HomeMy WebLinkAboutCC RESO 2012-148RESOLUTION NO. 2012 — 148
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
NEW PAWNBROKER, SECONDHAND, AND PRECIOUS METAL
DEALING AND ESTABLISHMENTS IN NATIONAL CITY
WHEREAS, at the City Council meeting of September 6, 2011, the Council
enacted Ordinance No. 2011-2366, "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, Extending for 10 months and 15 days a Moratorium Prohibiting New
Pawnbrokers, Secondhand and Precious Metal Dealer Establishments in National City"; and
WHEREAS, the moratorium enacted pursuant to Ordinance No. 2011-2366 will
expire on July 21, 2012, 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 3rd day of July, 2012.
ATTEST:
A
Michael R. Dalla ty Clerk
A'PROVED ;S TOQ RM:
i11)i?11,
u•ia aci, a si -
y Attor ey
Cit
on Morrison, Mayor
REPORT
(Government Code Section 65858(d))
Since the original pawnshop establishments were approved in the 1980's, the City has
seen a 200% increase in such establishments. Of the nine pawn, gold buying and secondhand
businesses licensed to do business in National City, seven (7) received their Conditional Use
Permits (CUP) between 2008 and 2011. 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. Businesses who do not have
pawn, secondhand or gold buying as their primary business are engaging in gold buying as a part
of or incidental to their primary business. The number and extent of these businesses engaging in
gold buying as an incidental or accessory part of their business is not known because it is not the
primary business which is identified on the business license.
In addition, electronics businesses have started to engage in secondhand dealing in which
they acquire used electronics from sellers. Some businesses pay cash, while others use a "store
credit" model. In some instances, companies have used a kiosk model in which electronics are
deposited and the depositor is paid via check after the deposited electronic item is processed by
the business. These types of secondhand businesses are more recent and are not fully
contemplated by the most recent Land Use Code provisions.
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.
While the City has adopted an updated Land Use Code (February 2012) since the enactment of
the moratorium in order to better address pawn shops, gold buying and secondhand dealing
businesses, the current issues being seen by the Police Department are not adequately addressed
by the most recent provisions and require further study. 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 September 6, 2011, the City Council enacted, as
an urgency ordinance to take effect immediately, Ordinance No. 2011-2366, imposing for a
period of 10 months and 15 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. 2011-2366 will expire on July 21, 2012
unless extended by action of the City Council. The Government Code provides that after a public
1 EXHIBIT "A"
hearing, the 10 month and 15 day moratorium may be extended by one year. If the Council seeks
to consider extending the moratorium, then a public hearing will need to be held. Such public
hearing could be calendared for the next regularly scheduled Council Meeting. Should an
extension be adopted, staff would 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, their effect upon other communities, and
possible recommendations for best practices regarding such establishments.
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 EXHIBIT "A"
Passed and adopted by the Council of the City of National City, California, on July 3,
2012 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
fJAflJi4
City C erk of the City ofnal City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2012-148 the City of National City, California, passed and adopted
by the Council of said City on July 3, 2012.
City Clerk of the City of National City, California
By:
Deputy