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Regular City Council Meeting Monday,January 30,2017 Page 12 City Attorney Gaughan were asked to include staff recommendations for a ad- ministrative penalty administrative penalty as similar to liquor license violations. b. Consider Amending City Code, Chapter 304: Lawful Gambling Finance Director Chris Miller referenced the staff report detail and revised Chap- ter 304 (Lawful Gambling) outlined in Attachment, based on previous discussions on this issue. As previously noted by Mayor Roe to Mr. Miller, lines 100-101 of the draft were corrected to delete "bingo hall license "references as well as they had been updated in other areas of the ordinance. While staff recommendation was for deletion of Section H (Employment of Certi- fied Public Accountants), since this was a requirement for this type of organiza- tion, Finance Director Miller advised its inclusion or omission could still be at the discretion of the City Council. Section 304.04.B,page 5 lines 145-148 (Contributions) Specific to the trade area, Finance Director Miller noted requirements per State Statute related to defining a trade area, and revised language identifying that trade area for expenditure of gambling profits in and around Roseville. As defined in Statute, Mr. Miller advised that the surrounding cities or townships had to be con- tiguous to Roseville, and those ten were listed in Section B accordingly. Finance Director Miller also noted staff's recommendation to strike redundancy in Section B as noted. Specific to the percentage of remaining net profits, currently at 3%, Finance Di- rector suggested leaving out reference to an exact percentage, leaving it at "up to 3%," subject to annual review. Mr. Miller suggested this could then be addressed annually on the fee schedule review to ensure that the city's administrative costs were being covered. At the request of Mayor Roe, Finance Director Miller and City Attorney Gaughan confirmed that the city could require 100% of the profits be spent within that trade area. Mr. Miller also confirmed that the current draft of the ordinance continued with two versus the previously requested three locations at this point. Councilmember Willmus asked if the city was bound by State Statute or had the option to guide contributions toward youth athletics specifically. City Attorney Gaughan advised that State Statute didn't reference such a re- striction and the city had the authority to adopt more stringent regulations than outlined in state law. While Mr. Gaughan opined that the city could probably ref- erence particular youth recreational activities, he wasn't going to advise that it would never be subjected to a legal challenge, but since it wasn't specifically ad- dressed in state law, he thought the city should have that authority to stipulate where the contributions went.