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<br />ATTACHMENT C <br /> <br /> <br />USED MERCHANDISE DEALERS ORDINANCE <br />PROPOSED FUNDING MODEL AND ESTIMATE <br />OF ANNUAL SYSTEM CHARGES <br />December 2005 <br />The pricing model proposed to fund the Used Merchandise Dealer Automated Reporting <br />System is based on the use of a third party vendor who provides the internet-based <br />program for collecting, storing and delivering transaction information gathered in pawn <br />shops and secondhand goods businesses. The model is designed to apply to all stores in <br />Eugene, Springfield and unincorporated Lane County who meet the qualifications as set <br />forth in the proposed amendments to the Used Merchandise Dealers Ordinance (see <br />Attachment “A”). Administration of the program would be handled by Eugene Police <br />Department. If the other jurisdictions do not successfully pass a similar ordinance that <br />requires automated reporting of transactions then the vendor’s quote for the annual <br />system fee would be modified to reflect the reduced number of transactions. <br />As currently proposed, the cost of administering the program would be absorbed by the <br />Eugene Police Department because the use of the automated system will reduce the <br />administrative duties that are currently performed manually by EPD’s Property Crime <br />detectives and the civilian staff person. Their time will then be freed to utilize the <br />electronic database with real-time information. <br />Fees charged to stores are based upon each store’s level of annual transactions. These <br />fees will be used to pay the annual systems charges to the vendor. Eugene’s financial <br />systems are capable of billing the respective stores and the Eugene Police Department <br />can receive the fees and deposit them into the appropriate revenue account to offset the <br />annual vendor fees which have been quoted in a five-year contract. <br />Following the approval of the amendments to the Used Merchandise Dealers Ordinance, <br />the City Manager would be authorized to develop a fee schedule which would then be <br />adopted through the Administrative Rule process. An estimate of proposed charges to the <br />stores that would fund the annual system is provided below: <br />ESTIMATE OF ANNUAL SYSTEM CHARGES <br />Number of Range of Estimated Tier Level Pricing Model <br />1 <br />Stores Annual Transactions Annual Charge <br />2 <br />Per Store Per Store <br />7 >3,000 I $700 <br />8 1,000 – 2,999 II $550 <br />23 300 - 999 III $400 <br />20 <300 IV $200 <br />58 $22,500 <br /> <br /> <br />1 <br /> Stores are located in Eugene, Springfield and unincorporated Lane County <br />2 <br /> Based upon reported transactions in 2004 <br /> <br />