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MINUTES <br />CITY COUNCIL <br />JUNE 23, 1993 <br />The Administrator reported that his rationale for <br />charging the cost of copy machine against the 3% <br />gambling account is that other than employee costs, the <br />City is not recouping any overhead costs associated <br />with charitable gambling. The Administrator used the <br />Minneapolis Gambling Enforcement Department as an <br />example pointing out that this department operates with <br />significant equipment that is paid for from their <br />enforcement tax. <br />Morelan was not sure it was proper to charge overhead <br />against the 3% account. <br />LaValle stated that it was proper, and pointed out that <br />the City has been very very conservative about charges <br />against the 3% account compared to how other cities <br />operate. <br />The City Administrator again stated that no overhead <br />such as heat, electricity costs, etc. have been charged <br />against the 3% account. Costs such as employee staff <br />time and City Attorney costs related to charitable <br />gambling have been charged to the 3% fund. He also <br />pointed out the many dollars in past costs which the <br />General Fund paid for. <br />Morelan stated that it did not seem right to charge for <br />overhead, and indicated that the 3% fund should not be <br />used to supplement the City's budget. Morelan felt <br />that payinq for the copy machine from the 3% fund was <br />supplementing the City's budget. Morelan stated that <br />only costs associated directly with charitable gambling <br />should be charged against the 3% fund. <br />Mr. LaValle introduced the following resolution and <br />moved its adoption: <br />RESOLUTION N0. 93-6-195 - APPROVING THE PURCHASE OF <br />COPY MACHINES FOR THE CITY CENTER AND HISTORICAL <br />SOCIETY AS QUOTED BY D. C. HEY AT A COST OF $10,860 <br />WITH THE COST OF TAE CITY CENTER COPY MACHINE ($9,445) <br />TO COME FROM THE 3% GAMBLING ENFORCEMENT FUND DUE TO <br />THE SIGNIFICANT AMOUNT OF COPIES MADE IN GAMBLING <br />ENFORCEMENT AND DUE TO THE FACT THAT THE CITY DOES NOT <br />RECOUP OVERHEAD COSTS ASSOCIATED WITH GAMBLING <br />ENFORCEMENT, AND THE COST OF THE HISTORICAL SOCIETY <br />COPY MACHINE ($1,415) TO COME FROM THE 10% CAPITAL <br />IMPROVEMENT FUND <br />The foregoing resolution was duly seconded by Scalze. <br />Ayes (4) LaValle, Scalze, Hanson, Pedersen. <br />Nays (1) Morelan. Resolution declared adopted. <br />The City Administrator anticipated having quotes for a <br />plain paper fax machine at the next meeting for Council <br />review. <br />Page 14 <br />