CR 97-112 Approve License Application - Integrity Auto Brokers
June 10, 1997
Council Report 97-112
APPROVE LICENSE APPLICATION AND PENALTY
INTEGRITY AUTO BROKERS, INC
Proposed Action
Staff recommends that the Council approver the following motion: Move that the Hopkins
Citv Council approve the license application for Automobile Dealer for InteQritv Auto
Brokers. Inc. and denv the reauest to waive the pena/tv fees for InteQritv Auto Brokers.
Inc.
Adoption of this motion will grant license for Integrity Auto Brokers, Inc. to act as an
Automobile Dealer and require payment of the penalty along with the license fee.
Overview
John Walsh purchased Rent.a-Wreck in September or October of 1996. We had
conversations before the purchase about the license requirements. Mr. Walsh said that the
former owner, Mr. Ralph Karchevski, would aI/ow him to work under the license that was
currently held until the end of 1996. Because it was close to the end of the year and
because Mr. Walsh also was required to complete changes to the property to comply with
the conditional use permit for the property, it was decided that he could continue in that
manner. It was confirmed by staff that Mr. Walsh had permission from Mr. Karchevski to
work under the existing license until the end of 1996. License renewal forms were sent
out for 1997 in October 1996. Mr. Karchevski notified the office that he would not be
responsible for the 1997 license. Mr. Walsh was notified that he needed to apply for the
1997 license.
Primary Issues to Consider
. Was Mr. Walsh aware of the procedure and requirements
. What does the ordinance require
. Uniform enforcement
Supportina Information
. Complete application available in the City Clerk's office
~
Ten er aier, City Clerk
Council Report 97-112
Page 2
Primarv Issues to Consider
. Was Mr. Walsh aware of the procedure and requirements
Mr. Walsh appeared before the Zoning and Planning Commission on October 29,
1996, to request the continuation of the CUP. Staff spoke with Mr. Walsh at that
time and informed him that the license he was currently operating under would
expire on December 31, 1996, and that he would need to apply for his own state
license and apply for the 1997 license from the City of Hopkins. He indicated at
that time that he understood the procedure.
Mr. Walsh submitted an application for a license on May 5, 1997. At the same time
he submitted a request for zoning approval for his state license. When Mr. Walsh
was informed that he would have to pay the penalty, he said that he was not
renewing a license and therefore was not considered as a late renewal. When
reading the section further, he stated that he was not applying for a new license
late, because he had been operating under an existing license. It was explained to
Mr. Walsh that either way, he was not in compliance. Mr. Walsh read the ordinance
again and said that the ordinance reads "may" not must.
. What does the ordinance require
Section 1005.05, subd.2 states "A double fee may be charged any business which
fails to secure a license in a timely manner. This provision shall apply to any
business which fails to renew a license by the end of January. It will also apply in
the case of a business seeking a new or temporary license where the business opens
or the activity begins prior to applying for a license."
. Uniform Enforcement
In some cases, where hardships exist, or circumstances beyond the control of the
applicant have caused delays, double fees have been waived. It is believed that in
this case, the applicant was fully aware of the procedure and requirements and
made a decision to be out of compliance. In similar situations, others have been
required to pay the penalty.
Alternatives
1. Grant the license without waiving the penalty fee with proof of receipt of state license
2. Grant the license and waive the penalty fee with proof of receipt of state license
3. Do not grant the license
Staff recommends alternative number one.