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May 1, 2012 Item No.
May 7, 2012 CITY COUNCIL MEETING
MECHANICAL AMUSEMENT DEVICE LICENSING ORDINANCE
Proposed Action
Staff recommends adoption of the following motion: Move to approve an ordinance repealing Title 3
Chapter 12 of the Lakeville City Code concerning mechanical amusement devices
Adoption of this motion will repeal Title 3, Chapter 12 of the Lakeville City Code in its entirety
eliminating the licensing of mechanical amusement devices by the City of Lakeville.
Overview
Title 3, Chapter 12 of the City Code states that no person shall keep, operate, maintain or permit to be
operated or maintained upon premises within their direct or indirect control a mechanical amusement
device without first procuring a license from the City. The code also states that a license fee in the
amount of $15 per site plus $15 per device is required. This regulation was enacted in 1982 with the
adoption of City Ordinance 209. Cities in Minnesota were granted the authority to create mechanical
amusement device licensing by Minnesota State Statute 449.20 adopted in the 1970's. At the
December 19, 2011 City Council meeting 13 locations within the City with a total of 181 devices were
granted license renewals for 2012. The total income received from the license renewals was $2,910.
The licensing of mechanical amusement devises in the 1980's and 1990's served a purpose when
large video arcades were popular and it was deemed necessary to regulate these establishments to
insure an efficient response and a clear process to address nuisance issues. Records indicate that
there have not been nuisance related issues with these devises.
The City Council discussed eliminating the licensing requirement for mechanical amusement devices
from the City Code at the April 23` City Council work session. Based upon staff recommendation, the
City Council indicated a consensus to consider eliminating the licensing requirement.
Primary Issue to Consider
• Have any other cities in the southern metropolitan area recorded issues pertaining to the use of
mechanical amusement devices?
The City Clerk in 2011 completed a survey of other southern metro cities that require mechanical
amusement devise licenses, including Burnsville, Apply Valley, South St. Paul and West St. Paul with
none of them recording issues or revoking licenses due to nuisance related issues. In October of
2011 the City of West Saint Paul eliminated the licensing requirement and in February of 2012 the City
of Eagan eliminated the licensing requirement for mechanical amusement devices.
Supporting Information
• Ordinance Amending Title 3, Chapter 12 of the City Code.
• April 23, 2012 Draft City Council Work Session Minutes.
• qV-P ncil Work Session Memo Dated April 18, 2012 and Chapter 12 of the City Code.
Planner
Financial Impact: $ 2.910 Budgeted: Y/N Y Source:
Related Documents (CIP, ERP, etc.): City Code and Budget
Notes:
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CITY OF LAKEVILLE
DAKOTA COUNTY, MINNESOTA
AN ORDINANCE AMENDING TITLE 3, CHAPTER 12
OF THE LAKEVILLE CITY CODE CONCERNING
MECHANICAL AMUSEMENT DEVICES
THE CITY COUNCIL OF THE CITY OF LAKEVILLE, MINNESOTA ORDAINS:
SECTION 1 . Title 3, Chapter 12, of the Lakeville City Code is repealed in its
entirety.
SECTION 2. This ordinance shall be effective January 1, 2013.
ADOPTED this 7th day of May, 2012.
CITY OF LAKEVILLE
m
Mark Bellows, Mayor
ATTEST:
Charlene Friedges, City Clerk
Minutes
Lakeville City Council Work Session
April 23, 2012
In attendance: Mayor Mark Bellows
Council Member Laurie Rieb
Council Member Kerrin Swecker
Council Member Matt Little
Council Member Colleen LaBeaU DRAFT
Staff: Steve Mielke, City Administrator
Chris Petree, Public Works Director
Allyn Kuennen, Associate Planner
Dennis Feller. Finance Director
Steve Michaud, Parks and Recreation Director
Zach Johnson, Interim City Engineer
Judi Hawkins, Deputy City Clerk
The meeting was called to order at 6:00 p.m. by Mayor Bellows.
ITEM # i — Amusement Devices Ordinance
At their December 19, 2011 meeting, Council discussed the relevancy of the Mechanical
Amusement Device Ordinance. Allyn Kuennen stated that in 1982 when large video
arcade establishments were popular the City created the ordinance to better manage the
number of gaming machines and to prevent arcades and other establishments from
creating a public nuisance. In 2011 staff investigated neighboring cities to determine if
there had been experiences of licenses being revoked due to mechanical amusement
device nuisances. Staff was unable to find any incident where a license was revoked due
to nuisance related issues.
Home entertainment systems and handheld games have contributed to a decline in the
number of arcades. in 2012 a total of $2,910 in license fees was collected from 13
locations with a total of 181 devices. Due to this decline and the historical lack of related
issues, staff is recommending Title 3, Chapter 12 of the City Code be revised to eliminate
the required licensing of mechanical amusement devices effective January 1, 2013.
Council Member LaBeau stated that eliminating this license requirement would be user
friendly to the businesses.
Council directed staff to bring a revision to the City Code forward to eliminate the license
requirement for mechanical amusement devices.
alb .it!
Memorandum
City of Lakeville
Administration Department
To: Honorable Mayor and Members of the City Council
From: Steven C. Mielke, City Administrator
Allyn G. Kuennen, Associate Planner
Date: April 18, 2012.
Subject: Packet Material for the April 23, 2012 City Council Work Session.
Agenda Item: Mechanical Amusement Device Licensing Ordinance.
BACKGROUND INFORMATION
City Code 3- 12 -2 -1 states that no person shall keep, operate, maintain or permit to be
operated or maintained upon premises within their direct or indirect control a
mechanical amusement device without first procuring a license from the City. The code
also states that a license fee in the amount of $15 per site plus $15 per device is
required. This regulation was enacted in 1982 with the adoption of City Ordinance 209.
Cities in Minnesota were granted the authority to create mechanical amusement device
licensing by Minnesota State Statue 449.20 adopted in the 1970's.
At the December 19, 2011 City Council meeting the following establishments and
vending companies were granted license renewals for 2012:
• Leiserv, Inc. /Brunswick Zone XL
• Harry's Cafe
• American Amusement Arcades /Lakeville Family Bowl
• American Amusement Arcades /Holiday Inn
• American Amusement Arcades /Babe's Sportsbar & Grill
• American Amusement Arcades /Carbone's Pizza
• Awe Vending & Amusements /Baldy's BBQ
• Pinball Plus /Mega Wash Laundry
• Lakeville Muller Theater
• Dean Vending /Ole Piper
• Midwest Coin /Lakeville VFW
• Mendota Valley Amusement/Buffalo Wild Wings
• Mendota Valley Amusement/Green Mill
77 devices
3 devices
8 devices
11 devices
13 devices
10 devices
2 devices
3 devices
21 devices
6 devices
4 devices
13 devices
10 devices
The total income received from the license renewals was $2,910.
Analysis & Recommendation:
At the time this licensing requirement was implemented in 1982, concern about
regulating arcades and the potential nuisances associated with them was high. The
licensing of these devices provided the City an avenue to regulate or manage the
number of machines and a process to revoke the license if the establishment and the
use of the machines created a public nuisance.
With the increase in popularity of home video game systems and hand held electronic
devises the popularity of large arcades has waned and the potential for nuisances has
diminished. In researching the mechanic amusement device licenses issued over the
past 30 years, staff was not able to find an incident when the license was revoked due
to nuisance related issues. The City Clerk in 2011 completed a survey of other
southern metro cities that require mechanical amusement devise licenses, including
Burnsville, Apply Valley, South St. Paul and West St. Paul with none of them recording
issues or revoking licenses due to nuisance related issues. In February of this year the
City of Eagan City Council eliminated the licensing requirement for mechanical
amusement devices due to the antiquated nature of the requirement and the lack of
issues related to mechanic amusement devices.
Staff believes the licensing of mechanic devises in the 1980's and 1990's served a
purpose when large video arcades were popular and it was necessary to regulate these
establishments to insure an efficient response and a clear process to address nuisance
issues. However, due to the lack of any history regarding nuisances related to
mechanical amusement devises and with the increase in popularity of home video game
systems and hand held electronic devises the need to regulate and license these
machines is questionable . Staff recommends the City Code be revised to eliminate the
required licensing of mechanical amusement devices effective January 1, 2013. Staff
will be available at the April 23` City Council work session to review the mechanical
amusement devise licensing ordinance.
2
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Chapter 12
MECHANICAL. AMUSEMENT DEVICES
3 -12 -1: DEFINITIONS:
As used in this Chapter, the terms defined in this Section shall have the following meanings
ascribed to them:
MECHANICAL AMUSEMENT DEVICE: A mechanical, electrical or electronic machine which
upon the insertion of a coin, token or slug, operates or may be operated or used for a game,
contest or amusement of any description and which contains no pay off in money, coins,
checks or merchandise other than free game(s) at the same machine. Such item includes but
is not limited to pinball machines, miniature pool tables; bowling machines; shuffle boards;
electric rifle or gun games; miniature mechanical or electrical games patterned after baseball,
football, basketball, hockey, soccer or similar games; and electrical video games of whatever
kind used solely for amusement and not as a gambling device. This term does not include juke
boxes, food vending machines and devices designed and exclusively used as rides by
children. (Ord. 209, sec. 1, 9- 20 -82)
3 -12 -2: LICENSING REGULATIONS:
3- 12 -2 -1: LICENSE REQUIRED:
No person shall keep, operate, maintain or permit to be operated or maintained upon premises
within his direct or indirect control a mechanical amusement device without having first
procured a license therefor from the City. (Ord. 209, sec. 1, 9- 20 -82)
3- 12 -2 -2: EXCEPTIONS:
This Section shall not apply to mechanical amusement devices held or kept in storage or for
sale, and which are not actually in use or displayed for use, or to mechanical amusement
devices locatedin a private dwelling and used exclusively for private entertainment. (Ord. 209,
sec. 1, 9- 20 -82)
3 -12 -3: LICENSE APPLICATION:
Every application for a mechanical amusement device license shall state the description of the
mechanical amusement device for which the license is to be issued; the place where the
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device is to be maintained and used, the place of residence of the applicant and other
information as the City Clerk may require. (Ord. 209, sec. 1, 9- 20 -82)
3 -12 -4: LICENSE FEE:
Licenses for mechanical amusement devices shall be issued by the City Clerk after the
application has been approved by the City Council and the license fees required have been
paid to the City Treasurer. The license fee shall be established by resolution of the City
Council. The license fee may be prorated for the portion of the year that the license is effective.
(Ord. 398, sec. 1, 12- 14 -89)
3 -12 -5: TRANSFERABILITY:
A. The license may be transferred from one machine or device to another similar machine. Not
more than one machine shall be operated under one license, and the applicant or licensee
shall be required to secure a license for each and every machine maintained or operated
by him.
B. Licenses are issued to the applicant only and for one location, and such licenses are
nontransferable between persons or locations. (Ord. 209, sec. 1, 9- 20 -82)
3 -12 -6: ORDERLY CONDUCT:
Every licensee shall be responsible for the orderly conduct of his or her place of business
including off - premises activity attributable to it. (Ord. 209, sec. 1, 9- 20 -82)
3 -12 -7: GAMBLING PROHIBITED:
No licensee shall permit the operation of a mechanical amusement device for the making of
side bets or gambling in any form. No prize, award, merchandise, gift, money or anything of
value shall be given to any player of a mechanical amusement device other than free games
awarded by the machine. (Ord. 209, sec. 1, 9- 20 -82)
3 -12 -8: RESTRICTIONS BY CONDITIONAL USE:
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The restrictions contained in this Chapter may be amended and additional conditions or
restrictions may be imposed as a part of a conditional use permit issued pursuant to the
Zoning Code. (Ord. 209, sec. 1, 9- 20 -82)
3 -12 -9: REVOCATION:
Any license issued under this Chapter may be revoked by the City Council for cause at any
time on reasonable hearing prescribed by the City Council. (Ord. 209, sec. 1, 9- 20 -82)
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