2022-01 Ordinance Amending City Code Chapter 54.1 - Video Gaming License

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CITY COUNCIL MEMORANDUM NO. 2022- January 13,2022 TO: Honorable Mayor Moore Wolfe and City Council FROM: Scot Wrighton, City Manager Amy Waks, Assistant Corporation Counsel RE: Amendment to Chapter 54.1 of the City Code: Video Gaming Licenses/Fees This item has been tabled twice for additional information. It is the intention of this memo to provide additional background and options for the City Council to resolve this issue for 2022. As you are aware,the State passed legislation signed by the Governor on December 17,2021 in Public Act 102-0689 requiring that any fees imposed on video gaming terminals be shared equally by the terminal operators and the establishments, as opposed to the City's current fees. Currently, the City imposes fees for video gaming terminals on terminal operators but not establishments. When this law became effective,the City was processing renewals for establishment video gaming terminal licenses which expired on December 31, 2021. Currently, the video gaming terminal licenses for terminal operators expire on the last day of February. Licenses for video gaming terminals in establishments commence on the first day of January each year, while licenses for video gaming terminals for terminal operators commence on the first day of March each year. This calendar offset reflects previous actions by the City Council allowing the shifting of video gaming terminal fees from local establishment owners to the terminal operators. This needs to be corrected so that both categories are renewable at the same time. Therefore, the recommendation is for City Council to increase total fees for video gaming terminals from $500 to $750 (split evenly between the establishment owner and the terminal operator) to take effect on March 1, 2022. Any applicant after February 28, 2022 would be responsible for half of the $750 fee, or$375 per video gaming terminal.