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The other 10 percent of its acquired appliances are from pick -ups when the business delivers a <br />new appliance to a customer. The business does not consign any appliances. The business fixes <br />or refurbishes the appliances it can, and strips the ones that cannot be fixed for parts and <br />recycling. The business also services appliances. Because Quality Used Appliances buys <br />appliances to sell, it is technically a secondhand goods dealer as defined by City Code. The fee <br />for a Secondhand Goods Dealer's license is $2,000 per year. <br />One of the factors for the license fee being set so high is that a secondhand goods store is very <br />close in nature to a pawnshop. Secondhand goods dealers and pawnshops potentially provide an <br />opportunity for the commission of crimes and their concealment because such businesses have <br />the ability to receive and transfer stolen property easily and quickly. In order to combat this, a <br />secondhand good's dealer must record and report its transactions to the Police Department, just <br />like a pawnshop. However, staff believes it fair to say that stealing and peddling appliances <br />would be a rare occurrence. Appliance transactions are not required to be recorded and reported <br />to the Police. Therefore, staff feels that a $2,000 fee for a license for the sale of secondhand <br />appliances is too high. Staff has invited Mr. Berry to come to this work session to provide his <br />input on the license fee issue. <br />Staff Recommendation: <br />Staff is recommending Council direct an ordinance be drafted for Council consideration <br />amending City Code to fiirther define secondhand goods dealers or to delete the secondhand <br />goods section and combine it with the pawnbrokers section. Staff is also recommending that <br />Council review the fee set for the Secondhand Goods Dealer's license and consider a much <br />lower license fee dependent upon the type of goods the dealer collects to sell. <br />Action Statement: <br />Based upon discussion. <br />Reviewed by: <br />City Clerk <br />City Attorney <br />Police Chief <br />Environmental Coordinat <br />City Administrator: <br />CCWS: 10/12/10 <br />