Introduce Ordinance #16-11 Amending Ramsey City Code by Deleting Article VIII Titled Gasoline Sales and Article X Titled Motor Vehicle Sales, Repair and Rental

Purpose:  To amend Ramsey City Code by deleting the requirement of an annual City license to sell gasoline and to sell, repair and/or rent motor vehicles.

Background:  Each year City staff reviews the rates, fees and charges.  For several years, the City has charged certain types of businesses an annual license fee to conduct business in the City of Ramsey.  The licenses were part of the regulatory scheme for tracking and regulating business, and the fees were designed to cover the staff cost for enforcing those regulations.    

Two types of businesses that currently require an annual renewal license and fee are the sale, rental and/or repair of motor vehicles and the sale of gasoline.  Both such businesses require a conditional use permit through the City in addition to adhering to public nuisance and property maintenance codes. Both types of businesses are also licensed and regulated by the State of Minnesota. 

Staff is suggesting discontinuing the requirement of an annual license and annual fee for each of these types of businesses as they are currently regulated in other manners by the City as well as the State of Minnesota.  There are currently 33 motor vehicle sales licenses in effect which includes RV dealers, bobcat dealers, mechanic shops, etc., and eight gas stations.  The City would be losing approximately $7,800 in annual revenue (33 x $175 = $5,775 and 8 x $250 = $2,000).    

Staff held discussions concerning whether these types of businesses require additional time that justifies an annual fee.  Staff determined that in the past, there was a higher volume of staff calls regarding such things as illegal license plate swapping on used vehicles or perceived shady deals with "here today, gone tomorrow" dealerships.  With regard to gas stations, prior to "pay at the pump", there were many "drive-away - no pay" calls to the Police Department.  With added cameras and monitoring, the calls regarding drive away/no pay customers is almost non-existent. As noted above, with newer State regulations and conditional use process through the City, used car dealerships also do not require the level of additional staff time at the City as in years past.  

Staff reviewed the licensing and permits section on the website of the following cities:  Andover, Anoka, Elk River, Ham Lake and St. Francis.  The City of Anoka requires an annual motor vehicle sales license for a fee of $75.  The other cities do not require such a license and none of the cities listed require a gasoline sales license.

Discontinuing these two types of license will streamline the license process for staff and save time and money for the businesses as well.  

Staff is recommending City Council introduce and finally adopt the attached ordinance which would discontinue the requirement of annual licensing to sell gasoline and to sell, rent, or repair motor vehicles.

Motion to Introduce Ordinance #16-11 Amending Ramsey City Code by Deleting Article VIII Titled Gasoline Sales and Article X Titled Motor Vehicle Sales, Repair and Rental.