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HomeMy WebLinkAbout04/29/1998URBAN AFFAIRS ADVISORY COMMITTEE MINUTES APRIL 29, 1998 1. CALL TO ORDER The meeting of the Urban Affairs Committee was called to order by Chairman John W. McKay at 7:05 p.m. Members Present: John W. McKay, Shirley Doering, Sharon R. Schwartz. Member Pam Sohlberg arrived at 7:15 p.m. and Member Shelly J. Madore arrived at 7:20 p.m. Members Absent: Robin Curran and Van Holston Staff Present: Police Chief Roger Willow, Police Captain Terry Cook, Assistant City Attorney Shazon Hills. Guest Present: Minneapolis Police Lieutenant Phil Hafvenstein, commander of the pawnbroker license investigation division for Minneapolis. 2. APPROVAL OF APRIL 29, 1998 AGENDA MOTION: Shirley Doering moved, Shazon Schwartz seconded a motion to approve the agenda. The motion carried 3-0. 3. APPROVAL OF MARCH 25, 1998 MINUTES MOTION: Shirley Doering moved, Sharon Schwartz seconded, a motion to approve the Mazch 25, 1998, meeting minutes. The motion carried 3-0. 4. PAWNSHOPS, SECONDHAND GOODS STORES AND PRECIOUS METAL DEALERS ORDINANCE a. Police Chief Roger Willow introduced Minneapolis Police Lieutenant Phil Hafvenstein, commander of the Minneapolis pawnbroker license investigation division. Lieutenant Hafvenstein stated that the City of Minneapolis currently has an ordinance regulating pawnbrokers and is in the process of drafting and enacting an ordinance regulating secondhand goods dealers. Lieutenant Hafvenstein also explained the automated pawnbroker system ("APS"). In response to Chairman McKay's inquiry, Lieutenant Hafvenstein advised the Committee that the implementation of the APS is a blessing to Minneapolis' regulation of pawnbrokers. He added that the APS is supported by the pawnbrokers and pawn shops located in the City of Minneapolis, adding that the APS transaction fee has not been an issue to the pawnbrokers. Lieutenant Hafvenstein noted that the two lazgest pawnbroker companies in Minnesota currently have a license application pending in Minneapolis. Lieutenant Hafvenstein advised that the APS has accomplished the following for the City of Minneapolis: eliminated 35,000 paper transaction tickets; deleted afull- time paid position required for the manual data entry prior to the APS; made the transaction data 100% more accurate than manual data entry of the transaction; eliminated a half day of an officer's time necessary in picking up and delivering manual pawn records from the shops to the police department; provides an excellent "intelligence" source for theft investigation. Lieutenant Hafvenstein, in reference to Apple Valley's proposed ordinance amendment, suggested that the hold period by the licensees before resale be changed from ten days to 30 days. He explained that stolen goods either cannot be tracked within the ten days of the date of the theft or simply do not show up in the licensees' possession within the ten days. He advised the Committee that since the implementation of the APS their recovery of stolen property has increased 60%. Lieutenant Hafvenstein further stated that based on his experience in the City of Minneapolis, there is no distinction between pawnbrokers and second-hand dealers as both are equally susceptible to receive and purchase stolen property. He further stated that to have the most effective and efficient use of the APS, the City should incorporate an "Operation ID" public education program encouraging residents to mark their personal property with individualized identification. Lieutenant Hafvenstein further discussed the application of pawnbroker and second-hand dealer regulations to antique dealers. Lieutenant Hafvenstein also discussed issues regarding licensed auctioneers and auction houses. He noted that while auctioneers must be licensed by the State, auction houses are not licensed and, in essence, are second-hand goods shops. He stated that it is common knowledge that the auction houses located in Minneapolis are a haven for disposal of stolen property. He recommended that the Apple Valley second-hand goods regulations apply to auction houses. In response to Chairman McKay's inquiry, Lieutenant Hafvenstein stated that the greater resistance came from the second-hand goods dealer than the pawn industry. He noted that the City of Apple Valley should keep in mind that while it may receive resistance from second-hand goods dealers, second-hand goods dealers have been under regulation in Minnesota since 1988. He further stated that the City of Apple Valley would not be receiving resistance from the pawn industry because currently there are no pawn shops in the City and when a pawn dealer does come into the City, he/she will just accept the regulations as a matter of course. In response to Member Schwartz' inquiry, Lieutenant Hafvenstein said the City of Minneapolis had not received significant resistance with respect to computer use requirements for the APS system. He added that he believes that is because the City does not require the licensees to obtain and use a specific computer system, but merely requires the licensees to use a program that complies with the specific format for the transaction data. He further added that the City of Minneapolis does not require a licensee to use the APS reporting method if the licensee has less than 400 transactions per year. In such a case, only paper reporting is required. Assistant City Attorney Sharon Hills discussed with the Committee the City's options in addressing the regulation or exemption of antique dealers. Ms. Hills explained that the focus must be to determine what the City is attempting to regulate or address in its second-hand dealer regulations. Ms. Hills stated that in drafting the ordinance, the City's focus is to enable the Police Department to track the sale of stolen properties to pawn brokers and second-hand goods dealers. Ms. Hills advised that generally antique dealers purchase their inventory at off-site locations, not from persons walking into the store. Thus, antique dealers are not the "quick sale" vehicle for thieves as pawnbrokers or second-hand goods dealers may be. The Committee agreed that the exemption of antique dealers should be restricted to those antique dealers who purchase second-hand goods off the licensed premises. Lieutenant Hafvenstein added that the Apple Valley ordinance should be revised to define the term "antique dealer". The Committee requested that the ordinance amendment be revised accordingly. The Committee decided to set a final hearing on the ordinance amendment for June 4, 1998, at 7:00 p.m. in the Apple Valley City Council Chambers. 5. In closing the meeting, the Urban Affairs Committee directed City staff to revise the draft ordinance amendment to provide the following: 1. Amend Section 15-35(h) to provide that the property shall not be sold within 30 days (rather than the 10 days as currently written), after the transaction records have been provided to the police department; 2. Section 15-40(a)(10) be revised to replace the phrase "pledged goods" to the newly defined term "transaction goods"; 3. General clarification revisions to ensure reference to "second-hand goods dealer" or "second-hand goods" where needed, but inadvertently omitted, in the ordinance amendment; 4. Clarify the applicability of the second-hand goods dealer regulations to "auction house"; and 5. Add definitions for "antique dealer" and "auction house". 6. ADJOURNMENT The meeting of the Urban Affair Committee adjourned at 8:40 p.m.