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HomeMy WebLinkAboutCC RESO 2011-197RESOLUTION NO. 2011 —197 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING AND AUTHORIZING ISSUANCE OF A WRITTEN REPORT PERTAINING TO A MORATORIUM ORDINANCE PROHIBITING PROHIBITING NEW PAWNBROKER, SECONDHAND, AND PRECIOUS METAL DEALING AND ESTABLISHMENTS IN NATIONAL CITY WHEREAS, at the City Council meeting of August 2, 2011, the Council enacted Ordinance No. 2011-2364, "An Interim Ordinance of the City Council of the City of National City Adopted Pursuant to Government Code Section 65858 as an Urgency Measure to Take Effect Immediately, Enacting a Moratorium Prohibiting New Pawnbrokers, Secondhand and Precious Metal Dealer Establishments in National City"; and WHEREAS, the moratorium enacted pursuant to Ordinance No. 2011-2364 will expire on September 16, 2011, subject to extension by action of the City Council; and WHEREAS, Section 65858(d) of the Government Code provides that 10 days prior to the expiration of the interim ordinance or any extension, the legislative body shall issue a written report describing the measures taken to alleviate the condition which led to the adoption of the ordinance; and WHEREAS, a Report satisfying the requirements of Government Code Section 65858(d) is attached hereto as Exhibit "A" and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby finds and determines that the Report attached hereto as Exhibit "A" satisfies the requirements of Government Code Section 65858(d), and hereby approves and authorizes issuance of said Report. PASSED and ADOPTED this 6th day of September 2011. on Md'rrison, or ATTEST: zeleirii R. Dalla Mic, ity Clerk A''' ROVED AS TO FORM: Ca G. Silv City Attorney REPORT (Government Code Section 65858 (d)) Background The City has recently adopted a new General Plan, a component of which allows for land usage that includes pawnbrokers, secondhand and precious metal dealers and establishments within the City. Since the original pawnshop establishments were approved in the 1980's, the City has seen a 200% increase in such establishments. Various existing businesses have also expanded to include dealings in secondhand goods in recent years. Moreover, due to the increasing value of gold, the market has encountered a proliferation of gold buying establishments. Recently, unlicensed and unpermitted gold and other secondhand dealer establishments and vendors have erupted in record numbers. The National City Police Department has been concerned with the increase in crime related to the existence of such establishments, which includes the sale and purchase of stolen goods, and the added burden of being tasked with tracking the reporting requirements for such establishments pursuant to the regulations of the California Department of Justice, particularly in light of the decrease in law enforcement resources. Existing land use controls may not adequately address the potential adverse effects of newly proposed pawnbrokers, secondhand and precious metal establishments in the community. There is a potential threat to the public health, safety and welfare were the City to permit new establishments without adequate land use controls. At the regular City Council meeting of August 2, 2011, the City Council enacted, as an urgency ordinance to take effect immediately, Ordinance No. 2011-2364, imposing for a period of 45 days a moratorium on the locating of, development, or approval of new pawnshops, secondhand dealers, and precious metal dealing and establishments in the City. The moratorium imposed by Ordinance No. 2011-2364 will expire on September 16, 2011 unless extended by action of the City Council. The Government Code provides that after a public hearing, the 45 day moratorium may be extended by 10 months and 15 days. This public hearing will satisfy the requirements of the Government Code. During this 10 months and 15 days, staff will study and consider the current environment and the effects of existing and new pawnbrokers, secondhand and precious metal establishments, such as gathering information as to the status of such establishments and their effect upon other communities. Recent Developments The Police Department reports that Best Buy is adding a small store in Plaza Bonita called a "Trade -In" store. People can turn in used cell phones, pda's, mp3 players, video game consoles and games, and other electronics and receive a Best Buy gift card in return. Best Buy has voluntarily promised to comply with Federal Pawn requirements, which will require them to verify and document the identification of the consumer. That information with serial number will be input into Leads on Line for Law Enforcement access. They will sell all the trade-in items on BestBuy.com only. No physical sales will transpire. If the item traded in fails to sell on-line, they will destroy it in an environmentally sound process. No gift card will be redeemable for cash, and no items will be taken on consignment. 1 EXHIBIT "A" The Police Department has determined that there were no gold buying events held at the Clarion Hotel or Best Western motel during the past six months, nor are any events booked in the next few months. Planning Commission Review It is anticipated that this topic will be placed on an upcoming Planning Commission agenda for the Commission to consider the need for further regulation in this area. The Commission's recommendations will then be presented to the City Council. 2 Passed and adopted by the Council of the City of National City, California, on September 6, 2011 by the following vote, to -wit: Ayes: Councilmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California City National City, California CI rk of the City oi' By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2011-197 of the City of National City, California, passed and adopted by the Council of said City on September 6, 2011. City Clerk of the City of National City, California By: Deputy