KENMORE CITY COUNCIL

Study Session Agenda Monday, May 17,1999 New City Hall 6700 N. E. 181"' Street Kenmore, WA 98028

1. Call to Order, 7:00 p.m. - Mayor Crawford

11. Discussion: A. Swamp Creek Study Update - Dick Warren, Kato & Warren B. Incorporation Celebration Committee Report - Tom Traeger C. Planning Commission Membership Appointment Process - City Manager

ID. Reports:

A. Tax Staff Report - City Manager B. April Financial Report - City Manager

IV. City Council Initiatives

MEETING SCHEDULE: May 24: 7:00 p.m. City Council Meeting Northshore Utility May 31: Memorial Day City Hall Closed June 7: 7:00 p.m. Study Session New City Hall June 9: 6:00 p.m. SCA DinnerIMeeting June 14: 7:00 p.m. City Council Meeting Northshore Utility June 21: 7:00 p.m. Study Session New City Hall June 22-25 AWC Annual Conference Wenatchee June 28: 7:00 p.m. City Council Meeting Northshore Utility The Citva of Kenmore b May 13,1999 Clr/ MANAGER

TO: City Councilmembers & FROM: Steve Anderson, City Manager

RE: Card Room Moratorium

When you adopted Ordinance 99-0062, an ordinance irrlposing a six-month moratorium on card rooms in Kenmore, you requested staff prepare information on gambling in Kenmore. You intended to use this information as one piece of information to assist you in developing a comprehensive policy on gambling in our community. We are including the topic on your May 17'~study session so you will have the opportunity to discuss the information prior to the public hearing on the moratorium scheduled for your Council Meeting on May 24th. Attached to this memo for your information and review are copies of:

1) Incorporation Feasibility Study report on anticipated gambling tax revenues; 2) Ordinance #98-0013 and Ordinance #98-0049, ordinances related to the imposition and collection of gambling taxes in Kenmore; 3) Ordinance 99-0062, the ordinance irrlposing the six- month moratorium on card game gambling activities; 4) Revenue summary information from the collection of gambling tax revenues, by category, for 1998 and year- to-date 1999; 5) Memo from Chief Sether on the secondary effects of gambling; and 6) The May 10, 1999 fi article on the potential of the State imposing a moratorium on mini- .

As you know, the gambling tax rates you adopted in Ordinance 98-0013 are at the same level King County irr~posedprior to incorporation. The 1999 Session of the State Legislature adopted new legislation that reduces the tax rate on bingo operations to 5% from 10% of net proceeds. The effect of this new legislation will be a reduction in our 2000 revenues from bingo operations of approximately $38,000, assuming the activity level for bingo remains the same versus the first two quarters revenue in 1999. You have the authority to impose up to a 20% tax rate on card rooms as compared to the current 11% tax rate. The arrticipated revenues for 1999 from the II % tax rate on card games are $142,500; a 20% tax rate would result in approximately $259,000 annualized for 1999, a potential increase of $1 16,500.

The policy issues you are addressing on gambling in Kenmore will also be considered during the development of our comprehensive plan, which could be included the land use, transportation, economic development andlor human services elements. We will work with the consultant team to ensure this area will be included.

The city attorney has advised you previously that there are two alternatives concerning card roomslmini-casinos. One alternative is an outright ban of the activity and the other is to allow them; we do not have the authority to limit their number. The gambling issue also includes land use regulations regarding siting of card roomlmini- establishments and who has authority - the State or the City. The city attorney will be available for discussion at the study session.

I trust the enclosed information is what you expected to receive to assist you in the decision process. If you believe additional information would be beneficial, please do not hesitate to contact me prior to the study session. Thanks. Projected Criminal Justice Sales Tax Revenue

CJ Sales Tax Revenue $315,754 $329,793

Gambling Taxes

Certain gambling activities that are regulated by the Washington State Gambling Commission can have various gambling taxes imposed on them by the local jurisdiction. The statutory maximum levies depend upon the gaming activity, but in each case the tax is based upon the gross collection. The County imposes gambling taxes, so we are assuming the new city will levy the same amounts for the same activities.

Maximum and Current Gambling Levies

Much of the pertinent data about registered gambling establishments is public record and is obtainable from the Gambling Commission. Through it, we were able to idenhfy six gambling establishments in Kenmore and their gross receipts from each type of activity they offer.

Analysis of the Feasibility of the Proposed City of Kenmore, Washington Phillip K. Kushlan and Associates, Bellevue, WA 35 Gross Gambling Receipts from Gambling Establishments in Kenmore July 1, 1995 through June 30, 1996

For gambling taxes derived from bingo activities, the law restricts the amounts that can be taxed only to the amount remaining from gross receipts less prizes paid; and provided further that the taxable base is not greater than ten percent of gross collections. For punch board/pull tab activities, the taxable base cannot exceed five percent of gross revenues, and for card games the taxable base cannot exceed twenty percent of the gross.

Based upon the Gambling Commission's publication entitled "Licensed Operator's Activity: For the Year Ended June 30,1996," we are assuming a two percent per year decrease in all gambling activity to the steady state year. Recent articles in national magazines such as Furh also project a decline in gaming activity nationwide. We do not foresee this revenue being impacted by the Lakepointe development since no establishment there is anticipated to provide gambling.

Therefore, if Kenmore adopted the same gambling levies as King County, we project the following annual revenue to the city:

Projected Gambling Tax Revenue

Gambling tax revenue can be used for any municipal purpose, provided that adequate enforcement of the gambling laws are undertaken by the City. We assumed the entire amount to be directed to the General Fund. Imposition of a

Analysis of the Feasibility of the Proposed City of Kenmore, Washington Phillip K. Kushlan and Associates, Bellevue, WA 86 gambling tax to the same levies as King County's would be a substitute and not a new tax.

Real Estate Excise Taxes

currently imposes Real Estate Excise Taxes ply to the full of all real estate sales within areas. Upon the City would be entitled to /" Excise Tax is divided into two portions khich in total adds up For cities over 5,000 in population tha ust plan under the State (GMA) -which would bp4 the case for Kenmore -the ust be used for capital facilitiF needs identified in the city's second 0.25 percgt, which also is available for ties that plan eder GMA, similarly must be used for capital purpose f not for the acquisition of park land. In both cases, the use of the procgehs are listed in the applicable statutes. / No resource is available nable an easy-to-obtain total of real estate sales that are boundaries of the proposed new city. Therefore, we looked Bothell and Lake Forest Park to obtain their tate Excise Tax, confirmed that they are ade a comparison to Kenmore based gy, admittedly imprecise, resulted in estimated 1996 a Kenmore of about $54 million. This 1 Estate Excise Tax.

Revenues from year-to-year. Therefore, they should be expenditures and nof pledged to

ty Excise Tax Division sho notified early after r even prior to the City's o,fficia rporation date - and of the ordinance sent to it by the City tuate collections and . Were the ordinance establishing the become effective and the County properly notified, it mi ossible for the o distribute the City's first Real Estate n on or about

Analysis of the Feasibility of the Proposed City of Kenmore, Washington Phillip K. Kushlan and Associates, Bellevue, WA ORDINANCE NO.Y&~)/~ AN ORDINANCE OF THE CITY OF KENMORE, WASHINGTON, PROVIDING FOR THE TAXATION OF CERTAIN GAMBLING ACTIVITIES, PROVIDING PENALTIES FOR VIOLATION THEREOF AND ESTABLISHING AN EFFECTIVE DATE.

WHEREAS, RCW 9.46.110 empowers cities to provide for the taxing of any gambling activities within its jurisdictions; and

WHEREAS, the City Council of the City of Kenrnore finds that it is in the best interest of the City to impose a gambling tax on certain gambling activities, now, therefore,

THE CITY COUNCIL OF THE CITY OF KENMORE, WASHINGTON,

HEREBY ORDAINS AS FOLLOWS:

Section 1. Definitions. For the purposes of this Ordinance, the terms used herein shall have the meanings provided in Chapter 9.46 RCW, as the same now exists or may hereafter be amended, and as further provided by the rules and regulations of the Washington

State Gambling Commission, as set forth in Chapter 230 of the Washington Administrative Code as the same now exists or may hereafter be amended, unless otherwise specifically provided herein.

Section 2. Imposition of Tax. Pursuant to RCW 9.46.110 as the same now exists or may hereafter be amended, there is levied upon all persons, associations or organizations conducting or operating in the City any of the activities listed below a tax to be paid to the City, in the amount hereinafter specified:

A. Bingo and raffles: A tax in the amount equal to ten percent (10%) of the gross receipts from a bingo game or raffle, less the amount awarded as cash or merchandise prizes.

B. Punchboards and pulltabs

(la) Commercial stimulant operators shall pay a tax in an amount equal to five percent (5%) of the gross receipts from the operation of punchboards and pulltabs;

(2) Bona fide charitable or nonprofit organizations shall pay a tax in an amount equal to ten percent (10%) of the gross receipts from the operation of the games, less the amount awarded as prizes or merchandise.

C. Social card playing: Operators shall pay a tax equal to eleven percent (1 1%) of the gross receipts from such games.

D. Amusement games which are authorized for operation pursuant to the provisions of the Washington Administrative Code shall be subject to the levy of a tax in the amount of two percent (2%) of the gross receipts from the amusement game, less the amount awarded as prizes. Such tax is for the purpose of providing for the City's actual costs of enforcement of the laws of the State of Washington and the City's ordinances.

Section 3. Exemutions - Charitable and Nonprofit Organizations.

A. Bingo and amusement games conducted by a bona fide charitable or nonprofit organization shall be exempt from the tax imposed by Section 2, when such organization has no paid operating or management personnel, and its gross receipts from bingo or amusement games, or a combination thereof, does not exceed $5,000 per year, less the amount awarded as cash or merchandise.

B. No tax may be imposed on the first $10,000 of gross receipts, less the amount awarded as cash or merchandise prizes, from raffles conducted by any bona fide charitable or nonprofit organization.

Section 4. Pavment of Tax. The tax imposed by this Ordinance shall be due and payable in quarterly installments, and remitted to the City's Finance Director, together with the required information on the return form(s), as prescribed by the Finance Director, on or before the 15th day of month next succeeding the quarterly period in which the tax accrued. Any tax remaining unpaid on the 16th day of the month next succeeding the quarterly period in which the tax accrued shall be delinquent, PROVIDED HOWEVER:

A. Whenever an entity subject to the tax imposed by this Ordinance ceases the taxable activity for a period of more than two consecutive calendar months the tax shall become due and payable on the 10th calendar day following the last date of business.

B. Whenever the Finance Director, upon the concurrence of the City Administrator, determines based upon a history of delinquent payment or an assignment for the benefit of creditors, or such other evidence that the City's ability to collect the tax owing from the taxpayer may be in jeopardy, the Finance Director, after not less than ten days written notice to the taxpayer, may require the taxpayer to remit taxes owing hereunder at a shorter interval than required herein. Notice shall be given by regular and certified mail. In the event that the certified mail is refused by the taxpayer and returned to the City, notice shall be deemed effective upon the date of mailing of the notice by regular mail.

Section 5. Administration of Collection. The Finance Director is hereby authorized to create a gambling tax return form which shall be available to the public in reasonable numbers in the Finance Director's office during regular business hours. Taxes paid hereunder shall be accompanied by the gambling tax return form and a copy of the taxpayer's quarterly report to the Washington State Gambling Commission for the period in which the tax has accrued. The taxpayer shall be required to swear and affirm under penalty of perjury under the laws of the State of Washington that the information given in the return is true, accurate and complete.

The Finance Director is authorized, but not required, to mail to taxpayers gambling tax return forms for remitting the tax owing hereunder. Failure of the taxpayer to receive such a form shall not excuse timely payment of all taxes due and owing hereunder.

Section 6. Delinquent Taxes--Lien Authorized--Collection Actions. Whenever any tax imposed hereunder shall become delinquent, the Finance Director is authorized to file a lien upon the personal and real property used in the gambling activity taxable by this

Ordinance in the same manner as provided for under RCW 84.60.010, as the same now exists or may hereafter be amended. Pursuant to RCW 9.46.110 as the same now exists or may hereafter be amended, the lien shall attach on the date the tax becomes due and shall relate back and have priority against real and personal property to the same extent as ad valorem taxes. The

Finance Director is further authorized to bring a civil action to collect fees, interest, penalties and delinquent taxes owing hereunder pursuant to RCW 9.46.350, as the same now exists or may hereafter be amended.

Section 7. Late Penalty - Interest.

A. If payment of any tax imposed hereunder becomes delinquent, there shall be added to said tax a late penalty in an amount as may be established from time to time by resolution of the City Council.

B. In addition to an assessment of late penalties, any quarterly tax payment not paid by the due date shall bear interest at twelve percent (12%) per annum or the maximum legal rate, whichever is greater. Section 8. Notice of Intention to Engage in Gambling. Activitv -- Filinp with City.

For the purposes of identifying those subject to the taxes imposed by this Ordinance, each person, association or organization intending to conduct or operate any gambling activity which requires a license pursuant to Chapter 9.46 RCW as the same exists or may hereafter be amended, shall no later than five days prior to the commencement of any such gambling activity, file with the Finance Director a sworn declaration of intent to conduct or operate such activity on a form to be prescribed by the Finance Director, together with a copy of any license issued for that gambling activity by the Washington State Gambling Commission or its designee.

Section 9. Inspection and Audit of Premises. Paraphernalia, Books and Records.

A. The premises and paraphernalia, and all the books and records of any person, association or organization conducting gambling activities pursuant to Chapter 9.46 RCW as now existing or hereafter amended, and any person, association or organization receiving profits therefrom or having any interest therein shall be subject to inspection and audit at any reasonable time, with or without notice, upon demand, by the Finance Director, or his or her designee for the purpose of determining compliance or noncompliance with the provisions of this ordinance, Chapter 9.46 RCW, and any rules or regulations adopted thereunder. A reasonable time for the purpose of this section shall be (1) if the items or records to be inspected or audited are located anywhere upon a premises, any portion of which is regularly open to the public or members and guests, then at any time when the premises are so open, or which they are usually open; or (2) if the items or records to be inspected or audited are not located upon the premises set out in subsection (1) above, then at any time between the hours of 8:00 a.m. and 9:00 p.m., Monday through Friday.

B. Each person, organization or association engaging in any gambling activity taxable under this Ordinance shall maintain records respecting that activity which truly, completely and accurately disclose all information necessary for the City to determine the taxpayer's tax liability hereunder during each base tax period. Such records shall be kept and maintained for a period of not less than five (5) years.

C. It shall be the responsibility of each individual taxpayer, and for organizations, associations, or corporations, the responsibility of each owner, officer, director or manager thereof, to make available at the times set forth above such financial records and information as the Finance Director or his or her designee may require in order to determine full compliance with this Ordinance.

Section 10. Penalties.

A. Whoever, in any application for a license or in any book or record required to be maintained by this Ordinance or by the Washington State Gambling Commission or in any report required to be submitted to said Commission or to the City hereunder, shall make any false or misleading statement, or make any false or misleading entry or willfully fail to maintain or make any entry required to be maintained or made, or who willfully refuses to produce for inspection by the Finance Director or his or her designee, any book, record or document required to be maintained or made by Federal or State law, or this Ordinance, shall be guilty of a gross misdemeanor subject to the penalties set forth in RCW 9A.20.021, as now existing or hereafter amended.

B. RCW 9.46.185,9.46.190 and 9.45.195, as now existing or hereafter amended, are hereby adopted by this reference as if set forth fully herein.

C. In addition to any other penalty authorized by this Ordinance, any person, association or organization violating any provision of this chapter may be subject to loss of its business license.

Section 11. A copy of Chapter 9.46 RCW and Chapter 230 WAC, as existing at the date of this ordinance, are attached hereto as Exhibit A.

Section 12. Severabilitv. If any section, sentence, clause or phrase of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this ordinance.

Section 13. Effective Date. This ordinance or a summary thereof consisting of the title shall be published in the official newspaper of the City, and shall take effect and be in full force on August 3 1, 1998.

PASSED by the City Council of the City of Kenmore this k@day of

APPROVED: A

'-,., ,' INTERIM CITY CLERK, RUTH MULLER

APPROVED AS TO FORM: INTERIM CITY ATTORNEY:

PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. CITY OF KENMORE WASH I NGTON ORoINANCE NO. 9 8 - 0dfl

AN ORDINANCE OF THE CITY OF KENMORE, WASHINGTON, AMENDING ORDINANCE NO. 98-0013 RELATING TO THE TAXATION OF CERTAIN GAMBLING ACTIVITIES, PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN EFFECTIVE DATE

WHEREAS, the City Council of the City of Kenmore desires to amend Ordinance No. 98-0013 to allow for the payment of quarterly gambling liability taxes on the last day of the month succeeding the quarterly period in which the tax accrued; and

WHEREAS, the City Council desires to amend Ordinance No. 98-0013 to allow establishments owing $500.00 or less in any one quarter to make such payment with their next succeeding quarterly payment; and

WHEREAS, the City Council desires to repeal Section 7 of Ordinance No. 98-0013 and create a new penalty section;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENMORE, WASHINGTON, DO ORDAIN AS FOLLOWS:

Section 1. Payment of Tax. Section 4 of Kenmore Ordinance No. 98-0013 is hereby amended to read as follows:

A. The tax imposed by this Ordinance shall be due and payable in quarterly installments, and remitted to the City's Clerk Treasurer, together with the required information on the return form(s), as prescribed by the Clerk Treasurer, on or before the last day of the month next succeeding the quarterly period in which the tax accrued.

B. If the tax imposed by this Ordinance equals $500.00 or less in any quarterly period, then any such installment may be combined and paid with the next succeeding quarterly installment; provided, however, that no taxpayer shall fail to make payment for more than two consecutive calendar quarters.

Payments made according to this subsection shall be remitted to the City's Clerk Treasurer, together with the required information on the return form(s), as prescribed by the Clerk Treasurer, on or before the last day of the month next succeeding the quarterly period in which the tax accrued. C. Any tax remaining unpaid on the first day of the second month next succeeding the quarterly period in which the tax accrued shall be delinquent, provided, however;

1. Whenever an entity subject to the tax imposed by this Ordinance ceases the taxable activity for a period of more than two consecutive calendar months the tax shall become due and payable on the tenth calendar day of the next succeeding calendar month.

2. Whenever the Clerk Treasurer, upon the concurrence of the City Manager, determines that the City's ability to collect the tax owing from the taxpayer may be in jeopardy, based upon a history of delinquent payment, an assignment for the benefit of creditors, or other reasonable evidence, the Clerk Treasurer, after not less than ten days written notice to the taxpayer, may require the taxpayer to remit taxes owing hereunder at a shorter interval than required herein. Notice shall be given by regular and certified mail. In the event that the certified mail is refused by the taxpayer and returned to the City, notice shall be deemed effective upon the date of mailing of the notice by regular mail.

Section 3. Late Penalty - Interest.

A. A penalty equivalent to twenty-five percent (25%) of the tax imposed by this Ordinance shall be added to said tax in the event of a late filed gambling tax return form, or late payment of taxes.

B. In addition to an assessment of late penalties, any quarterly tax payment not paid by the due date shall bear interest at the greater of twelve percent (12%) per annum or the maximum legal rate.

Section 4. Repealer. Section 7 of Kenrnore Ordinance No. 98-0013 is hereby repealed.

Section 5. Severabilitv. 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 6. 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.

ADJPTED BY THE CITY COUNCIL AT A REGULAR MEETING THEREOF ON THE > DAY OF DECEMBER, 1998. CITY OF KENMORE

ATTESTIAUTHENTICATED: /'----\

Ruth Muller, City Clerk

Approved as to form:

Michael R. Kenyon, 7it 4 Attorney

Filed with the City Cler%!2 : , )qqf Passed by the City Council: X.'z: *?, I%'[ Ordinance No. 3'- o( ./ 7 c;l c;- Date of Publication: LC,,/r, 1 / CITY OF KENMORE WASHINGTON ORDINANCE NO. 99-0062

AN ORDINANCE OF THE CITY OF KENMORE, WASHINGTON, ESTABLISHING A MORATORIUM ON THE FILING OF APPLICATIONS FOR DEVELOPMENT PERMITS FOR FOOD OR DRINK ESTABLISHMENTS CONDUCTING SOCIAL CARD GAME GAMBLING ACTNITIES; DECLARING AN EMERGENCY; ESTABLISHING AN EFFECTIVE DATE; AND PROVIDING FOR SEVERABILITY

WHEREAS, the newly incorporated City of Kenmore has just begun the process leading to the adoption of a Comprehensive Plan in compliance with the Growth Management Act; and

WHEREAS, gambling activities are not adequately addressed in the City=s interim Comprehensive Plan, interim Zoning Code, or other interim development regulations; and

WHEREAS, the City of Kenmore desires to ensure that the location of such uses is fully and completely analyzed in conjunction with the development of the Comprehensive Plan and development regulations required under the Growth Management Act; and

WHEREAS, the City of Kenmore also wishes to ensure public input on these issues; and

WHEREAS, the City desires to preserve the status quo for a period of time to study such uses and address the same; and

WHEREAS, the City desires to preserve the status quo during its time of study by establishing a moratorium on the filing of applications for building and other permits for food or drink establishments desiring to conduct social card game gambling activities, whether as a principal use or as an accessory use, or desiring to expand their existing social card game gambling activities, whether as a principal or an accessory use;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENMORE, WASHINGTON, DO ORDAIN AS FOLLOWS:

Section 1. Findings of Fact. The "WHEREAS" clauses, above, are hereby adopted as the City ~ouncil's~indin~sof Fact and by this reference are incorporated herein as if set forth in their entirety.

Section 2. Moratorium Established. A moratorium is hereby established, effective immediately upon adoption of this Ordinance, upon 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 game gambling activities, or to expand existing social card game gambling activities, whether as a principal use or as an accessory use. "Development permits" shall include, but are not limited to, subdivision approvals, short subdivision approvals, approvals for any and all rezones, site plan review approvals, and building permits for development activity resulting in the alteration of existing premises or the creation of new premises related to social card game gambling activities. No such applications shall be accepted during the effective period ofthis moratorium.

Section 3. Effective Period of Moratorium. The moratorium established by this Ordinance shall become effkctive as set forth in Section 4 below, and shall continue in effect for six months thereafter unless repealed, renewed or modified by the City Council after a subsequent public hearing and entIy of findings of fact.

Section 4. Effective Date. This Ordinance, as a public emergency ordinance necessary for the protection of the public health, public safety, public property, or public peace, shall take effect and be in full force immediately upon its adoption, Pursuant to Matson v. Clark County Board of Commissioners, 79 Wn.App. 641, 904 P.2d 317 (1995), underlying facts necessary to support this emergency declaration are included in Section 1 and in the "WHEREAS" clauses, above, all of which are adopted by reference.

Section 5. Work Program. The City Manager is authorized to allocate the necessary resources to prepare a work program to address issues related to social card game and other gambling activities, and to develop appropriate proposals for amendment of the interim Kenmore Comprehensive Plan, Zoning Code and other development regulations as may be necessary.

Section 6. Public Hearing to be Held. A public hearing on the issue of the moratorium shall be held no later than sii(60) days after the date of adoption herein.

Section 7. 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.

9ADOYIED BY THE CITY COUNCIL AT A REGULAR MEETING THEREOF ON THE & DAY OF APRIL, 1999.

CITY OF KENMORE

lsl ~a~6rJack V. Crawford I -I ~uthhhuller, City Clerk

Approved as to form:

&hael R. Kenyon, City Attorney

Filed with the City Clerk: Passed by the City Council: Ordinance No. Date of Publication: Gambling taxes received

Tax receipts from each type of activity Total Amusement Punch Date Bingo Raffles Games Boards Pulltabs Cardrooms

Estimated Revenues 98 $60,542.00 Taxes recvd in 98 $21,182.04 Balance Remaining $39,359.96

Estimated Revenues 99 $363,247.00 Taxes recvd to date $188,420.61 Balance Remaining $174,826.39 KING COUNTY SHERIFF'S OFFICE MEMORANDUM

TO: Steve Anderson, Kenmore City Manager DATE: May 10, 1999

FROM: Chief Sether, Kenmore Police [:& VIA: Direct

SUBJECT: SECONDARY CRIMINAL EFFECTS RELATING TO GAMBLING ESTABLISHMENTS

During 1998, The King County Sheriff Office responded to Kenmore Lanes, the only 24-hour gambling establishment in Kenmore, 39 times. The following are the top five categories of crime that we have experienced associated with gambling establishments:

+ Controlled substance violations + Assaults + Larcenies + Drinking in Public/fighting + Robbery

These types of crime are also common with the other gambling establishments in the neighboring communities.

If I can be of further assistance please contact me. 1.4 .I '' .- 2:.. :" &&-a -"ii.. ". / ;p .: Gambling%%rd gaygl~@-fg-,ai, , I,*us $A. .* t u-.+)..l+33!cT! .-

, .,..\ ,". moratorium on miru-casino~.~.I ,. A_ I.. .. - -a- . . UWX L$~~~ByeOBE~~A~ program to Am cud moms to sffet PI OLCORRESPONDENT how&banked wes such as black jack,:@ program aims to help restaurants and hkms OLYMPIA - The state Gambling Com- with social card rooins compete, with Jhdh mission this week will take up a proposed casinos. , . moratorium on so-called "minicasinos" that The Rmtional Gaming Associahn, have spread across the state and raised which represents mini-casino owners, sajrS'a community concerns from Tacoma to Spo- moratorium would be unfair to .)~~~inesses kane. that have filed applications and While it's unclear whether the commis- invested thousands of dollars to meet Ggm'- sion will act, the debate is expected to touch bling Commission standards. Dolores Chiechi on a range of issues, including the economic Whitmore, a spokeswoman for the aks$ai impact, social costs ,and local control of tion, said the commission approves one or two gambling. The panel.atso must decide if it has licenses a month, a pace that allows for the power to impose a moratorium, since state adequate regulation. law prohiits it from de applidns Many communities, however, are W- just to hold down the number7 o licenses. prised and alarmed at the sudden proliferition The moratorium, proposed by Gov. Gary of the miqiasinos. At least eight - '811 'M Locke, would stop the licensing of mini- King and Pierce County - have imposedtheif casinos until at least January, when the own moratoriums. One of these communities, Reflmond, subsequently banned all aifd Legislature begins a new session The pause, .,., Locke contended, would give the commission, rooms outright. ..- Legslature and his office time to analyze the "The main concern is it came on pr& effect of the rapidly multiplying establish- quickly," said Steve Lancaster, community ments, and develop new policies, if needed. development director in Tukwih, which ,im- The commission has approved nearly 50 posed a six-month moratorium in Febmq. minicasinos in about 20 communities since -* . 1997, when the Legislapre wed a pilot -.'&MZNH;ASmOS, *"e'B 1 -.. ,-

Mini-casinos: Concern over effect on communities -1

From Paae BI ed from card rooms in King County lawsuits. grew. 80 percent between June 1997 to Ultimately, the question will- be "The questions we have are pretty June 1998, although minicasinos had settled by the courts or legislation wideranging, from what are the im- been operating only a few months, clarifying local and state author;ity, pacts on the surrounding community, according to the Gambling Commis- Patjens said. to a number of legal issues regadng sion Ron Rosenbloom, a lobbyist for our authority to control them." But local officials worry mini- the Association of Washington Cit$?s, Four minicasinos have been li- casinos will open near. schools, said cities prefer the Legislature. . . censed in Tukwila, according to the churches and residential neighbor- They believe a moratorium woidd Gambling Commission. , hoods, or overwhelm doyntown busi- allow time to develop lelative qlu- The question of whether commu- nessdistricts. tions. nities can use zoning and local licens- Some cities insist they have the "Ih certainly a better app&ch ing powers to restrict where and how power to determine land qe within than having them issue a buncqof many minicasinos operate is perhaps their boundaries, but the state law is licenses and have litigation ih the the most controversial - and unset- unclear, said Amy Patjens, a spokes- meantime," Rosenbloom said 'We're tled - issue. Local'of#icials say they' woman for the Gambling Commis- just trying to get a breather." don't necessarily oppose the establish- sion The law gives the commission ments, they just want to control them sole'authority to license and regulate IP-l reporter Robert Gavin can , Minicasinos have become a grow- gambling. she said, and cities that use be reached at 36G943-8311 -, ing source of tax money. Taxes collect- zoning to restrict miniwinos risk or [email protected]