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HomeMy WebLinkAbout1991-11-25 Park Board MinutesSPECIAL EDINA PARK BOARD MEETING CHARITABLE GAMBLING 7:30 p.m. November 25, 1991 CENTENNIAL LAKES CENTRUM BUILDING MEMBERS PRESENT: Bob Christianson, Jim Fee, Beth Hall, Pat Vagnoni, Jean Rydell, Paul O'Connor, Bill Lord MEMBERS ABSENT: Bill Jenkins, Mac Thayer, Andy Herring, Andy Montogomery STAFF PRESENT: Bob Kojetin, John Keprios, Ed MacHolda, Solvei Swenson GUESTS: Members from the Edina Girls Athletic Board: Nancy Dahlien, Tammy Halverson, Molly McShane, Trish Brown, Diane Safely. Guest: Jim Safely PARK BOARD BACKGROUND Bob Christianson gave background from the last Park Board meeting. During that meeting it was brought to the boards' attention that it was the intent of the Edina Girls Athletic Association (EGAA) to engage in pull -tabs at two sites, Ruperts and Gippers. The Park Board moved to not approve of charitable gambling for youth athletic associations. However, it later moved to reconsider the motion. The motion to reconsider was tabled and the EGAA would be invited to attend the next Park Board meeting. The Park and Recreation Department's staff was requested to share the boards uncomfortableness with this issue to the EGAA board. Mr. Christianson then spoke with Mayor Richards and found that the City Council would be talking about charitable gambling at the next City Council meeting, Monday, December 2, 1991. As a result, Mr. Christianson thought it would be best for the Park Board to hold this special meeting in order to relay its recommendation to the City Council. Mr. Christianson invited EGAA to present their information. EGAA BACKGROUND Nancy Dahlien. President of EGAA, thanked the Park Board for holding this meeting. The EGAA board was under the impression that they could make the decision without talking to anybody else in the City and that the decision to proceed with pull -tabs was a difficult decision. It took a lot of time and a lot of discussion. Last year, the EGAA program had the traveling basketball program split from their board and consequently took away the largest revenue producing program from the association which is the annual Girls Traveling Basketball Invitational Tournament. Also, there was an increase in scholarship requests and custodial charges levied from the schools that weren't last year. These factors influenced the pull -tab issue to be passed by the EGAA board. At this time, there is a lease with one establishment, the new Gipper's in Golden Valley. A second one is under consideration with Ruppert's. Ms. Dahlien then introduced Tammy Halverson. Tammy Halverson is an EGAA board member whom was selected by the EGAA Board to serve as Manager of the charitable gambling operation for EGAA. Last spring, she was involved.in the sponsorship drive for girls fast pitch program (separate from EGAA). Through that program she found out how difficult fund raising can be. She did find out about the Hopkins' J.C.s and the Air Force Association which gave $1000 and $2500 to the EGAA traveling basketball program from their charitable gambling operations. Further research pointed her to the charitable gambling option. The process has taken the last five months to research and set-up. There have been permits and meetings to attend, along with a seminar. The charitable gambling is very regulated by the State of Minnesota. The State requires that a designated person be the gambling director, that it be cash only, monies deposited within three days, separate account and monies must be requested for use. The EGAA board is anxious to keep everybody working together and wanted to let the Park Board know what has gone on and where they are now. Having the children doing the fund raising is good. However, realistically, the parents do the fund raising, the children are not sent out door to door. An example of a program supported by charitable gambling is North Tartan where they have paid coaches for their basketball program. Gambling is the third largest employer in the state. The current lease with Gippers is written with a 30 day termination notice. It is a two year lease but 30 days mus be given if things do not work out. The EGAA has invested approximately $3,000 in start up expenses. DISCUSSION Diane Safely, a member of EGAA board for the tennis program, stated that the EGAA programs are good, however she is opposed to the gambling issue. Three points she shared: 1. If EGAA is going to be primarily supported by pull -tabs that this policy should be established by elected officials of our community, 2. Relaying on pull -tab funds sends the wrong message to the children, 3. Gambling in a bar is hypocritical from Edina. If pull -tab gambling is permitted it should be done in Edina. 4. The associations are feeder programs for our varsity and jr. varsity having a pull -tab fund raiser obscures the values. Finally, Ms. Safely stated that their Park and Recreation advisor, after researching the issue, gave the EGAA encouragment too go forward with pull -tab gambling. As a result, she asks the Park Board to reconsider this decision. Ms. Dahlien stated that the Park and Recreation program is currently funded by the liquor stores' funds each year. Bob Christianson clarified that the Park Board has not made a recommendation for or against charitable gambling at this time. There is a difference between the Edina Park Department Staff and the volunteer Park Board. Mr. Safely stated that he is a member of the Edina Swim Club board. He can appreciate the financial shortfall. But to go outside the community to take advantage of a pull -tab, seems wrong. The Park Board has a responsibility and appreciates the staffs desire to find a short cut, but the board has a responsibility to make a decision. Everyone is trying to find the right answer and feelings should be expressed. Ms. Halverson stated that the EGAA board vote was 18 to 3 for charitable gambling after reviewing the information. It is a legal method to raise funds outside of Edina, and it is not possible in Edina so they have to go outside the community to hold the pull -tab gambling. If the Park Board objects to pull -tab gambling, Ms. Halverson requested that the Park Board indicate where the funds could be obtained. There are the same people on the boards and me people work outside the home so finding volunteers is harder along with obtaining funds to run the program. Bob Christianson stated the board understands the different positions. He inquired where has the $3,000 been invested. Tammy Halverson replied that $600 has gone to a permit fee, a $10,000 bond on the gambling manager, $600 for an application to the city of Golden Valley, the CPA who has helped set-up charges $75/hour which has not been paid yet. The EGAA also had to update their incorporation with the state. Mr. Christianson asked who is the CPA. Ms. Halverson replied that Jim Dittmer has been involved with the ChiIdren's Heart Association and their charitable gambling. He is the one the EGAA has enlisted to facilitate starring their program. Mr. Dittmer will take care of hiring and firing site managers, managing the books, and filing tax returns. Mr. Christianson then asked how the pull -tab booth is labeled. Ms. Halverson indicated that by state law they have to display where the proceeds are going, so their is a sign that states EGAA. Paul O'Connor inquired about EGAA fees currently. Ms. Dahlien indicated that the fees are low. The fees range from $22 to $32. Basketball is $32 and flag football, tennis is $22, volleyball was $25. However, each year the request for scholarships increases so people are having trouble even with that fee. Molly McShane stated that families are having to choose programs. Most of the time the kids that really need the program don't get to participate. Ms. Dahlien stated that we could cut back, and raise fees, however, just the operating fees are increasing so simply maintaining the status quo is difficult. Jim Fee asked for staff comments. John Keprios stated that he regrets he didn't have the foresight and feels badly that they are at this point. Several years ago the Edina Hockey Association approached Mr. Keprios about doing a raffle and they were directed to attain a permit by the City of Edina to conduct the raffle. The Edina Hockey Association found that they made more money selling pizzas and went back to selling it. Now the EGAA asked if they could do pull -tabs and Mr. Keprios found out that it was legal for them to operate a pull -tab booth outside of Edina. As a staff, it was recommended for EGAA to go forward with whatever their Board decides. Jim Fee asked the EGAA board members how much the EGAA receives from the pull -tab sale. Ms. Halverson replied that the association receives everything above expenses. Bill Lord inquired if Gippers gets a percentage of the profits. Ms. Halverson stated that Gippers would not get a percentage only a rental fee of $500/month. The EGAA has to give 50% to the state. Beth Hall asked how many booths at Gippers. Ms. Halverson stated just one. Pat Vagnoni inquired how many organizations are doing pull -tabs in the state. Ms. Halverson stated that 200 high schools, 80 athletic associations, and 60% of all charitable gambling is done by churches. Bob Christianson stated that there are ten statutory groups that can be in charitable gambling. Ms. Vagnoni then asked how often the gambling chair would be replaced. Nancy Dahlien indicated that the EGAA planned to have.the chair coincide with the lease. Ms. Vagnoni asked Bob Kojetin about funds from the liquor store and if they support park programs. The liquor stores bring in money for the General funds and the Park and Recreation Department receives funds from the General fund. John Keprios indicated that associations are finding it is getting more and more difficult for them to acquire sponsorships. The same sponsors are asked every year. Jim Fee asked if scholarships are available in every association. Mr. Keprios replied that the request for scholarships is on the increase and that every association offers scholarships. Mr. Keprios stated that the Edina Foundation provides scholarship funds for the Park and Recreation sponsored activities and is administered by the Park and Recreation Department. Bob Christianson stated that this is a broader issue than just the EGAA's involvement with charitable gambling. The board is trying to come to grips with policy and these are some questions to deal with: 1. Do we have any policies regarding fund raising? 2. If we do, what are they? 3. If we do, does the action proposed by the EGAA fit within our existing policies? 4. If it does, should our policies be changed? 5. if we change our policy, what impact should the change have on the EGAA proposal? 6. If we do not have any policies regarding fund raising, should some be adopted (or recommended the City Council)? 7. Is fund raising by associations our concern? 8. What are fund raising efforts designed to accomplish? 9. Should fund raising efforts be coordinated between all of the associations? 10. Should funds raised be put in a common pool to be distributed by a joint committee? 11. Should we seek input from all associations and interested parties before adopting a policy? 12. Should we be concerned about what other communities are doing in this area? 13. Are there model policies recommended by State or National associations? 14. Will the adoption of fund raising policies have a negative impact on our recreation program? 15. What leverage do we have if an association chooses not to abide by our policies? 16. What problems have the other communities experienced in this area? 17. Is there any legal exposure? There are probably a lot of other questions. It was Mr. Christianson's hope that there would be enough time to invite other associations in before a decision was made. Mr. Christianson inquired if the associations, not just EGAA, are their own governing body. Mr. Kojetin stated that as long as the association was providing equal opportunity for all youngsters to participate that the Park and Recreation Department would recognize that association and support them. Jim Fee stated that the Charitable Gambling is a two fold problem: First this group worked on something they thought they had approval on and Second that this issue is broader than the EGAA. Because EGAA has done their home work and put money in he would have a hard time voting on this issue tonight. Bob Christianson agreed that the EGAA acted on good faith and if they could be afforded an opportunity to recoup their loses and not increase their exposure which would allow the Park Board and City Council time to look at this issue. Paul O'Connor recognizes the hard work the EGAA has done and the benefit it provides for the community. However, the Park Board has a responsibility to show leadership and not compromise. The School Board has recognized the ethical values of the students. It may mean more work in order to establish those values, but it would be communicated to the children. The message is wrong that this fund raiser provides. Bill Lord agrees with Mr. O'Connor, but how do we compensate the EGAA for the $3,000 spent. Mr. O'Connor would like to see the reimbursement from the City funds. Mr. Lord inquired how the City views charitable gambling. Mr. Kojetin indicated that the Administrative Department has been asked to investigate ordinances regulating gambling. Bob Kojetin stated that he has mixed feelings about charitable gambling. Other park departments have benefited from pull -tabs. The income has been distributed right into the capital fund for the park system. Spring Lake Park gives 10% back to the city in charitable gambling. Edina tries to be a leader and in this issue we are following. It is hard to define what is a good fund raiser. Mr. Kojetin feels the EGAA board made a good decision. Jim Fee inquired about Mr. Rosland's position. Mr. Kojetin indicated that Mr. Rosland. He hates to see EGAA receive gambling funds from another community. Mr. Christianson stated that the pull -tab issue may be headed for a vote from the residents in Edina. Then asked if EGAA was going to council. Tammy Halverson stated that they were waiting to see what the Park Board recommended before their group decided to go to council. They hope to recur their loses and have a decision before December 2. Jim Fee MOVED THAT EGAA BE ALLOWED TO CONTINUE WITH THE PROJECT THEY HAVE UNDERTAKEN WITH THE UNDERSTANDING THAT THERE IS A 30 DAY CANCELLATION CLAUSE THAT THEY COULD GET OUT. AT THE SAME TIME ADVISE THE CITY COUNCIL WHAT HAS TRANSPIRED HERE WITH THE EGAA AND COPIES OF OUR DISCUSSIONS TONIGHT. AND TO ASK THEM FOR THEIR RECOMMENDATION TO THE PARK BOARD ON HOW TO PROCEED. MOTION FAILED DUE TO LACK OF SECONDED. Paul O'Connor MOVED THAT THE PARK BOARD NOT SUPPORT CHARITABLE GAMBLING AS A FUND RAISER FOR ANY YOUTH ATHLETIC ASSOCIATION. Pat Vagnoni seconded. Bill Lord MOVED TO AMEND MOTION TO ALLOW EGAA TO BE REIMBURSED THROUGH PARK FUNDS OR THROUGH PERSISTENCE IN THE PULL TAB OPERATION. Paul O'Connor will not accept as stated. Jim Fee SECONDED AMENDMENT. Mr. Fee asked what additional expense is EGAA anticipating. Ms. Halverson stated that if the EGAA went ahead and started the pull -tab operation they would need to invest at least $5,000 to continue. Starting it and then pulling out is not an option at this time. Jim Fee asked what is the amount currently spent. Ms. Halverson stated about $2800. Bill Lord WITHDREW AMENDMENT. Mr. Kojetin asked if the program couldbe sold to another group. Ms. Halverson stated no, the state does not allow it to be transferred. Ms. Halverson commented that investment in charitable gambling is usually recuperated in 2 to 3 months. Mr. Kojetin asked how much is estimated to be raised. Ms. Halverson said about $7,000 per month. Jim Fee MOVED TO TABLE PAUL O'CONNOR'S MOTION UNTIL MORE INFORMATION IS RECEIVED AND REVIEWED. MOTION FAILED DUE TO LACK OF SECOND. Pat Vagnoni CALLED FOR THE QUESTION. MOTION CARRIED. 4 yeah, 1 nay, 1 abstain. Jim Fee MOVED TO STRONGLY RECOMMEND THAT ALL EXPENSE INCURRED BY THE EGAA BE REIMBURSED. Jean Rydell SECONDED. MOTION CARRIED. Bob Christianson suggests inviting the athletic associations to come up with a game plan while the Park Board works on a policy for future fund raisers. Jim Fee stated that direction should come from City Council. Bob Christianson stated that he hoped they would. Paul O'Connor stated that the board should come up with more options for athletic association fund raisers. Trish Brown agreed that we should teach our children some ethical values. However, this fall she felt very drained from all the money demands from the schools and the church. The elementary school had the children count the number of shoes in the house and pay a nickel for each shoe, Southview Jr. High has asked the parents to become a patron for $25. Because of the security for the children they can not go door to door. Ms. Brown felt she would be much happier sitting at home reading to her children or helping with the home work instead of becoming frustrated by spending time on the phone trying to get people to volunteer or raising more funds. Her children see her getting frustrated when they come home with a note that says they need more money for this or more money for this. Even with a budget in their household and the children raising their own money the demand is draining. Tammy Halverson stated that the retailers are hit every year to be sponsors or to contribute. Bob Christianson stated that fund raisers need to have some parameters. The board will look into the limits as it recognizes this as a problem. Tammy Halverson stated that the EGAA is trying to do something about raising funds and that should be recognized. Bob Christianson recognized the EGAA as proceeding in good faith. He urged the board to attend the council meeting Monday, December 2, 1991. Tammy Halverson thanked the Park Board for holding this -meeting and appreciated being able to come. Nancy Dahlien stated that as a board, EGAA decided to go along with whatever the Park Board recommended. However, she requests that the Park Board draw up some guidelines for future use and that the EGAA would like to be compensated for their losses. John Keprios apologized for giving direction on pull -tab gambling to EGAA on what now appears to be a controversial issue. Jim Fee encouraged the EGAA not to give up. Tammy Halverson replied that they need to move on. This issue is not their battle to fight. Bill Lord stated there are many issues to be worked out and that a definition of charitable gambling needs to be drawn up. Meeting adjourned, 9:15 p.m.