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HomeMy WebLinkAbout22 ORDINANCE 1409 - SECONDHAND DEALER PERMITS--T- Agenda Item 22 ~~ ~ Reviewed: `------- AGENDA ~,EPORT City Manager ~~ ~~~ Finance Director MEETING DATE: DECEMBER 6, 2011 TO: WILLIAM A. HUSTON, INTERIM CITY MANAGER FROM: PAMELA ARENDS-KING, DIRECTOR OF FINANCE SUBJECT: ORDINANCE NO. 1409, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING SECTION 3141 AND ADDING SECTION 3526 OF THE TUSTIN CITY CODE REGARDING SECONDHAND DEALER PERMITS SUMMARY: Ordinance No. 1409 would: 1. Amend Part 2 of Chapter 5 of Article 3 of the Tustin City Code to provide City officials discretion to grant whole or partial waivers of the requirement that names, addresses, and fingerprints of all employees of a licensed secondhand dealer be provided in conjunction with a secondhand dealer permit if certain specified conditions are met. 2. Amend the definition of "Director" in Article 3 of the Tustin City Code to refer to the Director of the Finance Department, rather than the °Community Development Department. RECOMMENDATION: That the City Council introduce and have the first reading of Ordinance No. 1409; and, set the second reading at the Council's next scheduled meeting. FISCAL IMPACT: None. BACKGROUND: The application requirements for a Second Hand Dealer Permit in Section 3526 of Chapter 5 of Article 3 states "In addition to all other information requested on the application form, the applicant shall file with the Director a list of the names, addresses and fingerprints of the employees at the location proposed to be licensed." Staff was approached by a large electronics retailer to obtain a Second Hand Dealer Permit for a "Buy Back" program that they were instituting. Staff found that due to the transiency and large number of employees, our current ordinance was too restrictive far large businesses wishing to institute such a program for its customers. Adding Section 3526 allows the Director of Finance or designee the right to waive the ORDINANCE 1409 AMENDING SECTION 3141 AND ADDING SECTION 3526 OF THE TUSTIN CITY CODE REGARDING SECONDHAND DEALER PERMITS DECEMBER 6, 2011 Page 2 requirement of employees fingerprints and background investigation provided the following conditions are met: (1) The buying, selling, trading, or taking in of secondhand goods is not the primary business activity of the business establishment; (2) No sales of secondhand goods takes place at the business establishment; (3)The owner and/or operator of the business establishment has obtained a secondhand dealer permit in accordance with the Municipal Code; and (4} Due to the limited nature of transactions involving secondhand goods occurring at the business establishment and/or the secondhand property there is a reduced risk far the business establishment being utilized as an outlet for trafficking in stolen property. Amending Section 3141 clarifies the definition of "Director" as Director of the Finance Department, rather than the Community Development Department since Finance is now responsible for processing of all business licenses and permits The City Attorney has reviewed the content and form of draft Ordinance No. 1409. Pamela Arends-King Finance Director Attachments: A. Draft Ordinance No. 1409 ORDINANCE NO. 1409 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ADDING TUSTIN CITY CODE SECTION 3526 RELATING TO A CONDITIONAL EXEMPTION TO THE REQUIREMENT TO PROVIDE CERTAIN EMPLOYEE INFORMATION IN CONJUNCTION WITH A SECONDHAND DEALER PERMIT. City Attorney Summary This ordinance amends the definition of "Director" in Article 3 of the Tustin City Code to refer to the Director of the Finance Department, rather than the Community Development Department. This ordinance also amends Part 2 of Chapter 5 of Article 3 of the Tustin City Code to provide City officials with the discretion to grant whole or partial waivers of the requirement that names, addresses, and fingerprints of all employees of a licensed secondhand dealer be provided in conjunction with a secondhand dealer permit if certain specified conditions are met. The City Council of the City of Tustin, California, does ordain as follows: SECTION 1: Section 3141 of Part 4 of Chapter 1 of Article 3 of the Tustin City Code is hereby amended to revise and replace the definition of "Director" to read as follows: "Director. The Director of the Finance Department or designee." SECTION 2: Section 3526 of Part 2 of Chapter 5 of Article 3 is hereby added to the Tustin City Code to read as follows: SECTION 3526 EMPLOYEE INFORMATION -CONDITIONAL EXEMPTION The requirements of Sections 3523 and 3525(a) that names, addresses, and fingerprints of all employees of a licensed secondhand dealer be provided may be waived, in whole or in part, by the Director, in his or her discretion, where the applicant / permittee establishes to the reasonable satisfaction of the Director and Chief of Police that all of the following conditions are met: (1) The buying, selling, trading, or taking in of secondhand goods is not the primary business activity of the business establishment; (2) No sales of secondhand goods take place at the business establishment; (3) The owner and/or operator of the business establishment has obtained a secondhand dealer permit in accordance with this Chapter; and (4) Due to the limited nature of transactions involving secondhand goods occurring at the business establishment and/or the secondhand property handling and reporting procedures employed by the business establishment, there is a reduced risk for the business establishment being utilized as an outlet for the trafficking in stolen property. Notwithstanding whether a waiver is wholly or partially granted in accordance with this Section, the secondhand dealer permittee and each employee thereof shall comply with all other requirements of this Part. SECTION 3. This Ordinance shall take effect on the 31St day after it is enacted. SECTION 4. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Tustin hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. PASSED, APPROVED, AND ADOPTED this 6th day of December 2011. ATTEST: PAMELA STOKER, CITY CLERK APPROVED AS TO FORM: JERRY AMANTE, MAYOR DAVID E. KENDIG, CITY ATTORNEY ORDINANCE CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) PAMELA STOKER, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Gouncil of the City of Tustin is five; that the above and foregoing Ordinance 1409 was passed and adopted at a regular meeting of the City Council held on the 6th day of December, 2011, by the following vote: COUNCILPERSONS AYES: COUNCILPERSONS NOES: COUNCILPERSONS ABSTAINED: COUNCILPERSONS ABSENT: PAMELA STOKER, CITY CLERK Published: