE) (b) (1)through (3) notwithstanding the police department may, upon Presentation of extenuating circumstances delay the implementation of the daily reporting Penalty. Receipt required. Every licensee must Provide a receipt to the party identified in every reportable transaction and must maintain a duplicate of that receipt for three (3)years The receipt must include at least the following information: (1) The name, address and telephone number of the licensed business (2) The date and time the item was received by the licensee APS PAWN ORD LANGUAGE Rev 1.1.doc 7 (3) Whether the item was pawned or sold, or the nature of the transaction. (4) An accurate description of each item received including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item. (5) The signature or unique identifier of the licensee or employee that conducted the transaction. (6) The amount advanced or paid. (7) The monthly and annual interest rates, including all pawn fees and charges. (8) The last regular day of business 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. (9) The full name, current residence address, current residence telephone number, and date of birth of the pledger or seller. (10) The identification number and state of issue from any of the following forms of identification of the seller: a. Current valid Minnesota driver's license. b. Current valid Minnesota identification card. c. Current valid photo driver's license or identification card issued by another state or province of Canada. (11) Description of the pledger or seller including approximate sex, height, weight, race, color of eves and color of hair. (12) The signature of the pledger or seller. (13)All printed statements as required by state statute 325J.04 subdivision 2, or any other applicable statutes. Redemption period. (STATE STATUTE 325JALLOWS COMMUNITIES TO SET MINIMUM REDEMPTION PERIOD AT NO LESS THAN SIXTY(60)DAYS). NINETY DAYS (90) IS MOST COMMON) Any person pledging. pawning or depositing an item for security must have a minimum of ninety (9O) days from the date of that transaction to redeem the item before it may be forfeited and sold. During the ninety(90) day holding period, items may not be removed from the licensed location except as provided in (BUSINESS AT ONLY ONE PLACE). Licensees are prohibited from redeeming any item to anyone other than the person to whom the receipt was issued or, to any person identified in a written and notarized authorization to redeem the voperty identified in the receipt, or to a person identified in writing by the pledger at the time of the initial transaction and signed by the pledger, or with approval of the police license inspector. Written authorization for release of property to persons other than original pledger must be maintained along with original transaction record in accordance with (RECORDS REQUIRED) (10). Holding period. (THE HOLDING PERIOD ONLY APPLIES TO THOSE ITEMS A PAWNBROKER BUYS OR TAKES IN TRADE. THIRTY DAYS IS THE MINIMUM AMOUNT OF APS PAWN ORD LANGUAGE Rev 1.1.doc 8 TIME NEEDED FOR VICTIMS TO REPORT THEIR LOSS AND LAW ENFORCEMENT TO MAKE COMPARISONS.) Any item purchased or accepted in trade by a licensee must not be sold or otherwise transferred for thirty(30)days from the date of the transaction. An individual may redeem an item seventy- two (72) hours after the item was received on deposit, excluding Sundays and legal holidays. Police order to hold property. (a) Investigative hold. Whenever a law enforcement official from any agency notifies a licensee not to sell an item, the item must not be sold or removed from the premises.The investigative hold shall be confirmed in writing by the originating agency within seventy-two (72) hours and will remain in effect for fifteen (15)days from the date of initial notification, or until the investigative order is canceled, or until an order to hold/confiscate is issued, pursuant to [section) (POLICE ORDER TO HOLD PROPERTY) (b), whichever comes first. (b)Order to hold. Whenever the chief of police, or the chiefs designee notifies a licensee not to sell an item, the item must not be sold or removed from the licensed premises until authorized to be released by the chief or the chiefs designee. The order to hold shall expire ninety (90) days from the date it is placed unless the chief of police or the chiefs designee determines the hold is still necessary and notifies the licensee in writing. (c)Order to confiscate. If an item is identified as stolen or evidence in a criminal case the chief or chiefs designee may: (1) Physically confiscate and remove it from the shop pursuant to a written order from the chief or the chiefs designee, or (2) Place the item on hold or extend the hold as provided in (POLICE ORDER TO HOLD PROPERTY) (b), and leave it in the shop. When an item is confiscated the person doing so shall provide identification upon request of the licensee, and shall provide the licensee the name and Dhone number of the confiscating agency and investigator, and the case number related to the confiscation. When an order to hold/confiscate is no longer necessary, the chief of police or chiefs designee shall so notify the licensee. Inspection of items. At all times during the terms of the license, the licensee must allow law enforcement officials to enter the Dremises where the licensed business is located, including all off-site storage facilities as authorized in (BUSINESS AT ONLY ONE PLACE) during normal business hours except in an emergency, for the purpose of inspecting such premises and inspecting the items, ware and merchandise and records therein to verify compliance with this chapter or other applicable laws. Label required. Licensees must attach a label to every item at the time it is pawned purchased or received in inventory from any reportable transaction. Permanently recorded on this label must be the number or name that identifies the transaction in the shop's records the transaction date, the name of the item and the description or the model and serial number of the item as reported to the police department, whichever is applicable, and the date the item is out of pawn or can be sold, if applicable. Labels shall not be re-used. Prohibited acts. (a) No person under the age of eighteen (18) years may pawn or sell or attempt to pawn or sell goods with any licensee, nor may any licensee receive any goods from a person under the age of eighteen (18)years. APS PAWN ORD LANGUAGE Rev 1.1.doc 9 (b) No licensee may receive any goods from a person of unsound mind or an intoxicated person. (c) No licensee may receive any goods, unless the seller presents identification in the form of a valid driver's license, a valid State of Minnesota identification card, or current valid photo driver's license or identification card issued by the state or providence of residency of the person from whom the item was received. (d) No licensee may receive any item of property that possesses an altered or obliterated serial number or operation identification number or any item of property that has had its serial number removed. (e) No person may pawn, pledge, sell, consign, leave, or deposit any article of property not their own; nor shall any person pawn, pledge, sell, consign, leave, or deposit the property of another, whether with permission or without; nor shall any person pawn, pledge, sell, consign, leave, or deposit any article of property in which another has a security interest; with any licensee. (f) No person seeking to pawn, pledge, sell, consign, leave, or deposit any article of property with any licensee shall give a false or fictitious name; nor give a false date of birth; nor give a false or out of date address of residence or telephone number, nor present a false or altered identification, or the identification of another; to any licensee. Denial, suspension or revocation. Any license under this chapter may be denied, suspended or revoked for one or more of the following reasons: (1) The proposed use does not comply with the any applicable zoning code. (2) The proposed use does not comply with any health, building, building maintenance or other provisions of this Code of Ordinances or state law. (3) The applicant or licensee has failed to comply with one or more provisions of this chapter. (4) The applicant is not a citizen of the United States or a resident alien, or upon whom it is impractical or impossible to conduct a background or financial investigation due to the unavailability of information. (5) Fraud, misrepresentation or bribery in securing or renewing a license. (6) Fraud, misrepresentation or false statements made in the application and investigation for, or in the course of, the applicant's business. (7) Violation within the preceding five (5)years, of any law relating to theft, damage or trespass to property, sale of a controlled substance, or operation of a business. (8) The owner of the premises licensed or to be licensed would not qualify for a license under the terms of this chapter. Business at only one place.A license under this chapter authorizes the licensee to cant'on its business only at the permanent place of business designated in the license: However, upon written request, the police license inspector may approve an off-site locked and secured storage facility. The licensee shall permit inspection of the facility in accordance with (INSPECTION OF APS PAWN ORD LANGUAGE Rev 1.1.doc 10 ITEMS). All provisions of this chapter regarding record keeping and reporting apply to the facility and its contents. Property shall be stored in compliance with all provisions of the city code. The licensee must either own the building in which the business is conducted, and any approved off- site storage facility, or have a lease on the business premise that extends for more than six (6) months. Separability. Should any section, subsection, 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. APS PAWN ORD LANGUAGE Rev 1.1.doc 11 15 CHAPTER 321. SECONDHAND DEALERS* *Editor's note--Ord. No. 98-Or-058, § 1, adopted June 26, 1998, repealed Ch. 321, in its entirety, which pertained to secondhand dealers. Ord. No. 98-Or-059, § 1, adopted June 26, 1998, amended the Code by adding provisions designated as a new Ch. 321 to read as herein set out. See the Code Comparative Table. Charter references)--Authority to license and regulate pawnbrokers, secondhand dealers and junk dealers, Ch. 4, § 5(1). State law reference(s)--Misconduct of pawnbrokers, M.S. §609.81; misconduct of junk or secondhand dealers, §609.815. ARTICLE I. SECONDHAND DEALERS 321.10. Definitions. As used in this article: Auction house dealer shall mean any secondhand dealer where some, or all, of the secondhand merchandise is offered for sale for the highest bid or offer tendered. If the sale is conducted by means of an auction, the auctioneer must be properly licensed and bonded in accordance with applicable laws. Billable transaction shall mean every reportable transaction conducted by a secondhand dealer, regardless of the number of items received in that transaction. Business manager shall mean a person(s) designated by the licensee to operate a business in the licensee's absence. A licensee must designate a manager to operate the licensed business if the licensee does not personally provide on-site supervisory services at the business at least sixty-four(64) hours per month. Consignment shall mean a written agreement between a dealer and a seller that enables the dealer to take temporary possession of secondhand property, owned by the seller, for the purpose of offering it for sale to the public. Agreement shall state the terms under which the seller will be compensated, and the amount of that compensation. Dealer shall mean any natural person, partnership or corporation, either as principal or agent or employee thereof, licensed under this article. Precious gems shall mean any gem that is valued for its character, rarity, beauty or quality, including diamonds, rubies, emeralds, sapphires or pearls, or any other such precious gems or stones, whether as a separate item or in combination as a piece of jewelry or other crafted item. Precious metals shall mean gold, silver, platinum, and sterling silver, whether as a separate item or in combination as a piece of jewelry or other crafted item, except items plated with precious metal(s) and the plating equals less than one (1) percent of the items total weight. Receive shall mean to purchase, accept for sale on consignment, broker, or receive in trade for an item of equal or lesser value, any tangible personal property previously owned, used, rented or leased. Recordable transaction shall mean every transaction conducted by a secondhand dealer in which merchandise defined in section 321.100 is received, offered for sale, or intended for sale, whether inside or outside the City of Minneapolis. Reportable transaction shall mean every transaction conducted by a secondhand dealer, inside the City of Minneapolis, in which merchandise defined in section 321.110(a) is received, and for which a daily report to the police department is required. Secondhand dealer shall mean any natural person, partnership or corporation, either as principal or agent or employee thereof, whose regular business includes selling or receiving tangible personal properties, excluding motor vehicles, previously owned, used, rented or leased. The term secondhand dealer shall include auction house dealers. Unique identirier shall mean a serial number, identification number, model number, owner applied identifier or engraving, `operation ID" number or symbol, or other unique marking. (98- Or-059, § 1, 6-26-98) 321.20. License required. No person shall engage in the business of secondhand dealer without a secondhand dealer license. No secondhand dealer license may be transferred to a different location or a different person. Licenses shall be conspicuously displayed. Issuance of a license under this article shall not relieve the dealer from obtaining any other licenses required to conduct business at the same or any other locations. A secondhand goods dealer licensed under this article shall also obtain a precious metal dealers license if required to do so under Chapter 322. Persons licensed under Chapter 324 shall not be eligible for a license under this chapter for the same location. (98-Or-059, § 1, 6-26-98) 321.30. Exceptions. The following transactions shall not require a license under this article: (a) The sale of secondhand goods at events commonly known as "garage sales", "yard sales" or"estate sales"where all of the following are present: (1) The sale is held on property occupied as a dwelling by the seller or owned, rented or leased by a charitable or political organization. (2) The occupant owns the items offered for sale and that none of the items offered for sale shall have been purchased for resale or received on consignment for purpose of resale. (3) The owner of the property conducts the sale and receives all proceeds from the sale. (4) That no sale exceeds a period of seventy-two (72) consecutive hours. That no more than two (2) sales are held in any twelve (12) month period at any residential dwelling. (b) The sale or receipt of secondhand books, magazines, post cards, postage stamps, or philatelic material. (c) Goods sold at the public market pursuant to the provisions of Chapter 202 of the Minneapolis Code of Ordinances. (d) Transactions conducted by an antique dealer licensed under Article 11 of this chapter. (e) Goods sold at an exhibition pursuant to Article III of this chapter. (f) Transactions conducted by a precious metals dealer licensed under Chapter 322 of the Minneapolis Code of Ordinances, and for which a precious metal dealers license is required. (g) Transactions conducted by a pawnbroker licensed under Chapter 324 of the Minneapolis Code of Ordinances. (h) Transactions conducted by a used auto part dealer licensed under Chapter 348 of the Minneapolis Code of Ordinances. (98-Or-059, § 1, 6-26-98) 321.40. License classifications. (a) Licenses renewed under provisions of this article shall be classified first according to the number of transactions submitted annually to the police department during the twelve (12) month period ending thirty (30) days prior to their renewal date, and then by the type of license. The classifications shall be: (1) Class A--Dealers that submitted four hundred (400) or more transactions. (2) Class B--Dealers that submitted fewer than four hundred (400)transactions. (b) All new licenses issued pursuant to this article after July 1, 1998 shall be deemed to be Class A licenses unless: (1) Applicant's business plan clearly indicates business will conduct fewer than four hundred (400) reportable transactions in any consecutive twelve (12) month period, or (2) If the applicant has any ownership, management or financial interest in any other businesses licensed under Chapters 321, 322 or 324, and the total number of reportable transactions from all businesses licensed pursuant to these chapters, including the current application, is fewer than four hundred (400) in any consecutive twelve (12) month period. (c) All new Class B licenses issued pursuant to this article after July 1, 1998 shall be monitored by the police license inspector and upgraded to a Class A license whenever four hundred (400) or more reportable transactions are, or should have been, submitted within any twelve (12) consecutive month period. Licensees shall be subject to all applicable Class A fees and regulations sixty (60) days after being notified in writing of the upgrade, but not sooner than January 1, 1999. (98-Or-059, § 1, 6-26-98) 321.50. License fees. (a) The annual license fees for licenses issued under this article shall be as follows: (1) For all Class A Secondhand Dealers and Auction House Dealers—Two hundred and twenty-five dollars ($225.00). (2) For all Class B Secondhand Dealers and Auction House Dealers--Two hundred and twenty-five dollars ($225.00). (b) The billable transaction fee shall be classified according to the medium by which daily reports required by section 321.110 are submitted to the police department These classifications shall be as follows: (1) Modem. Required of all Class A dealers, optional for Class B dealers. (2) Manual. Required of all Class B dealers who do not fulfill Class A reporting requirements. (c) The billable transaction license fee shall reflect the cost of processing transactions from the respective classifications and other related regulatory expenses as determined by the city council, and shall be reviewed and adjusted, if necessary, every six (6) months. Dealers shall be notified in writing thirty (30) days before any adjustment is implemented. The billable transaction fee for modem transactions shall not exceed the billable transaction fee for manual transactions. (1) The initial billable transaction fee for modem transaction shall be one dollar fifty cents ($1.50) per transaction, regardless of the number of items in that transaction. (2) The initial billable transaction fee for manual transaction shall be two dollars fifty cents ($2.50) per transaction, regardless of the number of items in that transaction. (d) Billable transaction fees shall be billed monthly and are due and payable within thirty (30) days. Failure to pay in accordance with these terms is a violation of this article. (98-Or-059, § 1, 6-26-98) 321.60. Investigation fee. An applicant for a new license under this article, or for the renewal of an existing license that is more than six (6) months past due, or for a new manager as specified in section 321.90, subd. (b), shall reimburse the city for any extraordinary costs or investigative expenses involved in verifying the license application or assuring compliance with this ordinance. When the police license inspector or the inspector's designee determine an application may require extraordinary investigative expenses, the applicant will be notified and given the opportunity to withdraw the application. If the investigation process is conducted solely within the State of Minnesota, the fee shall not exceed five hundred dollars ($500.00). If the investigation is conducted outside the State of Minnesota, the issuing authority may recover the actual investigation costs not exceeding ten thousand dollars ($10,000.00). (98-Or-059, § 1, 6- 26-98) 321.70. Expiration of license. All licenses shall expire on July 1st. (98-Or-059, § 1, 6-26-98) 321.80. Application required. (a) Contents. Every applicant for a license defined in this article must submit a complete and accurate application on forms provided by the department of licenses and consumer services. All applicants, in addition to a general personal and criminal history, shall be required to submit adequate information to enable a fair determination of their eligibility to hold the license for which they are applying, including: (1) Whether the applicant holds a current secondhand dealer, precious metal dealer, antique dealer or pawnbroker license from this or any other governmental unit. (2) Whether the applicant has previously been denied, or had revoked or suspended, a secondhand dealer, precious metal dealer, antique dealer or pawnbroker license from this or any other governmental unit. (3) The location of the business premises. (4) The location at which the applicant's business records are maintained. (5) If the applicant does not own the business premises, a true and complete copy of the executed lease, and the legal description of the premises to be licensed. (6) Whether all real estate and personal property taxes that are due and payable for the premises to be licensed have been paid, and if not paid, the years and amounts which are unpaid. (7) Whenever the application is for premises either planned or under construction or undergoing substantial alteration, the application must be accompanied by a set of preliminary plans showing the design of the proposed premises to be licensed. (8) The applicants hours of operation, on-site management and parking facilities. (9) An executed data privacy advisory and consent form authorizing the release of criminal history information. (10) Such other information as the city council or issuing authority may require. (b) New manager. When a dealer places a manager in charge of a business, or if the named manager(s) in charge of a licensed business changes, the dealer must complete and submit the appropriate application, on forms provided by the department of licenses and consumer services, within fourteen (14) days of the change. The application must include all appropriate information required in section 321.80. (c) Application execution. All applications for a license under this ordinance must be signed and sworn to under oath or affirmation by the applicant. If the application is that of a natural person, it must 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. (d) Investigation. The police license inspector shall investigate into the truthfulness of the statements set forth in the application and shall endorse the findings thereon. The applicant shall furnish to the police license inspector such evidence as the inspector may reasonably require in support of the statements set forth in the application, or in answer to any questions raised by the investigation. (e) Public hearing. The council member of the ward in which the proposed business would be located may request a public hearing at council, or in the evening hours at a location in the approximate vicinity of the proposed location. (f) Persons ineligible for a license. No licenses under this ordinance will be issued to an applicant who is a natural person, a partnership if such applicant has any general partner or managing partner, a corporation or other organization if such applicant has any manager, proprietor or agent in charge of the business to be licensed, if the applicant: (1) Is a minor at the time that the application is filed; (2) Has been convicted of any crime directly related to the occupation licensed as prescribed by Minnesota Statutes, section 364.03, subd. 2, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a dealer under this article as prescribed by Minnesota Statutes, section 364.03, subd. 3; or (3) Is not of good moral character or repute. (98-Or-059, § 1, 6-26-98) 321.90. Bond required. Before a license will be issued for a secondhand dealer, every applicant must submit a five thousand dollar($5,000.00) bond on the forms provided by the department of licenses and consumer services. All bonds must be conditioned that the principal will observe all laws in relation to secondhand dealers, and will conduct business in conformity thereto, and that the principal will account for and deliver to any person legally entitled, any goods which have come into the principal's hand through the principal's business as a secondhand dealer, or in lieu thereof, will pay the reasonable value in money to the person. The bond shall contain a provision that no bond may be canceled except upon thirty (30) days written notice to the city, which shall be served upon the department of licenses and consumer services. (98-Or-059, § 1, 6-26-98) 321.100. Records required. (a) Exempt transactions. The following items, when received by a dealer, are exempt from recording and reporting requirements in this article, regardless of the purchase price paid by the dealer, asking price if consigned or brokered, or value attributed to it if accepted in trade: (1) The receipt 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 secondhand dealer must maintain a record of all such transactions which describes each item, and must identify such items in a manner which relates them to that transaction record. Any identification code used by the dealer must be provided to the police license inspector or the inspector's designee(s) upon request. (2) The sale or receipt of used merchandise donated to recognized non-profit organizations and for which no compensation is paid. (3) The sale or receipt of secondhand household kitchen and laundry appliances. (4) The sale or receipt of secondhand furniture, excluding audio, video and other electronic devices. (5) The sale or receipt of secondhand cookware, glassware and eating utensils that do not contain precious metals. (6) The sale or receipt of secondhand clothing and shoes. (7) The sale or receipt of secondhand infant's, toddler's or children's clothing, appliances, furniture, or safety devices. (b) Recordable transactions. Every dealer, at the time of receipt of any item which has a unique identifier, or is or contains precious metals or gems, regardless of the purchase price, asking price if consigned or brokered, or value attributed to it if accepted in trade, or any other item for which the dealer paid fifteen dollars ($15.00) or more, by check or other consideration, or which the dealer intends to offer for sale, or broker, for thirty dollars ($30.00) or more, and which is not exempted in section 321.100(a), shall immediately and legibly record, using the English language, in ink or other indelible medium in a book, on forms, or in a computerized record approved by the police license inspector, the following information: (1) A complete and accurate description of each item including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item. (2) The purchase price, asking price if consigned, or value attributed to item if accepted in trade, for each item received. (3) Date and time the dealer received the item of property. (4) Full name, residence address, residence telephone number, date of birth, and accurate description of the person from whom the item of property was received, including: sex, height, weight, race, color of eyes and color of hair. (5) The identification number and state of issue from any of the following forms of identification presented by the seller: a. Current valid Minnesota driver's license. b. Current valid Minnesota identification card. C. Current valid photo drivers license or photo identification card issued by another state or province of Canada. (6) The signature of the person identified in the transaction. (7) Class A dealers only. In addition to requirements of section 321.100(b)(1) through (6), effective sixty (60) days from the date of notification by the police license inspector of acceptable video standards, but no sooner than January 1, 1999, all class A dealers must take a color photograph or color video recording of: a. Each customer involved in a reportable transaction as defined in section 321.110(a). b. Every item received which does not have a unique identifier, and which is, or contains, precious metal(s) or precious gem(s). (8) If a photograph is taken, it must be done in a format that will produce a picture at least two (2) inches in length by two (2) inches in width and must be maintained in such a manner that the photograph, if the film is developed, or frame, if the film is exposed but not developed, can be readily matched and correlated with all other records of the transaction to which it relates. Such photographs, or the undeveloped film containing them, must be available to the chief of police or the chiefs designee upon request. The major portion of the photograph must include an identifiable front facial close-up of the person who sold, consigned or traded the item. Items photographed must be accurately depicted. If a video photograph is taken, the video camera must record the person selling, consigning or trading 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 dealer must inform the person that they are being photographed or videotaped by displaying a sign of sufficient size in a conspicuous place on the premises. The dealer must keep the photographs or exposed videotape or film for ninety (90) days. (9) Digitized photographs. Effective sixty (60) days from the date of notification by the police license inspector, but no sooner than July 1., 1999, Class A dealers must fulfill the color photograph requirements in section 321.100(b)(7) by submitting them as digital images, in a format specified by the issuing authority, and electronically cross- referenced to the reportable transaction they are associated with. Notwithstanding the digital images may be captured from required video recordings, this provision does not altar or amend the requirements in section 321.100(b)(7). (10) Inspection of records. The records must at all reasonable times be open to inspection by the police department or department of licenses and consumer services. Records of all transactions shall be retained for at least three (3) years from the date of transaction. Entries of digital images, when implemented, shall be retained a minimum of ninety (90) days. (98-Or-059, § 1, 6-26-98) 321.110. Daily reports to police. (a) Reportable transactions. Except for items received through consignment, or for which payment in full is made with a credit or voucher redeemable for merchandise from the dealer, every dealer shall report daily, to the police department, any recordable transaction in which one (1) or more of the following items is received, regardless of the purchase price, asking price if consigned or brokered, or value attributed to it if accepted in trade: (1) Any item with a unique identifier. (2) Items containing precious metals. (3) Items containing precious gems. (4) Firearms. (5) Any of'the following items for which the dealer paid twenty-five dollars ($25.00) or more, in cash or other consideration, or which the dealer intends to offer for sale, or broker, for fifty dollars ($50.00) or more. a. Electronic audio equipment. b. Electronic video equipment. C. Musical instruments. d. Photographic and optical equipment. e. Electronic office equipment. f. Computers, monitors, printers, scanners and computer hardware. g. Cellular telephones and pagers. h. Outboard motors, inboard drives, and powered golf carts. i. Electric and gas powered yard or garden equipment and tools. j. Electric, pneumatic or hydraulic powered construction or mechanic's equipment or tools. (6) Sporting equipment limited to bicycles, golf clubs, snow boards, skis, ski boots and hockey goalie pads, regardless of the purchase price, asking price if consigned or brokered, or value attributed to them if accepted in trade, or any other item for which the secondhand dealer paid one hundred dollars ($100.00) or more, in cash or other consideration, or which the secondhand dealer intends to offer for sale, or broker, for two hundred dollars ($200.00) or more. (7) Architectural elements, lighting fixtures or lamps that are, or contain, stained, etched, leaded, beveled or art glass, limited to those which the secondhand dealer paid one hundred fifty dollars ($150.00) or more, in cash or other consideration, or which the secondhand dealer intends to offer for sale, or broker, for three hundred dollars ($300.00) or more. (8) Artist signed or artist attributed works of art, other than architectural elements, lighting fixtures or lamps, limited to those for which the secondhand dealer paid two hundred fifty dollars ($250.00) or more, in cash or other consideration, or which the secondhand dealer intends to offer for sale, or broker, for five hundred dollars ($500.00) or more. (b) Method. Dealers must provide to the police department the information required in section 321.100(b)(1) through (6), in writing, on forms approved by the police license inspector, for all reportable transactions. The dealer must display a sign of sufficient size, and in a conspicuous place in the premises, so as to inform all patrons that transactions are reported to the police department daily. Effective sixty (60) days from the date the police license inspector provides dealers with computerized record standards, but no sooner than January 1, 1999, dealers must submit every reportable transaction to the police department daily in the following manner. (1) Class A dealers must, and Class B dealers may, provide to the police department the information required in section 321.100(1) through (5), for all reportable transactions, by transferring it from their computer to the police department via modem. 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 a dial-callback protocol or other procedures that address security concerns of the dealers and the issuing authority. (2) Class B dealers who do not fulfill requirements of section 321.110(b)(1) must provide to the police department the information required in section 321.100(b)(1) through (6), in writing, on forms approved by the police department, by 12:00 noon the first business day following the date of the transaction. (c) Billable transaction fees. Dealers, regardless of class, will be charged for billable transactions at the current rate for the medium by which they were reported to the police department except (1) If a Class A dealer, or a Class B dealer who has consistently reported via modem, is unable to successfully transfer the required reports by modem, the dealer must provide the police department printed copies of all reportable transactions for that date by 12:00 noon the next business day, and must be charged at the modem rate for billable transactions; (2) If the problem is determined to be in the dealers system and is not corrected by the close of the first business day following the failure, the dealer must provide the required reports as detailed in section 321.110(c)(1), and must be charged at the modem rate for transactions through the close of the first business day following the failure, and at the manual rate for all subsequent billable transactions, until the error is corrected; or (3) If the problem is determined to be outside the dealer's system, the dealer must provide the required reports as detailed in section 321.110(c)(1), and will be billed at the modem rate for billable transactions until the error is corrected. (4) If a Class A dealer, or a Class B dealer who has consistently reported via modem, is unable to capture, digitize or transmit the photographs required in section 321.100(7) and (8), when implemented, the dealer shall immediately take all required photographs with a still camera, develop the pictures, cross-reference the photographs to the related transaction, and deliver them to the police department by twelve (12) o'clock noon the next business day. Billable transactions will be charged at the modem rate for transactions through the close of the first business day following the failure, and at the manual rate for all subsequent billable transactions, until the error is corrected. (5) Section 321.110(c)(1) through (5) notwithstanding, the police license inspector may, upon presentation of extenuating circumstances, extend the period that a qualifying dealer is billed at the modem rate for billable transactions. (98-Or-059, § 1, 6-26-98) 321.120. Receipt required. Every dealer must provide a receipt, upon request, to any person from whom they received goods for which a record was required in section 321.100, and must maintain a duplicate of that receipt for three (3) years. The receipt must include sufficient information to enable the police license inspector or the inspector's designee(s) to identify the transaction, and every item related to it, in the dealer's records. (98-Or-059, § 1, 6-26-98) 321.130. Payment by check only. When a dealer buys or otherwise receives an item, payment shall be made by check only, made payable to a named payee who is the actual and identified seller. (98-Or-059, § 1, 6-26-98) 321.140. Holding period. Any item received by a dealer, for which a report to the police is required in section 321.110, shall not be sold or otherwise transferred for thirty (30) days after the date the police receive such report except as provided in section 321.200. Items may not be altered, modified or changed in anyway during the holding period. (98-Or-059, § 1, 6-26-98) 321.150. Police order to hold property. (a) Investigative hold. Whenever a law enforcement official from any agency notifies a dealer not to sell an item, the item must not be sold or removed from the premises. The investigative hold shall be confirmed in writing by the originating agency within seventy-two (72) hours and will remain in effect for fifteen (15) days from the date of initial notification, or until the investigative order is canceled, or until an order to holdconfiscate is issued, pursuant to section 321.150(b), whichever comes first. (b) Order to hold. Whenever the chief of police or the chiefs designee notifies a dealer not to sell an item, the item must not be sold or removed from the licensed premises until authorized to be released by the chief of police or the chief's designee. The order to hold shall expire ninety (90) days from the date it is placed unless the chief of police or the chiefs designee determines the hold is still necessary and notifies the dealer in writing. (c) Order to confiscate. If an item is identified as stolen or evidence in a criminal case, the chief of police or the chief's designee may: (1) Physically confiscate and remove it from the shop, pursuant to a written order from the chief of police or the chief s designee, or (2) Place the item on hold or extend the hold as provided in section 321.150(b), and leave it in the shop. When an item is confiscated, the person doing so shall provide identification upon request of the dealer, and shall provide the dealer the name and phone number of the confiscating agency and investigator, and the case number related to the confiscation. When an order to holdconfiscate is no longer necessary, the chief of police or the chief's designee shall so notify the dealer. (98- Or-059, § 1, 6-26-98) 321.160. Inspection of items. The licensee must allow the police license inspector or the inspector's designee(s) to enter the premises where the licensed business is located or business records are maintained, including all off-site storage facilities as authorized in section 321.200, during normal business hours, except in an emergency, for the purpose of inspecting such premises and inspecting the items, ware and merchandise and records therein to verify compliance with this chapter or other applicable laws. (98-Or-059, § 1, 6-26-98) 321.170. Label required. Dealers must attach a label to every item, for which a report to the police department is required in section 321.110, at the time it is received in inventory. Permanently recorded on this label must be the number or name that identifies the transaction in the dealer's records, the name of the item, and the date the item can be sold. Labels shall not be re-used. (98-Or-059, § 1, 6-26-98) 321.180. Prohibited acts. The following acts are prohibited under this article: (a) No person under the age of eighteen (18) years may sell or consign, or attempt to sell or consign, any goods with any dealer, nor may any dealer receive any goods from a person under the age of eighteen (18) years. (b) No dealer may receive any goods from a person of unsound mind or an intoxicated person. (c) No dealer may receive any goods unless the seller presents one of the following forms of identification: (1) Current valid Minnesota driver's license. (2) Current valid Minnesota identification card. (3) Current valid photo drivers license or photo identification card issued by another state or province of Canada. (d) No dealer may receive any item of property that possesses an altered or obliterated serial number or "operation identification° number, or any item of property that has had its serial number removed. (98-Or-059, § 1, 6-26-98) 321.190. Denial, suspension or revocation. Any license under this article may be denied, suspended or revoked for one or more of the following reasons: (a) The proposed use does not comply with the Minneapolis Zoning Code. (b) The proposed use does not comply with any health, building, building maintenance or other provisions of this Code of Ordinances or state law. (c) The applicant or dealer has failed to comply with one or more provisions of this chapter. (d) The applicant is not a citizen of the United States or a resident alien, or upon whom it is impractical or impossible to conduct a background or financial investigation due to the unavailability of information. (e) Fraud, misrepresentation, or bribery in securing or renewing a license. (f) Fraud, misrepresentation or false statements made in the application and investigation for, or in the course of, the applicant's business. (g) Business practices, or conduct, deemed by the issuing authority to be contrary to the best interests, or safety, of the public. (h) Violation within the preceding five (5) years, of any law relating to theft, damage or trespass to property, sale of a controlled substance, or operation of a business. (i) The owner of the premises licensed or to be licensed would not qualify for a license under the terms of this article. (98-Or-059, § 1, 6-26-98) 321.200. Off-site storage. Upon written request, the police license inspector may approve an off-site locked and secured storage facility. The dealer shall permit inspection of the facility in accordance with section 321.160. All provisions of this article regarding record keeping and reporting apply to the facility and its contents. Property shall be stored in compliance with all provisions of the city code. The dealer must either own the building in which the business is conducted, and any approved off-site storage facility, or have a lease on the business premises. (98-Or-059, § 1, 6-26-98) 321.210. Separability. Should any article, section, subsection, clause or other provision of this ordinance 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. (98-Or-059, § 1, 6-26-98) ARTICLE II. ANTIQUE DEALERS 321.220. Definitions. When used in this article: Antique shall mean any used property offered for sale upon the basis, express or implied, that the value of the property, in whole or in substantial part, is derived from its age or its historical association and exceeds the original value of the item when new. Antique dealer shall mean any natural person, partnership or corporation, either as principal or agent or employee thereof, whose regular business includes selling or receiving goods previously owned, used, rented or leased, and where at least ninety (90) percent, measured according to value, of the used goods on hand at all times, consists of antiques, offered for sale upon the basis, express or implied, that the value of the property, in whole or in substantial part, is derived from its age or its historical association and exceeds the original value of the item when new. For purposes of this article, antique dealer shall include antique mall operator and antique mall dealer unless otherwise delineated. Antique mall dealer shall mean an antique dealer who leases space from, or conducts business at, a location licensed by an antique mall operator. Antique mall operator shall mean any natural person, partnership or corporation, either as principal, or agent thereof, who operates a business at which one (1) or more antique mall dealers are engaged in business by maintaining separate sales space and identifying themselves to the public as individual antique dealers, and where all of the following requirements are met: (a) The business has a single name and address. (b) The business operates in a compact and contiguous space. (c) The business is under the unified control and supervision of one (1) person, partnership, firm or corporation, which shall hold the antique mall operator license. (d) All sales are consummated at a central point or register operated by the antique mall operator and the antique mall operator maintains a comprehensive account of all sales. (e) Each antique mall dealer operating at the antique mall operator's location is properly licensed and complies with all applicable requirements of this article. (f) The antique mall operator maintains a complete and accurate file of the current and valid licenses issued to each of the antique mall dealers conducting business at that location. (g) Individuals, partnerships or corporations that are a part of the business entity licensed as the antique mall operator, and who maintain separate sales space, or identify themselves to the public as an individual antique dealer at that location, are also individually licensed as antique mall dealers. Billable transaction shall mean every reportable transaction conducted by an antique dealer, regardless of the number of items received in that transaction. Business manager shall mean a person(s) designated by the licensee to operate a business in the licensee's absence. A licensee, other than an antique mall dealer, must designate a manager to operate the licensed business if the licensee does not personally provide on-site supervisory services at the business at least sixty-four(64) hours per month. Consignment shall mean a written agreement between a dealer and a seller that enables the dealer to take temporary possession of secondhand property, owned by the seller, for the purpose of offering it for sale to the public. Agreement shall state the terms under which the seller will be compensated, and the amount of that compensation. Dealer shall mean any natural person, partnership or corporation, either as principal or agent or employee thereof, licensed under this article. Precious gems shall mean any gem that is valued for its character, rarity, beauty or quality, including diamonds, rubies, emeralds, sapphires or pearls, or any other such precious gems or stones, whether as a separate item or in combination as a piece of jewelry or other crafted item. Precious metals shall mean gold, silver, platinum, and sterling silver, whether as a separate item or in combination as a piece of jewelry or other crafted item, except items plated with precious metal(s) and the plating equals less than one (1) percent of the items total weight. Receive shall mean to purchase, accept for sale on consignment, broker, or receive in trade for an item of equal or lesser value, any tangible personal property previously owned, used, rented or leased. Recordable transaction shall mean every transaction conducted by a secondhand dealer in which merchandise defined in section 321.310 is received, offered for sale, or intended for sale, whether inside or outside the City of Minneapolis. Reportable transaction shall mean every transaction conducted by an antique dealer, inside the City of Minneapolis, in which merchandise defined in section 321.320(a) is received, and for which a daily report to the police department is required. Unique identifier shall mean a serial number, identification number, model number, owner applied identifier or engraving, "operation ID" number or symbol, or other unique marking. (98- Or-059, § 1, 6-26-98) 321.230. License required. (a) No person shall engage in the business of antique dealer without a license. No license may be transferred to a different location or a different person. Licenses shall be conspicuously displayed. Issuance of a license under this article shall not relieve the dealer from obtaining any other licenses required to conduct business at the same or any other locations. A dealer licensed under this article shall also obtain a precious metal dealer's license if required to do so under Chapter 322. Persons licensed under Chapter 324 shall not be eligible for a license under this chapter for the same location. (b) Chapter 321.230(a) notwithstanding, antique dealers may receive reportable property at a private residence or other private location, providing they fulfill all applicable requirements in this article. (98-Or-059, § 1, 6-26-98) 321.240. Exceptions. The following transactions shall not require a license under this article: (a) The sale of reportable goods at events commonly known as °garage sales," "yard sales"or"estate sales"where all of the following are present (1) The sale is held on property occupied as a dwelling by the seller or owned, rented or leased by a charitable or political organization. (2) The occupant owns the items offered for sale and that none of the items offered for sale shall have been purchased for resale or received on consignment for purpose of resale. (3) The owner of the property conducts the sale and receives all proceeds from the sale. (4) That no sale exceeds a period of seventy-two (72) consecutive hours. That no more than two (2) sales are held in any twelve (12) month period at any residential dwelling. (b) The sale or receipt of secondhand books, magazines, post cards, postage stamps, or philatelic material. (c) Transactions conducted by a secondhand goods dealer pursuant to Article I of this chapter. (d) Goods sold at an exhibition pursuant to Article III of this chapter. (e) Goods sold at the public market pursuant to the provisions of Chapter 202 of the Minneapolis Code of Ordinances. (f) Transactions conducted by a precious metals dealer licensed under Chapter 322 of the Minneapolis Code of Ordinances, and for which a precious metal dealer's license is required. (g) Transactions conducted by a pawnbroker licensed under Chapter 324 of the Minneapolis.Code of Ordinances. (h) Transactions conducted by a used auto part dealer licensed under Chapter 348 of the Minneapolis Code of Ordinances. (98-Or-059, § 1, 6-26-98) 321.250. License classifications. (a) Licenses renewed under provisions of this article shall be classified first according to the number of transactions submitted annually to the police department during the twelve (12) month period ending thirty (30) days prior to their renewal date, and then by the type of license. The classifications shall be: (1) Class A--Licensees that submitted four hundred (400) or more transactions. (2) Class B--Licensees that submitted fewer than four hundred (400) transactions. (b) All new licenses issued pursuant to this article after July 1, 1998 shall be deemed to be Class A licenses unless: (1) Applicant's business plan clearly indicates business will conduct fewer than four hundred (400) reportable transactions in any consecutive twelve (12) month period, or (2) If the applicant has any ownership, management or financial interest in any other businesses licensed under Chapters 321, 322 or 324, and the total number of reportable transactions from all businesses licensed pursuant to these chapters, including those projected from the new business, is fewer than four hundred (400) in the consecutive twelve (12) month period ending thirty (30) days prior to the date of the new application. All new Class B licenses issued pursuant to this article after July 1, 1998 shall be monitored by the police license inspector and upgraded to a Class A license whenever four hundred (400) or more reportable transactions are, or should have been, submitted within any consecutive twelve (12) month period. Licensees shall be subject to all applicable Class A fees and regulations sixty (60) days after being notified in writing of the upgrade, but not sooner than January 1, 1999. (98-Or-059, § 1, 6-26-98) 321.260. License fees. (a) The annual license fees for licenses issued under this article shall be as follows: (1) For all Class A Antique Dealers--Two hundred twenty-five dollars ($225.00). (2) For all Class B Antique Dealers—Two hundred twenty-five dollars ($225.00). (3) For all Class A Antique Mall Operators--Three hundred twenty-five dollars ($325.00). (4) For all Class B Antique Mall Operators--Three hundred twenty-five dollars ($325.00). (5) For all Class A Antique Mall Dealers--Two hundred twenty-five dollars ($225.00). (6) For Class B Antique Mall Dealers--Sixty dollars ($60.00). (7) For second or subsequent locations for antique mall dealers in which all applicant information is the same as their initial license application, except for the address at which the dealer will conduct business, fifteen dollars ($15.00). (b) The billable transaction fee shall be classified according to the medium by which daily reports required by section 321.320 are submitted to the police department These classifications shall be as follows: (1) Modem. Required of all Class A dealers, optional for Class B dealers. (2) Manua/. Required of all Class B dealers who do not fulfill Class A reporting requirements. (c) The billable transaction fee shall reflect the cost of processing transactions from the respective classifications and other related regulatory expenses as determined by the city council, and shall be reviewed and adjusted, if necessary, every six (6) months. Licensees shall be notified in writing thirty (30) days before any adjustment is implemented. The billable transaction fee for modem transactions shall not exceed the billable transaction fee for manual transactions. (1) The initial billable transaction fee for modem transaction-shall be one dollar fifty cents($1.50) per transaction, regardless of the number of items in that transaction. (2) The initial billable transaction fee for manual transaction shall be two dollars fifty cents ($2.50) per transaction, regardless of the number of items in that transaction. (d) Billable transaction fees shall be billed monthly and are due and payable within thirty (30) days. Failure to pay in accordance with these terms is a violation of this article. (98-Or-059, § 1, 6-26-98) 321.270. Investigation fee. An applicant for a new license under this article, or for the renewal of an existing license that is more than six (6) months past due, or for a new manager as specified in section 321.90, subd. (b), shall reimburse the city for any extraordinary costs or investigative expenses involved in verifying the license application or assuring compliance with this ordinance. When the police license inspector or the inspectors designee determine an application may require extraordinary investigative expenses, the applicant will be noted and given the opportunity to withdraw the application. If the investigation process is conducted solely within the State of Minnesota, the fee shall not exceed five hundred dollars ($500.00). If the investigation is conducted outside the State of Minnesota, the issuing authority may recover the actual investigation costs not exceeding ten thousand dollars ($10,000.00). (98-Or-059, § 1, 6- 26-98) 321.280. Expiration. All licenses in this article shall expire annually every July 1 st. (98-Or-059, § 1, 6-26-98), 321.290. Application required. (a) Contents. Every applicant for a license defined in this article must submit a complete and accurate application on forms provided by the department of licenses and consumer services. All applicants, in addition to a general personal and criminal history, shall be required to submit adequate information to enable a fair determination of their eligibility to hold the license for which they are applying, including all of the following which are reasonably applicable: (1) Whether the applicant holds a current secondhand dealer, precious metal dealer, antique dealer or pawnbroker license from this or any other governmental unit. (2) Whether the applicant has previously been denied, or had revoked or suspended, a secondhand dealer, precious metal dealer, antique dealer or pawnbroker license from this or any other governmental unit. (3) The location of the business premises. (4) The location at which the applicant's business records are maintained. (5) If the applicant does not own the business premises, a true and complete copy of the executed lease, and the legal description of the premises to be licensed. (6) Whether all real estate and personal property taxes that are due and payable for the premises to be licensed have been paid, and if not paid, the years and amounts which are unpaid. (7) Whenever the application is for premises either planned or under construction or undergoing substantial alteration, the application must be accompanied by a set of preliminary plans showing the design of the proposed premises to be licensed. (8) The applicants business plan including, at a minimum, hours of operation, on-site management and parking facilities. (9) An executed data privacy advisory and consent form authorizing the release of criminal history information. (10) Such other information as the city council or issuing authority may require. (b) New manager. When a dealer places a manager in charge of a business, or if the named manager(s) in charge of a licensed business changes, the dealer must complete and submit the appropriate application, on forms provided by the department of licenses and consumer services, within fourteen (14) days of the change. The application must include all appropriate information required in section 321.290. (c) Application execution. All applications for a license under this ordinance must be signed and sworn to under oath or affirmation by the applicant. If the application is that of a natural person, it must 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. (d) Investigation. The police license inspector shall investigate into the truthfulness of the statements set forth in the application and shall endorse the findings thereon. The applicant shall furnish to the police license inspector such evidence as the inspector may reasonably require in support of the statements set forth in the application, or in answer to any questions raised by the investigation. (e) Public hearing. The council member of the ward in which the proposed business would be located may request a public hearing at council, or in the evening hours at a location in the approximate vicinity of the proposed location. (f) Persons ineligible for a license. No licenses under this ordinance will be issued to an applicant who is a natural person, a partnership if such applicant has any general partner or managing partner, a corporation or other organization if such applicant has any manager, proprietor or agent in charge of the business to be licensed, if the applicant: (1) Is a minor at the time that the application is filed; (2) Has been convicted of any crime directly related to the occupation licensed as prescribed by Minnesota Statutes, section 364.03, subd. 2, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a dealer under this article as prescribed by Minnesota Statutes, section 364.03, subd. 3; or (3) Is not of good moral character or repute. (98-Or-059, § 1, 6-26-98) 321.300. Bond required. (a) Antique dealers. Before a license will be issued for an antique dealer, every applicant must submit a five thousand dollar($5,000.00) bond on the forms provided by the department of licenses and consumer services. All bonds must be conditioned that the principal will observe all laws in relation to dealers, and will conduct business in conformity thereto, and that the principal will account for and deliver to any person legally entitled, any goods which have come into the principal's hand through the principal's business as a dealer, or in lieu thereof, will pay the reasonable value in money to the person. The bond shall contain a provision that no bond may be canceled except upon thirty (30) days written notice to the city, which shall be served upon the department of licenses and consumer services. (b) Antique mall operators. Before a license will be issued for an antique mall operator, every applicant must submit a ten thousand dollar ($10,000.00) antique mall operator bond on forms provided by the department of license and consumer services. All antique mall operator bonds must be conditioned that the operator, and all mall antique dealers licensed to conduct business at the operator's location, will observe all laws in relation to dealers, will conduct business in conformity thereto, and that the operator will account for and deliver to any person legally entitled, any goods which have come into the hands of the operator, or the hands of any of its antique mall dealers, through their business as a dealer, or in lieu thereof, will pay the reasonable value in money to the person. The bond shall contain a provision that no bond may be canceled except upon thirty (30) days written notice to the city, which shall be served upon the department of licenses and consumer services. (c) Antique mall dealers. Before a license will be issued for an antique mall dealer, the department of licenses and consumer services must have in its possession a valid antique mall operator bond issued to the licensed antique mall operator at the location for which the applicant is applying. (98-Or-059, § 1, 6-26-98) 321.310. Records required. (a) Exempt transactions. The following item(s), when received by a dealer, are exempt from recording and reporting requirements in this article, regardless of the purchase price paid by the dealer, asking price if consigned or brokered, or value attributed to it if accepted in trade: (1) The receipt 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 secondhand dealer must maintain a record of all such transactions which describes each item, and must identify such items in a manner which relates them to that transaction record. Any identification code used by the dealer must be provided to the police license inspector or the inspectors designee(s) upon request. (2) The sale or receipt of used merchandise donated to recognized non-profit organizations and for which no compensation is paid. (3) The sale or receipt of secondhand clothing and shoes. (b) Recordable transactions. Every dealer, at the time of receipt of any item which the dealer was required to pay for by check, and which has a unique identifier, or is or contains precious metals or gems, regardless of the purchase price, asking price if consigned or brokered, or value attributed to it if accepted in trade, or any other item for which the dealer paid fifteen dollars ($15.00) or more, by check or other consideration, or which the dealer intends to offer for sale, or broker, for thirty dollars ($30.00) or more, and which is not exempted in section 321.310(a), shall immediately and legibly record, using the English language, in ink or other indelible medium in a book, on forms, or in a computerized record approved by the police license inspector, the following information: (1) A complete and accurate description of each item including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item. (2) The purchase price, asking price if consigned, or value attributed to item if accepted in trade, for each item received. (3) Date and time the dealer received the item. (4) Full name, residence address, residence telephone number, date of birth, and accurate description of the person from whom the item of property was received, including: sex, height, weight, race, color of eyes and color of hair. (5) The identification number and state of issue from any of the following forms of identification presented by the seller: a. Current valid Minnesota driver's license. b. Current valid Minnesota identification card. C. Current valid photo driver's license or photo identification card issued by another state or province of Canada. (6) The signature of the person identified in the transaction. (7) Class A dealers only. In addition to requirements of section 321.310(b)(1) through (6), effective sixty (60) days from the date of notification by the police license inspector of acceptable video standards, but no soon than January 1, 1999, all class A dealers must take a color photograph or color video recording of: a. Each customer involved in a reportable transaction as defined in section 321.320(a). b. Every item received that does not have a unique identifier, and which is, or contains, precious metal(s), precious gem(s) or precious stone(s). (8) If a photograph is taken, it must be done in a format that will produce a picture at least two (2) inches in length by two (2) inches in width and must be maintained in such a manner that the photograph, if the film is developed, or frame, if the film is exposed but not developed, can be readily matched and correlated with all other records of the transaction to which it relates. Such photographs, or the undeveloped film containing them, must be available to the chief of police or the chiefs designee upon request. The major portion of the photograph must include an identifiable front facial close-up of the person who sold, consigned or traded the item. Items photographed must be accurately depicted. If a video photograph is taken, the video camera record the person selling, consigning or trading 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 dealer must inform the person that they are being photographed or videotaped by displaying a sign of sufficient size in a conspicuous place on the premises. The dealer must keep the photographs or exposed videotape or film for ninety (90) days. (9) Digitized photographs. Effective sixty (60) days from the date of notification by the police license inspector, but not sooner than July 1, 1999, Class A dealers must fulfill the color photograph requirements in section 321.310(b)(7) by submitting them as digital images, in a format specified by the issuing authority, and electronically cross- referenced to the reportable transaction they are associated with. Notwithstanding the digital images may be captured from required video recordings, this provision does not altar or amend the requirements in section 321.310(b)(7). (10) Inspection of records. The records must at all reasonable times be open to inspection by the police department or department of licenses and consumer services. Records of all transactions shall be retained for at least three (3) years from the date of transaction. Entries of required digital images, when implemented, shall be retained a minimum of ninety (90) days. (98-Or-059, § 1, 6-26-98) 321.320. Daily reports to police. (a) Reportable transactions. Except for items received through consignment, or for which payment in full was made with a credit or voucher redeemable for merchandise from the dealer, every dealer shall report daily, to the police department, any recordable transaction in which one or more of the following items is received, regardless of the purchase price, asking price if consigned or brokered, or value attributed to it if accepted in trade: (1) Any item with a unique identifier. (2) Any item containing precious metals. (3) Any item containing precious gems. (4) Firearms. (5) Any of the following for which the dealer paid two hundred fifty dollars ($250.00) or more, in cash or other consideration, or which the dealer intends to offer for sale, or broker, for five hundred dollars ($500.00) or more. a. Antique audio or video equipment. b. Antique musical instruments. C. Antique photographic and optical equipment. d. Antique sporting equipment. (6) Architectural elements, lighting fixtures or lamps that are, or contain, stained, etched, leaded, beveled or art glass, limited to those which the dealer paid one hundred fifty dollars ($150.00) or more, in cash or other consideration, or which the dealer intends to offer for sale, or broker, for three hundred dollars ($300.00) or more. (7) Artist signed or artist attributed works of art, other than architectural elements, lighting fixtures or lamps, limited to those for which the dealer paid two hundred fifty dollars ($250.00) or more, in cash or other consideration, or which the dealer intends to offer for sale, or broker, for five hundred dollars ($500.00) or more. (b) Method. Dealers must provide to the police department the information required in section 321.310(b)(1) through (6), in writing, on forms approved by the police license inspector, for all reportable transactions. The dealer must display a sign of sufficient size, and in a conspicuous place in the premises, so as to inform all patrons that transactions are reported to the police department daily. Effective sixty (60) days from the date the police license inspector provides dealers with computerized record standards, but no sooner than January 1, 1999, dealers must submit every reportable transaction to the police department daily in the following manner. (1) Class A dealers must, and Class B dealers may, provide to the police department the information required in section 321.310(b)(1) through (5), for all reportable transactions, by transferring it from their computer to the police department via modem. 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 a dial-callback protocol or other procedures that address security concerns of the dealers and the issuing authority. (2) Class B dealers who do not fulfill requirements of section 321.320(b)(1) must provide to the police department the information required in section 321.310(b)(1) through (6), in writing, on forms approved by the police department, by 12:00 noon the first business day following the date of the transaction. (c) Billable transaction fees. Dealers, regardless of class, will be charged for billable transactions at the current rate for the medium by which they were reported to the police department except (1) If a Class A dealer, or a Class B dealer who has consistently reported via modem, is unable to successfully transfer the required reports by modem, the dealer must provide the police department printed copies of all reportable transactions for that date by 12:00 noon the next business day, and must be charged at the modem rate for billable transactions; (2) If the problem is determined to be in the dealer's system and is not corrected by the close of the first business day following the failure, the dealer must provide the required reports as detailed in section 321.320(c)(1), and must be charged at the modem rate for transactions through the close of the first business day following the failure, and at the manual rate for all subsequent billable transactions until the error is corrected; or (3) If the problem is determined to be outside the dealer's system, the dealer must provide the required reports as detailed in section 321.320(c)(1), and will be billed at the modem rate for billable transactions until the error is corrected. (4) If a Class A dealer, or a Class B dealer who has consistently reported via modem, is unable to capture, digitize or transmit the photographs required in section 321.310(b)(7) and (8), when implemented, the dealer shall immediately take all required photographs with a still camera, develop the pictures, cross-reference the photographs to the correct transaction, and deliver them to the police department by twelve (12) o'clock noon the next business day. Billable transactions will be charged at the modem rate for transactions through the close of the first business day following the failure, and at the manual rate for all subsequent billable transactions until the error is corrected. (5) Section 321.320(c)(1) through (5) notwithstanding, the police license inspector may, upon presentation of extenuating circumstances, extend the period that a qualifying antique dealer is billed at the modem rate for billable transactions. (98-Or-059, § 1, 6-26- 98) 321.330. Receipt required. Every dealer must provide a receipt, upon request, to any person from whom they received goods for which a record was required in section 321.310, and must maintain a duplicate of that receipt for three (3) years. The receipt must include sufficient information to enable the police license inspector or the inspector's designee(s) to identify the transaction, and every item related to it, in the dealer's records. (98-Or-059, § 1, 6-26-98) 321.340. Payment by check. When a dealer buys or otherwise receives merchandise at any location other than those identified in section 321.240(a), payment shall be made by check only, made payable to a named payee who is the actual and identified seller. (98-Or-059, § 1, 6-26- 98) 321.350. Holding period. Any item received by a dealer, for which a report to the police is required in section 321.320, shall not be sold or otherwise transferred for thirty (30) days after the date the police receive such report except as provided in section 321.410. Items may not be altered, modified or changed in anyway during the holding period. (98-Or-059, § 1, 6-26-98) 321.360. Police order to hold property. (a) Investigative hold. Whenever a law enforcement official from any agency notifies a dealer not to sell an item, the item must not be sold or removed from the premises. The investigative hold shall be confirmed in writing by the originating agency within seventy-two (72) hours and will remain in effect for fifteen (15) days from the date of initial notification, or until the investigative order is canceled, or until an order to holdconfiscate is issued, pursuant to section 321.150(b), whichever comes first. (b) Order to hold. Whenever the chief of police or the chief's designee notifies a dealer not to sell an item, the item must not be sold or removed from the licensed premises until authorized to be released by the chief of police or the chiefs designee. The order to hold shall expire ninety (90) days from the date it is placed unless the chief of police or the chief's designee determines the hold is still necessary and notifies the antique dealer in writing. (c) Order to confiscate. If an item is identified as stolen, or evidence in a criminal case, the chief of police or the chiefs designee may: (1) Physically confiscate and remove it from the shop, pursuant to a written order from the chief of police or the chief's designee, or (2) Place the item on hold or extend the hold as provided in section 321.360(a), and leave it in the shop. When an item is confiscated, the person doing so shall provide identification upon request of the licensee, and shall provide the licensee the name and phone number of the confiscating agency and investigator, and the case number related to the confiscation. When an order to holdconfiscate is no longer necessary, the chief of police or the chief's designee shall so notify the licensee. (98-Or-059, § 1, 6-26-98) 321.370. Inspection of items. The licensee must allow the police license inspector or the inspector's designee(s) to enter the premises where the licensed business is located or business records are maintained, including all off-site storage facilities as authorized in section 321.390, during normal business hours, except in an emergency, for the purpose of inspecting such premises and inspecting the items, ware and merchandise and records therein to verify compliance with this chapter or other applicable laws. (98-Or-059, § 1, 6-26-98) 321.380. Label required. Dealers must attach a label to every item, for which a report to the police department is required in section 321.320, at the time it is received in inventory. Permanently recorded on this label must be the number or name that identifies the transaction in the dealer's records, the name of the item, and the date the item can be sold. Labels shall not be re-used. (98-Or-059, § 1, 6-26-98) 321.390. Prohibited acts. The following acts are prohibited under this article: (a) No person under the age of eighteen (18) years may sell or consign, or attempt to sell or consign, any goods with any dealer, nor may any dealer receive any goods from a person under the age of eighteen (18) years. (b) No dealer may receive any goods from a person of unsound mind, or an intoxicated person. (c) No dealer may receive any goods for which payment by check is required in section 321.340 unless the seller presents one of the following forms of identification: (1) Current valid Minnesota driver's license. (2) Current valid Minnesota identification card. (3) Current valid photo driver's license or photo identification card issued by another state or province of Canada. (d) No dealer may receive any item of property that possesses an altered or obliterated serial number or "operation identification" number, or any item of property that has had its serial number removed. (98-Or-059, § 1, 6-26-98) 321.400. Denial suspension or revocation. Any license under this article may be denied, suspended or revoked for one (1) or more of the following reasons: , (a) The proposed use does not comply with the Minneapolis Zoning Code. (b) The proposed use does not comply with any health, building, building maintenance or other provisions of this Code of Ordinances or state law. (c) The applicant or licensee has failed to comply with one (1) or more provisions of this chapter. (d) The applicant is not a citizen of the United States, or a resident alien, or upon whom it is impractical or impossible to conduct a background or financial investigation due to the unavailability of information. (e) Fraud, misrepresentation, or bribery in securing or renewing a license. (f) Fraud, misrepresentation or false statements made in the application and investigation for, or in the course of, the applicant's business. (g) Business practices, or conduct, deemed by the issuing authority to be contrary to the best interests, or safety, of the public. (h) Violation within the preceding five (5) years, of any law relating to theft, damage or trespass to property, sale of a controlled substance, or operation of a business. (i) The owner of the premises licensed or to be licensed would not qualify for a license under the terms of this article. (98-Or-059, § 1, 6-26-98) 321.410. Off-site storage. Upon written request, the police license inspector may approve an off-site locked and secured storage facility. The antique dealer shall permit inspection of the facility in accordance with section 321.370. All provisions of this article regarding record keeping and reporting apply to the facility and its contents. Property shall be stored incompliance with all provisions of the city code. The licensee must either own the building in which the business is conducted, and any approved off-site storage facility, or have a lease on the business premises. (98-Or-059, § 1, 6-26-98) 321.420. Separability. Should any article, section, subsection, clause or other provision of this ordinance 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. (98-Or-059, § 1, 6-26-98) ARTICLE III. EXHIBITIONS 321.430. Definitions. As used in this article: Exhibition shall mean a temporary exhibition, convention, show or exposition of secondhand goods by any person, partnership, corporation or association. No exhibition shall be held for more than five (5) consecutive calendar days. No more than twelve (12) exhibitions may be held at a single location, other than the Minneapolis Convention Center, in a calendar year. Exhibition operator shall mean any natural person, partnership, corporation or .association, either as principal or agent or employee thereof, who organizes, promotes or conducts an exhibition. Exhibitor shall mean any natural person, partnership, corporation or association, either as principal or agent or employee thereof, whom offers used or previously owned merchandise for sale at an exhibition. (98-Or-059, § 1, 6-26-98) 321.440. Permit required. (a) No person, partnership, corporation or association shall hold an exhibition without first obtaining an exhibition operator permit. No person, partnership, corporation or association shall sell, or offer for sale, used or previously owned merchandise, at an exhibition, without first obtaining an exhibitor permit. Applications for exhibitor permits will not be accepted prior to receipt of the application from the exhibition operator. Exhibition operator permits shall only be valid for the dates and location of a single, speck exhibition, and for a maximum of five (5) consecutive days. Exhibitor licenses shall expire annually on December 31st or the last day of the exhibition if it includes both December 31 st and January 1 st of consecutive years. (b) Exhibitors shall post their permit in a conspicuous manner in their display or sales area of the exhibition, and shall maintain such posting for the duration of the exhibition. (c) Whenever two (2) or more exhibitors share a common display area at an exhibition, each is required to have a valid exhibitor license. (d) Exhibition operator and exhibitor permits shall be reviewed and approved; or denied, by the director of licenses and consumer services, in accordance with section 321.530 of this article. (98-Or-059, § 1, 6-26-98; 99-Or-070, § 1, 6-25-99) 321.450. Exceptions. The following transactions shall not require a permit under this article: (a) The sale or receipt of used merchandise donated to recognized non-profit organizations and for which no compensation is paid. (b) The sale of secondhand books, magazines or postage stamps. (c) Goods sold at the public market pursuant to the provisions of Chapter 202 of the Minneapolis Code of Ordinances. (d) The sale used motor vehicles by licensed dealers. (e) The sale of numismatic related articles, including but not limited to, coins, currency, tokens, medals and other such related collectibles if the exhibition operator is a nationally recognized non-profit-numismatic society or association and the exhibition is held at the Minneapolis Convention Center. (98-Or-059, § 1, 6-26-98; 99-Or-054, § 1, 5- 21-99) 321.460. Exhibition operator permit classification. (a) Exhibition operator permits issued under this article shall be classified by the number of exhibitors that participate in the exhibition. (1) Class A exhibition operator permits shall be required for any exhibition with more than seventy-five (75) exhibitors. (2) Class B exhibition operator permits shall be required for any exhibition with fifty (50) to seventy-four(74) exhibitors. (3) Class C exhibition operator permits shall be required for any exhibition with fewer than fifty (50) exhibitors. (99-Or-070, §2, 6-25-99) 321.470. Permit fees. The fees for permits issued under this article shall be: (a) Class A exhibition operator. For complete and accurate applications received by the department of licenses and consumer services at least thirty (30) days prior to the first day of the exhibition, the permit fee shall be seven hundred fifty dollars ($750.00). (1) If the application is received, or remains,incomplete or inaccurate, less than thirty (30) days prior to the first day of the exhibition, a seventy-five dollar ($75.00)late fee will be assessed. (b) Class B exhibition operator. For complete and accurate applications received by the department of licenses and consumer services at least thirty (30) days prior to the first day of the exhibition, the permit fee shall be five hundred dollars ($500.00). (1) If the application is received, or remains incomplete or inaccurate, less than thirty (30) days prior to the first day of the exhibition, a fifty dollar ($50.00) late fee will be assessed. (c) Class C exhibition operator. For complete and accurate applications received by the department of licenses and consumer services at least thirty (30) days prior to the first day of the exhibition, the permit fee shall be two hundred fifty dollars ($250.00). (1) If the application is.received, or remains incomplete or inaccurate, less than thirty (30) days prior to the first day of the exhibition, a twenty-five dollar ($25.00) late fee will be assessed. (d) If the total number of exhibitors at an exhibition exceeds the number allowed under the exhibition operator's permit, a new permit for the correct classification will be issued and any additional fees will be due and payable prior to the opening of the exhibition. (e) Exhibitor. For complete and accurate applications received by the department of licenses and consumer services at least seven (7) business days prior to the first day of the first exhibition the exhibitor participates in on or after January 1st each year, the permit fee shall be forty-five dollars ($45.00). If the applicant is currently licensed under Chapter 321 Article I, II or III, Chapter 322 or Chapter 324, no permit fee shall be required. (1) If the application is received, or remains incomplete or inaccurate, less than seven (7) business days prior to the first day of the first exhibition the exhibitor participates in, on or after January 1st each year, a fifteen dollar ($15.00) late fee will be assessed. (2) Section 321.470 (e)(1) notwithstanding, all applications must be submitted, completely and accurately, to the department of licenses and consumer services, prior to 3:00 p.m. of the second business day prior to opening of the first exhibition the exhibitor participates in, on or after January 1st each year. (98-Or-059, § 1, 6-26-98; 99-Or-070, § 3, 6-25-99) 321.480. Application required. (a) Contents. Every applicant for a permit or license defined in this article must submit a complete and accurate application on forms provided by the department of licenses and consumer services. All applicants, in addition to a general personal and penal history, shall be required to submit adequate information to enable a fair determination Qf their eligibility to hold the permit for which they are applying, including: (1) For exhibition operator permit applicants, the location, dates and times of the proposed exhibition. (2) Whether the applicant holds a current secondhand dealer, precious metal dealer, antique dealer or pawnbroker license from this or any other governmental unit. (3) Whether the applicant has previously been denied, or had revoked or suspended, a secondhand dealer, precious metal dealer, antique dealer, pawnbroker license or exhibition license or permit from this or any other governmental unit. (4) The location at which the applicant's business records are maintained. (5) An executed data privacy advisory and consent form authorizing the release of .criminal history information. (6) Applicants for exhibition operator permits must include a complete list of all exhibitors known to them at the time that they make application, including their business name, complete address, phone number and whether they are currently licensed as an exhibitor. a. If exhibition operator is granted, fifteen (15) days prior to the first day of the exhibition, the operator must submit an updated list to the department of licenses and consumer services of all changes, corrections and additions to the list of known exhibitors submitted with their initial application. b. Exhibition operators must provide a final and complete list of all exhibitors by 3:00 p.m. of the last business day prior to the opening date of the exhibition. (7) Such other information as the city council or issuing authority may require. (b) Application execution. All applications for a permit under this ordinance must be signed and sworn to under oath or affirmation by the applicant. If the application is that of a natural person, it must be signed and sworn to by such person; if that of a corporation, by an officer thereof; if that of a partnership, by one (1) of the general partners; and if that of an unincorporated association, by the manager or managing officer thereof. (c) Investigation. The police license inspector shall investigate into the truthfulness of the statements set forth in the application and shall endorse the findings thereon. The applicant must furnish to the police license inspector such evidence as the inspector may reasonably require in support of the statements set forth in the application, or in answer to any questions raised by the investigation. (98-Or-059, § 1, 6-26-98; 99-Or-070, § 4, 6-25-99) 321.490. Bond required. (a) Exhibition operator. Before a permit will be issued for an exhibition operator, every applicant must submit a ten thousand dollar($10,000.00) exhibition operator bond on forms provided by the department of license and consumer services. All exhibition operator bonds must be conditioned that the operator, and all exhibitors permitted to conduct business at the exhibition, will observe all laws in relation to exhibition operators and exhibitors, will conduct business in conformity thereto, and that the operator will account for and deliver to any person legally entitled, any goods which have come into the hands of the operator, or the hands of any of its exhibitors, through their business as an exhibition operators or exhibitors, or in lieu thereof, will pay the reasonable value in money to the person. The bond shall contain a provision that no bond may be canceled except upon thirty (30) days written notice to the city, which shall be served upon the department of licenses and consumer services. (b) Exhibitor. Before a permit will be issued for an exhibitor, the department of licenses and consumer services must have in its possession a valid exhibition operator bond issued to the exhibition operator permitted at the location for which the applicant is applying. (98-Or-059, § 1, 6-26-98; 99-Or-070, § 5, 6-25-99) 321.500. Records required. Every exhibitor at an exhibition shall maintain a permanent record of the following information for all goods exhibited: (a) An accurate description of the item; including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such item. (b) Purchase price. (c) Date, time and place of receipt. (d) Name and residence address of the person from whom the item was received. The records required under this section shall be made available for inspection upon request by the police department or the department of licenses and consumer services. Entries shall be maintained for at least three (3) years. (98-Or-059, § 1, 6-26-98; 99-Or-070, §6, 6-25-99) 321.510. Prohibited acts. No exhibitor may purchase or otherwise receive any secondhand goods item at an exhibition except from another licensed exhibitor at the exhibition. (98-Or-059, § 1, 6-26-98; 99-Or-070, § 7, 6-25-99) 321.520. Police order to hold property. Whenever the chief of police or the chief's designee notifies an exhibition operator or exhibitor not to sell an item, the item shall not be sold or removed from the exhibition. The chief of police or the chief s designee shall confiscate or release the item prior to the close of the exhibition. (98-Or-059, § 1, 6-26-98; 99-Or-070, § 8, 6- 25-99) 321.530. Denial, suspension or revocation. Any permit under this article may be denied, suspended or revoked for one (1) or more of the following reasons: (a) The proposed use does not comply with the Minneapolis Zoning Code. (b) The proposed use does not comply with any health, building, building maintenance or other provisions of this Code of Ordinances or state law. (c) The applicant, exhibition operator or exhibitor has failed to comply with one (1) or more provisions of this article. (d) The applicant is not a citizen of the United States or a resident alien, or upon whom it is impractical or impossible to conduct a background or financial investigation due to the unavailability of information. (e) Fraud, misrepresentation, or bribery in securing or renewing a license. (f) Fraud, misrepresentation or false statements made in the application and investigation for, or in the course of, the applicant's business. (g) Business practices, or conduct, deemed by the issuing authority to be contrary to the best interests, or safety, of the public. (h) Violation within the preceding five (5) years, of any law relating to theft, damage or trespass to property, sale of a controlled substance, or operation of a business. (i) The owner of the premises where the exhibition is planned would not qualify for a license under the terms of this article. (98-Or-059, § 1, 6-26-98; 99-Or-070, §9, 6-25-99) CHAPTER 322. PRECIOUS METAL DEALERS* FRIDLEY CITY CODE CHAPTER 31. PAWNSHOPS (Ref. 970, 1060, 1077, 1137) 31.01 PURPOSE The City council finds that the use of services provided by pawnbrokers provides an opportunity for the commission of crimes and their concealment because pawn businesses have the ability to receive and transfer property stolen by others easily and quickly. The City Council also finds that consumer protection regulation is warranted in transactions involving pawnbrokers. The City Council also finds that consumer protection regulation is warranted in transactions involving pawnbrokers. The City Council further finds that the pawn industry has outgrown the City's current ability to effectively or efficiently identify criminal activity related to pawn shops. The purpose of this chapter is to prevent pawn businesses from being used as facilities for the commission of crimes and to assure that such businesses comply with basic consumer protection standards, thereby protecting the public health, safety, and general welfare of the citizens of the City. To help the police department 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). 31.02 DEFINITIONS The following words and terms when used in this Chapter shall have the following meanings: 1. Licensee. The person, corporation, partnership, or association to whom a license is issued under this Chapter including any agents or employees of the person, corporation, partnership, or association. 2. Minor. Any natural person under the age of eighteen(18)years. 3. Pawnbroker. A person, corporation, partnership, or association who loans money on deposit or pledge of personal property or other valuable things or who deals in the purchasing of personal property or other valuable things on condition of selling the same back again at a stipulated price or who loans money secured by security interest on personal property or any part thereof. This Chapter does not apply to a person, corporation, partnership, or association doing business under and as permitted by any law of this State or of the United States relating to banks, building and loan associations, savings and loan associations, trust companies or credit unions. Fridley City Code Section 31.04.01 4. Public Safety Director. The Public Safety Director of the City of Fridley or the Director's designee. 5. City. The City of Fridley, Minnesota, a municipal corporation. 6. Reportable Transaction. Every transaction conducted by a pawnbroker in which merchandise is received through a pawn purchase, consignment or trade, or in which a pawn is renewed, extended, redeemed or voided, is a reportable transaction except: A. The bulk purchase or consignment 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 or consignment which describes each item, and must mark each item in a number 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. . 7. 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 is a billable transaction. 8. 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 identification card issued by another state or a province of Canada. 31.03. LICENSE REQUIRED. No person, corporation, partnership, or association shall exercise, carry on or be engaged in the trade or business of pawnbroker without first obtaining a license from the City as provided in this Chapter. 31.04. INITIAL LICENSE APPLICATION. 1. General. Applications for pawnbrokers' licenses to be issued under this Chapter shall contain information as required on forms prescribed by the City. Fridley City Code Section 31.04.05.A 2. Nature of Application. The application shall state whether the applicant is a natural person, corporation, partnership or other form of organization. 3. Natural Person, If applicant is a natural person, the following information shall be furnished A True name, place and date of birth and street residence address and length of time at that address, of applicant. B. Whether applicant has ever used or been known by a name other than his true name and, if so, what was such name or names, and information concerning dates and places where used. C. The name of the business if it is to be conducted under a designation, name or style other than the full individual name of the applicant D. Kind, name and location of every business or occupation applicant has been engaged in during the preceding five (5) years. E. Names and addresses of applicant's employers and partners, if any, for the preceding five (5)years. F. Whether applicant has ever been convicted of a felony, gross misdemeanor or misdemeanor, excluding traffic violations, and if so, the date and place of conviction and the nature of the offense. G. If applicant has not resided in the City for three (3) years last preceding the date of application, at least four (4) character references from residents of the State of Minnesota. 4 Partnership. If applicant is a partnership, the names and addresses of all partners and all information concerning each partner as is required of a single applicant. A managing partner, or partners, shall be designated. The interest of each partner in the business shall be disclosed. 5. Corporation. If applicant is a corporation or other association, the following information shall be required, A. Name and, if incorporated, the state of incorporation. Fridley City Code Section 31.04.09 B. A true copy of the certificate of incorporation, articles of incorporation or association agreement and by-laws and, if a foreign corporation, a certificate of authority as described in Minnesota Statutes C. The name, of the operating officer or proprietor or other agent in charge of the promises to be licensed, giving all the information about said person as is required of a single applicant. As used in this Chapter, the term "operating officer" shall mean the person responsible for the day-to-day operating decisions of the licensed premises. D. A list of all persons who, singly or together with their spouse, or a parent,brother, sister or child or either of them, own or control an interest in said corporation or association in excess of five percent (5%) or who are officers or directors of said corporation or association; together with their addresses and all information as is required of a single applicant. 6. New Manager. When a licensee places a manager in charge of a business, or if the named manager(s) in charge of a licensed business changes, the licensee must complete and submit the appropriate application within fourteen (14) days. The applicant must include all appropriate information required in section 31.04. 7. Description of premises. A. Legal Description. The exact legal description of the premises to be licensed, together with a plot plan of the area for which the license is sought showing dimensions, location of buildings, street access parking facilities. B. Street Address. The street address of the premises for which application is made. 8. Taxes. Whether or not all real estate taxes, assessments, or other financial claims of the City, State or Federal government for the business and premises to be licensed have been paid, and if not paid, the years for which delinquent. 9. Other Information Required. Such other information as the City Council shall require. Fridley City Code Section 31.08.02 31.05. RENEWAL APPLICATIONS. 1. License Period, Expiration. Each renewal license shall be issued for a maximum period of one year. 31.06. EXECUTION OF APPLICATION. If application is by a natural person, it shall be signed and sworn to by such person; if by a corporation, by an officer thereof; if by a partnership, by one of the general partners; if by an incorporated association, by the operating officer or managing officer thereof. If the applicant is a partnership, the application, license and bond shall be made and issued in the name of all partners. Any false statement in an application shall result in denial of the application. .31.07. GRANTING LICENSES. 1. At the time of making an initial or renewal application, the applicant shall, in writing, authorize the Police Department to investigate all facts set out in the application and do a personal background and criminal record check on the applicant. The applicant shall further authorize the Police Department to release information received from such investigation to the City Council. 2. Each license shall be issued to the applicant only and shall not be transferable. 3. Each license shall be issued only for the premises described in the application and shall not be transferable to a different location. 4. No change in ownership, control or location of a license shall be permitted except by amendment to the license which amendment must be approved by the City Council. 5. No more than two (2) licenses shall be issued by the City at any time and priority shall be given to qualified applicants for renewal of existing license. 31.08. LICENSE FEES ESTABLISHED. 1. Billable Transaction Fees Licensees shall pay a monthly transaction fee on all billable transactions as specified in Chapter 11, General Provisions and fees, of the Fridley City Code. Such fee shall be due and payable within 30 days. Failure to timely pay the billable transaction fee shall constitute a violation of this section. 2. Annual Fees. The annual license fee for licenses required by this article shall be in the amounts as specified in Chapter 11, General Provisions and Fees, of the Fridley City Code. Fridley City Code Section 3 1.10 3. Investigation Fees. At the time, of each original application for a license, the applicant: shall pay, in full, an investigation fee. The investigation fee shall be as specified in Chapter 11, Provisions and Fees, of the Fridley City Code. 31.09. PAYMENT OF FEES. 1. Initial Fees. The annual license and investigation fees for a new license shall be paid in full before the application for the license is accepted. Upon rejection of any application for a license or upon withdrawal of an application before approval of the issuance by the Council, the license fee only shall be refunded to the applicant except where rejection is for a willful misstatement in the license application. If any investigation outside the State of Minnesota is required, the applicant shall be charged the cost which shall be paid by the applicant,prior to issuance of a license, after deducting the initial investigation fee, whether or not the license is granted. 2. Pro Rated Fee for New Licenses. If the application for a new license under this Chapter is made during a license year, a license may be issued for the remainder of the license year for a fee assessed proportionately by the number of months remaining in to license year. Any fraction of a month will be counted as a complete month. No refund, reduction, or adjustment of a license fee shall a made to any licensee that ceases operation during the term of the license. 3. Renewal Fees. The annual license fee for renewal of a license, shall be paid in full at the time the renewal application is filed with the City. 31.10. BOND REQUIRED. At the time of filing, in application for a license, the applicant shall file a bond in the amount of Five Thousand Dollars ($5,000) with the City. The bond, with a duly licensed surety company as surety thereon, must be approved as to form by the City Attorney. Said bond must be conditioned that the licensee shall observe the ordinances of the City, in relation to the business of pawnbroker, and that the licensee, will account for and deliver 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 shall pay the person or persons the reasonable value thereof. Fridley City Code Section 31.12.O1.H.(1) 31.11. PERSONS AND PLACES INELIGIBLE FOR LICENSE. 1. No license shall be granted to or held by any person who: A. Is a minor at the time the application is filed. B. Has been convicted of any crime directly related to the occupation licensed, as prescribed by Minnesota Statutes, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a pawnbroker. 31.12. CONDITIONS OF LICENSES. 1. Records. Every license, at the time of receipt of an article deposited, left, sold, purchased, pledged or pawned, shall immediately record, in English, on forms or in an electronic date storage and retrieval system approved by the Public Safety Director, the following information: A. An complete and accurate description of the article, including but not limited to, any manufacture name, brand name, model number, serial number, identification number, or other identifying mark. B. The amount of money received by the person pawning, pledging, or selling the article, together with the annual rate of interest and the amount required to redeem the article if it was pawned or pledged. C. The date, time and place of receipt of the article, 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 consecutively numbered. D. The full name, date of birth, current residence, current telephone number if possessed, and a reasonably accurate description of the person from whom the article was received including at a minimum sex, height, weight, and race, color of eyes and color of hair. E. The identification number and state of issue from an acceptable form of identification. F. The name or unique identifier of the licensee or employee that conducted the transaction. G. The signature of the person identified in the transaction. H. The licensee must also take a color photograph or color video recording of: (1) Each customer involved in a billable transaction. Fridley City Code Section 31.12.03 (2) Every item pawned or sold that does not have a unique serial or identification number permanently engraved or affixed. If a photograph is taken, it must be at least two (2) inches in length by two (2) inches 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 it relates. Such photographs must be available to the Public Safety-Director or his 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 in the premises. If a video photograph is taken, the video camera must zoom in on 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 must inform the person that he or she is being videotaped orally and by displaying a sign of sufficient size in a conspicuous place on the premises. The licensee must keep the exposed videotape for three (3) months and surrendering it to the police department upon request. I. Effective sixty (60) days from notification by the police department, licensees must fulfill the color photograph requirements in section 31.12.1.11 by submitting them as digital images in a format specified by the issuing authority, electronically, cross- referenced to the reportable transaction they are associated with. Notwithstanding the digital images may be captured from required video recordings, this provision does not alter or amend the requirements in subdivision H. J. For renewals, extensions and redemptions, the licensee shall provide the original transaction identifier, the date of the current transaction, the type of transaction. 2. Disposition Of Articles. A. When any article of pawned or pledged property is redeemed from a licensee, the records shall contain an account: of such redemption with the date, interest charges accrued, and the total amount for which the article was redeemed. B. When an article of purchased or forfeited property is sold or disposed of by a licensee and the licensee receives one-hundred dollars ($100.00) or more in payment thereof, the records shall contain an account of such sale with the date, and telephone number of the person to whom sold. 3. Inspection of Records. The records referred to in this section shall be open to the inspection of the Public Safety Director at all reasonable times and shall be retained by the licensee for at least three (3) years. Entries of required digital images shall be retained a minimum of ninety(90) days. Fridley City Code Section 31.12.05.K. 4. Label Required Licensees must attach a label to every item at the time it is pawned, purchased or received in inventory from any reportable transaction. Permanently recorded on this label must be the number or name that identifies the transaction in the pawn shop's records, the transaction date, the name of the item and the description or the model and serial number of the item as reported to the police department, whichever is applicable, and the date the item is out of pawn or can be sold, if applicable. Labels shall not be reused. 5. Receipt. Every licensee must provide a receipt to the party identified in every reportable transaction and must maintain a duplicate of that receipt for three (3) years. The receipt must include at least the following information: A. The name, address and telephone number of the licensed business. B. The date and time the item was received by the licensee. C. Whether the item was pawned or sold, or the nature of the transaction. D. An accurate description of each item received including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item. E. The signature of unique identifier or the licensee or employee that conducted the transaction. F. The amount advanced or paid. G. The monthly and annual interest rates, including all pawn fees and charges. H. The last regular day of business by which the item must be redeemed by the pledgor without risk that the item will be sold, and the amount necessary to redeem the pawned item on that date. I. The full name, residence address, residence telephone number, and date of birth of the pledgor or seller. J. The identification number and state of issue from an acceptable form of identification. K. Description of the pledgor or seller, including sex, height, weight, race, color of eyes and color of hair. Fridley City Code Section 32.12.06.E. L. The signature of the pledgor or seller. M. All printed statements as required by Minnesota State Statute 325J.04, subdivision 2, or any other applicable statutes. 6. Daily Reports to Police. A. Unless otherwise authorized by the Police Department, licensees must provide to the Police Department the information required in Section 31.12.1 by transferring that information from their computer to the Police department via modem. 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 City of Fridley using a dial callback protocol or other procedures that address security concerns of the licensees and the City of Fridley. The licensee must display a sign of sufficient size, in a conspicuous place on the premises, which informs all patrons that all transactions are reported to the Police Department daily. B. Licensees will be charged monthly for billable transactions at the current rate established by the City Council. C. If a licensee is unable to.successfully transfer the required reports by modem, the licensee must provide the Police Department printed copies of all reportable transactions along with the video tape(s) for that date by 12:00 o'clock noon the next business day. 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 license must provide the required reports as provided for herein, but may be charged a reporting failure penalty, established by the City Council, each day until the error is corrected. If the problem is determined to be outside the licensee's system, the licensee must continue to provide the information as provided herein, and resubmit all such transactions via modem when the error is corrected 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 existed. D. If a licensee is unable to capture, digitize or transmit the photographs required in Section 31.12.1 the licensee must immediately take all required photographs with a still camera, immediately develop the pictures, cross reference the photographs to the correct transaction, and deliver them to the Police Department by 12:00 o'clock noon the next business day. Licensees may be subject to an additional charge for each photograph submitted in this manner after the close of the first business day following failure. E. Notwithstanding any other provisions herein, the Public Safety Director, or his designee, upon presentation of extenuating circumstances, may extend the period before any additional charges are imposed for the manual reporting of billable transactions. Fridley City Code Section 31.12.04.A. 7. Redemption Period. Any person pledging, pawning or depositing an article for security shall have a minimum of ninety (90) days from the date of that transaction to redeem the article before it may be forfeited and sold. During the ninety (90) day holding period articles shall not be removed from the licensed premises. Licensees are prohibited from redeeming any article of property to anyone other than the person to whom the receipt was issued; or to any person identified in a written and notarized authorization to redeem the article(s) of property identified in the receipt; or to a person identified in writing by the pledgor at the time of the initial transaction and signed by the pledgor; or with the approval of the Public Safety Director. Written authorization for release of articles of property to persons other than the original pledgor must be maintained along with the original transaction record. 8. Holding Period. No article of property pledged, pawned or on deposit for security with any licensee shall be permitted to be redeemed for a period of seventy-two (72) hours from the date of transaction, excluding Sundays and holidays, except upon written authorization of the Public Safety Director. No article of property purchased by a licensee may be sold or otherwise disposed of for thirty (30) days from the date of the transaction except that articles of property for which there exists a valid certificate of title issued by the State of Minnesota, showing ownership and registration by the person from whom the article was received, may be sold or otherwise disposed of ten (10) days from the date of transaction. 9. Police Restrictions on Sale or Redemption. A. Investigative Hold. Whenever a law enforcement official from any agency, acting in the course and scope of his or her duties, notifies a licensee not to sell or permit to be redeemed an article of property in the licensee's possession, the article may not be sold, redeemed or removed from the premises by the licensee. The Investigative Hold shall be confirmed in writing by the originating agency within seventy-two (72) hours and will remain in effect for fifteen (15) days from the date of notification, or until the hold is cancelled, or until a Police Hold is issued pursuant to section 31.12.9.B, or until the article is confiscated, whichever comes first. Fridley City Code Section 31.12.13 B. Police Hold. Whenever the Public Safety Director notifies a licensee not to sell or permit to be redeemed an article of property in the licensee's possession, the article may not be sold, redeemed or removed from the premises by the licensee: The Police Hold shall be confirmed in writing within seventy-two (72) hours and will remain in effect for ninety (90) days from the date of notification unless the Public Safety Director determines the hold is still necessary and notifies the licensee in writing. When a Police Hold is no longer needed the Public Safety Director shall so notify the licensee. C. Confiscation. If an article of property in the licensee's possession is determined to be stolen, it may be confiscated and seized as evidence by any police officer. A request for restitution from any person charged in regards to the stolen property confiscated shall be made on behalf of the licensee. When an article of property is confiscated, the person doing so shall provide identification upon request of the licensee, and shall complete a confiscation report providing at a minimum the name and telephone number of the confiscating agency and investigator, and the case number of the police report related to the confiscation. The confiscation report shall be included with the daily reports to police, submitted by the licensee, for review by the Public Safety Director. 10. Payment by Check. Payment of more than five hundred dollars ($500.00) by any licensee for any article deposited, left, purchased, pledged or pawned shall be made only by a check, draft or other negotiable or nonnegotiable instrument or order of withdrawal which is drawn against funds held by a financial institution. 11. Posting License. All licensees shall post their licenses, in a conspicuous place, in the licensed premises under the licensed activity. 12. Responsibility of Licensee. The conduct of agents or employees of a licensee, while engaged in performance of their duties for their principal or employer under such license, shall be deemed the conduct of the licensee. 13. Penalty for Property Owner. It is unlawful for any person who owns or controls any real property to knowingly permit it to be used for pawnbroking without a license required by this Chapter. Fridley City Code Section 31.14.01 14. Business at Only One Place. A license under this Chapter authorizes the licensee to carry on its business only at the permanent place of business designed in the license. However, upon written request, the Public Safety Director may approve an off-site locked and secure storage facility. The licensee shall permit inspection of the facility in accordance with Section 31.14. All provisions of this Chapter regarding record keeping and reporting apply to the facility and its contents. Articles of property shall be stored in compliance with all provisions of the City Code. 31.13. RESTRICTED TRANSACTIONS 1. No licensee shall be open for the transaction of business on any day of the week before 7:00 a.m. or after 10:00 p.m. 2. No licensee shall purchase, accept, or receive any article of property from any minor or from any person of unsound mind or from an intoxicated person. 3. No licensee shall purchase, accept, or receive any article of property which contains an altered or obliterated serial number or an article of property whose serial number has been removed. 4. No licensee purchase, accept, or receive any article of property knowing, or having reason to know, that the article of property is encumbered by a security interest. For the purpose of this section "security interest" means an interest in property which secures payment or other performance of an obligation. - 5. No licensee no any agent or employee of a licensee shall purchase, accept, or receive any article of property from any person knowing, or having reason to know, that said person is not the true and correct owner of the property. 6. No licensee nor any agent or employee of a licensee shall purchase, accept, or receive any article of property, from any person, without first having examined an acceptable form of identification. 31.14. INSPECTION. 1. Premises. Any licensee shall, at all times during the term of the license, allow Public Safety Director to enter the premises, where the licensee is carrying on business, including all off-site storage facilities as authorized in Section 31.12.14, during normal business hours, except in an emergency, for the purpose of inspecting such premises and inspecting the articles and records therein to locate goods suspected or alleged to have been stolen and to verify compliance with this Chapter or other applicable laws. No licensee shall conceal any article in his possession from the Public Safety Director. Fridley City Code Section 31.15.04 2. Inspection by Police or Claimed Owner. All articles of property coming into the possession of any licensee, under the terms hereof, shall be open to inspection and right of examination of any police officer or any person claiming to have been the owner thereof or claiming to have had an interest therein when such person is accompanied by a police officer. 31.15. CONDUCT OF PERSONS ON LICENSED PREMISES. 1. No person may pawn, pledge, sell, leave, or deposit any article of property not their own; nor shall any person pawn, pledge, sell, leave, or deposit the property of another, whether with permission or without, nor shall any person pawn, pledge, sell, leave or deposit any article of property in which another has a security interest; with any licensee. 2. No minor may pawn, pledge, sell, leave, or deposit any article of property with any licensee. 3. No person may pawn, pledge, sell, leave, or deposit any article of property with any licensee without first having presented an acceptable form of identification 4. All licensees 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. For the purpose of this section "adequate signage" shall be deemed to 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 and stating substantially the following: 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 section "separate written notice" shall be deemed to mean either the receipt, as required in Section 31.12.5, or a printed form, incorporating a statement to the effect that the person pawning, pledging, selling, leaving, or depositing the article is at least eighteen (18) years of age; is the true owner of the article; and that the article is free of all claims and liens; which is acknowledged by way of signature of the person pawning, pledging, selling, leaving, or depositing the article. Fridley City Code Section 31.18.02 5. No person seeking to pawn, pledge, sell, leave, or deposit any article of property with any licensee shall give a false or fictitious name; nor give a false date of birth; nor give a false or out of date address of residence or telephone number; no present a false driver's license or identification card; to any licensee. 31.16. CORPORATIONS, PARTNERSHIPS OR ASSOCIATIONS. 1. Licenses issued to corporations shall be valid only as long as there is no change in the officers or ownership interest of the corporation unless such change is approved by the Council, in which event said license shall continue in force until the end of the then current license year. Failure to report any change in stockholders, officers, or managers shall be grounds for the revocation of all licenses held by the corporation. Every corporation licensed under the provisions of this section shall adopt and maintain in its bylaws a provision that no transfer of stock is valid or effective unless approved by the City Council and shall require that all of its certificates of stock shall have printed on the face thereof. "the transfer of this stock certificate is invalid unless approved by the City Council of Fridley, Minnesota," and failure to comply with this provision shall be grounds for the revocation of all licenses held by the corporation. The provisions of this section shall not apply to the issuance of any license to a corporation whose stock is traded on a public stock exchange. 2. Licenses issued to associations or partnerships shall be valid only as long as there is no change in the partnership or association agreement or in the ownership of said partnership or association unless such change is approved by the Council, in which event said license shall continue in forced until the end of the then current license year. 3. Corporation, partnerships or associations shall submit written notice to the City of any such changes described herein on or before thirty(30) days prior to the effective date of any such change. In case of a corporation, the licensee shall submit written notice to the City when a person not listed in the initial application will be acquiring an interest and shall given all information about said person as is required of a person pursuant to the provisions of this Chapter. 31.18. REFUSAL, SUSPENSION OR REVOCATION. 1. It is unlawful for any applicant to make a false statement or omission upon any application form. Any false statement in such application, or any omission to state any information called for on such application form, shall upon discovery of such falsehood, work an automatic refusal of license, or if already issued, shall render any license issued pursuant thereto, void. Prior issuance is no effect to protect the applicant from prosecution for violation of this section or any part hereof. 2. The City Council may suspend or revoke a license issued under this Chapter for operation on any premises on which real estate taxes, assessments or other financial claims of the City or of the State are delinquent, or unpaid. Fridley City Code Section 31.19 3. The City Council may suspend or revoke a license issued under this Chapter upon a finding of a violation of any of the provisions of this Chapter or any State Statute regulating pawnbrokers. Any conviction by the pawnbroker 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. 4. Except in the case of a suspension pending a hearing on revocation, a revocation or suspension of a license by the Council shall be preceded by a public hearing. The hearing notice shall be given at least ten (10) days prior.to the hearing, include notice of the time and place of the hearing, and shall state the nature of the charges against the licensee. 31.19. PENALTY. Violation of any provision of this article shall be a misdemeanor. SEP.12,.2002 3:27PM — N0.097 P.1i15 CITY OF HOPKINS POLICE DEPARTMENT F'ACSE IILE TRANSMTTTAL FORM DATE SENT: t4'11 oa TRVM SENT: 07-3 TO: � FROM' d Page 1 of 16 CAS$NUMBER RE: REMARM: jyl P,;Ac,b-) S1,p1Gl CA- CO�� �. CLUL z keo CLOI 6-.4 Lo-. ai v1q cl w r f-�) ` - o LUJ-�rnn to AZZ djs L sA tJ�eckec�t iyA- tr L q ux- o R ot- (ab li-L y-vn s C.,t,' b U-A-'- akA C,-' C.r)t,vt L r n 4- CONFIDE1VTiALM_rTt]T O To d O=W(s)a mying this faoc=min COWMffjoal w2ftW='%hi&s's kgWy privih*.Mm iaftmaotoa es maendad Qtly for die vse offfie immded recjp=tmmod above. gym ate not the interidod r*dpWU, rum hereby nodfw that cy action is feii =on the oomu m of this alawpied oftw4 Oa except its direct dauvmy w the d�dod eedpiegt maned above ss<ialy prgbs�itad, Ifyao bave tcedvcd this tie to oast,pke an ngtify ga mmtediateiy by talepboao tp 4rtanBO>br temtn 0fth4 d0aMww to ua Phone:(952)938-8885 1010 First SL S.,Hopkins.MN SS343 Fax:(952)9394375 SEP.12.2002 3:27PM N0.097 P.2i15 CITY OF HOPKINS H.ENNF21N COUNTY,MINNESOTA ORDINANCE NO.2M2465 AN ORDINANCE DELETING SECTION 1180 OF THE HOPKINS CITY CODE AND REPLACING IT WTrH ANEW SECTION 1180. PAWNBROKERS PURPOSE The City Council.finds that use of services provided by pawnbrokers provides an opportunity for the commission of crimes and their concealment because pawn businesses have the ability to receive and transfer property stolen by others easily and quickly. The City Council also finds that consumer protection regulation is warranted in transactions involving pawnbrokers, The purpose of this section is,therefore,to prevent pawn businesses from being used as facilities for the commission of crimes,and to assure that Such businesses comply with basic consumer protection standards,thereby protecting the public health,safety,and general welfare of the citizens of the City. To help the police depwi ment better regulate current and future pawn businesses,decrease and stabilize costs associiate4 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 section also implements and establishes the required use of as interchange file specification format as required by Minnesota Statutes. Section 1: Section 1180 of the Hopkins City Code is deleted in its entirety and replaced with the following language: SUBD. 1-DEFINITIONS The following terms when used in this section shall have the following meanings unless the context clearly indicates otherwise: ISSUING AUTHORITY: The City of Hopkins PAWNBROXER: Any natural person,partnership or corporation,either as principal,or agent or employee thereof,who loans money on deposit or pledge of personal property,or other valuable thing,or who deals in the purchasing of personal property,or other valuable thing on condition of selling the Same back again at a stipulated price,or who loans money secured by chattel mortgage on personal property,taking possession of the property or any part thereof so mortgaged. To the cadent that a pawnbroker's business includes buying personal property previously used,rented or leased,or selling it on consignment,the provisions of this Section shall be applicable. PAWNSHOP:Any business establishment used or operated by a pawnbroker. 1 SEP.12.2002 3:27PM N0.097 P.3i15 REPORTABLE TRANSACTION:Every transaction conducted by a pawnbroker in which merchandise is received through a pawn,purchase, consignment or trade,or in which a pawn is renewed, extended or redeemed,or for which a unique transaction number or identifier is generated by the point-of-sale software, is reportable except: 1) The bulk purchase or consignment 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 or consignment which describes each item,and must mark each item in a manner which relates it to that transaction record 2) Retail and wholesale sales of merchandise originally received by pawn or purchase and for which all applicable hold and/or redemption periods have expired. BILLABLE TRANSACTION:Every reportable transaction conducted by a pawnbroker except renewals,redemptions or extensions of existing pawns on items previously reported and continuously in the Iicensee's possession is a billable transaction. CHIEF OF POLICE OR POLICE OFFICER;City of Hopkins Police Chief,police officer or designee. ADNOIL Any natural person under the age of eighteen(IS)years. LICENSRR: The person to whom a license is issued under this Section including any agents or employees of the person. SUBD.2-LICENSE REQUIRED No person shall exercise,c Arry on,or be engaged in the trade or business of pawnbroker within the City unless such person is currently licensed under this Section. SURD.3-APPLICATION CONTENT Every application for a license under this Section shall be made on a form supplied by the City of Hopkins and be filed with the City Clerk, The application shall state whether the applicant is a natural person,corporation,partnership or other form of organization 1)If the applicant is a natural person: a) The name,place and date of birth, street resident address and phone number of the applicant. b) Whether the applicant is a citizen of the United States or resident alien. c) Whether the applicant has ever used or has been known by a name other than the applicant's name,and if so,the name or names used and information concerning dates and places used d) The name of the business if it is to be conducted under a designation,name,or style other than the name of the applicant and a certified copy of the certification as required by Minnesota Statutes, Section 333.01. e) The street addresses at which the applicant has lived during the preceding five(5)years. 2 SEP.1�.2002 3:27PM N0.097 P.4i15 f) The type,name and location of every business or occupation in which the applicant has been engaged during the preceding five(5)years and the names)and address(es)of the applicant's employer(s) and partner(s), if any, for the preceding five(5)years. g) Whether the applicant has ever been convicted of a felony,crime or violation of any ordinance other than a traffic ordinance. If so,the applicant must fi=sh information as to the time, place,and offense of all such convictions. h) The physical description of the applicant i) Applicant'$current personal financial statement, j) If the applicant does not manage the business,the name of the manager(s)or other person(s)in charge of the business and all information concerning each of them required in a)through h)of this Subdivision. 2)If applicant is a partnership: a) The name(s)and address(es)of all general and limited partners and all information concerning each general pawner required in Subdivision(1)of this section. b) The name(s)of the managing partner(s)and the interest of each partner in the licensed business. c) A true copy of the partnership agreement shall be submitted with the application. If the partnership is required to file a certificate as to a trade name pursuant to Minnesota Statutes, Section 333,01,a certified copy of such certificate must be attached to the application d) If the applicant does not manage the business,the name of the manager(s)or other person(s)in charge of the business and all information concerning each of them required in a)through h)of Subdivision(1)of this section 3)If applicant is a corporation or other organization: a) The name of the corporation or business form,and if incorporated,the state of incorporation. b) A true copy of the Certificate of Incorporation,Articles of incorporation or Association Agreement,and By-Laws shall be attached to the application. If the applicant is a foreign corporation,a Certific al c of Authority as required in Minnesota Statutes, Section 303.06, shall be attached. c) The name ofthe manager(s)or other person(s)in charge of the business and all information concerning each manager,proprietor,or agent required in a)through h)of Subdivision(1)of this section. d) A list of all persons who control or own an interest in excess of five(5)percent in such organization or business form or who are officers of the corporation or business form,and all information concerning said persons required in Subdivision(1)above. 4) For all applicants: a) Whether the applicant holds a current pawnbroker license from any other governmental unit. b) Whether the applicant has previously been denied, or had revoked or suspended a pawnbroker license from any other government unit. 3 SEP.12.2002 3:27PM N0.097 P.5i15 c) The names, street resident addresses,and business addresses of three(3)character references,who are of good moral character and who are not related to the applicant or not holding any ownership in the premises or business. d) The location of the business premises, e) The legal description of the premises to be licensed,together with a plot plan of the area for which the license is sought showing dimensions,location of buildings,and street access parking facilities. f) Such other information as the City Council or issuing authority may require. SUBD. 4-NEW MANAGER When a licensee places a manager in charge of a business, or if the named manager(s)in charge of a licensed business changes,the licensee must complete and submit the appropriate application on forms provided by the City within fourteen(14)days. The application must include all appropriate information required in Subdivision 3 of this Section, SUM 5-APPLICATIQN EXECUTION All applications for a license under this Section roust be signed and sworn to under oath of affh=tion by the applicant If the application is that of a natural person,it must 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. If the applicant is a' partnership,the application,license and bond shall be made and issued in the name of all parb=. Any false statement on an application shall result in denial of the application. SUED.6-APPLILATION EMSTIGATION At the time of maldng an initial or renewal application,the applicant shall,in writing,authorize the Hopkins Police Department to investigate all facts set out in the application and do a personal background and criminal record check on the applicant The applicant shall further authorize the Hopkins Police Department to release information received from such investigation to the City Council.The applicant shall have an opportunity to review such information before it is released to the City Council. SURD.7 'VOTE REgUUUM After such investigation,the City Council shall grant or refuse the applicant SUED.8-RESTRICTIONS REGARDING LICENSE TRANSFER Each license under this Section shall be issued to the applicant only and shall not be transferable, except as allowed in the following statements regarding corporations,partnerships,or associations: a) Licenses issued to corporations Shall be valid only so long as there is no change in the officers or ownership interest of the corporation unless such change is approved by the Council,in which event said license shall continue in force until the end of the then current license year. 4 SEP.12.2002 3:27PM N0.097 P.6i15 b) Licenses issued to partnerships or associations Shall be valid only so long as there is no change in the partnership or association agreement or in the ownership of said partnership or association unless such change is approved by the Council,in which event said license shall continue in force until the end of the then current license year. c) Corporation,partnerships or associations shall submit written notice to the Clerk of any such changes deed herein on or before sixty(60) days prior to the effective date of any such change and pay a fee required for an amendment to the license. In the case of a corporation,the licensee shall submit written notice to the Clerk when a person not listed in the initial application will be acquiring an interest and shall give all information about said person as is required of a person pursuant to the provisions of this Section. Each license shall be issued only for the premises described in the application and shall not be transferable to a different location.No licensee shall loan,sell,give,or assign a license to another person SUED.9-EXPIRATION OF LICENSE All licenses shall expire as of midnight on December 31 st of the year of issuance. SUBD. 10-RENEWAL AP PLICATYON Applications for renewal of an existing license shall be made,to the City Clerk at least ninety (90)days prior to the expiration date of the license and shall be made on such forms as the City requires. The application shall state that the information in the prior application remains ttue and coact,except as otherwise indicated. Tl>e City will mail application forms to existing licensees approximately one hundred twenty(120) days prior to expiration of the licenses. If, in the judgment of the Council,good and sufficient cause is shown by any applicant for failure to file for a renewal within the time period provided,the Council may,if the other provisions of this Section are complied with, grant the application. SUM-11 -PERSONS YNELIGIBLE FOR A LICENSE No license under this Section shall be issued if the applicant,any general partner or managing partner of a partnership,or a manager,proprietor,or agent in charge of a corporation or other organization: a). Is a minor at the time the application is filed; b) Has been convicted of any crime directly related to the occupation licensed as prescribed by Minnesota Statute 364.03, Subd 2,and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by Minnesota Statutes 364.03, Subd 3. c) Is not a citizen of the United States or a resident alien; d) Holds an intoxicating liquor license under Chapter MI of this Code;or e) In the judgment of the Council, is not the real party in interest or beneficial owner of the business operated, or to be operated,under the license. 5 SEP.12.2002 3:28PM N0.097 P.7i15 SUBA. 12-FIRMS The Hopkins City Council shall,by resolution,set the annual license fee,investigation fee, billable tiaasaction fee and fee for an amendment to the license for pawnshops. 1) License Fee:The annual license fee shall be paid in full before the application for a license is accepted Upon rejection of any application for a license or upon withdrawal of an application before.approval of the issuance by the Council,only the license fee shall be refimded to the applicant except where rejection is for a willful statement in the license application. 2) Ynvestiggg on Fee:An applicant for any license under this Section shall pay the City of Hopkins at the time an original application is submitted,a nonrefimdable fee to cover the costs involved in verifying the license application and to cover the expense of any investigation needed to assure compliance with this Section. 3) Billable Trans 'on Fee: 71�e billable transaction fee shall reflect the cost of processing transactions and other related regWatory expenses as determined by the City Council. Billable transaction fees shall be bm7led monthly and are due and payable within thirty(30) days. Fail=to do so is a violation of this Section, 4) Renewal Fee:The annual license fee for renewal of a license shall be paid in full at the time the renewal application is filed with the Clerk, ` SUDD. 13-BOND REOUMEA At the time of filing an application for a license,the applicant shall,file a bond in the amount of five thousand dollars($5,000)with the City Clerk. The bond,with a duly licensed surety company as surety thereon,must be approved as to form by the City Attorney. Said bond must be conditioned that the licensee shall observe the ordinances of the city,-in relation to the business of pawnbroker,and that the licensee will account for and deliver 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 licence shall pay the person or persons the reasonable value thereof. This bond Shall contain a provision that no bond may be canceled except upon thirty (30)days written notice to the city. SUBD.14-RECORDS REQUIYtED At the time of any reportable transaction other than renewals,extensions or redemptions,every licensee must immediately record in English the following information by using ink or other indelible medium on forms or in a computerized record approved by the police department: 1) A complete and accurate description of each item including,but not limited to,any trademark,identification number, serial number, model number,brand name,or other identifying mark on such an item. 2) The purchase price,amount of money loaned upon,or pledged therefore, 3) The maturity date of the transaction and the amount due, including monthly and annual interest rates and all pawn fees and charges. h SEP.12.2002 3:2ePM N0.097 P.8i15 4) Date,time and place 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, The identifiers shall be consecutively numbered anti for the purpose of the reporting requirements shall include any identifiers that may have been voided S) Full name, current residence address,current residence telephone number,date of birth and accurate description of the person from whom the item of property was received, including: sex,heights weight,race,color of eyes and color of hair. 6) The identification number and state of issue from any of the following forms of identification of the seller, a) Current valid Minnesota driver's license, b) Current valid Minnesota identification card. c) Current valid photo identification issued by another state or province of Canada. 7) The signature of the person identified in the transaction. 8) Effective sixty(60)days from the date of notification by the police department of acceptable video standards,the licensee must also take a color photograph or color video recording of: a) Each customer involved in a billable transaction b) Every item pawned or sold that does not have a unique serial or identification number permanently engraved 4r affixed. c) If a photograph is taken,it must be at least two(2)inches in length by two(2)inches 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 so that they relate. Such photographs must be available to the Chief of Police,or the Chiefs 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 in the premises. d) 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 must inform the person that he or she is being videotaped orally and by displaying a sign of sufficient size in a conspicuous place on'the premises. Licensee must keep the exposed videotape for three(3)months unless requested by the police department to keep the tape longer. 9) Digitized photographs..Effective sixty(60)days from the date of notification by the Police department,licensees must fulfill the color photograph requirements in Subd 14,#8 by submitting them as digital images,in a format specified by the police department, electronically cross-referenced to the reportable transaction they are associated with, Notwithstanding the digital images may be captured from the required video recordings,this provision does not alter or amend the requirements in#8. 10)Renewals, extensions and redemptions. For renewals,extensions and redemptions,the licensee shall provide the original.transaction identifier,the date of the current transaction, and the type of transaction. 7 SEP.12.2002 3:28PM N0.097 P.9i15 11)Inspection of Records. The records must at all reasonable times be open to inspection by the Police Department. Data entries shall be retained for at least three(3)years from the date of transaction.Entries of required digital images shall be retained a minimum of three(3) months. SU13D. 15-DAILY REPORTS TO POLICE Effective no later than sixty(60)days after the police department provides licensees with computerized records standards,licensees must submit every reportable transaction to the police department daily in the following manner; 1) Licensees must provide the police department all information required in Subd. 14(1) through(6)and other required information,.by transferring it from their computer to an automated pawn system via modem. 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 City using procedures that address security concerns of the licensees and the City. The licensee must display a sign of sufficient size,in a conspicuous place on the premises,which informs all patrons that all transactions are reported to the Police Department daily. 2) Billable transaction fees. Licensees will be charged for each billable transaction reported to the Police Department. 3) If a licensee is unable to successfully transfer the required reports by modem,the licensee must provide the Police Department printed copies of all reportable transactions along _ with the videotape(S) for that date by 12:00 the next business day.If the problem is determined to be 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 as provided for herein,but may be charged an additional fee as established by the City Council for each transaction submitted in this manner after the close of the first business day following the day of failure. If the problem is determined to be outside the liceaSee'S system,the licensee must continue to provide the information as provided for herein and resubmit all such transactions via modem when the error is corrected,but shall not be subject to any additional charge. 4) If a licensee,is unable to capture,digitize or transmit the photographs required in this subdivision,the licensee must immediately take all required photographs with a still camera,develop the pictures,cross-reference the photographs to the correct transaction, and make the pictures available to the Police Department upon request, 5) Regardless of the cause or origin of the technical problems that prevented the licensee from uploading their transactions,upon correction of the problem,the licensee shall upload.-every reportable transaction from every business day the problem had existed. 6) Notwithstanding any other provisions herein,the Police Chief,or the Chief's designee, upon presentation of extenuating circumstances,may extend the period before any additional charges are imposed for the manual reporting of billable transactions. SURD. 16-RECEYPT REQUIRED Every licensee must provide a receipt to the party identified in every reportable transaction and must maintain a duplicate of that receipt for three(3)years.The receipt mug include at least the following information: 1) The name, address and telephone number of the licensed business. R SEP.12.2002 3:28PM N0.097 P.10i15 2) The date and time the item was received by the licensee. 3) Whether the item was pawned or sold, or the nature of the transaction. 4) An acewate description of each item received including,but not limited to,any trademark,identification number,serial number model number,brand name,or other identifying mark on such an item, 5) The signature or unique identifier of the licensee or employee that conducted the transaction. 6) The amount advanced or paid. 7) The monthly and annual interest rates,including all pawn fees and charges. 8) The last regular day of business 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. 9) The full name,current residence address,current residence telephone number, and date of birth of the pledger or seller, 10)The identification number and state of issue from any of the fallowing forms of identification of the seller. a) Current valid Minnesota driver's license. b) Current valid Minnesota iderriification card. c) Current valid photo identification card issued by another state or a province of Canada 11)Description of the pledger or seller including height,weight, sex,race,color of eyes and color of hair. i 12)The signature of the pledger or seller. 13)All printed statements as required by State Statute 3251,04,Subdivision 2, or any other applicable statutes. SUBA 17-REDEMPnON PERIOD Any person pledging,pawning,or depositing an item for security must have a minimum of sixty (60)days from the day of that transaction or any renewal or extension,to redeem the item before it may be forfeited and sold Licensees are probiibited from redeeming any item to anyone other than the person to whom the receipt was issued or,to any person identified in a written and notarized authorization to redeem the property identified in the receipt,or to a person identified in writing by the pledger at the time of the initial transaction and.sigued by the pledger,or with the approval of the Pollee Depat tment. Written authorization for release of property to persons other than the original pledger must be maintained along with original transaction record. SUBA 18-HOLDING PERIOD Any item purchased or accepted in trade by a lic==must not be sold or otherwise transferred for twenty-one(21)days from the date of the transaction. An individual may redeem an item no sooner than seventy-two(72)hours after the item was received on deposit. Sundays and legal holidays are not included in the 72-hour holding period 9 SEP. 12.2002 3:29PM N0.097 P.11i15 SUBD; 19-POLICE ORDER TO$OLD PROPERTY 1) Investigative Hold. Whenever law enforcement official from any agency notifies a licensee not to sell an item,the item must not be sold or removed from the premises. The investigative hold shall be confirmed in writing by the originating agency within seventy- two(72)hours and will remain in effect for fifteen(15)days from the date of initial notification,or until the investigative order is canceled,or until an order to hold/confiscate is issued,pursuant to#2 and#3 of this subdivision,whichever comes fint. 2) Order to Hold. Whenever the Chief of Police,or the Chiefs designee,notifies a licensee not to sell an item,the item must not be sold or removed from the licensed premises until authorized to be released by the Chief or the Chiefs designee. The order to hold shall Wire ninety(90)days from the date it is placed unless the Chief of Police or the Chiefs designee determines the hold is still necessary and notifies the licensee in writing, 3) Order to Confiscate. If an item is idezitified as stolen or evidence in a criminal case,the Chief or Chiefs designee may: a) Physically confiscate and remove it from the shop,pursuant to written order from the Chief or the Chiefs designee, or b) Place the item on hold or extend the hold as provided in#2 of this subdivision,and leave the item in the shop. When an item is confiscated,the person doing so shall provide identification upon request ofthe licensee,and shall provide the licensee the name and phone number of the confiscating agency and investigator,and the case number related to the confiscation. ` When an order to hold/confiscate is no longer necessary,the Chief of Police or Chiefs designee shall so notify the licensee. SUBD.20-INSPECTION OF ITEMS At all times during the tern of the license,the licensee must allow the Chief of Police or the Chiefs designee(s)to eater without notice the premises where the licensed business is located during normal business hours,except in an emergency,for the purpose of inspecting such premises and inspecting the items,ware and merchandise,and records therein to verify compliance with this Section or other applicable laws. SUB�D.21 LABEL REOUMED Licensees much attach a label to every item at the time it is pawned,purchased or received in inventory from any reportable transaction.Permanently recorded on this label must be the number or name that identifies the transaction in the shop's records. The transaction date,the name of the item and the description or the model and serial number of the item as reported to the Police Deparm=at, whichever is applicable,and the date the item is oUt of pawn or can be sold,,if applicable. Labels shall not be reused SURD.22-PROHIBITED ACTS 1) No persm under the age of eighteen(1 S)years may pawn or sell or attempt to pawn or sell goods with any licensee,nor may any licensee receive any goods from a person under the age of eighteen(18)years. 1Q SEP.12.2002 3:29PM N0.097 P.-12i15 2) No licensee shall receive any goods from a person of unsound mind or an intoxicated pemn- 3) No licensee may receive any goods,unless the seller presents identification in the form specified in#6 of Subd. 14. 4) No licensee may receive any item of property that possesses an altered or obliterated serial number or operation identification number or any item of property that has bad its serial number removed 5) No person may pawn,pledge,sell,consign,leave, or deposit any article of property not their own;nor shall any person pawn.,pledge, sell, consign, leave,or deposit the property of another,whether with permission or without;nor shall any person pawn,pledge, sell, consign, leave,or deposit any article of property in which another has a security interest; with any licensee, 6) All customers of a pawnshop will give their current residence address and current residence telephone number as part of their transaction, SUBA 23- UCENSE REQUIREMENTS 1) Hours of Operation,No licensee shall keep the establishment open for the transaction of business on any day of the week before 7:00 AM or after 10;00 PM. 2) License Display. A license issued under this ordinance must be posted in a conspicuous place on the premises for which it is issued. The license issued is only effective for the complete and contiguous space specified in the approved license application. 3) Maintenance of Order.A licensee under this ordinance shall be responsible for the conduct of the business being operated and shall maintain conditions of order. 4) Method of Payment When a pawnbroker accepts an item for purchase or as security for a loan,payment for any article deposited,let pledged or pawned shall be made only by a check,draft,or other negotiable or non-negotiable instrument or order of withdrawal which is drawn apinst fiords held by a financial institution.The licensee may cash the reheck, 5) Inspection by Claimed Owner.All goods,ware or merchandise coming into the possession of any licensee,under the teams thereof,shall at all times be open to inspection and right of examination of any person claiming to have been the owner . thereof or claiming to have had any interest therein when such person is accompanied by pL police officer. 11 SEP.12.2002 3:29PM N0.097 P.13/15 6) Sign. Licensee shall post an adequate sign visible to customers. For the purpose of this section, an"adequate"sign shall be deemed to mean at the 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 and stating substantially the following: TO PAWN OR SELL PROPERTY: YOU MUST BE AT LEAST 18 YEARS OF AGE . YOU MUST GIVE YOUR CURRENT RESIDENCE ADDRESS AND TELEPHONE NUMBER YOU CANNOT PAWN ANY PROPERTY FOR ANOTHER PERSON 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 REQUIRMMENTS IS A CRIME! SURD.24-DENTAL, SUSPENRON OR REVOCATION Any license under this section may be,denied,suspended or revoked for one or more of the following reasons: 1) The proposed use does not comply with the City of Hopkins zoning code. 2) The proposed use does not comply with any health,building,building maintenance or other provisions of state or local laws or ordinances. 3) The applicant or licensee has failed to comply with one or more provisions of this section. 4) The applicant is not a citizen of the United States or a resident alien,or upon whom it is impractical or impossible to conduct a background or financial investigation due to the unavailability of information. 5) Fraud,misrepresentation or bribery in securing or renewing a license. 6) Fraud,misrepresentation or false statements made in the application and investigation for, or in the course of,the applicant's business. 7) Violation within the preceding five(5)years,of any law relating to theft,damage or trespass to property, sale of a controlled substance, or operation of a business. 8) The owner of the premises licensed or to be licensed would not qualify for a license under the terms ofthis section. SU8D.25•EEARI G REOUIRED Except in the case of a suspension pending a hearing on revocation,a revocation or suspension of$license by the City Council Shall be preceded by a public hearing conducted-in accordance with Minnesota Statute 15.0418 to 15.0426. The City Council may appoint a hearing examiner or may conduct a hearing itself. The hearing notice shall be given at least ten(10)days prior to the hearing,including notice of the time and place of the hearing,and shall state the nature of the charges against the licensee. SURD.26.SEPARABELITY Should any subdivision,subsection,clause or other provision of this ordinance be declared by a court of competent jurisdiction to W invalid such decision shall not effect the validity of the ordinance as a whole or any part other than the part so declared invalid, 12 SEP. 12.2002 3:29PM N0.097 P.14i15 SUED.27-ADOPTION OF THE PAWNBWEER REGULATION ACT To the extent the requirements of this ordinance are less restrictive than the provisions of the Pawnbroker Regulation Act,the regulatory provisions of said Act,codified in Minnesota State Statutes, are hereby adopted and incorporated herein and made part of this code as completely as if set out in full. Section 3. The effective date of this ordinance shall be twenty days after publication. First Reading; January IS,2002 Second Reading February S,2002 Date of Publication: February 13,2002 Date Ordinance Takes Effect: March S,2002 Gene Maxwell,Mayor ATTEST: Terror Obermaier,City Clerk APPROVED AS TO FORM AND LEGALITY, City Attorney Signature Date 13 SEP.12.2002 3:29PM N0.097 P.15i15 CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2002-11 RESOLUTION SETTING LICENSE AND COPYING FEES WHEREAS,the Hopkins City Code authorizes the City Council to set fees by Resolution, and, WHEREAS, the City Council amended the Pawnshop License Ordinance, which changed the way fees are charged, and; WHEREAS, the City also needs to adjust the fees that charged for making copies; THEREFORE BE IT NOW RESOLVED that the following fees will be amended as shown: Pawnshops: License Fee-$5,000/year Electronic Billable Transaction Fee -$1.75/transaction Manual Billable Transaction Fee -$2.751transaction License Renewal Fee $5,000/year License Investigation Fee (1R time license) -$500.00 Copies: Copy Fee- .30 cents per copy Adopted by the City Council of the City of Hopkins this 194' day of February 2002. ATTEST: Eugene J. Maxwell, Mayor Terry Obermaier, City Clerk EHLERS & ASSOCIATES INC OTo: Mike Morrison,City Manager/Sue Hall,Assistant City Manager MFrom: Jim Prosser,Ehlers &Associates W Date: September 20,2002 Subject: Project Update Project Planning Pratt-Ordway is close to wrapping up the initial project refinement efforts. They have been focusing efforts on identifying a first phase development to initiate redevelopment efforts on the Apache site. Specific efforts have included: • Discussions with US Bank to develop updated acquisition estimates. • Developing a first phase residential program, identifying the types and densities. • Discussions with several commercial/retail developers to assess market interest for various types of development. • Updating cost estimates for public improvement required for a phased development. • Preparing a"sources and uses"to assess financial feasibility for a phased development. • Follow up on funding applications including Metropolitan Council Livable Communities Demonstration Account grants,Minnesota Department of Trade and Economic Development Community Revitalization.and Rice Creek Watershed grants. Pratt-Ordway is preparing to present options developed during this stage for City Council review. If the concepts are generally acceptable Pratt-Ordway will be conducting a community open house to further refine the concepts prior to requesting a final development agreement(most likely for phase one). Also of interest, Len Pratt was invited to participate on a national panel to review awards for"smart growth"planning efforts. Project Communications An update for the newsletter and newspapers will be prepared once Pratt-Ordway completes the plan refinement. Pratt-Ordway will be seeking input from the public prior to submitting the refined plan to the City for consideration with the final development agreement. Project Funding Metropolitan Council continues to be very supportive of the redevelopment effort. The City is seeking funds from at least two different Metropolitan Council sources,the Livable Communities LEADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive Phone: 651-697-8503 Fax: 651-697-8555 Roseville,MN 551 13-1 105 Email: jim©ehlers- inc.com Demonstration Account(LCDA)and Tax Base Revitalization(asbestos cleanup). The City has been advised that they have passed the first review hurdle at the Metroplitan Council. The next step will be preliminary interviews conducted later this month. Final selection is not expected until mid- November. Competition for these funds is very strong and at this time it is clear that the project financing gap will not be closed by Met Council funds alone. Pratt-Ordway has also initiated discussions for funding through the American Communities Fund,a program designed to assist create new housing in redevelopment areas. Additionally Metropolitan Council has announced a new grant program for funding housing tied to transit. Pratt-Ordway and the City will be reviewing that funding option. Tag Increment Financing Given the likelihood that tax increment financing(TIF)assistance will be requested by the developer, Ehlers recommends that St.Anthony initiate an assessment to determine if the site would qualify as a "Redevelopment"district as permitted by State Law. The first step in that process is an inspection of properties that may be included within the district. Jerry Gilligan and I met with Tom Goiden recently. Mr. Goiden had conducted the prior inspection on the Apache Mall property. The purpose of the meeting was to evaluate if the inspections previously completed would be useable in establishing a new district. After evaluation it was determined that a new evaluation will be required. Project Design/Land Use Approvals DSU will be coordinating development of design standards to assure the consistency with community standards developed during the planning stages. Land use reviews will be coordinated with the Planning Commission in the same manner as other development reviews. Project Components Mayor Randy Hodson, Councilmember Jerry Faust,Manager Mike Mornson, Assistant City Manager Sue Hall and others met with representatives from the University of Minnesota State and Local Policy Center to review the potential for funding of innovative communications and technology programs to enhance the development of Apache. The Center indicated strong interest and will be following up with the City. St.Anthony Redevelopment Update-Ehlers&Associates 1 CITY OF ST. ANTHONY 2 3 CITY COUNCIL REGULAR MEETING MINUTES 4 5 AUGUST 27, 2002 6 7 CALL TO ORDER 8 Mayor Hodson called the meeting to order at 7:00 p.m. 9 10 PLEDGE OF ALLEGIANCE. 11 Mayor Hodson invited the Council and audience to join him in the Pledge of Allegiance. 12 13 ROLL CALL. 14 Present: Mayor Hodson; Councilmembers Horst, Sparks, Thuesen, and Faust. 15 Absent: None. 16 Also Present: City Manager Mike Mornson. 17 18 CONSIDERATION,DISCUSSION,AND POSSIBLE ACTION ON ALL OF THE FOLLOWING 19 ITEMS. 20 21 I. APPROVAL OF AUGUST 27, 2002 CITY COUNCIL MEETING AGENDA. 22 Motion by Councilmember Sparks to approve the City Council Meeting Agenda of August 27, 23 2002. 24 25 Motion carried unanimously. 26 27 II. PROCLAMATIONS AND RECOGNITIONS. 28 None. 29 30 III. COMMUNITY FORUM. 31 Mayor Hodson invited residents to come forward at this time and address the Council on items 32 that are not on the regular agenda. 33 34 Hearing none, Mayor Hodson moved forward with the agenda. 35 36 IV. CONSENT AGENDA. 37 38 1. Consider August 13, 2002 Council meeting minutes. 39 2. Consider licenses and permits. 40 3. Consider payment of claims. 41 4. Resolution 02-063, re: Amend Resolution 02-062 to approve additional members to the 42 Facility Task Force. 43 44 Motion by Councilmember Sparks to approve the Consent Agenda as presented. 45 46 Motion carried unanimously. 47 48 V. PUBLIC HEARINGS. it City Council Regular Meeting Minutes August 27, 2002 Page 2 1 None. 2 VI. REPORTS FROM COMMISSIONS AND STAFF. 3 A. Planning Commission- August 20, 2002. 4 5 1. Ordinance 2002-002, re: Amendment to City Ordinance relating to the definition 6 of"garage"and"accessory building" and to regulate the size of garages in 7 residential districts. 3'd reading. 8 Planning Commissioner Chris Melsha reviewed the details of the Ordinance request with 9 the Council. He.noted the Planning Commission focused on the past garage and 10 accessory building ordinance functions and the potential for a Design Review Board as 11 two separate issues. Mr. Melcher indicated a comprehensive survey was completed of 12 20-25 different cities to gain further information on these issues. He noted lot coverage, 13 building height and setbacks are the main issues with respect to accessory structures 14 without using FAR(Floor Area Ratio). 15 16 Mr. Melcher indicated the survey also revealed that with respect to garage size, it was 17 consistent that other cities regulate it to 1,000 square feet. He noted the Commission 18 recommends Council go ahead and approve the 3`d reading of the Ordinance as presented. 19 20 Councilmember Thuesen questioned if the height standard was discussed by the Planning 21 Commission and the effect that would have on building mass. Mr. Melcher noted there 22 was a height standard set within the Ordinance. Councilmember Faust stated the height 23 standard was set at 25 feet. 24 25 Mayor Hodson stated with regard to mass of buildings, he would like the City to be open 26 to some type of design review if it was larger than stated within the Ordinance. Mr. 27 Melcher stated this was the case and that all structures larger than stated within the 28 Ordinance would go through a variance process before the Planning Commission. 29 30 Motion by Faust to adopt Ordinance 2002-002,re: Amendment to City Ordinance 31 relating to the definition of"garage"and"accessory building"and to regulate the size of 32 garages in residential districts, 3`d and Final Reading. 33 34 Motion carried unanimously. 35 36 Mayor Hodson asked if the Planning Commission recommended a design review board at 37 this time. Mr. Melcher noted there is not a design review board at this time, as structures 38 not in compliance with the Ordinance would fall under a variance. He stated the Council 39 could address the issue of a Design Review Board and who should be members of such a 40 board. 41 42 Councilmember Sparks asked how the Planning Commission feels about a Design 43 Review Board. Mr. Melcher stated the Planning Commission feels the Council would 44 need to decide on this issue. 45 City Council Regular Meeting Minutes August 27, 2002 Page 3 1 Councilmember Sparks indicated there are going to be many issues that go beyond the 2 variance level requiring a design review board discussion. She stated a height average of 3 the houses within 300 feet is used in another community, with regard to height, which 4 may be a compromise in these situations. Councilmember Sparks noted this would keep 5 the neighborhoods in line with each other without large, eyesore structures. 6 7 Mayor Hodson indicated some cities use this type review board and some don't. He 8 asked for the Councilmembers comments. 9 10 Mr. Melcher indicated he hears it may be interesting to address other cities ways to 11 address building mass,but as far as design review, that would require more direction. He 12 noted the Planning Commission could approach other cities for their methods, but would 13 require more direction from the Council before a design review was established. 14 15 Councilmember Horst stated he felt it was premature to give the Planning Commission 16 direction at this time. He noted he would like to provide the Commission specific 17 direction after a work session meeting and further Council discussion. 18 19 Councilmember Faust asked that the Council discuss this at a future goal-setting meeting. 20 Mayor Hodsen thought that was a.good place to start. 21 22 Councilmember Thuesen agreed and thought this should be discussed further at a work 23 session meeting to gather direction for the Planning Commission. Councilmember Faust 24 agreed stating the Council did not have a clear direction at this time. 25 26 VII. GENERAL POLICY BUSINESS OF THE COUNCIL. 27 A. Presentation by Northwest Youth&Family Services. 28 Kay Andrews of the Northwest Youth and Family Services(NYFS) addressed the 29 Council and reviewed the services provided to the residents in this community along with 30 the quarterly and annual report. She brought to the Council's attention the new website 31 of the organization and asked the Councilmembers to check it out. 32 33 Ms. Andrews noted NYFS was a non-profit social service agency serving the northern 34 suburbs of Ramsey County. She reviewed the services provided by this agency were for 35 clients from all backgrounds and circumstances. Ms. Andrews noted over 5,000 clients 36 are served each year. 37 38 Perry Loftgren, agency staff member, noted he was present to stress the importance of 39 the annual city contract funding and its importance in leveraging additional funding for 40 the agency. Mr. Loftgren indicated the agency focuses services on mental health, 41 diversion services, senior chore programs, and youth employment. 42 43 Mr. Loftgren explained the youth employment program teaches youth soft skills, 44 responsibility and allows them to repay restitution through a 14-week youth run business 45 called Penny Pinchers. He reviewed the contracted services with the market value of the 46 services provided to the St. Anthony residents being over$35,000 for the price of$3,500. City Council Regular Meeting Minutes August 27, 2002 Page 4 1 Ms. Andrews reviewed where the funding is allotted throughout the agency, with 68%of 2 the funding going to programs, 15%to the building, 9%to development and 8% to 3 administrative services. She noted the funding provided by the cities is only a small 4 portion of the agency's budget as it also receives grants and donations from local 5 organizations as well. 6 7 Ms. Andrews stated the agency is seeking a representative from the City of St. Anthony 8 for the agency board meetings, which are held at 7:00 a.m. on the second Tuesday of 9 each month. She thanked the Council for their time and asked for questions and 10 comments. 11 12 Councilmember Sparks asked how the agency received youth for the employment 13 program. Mr. Loftgren stated this was handled through the local police departments. 14 15 VIII. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS. 16 Mr. Morrison reviewed the referendum issue with the Council and noted the Council could not 17 take a stance on this issue one way or the other within the chambers. He informed the 18 Councilmembers of the first Public Facilities Task Force meeting was to be held on September 19 3,2002. 20 21 Mr. Morrison noted the budget handouts address the revised expenditures within the budget, 22 which will be addressed at a future meeting. He explained there would also be a cut in the 23 police/fire budget and an increase in the HRA budget due to the Tires Plus lease. 24 25 Mr. Morrison stated CTV was going to now provide video streaming services, which would 26 allow residents to watch public meetings on the Internet. Mayor Hodson indicated he was happy 27 with this new service. 28 29 Councilmember Sparks noted the Community Forum did not address the events that will take 30 place at Apache Plaza on September 14, 2002 from 10:00 a.m. to 10:00 p.m. Barry Tedland 31 handed out a flyer to the Councilmembers and noted the event was called Revisit the Village. He 32 noted there would be live bands, a bon fire, magic shows, a petting zoo, dunk tank, moonwalk 33 and a street dance. Mr. Tedland noted there were some good anchors in the shopping center 34 again and encouraged the residents to attend the event to learn of things yet to come. 35 36 Councilmember Faust noted on August 16, 2002 he attended a committee meeting at the LMC 37 where they addressed a 10% cut across the board for city services in 2003. He noted this would 38 affect the City next year with Council representation needed at the legislative sessions next 39 January, February and March. 40 41 Councilmember Faust noted he, the mayor and Mr. Morrison met with Congressman Sabo to 42 discuss Apache Plaza. He noted they spent a full hour with him and proved to be very 43 beneficial. 44 45 Mayor Hodson agreed stating this was an excellent meeting to bring Congressman Sabo up to 46 speed with the NW quadrant redevelopment. He indicated Congressman Sabo was informed of City Council Regular Meeting Minutes August 27, 2002 Page 5 1 the funding issues and stated a great amount of commitment was shown by him taking the time 2 to meet with the City. 3 4 Mayor Hodson encouraged the residents to attend the September 14, 2002 events at Apache 5 Plaza. 6 7 Mr. Mornson reminded the Council that the September 10, 2002 Council Meeting would be held 8 at 8:00 p.m. due to the primaries. 9 10 IX. INFORMATION AND ANNOUNCEMENTS. 11 None. 12 13 X. MISCELLANEOUS INFORMATIONAL DOCUMENTS. 14 None. 15 16 XI. ADJOURNMENT. 17 Motion by Sparks to adjourn the meeting at 7:51 p.m. 18 19 Motion carried unanimously. 20 21 Respectfully submitted, 22 23 24 Heidi Guenther 25 TimeSaver Off Site Secretarial, Inc. 26 27 Ma r 28 ATTEST: 29 City Clerk 30 City Council Regular Meeting Minutes September 10, 2002 Page 1 1 CITY OF ST. ANTHONY 2 3 CITY COUNCIL REGULAR MEETING MINUTES 4 5 September 10, 2002 6 7 CALL TO ORDER 8 Mayor Hodson called the meeting to order at 8:00 p.m. 9 10 PLEDGE OF ALLEGIANCE. 11 Mayor Hodson invited the Council and audience to join him in the Pledge of Allegiance. 12 13 ROLL CALL. 14 Present: Mayor Hodson; Councilmembers Horst, Sparks, Thuesen, and Faust. 15 Absent: None. 16 Also Present: City Manager Mike Mornson. 17 18 CONSIDERATION,DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING 19 ITEMS. 20 21 I. APPROVAL OF SEPTEMBER 10, 2002 CITY COUNCIL MEETING AGENDA. 22 Motion by Councilmember Thuesen to approve the City Council Meeting Agenda of September 23 10, 2002. 24 25 Motion carried unanimously. 26 27 II. PROCLAMATIONS AND RECOGNITIONS. 28 None. 29 30 III._ COMMUNITY FORUM. 31 Mayor Hodson invited residents to come forward at this time and address the Council on items 32 that are not on the regular agenda. 33 34 Hearing none, Mayor Hodson moved forward with the agenda. 35 36 IV. CONSENT AGENDA. 37 38 1. Consider August 27, 2002 Council meetine,minutes. 39 2. Consider licenses and permits. 40 3.. Consider payment of claims. 41 4. Resolution 02-065, re: Consider approval of settlement agreement with Barbarossa and 42 Sons, Inc. 43 44 Councilmember Sparks requested that the Minutes be removed for discussion. 45 46 Motion by Councilmember Sparks to approve the remaining Consent Agenda items. 47 City Council Regular Meeting Minutes September 10, 2002 Page 2 1 Motion carried unanimously. 2 3 Councilmember Sparks requested the following changes: On Page 3, first paragraph, line 4 4 strike everything after the word "would" and add "maintain some consistency within 5 neighborhoods." On Line 10 indicate that the essence of the discussion was that the Planning 6 Commission will look at the design and review process if they receive direction from the City 7 Council. On Page 4, line 12 change "youth employment program" to "youth restitution 8 program." On line 30 change"Apache Plaza"to "St. Anthony Shopping Center." 9 10 Councilmember Faust requested the following change: On Page 5, line 5, change "Apache 11 Plaza"to "St. Anthony Shopping Center." 12 13 Councilmember Horst requested the following changes: Correct the spelling of Melcher 14 throughout the document to be"Melsha." 15 16 Motion by Councilmember Sparks to approve the Minutes of August 27, 2002 with the noted 17 corrections. 18 19 Motion carried unanimously. 20 21 V. PUBLIC HEARINGS. 22 None. 23 24, VI. REPORTS FROM COMMISSIONS AND STAFF. 25 A. Update on the City's Parks. 26 Chair Jindra addressed the Council and reported that the wettest summer on record has caused 27 some problems in the City's parks but things are improving. 28 29 Chair Jindra indicated all the field work is almost done and they are closely watching drainage 30 issues. She then indicated that the fields were seeded but will be redone in areas washed out by 31 the last rainstorm. She also indicated that the new shelter is behind schedule due to the large 32 amounts of rain and its location in a low area. 33 34 Chair Jindra indicated the basketball court, trees and landscaping would be completed next 35 spring and the Commission feels all is going well at the park. 36 37 Chair Jindra reminded residents that the area is a construction site and asked them to stay out of 38 the park and off the fields to avoid damaging the newly seeded grass. 39 40 Councilmember Sparks asked whether the contractor expected to complete the shelter by skating 41 season. Chair Jindra indicated the shelter would not open until next year. 42 43 Councilmember Thuesen asked if the wet area in the park would drain better than it does now so 44 that there would be no chance of flooding and damaging the new pavilion. Chair Jindra 45 indicated that drain tile would be installed and the area built up to eliminate the drainage issue. 46 City Council Regular Meeting Minutes September 10, 2002 Page 3 1 Councilmember Thuesen commented that there would be no ball played on the fields next 2 summer to allow time to establish the fields. Chair Jindra indicated the Commission is hoping 3 the fields will be played on next summer. 4 5 Councilmember Thuesen asked if the pavilion would be ready. Chair Jindra indicated that it 6 would be. 7 8 Councilmember Horst commented that it does not look like any grass is growing. Chair Jindra 9 indicated that most of it washed away and said it would be reseeded this weekend. 10 11 Councilmember Horst indicated he had thought that the grass needed a season to establish before 12 being played on. Chair Jindra indicated the Commission is hoping the grass will grow this fall to 13 the point of being able to mow it and then grow in the spring and be ready to be played on for 14 summer. 15 16 Councilmember Thuesen indicated he could see noticeable grass shortly after it was hydro 17 seeded. He then said he is hopeful that they hydro seeding will shorten the process. 18 19 Mayor Hodson indicated he was at the football game this past Friday and after heavy rains it 20 seems there is a large amount of drainage being redirected and it is flooding out the track area of 21 the football field. Chair Jindra indicated that the sprinkler system was left on in addition to the 22 large rainfall amounts. She then indicated that is a very wet area of the park and drain tile will 23 be installed. She also noted the Commission took a tour last night of the park and that is 24 something that needs to be dealt with. 25 26 Mayor Hodson asked for an update on Silver Point. Chair Jindra explained that the City held up 27 the contract while waiting for funds from the DNR and went past the 100 days which means the 28 contractor does not have to honor the original bid. She then said that the Commission is hoping 29 that the DNR will provide the additional funds necessary so that the shelter can proceed and be 30 built yet this winter. 31 32 Councilmember Horst commented that he was not comfortable with spending$257,000 on the 33 warming house in the first place and was very concerned to see that price jump to $293,000. He 34 then suggested that the City seek other bids in an attempt to build the building for the original 35 budgeted amount. He also commented it may not be possible to get additional DNR funding. 36 37 Mr. Mornson indicated the City has$740,000 allocated this year and suggested allocating the 38 funding that would have been used for matching grants for property improvements, if necessary. 39 He further commented that Staff feels confident that they have a case to request more funds from 40 the DNR. 41 42 Councilmember Horst questioned whether the DNR approved of the plans. Mr. Mornson 43 indicated the only condition on the grant was that the City match the grant 50150 and that is what 44 the City is doing. Chair Jindra explained that the structure has not changed, the difference is it 45 was bid out earlier this summer in conjunction with another project and that lowered the bid. 46 She then commented that the fact that the structure has to withstand great amounts of water adds 47 to the cost. City Council Regular Meeting Minutes September 10, 2002 Page 4 1 2 Councilmember Horst indicated he was not entirely comfortable with building the shelter in that 3 location because it is so expensive and has the potential to be damaged and cost more money for 4 repair and replacement. 5 6 Councilmember Faust commented that he was not pleased with the fact that the bid went up by 7 10%. He then asked if it was possible to re-bid with another company. Chair Jindra indicated 8 the Planning Commission discussed that but decided that the costs involved in the bidding 9 process and the time factor pushing the construction into winter would very likely negate any 10 cost savings. She then indicated that Mr. Hartman is involved in negotiations with the contractor 11 at this time. 12 13 Councilmember Faust indicated he does not like being held hostage. Chair Jindra indicated the 14 Planning Commission felt the same way and noted they hope to further negotiate with the 15 contractor. 16 17 Mayor Hodson commented that the costs of re-bidding and the delay in construction pushing the 18 project into winter would negate the savings to the City so he would recommend proceeding 19 with negotiations with this contract. 20 21 Councilmember Thuesen indicated he was not happy with the increase and noted it would cost 22 an additional $9,500 for winter construction. He then suggested that the City needs to keep 23 residents informed on this matter so that they are aware of the situation and do not think the City 24 is spending$300,000 on a warming house during tight budget times. 25 26 Chair Jindra indicated the Commission would like to make residents aware that they are not 27 coming to Council for additional monies. She then said it is a DNR problem and she hopes to 28 solve it through them and not involve extra expense for the City. 29 30 Councilmember Horst asked what would happen if the DNR will not pay. Chair Jindra indicated 31 that the engineer feels the DNR will grant the money but has no definite answer. 32 33 Councilmember Sparks thanked Chair Jindra for all the hard work on the project. 34 35 Mr. Morrison indicated that Staff is looking for direction and Council needs to address whether 36 there is a need for a temporary facility. He then said that, if the project is under construction 37 within 30 days, there would not be skating and no need for a temporary facility. 38 39 Mayor Hodson indicated his recommendation is to proceed and get this done. Councilmember 40 Thuesen indicated he would like to proceed with permanent structure but not with temporary 41 warming house. Councilmember Sparks said she did not think it made sense to have skating if it 42 is under construction. 43 44 Councilmember Horst indicated he is concerned that people think that because the funds are 45 coming from the DNR the City does not need to worry about it. He then said that he feels that 46 all this money could be better spent somewhere else but said he would be fine with it if it is the 47 will of the Council. City Council Regular Meeting Minutes September 10, 2002 Page 5 1 2 Motion by Councilmember Sparks to authorize the expenditure of up to $302,836.30 to construct 3 the warming house at Silver Point Park. 4 5 Ayes—4.Nays— 1(Horst). Motion carried. 6 7 B. Update on Apache Plaza redevelopment. 8 Mr. Prosser addressed Council and provided an update on the Apache Plaza redevelopment. He 9 then indicated that he feels developer has been very diligent in proceeding with this project. 10 11 Mr. Prosser indicated the efforts with the developer have concentrated on identifying major cost 12 factors for the development as that governs the financial feasibility. He then said that the 13 developer is negotiating on an option to purchase. 14 15 Mr. Prosser indicated that there have been some discussions with property owners in that area to 16 see where property acquisition costs might be. 17 18 Mr. Prosser indicated that funding assistance may be available through the Metropolitan Council 19 and the Department of Trade and Economic Development. He then said that the developer is 20 working with the City and has provided information in support of the applications and those 21 have been submitted. 22 23 Mr. Prosser indicated that a second avenue for funding is extraordinary funding. He then said 24 that his firm has suggested the developer take a look at phasing the development to keep costs 25 down and better position the development to receive future funding sources. 26 27 Mr. Prosser indicated that he anticipates that the developer will come before Council within the 28 next 30 to 45 days with preliminary plans for the center that include a phasing plan. He then 29 indicated that, after coming to Council, the next step would be that the developer go back to the 30 community to get feed back and then present to Council a refined development plan. 31 32 Councilmember Sparks commented that it sounds like progress is being made and the option to 33 buy from the bank means there is more concrete information than was available. Mr. Prosser 34 cautioned that the developer is negotiating an option to buy but has not yet purchased the 35 property. 36 37 Mayor Hodson asked if the developer would be bringing a variety of options to Council for 38 consideration. Mr. Prosser indicated his firm has given the developer direction that ideas should 39 be presented to Council. He then said that his understanding was that the community saw 40 Apache as a source of pride and energy for the community and they are looking for something to 41 replace that. He further indicated that the planvould not look exactly like the concept plan but 42 the community input and dialogue from Council should drive the design not the developer 43 making decision. 44 45 Mayor Hodson indicated Council had put together a task force to develop concepts for the area. 46 He then said he would not be in favor of a giant candle manufacturing facility in the middle of it City Council Regular Meeting Minutes September 10, 2002 Page 6 1 but would entertain options that include a gathering spot, homes for rental and retail sale, and 2 retail. 3 4 Councilmember Faust asked if Mr. Prosser was comfortable with the timeframe. Mr. Prosser 5 indicated he feels the developer is using his time wisely and will be prepared to present options 6 to Council within 30 to 45 days. 7 8 C. Update on Financial Strategies. 9 Jim Prosser, Ehlers& Associates, addressed the Council and provided an overview of the key 10 financial strategies. Mr. Prosser commended Council and Staff for the very serious way they 11 undertook this review. 12 13 Prosser reviewed the key financial strategies for the City and they are as follows: 14 15 *Monitor Apache Redevelopment 16 *PW and Fire Station Option Analysis 17 *Prepare Facility Needs Study 18 *Housing Options Study 19 20 *Review Fund Balance Policy 21 *Prepare Debt Study 22 *Prepare Alternative Revenue Analysis 23 24 *Update Vehicle/Equipment Replacement Program and Funding Sources 25 *Annual CIP 26 *Prepare Non-Annual Recurring Maintenance Schedule 27 *Revise Assessment Policy to Address Pavement Management Activities. Conkidw&ing 28 Assessed Portions and Interest Rate 29 30 *Property Tax Need Review 31 *Review Budget Option Analysis as Part of Budget Process 32 *Prepare Three Year Budget Forecasts 33 *Identify a Limited Number(1-3) of Selected Services for Competitive Pricing on 34 Annual Basis 35 36 *Accept Key Financial Strategies 37 *Adopt Debt Policies as Outlined in Credit Section of Report 38 39 *Revise Fee Structures Annual to Reflect Changes in Cost of Services 40 *Complete Evaluation of On-Sale Liquor Sale Operation 41 42 Mr. Prosser thanked Staff for working so hard on this and said they did most of the work. He 43 also thanked Council for their efforts and insight into the process. 44 45 Councilmember Thuesen expressed his appreciation for the process and what it has done for the 46 City and will do in the future. He then said he was skeptical when the process began but he has 47 learned a lot along the way and feels certain that this will help future Councils. City Council Regular Meeting Minutes September 10, 2002 Page 7 1 Councilmember Sparks asked Mr. Momson how he saw the City proceeding and which pieces 2 Council would work on in the next year or two. Mr. Morrison indicated the key financial 3 strategies would become part of the budget book and would be discussed at the annual goal 4 setting retreat. He then said that 13 of the 19 action steps have already been started. 5 6 Councilmember Faust thanked Mr. Prosser, Mr. Morrison and the rest of the Staff for their 7 assistance with this matter. He then said that the strategies needed to be a living document to 8 assist the City with long term planning. 9 10 Mayor Hodson said he would like to go on record and the City Manager and his Staff credit for 11 the process and the recommendation to have Mr. Prosser look at this. He then said that he is 12 impressed to hear that Staff has begun implementing 13 of the 19 action items. 13 14 Mayor Hodson thanked Mr. Prosser for the presentation. 15 16 VII. GENERAL POLICY BUSINESS OF THE COUNCIL. 17 A. Consider Resolution 02-064, re: Adopt proposed 2003 tax levy and budget. 18 Mr. Mornson reviewed the resolution with the Council and indicated that the general fund levy 19 was reduced by$31,340. He then explained that due to the projected local government aid the 20 City was asked to reduce its levy amount. Councilmember Faust commented that the State did 21 not ask, it told the City to lower the amount. 22 23 Mayor Hodson suggested Council should discuss the assessment policy as suggested by Mr. 24 Prosser. Mr. Mornson indicated that Staff could survey what other communities are doing and 25 then suggested holding a work session to discuss it. He then indicated the City assesses 35% 26 now and would be asking those that have not had their streets done yet to pay more as well as 27 assessing for sealcoating and crack filling. 28 29 Mr. Morrison commented that the City does not assess residents on MSA road as that was a 30 policy set by Council in 1993. He then said that there have been resident complaints that the 31 policy is not fair to other residents who have to pay for roads. 32 33 Mr. Mornson indicated the City's truth-in-taxation hearing would be held on December 9, 2002. 34 35 Motion by Councilmember Faust to adopt Resolution 02-064,re: Adopt proposed 2003 tax levy 36 and budget. 37 38 Motion carried unanimously. 39 40 Mr. Morrison asked for Council feedback on his proposal to use the revenue from Tires Plus to 41 help fund the capital equipment for 2003. 42 43 Mayor Hodson indicated he was comfortable with the recommendation. 44 45 Councilmember Sparks asked what the money would ordinarily be used for. Mr. Morrison 46 indicated the funds have been accumulating each year and total $325,000. He then explained 47 that the City gets $75,000 in lease payments from Tires Plus each year and takes $15,000 to set City Council Regular Meeting Minutes September 10, 2002 Page 8 1 aside for future building improvements and maintenance. He further commented that the City 2 bought the Tires Plus building in 1996 with HRA money and the intent was to take the lease 3 payments to pay the City back. 4 5 Councilmember Sparks asked if the money would be needed if the City needs to rebuild the 6 store. Mr. Mornson indicated Staff had not considered that as an option for the funds at this time. 7 He then said that the property at Apache is a valuable piece of real estate and commented that 8 Staff has not looked at the difference between what the City would get for the property and what. 9 the new store would cost or at funding that amount. 10 11 Councilmember Faust commented that he felt this would be a good use for the funds. 12 13 Mr. Mornson indicated there was time for consideration of the proposal as Council has until 14 December to approve the budget. 15 16 Councilmember Sparks indicated she was not comfortable with the recommendation at this time. 17 18 Mayor Hodson indicated he was comfortable with the City Manager's recommendation for how 19 to proceed with the budget. 20 21 Mr. Mornson explained that Council had said it did not want to borrow money to pay for capital 22 equipment and would prefer to use cash on hand and this is Staff s proposal for funding capital 23 equipment. 24 25 Councilmember Sparks asked if Mr. Mornson felt the recommendation should be reconsidered 26 based on Mr. Miller's letter. Mr. Mornson indicated there was time between now and December 27 for more consideration of the budget. He then said that a pumper truck that is ordered now is not 28 delivered for 12 months, leaving time to look at other funding. 29 30 Councilmember Horst commented that in looking back at other Councils one of the things he 31 noticed is that they were conservative and saved money for rainy days. He then said that he 32 would like to take heed of Mr. Miller's letter and consider setting up reserves for future use. 33 34 Councilmember Thuesen commented that former Councils were very conservative but said one 35 could debate they were conservative at the expense of capital improvements and that is why 36 there are financial difficulties now in funding those capital improvements. He then said that 37 there is a time to save and a time to buy and it is a fine line between the two but sometimes 38 spending a little money now saves you more in the long run. 39 40 Councilmember Horst commented that it is more than capital improvements as it had generally 41 been a policy to keep some in reserve and this Council should bear in mind there may be 42 opportunities to save for future rainy days. He then said that previous Council had money in 43 reserves and this Council voted to use it because it did not look like it would rain,but it did. 44 45 Councilmember Thuesen commented that the reserves grew at a cost to the City's infrastructure. 46 City Council Regular Meeting Minutes September 10, 2002 Page 9 1 Mayor Hodson said he was comforted to know the City Manager and financial staff keep 2 themselves informed through the League of Minnesota Cities and can advise Council on these 3 types of situations. 4 5 VIII. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS. 6 Mr. Mornson reported that the kick off meeting for the public works task force was.held on 7 September 3, 2002. He then said the next step would be a tour of the existing fire station and 8 public works facility and tours of new facilities. An open house has tentatively been set for 9 December 10, 2002 and February 18, 2003. 10 11 Mr. Mornson reported that Culvers had executed a purchase agreement for the purchase of 12 Exhaust Pro. He then said he met with Culvers last week and there will be some changes to the 13 developers agreement because they would like Hardee's to come down immediately in order to 14 allow the parking lot to be paved before winter to facilitate a March opening. 15 16 Mr. Mornson indicated the City would have Hardee's demolished within two weeks. 17 18 Mr. Mornson reported that the.City closed on 4029 Shamrock. 19 20 Mr. Mornson reported that the Salvation Army property should begin being improved by next 21 year at this time. 22 23 Mr. Mornson reported that the candle manufacturer was to be out of the facility by September 1, 24 2002 and he is not so the City sent a letter indicating he is in violation of the conditional use 25 permit and was informed that they intend to work on getting out by the end of the week. 26 27 Mr. Mornson asked whether any Councilmembers wanted to sit at a booth at the shopping 28 center. Council did not have an interest in doing so. 29 30 Mr. Mornson indicated that the Greater Metropolitan Housing Agency would be coming to the 31 next meeting to talk about the revolving loan program and HRA money from the Department of 32 Housing. He then indicated that he had heard that one resident used that service after he 33 obtained a bid for roofing to verify whether the bid was good. 34 35. Mayor Hodson asked that information concerning the program run on the cable channel. Mr. 36 Mornson indicated he would provide quarterly reports on the matter as a lot of residents do not 37 know the program is available. 38 39 Councilmember Sparks asked how residents could obtain information on the program. Mr. 40 Mornson indicated residents should call Sue. 41 42 Councilmember Horst reported that he had attended the Community Services Board meeting and 43 the discussion revolved around belt tightening and budget revisions. He then encouraged 44 residents to take advantage of the programs available. 45 46 Councilmember Sparks had no report. 47 City Council Regular Meeting Minutes September 10, 2002 Page 10 1 Councilmember Thuesen reported that he had contacted Kay Andrews of Northwest Youth and 2 Family Services concerning his intent to try to attend some monthly meetings during the school 3 year and most meetings in the summer and she seemed comfortable with that. 4 5 Councilmember Faust indicated he serves on the Northeast Diagonal Use Transit Policy 6 Advisory Committee and indicated he has a copy of the recently finished Land Use Transit 7 Study for the area if anyone is interested in reviewing it. 8 9 Mr. Mornson indicated an update would be provided at the next meeting on the Land Use Transit 10 Study. 11 12 Mayor Hodson indicated that he would need to ask his alternate to attend the North Suburban 13 Cable Commission meeting as he is unavailable. He then said that there is the potential for the 14 City's contributions to that organization to go up 10 to 15% as the Commission has spent down 15 its reserves over the last few years. 16 17 Mayor Hodson asked Staff to look into posting signs in the park asking residents to keep off the 18 grass and away from the construction areas. Mr. Mornson agreed to work with Staff to have 19 some signs made up and said that the grass would be monitored to ensure it is ready for activity 20 next summer. 21 22 IX. INFORMATION AND ANNOUNCEMENTS. 23 None. 24 25 X. MISCELLANEOUS INFORMATIONAL DOCUMENTS. 26 None. 27 28 XI. ADJOURNMENT. 29 Motion by Councilmember Horst to adjourn the meeting at 9:30 p.m. 30 31 Motion carried unanimously. 32 33 Respectfully submitted, 34 35 36 Joan Lenzmeier 37 TimeSaver Off Site Secretarial, Inc. 38 39 Mayor 40 ATTEST: 41 City Clerk 42 43 City Council Regular Meeting Minutes September 24, 2002 Page 1 1 CITY OF ST. ANTHONY 2 3 CITY COUNCIL REGULAR MEETING MINUTES 4 5 September 24, 2002 6 7 CALL TO ORDER 8 Mayor Hodson called the meeting to order at 7:00 p.m. 9 10 PLEDGE OF ALLEGIANCE. 11 Mayor Hodson invited the Council and audience to join him in the Pledge of Allegiance. 12 13 ROLL CALL. 14 Present: Mayor Hodson; Councilmembers Horst, Sparks, Thuesen, and Faust. 15 Absent: None. 16 Also Present: City Manager Mike Mornson. 17 18 CONSIDERATION,DISCUSSION,AND POSSIBLE ACTION ON ALL OF THE FOLLOWING 19 ITEMS. 20 21 I. APPROVAL OF SEPTEMBER 24, 2002 CITY COUNCIL MEETING AGENDA. 22 Motion by Councilmember Sparks to approve the City Council Meeting Agenda of September 23 24, 2002. 24 25 Motion carried unanimously. 26 27 II. PROCLAMATIONS AND RECOGNITIONS. 28 1. Proclamation declaring St. Anthony Kiwanis Peanut Day. 29 30 Councilmember Thuesen read the Proclamation declaring St. Anthony Kiwanis Peanut Day 31 Friday, September 27, 2002. 32 33 Motion by Councilmember Sparks to approve the Proclamation declaring St. Anthony Kiwanis 34 Peanut Day Friday, September 27, 2002. 35 36 Motion carried unanimously. 37 38 Councilmember Sparks indicated that Kiwanis would be selling peanuts from 7:00 a.m. to 6:00 39 p.m. on September 27, 2002 and asked residents to look for them. 40 41 III. COMMUNITY FORUM. 42 Mayor Hodson invited residents to come forward at this time and address the Council on items 43 that are not on the regular agenda. 44 45 Hearing none, Mayor Hodson moved forward with the agenda. 46 47 IV. CONSENT AGENDA. City Council Regular Meeting Minutes September 24, 2002 Page 2 1 2 A. Consider September 10, 2002 Council meeting minutes. 3 B. Consider licenses and permits. 4 C. Consider payment of claims. 5 6 Motion by Councilmember Sparks to approve the Consent Agenda as presented. 7 8 Motion carried unanimously. 9 10 V. PUBLIC HEARINGS. 11 None. 12 13 VI. REPORTS FROM COMMISSIONS AND STAFF. 14 A. Presentation on Northeast Diagonal Land Use and Transfer Study. 15 16 Alicia Vap provided Council with an update on the Northeast Diagonal Land Use/Transit Study. 17 18 Ms. Vap indicated the purpose of the study was to assess the effect of changing land use on 19 transit ridership. 20 21 Ms. Vap reviewed the planning process for the study. 22 23 Ms. Vap indicated that an overview of the demographics was done and the Northeast diagonal 24 lags behind the metro area in growth. 25 26 Ms. Vap indicated a transportation assessment was done. 27 28 Ms. Vap indicated they decided to look at all the acreage in the study within '/2 mile buffer of the 29 corridor. And, of that land, 17% is vacant but not developable, and of the 17%just over 500 30 acres of it is developable in the study. 31 32 Ms. Vap indicated three definitions were created for the opportunity sites. 33 34 Ms. Vap indicated the first definition was current trends and basic local existing conditions 35 designated by the Comprehensive Plan. The next definition was moderate smart growth, 36 designing for people and for pedestrian friendliness with a density of 7 to 12 units per acre. 37 38 Ms. Vap indicated the third definition was intensive smart growth with a density of 8 to 24 units 39 per acre. 40 41 Ms. Vap indicated that those scenarios were applied to the opportunity sites to come up with the 42 numbers for how making changes could affect employment and population in the corridor. 43 44 Ms. Vap indicated that the travel pattern analysis indicates Roseville and downtown Minneapolis 45 are important origins and destinations. She then said, to be successful, transit service would 46 need to connect intermediate points rather than just the end-to-end destinations. 47 City Council Regular Meeting Minutes September 24, 2002 Page 2 1 2 A. Consider September 9, 2002 Council meeting minutes. 3 B. Consider licenses and permits. 4 C. Consider payment of claims. 5 6 Motion by Councilmember Sparks to approve the Consent Agenda as presented. 7 8 Motion carried unanimously. 9 10 V. PUBLIC HEARINGS. 11 None. 12 13 VI. REPOR'T'S FROM COMMISSIONS AND STAFF. 14 A. Presentation on Northeast Diagonal Land Use and Transfer Study. 15 16 Alicia Vap provided Council with an update on the Northeast Diagonal Land Use/Transit Study. 17 18 Ms. Vap indicated the purpose of the study was to assess the effect of changing land use on 19 transit ridership. 20 21 Ms. Vap reviewed the planning process for the study. 22 23 Ms. Vap indicated that an overview of the demographics was done and the Northeast diagonal 24 lags behind the metro area in growth. 25 26 Ms. Vap indicated a transportation assessment was done. 27 28 Ms. Vap indicated they decided to look at all the acreage in the study within %mile buffer of the 29 corridor. And, of that land, 17% is vacant but not developable, and of the 17%just over 500 30 acres of it is developable in the study. 31 32 Ms. Vap indicated three definitions were created for the opportunity sites. 33 34 Ms. Vap indicated the first definition was current trends and basic local existing conditions 35 designated by the Comprehensive Plan. The next definition was moderate smart growth, 36 designing for people and.for pedestrian friendliness with a density of 7 to 12 units per acre. 37 38 Ms. Vap indicated the third definition was intensive smart growth with a density of 8 to 24 units 39 per acre. 40 41 Ms. Vap indicated that those scenarios were applied to the opportunity sites to come up with the 42 numbers for how making changes could affect employment and population in the corridor. 43 44 Ms. Vap indicated that the travel pattern analysis indicates Roseville and downtown Minneapolis 45 are important origins and destinations. She then said, to be successful, transit service would need 46 to connect intermediate points rather than just the end-to-end destinations. 47 City Council Regular Meeting Minutes September 24, 2002 Page 3 1 Ms. Vap indicated a ridership forecast was done assuming a 10-minute peak and 15-minute 2 during the day with 13 stops along the corridor with the average stops 1.5 miles. 3 4 Ms. Vap indicated the route model used was from the Metropolitan Council and that would be 5 redone if this moves forward. 6 7 Ms. Vap indicated that the ridership forecast predicts that applying the moderate growth rate 8 increases ridership by 20%and the intensive smart growth would increase ridership by 32%. 9 10 Ms. Vap indicated the study supports the theory that growth positively increases transit ridership 11 and implementing moderate or intensive smart growth should be considered to have the most 12 positive impact. 13 14 Ms. Vap indicated that some of the positive impacts would be added tax base, employment, 15 retail, and population with more choices for housing and more connectivity throughout the 16 corridor. 17 18 Ms. Vap reviewed the specific community recommendations of the study and they are to 19 implement land use and transportation changes to the local comprehensive plan that supports the 20 corridor, related to smart growth scenario recommendations and transit-friendly mixed-use 21 development patterns. 22 23 Ms. Vap reviewed the county recommendations and they are to finalize the purchase of the 24 partially abandoned railroad right-of-way in the Northeast Diagonal Corridor, to purchase future 25 abandoned railroad right-of-way in the Corridor, and continue to communicate with the railroad 26 on the activity of the railroad in this corridor as a freight use and potential for public ownership, 27 and to pursue discussions with railroad about joint use of railroad right-of way as future 28 transitway if the active freight railroad corridor does not come up for abandonment. 29 30 Ms. Vap reviewed the corridor recommendation and that is to build transit ridership in the 31 corridor using Highway 36 or a parallel route with high frequency service and speed before 32 transitway is implemented. 33 34 Ms. Vap reviewed the next steps for the committee and those are to complete community 35 presentations,work with Metropolitan Council to create sample transit oriented development 36 overlay district language, to monitor progress on opportunity sites development, and noted there 37 is a Policy Advisory Committee meeting on January 16, 2003. 38 39 Ms. Vap indicated part of the study focused on long range transit development will not happen 40 overnight but could be done incrementally. 41 42 Ms. Vap indicated that communities would need to think more like a corridor to be successful. 43 She then thanked Councilmember Faust for serving on the Committee and for the use of Council 44 Chambers. 45 46 Councilmember Thuesen asked where the funding comes from for the purchasing of right-of- 47 way. City Council Regular Meeting Minutes September 24, 2002 Page 4 1 2 Ms. Vap indicated they have a commitment from MNDOT for special funding source through 3 rail banking and the rest of the funding would come through Hennepin and Ramsey County 4 Regional Rail Authority. 5 6 Councilmember Faust asked if the right-of-way from St Anthony down to Minneapolis had been 7 purchased. 8 9 Ms. Vap indicated they were still working on that portion. She then indicated that a dollar 10 amount was agreed to with the railroad but they decided to update the appraisal and will 11 renegotiate. 12 13 Councilmember Faust commented that as St. Anthony looks at redevelopment growth within the 14 City this proposed transit should have a positive impact on the City. He then thanked Ms. Vap 15 for her efforts and said he thinks it is an excellent plan and efforts should be made to begin 16 implementation of it. 17 18 Councilmember Faust commented that streetcars were an economical and efficient way to move 19 people and this is a similar suggestion. 20 21 Councilmember Thuesen asked if successful redevelopment of Apache would give this proposal 22 more incentive to get the transit up and running more quickly or provide incentives for funding 23 the project. 24 25 Councilmember Faust said he sees the Apache redevelopment as one part of the puzzle and said 26 that the system would be built one piece at a time. 27 28 Councilmember Sparks asked how much right-of-way has been purchased. 29 30 Ms. Vap indicated the portion purchased is only three to five miles long. 31 32 Ms. Vap indicated the City of Minneapolis is working with St Anthony to build a pedestrian trail. 33 34 Councilmember Faust commented that this is not just a busway or trailway it could be a bike 35 path. 36 37 Ms. Vap indicated the right-of-way is wide enough throughout the whole corridor to 38 accommodate a busway and a pedestrian trial and that is something that is being looked at with 39 the study. 40 41 Mr. Mornson indicated the intent is to have a walking/biking path from Minneapolis to St. Paul. 42 43 Mayor Hodson said he is an advocate of transit and this is exciting. He then asked if there would 44 be a way to tie in to funding sources coming up with the T21 transportation funding in an attempt 45 to tie in Apache Plaza transportation. 46 City Council Regular Meeting Minutes September 24, 2002 Page 5 1 Mayor Hodson indicated that this should be on someone's radar screen right now with potential 2 upcoming funding from congress. 3 4 Ms. Vap indicated the other person leading the project is in transit and community works and she 5 said she would relay the message. 6 7 Mayor Hodson indicated he would be happy to commit to sitting down with someone to discuss 8 that. 9 10 B. Discussion on Greater Metropolitan Housing 11 12 Jennifer Bergman of the Greater Metropolitan Housing Agency indicated that they began 13 providing services to residents on July 1, 2002 and had already served 27 clients with 20 of those 14 being construction consultations. She then indicated they had been in contact with Staff 15 concerning the creation of a revolving loan program with approximately$100,000 available for 16 the loan program. 17 18 Ms. Bergman indicated they are proposing a 4% interest loan with a maximum loan amount of 19 $10,000 and a max term of 7 years. She then provided an overview of the program they 20 administer in Roseville. 21 22 Ms. Bergman commented that since the beginning of the Roseville program they have done 60 23 loans for over$480,000 worth of total rehabilitation. 24 25 Ms. Bergman indicated that there is a rehab incentive program through the Minnesota Housing 26 Finance Agency and noted the City's application would be decided upon on Thursday. She then 27 said that, if the application is approved, the City would have available $50,000, $45,000 of which 28 could be used for loans and $5,000 would be set aside for emergencies. 29 30 Ms. Bergman commented that homeowners usually invest more than the loan amount in their 31 homes. 32 33 Ms. Bergman indicated the Minnesota Housing Finance Agency loans funds at 6.5%with a 34 maximum income of$77,000 and the maximum income on the rebate is $88,205 so this is a very 35 generous program. 36 37 Mayor Hodson commented that this is a very exciting program to assist the City with 38 redevelopment of its aging housing stock. 39 40 Councilmember Faust questioned if there were already 20 contractor consultations. 41 42 Ms. Bergman indicated the construction manager has visited with 20 homeowners since July 1, 43 2002. 44 45 Ms. Bergman indicated that there were a few calls in June,more in July and an increase in 46 August. She then noted there would be a slower time during the winter as construction slows. 47 City Council Regular Meeting Minutes September 24, 2002 Page 6 1 Councilmember Thuesen indicated the City wants to help those in need and then asked if there is 2 a safeguard in place to guard against defaults. 3 4 Ms. Bergman indicated that the loans all go through underwriting and the loans given are all 5 repayable. She then indicated that loans are only given to credit worthy residents and there are 6 limited funds available to those with tarnished credit through other sources. She further 7 indicated that they have had only one or two defaults in the loan program. 8 9 Councilmember Sparks asked what other services are available to residents other than the loans. 10 11 Ms. Bergman explained that they are experts in the housing field and provide an array of services 12 to assist residents. She then listed a few of the services available. 13 14 Mayor Hodson said he would like to maintain a continued communication effort to keep 15 residents informed of the services available. He then asked Ms. Bergman to provide information 16 on the services available to be placed on the City's website. 17 18 Councilmember Thuesen suggested putting contact information in the newsletter. 19 20 Ms. Bergman suggested having a link to their website from the City website. 21 22 Ms. Bergman provided a brochure to Council and noted that the brochure would be updated to 23 include St. Anthony if the application is approved. 24 25 Mr. Mornson asked if the organization does a mix and match program if.someone qualifies for 26 the fix up fund before going to the revolving loan fund because the $100,000 would go fast 27 versus state programs funding. 28 29 Ms. Bergman indicated that she would speak to Staff concerning that. 30 31 Mayor Hodson asked if there was a way to look at using HRA funds or funds from some source 32 within the investment portfolio that could be directed into this program. 33 34 Mr. Mornson indicated that the $100,000 is proposed to come from HRA funds to start this 35 program. . 36 37 Councilmember Thuesen indicated it is difficult to measure but he feels that boosting 38 deteriorating areas produces a positive byproduct for the community. 39 40 Ms. Bergman indicated that they do a lot of work through word of mouth because someone does 41 some rehab and tells the neighbor and whole blocks are rehabilitated. 42 43 Mr. Mornson asked council to move approval of the revolving loan program of$100,000 from St 44 Anthony HRA funds. He then said that the City would begin with a$30,000 contribution and 45 add funds as needed. 46 City Council Regular Meeting Minutes September 24, 2002 Page 7 1 Motion by Councilmember Faust to approve the use of$100,000 of HRA funds for the Housing 2 Redevelopment Program under the dispensation of the City Manager and the Finance Manager. 3 4 Motion carried unanimously. 5 6 VII. GENERAL POLICY BUSINESS OF THE COUNCIL. 7 None. 8 9 VIII. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS. 10 Mr. Mornson indicated there would be a Public Works Fire Facility Task Force open house in 11 February of 2003 and said there should be a presentation to Council on April 8, 2003. He then 12 said that there is a tour this Saturday and the Mayor is the official photographer. 13 14 Mr. Morrison reported that the City is making progress on the goals for 2002. 15 16 Mr. Mornson reported that he met with the candle manufacturer and they will be moving out 17 tomorrow. He then explained that they have not assembled any candles but have been moving 18 and boxing things. 19 20 Mr. Mornson said he feels the Greater Metropolitan Housing Agency annual allocation is worth 21 the expenditure because there have been 27 applications in 60 days. 22 23 Councilmember Horst had no report. 24 25 Councilmember Sparks noted the Community Concerts at the High School were scheduled for 26 Thursday, September 26, 2002 and said there are still tickets available. 27 28 Councilmember Sparks indicated that the Community Prevention Coalition has changed its name 29 to Family Services Collaborative and includes the Cities of St. Anthony and New Brighton. She 30 then said that funding should begin funneling in shortly and the intent of the organization is to 31 assist with school readiness and guarantee school success,mental health, and safe and stable 32 homes to keep kids out of correction systems and in school. 33 34 Councilmember Thuesen indicated he met with Faith United Methodist Church last week 35 concerning affordable housing and how that ties into the Apache Plaza redevelopment. 36 37 Councilmember Thuesen indicated that residents should have received information about the 38 November 5 election concerning the referendum for liquor licenses and Sunday sales. He then 39 said that both issues could be key to the redevelopment of Apache Plaza if the City wants to have 40 the opportunity to have a restaurant come in. He further asked residents to contact City Hall with 41 any questions they may have concerning the referendum. 42 43 Councilmember Thuesen indicated the Mayor would be giving a presentation on Liquor sales at 44 the October 22, 2002 Council meeting and invited residents to attend. 45 46 Councilmember Faust indicated he met with the Mayor and City Staff on September 16, 2002 to 47 discuss transportation with the University of Minnesota. City Council Regular Meeting Minutes September 24, 2002 Page 8 1 2 Councilmember Faust explained that rather than going to the legislature in November the 3 legislative kickoff would be held the second week of January to allow the newly elected officials 4 time to get settled in: 5 6 Councilmember Faust noted the September 12, 2002 StarTribune contained a very nice article 7 about the firefighters and he recommended that residents read the article and thanked the 8 firefighters for their efforts. 9 10 Mayor Hodson commented that he was very excited about the Housing Redevelopment Program 11 because it will provide progress toward the City's goal of reinvesting back into the City. 12 13 Mayor Hodson indicated that he and Councilmember Faust had met with some Ph.D.'s with the 14 Humphrey Institute concerning the transportation study and there may be an opportunity for the 15 City, as a first ring suburb to go after some of the'transportation funds as a smart growth City. 16 17 Mayor Hodson apologized for the scratchy voice and coughing. He then said that the event at 18 the Village Shopping Center was well attended and there were a lot of people attempting to dunk 19 him in the dunk tank. 20 21 IX. INFORMATION AND ANNOUNCEMENTS. 22 None. 23 24 X. MISCELLANEOUS INFORMATIONAL DOCUMENTS. 25 None. 26 27 XI. ADJOURNMENT. 28 Motion by Councilmember Faust to adjourn the meeting at 8:05 p.m. 29 30 31 Motion carried unanimously. Y 32 Respectfully submitted, 33 34 Joan Lenzmeier 35 TimeSaver Off Site Secretarial, Inc. 36 37 Mayor 38 ATTEST: 39 City Clerk