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. . . . , . Regular Council Meeting, June 8, 1987 . Minutes of the Page 3 PROPOSED ORD.; CHARIT. GAMBL. Council was referred to the proposed ordinance regulating lawful gambling; as drafted by the Village Attorney. Lynden reviewed the new State legislation which defined the percentage of net proceeds to be given to the City and the fees to be charged by the City for investigations; not more than 10% of the net proceeds can be given to the City and the fee charged for investigations is limited to $100.00. The Attorney advised the Clerk Administrator sugge.ted referencing the investigation fee by Council resolution, limiting the fee to $100 at this time, but providing an easier approach for increasing the fee in the event it can be increased. Lynden also reviewed an item from the League of Minnesota Cities relative to Cities imposing a local gambling tax on each licensed organization if the tax proceeds are necessary to cover the costs of regulation of gambling; he noted , the tax may not exceed three percent of the gross receipts of the organization, minus prize costs. The tax is in lieu of all other local taxes and local investigations fees and must be reported annually. Lynden stated this may not be cost effective administratively; he has not had the opportunity to review the reporting process and what is involved. Councilmember Hansen questioned: Section 6, EliRibilitv for License - Are requirements stringent/specific enough; Section 11, Sites for Issuance of Licenses - Does this section effectively eliminate Bingo Hall, since it is not specifically addressed. Section 13, Number of Licen.e. in the City - Can pha.e out proce.. be completed in a shorter time span. In response to the questions, the Attorney stated that Section 6 requirements are, in his opinion, rigorous; Section 11, he was unsure of terminology to describe the facility so he used "auditorium"; suggested adding "public hall" to the list of facilities. There was discussion relative to the number of licenses versus the number of bingo occasions which can be held. Lynden advised that Section 15 addresses this matter and that Arden Hills ordinance can be more stringent that State Law. Council also discussed Section 19, age limit, whether or not children under the age of 18 should be allowed to play Bingo: Councilmember Hansen expressed her opinion that children under 18 years of age should not be allowed to play; Winiecki stated that there may be occasions where going to play bingo would be a family activity. Council discussed whether or not Churches could request Bingo permits for a one time occasion. Lynden advised the ordinance could provide for one time, special events; he noted the Church group would still have to apply for the State license even for one time occasions. There was discussion relative to establishments where lawful gambling is allowed. The Attorney advised it is outlined in this draft ordinance and may be changed by the Council at their discretion. Councilman Sather stated it is his opinion that trying to enact an ordinance regulating lawful gambling at this time, after approval of the Bingo Hall has been granted, is poor policy. He asked for the Attorney's opinion relative to legal exposure of the City and outlined his reasons for concern. Lynden commented that he would need to further research the matter of legal exposure before an opinion could be given, in light of the costs incurred by the Bingo Hall. Council discussed the new legislation relative to lawful gambling, the phase out process, referring this matter to a sub-committee for study, discussing the Council concerns with the owners of the bingo facility and setting criteria for review of gambling licenses. Councilmember Hansen advised that an Attorney General's opinion would be forthcoming regarding the Little Canada Bingo operation; she stated it may be prudent to review that opinion and also the minutes of the Little Canada Council meetings relative to this matter.