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1 <br />1 <br />COUNCIL MEETING <br />NOVEMBER 13, 1989 <br />Mayor Benson said that assuming that Voto, Tautges, Reardon <br />Ltd was not in business, would this system be compatible with <br />other auditing firms. Mr. Tautges said yes. <br />Mr. Bisel asked Mr. Tautges if he were sitting in the <br />Council's position, what would the City need to do to <br />expedite or improve. Mr. Tautges said that the reports <br />should be evaluated on an interim basis. He said the Council <br />should judge what they see and then direct the staff to make <br />alternative reports. He also said that future needs such as <br />training and evaluating should be an ongoing process. <br />Mr. Bisel moved to approve the contract with Voto, Tautges, <br />Reardon, Ltd for the 1989 audit. Mr. Reinert seconded the <br />motion. Motion carried unanimously. <br />ATTORNEY'S REPORT - BILL HAWKINS <br />Consideration of Ordinance No. 09 - 89 Amending Lawful <br />Gambling Code, First Reading - Mr. Hawkins explained that <br />there has been new legislation in 1989 regarding this matter <br />and suggested that the City take advantage of this new <br />legislation that authorized cities to increase the amount of <br />expenditures that they can require licensed gambling <br />organizations within the city to expend. This proposed <br />amendment addresses two concerns of this Council. The first <br />concern was that organizations were coming into the city and <br />taking receipts and expending them elsewhere. The new <br />legislation authorizes cities to require up to 100% of all <br />the lawful expenditures that an organization makes be spent <br />within a trade area as defined by the city. This proposed <br />ordinance amendment requires that 50% of the lawful <br />expenditures be spent within the trade area of Lino Lakes. <br />Mr. Hawkins has defined the trade area as within the <br />municipal boundaries of the city. <br />The second concern of the Council is in reference to the <br />definition of members of the organization applying for the <br />lawful gambling license. This concern was especially evident <br />during the consideration of a lawful gambling license for the <br />National Multiple Sclerosis Society several months ago. This <br />organization defined a member as any person who has donated <br />to this organization. Section 611.02A of the proposed <br />ordinance amendment requires that in order to be considered a <br />member a person must take an active part in the organization. <br />Mr. Bisel was concerned regarding the requirement that 50% of <br />the lawful expenditures be spent within the trade area of <br />Lino Lakes. He explained that if legislation is amended to <br />allow the VFW to use some of the proceeds to building the new <br />VFW building, this may impact this requirement. Mr. Hawkins <br />explained that if the building is constructed in Lino Lakes, <br />the VFW would be in compliance with the amendment. Mr. Bisel <br />said he would like to sit down with Mr. Hawkins to review <br />Page 3 <br />