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CR 09-050 Approve the Sale of Pull Tabs by the Raspberry Festival at the Hopkins Area Jaycees' Dances During Raspberry FestivalK 1 11 6 :5 June 11, 2009 Council Report 2009 -050 Approve the Sale of Pull Tabs by the Raspberry Festival At the Hopkins Area Jaycees' Dances During Raspberry Festival Proposed Action Staff recommends adoption of the following motion: approve the sale of pull tabs by the Raspberry Festival at the Hopkins Area Jaycees' dances during Raspberry Festival. Overview The Raspberry Festival has requested permission to sell pull tabs at the Friday and Saturday night dances during Raspberry Festival. These sales would be off premises sales. Gambling Control allows this, but requires a letter of approval from the City. City Policy 4 -A, Gambling Policy, section 2.03 states that 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. M.S. 349.166 does not mention the sales of pull tabs. Because the policy would not allow off premises sales, Council approval is required for the Raspberry Festival to do so. Alternatives • Approve the sale • Deny the request • Continue for more information Supporting Documents Copy of letter from Raspberry Festival requesting approval for off premises sales Copy of Policy 4 -A, Lawful Gambling lNuAlm 1 " afflas = Terry Obermaier, City Clerk Financial Impact: $ NONE Budgeted: Y/N Source: Related Documents (CIP, ERP, etc.): Notes: June 2, 2009 Ms. Terry Obermaier Hopkins City Clerk With contributions down from many businesses this year, we need to find ways of generating income for us to provide a fun and memorable 75 Raspberry Festival Anniversary. We would like to do a two night off site pulltab event. The dates would be July 17 and 18 at the tent dance area for which we would be providing our own security and equipment. In compliance with Gambling Control Board (GCB), we need a letter of approval from the city. This does not effect our current premise permit, and no additional fees are due. I have already been in contact with GCB and they have informed me that a very common request and would approve it once we received your letter. Thank you for your attention to this matter, should you have any questions, please feel free to contact me at 952- 452 -2338. Sincerely Sue Normandin Gambling Manager 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 has its principal or registered office, street address and zip code within the City of Hopkins. 2.03 The organization defined in Section 2.02 must be engaged in its primary 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 members as defined in Minnesota Statute Chapter 349. 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 permit or license to conduct bingo 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 Only one organization, as defined in Section 2.02, may conduct gambling within a single owned, occupied or leased premise. 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 notice sent to the general membership announcing the meeting to authorize gambling activities, and 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 liquor 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 An investigation fee of $100.00 shall be charged to all organizations submitting a Premises Permit Application or Applications for approval by the City. 2.15 The City shall receive 10% of net profits from organizations conducting gambling in leased premises. Established 11/19/85 by Resolution 85 -3218 Revised 10/5/1993 Revised 4/19/94 Revised 12/16/97 Revised 8/19/2003 City of Hopkins Legislative Policy Manual -- Chapter 4 -A