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HomeMy WebLinkAboutCity Council Packet 05-21-2002 SpecialAgenda City of Plymouth Special City Council Meeting Tuesday, May 21, 2002 7:00 p.m. Council Chambers 1. Call to Order 2. Discuss issues with residents of Northwest Plymouth one hour planned) 3. Discuss Lawful Gambling 4. Schedule future study sessions 5. Quarterly Check-in with City Manager 6. Adjourn. Agenda Number: CITY OF PLYMOUTH CITY COU NCIL AGEND-,RIE PQR'T TO: Dwight Johnson, City Manager FROM: Anne Hurlburt, Community Development Director SUBJECT: Discussion of Issues with Residents of Northwest Plymouth DATE: May 15, 2002 for the Special City Council Meeting of May 21, 2002 On February 12, 2002, Mr. Leonard Luedke, 17410 Co. Rd. 47, appeared at the Plymouth Forum portion of the City Council's meeting, requesting that the Council meet with him and several other property owners to discuss issues concerning Northwest Plymouth. A copy of the list of other landowners is attached. The City Council has set aside one hour during its May 21, 2002 Special Meeting for this discussion. All of the landowners have been sent an invitation to the meeting. We have received no specific questions or discussion topics for the meeting. We do expect the discussion to relate to the City's Comprehensive Plan, and possibly the relationship of the Plan to the upcoming construction of the Elm Creek Interceptor. We will have relevant maps and materials available. ATTACHMENTS: 1. List of Property Owners with Map n:lcdlplanlstaffreplcc120021may21 special, doc Map Number PID Owner ADDRESS ACRES 1 0511822130003 Craig Scherber 40 ADDRESS UNASSIGNED 35.917 2 0511822140008 Craig Scherber 40 ADDRESS UNASSIGNED 22.725 3 0511822230001 Vernon Peterson 17425 CO RD NO 47 3.288 4 0511822430002 John O'Donnell 5550 DUNKIRK LA N 19.907 5 0511822430003 John O'Donneli 40 ADDRESS UNASSIGNED 18.022 6 0511822440003 Al Goblirsch 5505 VICKSBUR G LA N 23.665 7 0611822110001 Len Luedke 40 ADDRESS UNASSIGNED 18.555 8 0611822110002 Len Luedke 17800 CO RD NO 47 19.700 9 0611822120001 Len Luedke 17910 CO RD NO 47 15.879 110 0611822120004 AI Sand 18100 CO RD NO 47 4.720 11 0611822120005 AI Sand 18100 CO RD NO 47 14.972 12 0611822130004 Jim Randall 18035 CO RD NO 47 5.080 13 0611822140002 William Tombers 5805 LAWNDALE LA N 18.134 14 0611822220003 Russell Smith 18935 CO RD NO 47 27.477 15 0611822410001 Jim Grimes 5705 LAWNDALE LA N 9.768 16 0611822420001 Jim Grimes 5725 LAWNDALE LA N 5.318 17 0611822420002 Joe Bowen 5730 TROY LA N 11.471 1810811822110003]Brady O'Brian 5335 VICKSBURG LA N 5.754 19 0811822120007Drayton, Greamba, Scherber, Schnurr 140 ADDRESS UNASSIGNED 1 31.822 Agenda Number: -3 CITY OF PLYMOUTH CITY COUNCIL AGENDA REPORT' TO: Dwight D. Johnson, City Manager FROM: Craig Gerdes, Police Chief, and Laurie Ahr s, Assistant City Manager SUBJECT: Request for Charitable Gambling DATE: May 13, 2002, for City Council study session of May 21, 2002 1. ACTION REQUESTED: Review the information provided on charitable gambling and determine whether to expand gambling in Plymouth. 2. BACKGROUND: At a Council study session on January 15, 2002, the Plymouth Lions and the Plymouth Crime and Fire Prevention Fund made a request to allow a pull -tab operation at Mulligan's. With the exception of bingo, gambling is currently prohibited in the City. Attached are copies of the meeting minutes, along with additional information collected through a survey of other communities. Two fundamental questions remain: 1) Is gambling right for this community? 2) Is there a conflict of interest, specifically with respect to the Crime and Fire Fund? There may be a perception of conflict in the City allowing gambling at the request of the Plymouth Crime and Fire Prevention Fund after a long prohibition because the City receives contributions from the group beyond the 10 percent that could be required of all organizations. In fact, the stated purpose of the organization is to raise funds for the Plymouth fire and police services. There may be a more specific conflict of interest with respect to the police department with this group. The department conducts the investigation of the applicant and handles enforcement action, while receiving contributions from the group. (If gambling is expanded, staff would recommend at a minimum that the Sheriff handle all investigation and enforcement actions for this group.) This is not unique. The fire relief associations in many cities operate pull -tab operations as a method of fund-raising. And, certainly other non-profit groups could request gambling to raise funds to purchase open space or to make environmental improvements. However, the most common requests, as shown in the survey, are from veteran/fraternal organizations and athletic associations. 3. ALTERNATIVES: The Council can direct staff to prepare an ordinance to consider at a future regular meeting, or take no action and decline to study the issue further. 4. DISCUSSION: At the January study session, the Council discussed the social costs related to gambling. There were also several questions related to regulation of gambling. The attached survey was conducted to answer questions about the restrictions placed on establishments and licensed locations, the restrictions placed on proceeds, and whether an investigation fee or local gambling tax is imposed. What types of gambling are allowed in other cities? Most cities in our survey allow gambling to a greater degree than Plymouth. However, Minnetonka and Edina have strict restrictions on gambling which results in no annual gambling licenses issued in those communities. State law provides for pull tabs, bingo, paddlewheels, raffles, and tipboards. In practice, pull tab operations are the most common. Some cities prohibit bingo halls. How is gambling regulated? Gambling licenses are issued by the State. The City has the opportunity to, in effect, approve or disapprove a State license. Therefore, a local police investigation is needed. The City is governed by general legal principles that govern other types of licenses. While the Council has a fair amount of discretion in considering a license request, the Council may not arbitrarily or capriciously disapprove a license. The State is also intended to be the primary investigation entity for enforcement of lawful gambling violations. However, with over 2,000 organizations operating in 3,900 locations in the State, it is necessary for cities to also enforce gambling. How could the City limit the number or types of organizations, establishments, or locations? It is common to restrict gambling to liquor establishments, the licensed organization's premises, and places of worship. However, Minnetonka prohibits gambling in liquor establishments. Edina allows gambling only in churches and schools, and only for special events lasting no more than three days. The City Attorney suggests that our ordinance should not distinguish between types of liquor establishments. For example, the ordinance could not prohibit gambling in family-oriented restaurants or establishments that have a 3.2 malt liquor license versus a liquor license. The number of organizations or establishments should also have some rational basis. Some cities allow only one organization per location, while others allow each organization to have two or four locations. Eden Prairie limits the total number of licensed premises to four, plus one for every 10,000 population in excess of 40,000. Can the City require that the funds remain in tire community? State law provides that cities may establish "trade areas" in which all or part of the gambling proceeds must be spent. The trade area must include at least all abutting communities. While this does not ensure that all funds will be spent within the community, it does result in expenditures that benefit the general community area. Blaine requires 100% of net proceeds to be spent within the trade area, St. Louis Park 90%, Maple Grove and Medina 50%, and Bloomington 30%. Some cities have no trade area restriction. How should one-time gambling events be handled? One-time gambling events that are exempt from licensing are typically used for community and school events. These events are exempt from licensing by the State and should not be unduly regulated by the City. We currently send these requests to the City Council for approval; however, no investigation is done. There would likely be no basis for denial of a request. We recommend that the ordinance be amended to provide for a police review of all applications (to ascertain the legitimacy of the organization and ensure we have no complaints against the organization). After a positive police review, the application would be forwarded directly to the State. If any problems are found, the application would be forwarded to the City Council for action. This process would save time for the applicant and provide for a better review by the City. If the Council wishes to proceed with gambling, the next step is to direct staff to draft an ordinance to allow charitable gambling. 5. BUDGET IMPACT: If gambling is expanded in Plymouth, the investigation and enforcement costs could likely be recouped through the 3 percent gambling tax, which is allowed by state law. 6. RECOMMENDATION: Review the information provided and determine whether gambling should be expanded in Plymouth. Attachments: Gambling Survey Minutes of January 15, 2002 study session Staff report on gambling for January 15 study session Request of Plymouth Lions Club and Plymouth Crime & Fire Prevention Fund Gambling Survey 11J. 1 z Or sed .. . oc............... ril: t A gg Apple Valley 2 4 None. Invest. fee $250 American Legion Allowed only in liquor Hockey Assn. establishments. Blaine 6 6 100% of net proceeds i 10% of net profits to 4 Hockey Assn. Allowed only in liquor must be spent in trade City -administered fund. 1 Lions establishment, church, area. I VFW fraternal veterans or nonprofit organization. Bloomington 14 12 + gambling allowed 4"' 30% of net proceeds 25% Local Gambling floor Mall of America. must be spent in trade Tax on gross receipts. 0 Allowed only at liquor area. establishments or licensed organization premises, places of worship. 0 Each organization can hold 3 locations. 9 No more than 3 organizations permitted in any location. Brooklyn Park 12 12 0 75% of net proceeds Each organization can from pulltabs must be hold 3 locations. spent in City of BP. Must be a church, bingo e Trade area includes hall, nonprofit org. surrounding premises, or liquor communities and establishment. I Minneapolis. C ly g uz.t &Y W Lic'ensed,Locations Restrictions on Proceeds '' Other Burnsville 3 4 250 investigation. fee. Allowed only to Allowed only in liquor organizations with establishments. principal offices in the s Only 1 license allowed City. per location. Coon Rapids 7 11 60% of net proceeds For last 6 months of Lions Only organizations with must be spent in trade 2001, over $250,000 Youth sports 1/3 of its members from area, with 10% within was spent in the trade Scholarship Assn. Coon Rapids allowed. Coon Rapids. area. American Legion Allowed only at liquor VFW establishments, except Little League given CUP to operate a storefront operation. Eden Prairie 1 Hockey Assn. 1 Each organization allowed in 4 premises. Premises limited to 4 1 for ea. 10,000 population in excess of 40,000. Premises must be owned by organization. Edina Allowed only in churches 2 permits issued to 1 and schools. organization in a year; each event maximum 3 days. CZty ;. L censed oxs:P;;g. '" Licensed Locations Restrictions on Proceeds Other Maple Grove 4 4 50% of netroceedsp Limited to one Comm. Charities of MN Allowed in church, veterans must be spent in trade organization per Lions fraternal or nonprofit area. premises. Fire Dept. Relief Assn. organization, or liquor 10% of net profits to Hockey Assn. establishment. City-administered fund- s .5% Local gambling tax on gross receipts. Medina 3 3 50% of net proceeds 1 Lions must be spent in trade 2 Fire Dept. Relief Assns. area. Minnetonka 0 Gambling prohibited in liquor establishments. New Hoe 1 Fire Dept. Relief Assn. 1 Richfield 2 2 American Legion Organization may hold VFW only 2 locations. Allowed only in liquor establishments or licensed organization's premises. Bingo halls not ermitted. St. Louis Park 5 5 90% of net profits must Problems enforcing VFW Allowed only in liquor be spent in trade area. trade area; dealt with Humane Society establishments. license denials. Basketball 75% gambling tax, Hockey recently dropped Raspberry Festival I from 2% mawounermrinumL cnantame gunoimg raves Adopted Minutes Special Council Meeting January 15, 2002 A Special Meeting of the Plymouth City Council was called to order by Mayor Tierney at 7:05 p.m. in the Public Safety Training Room, 3400 Plymouth Boulevard, on January 15, 2002. COUNCIL PRESENT: Mayor Tierney, Councilmembers Johnson, Slavik, Stein, Black, Harstad, and Hewitt. F.111 M. -M 11,21_Marem STAFF PRESENT: City Manager Johnson, Assistant City Manager Ahrens, Police Chief Gerdes, Fire Chief Kline, Park and Recreation Director Blank, Housing Manager Barnes, Community Development Director Hurlburt, Finance Director Hahn, Public Works Director Faulkner, Solid Waste Coordinators Hageman and Vigoren, and City Clerk Paulson. Motion was made by Mayor Tierney, and seconded by Councilmember Hewitt, to reverse the order of the agenda for items 1 and 2 on the agenda. With all members voting in favor, the motion carried. Plymouth Crime and Fire Prevention Fund and Plymouth Lions Request for Pull -Tabs Assistant City Manager Ahrens reported on the request of the Plymouth Lions Club and the Plymouth Crime and Fire Prevention Fund requesting approval to sell pull tabs at Mulligan's. She stated with the exception of bingo, gambling is currently prohibited in the City. However, the State lottery is exempt as well as a one-time lawful gambling event (i.e. raffles). Therefore, if the Council would desire to allow other types of lawful gambling in the City, adoption of an ordinance amendment would be necessary. Ed Stanke, Plymouth Lions Club, requested the Council to consider adopting an ordinance amendment that would allow for pull -tab gambling within the City. He stated when he was formerly with the Lions Club in Wayzata, the proceeds derived from their gambling location in that community were given to the Wayzata Fire Department, the school, and a few national organizations that their club supported. Police Chief Gerdes noted that the City would have the option of receiving either a 3% tax from the licensed organization on their gambling proceeds or charge a $250 investigation fee. He stated the $250 fee would not cover his department's costs; therefore, he recommended the 3% tax. Adopted City Council Minutes Special Meeting of January 15, 2002 Page 2 of 6 Mayor Tierney stated the Council needs to determine if they want to have other forms of gambling in the City. Assistant City Manager Ahrens stated this issue was last discussed in 1991, and it failed on a 2-3 vote. Mayor Tierney stated if the Council is philosophically opposed, there is no need to discuss it further. Councilmember Harstad stated he is not philosophically in support of the additional gambling. He acknowledged the benefit that is derived from the additional funds derived from gambling that could be used. within the community, but that wouldn't alter his view. He is very concerned about how the gambling would be regulated. Councilmember Black stated she is unsure if she would support this request. She, too, could strongly support the causes that the funds could be used for. However, she doesn't totally support the act of gambling. Councilmember Hewitt stated due to her past experience in social service agencies, there was a lot of negative impacts to individuals who were compulsive gamblers. She is also concerned on how this ac i -=it / would be monitored. Mayor Tierney stated she would support further information on the issue. Some of this information could include how other cities got started, how they regulated it, what types of gambling are allowed in their communities, and if they restrict the types of establishments where the gambling could occur. Councilmember Slavik asked if staff is aware of any community that doesn't allow pull -tab gambling, other than the City. Assistant City Manager Ahrens replied of the cities the City contacted, there is no one who prohibits gambling in their community. Billie Kaye Goodman, from the Crime and Fire Prevention Fund, stated they have seen a drastic decrease in contributions to their fund. They sent donation letters to 800 businesses, and they have only received $1,000 in donations. She agreed that the gambling would need to be monitored, but Plymouth residents, who enjoy gambling, will spend their money elsewhere. She mentioned the new freestanding pull -tab only facility in Crystal. Councilmember Stein stated he would like further information on this item. He would be interested in reviewing what types of controls -the City could have. Adopted City Council Minutes Special Meeting of January 15, 2002 Page 3 of b Councilmember Johnson asked if the City could self limit the number of licenses that would be issued. Assistant City Manager Ahrens stated she is unsure, but she would report back. Motion was made by Councilmember Black, and seconded by Councilmember Hewittto determine whether the Council should ursue this further, by obtaining additional information and bringing it back to another Council -Study Session. Councilmember Slavik stated she is not a supporter of gambling for philosophical reasons. However, it would be difficult to reject the request from two organizations that have made many contributions to the community. At this point, she is not really inclined to proceed further; however, she would support receiving additional information. In comparison, she would rather continue supporting the one-time lawful gambling exemptions that are used for community and school events, as they are perceived to be more family type events. She also noted that the exemptions are a different type of gambling environment than that of pull -tabs. Councilmember Johnson stated she views gambling as entertainment. She agreed that individuals are not always responsible when they participate in gambling, but gambling isn't the only thing that is abused. She stated there could be a great benefit to keeping the entertainment dollars in the City. She would be willing to review information from other cities on their ordinances. Councilmember Black stated this item is really an emotional and a rational issue. The Council needs to go beyond the emotional issue in making their decision. Councilmember Johnson agreed with Councilmember Black and questioned if this is any different than the liquor licenses that the Council issues. The licensees and consumers need to be responsible. Councilmember Stein agreed and stated that citizens need to have individual responsibility. He stated he gambles occasionally, and he views it as entertainment. He stated if people are going to gamble, they're going to gamble, but it would be to the City's benefit for the residents to spend their money in the City. Motion was made by Councilmember Stein, and seconded by Councilmember Harstad to call the question. With all members voting in favor but Johnson and Slavik, the motion carried. The Council voted on the main motion, and with Stein, Johnson, Slavik, and Tierney voting yes, and Black, Hewitt, and Harstad voting no, the motion carried. City Manager Johnson requested the Council to give any concerns or requested information to staff to include in their report. Adopted City Council Minutes Special Meeting of January 15, 2002 Page 4 of 6 Councilmember Johnson requested 'information on whom the City could limit the licenses to, and if the City could require that the funds remain in the community. Mayor Tierney requested information if the City could limit the types of organizations that could be licensed in the City. Housing M ager Barnes reported at the October 23, 2001 Council meeting, the Council suggested tha Study Session be conducted to discuss concerns about affordable housing as well as plan for ousing foram. He stated the purpose of conducting this forum would be to educate the stakeh ders on the issue of affordable housing in the City that would include: 1. What is affordable using. 2. Past affordable housi projects in the City. 3. Various ways the City\ afforable ate in affordable housing projects. 4. Potential sources of furestrictions. 5. Barriers to developingousing. He stated the audience woof the Council, City's Housing and Redevelopment Authority, Planning Combers, City staff, developers,non-profit housing providers, housing advocates, and ci Councilmember Harstad voiced his concek of occupying additional staff time to focus on affordable housing. He stated the Council sn't provided suggestions to staff on an educational process for this type of forum. Mayor Tierney requested that staff provide City to assist in affordable housing. Councilmember Hewvitt suggested staff include in to assist in providing .affordable housing, and this assist developers and landowners. on what resources are available at the on on efforts that landowners could do include the "tools" that are available to Councilmember. Slavik suggested that landowners be invited tRthis forum. She stated she is not interested at this time in establishing a fund within the City's buAget for affordable housing due to the uncertainly of the State's budget and how it would affect th City. She indicated that one needs to review the current housing stock in the City to determineh that housing could remain affordable. Agenda Numbers TO: Dwight D. Johnson, City Manager FROM: Laurie Ahrens, Assistant City Manager SUBJECT: Request for Pulltabs DATE: November 20, 2001 1. ACTION REQUESTED: Review the information provided on lawful gambling and direct staff on whether to draft an ordinance to expand the types of gambling allowed in the City. 2. BACKGROUND: Request Received. The City of Plymouth has received a letter from the Plymouth Lions Club and the Plymouth Crime and Fire Prevention Fund requesting approval to sell pull tabs at Mulligan's Bar and Grill. With the exception of bingo, gambling is currently prohibited in the City of Plymouth. An ordinance amendment would be needed to consider this request. A copy of their letter is attached. Plymouth Ordinances on Lawful Gambling. Prior to 1991, gambling was prohibited in Plymouth. That year, the City Council considered a request from St. Therese Horne to allow bingo and pull -tabs in order to develop a bingo hall at the Plymouth Shopping Center site on Highway 55. The City Council considered this request and adopted a gambling ordinance to allow bingo. Pulltabs and other forms of gambling (e.g. paddlewheels, raffles, tipboards) were not allowed under the new ordinance. The ordinance also prohibited gambling in liquor establishments. St. Therese did not pursue the operation, at least partly because they required pulltabs along with the bingo operation. Several requests to allow pulltabs have been received since that time, but the Council has not indicated an interest in expanding gambling in Plymouth. Today, the Plymouth City Code still prohibits lawful gambling in the City, with the exception of bingo. The other exceptions are the state lottery (which the City caamt restrict) and gambling exempt from state licensing (e.g. one-time raffle held by a school.) State Law on Lawful Gambling. With the exception of the state lottery, paramutual horse racing, bingo, tipboards, paddlewheels, pull -tabs, and raffles, Minnesota laws prohibit all forms of gambling and gambling devices. Only qualified organizations may conduct lawful gambling. To qualify, an organization must be a religious, fraternal, veterans', or other nonprofit or tax-exempt entity that has been in existence for at least Page 2 three years, has at least 15 active members, and is not in existence solely for the purpose of conducting gambling. The Minnesota Gambling Control Board is the state agency that licenses and regulates gambling. A. City is allowed to prohibit gambling. if gambling is allowed, there are several classes of licenses: 1) all forms of lawful gambling; 2) all forms of gambling except bingo; 3) bingo only, or bingo and pull tabs if combined gross receipts do not exceed 50,000; and 4) raffles only. An organization must apply to the State for an organization license, a premises permit, and a gambling manager's license. The Gambling Enforcement Division conducts the license investigations. Applicants are screened through a background investigation that includes the applicant's, personal, business, and financial relationships. The State notifies the City of each gambling application, and the State may not issue or renew a license unless the organization submits a. resolution of approval from the City Council. The City has the opportunity to, in effect, approve or disapprove the State license. Therefore, a significant local police investigation is also needed. The City is governed by general legal principles that govern other types of licensing. While the Council has a fair amount of discretion in considering a license request, the Council may not arbitrarily or capriciously disapprove a license. The fairy is prohibited from requiring a local license for gambling. The State is also intended to be the primary investigation entity for enforcement of lawful gambling violations. However, with over 2,000 organizations operating in 3,900 locations in the State, it is necessary for cities to also enforce lawful gambling. Thz, statutes require that no more than 70 percent of gross profits from bingo, and 55 percent of gross profits from all other forms of gambling, may be used for expenses related to lawful gambling. The remainder of the profits must be used for lawful expenditures. Local ordinance, regulations commonly require quarterly revenue reports, copies of reports the gambling manage, is required to send to the State, and copies of checks sent to the charities. Any regulations must apply equally to all forms of gambling. Local gwubling ordhiances typically include one or more of the following requirements: 1) Specified funding. The City could require an organization to make expenditures of up to 10 percent of its net profits to a specific lawful purpose. However, the constitutionality of this has been questioned because an organization may be required to make a contribution to a cause that it philosophically does not support. 2) Ci , administered funds. The City may require an organization to make expenditures of up to 10 percent of its net profits to a fund administered and reg Elated by the City. These funds may be distributed for 1) lawful purposes or Page 3 2) for police, fire, and other emergency or public safety-related services, equipment, and training, excluding pension obligations. 3) Trade area. The City may require that an organization expend all or a portion of its net profits for lawful purposes conducted or located within the city's trade area. The City Council defines the "trade area", but it must at least include all abutting communities. 4) Local gambling tax. The City may impose a local gambling tax not to exceed 3 percent of the gross receipts less actual prizes paid out on each licensed organization. The City could not use local gambling tax money for any purpose except regulation of lawful gambling. A tax is in lieu of all other local investigation fees on law gambling. If no tax is imposed, the City may charge $250 per investigation; however, this would not cover the City's cost. As a note, the State automatically receives a 10 percent tax on gambling proceeds. Other cities. Most cities allow lawful gambling in some form. We contacted the following cities and all allow lawful gambling: Apple Valley, Blaine, Brooklyn Park, Burnsville, Coon Rapids, Eagan, Edina, Maple Grove, Maplewood, Minnetonka, New Hope, and Richfield. If the Council decides to consider allowing gambling in Plymouth, we would review these cities' ordinances to determine how they commonly handle fees, reporting requirements, trade areas, and local taxes. 3. ALTERNATIVES: The City can prohibit lawful gambling altogether or allow only certain types of gambling. If the Council wishes to consider expanding gambling in the City, staff can be directed to prepare an ordinance for consideration at a future meeting. The Council could also decline to consider the issue further. And, the Council may wish to request additional information not covered in this report. 4. DISCUSSION: The City has received a request for lawful gambling (pulltabs) from two local organizations that are well known and do much good work in the community. It is important that the Council consider the issue of whether to allow pulltabs in the City without sole regard to these organizations. It is highly unlikely that gambling would be limited in the City to these two organizations. Once pulltabs are allowed, we will receive requests from many organizations to conduct gambling. Requests could come from local youth sports associations, other local service organizations, veterans' organizations, fire relief associations, and national organizations such as the M.S. Society or Dollars for Scholars. For purposes of framing the discussion, the Council could consider the following issues: 1. Is gambling desirable in the City? This is largely a philosophical question. One opinion is that since gambling can encourage social problems and the City has the legal authority to prohibit it, it should do so. Another view is that gambling has positive entertainment value and should be expanded to offer a service currently not available in the City. Consistency with surrounding communities could also be considered. Maple Page 4 Grove, New Hope, Minnetonka, and Medina allow pull -tabs. Plymouth currently does not. Most pull tab operations are located within liquor establishments. There may be some benefit in drawing customers to businesses that have pull -tabs available versus those that do not. Or, the reverse could be true. Certain individuals may specifically choose to frequent an establishment that does not offer gambling. Gambling also serves as a significant source of revenue for many nonprofit organizations that otherwise would have funding issues or be unable to provide the same level of services. Through the establishment of a "local trade area", the City would make more funding available through gambling contributions to local nonprofit organizations that serve Plymouth residents. without this provision, all gambling proceeds could be spent at a national level or for services not available to Plymouth residents. if gambling is expanded in the City, there would be new costs to the City related to licensing, investigation, financial monitoring, and enforcement. However, the 3 percent local gambling tax could likely cover these costs of regulation. 2. Is gambling a good way to fund the City? The City has taken the perspective that contributions from the Crone and Fire Prevention Fund are to provide special or unique items beyond the City's normal budget. For example, the Fund initiated the canine program, which is now wholly funded by the City. The Fund contributed a boat to the Fire Department which is now maintained by the City. if funding is greatly expanded through either contributions from the Crime and Fire Prevention Fund or through a 10 percent city -administered fund on all gambling, should those funds supplant some local tax dollars for police or fire items? From a financial perspective this may make sense. Gambling proceeds would be a new source of revenue, and there are nely programs, ongoing services, maintenance, and replacement costs to fund. However, gambling proceeds should be considered variable income. It would be risky to coimt. on consistent gambling proceeds to fund ongoing services in lieu of local tax dollars. There are many alternatives for the 10 percent city -administered fund. The binds can be designated by the City Council for a specific City service or department, or directed toward open space acquisition, park system expenditures, or a community fourdation. The Council could also fund local social service agencies, which the City currently funds through the General Fund. 3. Is there a conflict of interest, speciftcally with respect to the Crime and Fire Fund? There may be a perception of conflict in the City allowing gambling at the request of the Plymouth Crime and Fire Prevention Fund after a long prohibition because the City receives contributions from the group beyond the 10 percent that could be required of all organizations. in fact, the stated purpose of the organization is to raise funds for the Plymouth police and fire services. There may be a more specific conflict of interest with respect to the police department with this group. The department conducts the investigation of the applicant and handles enforcement action, while receiving contributions from the group. (If gambling is expanded, staff would Page 5 recommend at a minimum that the Sheriff handle all investigation and enforcement actions for the Plymouth Crime and Fire Prevention Fund.) 4. If gambling is expanded, can it be controlled or restricted? State law provides a variety of ways that cities can restrict gambling. A City can prohibit gambling or allow only certain types of gambling. Zoning regulations can reasonably be used to determine the appropriate locations for lawful gambling; however, we have found no evidence that the Council can distinguish, for example, between a Mulligan's and a TGI Friday's (which some may perceive as a more family-oriented establishment). On the other hand, chain restaurants typically are not as likely to conduct lawful gambling. The Council could limit each location to one organization, or multiple organizations can be allowed at each location and gambling restricted to only one license holder at a time. The conduct of gambling -can be restricted to certain hours or to certain days of the week. A City can limit the prizes to be awarded more restrictively than state law, or prohibit employment of people other than members of the licensed organization. Decision Steps. If the City Council decides to expand gambling, the following decision steps could be discussed: 1) What types of gambling should be allowed? a) all forms of lawful gambling; b) all forms of gambling except bingo; c) bingo only, or bingo and pull tabs if combined gross receipts do not exceed 50,000; and d) raffles only. 2. Should the City charge a 3 % tax to cover the costs of regulating gambling? The other alternative is a $250 investigation fee. No license fee may be charged. 3. Should the City establish a 10% city -administered fund? If so, is there a general idea of how the funds should be expended, i.e. police, fire, parks system, open space acquisition, other city department, social service agencies. 4. How should the "local trade area" be defined? (It must at least include Plymouth and all abutting communities.) 5. Are there any other restrictions or controls that should be considered? (i.e. zoning, prohibit in certain types of liquor establishments, allow one nonprofit licensee per establishment or only one at a time, hours/days of sale.) 5. BUDGET EAPACT: If the Council decides to allow lawful gambling, the City's administrative licensing, police investigation and enforcement costs will increase. There is also a fair amount of financial record-keeping involved for the City. There could be a positive or negative budget impact of allowing lawful gambling in the City, depending on the requirements, funds, and taxes adopted by the Council. The implementation of a 10 Page 6 percent City fund and restrictive "trade area" requirement could result in new revenue for the City and additional funding of local nonprofit organizations. 6e RECOMN ENDATION: Review the information provided in this memo and direct staff on how to proceed. 11-10-01 Dear Mr. Johnson, Re: Pull Tab Resolution On behalf of the Plymouth's Lions Club and Crime and Fire Prevention Fund, We are asking to come before you so we can explain why it is important for us To get a Pull Tabs Resolution in the City of Plymouth. The monies raised by the Crime & Fire Prevention Fund would go back to the city for continued Public Safety programs, equipment, education, etc. Monies raised by the Lions Club would be given to charitable organizations. The Lions Club and the Crime & Fire Prevention Fund would be splitting the proceeds of the Pull Tabs, with the Lions Club doing the work. Mulligans Bar and Grille has agreed to be the site for the Pull Tabs operation. We are asking you to amend the Gambling/Pull Tab Ordinance, and adopt our Resolution for Pull Tabs in Plymouth. We look forwarding to meeting with you and answering any questions you might have. Thank you very much for your time. Sincerely, s Agenda Number: 71 TO: Dwight D. Johnson, City Manager FROM: Laurie Ahrens, Assistant City ManagerSUBJECT: Set Future Study Sessions DATE: May 17, 2002, for Council study session of May 21, 2002 ACTION REQUESTED: Review the pending study session topics list (shown below) and establish future special meetings if desired. Calendars are attached to assist in scheduling. Pending Study Session Topics at least 3 Council members have approved the following study items on the list) I-494 Corridor Commission and Highway 55 Corridor Group (Slavik, Black, Hewitt) UFFICIAL CITY MEETINGS May 2002 Sunday Monday Tuesday Wednesday Thursday Friday Saturday Apr 2002 Jun 2002 S M T W T F S S M T W T F S 1 2 3 4 5 6 1 1 7:00 PM PLANNING COMMISSION, 2 7:00 PM HUMAN RIGHTS COMMISSION - 3 4 7 8 9 10 11 12 13 2 3 4 5 6 7 8 Council Chambers Council Chambers 14 15 16 17 18 19 20 9 10 11 12 13 14 15 21 22 23 24 25 26 27 16 17 18 19 20 21 22 28 29 30 123 24 25 26 27 28 29 30 5 6 7. 8 9 10 11 7:oo PM YOUTH 7:00 PM PRAC, 10:30 AM - 4:006:00 PM ADVISORY ENVIRONMENTAL Council Chambers PM COUNCIL,Council Chambers QUALITY COMMITTEE MEETING, Bass Lake Room Special start time PLYMOUTH HISTORY FEST, Parkers Lake Park this month only) 12 13 14 15 16 17 18 5:30 PM YOUTH ADVISORY COUNCIL TOWN FORUM, Plymouth Creek Center 5:30 PM SPECIAL COUNCILMEETING: TAXICAB SERVICE To SUPPLEMENT THE PLYMOUTH DIAL -A RIDEPROGRAM, Public SafetyTrainirM Room 7:D0 PM REGULAR ICOUNCILMEETiNG, Cmurcil Chambers 7:00 PM PLANNING COMMISSION, Council Chambers 7:DD PM HRA - Medicine take Room 7:00 PM PUBLIC SAFETYADVISORY BOARD, Police IkyL Library 19 20 21 22 23 24 25 7:00 PM YOUTH ADVISORY COUNCIL,Council ChambersGAMBLING; 7:00 PM PACT - Bass Lake Room E 7:00 PMSPECIAL COUNCIL MEETING: LAWFUL VARIOUS TOPICS WITH NW PLYMOUTH RESIDENTS, Council Chambers 26 127 T28 29 30 31 MEMORIAL DAY Observed) - City Offices Closed 7:30 AM LOCAL BUSINESS COUNCIL, Radisson Hotel 7:00 PM REGULAR COUNCIL MEETING, Council Chambers modified on 5110/2002 OFFICIAL CITY MEETINGS June 2002 Sunday Monday Tuesday Wednesday I Thursday Friday Saturday May 2002 Jul 2002 1 S M T W T F S S M T W T F S 9:00 AM - 3:30 1 2 3 4 .1 2 3 4 5 6 5 6 7 8 9 10 11 7 8 9 10 11 12 13 12 13 14 15 16 17 18 14 15 16 17 18 19 20 19 20 21 22 23 24 25 21 22 23 24 25 26 27 26 27 28 29 30 31 28 29 30 31 PM, PLYMOUTH CLEAN-UP DAY, Public Works Maintenance Facility 2 3 4 5 6 7 8 7:00 PM YOUTH 7;00 PM 7:00 PM HUMAN ADVISORY PLANNING RIGHTS COUNCIL,Council COMMISSION, COMMISSION - Chambers Council Chambers Council Chambers 9 10 11 12 13 14 1.5 5:30 PM SPECIAL COUNCILMEETING: 6NOWPLOWINC CREATING A DOWNTOWN COUNCIL, Public Sardy Training Roam 7:O0PMREGULARCOUNCILMEETING, Ccundl Chambers 4:00 PM SKATE PARK CELEBRATION, 14900 23rd Avenue 00 PM ENVIRONMENTAL QUALITY COMMITTEE Council Chambers (this meafing Only} 7:00 PM PRAC, Council Chambers Fla Da9 y 16 17 18 19 20 21 22 7:00 PM YOUTH ADVISORY 7:00 PM PLANNING 7:00 PM HRA - McCicine Lake Room COUNCIL,Council Chambers COMMISSION, Council Chambers 7:00 PM PUBLIC SAFETY ADVISORY BOARD, Police D@pL Library LEAGUE OF MINNESOTA CITIES ANNUAL CONFERENCE, Rochester Civic Center 23 24 25 26 27 28 29 r9oaMLoraLauslN as COUNCII RaEham Ilahl MEEE I M aPEGY1LrRAFFICCALWNG ROGRP&M-a-- TraY,B9 Rma 7;00 PM PACT- Bass Lake Room 9;45 AM MUSIC IN PLYMOUTH 6k RUN 7:m PM REGuUkR COUNCIL MEETING, fbrdlCMl s 30 modified On 5/10/2002 OFFICIAL CITY MEETINGS July 2002 Sunday Monday 1 Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 6 7:00 PM YOUTH ADVISORY 5:15 PM MUSIC IN PLYMOUTH, 7:00 PM PLANNING INDEPENDENCE DAY - City COUNCIL,Council City Center COMMISSION, Offices Closed Chambers I Amphitheater Council Chambers 7 8 9 10 11 12 13 7:00 PM REGULAR 7:00 PM EQC, Bass Lake Room 7:00 PM FRAC, Council Chambers COUNCIL MEETING, Council Chambers 14 15 16 17 18 19 20 7:00 PM YOUTH ADVISORY 7:00 PM PLANNING 7-00 PM HRA - Medicine Lake Room COUNCIL,Coundl COMMISSION, Chambers Council Chambers 7;e6 PM PUBLIC SAFETYAOVISORY BOARD, Police Dept. Library 21 22 23 24 25 26 27 7;30 AM LOCAL BUSINESS 700 PM PACT - Bass Lake Room COUNCIL, Radisson Hotel 7;00 PM REGULAR COUNCIL MEETING, Council Chambers 28 29 30 31 Jun 2002 Aug 2002 7:00 PM YOUTH S M T W T F S S M T W T F S ADVISORY 1 1 2 3COUNCIL,Council Chambers 2 3 4 5 6 7 8 4 5 6 7 8 9 10 9 10 11 12 13 14 15 11 12 13 14 15 16 17 16 17 18 19 20 21 22 18 19 20 21 22 23 24 23 24 25 26 2T 28 29 25 26 27 28 29 30 31 30 modified on 511012002 r'.. OFFICIAL CITY MEETINGS August 2002 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 Ju12002 Sep 2002 S M T W T F S S M T W T F S 7.00 PM HUMAN RIGHTS 1 2 3 4 5 6 1 2 3 4 5 6 7 COMMISSION - 7 8 9 10 11 12 13 8 9 10 11 12 13 14 Medicine Lake 14 15 16 17 18 19 20 15 16 17 18 19 20 21 Room 21 22 23 24 25 26 27 22 23 24 25 26 27 28 28 29 30 31 29 30 4 5 6 7 8 9 10 7;00 PM 7:00 PM PRAC, PLANNING Council Chambers COMMISSION, Council Chambers 11 12 13 14 15 16 17 7:00 PM YOUTH 7:00 PM 7:00 PM EQC, 7:00 PM HRA - ADVISORY REGULAR Council Chambers Medicine Lake COUNCIL,Councll COUNCIL Room Chambers MEETING, Council Chambers 00 PM PUBLIC SAFETY ADVISORY Dept. BOARD, Police Library 18 19 20 21 22 23 24 7:00 PM PLANNING COMMISSION, Council Chambers 25 26 27 28 29 30. 31 7:00 PM YOUTH ADVISORY COUNCIL,Council 7:30 AM LOCAL BUSINESS COUNCIL, Radisson 700 PM PACT - Bass Lake Room Chambers Hotel 7:00 PM REGULAR COUNCIL MEETING, Council Chambers modified on 21712002