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HomeMy WebLinkAbout1981-04-27 Committee of the Whole MinutesFLAG SALUTE AND CALL TO ORDER ROLL CALL OF COUNCIL MEMBERS REPORTS City Council OLD BUSINESS PUBLIC MEETING TUKWILA CITY COUNCIL Tukwila Elementary April 27, 1981 7:00 P.M. COMMITTEE OF THE WHOLE MEETING School MINUTES Council President Van Dusen led the Pledge of Allegiance and called the Tukwila City Council Committee of the Whole Meeting to order at 7:10 p.m. LIONEL C. BOHRER, MABEL J. HARRIS, GEORGE D. HILL, J. REID JOHANSON, DORIS E. PHELPS, DANIEL J. SAUL, Council President GARY L. VAN DUSEN. MOVED BY HARRIS, SECONDED BY SAUL, THAT THE ITEMS ON THE AGENDA UNDER NEW BUSINESS: (A) SURPLUS EQUIPMENT AT FOSTER GOLF COURSE; (B) CALL FOR BIDS, LID #30; (C) BID AWARD, TUKWILA COMMUNITY CENTER REMODELING; (D) EASTSIDE WATERSHED PROJECT BE ON THE AGENDA OF THE MAY 5, 1981 REGULAR COUNCIL MEETING. MOTION CARRIED. Approval of Minutes: MOVED BY HILL, SECONDED BY JOHANSON, THAT THE MINUTES OF THE April 13, 1981. COMMITTEE OF THE WHOLE MEETING HELD APRIL 13, 1981 BE APPROVED AS PUBLISHED. MOTION CARRIED. Prop. Gambling Ord. Police Chief Pat Lowery gave a report on gambling in Tukwila since it was permitted by local ordinance in 1975. Originally there were five establishments with card rooms, operating from 6 a.m. to 2 a.m. The maximum tables are 5, maximum capacity per table is 8 persons, charge per player is $1.00 per one -half hour. The Police Department checks for violations. A violation is charged against the individual and not against the establishment. It has been the habit to change ownership when a violation has been received. Chief Lowery showed with a wall chart the amount of revenue collected by the City since 1975. In 1977 the tax rate changed from 20% to 10 The revenue is used to supervise gambling activities and covers the salaries of two police officers, plus traffic control and other expenses involved. The card rooms are supposed to be a stimulant to the food and drink business and there is supposed to be a ratio between the gambling business and the food and drink business. The Police Department has not taken a stand on the subject of gambling, Chief Lowery stated. It is a decision that has to be made by the people and the City Council. He said his main concerns were over the exchange of licenses to operate which can be moved at will. A closer license review is necessary. He would also like to see a closer review of the daily operating reports. He would like to see a closer working relationship between the employees of the gambling establishments and the City. Ella Woyvodich said she was not one of the owners of the Riverside, but one of the managers. She said the figures that have been shown do not represent the Riverside properly. They did 12 million dollars of business and $278,000 was from the card room; $27,000 was from the pull tabs. Gambling is a commercial stimulant for the food and drink business. The Riverside paid over $33,000 in gambling taxes. Ms. Woyvodich said she had received information that the Police Department Budget was $903,000 and they had paid $72,000 in taxes which is 13% of the total police budget. The tax money has to be used for law enforcement. One violation they received was due to the fact that an employee had his name tag covered up. Ms. Woyvodich said she felt the entire subject of gambling had come up because of bad publicity in the newpapers. They had not known about it until they saw it in the newspapers and the TV media. They get the Hazelnut, a City publication, and the article in it on gambling had been written by some of the City Council members. TUKWILA CITY COUNCIL COMMITTEE OF THE WHOLE MEETING April 27, 1981 Page 2 PUBLIC MEETING Contd. Prop. Gambling Ord. contd. Joe Gasparovich, Edmonds, said he was former owner of the Golden Nuggett and wanted to speak about violations and the sale of his place. He had his place up for sale for 11 years and it took from October to March to ratify the sale. He did not put it up for sale on the spur of the moment because he received a viola- tion from the Police Department. The Police do an excellent job in enforcing the gambling laws. The Gambling Commission does an excellent job. He said his violations were not serious, it was for not having a picture attached to an employee's name tag. He had no violations regarding the running of the card room. There had been an error made by a bookkeeper in entering a figure once. The people who have bought the Golden Nuggett are good solid citizens. They did not sell to get out from under a suspension. Jack Sherin, Gambling Commission, said at the origin of the Gambling Act all gambling had a specific amount of tax applied against a particular type of gambling. The law said card rooms are taxed off the gross. The law says these monies must be used for law enforcement. The card rooms are well run in Tukwila. Don George said he lives 21 miles from Tukwila and he came to the meeting to see what was going on. To him it sounds like the Police Department does not think the card rooms are good. He said he is a card player. The State spends money to find things for the older citizens to do. The card room is an inexpensive social club. You pay very little for an evening's entertainment. It would be a shame to have it taken away. It seems reasonable that the Council should be asked to consider the fact that there are many senior citizens who feel the card rooms are a pleasure and it is a shame to ask them to drive distances in order to be able to play. Raymond Carewe, retired merchant seaman from Tacoma, said he is a card player and a writer. The card rooms in Tukwila are unique. The card players monitor their own games. People do not like to play where gambling is not licensed. Elanor McLester, audience, said she has lived in Tukwila for 15 years and it seems appropriate to be discussing gambling in Tukwila. Beginning in April and until October she will be inconvenienced as she shops and goes back and forth to her job because of Longacres. It is located in Renton, but the traffic and noise disturbance affects Tukwila and we have to control it, but we get no remumeration from it. We should be able to allow the small amount of gambling that goes on in the City. The revenue pays for 3 police officers in the City on an 8 hour, 5 day a week, basis. Joe Duffy, Tukwila, said he was against gambling. He said he did not mind gambling in Seattle, but it is not the image for Tukwila. This is not the place for gambling. Margaret Clifford, Terrace Apartments, Tukwila, said she frequently eats at the Riverside and the Golden Nuggett. She has never seen an officer come in there nor any reason for one to come in. If the police would like to control rowdiness, theft, etc., she suggested they patrol the neighborhoods. Council President Van Dusen said he had received a telephone call from Don Shannon and a copy of the phone message has been given to Council Members. In his telephone message he said he saw no benefits to be derived from gambling in the City. The petitions have been collected and entered into the record. Council President Van Dusen closed the Public Meeting at 8:00 p.m. Dennis Hidell, Council Analyst, said he had been assigned by the Council to report on legislation that has taken place during the 47th session. SB -3307 has passed both houses and has gone to the Governor for signature. This would permit a tax of 20% on the gross income from card rooms. TUKWILA CITY COUNCIL COMMITTEE OF THE WHOLE MEETING April 27, 1981 Page 3 PUBLIC MEETING Contd. Prop. Gambling Ord. contd. Jack Sherin said SB -3307 provides that a City cannot charge a tax greater than that charged in the County where the City is located. At present King County permits a 10% tax. 3 F:,Z Larry Hard, City Attorney, said the proposed ordinance would prohibit gambling in the City of Tukwila. Council President Van Dusen says there is another ordinance under consideration that basically amends the present ordinance that will provide for an annual review of gambling by the City Council; require quarterly reports to and a control procedure to the Police Department; provide for taxation on the excess proceeds for "Reno" nights. Councilman Saul asked if the Police Department has provided input into the new ordinance. Mr. Hard, City Attorney, said this proposed ordinance had just been drafted and has not been refined as to the exact language that will be used. Councilman Harris said she has not been to one of the card rooms but she has listened to the input in three or four meetings. She was elected to do the will of the people. She has heard only two people speak against gambling. The will of the people seems to be to leave the card rooms in the City. There may be need for new rules and regulations, but it appears that the input indicates we should retain gambling. The revenue from gambling takes care of two full time police officers. If gambling is eliminated the people who frequent the card rooms will go to another place just out of Tukwila and we would not receive any of the revenue, yet the Police Department would be called in to assist in case of trouble, and we would not have the extra police officers provided by the revenue money. Councilman Johanson agreed with Councilman Harris. MOVED BY BOHRER, SECONDED BY SAUL, THAT THE PROPOSED ORDINANCE PROHIBITING GAMBLING BE ON THE AGENDA OF THE REGULAR COUNCIL MEETING AT THE DISCRETION OF THE COUNCIL PRESIDENT. Councilman Bohrer asked how we determine the will of the people on this issue. He asked those people who are residents of the City to raise their hands. About one -third of the audience raised their hands. The City received some petitions that were collected by employees of the gambling establishments. They have not undergone scrutiny but he said he noticed one signature that was a duplication. The people who collected the petition signatures had a vested inter- est. He said he asked what was said when the petition signatures were collected and the gentleman said he had said that if the Council passes the ordinance prohibiting gambling he would be out of work. The question is what is the will of the people and how can it be determined. When the residents of the City elect the Council they expect them to do the will of the people. He said he had not yet heard how gambling benefits the average resident of the City. Jim Himmelwight asked if the two police officers paid for out of the gambling revenue do anything else other than check on gambling? Police Chief Lowery said they are assigned to general duty as well as gambling, others are also required as it is a 24 hour service. Stanley Magasich, employee of the Riverside, said the Police Chief had said that the amount of problems directly attributable to the card rooms is minimal. Bill Kelly, audience, said the City Hall paper goes out to about 5,000 people. Now the Council seems to be degrading the petitions. From this publicity only two people have said they object to gambling. TUKWILA CITY COUNCIL COMMITTEE OF THE WHOLE MEETING April 27, 1981 Page 4 PUBLIC MEETING Contd. Prop. Gambling Ord. contd. RECESS 8:55 9:00 P.M. Ben Woyvodich, Riverside Inn, said 132% of the 1980 budget was paid by gambling revenue. The gambling establishments pay 10% of their gross income from card rooms to the City. On the sales tax the City gets only 1/2 of 1 The Hazelnut, City Hall news- paper, went to all residents of the City, yet only two people have come forth to speak against gambling. Councilman Saul said he thought the reports to the Police Department and an annual review of gambling by the Council should be done. Councilman Bohrer said the gambling establishments do pay taxes and the City uses the revenue to enforce the gambling ordinance. He said he had been with officers who went out to enforce the ordinance and the money is used for enforcement. What is the benefit to the average resident from having gambling in the City? He did not know the answer. Councilman Bohrer said for some time the Police Department has conducted a survey of the establishments. As he sees it the law passed by the State has no teeth to enforce the law. Roger Grimmet, audience, said he lived about one mile from the gambling establishments. They do not bother him at all. He said he neither plays the card games norgambles but he believes in free enterprise. He said he thought Tukwila made a lot of tax money from free enterprise. All of the businesses claim to support free enterprise. He said he was in the taxi business and would lose money if the card rooms are closed down. He said gambling is as American as apple pie and ice cream. *ROLL CALL VOTE: BOHRER AND SAUL VOTING YES; HARRIS, JOHANSON, PHELPS, SAUL, VAN DUSEN VOTING NO. MOTION FAILED, FIVE TO TWO. MOVED BY SAUL, SECONDED BY PHELPS, THAT THE SUBSTITUTE ORDINANCE DRAFTED BY THE CITY ATTORNEY PROVIDING FOR REVIEW AND REPORTS TO THE COUNCIL AND POSSIBLE TAXATION ON EXCESS PROCEEDS FROM RENO NIGHTS BE ON THE AGENDA OF THE NEXT COMMITTEE OF THE WHOLE MEETING. Council President Van Dusen called for a five minute recess so the Council could examine the proposed ordinance. The City Council Committee of the Whole Meeting was called back to order by Council President Van Dusen, with Council Members present as previously listed. City Attorney Hard said the proposed ordinance provides for a periodic review of gambling by the Council; it provides that reports that are filed with the State or anyone be provided to the City; a provision so the Police Department can establish rules and regulations to go in and ask for data and monitor the activities. The present ordinance does allow the Police Chief to review records. He said he believed the City had the power to tax "Reno" nights on excess proceeds. He said he would get that information from the Assistant Attorney General. Council President Van Dusen said the City did not want to tax the first $5,000 on "Reno" nights, but the amount that is in excess of that figure. Shirley Gasparovich said the establishment charges $200 room rent for "Reno" nights and that is all. The Reno nights are conducted for boys and girls clubs, charitable institutions to raise money for events. The renter runs the event. The establishment sells liquor and food as a result of the crowd that is attracted to the even t. Jack Sherin said the City now has access to the quarterly reports that are made to the Gambling Commission. TUKWILA CITY COUNCIL COMMITTEE OF THE WHOLE MEETING April 27, 1981 Page 5 PUBLIC MEETING Contd. Prop. Gambling Ord. contd. ADJOURNMENT 9:40 P.M. Police Chief Lowery said he would like a copy of the daily tally from the gambling establishments. He said he would also like to have a report when any gambling establishment is going to be sold. He would like a copy of anything that is sent to the State. Councilman Bohrer said the City Attorney will report whether or not the City can tax "Reno" nights where the proceeds are in excess of $5,000. Mayor Todd suggested that an organization wishing to hold a "Reno" night be required to get a business license from the City for that one night, perhaps in the amount of $100, and then the City would be through with the event regardless of how much or how little they took in. Council President Van Dusen said the Council liked the idea of the business license fee for "Reno" nights. *MOTION CARRIED. MOVED BY PHELPS, SECONDED BY HILL, THAT THE TUKWILA CITY COUNCIL COMMITTEE OF THE WHOLE MEETING ADJOURN. MOTION CARRIED. Gary L'! Van'Dusen, CounciT`President Norma Booher, Recording Secretary