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<br />The final proposed change which may result in comments involves the increase in the amended <br />fine schedule. The current penalty for violating the Used Merchandise Dealer Ordinance is $360 <br />per violation. The proposal is to increase this to $500 for a first offense, and up to $3,000 for a <br />sixth and subsequent offense. This increase is needed because the $360 flat fine amount is <br />inconsequential compared with the profit reaped by flagrant violators. Recently EPD contacted a <br />business operator who had previous violations for dealing stolen property. The owner committed <br />that he was no longer buying regulated property. After a six-month investigation, the dealer was <br />cited for 125 violations for unlawful transactions from which he gained $90,000 in revenue. His <br />conviction on those charges resulted in fines amounting to only $5,600. <br /> <br />The increased penalties are not intended to affect stores that make random errors in reporting or <br />compliance. Rather these penalties are for those stores currently in operation that repeatedly <br />violate the regulations, and behave in a manner consistent with criminal fencing operations, and <br />the presiding judge will determine fine amounts, based on the totality of the circumstances. <br /> <br /> <br />RELATED CITY POLICIES <br />This topic relates to the following: <br /> <br />Council Goal - Safe Community Vision: A community where people feel safe, valued and <br /> <br />welcome, with decreased property crime. <br /> <br /> <br />COUNCIL OPTIONS <br />1.Proceed with final action tentatively scheduled for November 26 with ordinance as drafted. <br /> <br />2.Proceed with final action tentatively scheduled for November 26, with amended ordinance. <br /> <br />3.Table or end the work on the proposed ordinance, and allow state regulations to cover precious <br /> <br />metal dealers. <br /> <br /> <br />CITY MANAGER’S RECOMMENDATION <br />The City Manager recommends that the ordinance be scheduled for action Nov. 26, either as proposed, <br />or as amended based on community comments received at Nov. 19 public hearing. <br /> <br /> <br />SUGGESTED MOTION <br />No motion is needed if the ordinance is scheduled for action Nov. 26. <br /> <br /> <br />ATTACHMENTS <br />A.Draft Ordinance <br /> <br /> <br /> <br />FOR MORE INFORMATION <br />Staff Contact: Carter Hawley <br />Telephone: 541-682-5852 <br />Staff E-Mail: carter.r.hawley@ci.eugene.or.us <br />S:\CMO\2012 Council Agendas\M121119\S1211192.doc <br />