HomeMy WebLinkAbout2012/03/13 Item 17TY COUNCIL
STATEMENT
~~ CITY OF
---- CHULA VISTA
March 13, 2012 Item
ITEM TITLE: PUBLIC HEARING REGARDING PROPOSED AMENDMENTS TO
THE CHULA VISTA GAMING PLAN
RESOLUTION OF THE CHULA VISTA CITY COUNCIL
APPROVP.VG AMENDMENTS TO THE CHULA VISTA GAMING
PLAN TO 1NGREASE MAXI1\QUM NUMBER OF GAMING
TABLES FROM 16 TO ] 8 AND INCREASII~~G THE NUMBER OF
TABLES FOR "CLASS lA/IF' TO 9
CITY ATTORNEY'S OFFICE~~-
SUBMITTEDBY: CHIEF OFPOLICE~Fr°~ ~N`f~'
REVIEWED BY: CITY MANAGER'S OFFICE
4/STHS VOTE: YES ^ NO
SUMMARY
Village Club cardroom has proposed amendments to the City's Gami~~~g Plan to increase the
maximum number of allowed tables from 16 to 18 and to increase the number of tables for Class
1 A/II tables to 9 (from 4 and 3 respectively). Council approval of this item would allow these
changes.
F;NVIRONMENTAL REVIEW
This proposed activity has been reviewed for compliance with the California Enviromnental
Quality Act (CEQA) and it has been determined that the activity is not a "Project" as defined
under Section 15378 of the state CEQA Guidelines because it will not result in a plrysical change
in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines,
the activity is not subject to the CEQA. Thus, no environmental review is necessary.
RECOMMENDATIONS
Approve the attached resolution or provide direction to staff as City Council deems appropriate.
BOARDS/COMMISSION RECOMMENDATION
N/A.
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3/13/72, Item
Page 2 of 3
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the City Counci] Members and has foetid no property
holdings wid~in 500 feet of the boundaries of the property which is the subject of this action.
DISCUSSION
The City Council is authorized to make amendments to the Chula Vista Gaming Plan by a
majority vote by resolution after a public hewing pursuant to Chula Vista Municipal Code
Section 5.20.001.
The Village Club cardroom, through its proprietor and owner Mr. Harvey Souza, has requested
amendments to the Chula Vista Gaming Plan. Specifically, Mr. Souza has requested that staff
present amendments to the Chula Vista Gaming Plan increasing the maximum number of gamin;
tables from 16 to l8. The only other change is that within the total number of 18 tables the
number of tables for Class lA/II games (backline betting games such as "par gow" poker) will be
increased to 9 tables. The most recent amendments to the Gaming Plan were authorized by a
Council majority vote on October 6, 2009, that authorized an increase from 12 tables to 16. In
2009 it was contemplated that Village Club would be coming back to Council at a later date for it
to approve an inm-ease fi om 16 to 18.
The Village Club cardroom is the only gaming operation within the Chula Vista jurisdiction
Qocation: 429 Broadway). Village Chib has requested these amendments in a~lticipation of
operating its business at a new locatiar within Chula Vista.
Mr. Souza has applied for a CUP for a new location at 270-271 Bay Boulevard at the old El
Tonto and Highlands properties. The application process is still ongoing. The Development
Services Department continues to work on the CUP application and the Chula Vista Police
Department is also involved in the application process as a result of security and Alcoholic
Beverage Control (ABC) concerns.
The Village Club is currently constrained to operating within the limits of the Conditional Use
Permit (CUP) issued by the Cowlcil on October 23, 2001. Therefore the increase to 18 tables
would not be peilnitted at the current location under its current C[JP. It would not take effect at
any other location until a new CUP is issued.
Staff submitted these revisions to the California Attorney General who is responsible for
oversight of non-Indian gaming within the State of California. The Attorney GeneraPs Office
approved the amendments and has stated they conform with the California Gambling Control
pct. A copy of the AC's letter is attached to this agenda statement. No further increases in the
number of gaming tables would be permitted until state law is modif ed.
The amendments permit the Village Club to have an additional two gaming tables from sixteen
to eighteen under a consolidated license that the Village Club possesses. In addition, the only
other amendments involve the break-up of specific gaming tables within the maximum tables
number. Under the proposed amendments, a maximum number of nine tables can be used to
conduct Class II or Class 1 A games (backline betting games such as "par gow poker," "no bust
21st century blackjack 4.0" and all versions of "21st century blackjack") and a maximum of nine
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3/I3/12, Item ~ j
Page 3 of 3
tables will be allowed to conduct Class 1 games (non-backline betting games such as "caribbeau
stud pokes", "hold `em poker", "pineapple poker" or "pineapple high-low split') at any one time.
The current Gaming Plan permits only three Class II tables and four Class lA tables. Nine Class
I tables ve already authorized per the Plan.
7 he Police Department and the City Managers Office have also been working on this item and
are supportive of Village Club's regaest. These changes are concephial at this point because
Village Club does not currently have the land use approvals to implement them. In conjunction
with the CUP process the Police Department will review the security plan to be submitted by the
Village Club as required by the Gaming Plan to ensure that sufficient security standards are met.
The proposed amendments can be adopted by resolution after a public hearing pursuant to Chula
Vista Municipal Code Section 5.20.001.
FISCAL IMPACT
There will be an increase in the amount of gaming table license fees that Village Club is
obligated to pay once they are able to increase to 18 tables. Currently, Village pays $2,500 per
quarter per Class 1 table, X3,750 per Class lA table and $5,000 per Class II table. These fees
will increase o^ the total number of gaming tables once land use approvals are obtained and
Village Club begins operating with the increased number of tables.
ATTACHMENTS
1. California Attorney General's letter approving amendments to the Chula Vista Gaming Plan;
2. Resolution;
3. Copy of amendments to the Chula Vista Gaming P1aJi (red-lined for CotmciPs review and
attached to Resolution).
Prepcn~ecl hr Chance Hmvkins, Depuh~ CIq~ Alrornty, Cite A(rorney's Office
J'~AUUrneyVChancc I Iv wluns~Stall Rcps & Ords\stl:ReprLG~ming.Plan.Revlsinn-2012doc
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KAMALA 1). HARRIS
Attorney Creneral
StatenfCutifornia =r~~.)'
DEPARTMENT OF JUSTICE ` ,/
BUREAU OF' GA~7AF.ING CON'FROd.
F'. O. Box Ifi80?4
Socramcnto, CA 9SR16-60?A
Public (91G) 227-?363
1'az: (91E]?27-7937
January 2f1, 2012
Mr. Chance C. fiawkins
Deputy City Attorney
Chula Vista City Attorney's Office
276 Fourth Avenue
Chula Vista, California 91910
Ile: Ci~of Chula Vista's Gatnblin~ Ordinance
Dear Mr. 1-Iawkins:
On December 6, 2011, the'Bureau of Gambling Control (Bureau} received the proposed
amendment to portions of the City's ordinance entitled Chula Vista Gaming Plan in accordance
with Business and Professions (B&:P) Code section 19961.1. The Bureau has reviewed the
following amendment regarding the increase in the maximum number of gaming tables fiom 1G
to 78 in each gambling establishment.
The Bureau's review determined that the proposed changes to increase the maximum
number of gaming tables from 16 to '18 in each gambling establishment per B&P Code section
19961.06, and the proposed language under section 3.x.4, as it relates to Class I, Class II, or
Class 1.A games, complies with applicable provisions of the Gambling CuntroI Act.
Upon approval and adoption of the proposed amendments, please provide fhc Bureau
with a signed, certified copy of the amendments. If you have any questions, please contact
Analyst Brenda Wcygandt of my staff at (976) 227-Sb81. Thank you for your cooperation in this
matter.
Sinceicly,
~;,'i~1'd~EiCE.~ C~SU a'lCtt~.,
~3:?f NORM PISRCl;
Assistant Burcaa Clzief
Bureau of Gambling Control
For KAMALA D. HARRIS
Attorney General
Attachment 1
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RESOLUTION NO. 2009-
RESOLUTION OF THE CHULA VISTA CITY COUNCIL
APPROVING AMENDMENTS TO THE CHULA VISTA
GAMING PLAN TO INCREASE MAXIMUM NUMBER OF
GAMING TABLES FROM 16 TO 18 AND INCREASING THE
NUMBER OF TABLES FOR "CLASS lA/II" TO 9
WHEREAS, the City Council of the City of Chula Vista is authorized to make
amendments to its Gaming Plan by a majority vote by resolution after a public hearing pursuant
to Chula Vista Municipal Code Section 5.20.001; and
WHEREAS, the Village Club cardroom has requested that the City of Chula Vista
make amendments to the Gaming Plan that would increase the number of gaming tables from 16
to 18 and within this amount increase the number of Class lA/II tables to 9; and
WHEREAS, on January 20, 2012, the California Attorney General's Office approved
the amendments to the Gaming Plan which were submitted by the City Attorney's Office; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista adopts the amendments to its Gaming Plan in substantially the form attached hereto as
Exhibit A to this Resolution.
Presented by:
Chance C. Hawkins
Deputy City Attorney
Approved as to form by:
Glen R. Googins
City Attorney
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CHULA VISTA GAMING PLAN
In accordance with Chapter 5.20 of the Chula Vista Municipal Code (the
"Gaming Code"), this document shall serve as the gaming plan for the City of
Chula Vista (the "Gaming Plan"). This Gaming Plan was adopted on February
13, 1996, after a public hearing, pursuant to city council Resolution No. 18212.
The Gaming Plan has been amended as follows: (1) on January 13, 1998
pursuant to Resolution No. 18862; (2) on November 10, 1998 pursuant to
Resolution No. 19251; (3) on September 26, 2000, pursuant to Resolution No.
2000-332; (4) on October 6, 2009, pursuant to Resolution No. 2009-238; and 5
on , 2012 pursuant to Resolution No. 2012- .The modifications
contained in such amendments shall be deemed effective as of the dates of their
adoption.
Effective upon its adoption, this Gaming Plan shall implement, in its
entirety, Subchapter 2 of the Gaming Code. In the event of any inconsistency
between this Gaming Plan and the Gaming Code, the terms and conditions of
this Gaming Plan shall govern. Except to the extent that this Gaming Plan
expressly modifies or is otherwise inconsistent with the Gaming Code, the
Gaming Code shall remain in full force and effect.
This Gaming Plan is intended to deal only with the subject of cardrooms.
No other types of gaming permitted by the code, subject to the adoption of a
gaming plan with respect thereto, shall be permitted or governed hereby. To be
permitted, such other types of gaming must be the subject of further action by
resolution of the city council to amend or add to this Gaming Plan.
CARDROOMS
1. Cardroom Defined.
For the purpose of this Gaming Plan, a "cardroom" is defined to be any
space, room or enclosure furnished or equipped with a table or tables used or
intended to be used, either exclusively or in conjunction with another business or
activity, as a card table for the playing of cards and similar games, and the use of
which is available to the public.
2. Licensing.
2.1 License Required to Operate Cardroom -Individual Licensees
Must be 21 Years or Older.
A license from the city issued pursuant to the Gaming Code or this
Gaming Plan, is required for any person, group of persons, partnership,
corporation, or any other entity or organization (each a "Person" hereinafter) to
engage in or carry on, or to maintain or conduct, or cause to be engaged in,
Attachment 3
17-6
carried on, maintained or conducted, any cardroom in the city. Any such activity
conducted without such a license, or otherwise in non-compliance with the terms
of the Gaming Code, this Gaming Plan, or any and all other applicable federal,
state and local laws and regulations shall be unlawful. No license shall be
issued to any individual Person under the age of twenty-one years.
2.2 Number of Licenses Permitted -Existing Licenses.
The number of licenses authorized to be issued or held, in the aggregate,
under the provisions of this Gaming Plan shall be limited, based upon the
population of the city according to the certified determination thereof by the state
department of finance. The number of licenses so authorized may not be more
than two (2). All such licenses shall be issued and held in accordance with the
provisions of this Gaming Plan; provided, however, any Person holding a license
or licenses to conduct cardroom operation upon the effective date of this Gaming
Plan may continue to hold such license or licenses subject to the terms and
conditions set forth herein. For purposes of determining the number of licenses
which are authorized to be issued by the city hereunder, any two licenses which
are "consolidated" pursuant to Section 2.6 hereof shall still be treated as being
two separate licenses counted against the total number authorized.
2.3 Tyoes of Licenses - Class I and Class I I.
2.3.1 In General. There shall be two types of cardroom licenses:
Class I and Class II. The characteristics, rights, obligations and limitations
attributable, respectively, to a Class I or Class II licenses are set forth throughout
this Gaming Plan. Subject to all such provisions, in general, (a) a Class I license
shall permit the playing of all games permitted by the state attorney general to be
within the permissible subject of local licensing by California cities, except games
involving "back-line" betting; and (b) a Class II license shall permit the playing of
all games permitted under a Class I license, and shall also permit games
involving back-line betting.
2.3.2 All licenses issued by the city shall initially be Class I
licenses. In order to convert a Class I license into a Class II license the holder of
a Class I license (a) must have continuously operated a cardroom under its
Class I license within the city for a period of three (3) years at a fixed location;
and (b) must apply with the city and receive prior approval from the city for such
conversion in accordance with the application procedures set forth in Section 2.4
hereof. below.
2.4 Application/Issuance Procedure.
2.4.1 Any Person desiring a cardroom license must submit an
application therefore to the chief of police. Such application shall be on a form
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issued by, or otherwise approved in advance by, the chief of police. Such
application shall include, in addition to any other information required by the chief
of police, (a) the true names and addresses of any and all Persons currently, or
contemplated to have a "financial interest" in the cardroom operation proposed
to be licensed; (b) the past criminal record, if any, of any and all such Persons;
(c) the fingerprints of any and all such Persons; (d) the proposed location of the
cardroom; and (e) anon-refundable fee, as presently designated, or as may in
the future be amended, in the Master Fee Schedule, to cover the cost of
processing the application and of any required investigation of the applicant.
Upon the issuance of a cardroom license, the chief of police may authorize the
refund of the investigation portion of the application fee to any Persons who were
not subject to investigations.
2.4.2 Each cardroom license application shall be totally
independent and unassociated with any other application being submitted for the
purpose of obtaining such a license. No applicant requesting a license pursuant
to this section may have a financial interest, or any other interest (as described in
Section 2.4.3 hereof) in any other cardroom license, or application pending
therefore.
2.4.3 For purposes of this Section 2.4 and the Gaming Plan, the
term "financial interest" shall mean any and all direct or indirect ownership,
creditor or other interests, in a cardroom license, the cardroom business
operated thereunder, the assets thereof,: or the revenues generated thereby.
Such an interest shall include, without limitation, any and all interests held by
building owners, landlords, tenants, equipment or fixtures owners, lessors or
lessees, creditors, lenders or guarantors related in any way to the ownership,
financing or operation of the cardroom; and (b) a parent, spouse, sibling or child
of an individual Person holding a direct, majority or controlling ownership interest
in a license or cardroom shall also be deemed the holder of a "financial interest"
for purposes of this Section and this Gaming Plan.
2.4.4 Any new or revoked cardroom license otherwise qualified for
issuance may be issued during the period of May 1 through June 30 following
the availability or revocation date of such a license. After the expiration of this
period no further licenses shall be issued until the following May 1 through June
30 period. In the event that there are applications in excess of the number of
licenses available in accordance with the limitations set forth in Section 2.2
hereof, a license may be issued to the most qualified of such applicants in
accordance with a procedure established by the city: Notwithstanding the
foregoing, the city shall decide, in its sole discretion, as to whether to issue any
cardroom license authorized hereunder, and whether or how to condition such
an issuance; furthermore, the city reserves the right, for any reason whatsoever,
to reject any and all applications for a cardroom license hereunder.
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2.5 Transfers.
2.5.1 In General. Any license issued pursuant to the Gaming
Code or this Gaming Plan, a cardroom operated thereunder, or any direct or
indirect interest therein, may be transferred, but only in strict accordance with the
terms and conditions of this Section 2.5. Transfers governed by this section
shall include, without limitation, any and all sales, leases, conveyances,
assignments, grants, pledges, gifts, devises, donations and/or similar transfers
by a Person of any or all of such Persons, director indirect, ownership interest in
a license or cardroom operated thereunder, or "financial interest" in a license or
cardroom operated thereunder, as such concept is defined in Section 2.4.3
hereof. Such transfers shall include, without limitation, (a) a transfer of all or any
shares by a shareholder in a corporate licensee; (b) the transfer of all or any
partnership interest by a partner in a partnership licensee; (c) the transfer of all
or any portion of a controlling shareholder or partnership interest in an entity
which itself holds a direct or indirect ownership or financial interest in a license or
cardroom; and (d) a transfer of a substantial portion of the assets of a Person
holding a license or a cardroom operated thereunder.
2.5.2 Application Required. A license may only be transferred to
a Person that submits an application for approval by the chief of police and
receives approval from the chief of police in accordance with the procedures set
forth for the issuance of a licenses set forth in Section 2.4 hereof. Fees for the
application and investigation relating to transfers are addressed in Section 2.5.8
herein.
2.5.3 Approval Required. Any and all proposed cardroom license
transfers must receive (a) prior written approval of the chief of police, which
approval may be withheld in the sole discretion of the chief of police, (b) approval
by the State of California Division of Gambling Control; and (c) the ratification of
the city council, which ratification may be withheld in the sole discretion of the
city council. Such approval and/or ratification may be conditioned as the acting
parties deem appropriate, and may be based, but is not required to be based,
entirely or in part on the assessment by the chief of police or, as applicable, the
city council, of the character of the proposed licensee, or on the opinion of the
approving or ratifying entity, that there appears to be good cause why such
Person should or should not operate a cardroom. Notwithstanding the foregoing
in the event of a transfer directly caused by the death or divorce of a Person
holding a financial interest in a license, the "prior approval" requirement, above,
shall be amended to require that approval of the resulting transferee be obtained
by no later than sixty (60) days following the death or divorce causing such
transfer. The time limit may be extended provided the resulting transferee has
submitted its application and such additional information as may have been
requested with the licensing authorities in a timely fashion.
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2.5.4 Three Years Operation Required Before Transfer. With
the exception of those licenses which have been issued prior to September 1,
1992, no license may be transferred unless and until the holder thereof has been
operating a cardroom governed by such license for three (3) years at a fixed
location in the city. Licenses issued prior to September 1, 1992 may not be
transferred unless and until the holder thereof has been operating a cardroom
governed by such license for one (1) year at a fixed location within the city.
2.5.5 Non-Complying Transfers. In the event of a purported
transfer of a license which does not comply with the terms of this Section (a) the
purported transferor shall be subject to monetary penalties as provided in
Section 4.2 hereof; (b) the purported transferee shall have no rights to operate a
cardroom in the city under the authority of such license; (c) the license involved
shall be subject to revocation by the city as provided in Section 4.3 hereof; and
(d) the transfer may otherwise be declared null and void.
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2.5.6 Special Rules for Transfers of Class II Licenses.
2.5.6.1 Except as otherwise provided herein, upon the
transfer, either all at once or in a series of transfers, of a "material or controlling
financial interest" (define below) in a Class II license, the Class II license which is
the subject of such transfer shall immediately revert back to a Class I license. A
Class II license so reverted may be converted back to a Class I I license, but only
in accordance with the provisions of Section 2.3.2 hereof.
2.5.6.2 Notwithstanding the foregoing, a material or
controlling interest in a Class II license may be transferred without reversion of
the subject Class II license to Class I status subject to the following terms and
conditions:
(a) The transfer must be to a "pre-qualified
transferee". For purposes of this Section, a "pre-qualified transferee" shall be
defined as a Person on record with the chief of police as a Person holding a
financial interest in the license, which, with the prior knowledge of the chief of
police, acknowledged in writing thereby, has been substantially responsible for
the management and operations of the licensed card room continuously for a
period of three (3) years.
(b) In addition to the agreement required pursuant to
Section 5.5 hereof, any pre-qualified transferee shall enter into a written
agreement with the city whereby such Person, on behalf of itself, any successors
or assigns thereof, and any and all parties with a financial interest in the license
or the cardroom operated thereunder, agrees that (a) the Class II status of the
license to be transferred thereto shall be temporary and subject to reversion to
Class I status in accordance with this Section; and (b) any action taken by the
City to revert the Class II license to a Class I license shall not constitute a taking
of any property or other interest held by such Person(s); and (c) such Person(s)
waive and agree not to pursue any and all claims or other action against the City
in connection with a City decision to revert the Class I I license to a Class I
license.
( c) Until such time that Class II Games have been
operated continuously by the pre-qualified transferee for a period of one (1) year
following the effective date of the transfer of the Class II license, or such longer
period as the Class II license, or such longer period as the chief of police may
require (the "Temporary Class II Status Period"), the Class II statues of the
license shall be temporary, and therefore subject to reversion to a Class I license
upon a determination by the chief of police, in his/her sole discretion, for any or
no reason whatsoever, that the transferee should be required to first operate as
a Class I licensee prior to being permitted to operate as a Class II licensee in
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accordance with the terms and conditions of Section 2.3.2 hereof. Such
determination may be made at any time within thirty (30) days after the expiration
of the Temporary Class II Status Period.
(d) Pre-qualification of a potential transferee
hereunder shall not constitute City approval of a transfer to such potential
transferee and any such transfer shall remain subject to the provisions of Section
2.5 hereof.
2.5.6.3 For purposes of this Section, the City shall
determine, in its sole discretion, what constitutes a "material or controlling
financial interest"' provided, however, in general, a transfer of a financial interest
for purposes of pre-qualifying a Person under Section 2.5.6.2 shall not be
considered the transfer of a "material or controlling financial interest".
2.5.7. Except as otherwise provided herein, upon the transfer,
either all at once or in a series of transfers, of a material or controlling financial
interest in a license or the card room operated thereunder, the holder of the
license which is the subject of such transfer shall be considered to be new holder
of such license subject to any and all provisions hereunder applicable thereto.
2.5.8. Full Cost Recovery for Administrative Costs Associated
with Transfer. Any person submitting an application for transfer of a license
shall be responsible for payment to the City of all actual administrative costs
incurred by the City including the cost of staff time, at the City's full cost recovery
rate, associated with the investigation of the application for a license transfer and
review of transfer documents. The chief of police shall estimate the cost of City
staff and other administrative costs in connection with an application and the
Person shall deposit such amount at the time df submitting the application for
license transfer to the chief of police. If actual costs incurred exceed the initial
deposit the chief of police may require the applicant to make additional deposits
to offset costs incurred or to be incurred by the City. If the amount estimated is
in excess of the cost incurred, the difference will be refunded to the applicant at
the end of the City's review.
2.6 Consolidation.
2.6.1 In General. Notwithstanding any other section of this Gaming
Plan to the contrary, the holder of a Class I or Class II license may acquire one,
but only one, additional Class I or Class II license, subject to the consolidation
rules and procedures of this Section 2.6. Under no circumstances may any
Person acquire or hold more than two licenses.
2.6.2 Required Qualifications/Procedures. In order to acquire
an additional license, an existing license holder (a) must have continuously
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operated a cardroom under its existing license within the city for a period of three
(3) years at a fixed location; and (b) must apply with the city and receive prior
written approval from the city for such acquisition in accordance with the rules
and procedures set forth in Section 2.4 hereof regarding the initial issuance of
licenses. If the additional license is to be acquired from another existing license
holder, such application shall also be made in accordance with the rules and
procedures governing license transfers set forth in Section 2.5.3 hereof.
2.6.3 Effect of Consolidation; Deemed Consolidation. If an
application for the acquisition of an additional license is granted, the two licenses
held by the applicant shall become "consolidated". In addition, licenses shall be
deemed to be "consolidated" in the event that the same Person holds, or comes
to hold, a "financial interest" (as defined in Section 2.4.3 thereof) in such licenses
or the card rooms operated thereunder. Under a consolidated license, the
maximum number of tables permitted to be operated is ^~,~r~i htq een (186),
subject to any additional or contrary terms and conditions set forth in Section 3.5
and/or other provisions of this Gaming Plan. All tables operated under a
consolidated license must be operated in the same location.
2.6.4 Class I with Class II Consolidations. In the event that a
Class I license is consolidated with a Class II license, the following rules shall
apply: (a) if the previous owner of the Class II License retains majority ownership
and control over the consolidated license, the full benefits and burdens
hereunder of Class II status shall apply to all the card tables operated under
such consolidated license (b) if the previous owners of the Class I License
retains majority ownership and control over the consolidated license, the
consolidated license shall retain Class I status and the requirements for
conversion to a Class II License under Section 2.3.2 of this Gaming Plan shall
continue to apply.
2.7 License Tax.
2.7.1 In General. There shall be a license tax imposed on any
licensed cardroom within the city in accordance with the terms of this Section
2.7. The license tax is imposed for purposes of generating revenues to the
general fund of the city and for purposes of regulation. The tax shall be imposed
against the number of tables that are licensed by the city pursuant to the terms
of this Gaming Plan that are also permitted to be operated by the City at the
location where the license is being utilized pursuant to the City's land use laws
and regulations. The tax shall be imposed based upon the maximum number of
tables so licensed and permitted based upon the class of license issued with
respect thereto, regardless of the number of tables which may actually be
operated on any given day or the class of game conducted thereon.
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2.7.2 Amount of Tax Rate. The license tax to be assessed and
collected on each licensed cardroom shall be the applicable "base rate" tax
determined as follows:
2.7.2.1 Base Rate:
a. Class I -Non-consolidated: The base license tax for
card tables licensed under a single, non-consolidated Class I license shall be
$1,500 per card table per quarter for a cardroom authorized to operate six (6)
days per week; and $1,750 per card table per annual quarter for a cardroom
authorized to operate seven (7) days per week.
b. Class I -Consolidated: The base license tax for card
tables licensed under a consolidated Class I license shall be $2,500 per card
table per annual quarter.
c. Class 1A -Higher Level Betting: The base license tax
for such Class 1 A card tables shall be $3,750 per card table per annual quarter.
Such games may be referred to herein as "Class 1A" games.
d. Class II: The base license tax for each card table
licensed to play Class II games under a Class II license shall be $5,000 per table
per annual quarter. For example, a single non-consolidated Class I license is
converted to a Class II License, the base rate for 6 of the 8 licensed tables shall
be determined by the applicable Class I rate, and the base rate for the remaining
two tables shall be the Class I I base rate. This rate shall apply to the maximum
number of Class II tables licensed and permitted to be operated at the cardroom
location regardless of whether or not Class II games are actually being played at
such tables.
2.7.3 Procedures for Payment of Tax.
2.7.3.1 Advance Payment. The license tax assessed
hereunder shall be payable quarterly in advance by no later than the day falling
fifteen (15) days prior to the first day of each calendar quarter.
2.7.4 Audit rights. The City shall have the right to conduct an
independent audit of licensee's accounting records at any time upon three (3)
days prior written notice to licensee. The audit shall be performed by a party
designated by the City; subject to the reasonable approval of licensee. If the
City elects to conduct such an audit, the licensee shall be responsible for
reimbursing City costs incurred in connection therewith. The licensee's
reimbursement obligation under this Section shall not exceed $10,000.00 per
any twelve (12) month period.
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2.7.5 Tax Receipt. The finance director shall issue a receipt for
each licensed cardroom and such receipt shall be displayed on the premises
during the full term for which such receipt was issued.
2.7.6 Annual Increase in Base License Tax Rate. The base rate
license tax amounts set forth in Section 2.7 shall be increased by five percent
(5%) per year. The first increase shall take effect on July 1, 2001 and each
subsequent increase shall take effect on each July 1 thereafter.
Operating Limitations and Conditions.
3.1 City Land Use Regulations Shall Control.
All cardrooms and card table operations shall be subject to the city's land
use regulations. Notwithstanding any provision in this Gaming Plan to the
contrary, no cardroom operations shall be permitted without the prior acquisition
of any and all necessary approvals and permits from the city in connection
therewith, and any cardroom operation with such approvals and permits shall
operate in strict compliance with any and all terms and conditions thereof.
3.2 Games Permitted.
3.2.1 Class I License: Subject to the terms and conditions of this
Gaming Plan and the Gaming code, the holder of a Class I cardroom license
shall be permitted to operate a cardroom which conducts all card games which
were determined by the attorney general to be within the permissible subject of
local licensing by California cities, but that do not involve "backline betting", and
that have been approved by the chief of police as of September 26, 2000. The
games permitted under this section shall be referred to herein from time to time
as "Class I Games". A list of permitted Class I Games shall.. be maintained by
the chief of police..Class I Games include, but are not limited to, the game of
"caribbean stud poker", "hold 'em poker", "pineapple poker" or "pineapple high-
low split". A holder of a Class I or Class II license may petition the chief of police
to add games to this list, but not more than once in any consecutive twelve
month period. The chief of police shall have the right to approve or disapprove
any proposed new games in his/her sole discretion, and such decision shall be
final.
3.2.2 Class II License: subject to the terms and conditions of this
Gaming Plan and the Gaming code, the older of a Class II cardroom license
shall be permitted to operate a cardroom which conducts all card games
permitted by a Class I license (as described in Section 3.2.1, above,), plus those
card games which involve backline betting. Such games shall be referred to
herein from time to time as "Class II Games", and include "pai gow poker"
(considered a "Class II Game"), "no bust 215 century blackjack 4.0" and all
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versions of "215` century blackjack" (which are considered "Class 1A" games but
are included under a Class II License) For purposes of this Gaming Plan, back-
line betting may be conducted, as that term is understood pursuant to Business
and Professions Code Section 19843, and provided that the player-dealer
position is continuously and systematically rotated amongst the players. A list of
permitted Class II games shall be maintained by the chief of police. A holder of
a Class II license may petition the chief of police to add games to this list, but no
more than once in any consecutive twelve month period. The chief of police
shall have the right to approve or disapprove any proposed new games in his/her
sole discretion, and such decision shall be final.
3.2.3 Posting of Permitted Games -Game Being Played.
There shall be posted in every cardroom in letters plainly visible from all parts
thereof, signs stating which games have been approved for play at said
cardroom. In addition to the foregoing, each table shall identify by prominent
sign located thereon the game which is currently being played at said table.
3.3 Game Rules.
3.3.1. In General. No permitted game may be played in a
cardroom unless and until a written set of rules ("Games Rules") for such a
game has been submitted to the chief of police and approved thereby. Said
approval may be amended, conditioned or revoked from time to time in the sole
discretion of the chief of police. Each and every permitted game must, at all
times, be played strictly in accordance with the approved and posted Game
Rules applicable thereto. Variations of a game, unless specifically described in
the Game Rules, shall not be allowed.
3.3.2 Posting of Game Rules. A copy of the approved Game
Rules showing thereon the approval of the chief of police shall be posted in the
cardroom in a conspicuous place readily available to the patrons or prospective
patrons and visible from any seat at any card table on the premises.
3.4 Hours and Days of Operation.
Licensed cardrooms may operate seven days per week, twenty-
fourhours per day subject to any and all land use conditions imposed by the City
with respect to a specific site of operation.
3.5 Maximum Number of Tables.
3.5.1 Class I -Non-Consolidated. The maximum number of
tables that may be operated under a single, non-consolidated Class I license
shall be eight (8).
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3.5.2 Class I -Consolidated. The maximum number of tables
permitted under a consolidated Class I license shall be nine (9) during gaming
operations.
3.5.3 Class II -Non-Consolidated. The maximum number of
tables that may be operated under anon-consolidated Class II license shall be
eight (8). Of that eight, only two (2) shall be allowed to conduct Class II games.
3.5.4 Class II - -Consolidated. The maximum number of tables
that may be operated under a consolidated Class II license shall be eighteen
^~e~^ ',~. Of the ^:,~t~~eighteen (18), a maximum of t#~ree-nine 9
{3}-tables shall be allowed to conduct Class II or Class 1A games at any one
time,
at-aay <>ne-tirne, and a maximum of nine (g) tables shall be allowed to conduct
Class I games at any one time.
3.6 Maximum Number of Players Per Table.
3.6.1 Class I Tables. No more than ten (10) players shall be
permitted at any one card table conducting Class I games. Only persons seated
at the card table as players shall be permitted to bet.
3.6.2 Class II & 1 A Tables. No more than eight (8) seated players
with one (1) additional standing player per seat "backline" betting behind the
seated player, not to exceed a total of sixteen (16) players (standing and sitting)
per table shall be permitted at any one card table conducting Class II or 1A
Games.
3.7 Maximum Bets and Betting Rules.
3.7.1 In General. There shall be no limit on bets or wagers,
subject to chief of police review as set forth below.
3.7.2 Chief Of Police Discretion. Maximum bets and betting
rules may be modified upon review by the chief of police, in his/her sole
discretion and control pursuant to a procedure to be implemented and
administered by the chief. The chief of police's decision shall be final.
3.7.3 Adequate Funds on Hand/Payment Policy. At all times,
licensee must have sufficient proceeds to reimburse any and all demands made
upon said licensee for the payment of winnings by a cardroom patron. In the
alternative, and subject to approval of the chief of police in his/her sole
discretion, said licensee may have a written policy for full payment of winnings to
a cardroom patron clearly posted in a place visible to cardroom patrons.
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3.8 Maximum House Charges Per Hand - -Posting Required.
3.8.1. Approval. All house charges per hand and any proposed
charges subject thereto shall be subject to the approval of the chief of police
prior to being imposed.
3.8.2 Posting Required. A copy of all schedules of house
charges shall be provided to the chief of police and shall be clearly posted in
each licensed cardroom.
3.9 Work Permits and Identification Badges Required For Managers
Key Employees and Employees.
3.9.1 Work Permit Required. Unless other provided herein, prior
to commencing work at a cardroom, each proposed key employee or employee
of a cardroom, if such Person is other than the Person or Persons whose names
appear on the application for the cardroom license, must obtain a work permit
from the chief of police.
3.9.2 Temporary Probationary Work Permit. Temporary
probationary work permits may be summarily issued upon payment of the
requisite application fee for food and beverage servers, janitorial staff and
kitchen workers pending the issuance of a regular annual work permit. Such
temporary probationary work permits may be subject to immediate summary
revocation with or without cause by the chief of police, and shall not be valid for
more than thirty (30) days and shall automatically expire upon issuance of the
regular annual work permit or upon denial of the regular annual work permit
application by the chief of police. The fee for temporary probationary work
permit shall be non-refundable and in addition to the fee for the regular annual
work permit application.
3.9.3 Application Process. Each proposed key employee or
employee shall submit an application for the required work permit to the chief of
police. Such application shall be on a form issued by, or otherwise approved in
advance by, the chief of police. Such application shall include, in addition to any
other information required by the chief of police, (a) the past criminal record, if
any, of such Person; (c) the fingerprints of such Person; and (d) a non-
refundable fee, as presently designated, or as may in the future be amended, in
the Master Fee Schedule for cardroom applications, to cover the cost of
processing the application and of any required investigation of the applicant
including a criminal background check to be performed by the police department
at the applicant's expense. The work permit, when issued, shall be valid for one
(1) year. Any renewal must also be approved by the chief of police and will be
subject to a criminal background check to be performed by the chief of police at
the applicant's expense. The chief of police may deny the initial approval or
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renewal of a work permit if, in the chief of police's opinion, (1) in the case of a
proposed key employee the applicant therefore should not be permitted to act as
key employee or employee in lieu of management by the licensee of the
cardroom; and (2) in the case of a proposed employee the applicant therefore
should not be permitted to be employed in a cardroom.
3.9.4 Identification badges to be worn. Every key employee and
employee of a cardroom shall, at all times when present in such cardrooms,
wear an identification badge containing such Person's photograph, age, address
and description of such individual. The identification badges shall be worn at
chest level.
3.9.5 Limitation of Discretion to Issue Work Permit. In addition
to any other restrictions provided by law, no work permit shall be issued to any
other restrictions provided by law, no work permit shall be issued to anyone who
is disqualified from holding a state gambling license, for any of the reasons
specified in California Business and professions Code Section 19850.
3.9.6 Denial of an application for a Work Permit. Any
application for a work permit shall be subject to objection by the State of
California Division of Gambling Control (hereafter Division). If the Division
objects to the issuance of a work permit it shall be denied. Such a denial my be
reviewed in accordance with the Gambling Control Act (Business and
Professions Code Section 19801 et seq.).
3.9.7 Employment of Persons to Stimulate Play Prohibited.
3.9.7.1 It shall be unlawful for any licensee, key employee,
independent contractor, or employee of a cardroom to engage or persuade any
Person to play cards for the purpose of stimulating play where such person is to
receive any reward, whether financial or otherwise, present or promised; or
where such reward or revenue is to be diverted to the licensee, a manager or
employee except that the licensee may use employee proposition players in
strict conformity with the provisions of Section 3.9.7 below.
3.9.7.2 Licensee may extend credit to a player in an amount
not to exceed ($20,000) at no interest subject to the following:
(a) Only chips may be advanced, never money;
(b) The patron must demonstrate the present ability to pay;
(c) When a patron requests chips on credit, the patron is given a credit
application to complete;
(d) The person issuing the credit shall be required to positively identify
the patron by requesting valid identification. The Owner-operator
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shall maintain a copy of the creditor's driver's license or state-issued
photo identification card for purposes of identification;
(e) The original of the credit application and the copy of the driver's
license or photo identification card shall be maintained in the Owner-
operator's files until all outstanding advances have been repaid. The
Owner-operator shall produce a copy of such records to the Chula
Vista Police Department upon request;
(f) The Owner-operator decides whether to grant credit, and if credit is
granted, at the same time determines the credit limit and terms for
repayment;
(g) The primary criteria for granting credit is whether the patron currently
has funds in a bank to cover the advance;
(h) At the time credit is granted the amount and repayment terms are
entered on the application and in the computer, and so are available
to the cashier;
(i) When the patron requests chips, the cashier checks the account on
the computer and makes sure that the patron does not exceed the
predetermined credit limit. The person issuing the credit shall also
positively identify the patron by requesting valid identification;
(j) When the patron cashes out his chips, the amount owing is collected
first from any money going to the patron;
(k) The patron shall be provided a receipt or statement recording each
transaction;
(I) The Owner-operator shall maintain a written record of all outstanding
credits issued pursuant to this policy. Such record shall include the
full name and address of each borrower, the amount of credit
advanced, the date the credit was issued, the collateral posted (if
any), a listing of all payments made and the amount of any unpaid
balance. The Owner-operator shall produce a copy of the record to
the Chula Vista Police Department upon request;
(m) As a safeguard for responsible gambling, once the advances to a
patron equal the credit limit, the patron shall not increase the limit until
the amount owing is paid in full;
(n) All credit extended under this policy shall be reported appropriately for
state licensing purposes; and
(o) No credit will be extended to card room employees or temporary
license holders.
3.9.8 Employee Proposition Players.
3.9.8.1 A licensee shall use only employees as proposition
players.
3.9.8.2 A licensee shall not allow, permit, or suffer more
than two (2) proposition players to play at a card table at any given time, subject
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to modification by the chief of police in his/her sole discretion. The chief of
police's decision shall be final.
3.9.8.3 The licensee shall not provide any compensation,
reward, credit, chips, or any other thing of value or representation of value to an
employee who acts as a proposition player other than salary or wages earned for
the time the employee works as a proposition player. This prohibition does not
prohibit a proposition player from receiving the same employment benefits as
apply to all other employees of the licensee; provided however that no employee
or independent contractor shall be paid in chips.
3.9.8.4 A proposition player shall prominently display an
identification badge pursuant to Section 3.9.3 at all times while present on the
cardroom premises.
3.10 Intoxicating Beverages.
3.10.1 Intoxicating Beverages Permitted. Upon application to
and approval by the chief of police, in his/her sole discretion and control and
pursuant to a procedure to be implemented and administered by the chief,
alcoholic beverages may be served and consumed in a cardroom from the hours
of 12:00 PM to 2:00 AM. At all times that alcoholic beverages are served, food
must also be made available and the cardroom shall comply with its ABC On-
Site General Safe (Type 47) Eating Place license, where 50 percent or more of
all sales must be food. The chief of police's decision concerning the
consumption and service of intoxicating beverages shall be final. Additionally,
licensee shall comply with all applicable state and local laws, rules and
regulations, including the city's land use regulations, pertaining to the sale and
service of intoxicating beverages.
3.10.2 Key Employee/employee Consumption Prohibited. The
drinking of any intoxicating beverage by any key employee, independent
contractor or employee of a card room while on duty is prohibited. The licensee
of a cardroom shall take all necessary and appropriate steps to assure
compliance with this section.
3.10.3 Permitting Intoxicated Persons to Play in Games
Prohibited. No licensee, key employee, independent contractor or employee
shall permit any Person to play in any game or at any time which such Person is
under the influence of an intoxicating beverage, narcotic, or drug.
3.10.4 Permitting Intoxicated Persons on Premises
Prohibited. No licensee, key employee, independent contractor or employee
shall permit any Person to enter a gambling establishment at any time when
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such Person appears to be under the influence of an intoxicating beverage,
narcotic or drug.
3.11 Minors Prohibited from patronage or Employment.
No person under twenty-one years of age shall be employed at a
cardroom, allowed to play games at a cardroom, or permitted in a cardroom area
where games are being played. Minors may be allowed in non-gaming areas but
only subject to the approval of the chief of police in his/her sole discretion whose
decision shall be final.
3.12 Signs to be Posted.
Licensee shall comply at all times with the sign requirements set
forth in this Gaming Plan including, without limitation, Sections 3.2.3, 3.3.2, and
3.8.3 hereof, and any and all other signage or posting requirements contained in
applicable federal, state or local laws, rules and regulations.
3.15 Licensee Responsible for Compliance and Supervision of
Operations.
The licensee of a cardroom shall be responsible for assuring that
any cardroom operated under such license is operated in strict compliance with
the terms of this Gaming Plan, the provisions of the Penal Code of the State of
California and any and all other applicable federal, state, and local laws, rules,
regulations, or permits. All cardrooms and/or card tables shall be supervised by
the operator or an employee of the operator of the cardroom, to assure such
compliance. Any violation of the cardroom operating limitations and conditions in
this Section 3, or elsewhere in the Gaming Plan, whether or not caused by the
licensee or any employee thereof, shall be considered a violation by the licensee
of the terms and conditions of its license, and therefore subject to the City's
enforcement rights and policies set forth in Section 4 hereof.
3.16 Patron Safety and Security.
3.16.1 Each licensee shall submit a written patron safety and
security plan, designed to protect patrons and other persons who are lawfully on
the premises of the permitted cardroom, to the chief of police for his/her approval
prior to opening for operations.
3.16.2 The chief of police, in his/her sole discretion and control,
shall have the right to require amendments to the patron safety and security plan
that are, in his or her judgment, reasonably necessary to protect the public
peace, health, safety, and general welfare.
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3.16.3 Licensee shall be responsible for payment to the City of all
actual administrative costs incurred by the City including the cost of staff time, at
the City's full cost recovery rate, associated with the oversight of the patron
safety and security plans required by this section, including the administrative
costs associated with the review and approval of a patron safety and security
plan or any amendments thereto which may be mandated by the chief of police.
The chief of police shall estimate the cost of City staff and other administrative
costs in connection with oversight of the patron safety and security plans and the
licensee shall deposit such amount at the time of submitting the patron safety
and security plan to the chief of police. If actual costs incurred exceed the initial
deposit the chief of police may require the applicant to make additional deposits
to offset costs incurred or to be incurred by the City. If the amount estimated is
in excess of the cost incurred, the difference will be refunded to the applicant at
the end of the City's review.
3.17 Crime Reporting Requirement.
3.17.1 Every licensee, key employee, employee, or independent
contractor of a cardroom shall immediately report to the .Chula Vista Police
Department any crime committed on the cardroom premises.
3.17.2 Each licensee shall maintain a chronological criminal
activity log and such other reports as the chief of police may determine are
needed in order to effectively assist the Chula Vista Police Department to carry
out its law enforcement function and protect the public health, safety, and
welfare.
3.17.3 It shall be unlawful for a licensee, manager, employee or
independent contractor of a cardroom to disable any 911 access on any public
telephone on the cardroom premises.
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3.18 Licenses or Key Emoloyee on Premises.
A cardroom shall have on the premises, at all times the cardroom is
open to the public, the licensee or a key employee. A "key employee" for
purposes of this section is defined as an employee who shall have access to all
cardroom premises for purposes of inspection or for purposes of compliance with
any provision of this Gaming Plan and who shall have the responsibility and
authority to ensure immediate compliance with the Gaming Plan and all state
laws and regulations pertaining to gaming. Further each cardroom licensee shall
identify in writing the name, address, and telephone number of each key
employee, and each key employee shall wear an identification badge
designating the employee as a key employee.
4. Enforcement.
4.1 In General.
It is unlawful and a violation of this Gaming Plan to obtain, transfer
or consolidate a cardroom license, or to operate a cardroom in violation of any of
the regulations and rules set forth in the Gaming Code, this Gaming Plan, and
any and all other applicable federal, state and local laws, rules, regulations or
permits.
4.2 Monetary Fines.
4.2.1 Amounts of Fines. For any violation of the terms of this
Gaming Plan, the city shall have the right to impose a penalty of up to $1;000 per
day for each day the licensee is in violation. In the event that a licensee is cited
for a violation (not necessarily the same violation) more than three (3) times
within a six month period, upon the fourth such citation, and: with respect to any
occurrence thereafter, the city shall have the right to impose a penalty of up to
$5,000 per day the licensee is in violation.
4.2.2 Imposition of Fine Not Election of Remedies. The pursuit
of monetary fines against a licensee or the receipt of payment therefore shall not
constitute an election of remedies on the part of the city and thus shall not
preclude any other course of action such as may be available including, without
limitation, the revocation of the cardroom license held or issued hereunder, the
revocation of any and all permits or approvals permitting the operating of the
cardroom, and any and all other remedies available to the city at law or in equity.
4.3 Revocation and Suspension.
4.3.1 City Right to Revoke or Suspend. Any cardroom license
issued or held hereunder may be revoked or suspended by the city, after a public
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hearing, upon the determination by the city council and the chief of police that
with respect to the license and/or cardroom operated thereunder,-there has been
a material violation, or repeated violations of this Gaming Plan or any or all other
applicable federal, state or local laws, rules, regulations or permits.
4.3.2 Material Violation. The city shall determine, in its sole
discretion, what shall constitute a material violation for purposes of revocation or
suspension under this Section 4.3. Material violations may include, without
limitation, the following:
(a) A misrepresentation or exclusion on any application for
approval, report or statement of revenues required to be submitted under this
Gaming Plan or under any other applicable federal, state or local law, rule,
regulation or permit.
(b) Anon-complying purported transfer of a cardroom license held
or issued hereunder.
( c) Allowing persons other than those named in the application on
file with the city to own an interest in, or have direct management of a cardroom.
(d) Maintaining a greater number of tables than the number
permitted by the license.
(e) Failure to strictly comply with any and all federal, state and
local laws, rules, regulations and permits applicable to the holding of a license or
the operation of a cardroom hereunder, including, without limitation local land
use and other code provisions.
(f) Failure to pay, when due, the amount of license tax owed
pursuant to Section 2.7 hereof.
(g) Citation of five (5) or more minor violations of this Gaming Plan
within any twelve (12) consecutive months.
(h) The conduct of criminal or dangerous activities at or
attributable to the licensed cardroom.
(i) Failure to pay, when due, the amount of any monetary fine
imposed pursuant to Section 4.2.1 hereof.
Q) Refusal to permit city access to a cardroom for purposes of
auditing or inspecting same.
4.4 Inspection Rights.
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The City shall have the right, at any time, without notice, to enter
into any cardroom operating within the city and to conduct a reasonable
inspection of all areas of such cardroom, and /or any or all fixtures, equipment,
accounting materials or documents contained therein, in order to determine
whether or not such cardroom is being operated in accordance with this Gaming
Plan. This inspection right is in addition to the audit rights enumerated in Section
2.7.4 herein.
5. General Provisions.
5.1 Definitions.
Except as otherwise expressly defined herein, capitalized terms,
and terms otherwise requiring definitions for proper interpretation, shall have the
meanings ascribed thereto by the Gaming Code.
5.2 Section Headings.
Section headings contained herein are for reference purposes only
and shall not be deemed to govern, limit, modify or in any manner affect the
scope, meaning or intent of the provisions of any section hereof.
5.3 Gaming Plan Amendments.
5.3.1 City Council Approval Required. This Gaming Plan may
be revoked or amended, in whole or in part, at any time, after a public hearing,
by approval of the city council.
5.3.2 Full Cost Recovery for Administrative Costs Associated
with modifications to gaming Plan.
Any Person requesting any modification to the Gaming Plan shall
be responsible for payment to the City of all actual administrative costs incurred
by the City including the cost of staff time, at the City's full cost recovery rate,
associated with the request for modification of the Gaming Plan. The chief of
police shall estimate the cost of City staff and other administrative costs in
connection with the requested modification and the Person shall deposit such
amount at the time of submitting his/her request for modification to the Gaming
Plan. If actual costs incurred exceed the initial deposit the chief of police may
require the applicant to make additional deposits to offset costs incurred or to be
incurred by the City. If the amount estimated is in excess of the cost incurred,
the difference will be refunded to the applicant at the end of the City's review.
5.4 Integrated Plan.
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All provisions of this Gaming Plan are intended to be integral parts
of a comprehensive regulatory scheme. In the event that any material provision
hereof is finally determined to be invalid, then, as of the date of such
determination (a) the entire Gaming Plan shall, AB initio, become void and of nc
effect, and (b) the Gaming Code provisions otherwise implemented or
superseded hereby shall become effective.
5.5 Agreement of Licensee to Accept Validity and Abide by all
Provisions.
Each license which holds or is issued a license hereunder, in order
to legally operate a cardroom within the city must first enter into a written
agreement with the city whereby such licensee agrees, on behalf of itself, any
successors or assigns thereof, and any and all parties with a financial interest in
the license or the cardroom operated thereunder, that such Persons (a) shall
abide by any and all provisions of the Gaming Plan; (b) acknowledge that all
provisions of the Gaming Plan are valid and enforceable by the city against such
Persons; and (c) waive and agree not to pursue any and all claims or other
action against the city that any or all provisions of the Gaming Plan were not
legally adopted, valid or enforceable with respect thereto.
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