Sunday, February 12, 2012

Friday, Feb. 26, 2010

City refunds money to Los Banos coin dealer

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Last week the city gave Troy Thoreson his money back.

The owner of Thoreson Numismatics was hand-delivered a check for $1,163 on Feb. 18 by City Manager Steve Rath.

Thoreson paid the money to the city Jan. 29 as part of an administrative fee connected to his business license. Thoreson relinquished the money in protest -- using 80,000 pennies and 363 dollar bills -- because the fee is listed by Los Baños as being for pawnbrokers, not coin shops.

City officials previously maintained that the intent of the fee was to include secondhand dealers in the fee schedule. Thoreson has a secondhand dealer's license and his business buys used gold.

However, this week Rath said the money was returned because the legal distinction in the city's fee schedule was not as transparent as it should have been.

"The city attorney said it wasn't clear enough," Rath said. "He's definitely not a pawn shop, no one was ever saying that."

Thoreson, who had deposited the refunded money by Monday morning, feels vindicated and grateful to the members of the business community who supported his position.

"So many people didn't feel I should be charged as a pawnshop," he said.

When Thoreson staged his protest about 12 people came to City Hall to support his effort. At a recent City Council meeting Councilman Mike Villalta requested the money be returned to Thoreson. Villalta also went as far as deeming the administrative fee "illegal" in Thoreson's case because his business was being charged as something it was not.

Villalta was pleased that the money was returned.

"I'm very happy," he said. "What's right is right. It should have never been collected."

According to police department officials the fee would have covered the staff time spent to conduct background checks, check for insurance fraud and make sure the gold items Thoreson buys have not been reported stolen. Cmdr. Gary Brizzee has said the detective who files the final report spends about 15 minutes on each one at a rate of $60 an hour. Thoreson said he generates 25 reports per week.

Thoreson said he is unsure of what will happen with the administrative fee in 2011.

"I was happy to get that check. I didn't think about 'well, I could be paying this next year," Thoreson said.

Rath said he's spoken with Thoreson about streamlining the process to find a way where the administrative fee is not so costly.

Thoreson said he's encouraged by the city's new attitude. He said he watched last week's City Council meeting with particular interest as Mayor Tommy Jones made statements about helping business prosper.

"I think this ties in with what the mayor was talking about the other day about encouraging and helping each other," Thoreson said. "Maybe this is the first step in moving in that direction."

Enterprise reporter Corey Pride can be reached by phone at 388-6563 or by e-mail at cpride@losbanosenterprise.com