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Home My WebLink About6.a. Letter from State Auditor on Conflict of Interest � . City of Rosemount Executive Summary For Action CITY COUNCII.MEETING DATE: OCTOBER 4, 1994 AGENDA ITEM: LETTER FROM STATE AUDITOR AGENDA SECTION: ON CONFLICT OF I]NZ�RES'I' NEW BUSINES5 PgEpARED BY: Thomas D. Burt, City Administrator AGENDA NO. 't�� ATTACHMENTS: AUDITOR'S AUGUST 11, 1994 APPR4VEn BY: LETTER The Council recently received correspondence from the staxe auditor's off'ice regarding allegations lodged by unnamed individuals conceming alleged conflicts of interest by Mayor McMenomy. This communication came as a surprise, since no city representatives nor the mayor were contacted by the auditor's office for information or an opportunity to respond to any such allegations. The auditor's office found no such conflicts of interest and reminded the council and the mayor to monitor such issues in the future. La.st week, Mr. �Iarry Willcox called me and asked for further discussion by the Council. Mr• Willcox indicated that he intended to have some citizens make a formal request for the inclusion of such a discussion on the agenda. �hortly thereafter, I received calls from Donna McDonough and Renee Stevenson asking sach a demand. The Council has previously been advised by the past city attorney that none of the mayor's actions have been affected by a conflict of interest, a conclusion which has been confumed by the sta:te auditor. It is unclear why further debate of this issue is sought. However, since there is a request concerning this issue, the Council may want to obtain further facts about the allegations made to the auditor's office and the information provided to that office by the complaining parties. Since neither the Council nor the Mayor are yet aware of what allegations were made and by whom, it may be premature to decide whether this issue merits further review by the Council. If the City Council makes the decisian to discuss this issue at a future meetiug, that decision will have been made on the basis of complete informati.on and full disclosure of who has been involved making such allegations. A prior disclosure of the personal interest and involvement of all parties engaged in such a discussion is obviously required.�t would be unfair to the public, the Council, and the Mayor to proceed in any other fashion. RECOMMEl�TDED ACTION: Provide staff direction of how you would like this issue addressed. COUNCIL ACTION; , � _ ' - .. ...MIif1•�..� � � . .. . . .. . �� ;,�-��►k . S�rf��rr c�r Ml�rti��sc�.t,� �_......... ��.� �,,,..��.;,y�!��:. °�"��'�'% OFFICC OFTI-IC STr�T� AUD[TOR c ��••�� .. �'��,, � 'y i: ';:,o: Su�•fr: �ttfcl � s y . ,� �::.. � ��s ��:�rzx s•rizcr_-r . . ��ii�.nrn �i�o��- .. . . . 5��iv-r i��u� ;;i��3 ��1ARK C3. DAYTON tt,l'_)_�)t,-_551 STATE��UDITOR August 11, 1994 . , . 'I1�e Honorabie Edward B. McMenomy Mayor, City of Rosemount P.O. Box S 10 . Rosemount, Minnesota 5506$-0510 Dear Mayor McMenomy: The Office of the State Auditor has received questions from concerned citizens of Ros�mount regarding your ownership of a real estate afiency and the potenual conflicts of interest for you as Mayor. The citizens described two potenual situadons in which t1�ey believed a conftict of interest could exist 'I'he citizens recognized the responsibitiry of the Mayor to solicit outside business interests and faciiitate development within the City of Rosemount which cauld create a conflict if the businesses were directed to your a�ency for ne�otiating the sale of property. Tlie citizens also questioned whether you may accept • commissions, or be invo(ved as an agent, if the City or Rosemount Porc Auihority (RPA) is purchasing land or financing the purchase and development of land by business enterprises. Tt�e Office of tl�e State Auciitor's Special Invesugations Unic was orsanized to assist locaI governmental units, law enforcement agencies, pubiic accounting firms, and concerned citizens. T�is unit is a fact- finding entity and has no prosecutorial powers. Tt�e role of the.unit is to evaluate allegations brought to this Office's attention, and when appropriate, provide specialized audicinb techniques, initiate an independent investi�ation, or refer the matter to t��e appropriate oversight authorities. Prior to initiating a special investigadon, tl�is unit performs an inquiry. Tt�e purpose of an inquiry is to determine whether sufficient evidence exists to wamznt a special invesugation or a refemsl to the County Attorney of jurisdiction. This letter is to report our inquiry resul�s. In response to other complaints invotving potential conllicts of interest, you received an opinion from tlie City Attorney. We were provided a copy of the City Attorney's January 17, 1994 response, which incorporated his January 10, 1994 memorandum, re�arding conFlicts of interest. We believe that the City Attorney's interpretations were incomplete because they did noc aciciress the applic�bility of state statutes to the fundamental conflict of interest question surrounding the Mayor's position and private business activities. The City Attorney dismissed the applic�tion of Minn. Sta� �471.87 to the specific matter raised and analyzed them based upon the City's Code of Ethics. While the statute may not apply to the specific issues he reviewed, we are convinced that this'statute app(ics to the Mayor's situation. Minn.�5tat. § 471.87 provides in part: �. ..a u li = b c officer t p w o �s at�thonzed o take part in �tnY manner in malcin� any sal�,.,( .ae se, or contrlet in official cap:icity shall not voluntarily have a personal financial interest in that sale, lease, or eontract or personally benefit financially therefrom." (emphasis added) 'I'he statute does not refer to vodng, and accordin�ly, �otendal conflicts are nat limited to contracts on which the official actually votetf. 'Ti�e authorizacion to vote on a matter in which the official has a financial interesi is �1 that is required to create a conflict'of interest. Furthermore, we believe it is not sufficient to �� . •'�..C7 Printcd un Ilrryrlyd P:�prr •,a w"•(i) , �\n I?��u;d Oprurtunuy Em��luycr t . :, � _ ` � T7�e Honor�ble Edw;ird B. McMcnomy � August 11, 1994 Page 2 abstain from voang on potentia! contlict of interest matters. Tf�is guidance, wl�icfi we have reviewed wifh the Attorney General's Office, is based uQon d�e le�al position of the Attomey General in re�ards to conflicts of interest. Op. Atty. Gen. 90e-6, June 15, 1988; Op. Atty. Gen. 90s-1,July 12, 19�3. If you or your company act as the broker or a�ent for a sale of land to the City, we believe you will have a personal financial interest in the contrsct under this statute. To avoid the conf�ict, the City could choose not to enter into any conaract in which you have a such an interest In tfie alternadve ou , couI our d r y osition as Ma r Y elin uish P o . I t ts not sufficlent that you merely abstain from the vote. Contlicts of interest resvlt from an official's authority to taJ:e parc, in any manncr, with the makinb of a contract. "In any manner"is consWed broadly and not me:u�t to be limited to the actual vote on the contract Your authority to discuss or make recommendauons concernin� the transacuon, o coupled with a voluntary interest may be sufficient to constitute a statvtory cont7ict of interest. Finally, we noce this sratute is noc lirnited solely to contracts, but includes s�1es and leases. -• The only exceptions to this rule are listed in Minn. Stat. � 471.83. Tt�e exceptions only apply to contracts for goods or services. They are not available to :illow (and sales in which you have an interest because land is not a good or service. We note d�at the exception in Minn. St�t. � 47I.88, subd. 5 generally aIlows contracLs for goods and serviccs for which competicive bids are not required, if certain requirements are met. First, the vote on the contract must be unanimous. Minn. Stat. � 471.88, subd. 1. Second, the procedures in Minn. Stat. � 471.89 must be foilowed. tiVe note that Minn. Stat. � 471.88, subd. S couId be applicable to you in specific circumstances. We are aware that the City of Rosemount has adopted a Cocie of Ethics which �irectl,v prohioits confIicts of interest. In che J:,u�uary I7, 199d mernorsndum, the Ciry Attorney acknowledges that tt�e Code creates more stringent standards when evaluating potenti;il conflicts of interest than those establis}�ed by statute. Rosemount's Code of Ethic deGnes an "interest" ss an "indirect or direct financi:il or materi:il benefit" Under this standard, it appears that potenual actions ,Ls the tifayor and as a real estate broker could resuIt in a conflict of incerest, as all that is nee�ed is an inciirect financial interest Tl�us, even if the action may not constitute a sta[utory conflict of interest per se, it is easy to foresee a situation where your constituents may interpret your actions as a contlict of intcrest due to die expansive nature of Rosemount's Code of Ethics. While tl�ere is insuf�cient evidence to support a decision to investi�ate funher, we believe t1�at you musi be vigilanc for potentia! coni7icLs bc:cause oC your position as bueJ� Mayor and a prorttinent real estate abent in a developing ciry. We hope this information witl be of assistance to you in fulfilling your dury to the citizens of Rosemount If you have any quesuons or concerns regarding this matter, please contact . Speciai Investigator Knrt Fritsch at (612) 296-2551. Sincerely yours, � �� /j� !��'��,� Paul L. Almirall Deputy State Auditor Special Investigations PLA:c! cc: City CounciI - Ciry Administrator City Attorney Complainants . _ ,� , ' r �: ; ��.« : : , _.4 '�� AUDITOR'S OPINION � �`��'� . �. _ � . - � ,-� �� e��!u6��ensiar��nc��onference w�� By Mark B. Dayton �� .-� � � � ��, _ ;�.�� o�r�ee�Q�s�at�er�ra�cat tuna� � p��cials removed from� office for� � � � � r ,- '�o�cs-for Eh�State.E�.uditor"s�ghtk EYnnuar Public P�� - . � �� Fczni�:�o�erenc��wt11��`a�u�:�o�'the�investmenraeeds €��: �petl M@�tll'I�9 �.aW VIO�at101'iS� �� ei��oc:a�g�vernmen�a�c�retief assoct�°n�� _ In�Minnesota, the public's interest in accountability of local � ev�g-�sttn��.�'icrowtt�.i��Incertain Times,"ttie� � � x government officials is protected by the mandates of the Open � �,y�c��t�e�,r�ngit�g �rani�avoiiiing trouble�t�y Meeting Law,which require most meetings of government bodies ent�`:tor`�e`�tat�Qaa� �ononne onttook.,.�Some,o� �t°`i�" � �;��, to be open to the public. The importance of this law has been made spea�ee�igct�'�llat��P��O��O�� clear in a recent decision by the Minnesota Supreme Court. The �� t�ll�at�c�aII�T�'e,�Slc�e�ttgres�dento�TeffreySlocum��' court, faced with multiple violations of the Open Meeting Law, �� z ,�`;� ` �' �" �� removed from office three members of the Hibbing city council, ��;�� r,� ,�`�w� �, �' �_ `3 = � �`a� including the city's mayor. � �� ul�'�QCtCtE�'E`�'R1�E��i"tC1@[3!R Cavn'�� The case, entitled Claude v. Collins, was brought against � ;�. � �t11tfl[5��'��`��1�"8G��t�Iaf� S'��@ taW��tl members of the Hibbing city council by three city residents,two of �_�� ;��'�"��` �'`��iegin, �ount�r�� adminisicatv�"`�, whom were members of unions representing Hibbing city �� o�ntent contracC��eternuned�t�at the ��g °f �°,,_ employees. The evidence indicated that�the Open Meeting Law� n��Q��I}��y�;��a��i't[te�auatyadministrato�`s. was violated five times. On four occasions, the city council = ��e��eed the�T��l,:�mit '�e review atso found tiiatthe; properly closed four meetings for discussion of labor negotiauons, �� nt toai3ing'�of Taige amounts c�f siek and�acation Ieade was' but then discussed matters other than��labor negotiations at the � � ��tempt tc�cireumv�stat�severance laws by allo�ng tbe;; closed meetings. The council held another meeting in private � `nistraEar° �a�� seeeive additioIIat�� benefits upon F�s;� �without giving notice as required by the Open Meeting Law. � � a�� ;; �;; - : < � �;' ��; In its decision,the Supreme�ourt determined that good faith �'`�=,��.��Q��te�,u�itc�r�strongly urged Hennepin,�. is not�a defense to a charge that the O�en Meeting�Law has been � �_�N;_ � �y j�a�en�t�cia�2racE sQ'tliaLits terms conform with aIIJ�;� violated. In considering the appropriate sanetion,the Court noted � ��'�eab�state�I�vus. �`,F�Q�� so�cecommended�tha�t�i�_' that the law provides for a$100 civil penalty for each violation.�In � �y s�� e�mg'i�n �from tTie:salai� cap fram tTi�� addition, a public official's office must be declazed vacant if it is °��'4;� ��ge�a�me�t�o� Em�toyee �ReIatr.oFis�� proven that three intentional, separate,and unrelated�viQlations of �g��,��99�,�ennepin County petitioned ffie, the law occurred after� the offending o�cial had a reasonable � �,:f€��st's�Cf�att �etripEiQn.�"Qn August'I7, �<1ER;� amount of time to learn the responsibilities of the office. Three � ��e�ct�un��s��►es��stating ttiat the salary lim�t�ssue� council members were assessed a civil penalry and were removed � ��a�, . ' � b� from office. A fourth council member was assessed a civil penalty � � :� _ � � �- � �' � �"`'�� but was not removed from�off'ice because two�of his violations � ,�� sj��"��p�,(q'�� $pj( gClt� H/at@Y ,� : took place before he had a reasonable amount of time to learn�the str��s�ereta� �Macged with fetony �� responsibilities of the office. � � ��i��;�o��So��y�� One aspect of the case will be affected�by �1994 legislative �5��y��'��y��was charged with tlixee:„ changes to the Open Meeting Law. In the Claude case, the II�r�onnts a��Ite�t i�t Stb�e��ounty I}istriEt CourC�_ �unc��; Supreme Court determined that��a public official could be removed -IIg`apprc;,c�nat�y;�,�were discovered missin�fmu�� Auditor's Opinion -- please turn to page 8 �}2 antL 1993�istric�tre�s�ies: An'investigation conducted.` 'iTie State`Auditor`'s,Elffice�aan�that some of the incvmi�g ' , � � � , � ��ipts,hact been cas6e�ar splic deposited. A ptea hearfng dati�� - .. � . :;i�-expected to take place within the next few months. a . � „ � � � � ;�, , � ��,. � � ;.� ; , � y . ,.--�� .y otentia! confticts of interest in Rosemounf - - � �" '�; During a re�iew af potentiai confiicts of interestinvolving ' - e�Rosemonnt mayor, a question was'raised whether thea. , �� s` r��F �; ;mayor,who owns a prominent reai estate agency in the commu=, � w.n�ty,�inay aet on eit}��business �invoiving� land listed by the � � �� . _ � w� �mayor s agency. This offiee determined that it is not sufficient v� � �r� � � ��... �tfiat the mayor abstain from voting. Either the contract cannot . � �5e exeeuted or the mayor must relinquisn o�ce. To date,no �� .�� ` ` c�. .- `' �achon has been warranted. A letter from this office to the mayor �� r�� j � ' �-'vaas meant to be informational not punitive. � �„ . E� ��. -- . n��.- � � � � �.� . t � � ..�� 4Y:,_ . .� ";. ��.u� �'.` ��, -� .. page two Summer 1994 State Auditor`s Report e y i.« _ , City of Rosemount Executive Summary for Action City Couacil Meetiag Date: October 4, 1994 Agenda Item: Pawn Shop Ordinance Ageada Section: NEW BUSINESS Prepared By: Ron Wasmund Agenda Noe - _ Community Development "E� � Director � C. Attachments: Broker Fee Survey; Draft Approved By: Ordinance. Studies done by other cities with pawn shops and second-hand good stores have shown that by nature these establishments potentially provide the ability to receive and transfer stolen property. By establishing rules, regulations, and licensing criteria through ordinance adoption monitoring of a pawnbroker' s operational procedures can be accomplished. Specific reporting requirements and documentation policies enable the local police department to recover stolen property more regularly. The ordinance also serves to protect the health, ` safety, and welfare of Rosemount residents. The need for this type of ordinance was identified when a local shop was rumored to be opening. The shop did actually open within the last two weeks. The draft ordinance attached, if adopted as written, will apply retroactively and be enforceable with businesses in existence at the time of adoption. For this reason a copy of the draft has been provided to the local broker/operator. They are currently in general eonformanee so there were no real issues raised. Two questions they did have were: 1) Do they have to make payment -for purchases with a check or can it be, cash? and 2) What will the license fee be? The reasons to make payment by check is that an actual name is associated with the goods eliminating anonymity and it provides one more step (check cashing) to the process. The fee is determinable based upon a metro-wide survey. The fee' is not established to prevent or prohibit someone from operating `a brokerage business. It is set to reasonably cover expenses the police department will have monitoring and reviewing the business operation. There are four cities that all have the highest fee of $12, 000 annually. The lowest' fee seems to be Blaine at $12 per year. The average of 22 cities is $4, 592 . Staff is suggesting a license fee of $5, 000 annually. We will review the fee for sufficiency after two years of operation_ This ordinance draft has been patterned after others which have been in effect and successful in other cities. Staff feels it is reasonable and effective. We recommend ado tion. Recommended Aetion: A MOTION to adopt ORDINANCE NO.XVI.29 AN ORDINANCE REGULATING PAWN SHOPS AND PAWN BROKERS. City Council Action: ioro�4.002 . . , �I� . F '•. � • - �� _ � � N BROKER/PRECIOUS : PAW .t , METAL ; IES 0-2,500 Prior Lake NONE , Aobbinsdale 7500.00 . Savage BUS.LIC.58.00 ng Park �� NONE Watertown NONE Stiiiwater NONE codland N/A West St. Paul 150.00 S 2,500-10,400 CTTIES OVER 20,000 '�rden Hiils �.00 Apple Vailey BROKER Bayport 8,404;META�160/50 TRANSACTION;420+50 Circle Pines `Dayton 12000<YR+t580 Blaine 12/YR. INVEST. Bloomington 1545.00 °� B000kiyn CeMer 12,000+1503 =peephaven NONE 1NVEST. :Faicon Heights WA B�lyn Park PAWN 1000+500 independence WA INVEST ;lordan NONE Bumsviile io��L•�c�a' Lauderdale NA Mahtomedi NONE Coon Rapids NONE <Mendota Heights N/A Cottage Grove NONE Mound N/q Crystal 72t.00 � Newport WA �9a� 8000+350INV. ' Orono NONE Eden Prairie NONE ; Osseo NONE Edina NONE • Rosemourrt NONE Fridley 8.000 a: Shorewood Golden Valley 12,000;400.00 - Spring Lake Park , � St Anthony NONE Maple Grove - St. Francis 500.00 Maplewood 78.00 ` St. Paul Park Minneapolis 369/PAWN;309/ - Wayzata M/A PMD Minnetonka NONE ` CTTIES 10,000-20,000 New Brighton WA • New Hope wA ;� Moka 1000.00 Richfield 2N HAND 300/YR Roseville NONE Champlin LtCENSE ghp��eW N/A 12,OOO:APPL.250 �h St. Paut 100.00 , Chanhassen WA St. Louis Park 250 NO MORE Columbia Heights 300 NEW;200 THAN 3 RENEWAL White Bear Lake Hastings N/A Woodbury N/A Hopkins 350Q.Od �' Mounds View WA ;. North St. Paul NONE ;: Oakdale 0 95 . � � _.. q . , , . • ' . . .. .. , ' . _. . .. �t/� . . . � . . . . . . CTTY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA ORDINANCE NO. REGULATION OF PAD�TN SHOPS AND PAWN BRORERS THE CITY COUNCIL OF THE CITY OF ROSEMOUNT ORDAINS: Sec. 1-1-1: P'tTRPOSE The City Council finds that pawnbrokers gotentially provide an opportunity for the commission of crimes and their concealment because businesses have the ability to receive and transfer stolen property easily and quickly. The City Council also finds that consumer protection regulation is warranted in tra-n.sactions involving pawnbrokers. The purpose of this Chapter is therefore to prevent pawnbroking businesses from being used as facilities - for 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. Sec. 1-1-2: DEFINITIONS ` The following words and terms when used in this Chapter shall have the following meanings unless the context clearly indicates otherwise: ISSUING AUTHOR�TY: The City of Rosemount MINOR: Any natural person under the age of eighteen (18) years . PAWNBROKER: A person who loans money in deposit or pledge of personal property or other valuable thing; who deals in the purchasing of personal property or other valuable thing on condition of selling that sa.me back again at a - stipulated price; or who loans money secured by chattel mortgage or on personal property, taking possession of the property or any part thereof so mortgaged. To the extent that a pawnbroker business includes buying personal property previously used, �ented, or leased; the provisions of this Chapter shall be applicable. Any bank, savings and loan association, or credit union shall not be deemed a pawnbroker for purposes of this Chapter. PERSON: . Any one or more natural persons; a partnership, including a limited partnership; a corporation, including a foreign, domestic, � � . . � � � �� r _ . � ' ti or nonprofit corporation; a trust; a political subdivision of the state; or any other business organization. Sec 1-1-3 : LICENSE RSQIIIRED: No person shall exercise, carry-on, or be engaged in the trade or business of pawnbroker within the City unless such person is currently licensed under this Chapter. Persons engaged in the business of pawnbroker on the effective date of this Chapter must receive a license within sixty (60) days or cease doing business. Sec 1-1-4: APPLICATION CONTENT: In addition to any information that may be required by the County pursuant to Minn. Stat. 471.924, every applicant for a license under this Chapter shall be made on a form supplied by the City of Rosemount and shall contain the following information: (1) If the applicant is a natural person: � (a) the name, place, and date of birth, street � resident address, and telephone number of the applicant; (b) whether the applicant is a citizen of the United States or a 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 used and information concerning dates and places where 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 Minn. Stat. 333 . 01; (e) the street address at which the applicant has lived during the preceding five (S) 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 shall furnish information as to the time, place, r � and offense for which convictions were had; (h) the physical description of the applicant' (i) of the applicant is marriedx i) the name, place, and date of birth, and street address of the applicant' s current spouse; ii) the type, name, and location of every business or occupation in which the � applicant' s current spouse has been engaged during the preceding five (5) . � years; : iii) the names and addresses of the employers or partners of the .applicant' s current - spouse f or the preceding f ive (5) years; iv) whether the applicant' s current spause has even been convicted of any felony, crime, or violation of any ordinance other than a traffic ordinance. If so, the applicant shall furnish information � as to the time, place, and offense for _ which convictions were had. (2) If the applicant is a partnership: (a) the namets) and address (es) of all general and limited partners and all information concerning each general partner required in subpart (1) of this Section; � (b) the name{s) of managing partner(s) and the interest of each partner in the pawnbroker 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 Minn. Stat. 333.01, a certified copy of such certificate shall be attached to the applieation. (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 � . q . . .� . Agreement, and By-Laws shall be attached to the application. If the applicant is a foreign corporation, a Certificate of Authority as required by Minn. Stat. 303 .06, shall be attached; (c) a list of all persons who control or own an interest in excess of five percent (5%) in such organization or business form or who are officers of the corporation or business form and all information concerning said persons required in subpart (1) above. (4) For all applicants: (a) whether the applicant holds a current pawnbroker license from any other governmental unit and whether the applicant is licensed under Minn. Stat. 471.924 . (b) whether the applicant has previously been denied a pawnbroker license from any other governmental unit; (c) the names, street resident addresses, and business ;� � addresses of three (3) residents of Hennepin, Ramsey, Anoka, Carver, Dakota, Washington, Scott, Goodhue, or Rice County, who are of good moral character and who are not related to the applicant or not holding any ownership in the premises or business, who may be referred to as to the applicant' s and or manager' s character; (d) the location of the business premises; (e) the legal description of the premises to be licensed; (f) whether all real estate and personal property t�es 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) whether the application is for premises either planned or under construction of undergoing substantial alteration, the application shall be accompanied by a set of preliminary plans showing the design of the proposed premises to be licensed. If the plans or design are in file with - the City of Rosemount Building/Inspections Department, no plans need be submitted with the issuing authority; (h) such other information as the City Council or � . . . . . . . . . .. r. ... issuing authority ma.y require. Sec. 1-1-5s APPLICATION FXECUTION All applications for a license under this Chapter shall be signed and sworn to. If the application is that of a, natural person, it shall be signed and sworn to by such person; if that � of a co oration, b an officer thereof; if that of a ', � Y partnership, by one of the general partners; and if that of an unineorporated association, by the manager or managing officer thereof. �Any falsification on a license application shall result in the denial of a license. Sec 1-1-6: APPLICATION VFRIFICATION Al1 applicants shall be referred to the Police Department for verification and investigation of the facts set forth in the application. The Police Department shall make a written report and recommendation to the City Council as to issuance or non- issuance of the license. The City Council may order and conduct such additional investigation as it deems necessary. �, Sec. 1-1-7 : APPLICATION CONSIDER.ATION � A. The City Council shall conduct a hearing on the license application within a reasonable period following receipt of the Police Departments report and recommendation regarding the application. At least ten (10> days in advance of the City Council hearing on an application, the issuing authority shall cause notice of the hearing to be published in the official newspaper of the City, setting forth the day, time, and place of the hearing; the name of the applicant; the premises where the business is to be conducted; and the type of license which is sought. At the hearing, opportunity shall be given to any person to be heard for or against the granting of the license. Additional hearings on the application may be held if the City Council deems additional hearings necessary. After the hearing or hearings on the application, the City Council, ma:y, in its discretion, grant or deny the application. B. If an application is granted for a location where a building i's under construction or not ready for occupancy, the license shall not be delivered to the licensee until a certificate of occupancy has been issued for the licensed premises . Sec. 1-1-8: RENEWAL APPLICATION A. All licenses issued under this Chapter shall be effective for one year from the date of approval by the City Council . An application for the renewal of an existing license shall be made prior to the expiration date of the license' and �� . . .� � . � � . � � .. . � . r � . � shall be made in such. form as the issuing authority requires. If, in the judgement of the City Council, good and sufficient cause is shown by the applicant for the applicant's failure to ° submit a renewal application before the expiration of the existing license, the City Council may, if the other proviSions of this Section are complied with, grant the renewal application. B. A license under this section ma.y not be renewed: (1) if the City Council determines that the licensee has failed to comply with the provisions of this Chapter in preceding license years; (2) if the licensee or, if the licensee does not ma.nage to establishment, the manager of the licensed premises is not a resident of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington, Goodhue, or Rice counties on the date of renewal takes effect; (3) if in the case of a partnership, the managing partner or other person who manages the establishment is not a resident of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington, � � Goodhue, or Rice counties on the date of renewal `� takes effect; (4) if in the case of a corporation, or other organization, the ma.nager, a proprietor, or agent in charge of the establishment is not a resident of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington, Goodhue, or Rice counties on the date the renewal takes effect; (5) the time for establishing residence in the above named counties may for good cause be extended by the City Council . Sec. 1-1-9 : FEES A. A�plication Fee: (1) The application fee shall be set by resolution of , the City Council . I (2? The license application fee shall be paid in full before the application for a license shall be accepted. Upon rejection of any application for a license or upon withdrawal of any application before City Council approval, the license fee shall be refunded in full to the applicant except where rejection is for a willful misstatement in the license application. � . � . . � (3) When the license is for premises where the building is not ready for occupancy, the time fixed for computation of the license fee for the initial license period shall be ninety (90) days after approval of the license by the City Council or upon the date the buzlding is ready for occupancy, whichever is sooner. (4) When a new license application is submitted as a result of incorporation by an existing licensee ' and the ownership, control, and interest in the license are unchanged, no additional fee sha1T be required. B. Investig,ation Fee: An applicant for any license under the Chapter shall pay the City of Rosemount at the time an original application is submitted, a nonrefundable fee at a rate set by City Council resolution 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. C. License Fee• (1) The license fee shall be paid annually, to be determined fram the date of issuance of the � license. (2) The annual license fee shall be set by City Council resolution. The application' fee shall be credited to the first annual fee, ` if the ' application is approved. Sec. 1-1-10: PERSONS AND LOCATIONS INELIGIBLE FOR A LICENSE. A. No license under this Chapter shall be issued to an applicant who is a natural person if such applicant; (1) Is a minor at the time the application is filed; ' (2) $as been convicted of any crime directly related to the occupation licensed as prescribed by Minn. Stat. 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 Minn. Stat. 34.-03, Subd.3,; (3) Is not of good moral character or repute; or (4) Holds an intoxicating liquor license within the City of Rosemount. B. No license under this Chapter shall be issued to an applicant that is a partnership if such applicant has any general partner or managing partner; , � (1) Who is a minor at the time that application is f iled; (2) Who has been convicted of any crime directly related to the occupation licensed as prescribed by Minn. Stat. 364.03, Subd. 2, and who has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by Minn. Stat. 364.03 , Subd. 3; (3? Who is not of good moral character or repute; or (4) Who holds an intoxicating liquor license within the City of Rosemount. C. No license under this Chapter shall be issued to an applicant that is a corporation or other organization if such applicant has any manager, proprietor, or agent in charge of the business to be licensed: (1) Who is a minor at the time the application is filed; � (2) Who has been convicted of any crime directly related to the occupation licensed as prescribed by Minn. Stat. 364. 03, Subd. 2, and who has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a pawnbroker as prescribed by Minn. Stat. 364 .03 , Subd. 3; (3) Who is not of good moral character or repute,• or (4) Who holds an intoxicating liquor license within the City of Rosemount. Sec 1-1-i1: GENERAL LICENSE RESTRICTIONS A. Recordkeeping. At the time of a receipt, sale, or redemption of an item of property, the pawnbroker shall immediately record, using the English language, in an indelible ink, the following information: ti) An accurate description of the item of property including, but not limited to, an�r trademark, identification number, serial number, model number, brand name, or other identifying ma.rk of such item; (2) The date, time and place the item of property was received by the pawnbroker; (3) The amount of money loaned upon or pledged ' , r therefor; (4) The full name, residence address, residence telephone number, date of birth, and reasonably accurate description of person from whom the item of property was received, including, sex, height, race, color of eyes, and color of hair; (5) The identification number from one of the following forms of identification of the person from whom the item was received; , (a1 A valid Minnesota driver' s license; (b) A valid Minnesota identification `card; (c) A valid photo identification issued by the State of residency of the person from whom the item was received and one other form of identification; (6) The signature of the person pledging or selling the item; a (7) The pawnbroker will also take a color photograph of frontal view of this persan. cross-referenced to the properties. The Rosemount Police Department ma.y approve- a video in lieu of color photograph if the video produces the same quality picture; and (S) A color photvgraph of any precious metals `involved in a transaction. The Rosemount Police Department may approve a video in lieu of a color photograph if the video produces the same quality picture. B. Ins,.pection of Records . The pawnbroker shall provide to the Rosemount Folice Department the information required in subpart (a) of this Section by leaving complete and correct copy of records with the Police Department every business day, before the hour of 12 :00 noon. When possible, records left with the Police Department should be contained on computer disk for retrieval of information by the_ Police. Department' s computer system. The information required in subpart (A) of this Section shall be retained by the pawrsbroker for at least four t4) years . The license must display a sign, in a conspicuous place in the premises and of a sufficient size, which informs all patrons that all transactions are reported to the Rosemount Police Department. C. Police Order to Hold Propertv. Whenever the Rosemount Police Department, upon reasonable suspicion that an item received by the pawnbroker may have been stolen, notifies the : pawn broker not to sell an item, the item shall not be sold or removed from the licensed premises until authorized to be . � . released by the Police Department or a period of thirty (30) days, whichever is the lesser. Oral notification to hold property shall be confirmed in writing by the Police Department. D. Receipt. The pawnbroker shall provide a receipt to the seller or pledger of any item of property received, which shall include: (1) The name, address, and telephone number of the pawnbroker business; (2) The date on which the item was received by the pawnbroker; (3) A description of the item received and amount paid to the pledger or seller in exchange for the item pawned or sold; (4) The signature of the pawnbroker or agent; (5) The last regular business day by which the item must be redeemed by the pledger without risk that the item will be sold and the amount necessary to redeem the pawned item on that date. a `" (6) The annual rate of interest charged on pawned items received; (7) The name and address of the seller or pledger. E. Hours of Operation. No pawnbroker shall keep the pawnbroker business open for the transaction of business on any day of the week before S : OOa.m. or after 9 :00 p.m. F. Minors. The pawnbroker shall not purchase or receive personal property of any nature or pledge from any minor. G. Inspection of Items. The pawnbroker shall at all times ` during the term of the license, allow the Rosemount Police . Department and other law enforcement authorities associated with the Rosemount Police Department to enter the premises where the pawnbroker business is located during normal business hours except in an emergency, for the purpose of inspecting such premises and inspecting the items, ware, and merehandise and records therein for the purpose of locating items suspected or alleged to have been stolen or otherwise improperly disposed of. H. License Display. A license issued under this Chapter , must be posted in a conspicuous place in the premises for which it is used. The license issued is only effective for the compact and contiguous space specified in the approved lieense application. I. Maintenance Order. A license under this Chapter shall �� r . .... q . t • .. . J � � � �� • � � : . , . . be responsible for the conduct of the business being operated and shall maintain conditions of order. J. Gamblinq. No license under this Chapter ma�r keep, possess, or operate, or permit the keeping, possession, or operation on the licensed premises of dice, slot machines, roulette wheels, punchboards, blackjack tables, or pinball machines which return coins or slugs, chips, or tokens of- any : kind, which are redeemable in merchandise or cash. No gambling equipment authorized under Minn. Stat. Chapter 349, may be kept or operated and no raffles may be conducted on the licensed premises and/or adjoining rooms. ` The purchase of lottery tickets may take plaee in the licensed premises as authorized by the director of the lottery gursuant to Minn. Stat. Chapter 349A. R. Prohibited Goods. No license under this Chapter shall accept any item of property which contains altered or obli:terated serial numbers of "Operation Identification" number or any item of property whose serial number has been removed. L. �roper ldentification. A licensee under this Chapter shall not accept items of property unless the seZler or pledger provides one of the following forms of identification: � i) a valid drivers license; ii) a Minnesota identification card; or iii) a photo identification issued by the state -of residency of the person from whom the item was received; iv) military identification; or v) passports. No other forms of identification shall be accepted. M. Redem�.tion Period. Any person pledging, pawning or depositing an article for security shall have a minimum of thirty (30) days from the date when the loan or pledge becomes due an payable to redeem the article before the article becomes forfeitable. The date by which an item .of property that has been pawned must be redeemed by the pledger without risk that the item will be sold must be a da�r on which the pawnbroker is open for regular business. N. Payment by Check. When a pawnbroker accepts an item for purchase or as security for a loan, payment for any article deposited, left, pledged or pawned shall be made only by a check, draft, or other non-negotiable instrument or order of withdrawal which is drawn against funds held by a financial institution. This policy must be posted in a conspicuous place in the premises. . . . � � . � � � � . . �. . � � � . . r � �� . . r h ' _" . ♦ . � . N 0. Restrictions on Sale. A pawnbroker shall suspend for one (1) year, any business transaction with any person who has sold and/or forfeited on six (6) previous occasions articles for which the person received $25 .00 or more per transaction within a single six (6) month period. P. Premises . All property deposited, left, pledged, pawned, or held for sale must be stored in an enclosed facility and ma.y not be stored outside of the premises. The City may, however, permit the licensee to designate one (1) off premises locked and secured facility in which the licensee ma.y store only cars, boats, and other motorized vehicle. The licensee shall permit immediate inspection of the facility at any time during business hours by the City. All provisions in this section regarding record keeping and reporting shall apply to oversized items . All property shall be stored in compliance with zoning and/or fire regulations and in an orderly manner subject to inspection by the Fire Department . The premises shall also be equipped with an operational security alarm. Sec. 1-1-12 : RESTRICTIONS REGARDING LICENSE TR.ANSFER Each license under this Chapter shall be issued to the applicant only and shall not be transferable to any other person. No license shall loan, sell, give, or assign a license to another `' person. Sea 1-10-13 : SIISPENSION OR REVOCATION OF LICENSE. A. The City Council ma.y suspend or revoke a license issued under this Chapter upon a finding of a violation of: (1) any of the provisions of this Chapter; (2} any state statute regulating pawnbrokers; or ` (3) any state or local law relating to moral character and repute. B. A revocation or suspension by the City Council shall be preceded by written notice to the licensee and a public hearing. The written notice shall give at least eight (8) days' notice of the time and place of the hearing and shall state the nature of the charges against the pawnbroker. The notice may be served upon the pawnbroker personally or by United States mail addressed to the most recent address in license application. Sec. i-1-14: PROBIBITED ACTS. No pawnbroker licensed under this Chapter shall : {1) Lend money on a pledge at a rate of interest above that allowed by law; � � . . � � �. . r� �� `w x a � �� . _ .. . .. (2) Rnowingly possess stolen goods; (3) Sell pledged goods before the time to redeem has expired; (4) Refuse to disclose to the City, after having sold pledged goods, the name of the purchaser or the price for which the item sold; or (5) Make a loan on a pledge to a minor. Sectioa 2. Effective Date. This ordinance shall be effective immediately upon its passage and publication. ADOPTED this day of , 1994, by the City Council of the City of Rosemount. ; CITY OF ROSEMOUNT BY• a .E.B. McMenomy, Ma.yor ATTEST City Clerk �