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.