Memo-Lawful Gambling
Department of Administration
.
Memorandum
From:
Hopkins City Council
Jim Genellie
To:
Date:
Subject:
July 17,2003
Lawful Gambling
The City Council adopted a moratorium on new premises permits on April 1, 2003. The moratorium
was extended and is now set to expire on September 2.
The City Attorney was requested to review the current policy on gambling. Staff anticipates the
discussion on July 22 to cover clarifying the existing language in the lawful gambling policy as well
as examining other issues concerning lawful gambling in Hopkins.
City staff sent notices of the July 22 meeting to:
Organizations that currently have premises permits;
Owners of facilities that are leasing space for lawful gambling; and
The Hopkins Youth Hockey Association.
The following are the issues that arose during the discussion regarding the permit application from
the Hopkins Youth Hockey Association. A copy of the current City policy on Lawful Gambling,
Legislative Policy 4-A, is attached.
Four sections of the current policy seem to require clarification:
1. Section 2.02 - An applicant for a license shall be a registered Minnesota nonprofit
corporation or an organization which is designated as exempt from the payment of income
taxes by the Internal Revenue Code and whose principal location or office is within the City
of Hopkins.
The words "location" and "office" were interpreted by the City Attorney to be synonymous.
However, this language has been interpreted in other ways. The language should be clarified to
remove any ambiguity.
2. Section 2.03 - The organization defined in Section 2.02 must be engaged in its activities for
the benefit of the community within the City of Hopkins for at least five years on a
perpetual, continuous, uninterrupted basis and have at least 30 active voting members.
.
Several issues were raised regarding this section. First does the requirement that an organization be
engaged in its activities for at least five years also refer back to Section 2.02, that is, does it require
the organization to have an office in Hopkins for at least five years?
ILawful Gambling Policy Revision 3.doc
Department of Administration
. Secondly what is meant by "active voting members?" State law defines "Active Member" as:
Subd. 2. Active member. "Active member" means a member who has paid all dues to
the organization, who is 18 years of age or older, who has equal voting rights with all other
members, who has equal opportunity to be an elected officer, who has equal right and
responsibilities of attendance at the regularly scheduled meetings of the organization, whose
name and membership origination date appear with the member's knowledge and consent on
a list of members of the organization, and who has been a member of the organization for at
least six months.
Since Section 2.01 of Policy 4-A adopts state law, Minnesota Statute Chapter 349, City staffs
assumption has been that an "active voting member" in the Hopkins policy is the same as an "Active
Member" in the state statute. The language in this section could be clarified to state this.
3. Section 2.07 - More than one organization, as defined in Section 2.02, may conduct
gambling within a single owned, occupied or leased premise. More than one organization
may jointly conduct a lawful gambling game at one location. However, two or more
organizations shall not separately conduct the same game at the same time at one location.
This section has been interpreted to mean that two organizations may share one location if they
either
1) run different types of gambling games, e.g. one runs a paddlewheel and the other sells pull
tabs; or
2) both organizations conduct the same games, e.g. selling pull tabs, but they do it at
separate times.
This language has generated some confusion.
4. Section 2.10 - Organizations seeking approval for a premises permit, that are not currently
conducting gambling in the City, must provide the City, in addition to the application forms,
a copy of the minutes of a general membership meeting, where a quorum was present,
wherein the organization approved a motion authorizing the gambling activities.
What constitutes a quorum? Is it a quorum as defined in the organization's by-laws? Is it a quorum
of the total membership?
ILewful Gambling Policy Revision 3.doc
POLICY 4-A
LAWFUL GAMBLING
1. PURPOSE
1.01 The purpose of this policy is to establish rules and procedures for lawful gambling in the
City of Hopkins.
2. REGULATIONS
2.01 Except as otherwise enumerated herein, the provisions of Minnesota Statute Chapter
349 relating to the definition of terms, licensing and restrictions of gambling are
adopted and made a part of the statement of policy promulgated by the City of Hopkins
as if set out in full
2.02 An applicant for a license shall be a registered Minnesota nonprofit corporation or an
organization which is designated as exempt from the payment of income taxes by the
Internal Revenue Code and whose principal location or office is within the City of
Hopkins.
2.03 The organization defined in Section 2.02 must be engaged in its activities for the benefit
of the community within the City of Hopkins for at least five years on a perpetual,
continuous, uninterrupted basis and have at least 30 active voting members.
2.04 Gambling allowed by the city shall be carried on only within premises owned, occupied
or leased by the organization except such activities permissible under M.S. 349.166.
2.05 No application for a premises permit will be approved for any organization to conduct
gambling on any premises other than the premises of an on-sale liquor licensee or the
premises of a fraternal, veterans or other non-profit organization. In order for a fraternal,
veterans, or other non-profit organization to conduct gambling on their premises, such
premises must have been continuously owned and occupied for a period of at least five
years. No application for premises permit shall be approved for any organization for a
site established for the primary purpose of conducting gambling. This section shall not
apply to any organization which is exempt from the requirement for a gambling license
according to M.S. 349.166.
2.06 A Class A license will only be approved for an organization that is licensed pursuant to
Minnesota Statute, section 349.16, and that conducts gambling on premises that it owns
and operates.
2.07 More than one organization, as defined in Section 2.02, may conduct gambling within a
single owned, occupied or leased premise. More than one organization may jointly
conduct a lawful gambling game at one location. However, two or more organizations
. shall not separately conduct the same game at the same time at one location.
Legislative Policy Manual -- Chapter 4-A
.
.
.
2.08 The operation of gambling devices and the conduct of bingo and raffles licensed or
approved pursuant to the authority granted to the City of Hopkins shall be carried on
under the supervision of a gambling manager designated by the organization. The
gambling manager shall be responsible for the operation of the gambling activity and the
receipts and profits generated from the operation.
2.09 The gambling manager shall be an active member of the organization issued the license
and shall qualify under state law.
2.10 Organizations seeking approval for a premises permit, that are not currently conducting
gambling in the City, must provide the City, in addition to the application forms, a copy
of the minutes of a general membership meeting, where a quorum was present, wherein
the organization approved a motion authorizing the gambling activities.
2.11 Participants in raffles, paddlewheels, pull tabs and tip boards shall be restricted to
individuals who have attained the legal drinking age. This restriction only applies to
premises where liquor, wine, beer or 3.2 beer is served. Where intoxicating beverages
are not served the age shall be eighteen.
2.12 Organizations wishing to renew a gambling license must provide the City with a
financial audit of its lawful gambling activities and funds for the previous two years.
The audit(s) must be performed by an independent accountant licensed by the state of
Minnesota.
2.13 In addition, such organizations must provide the City with information on all
expenditures of lawful gambling funds during the previous two years. Such information
must include at a minimum the name of the recipient, the amount of the expenditure or
contribution, and a brief description of how the expenditure or contribution meets the
definition of "lawful purposes" as defined in M.S. 349.12. The City reserves the right to
require additional documentation from licensed organizations, or organizations seeking
licenses, as it deems necessary.
2.14 A fee of $100.00 shall be charged to all organizations submitting a Premises Permit
Application or Applications for approval by the City.
Established 11/19/85 by Resolution 85-3218
Revised 4/19/94
Revised 12/16/97
City of Hopkins
Legislative Policy Manual-- Chapter 4-A
2
.
PROPOSED PLAN FOR TESTING, REPAIRING AND/OR REPLACEMENT OF ONE
INCH AND LARGER WATER METERS
. Support for replacing and repairing
The utility billing department, in concert with the water department, has identified a problem
with aging water meters. Recently the city replaced some very old meters, (twenty or thirty
years old), and discovered an alarming difference in the amount of water that is being read
through the old meter compared to the new meter. The new meter is reading a substantially
larger amount of water usage through it. As explained to me, internal water meter parts wear
down as water continually flows through it and eventually does not read accurately the amount
of water being used.
.
As you know, the city has almost completed the process of changing all of the smaller
residential water meters to radio read water meters. This has occurred over the last three years
with much success. The next step is to change out the larger water meters, (1" and over) and
replace them with radio read water meters. These larger water meters are the oldest and
probably the least accurate in the city. The city requires larger water meters to be purchased
and owned by the customer. At the same time the city ordinance requires the owner to test the
water meters once every ten years or when the city deems it necessary to correct deficiencies.
The table below demonstrates one customers' consumption differences after replacing its old
water meter. Even the estimates were lower then actual consumption.
DATE READING TYPE CONSUMPTION # DAYS
4/16/2003 Actua 182,777 29
3/18/2003 Actua 242,414 33
2/13/2003 Actua 184,435 23
1/2112003 Actua 107,900 39
12/13/2002 New Meter 0 0
12/13/2002 Replacemen 0 0
10/21/2002 Estimatl 72,953 26
9/25/2002 Estimate 98,685 3:
8/21/2002 Estimate 92,435 33
7/19/2002 Estimate 77,385 28
6/2 I/2002 Actua 100 29
5/23/2002 Actua 500 31
4/22/2002 Actua 7,100 31
3/22/2002 Actua 105,000 29
2/2 I/2002 Actua 69,400 23
eo
. Proposed Solution
The finance and water departments would like to encourage customers with larger old water
meters to replace them with new radio read water meters as quickly as possible. However, we
recognize the burden of the cost of replacing these meters. To encourage customers to replace
their water meters and install radio read, we would like to offer a period of time where the city
will install and pay for the radio read device. This is a savings of at least $200 for each water
meter. The cost of the radio read device is anywhere from $175 to $500. The replacement of
the actual water meter will remain the responsibility of our customers. The cost of the water
meter replacement could be anywhere from $300 to $3,500.
.
Utility billing estimates that there are approximately 400 larger old water meters to be upgraded
to radio read. We also believe that the majority of the large old water meters can be replaced
with smaller more efficient water meters, which will help keep the costs down. The city could
spend $80,000 on radio read devices for the larger water meters. Although this is a substantial
amount of money, finance is confident that the city will receive a return on this investment over
a short period of time. For example, consider the customer demonstration above. The
customer was paying approximately $110 a month less then they should have been. Multiply
$110 by twelve to arrive at $1,300 a year, then by 400 customers to arrive at $520,000 a year.
This is an over simplification, but it demonstrates how quickly the cities investment return
could be.
. Time Frame
Because of the costs to our customers and the water departments' availability, we are
recommending that we start the process in January 2004. Prior to that a letter will go out in
September 2003, informing customers of the upcoming requirements for radio read capability,
(see attached letter #1). In addition, another letter will go out in January 2004, to notify
customers of their responsibilities to complete the requirements to enable the city to install the
radio read devices, (see attached letter #2). We are hopeful that customers will take advantage
of the cities proposal and replace their water meters during the specified time frame.
.
*Letter to request meter be tested along with required
Information sheet
<<Date>>
(<FirstName})
(<Address 1 )}
((Address2)>
<<City}} <<State>} (<PostaICode>)
Re: Meter Testing/Upgrade or Replacement
The City is in the process of installing a "radio read" meter reading system and
will be requiring all customers to either install meters that are radio read ready or
have meters that can be upgraded to radio read capability. New radio read water
meters may be purchased through the City of Hopkins. A meter cost sheet is
attached. If you purchase and install a new radio read water meter, the City will
provide and install the radio transponder, at a minimum of $200.00 savings to you. You may
also test and upgrade your current meter to ensure it is radio read compatible. The approximate
costs for testing and possible repairs are included on the bottom of the cost sheet.
.
Depending on the make, model, and age of your current water meter, you
may wish to compare the cost of testing & repairing your water meter versus
the cost of replacing your water meter. You may also wish to look into the
possibility of reducing the size of your water meter to help keep
replacement costs down. If you would like assistance determining whether
you can reduce the size of your water meter, contact our Utility Department
at 952-939-1373.
(Code 710.17) Subd. 7. Meters. All meters shall be an approved brand that is compatible
with the city's meter reading system and must measure by gallon units. The approval
of meters shall be made by the City Manager or his/her designee. No turbine meters
shall be installed, unless it has been approved by the utility superintendent pr an
approved designee. The owner shall pay for the meter in advance and shall ensure
that the meter and outside remote meter are accessible to city staff.
(Code 710.29) As per the City Code, maintenance of meters over 5/8" shall include:
certification testing once every ten years or when deemed necessary by the city's utility
billing department, necessary meter repairs to correct deficiencies, and submittal of test
results to the city's billing department demonstrating meter is accurate. Failure to test
and repair meters over 5/8" after 30 days written notice from the city shall be considered
an act of negligence and shall be subject to a fine of $100 per month including the 30 day
notice period. A person violating this subsection is guilty of a misdemeanor and the
. superintendent may disconnect the water supply to such meter.
.
This letter shall serve as written notification that the meter(s) listed below
is to be tested. Testing I repair and/or replacement of the meter(s) must
be performed by: (<Repdate>>.
Account: ((Account>>
Meter: ((Meter>>
Service Address: (<Servadd>>,
Transponder: (<Transponder>>
Please see that the attached form is given to your water meter repair
or replacement vendor for completion. This form is to be returned to
our office within 5 days of repair/service to your water meter. \
If you have any questions regarding your account(s), please feel free to
contact the Utility Dept. at 952-939-1373 or Billing Dept. at 952-935-8474,
ext. 332.
Michael G. Lauseng
Utility Superintendent
. Enc.
*** Preliminary Notice for Meter Testing/Upgrade*** Draft
.
Date
Company Name
Address
City State Zip
Re: Meter Upgrade/Testing
The City is in the process of installing a "radio read" meter reading system and will
be requiring all customers to install water meters that are "radio read" or have
current water meters upgraded to have radio read capability.
.
Water meters may be purchased through the City of Hopkins. Also, if you purchase
and install a new radio read compatible water meter, the City will install and pay for
the radio transponder, at a minimum of $200.00 savings to you. (Cost of water
meter and installation is the responsibility of the property owner)
In 2004, we will begin sending letters to customers requiring the testing or upgrading
of water meter(s). If the water meter does not meet the American Water Works
Association'standards, the water meter will need to be repaired or replaced as per
the Hopkins City Code. The upgrading and testing of water meters is being done in
an effort to confirm that the water meters are providing accurate water usages and
enabling the city to insta II radio transponders.
Depending on the make, model, and age of your current water meter, you may
wish to compare the cost of a new water meter versus testing and/or repair of
your existing water meter. You may also consider reducing the size of your
water meter to help keep replacement costs down. If you would like assistance
determining whether you can reduce the size of your water meter, contact our
Utility Department at 952-939-1373.
.
.
This . letter is being sent to you as a courtesy to allow you an adequate time frame to plan for future
expenses. We are providing a 2003 Badger meter and Badger meter parts cost list. Also included is a
listing with estimated fees for meter testing and repair, supplied by an independent meter repair
company.
If you have any questions regarding the information covered in this lette~, please feel free to
contact Michael Lauseng, Utility Superintendent at 952-939-1373.
Sincerely,
Michael G. Lauseng
Utility Superintendent
mgl/pjw
. Hopkins City Code
(Code 710.17) Subd. 7. Meters. All meters shall be an approved brand that is compatible
with the city's meter reading system and must measure by gallon units. The approval
of meters shall be made by the City Manager or hislher designee. No turbine meters
shall be installed, unless it has been approved by the utility superintendent or an
approved designee. The owner shall pay for the meter in advance and shall ensure
that the meter and outside remote meter are accessible to city staff.
(Code 710.29) As per the City Code, maintenance of meters over 5/8" shall include:
certification testing once every ten years or when deemed necessary by the city's utility
billing department, necessary meter repairs to correct deficiencies, and submittal of test
results to the city's billing department demonstrating meter is accurate. Failure to test
and repair meters over 5/8" after 30 days written notice from the city shall be considered
an act of negligence and shall be subject to a fine of $100 per month including the 30 day
notice period. A person violating this subsection is guilty of a misdemeanor and the
superintendent may disconnect the water supply to such meter.
RE: 2003 Badger Water Meters wI TRACE Prices
The following are prices for 2003 Badger water meters. All meters are read in
gallons, and all meters are priced less connections.
Labor charges for water meter testing:
1" - 2"
3" - 4"
185.00
275.00
Remove, test and reinstall.
Test on site.
.
If repair is necessary, an additional labor charge will be charged:
I" - 2"
3" - 4"
50.00
100.00
,.
Repair parts are in addition. Cost of these parts is impossible to predict. If
costs run higher than 60% of a new meter, a quote is always given to the
customer before repair.
Price includes providing TestJData Report to the City and to tbe customer.
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