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HomeMy WebLinkAboutCOW 2011-01-24 Item 3 - Public Hearing - Ordinance Repealing TMC Chapter 5.20 to Allow Social Card Rooms for 3-Year Period G o UNCIL AGENDA SiwosIs '4�+- Initials ITEM NO. s:4 Meeting Date Prepared by Mayer's review Council review I f- I 01/24/11 1 SK I I (0 a y I 02/07/11 1 SK 1 y 1 -29os I 1 1 1 4, 4 ITEM INFORMATION CAS NUMBER: 11-007 1 ORIGINAL AGENDA DATE: JANUARY 24, 2011 AGENDA ITEM Trrl,E Ordinance repealing ban on new social card rooms until January 1, 2014. C. \Ti ,G(>RY Discussion Motion Resolution Ordinance n Bid Award Public Hearing Other Aftg Date 01/24/11 Mtg Date Mtg Date Mtg Date 2/7/11 Mtg Date Mtg Date 1/24/11 Mtg Date SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police n PW SPONSOR'S This ordinance repeals the current ban on the establishment of new social card rooms and SUMMARY related "grandfather" provisions for existing social card rooms. Pursuant to the ordinance, the operation of social card rooms in the City must cease by January 1, 2014. The ordinance also amends TMC 3.08.080 to clarify certain gambling tax collection provisions. The Council is asked to consider and approve the ordinance. RI?V7I1 WI D Wx I I COW Mtg. CA &P Cmte I I F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. I I Parks Comm. Planning Comm. DATE: 01/10/11 RECOMMENDATIONS: SPONSOR /ADMIN. City Council COMMITTEE unanimous Approval; Forward to Committee of the Whole COST IMPACT/ FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0 $0 $0 Fund Source: Conzrnents: MTG. DATE .'RECORD OF COUNCIL ACTION 1/24/11 MTG. DATE ATTACHMENTS 01/24/11 Informational Memorandum dated 1/5/11 Ordinance in Draft Form Minutes from the Community Affairs and Parks Committee meeting of 01/10/11 1 2 1L y. 4) J ,,rr I City of Tukwila r I Jim Haggerton, Mayor 4 INFORMATIONAL MEMORANDUM TO: Mayor Haggerton City Councilmembers FROM: Shelley M. Kerslake, City Attorney DATE: January 5, 2010 SUBJECT: Allowing Social Card Rooms Related Gambling Tax Amendments ISSUE Whether to allow social card rooms city wide for a finite period of time. BACKGROUND Currently, the City has a partial ban on social card rooms. New social card rooms are banned, but existing social card rooms have been allowed to continue to operate (see TMC 5.20.010). Three social card rooms operate in Tukwila, and these generate significant gambling tax revenues for the City. A business owner seeking to start a new social card room in the City has called into question the City's ability to prohibit future card room uses while allowing legal non conforming social card games to remain. To allow time for further review of the legal, political, financial and practical considerations involved with this issue, a moratorium was established and has been extended twice (in May and September, 2010). After extensive study of the issue both publically and internally, it appears in the City's best interests to allow social card rooms for a finite term of three years. DISCUSSION The proposed ordinance eliminates the current partial ban on social card rooms by repealing TMC Chapter 5.20 "Certain Gambling Activities Prohibited This has the effect of allowing social card rooms city -wide, subject to a sunset clause in three years. The City Council may select a longer term for the sunset clause. Additionally, the proposed ordinance clarifies the penalty applicable to late gambling tax payments. RECOMMENDATION The Council is being asked to approve the proposed ordinance and consider this item at the January 24, 2011 Committee of the Whole meeting and subsequent February 7, 2011 Regular Meeting. ATTACHMENTS Draft Ordinance 3 4 DRA AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REPEALING ORDINANCE NO. 1917 §1, AS CODIFIED AT TUKWILA MUNICIPAL CODE CHAPTER 5.20, "CERTAIN GAMBLING ACTIVITIES PROHIBITED PROHIBITING SOCIAL CARD ROOMS CONDUCTED AS A COMMERCIAL STIMULANT EFFECTIVE JANUARY 1, 2014; AMENDING ORDINANCE NO. 1809 §1 (PART) AS CODIFIED AT TUKWILA MUNICIPAL CODE SECTION 3.08.080 "PAYMENT OF TAX PENALTY FOR LATE PAYMENTS TERMINATING THE MORATORIUM ESTABLISHED BY ORDINANCE NO. 2279 AND EXTENDED BY ORDINANCE NO. 2307; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE WHEREAS, on March 22, 2010, the Tukwila City Council passed Ordinance No. 2279, which declared an emergency necessitating the immediate imposition of a moratorium of limited duration on the filing of applications for building permits, development permits, or any other permits or approvals required for food or drink establishments seeking to conduct new social card room gambling activities, or to expand existing social card room gambling activities, whether as a principal use or as an accessory use, as more particularly described in Ordinance No. 2279; and WHEREAS, on May 3, 2010 and September 20, 2010, the moratorium was renewed to allow time for further study of the issue; and WHEREAS, the three existing social card rooms operating in Tukwila generate significant gambling tax revenues for the City; and WHEREAS, at least one business has expressed an interest in acquiring a State license to operate an additional social card room in Tukwila and this business venture has called into question the ability of the City to prohibit future card room uses while allowing legal non conforming social card rooms to remain; and WHEREAS, the prohibition on certain gambling activities, and exceptions thereto, set forth in Chapter 5.20 of the Tukwila Municipal Code, and Ordinance No. 1917 §1 shall be repealed to allow social card rooms citywide until December 31, 2013, after which social card rooms conducted as a commercial stimulant will thereafter be prohibited effective January 1, 2014; W: Word Processing \Ordinances \Social and Card Game Rooms SMK:mrh Page 1 of 3 5 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Chapter 5.20 TMC Repealed. Ordinance No. 1917, 1, as codified at Tukwila Municipal Code Chapter 5.20, "Certain Gambling Activities Prohibited," is hereby repealed in its entirety. Section 2. Prohibition Against Social Card Rooms Operated as a Commercial Stimulant. The operation or conduct of social card rooms operated as a commercial stimulant, as defined by RCW 9.46.0282, is prohibited within the City of Tukwila effective January 1, 2014, except bona fide charitable or nonprofit organizations may operate or conduct social card rooms within the City of Tukwila pursuant to RCW 9.46.0311. Section 3. Ordinance Amended. Ordinance No. 1809 §1 (part) as codified at Tukwila Municipal Code Section 3.08.080, "Payment of Tax Penalty for Late Payments," is hereby amended to read as follows: 3.08.080 Payment of Tax Penalty for Late Payments. A. The tax imposed by this chapter shall be due and payable in quarterly installments, and remittance therefor shall accompany each return and be made on or before the last day of the month following the quarterly period in which the tax accrued. B. There shall be added a penalty for each payment due, if such payment is not made by the due date thereof, as follows: 1. A lump sum penalty eaual to 10% penalty of the tax due, with a minimum of $2.00, for the first 17 days' delinquency; 2. A lump sum penalty eaual to 15% penalty of the tax due, with a minimum of $4.00, for e e e anv delinquency of 18 or more days. 2 .1 e e 'C J. e e e section. Section 4. Repeal of Moratorium. The moratorium established under Ordinance No. 2279 and extended by Ordinance No. 2307 shall terminate as of the effective date of this ordinance. Section 5. Repealer. Ordinance No. 1917 §1 is hereby repealed. Section 6. Severability. Should any section, paragraph, sentence, clause or phrase of this ordinance, or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reason, or should any portion of this ordinance be pre empted by state or federal law or regulation, such decision or pre emption shall not affect the validity of the remaining portions of this Ordinance or its application to other persons or circumstances. Section 7. Effective Date. This Ordinance shall be published in the official newspaper of the City, and shall take effect and be in full force five (5) days after the date of publication, and shall be retroactively applied to taxes payable for the first quarter of 2011. W: Word Processing \Ordinances \Social and Card Game Rooms SMK:mrh Page 2 of 3 6 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2011. ATTEST /AUTHENTICATED: Christy O'Flaherty, City Clerk Jim Haggerton, Mayor Filed with the City Clerk: APPROVED AS TO FORM BY: Passed by the City Council: Published: Effective Date: Shelley M. Kerslake, City Attorney Ordinance Number: W: Word Processing \Ordinances \Social and Card Game Rooms SMK:mrh Page 3 of 3 7 8 ,�J• Lam 4s. y City of Tukwila J Communit Affairs and Parks Committee _._290; COMMUNITY AFFAIRS AND PARKS COMMITTEE Meeting Minutes January 10, 2011 5:00 p.m.; Conference Room #3 PRESENT Councilmembers: Verna Seal, Chair; Joe Duffle and De'Sean Quinn Staff: Shawn Hunstock, Nora Gierloff, Evie Boykan, Shelley Kerslake and Kimberly Matej Guests: Lynda Hall, CSC; Tim Iszley, Riverside Casino; Bob Brennan, Riverside Casino; Gary Hess, Great American Casino; Christy Henry, Great American Casino; Jack Walker, Golden Nugget Casino; and Victor Mena, Washington Gold Casino CALL TO ORDER: Committee Chair Seal called the meeting to order at 4:57 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Ordinance: Prohibit Social Card Rooms (Reneal and Reenact TMC 5.20) Legislation was introduced seeking Council approval to repeal and reenact Tukwila Municipal Code Chapter 5.20 in order to prohibit social cards rooms that are conducted as a commercial stimulant within the City. Currently, TMC 5.20 allows for the legal non conforming use and operation of existing social cards rooms within the City of Tukwila; however, it also prohibits future card room uses. A business applicant has recently expressed concern over the City's ability to allow (grandfather) and prohibit such actions simultaneously. Currently, State law requires municipalities either allow or ban social card rooms. Based on further review of legal, political and financial issues as well as state law, which took place during a moratorium, it has been determined that it is in the best interest of the City to prohibit social card rooms after a finite period of time, during which social card rooms would be allowed. This ordinance is related to item B below, in that this first ordinance is the underlying legislation. Item B recommends that the underlying legislation (the ban) be repealed for a finite amount of time (three years), after which time the underlying ordinance goes back into effect. UNANIMOUS APPROVAL. FORWARD TO JANUARY 24 COW FOR DISCUSSION. B. Ordinance: Allow Social Cards Rooms for a 3 -Year Period (Reveal and Allow with Sunset TMC 5.20) Additional legislation seeks Council approval to repeal Tukwila Municipal Code Chapter 5.20 (as discussed above) in order to allow the operation of social cards rooms, City -wide, subject to a sunset clause of three years. UNANIMOUS APPROVAL. FORWARD TO JANUARY 24 COW FOR DISCUSSION. C. Human Services Contracts Staff is seeking full Council approval of six (6), two -year human services contracts for a variety of social services as outlined below. Contracts for human services programs last for a duration of two years, and are subject to regular review as identified in each specific contract set forth between that respective agency and the City. The six (6) contracts listed below are coming forward to Council for approval since each contract will total more than $40,000 over the two -year duration, and some of these contracts may be considered interlocal agreements, both of which require Council approval. 9 o �ti= City T ukw il a o Community Affairs and Parks Committee COMMUNITY AFFAIRS AND PARIS COMMITTEE Meeting Minutes January 10, 2011 5:00 p.ni.; Conference Room #3 PRESENT Councilmembers: Verna Seal, Chair; Joe Duffle and De' Sean Quinn Staff: Shawn Hunstock, Nora Gierloff, Evie Boykan, Shelley Kerslake and Kimberly Matej Guests: Lynda Hall, CSC; Tim Iszley, Riverside Casino; Bob Brennan, Riverside Casino; Gary Hess, Great American Casino; Christy Henry, Great American Casino; Jack Walker, Golden Nugget Casino; and Victor Mena, Washington Gold Casino CALL TO ORDER: Committee Chair Seal called the meeting to order at 4:57 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Ordinance: Prohibit Social Card Rooms (Repeal and Reenact TMC 5.201 Legislation was introduced seeking Council approval to repeal and reenact Tukwila Municipal Code Chapter 5.20 in order to prohibit social cards rooms that are conducted as a commercial stimulant within the City. Currently, TMC 5.20 allows for the legal non conforming use and operation of existing social cards rooms within the City of Tukwila; however, it also prohibits future card room uses. A business applicant has recently expressed concern over the City's ability to allow (grandfather) and prohibit such actions simultaneously. Currently, State law requires municipalities either allow or ban social card rooms. Based on further review of legal, political and financial issues as well as state law, which took place during a moratorium, it has been determined that it is in the best interest of the City to prohibit social card rooms after a finite period of time, during which social card rooms would be allowed. This ordinance is related to item B below, in that this first ordinance is the underlying legislation. Item B recommends that the underlying legislation (the ban) be repealed for a finite amount of time (three years), after which time the underlying ordinance goes back into effect. UNANIMOUS APPROVAL. FORWARD TO JANUARY 24 COW FOR DISCUSSION. B. Ordinance: Allow Social Cards Rooms for a 3 -Year Period (Repeal and Allow with Sunset TMC 5.201 Additional legislation seeks Council approval to repeal Tukwila Municipal Code Chapter 5.20 (as discussed above) in order to allow the operation of social cards rooms, City -wide, subject to a sunset clause of three years. UNANIMOUS APPROVAL. FORWARD TO JANUARY 24 COW FOR DISCUSSION. C. Human Services Contracts Staff is seeking full Council approval of six (6), two -year human services contracts for a variety of social services as outlined below. Contracts for human services programs last for a duration of two years, and are subject to regular review as identified in each specific contract set forth between that respective agency and the City. The six (6) contracts listed below are coming forward to Council for approval since each contract will total more than $40,000 over the two -year duration, and some of these contracts may be considered interlocal agreements, 1 0 both of which require Council approval.