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HomeMy WebLinkAboutReso 2015-056 RESOLUTION I�'O. ZO1�-0�6 RESOLUTI01�' OF THE CIT1' COITiVCIL OF THE CITY OF CHULA VISTA APPROVI\'G .A?�4E1�'DI�4ENTS TO THE CHULA VISTA GAMIIvG PLAN TO I\CREASE THE 1�4.4?{I?�4UM NUMBER OF G.4MIi�G TABLES FROM 18 TO 20. UP TO 1� TABLES OF ANI' ONE CL.ASS. AND RELATED CHA\'GES. II`TCLUDING A FIVE-YEAR OPERATI.�G AGREEMENT �1'HEREAS, in connection nith its proposed mo��e to a ne�v facilit�� on Ba�• Boulevard; the Villaee Club Card Room has proposed amendments to the Cit}�`s Gamine Plan; and A'HERE.AS, the proposed changes �vould (1) increase the ma�imum number of allo�ved tables from 18 to 20, as allo���ed by State la���; (2) increase to 1� the number of[ables tha[ it can operate as ��Class II" tables, and related changes; and WHEREAS. in consideration for this, the Villa�e Club Card Room has proposed to increase the table license ta� to a set rate of�7,100 per table per quarter. �rith a reduced annual increase of 3%: and �1�HEREAS. Council appro��al of this item ���ould also allo��= the Villase Card Room to operate on these terms for fi��e ��ears per the operatine aereement required in the Gaming Plan, and ��ith the appro��al of an administrati��e amendment to its existing conditional use permit (CUP); and «%HEREAS, Police Department concerns regarding a potential increase in ��ehicle-related emeraency calls ha��e been addressed �vith adequate parking spaces and areas, ineress and eeress, and parkinv lot cameras and securitv: and ���HEREAS, the Police Department has no other material concems ���ith securit�� issues that might arise from the proposed chanees to the Gamine Plan; and �'�'HEREAS, as required b}� Chula Vista A4unicipal Code Section �.20.001 and Gamin�� Plan Section �.3, prior to Cit�� Council action on the proposed Gamine Plan amendment. a public hearin_ ���as properly noticed and held. and the Ci[�� Council considered the proposed amendment and all testimony presented ���ith respect thereto; and \�'HEREAS. the Development Ser��ices Director has re��iewed the proposed project for compliance ���ith the Califomia Environmental Qualit�� Act (CEQA) and has determined that the project qualifies for a Class 1 Cateeorical Exemption pursuant to 1�301 (Use of Esistin� Facilities) of the State CEQA Guidelines. The proposed project consists of neglieible or no expansion of an esisting use. In addition, the De��elopment Services Director has determined that there is no possibilit�� that the activit}� ma�� have a significant effect on the en��ironment; therefore: pursuant [o Section 1�061(b)(3) of the State CEQA Guidelines. the acti��ity is not subject to CEQA. Thus. no environmental re��ie�+ is required; and � Resolution No. 201�-0�6 Page No. 2 NO�', THEREFORE. BE IT RESOLVED, by the City Council of the Cin� of Chula Vista as follo�+�s: 1. The proposed amendments to the Chula Vista Gaming Plan, attached to this resolution as Exhibit 1, ���ith changes presented in underline-strikeout format. are hereby adopted, with such ininor changes as may be required or approved by the City Attorney, a copy of which shall be kept on file ���ith the City Clerk. 2. The City 1�4anager is hereby authorized and directed, pursuant to Section �.5 of the Gaming Plan to finalize and esecute on behalf of the City an operating agreement �vith the Village Card Room license interest holders, consistent with the terms provided therein, including provision for an initial five-year terni of operations, as a condition precedent to commencement of operations at the Bay Boule��ard location. 3. Village Card Room rights under the Gaming Plan for operations at the Bay Boulevard site are contingent upon receiving any and all required approvals therefor from the California Department of Justice Di��ision of Gambling Control. Yresented by Approved as to form by / " / .. '��_ len R. Gof ains Glen R. oogi s C�t�Attofney C`LtT rney Resolution \'o. 201�-0>6 Pa�e 3 P.ASSED. APPROVED. and ADOPTED b�� the Cit�� Council of the Cit�� of Chula �'ista. Califomia. this 3rd da�� of March 201� bv the follo���ins vote: .A1'ES: Councilmembers: Aauilar. Bensoussan. A4iesen and Salas N.q1'S: Councilmembers: None .ABSENT: Councilmembers: A4cCann � - /��'� �1ar� S . �4a��or ATTEST: Donna R. Norris. Cn� . Cit�� Clerk STATE OF CALIFOR�\'IA ) COLJ�'T1' OF SAN DIEGO ) CITY OF CHULA VISTA ) I. Donna R. \orris. Citv Clerk of Chula Vista. Califomia. do herebvi certifv that the foreaoine Resolution No. 201�-0�6 was dul}� passed. appro�ed, and adopted b�� the Cit�� Council at a reeular meetine of the Chula Vista Cit�� Council held on the 3rd da�= of 1�larch 201�. Esecuted this 3rd da�� of A9arch 201�. ��� ��,«, Donna R. I�'oms. Cn1C. C � Clerk Resolution No. 201�-0�6 Pa�e No. 4 CHUlA VISTN G4MING PLAM1 In accordance with Cnap,er 5.20 ot the Chula Vs:a Municipal Co3e (tne "Gaming CoGe°), this docuneni shall serve zs the gaming plan for [he Ciiy of Chula Vs�a (Ihe °Gaming Plan'). Tnis Gaming Plan was ado�ted on Februzy i?, 1;95, a9er a public hearing, �ursuant to ciy council Resolutia� No. 18212. Th= Gami�g Plan hzs been amende� as folloHS: (1) on January 13, 199fi pursuant to ResolUuon No. 18862; (2) on November 10, 7998 pursuani to Resolution No. 1925i; (3) rn September 26, 2000, pursuant to Resolutim No. 2000-332; (4) on Odober 6, 2009, pursuant b Fesolu;ion No. 2009-238: a�-(5) on Mzrch }4, 2012, pursuant to Reso!uFion No. 2012-047: anG (6) on March 3 , zp;5, oursuanE to Resolution ho. 2075=J5F- The modi ications contained i� sucn amendmenEs shall be deemed e`ectivz as of the dates of the'u zdoption. �E;euive upon its adoptia�, this Gaming Plan shall implemen;, in "r,s er�;irety, Subchapfe 2 of the Gaming Code. In the eveni of any inconsistency bewzen this Gaming Plan and ihe Gaming Code, the terms and conditions o� this Gaming ?lan snall govem. Except to the ezEen[ that this Gami�g Plan expressly modifies or is oihenvise inconsisteni wi�h the Gaming Code, the Gaming Code shall remai�� in tull force and e�fiect. This Gzming Plan is intE�ded to dezl only with the subject ot nrdrooms. No other p�pes o! gaming permi;ted by the code, subject to the adopiion a` a Igaming olan wi;h res�e��hereto, shall be permi�ed or govemed hereby. To b= pe�nir,=d, such other types of gaming must be the sub;ect of further adion by IresoVUtion oi the ciy council to amend or adj to this Gaminy Plan. . 1 Resolution No. 201�-0�6 Paae � 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 adivity, as a card table for the playing of cards and similar games, and the use of which is available to the public. 2. Licensing. 2.7 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, carried on, maintained or conducted, any cardroom in the city. Any such activity conducted without such a license, or othenvise in non-compliance with the terms of the Gaming Code, this Gaming Plan, or any and all other appiicable 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 - Existinq 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 [hereof by the state � 2 Resolution No. 201�-0�6 Pa�e \'o. 6 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 operetion upon the eYective date of this Gaming Pfan may continue to hold such license or licenses subjed to the terms and conditions set forth herein. For purposes of determining ihe number of licenses which are authorized to be issued by the city hereunder, any two Iicenses which are "consolidated' pursuant to Section 2.6 hereof shall still be treated as being rivo separate ficenses counied against the totai num'oer authorized. 2.3 Types of Licenses - Class I and Class II. 2.3.1 In General. There shall be hvo rypes of cardroom licenses: Class I and Class II. The characteristics, rights, obligations and limitations attributable, respedively, 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 Iicense shall permit the playing of all games permitted by the state attomey general to be within the pemissible subjec; o� local licensing by Califomia 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 AII 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 aty for a period of ihree (3) years at a fixed localion; and (b) must appiy with the city and receive prior approval from the city for such conversion in accordance with ihe appfication procedures sei forth in Section 2.4 hereof, belo�v. . , Resolution No. 201�-0�6 Paee 7 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 torm issued by, or othenvise 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 interesY' 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) a non-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 subjed 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 fnancial 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 interesY' shall mean any and all direct or indirect ownership, creditor or other interests, in a cardroom Iicense, 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 4 Resolution ?�'o. ?Ol�-0�6 Pa�e No. S the cardroom; and (b) a parent, spouse, sibling or child of an individual Person holding a direct, majoriy or controlling ownership interest in a license or czrdroom shall also 5e deemed the holder of z "financial interest° for purposes of this Se�ion and this Gzming Plan. 2.4.4 Any new or revoked czrdroom license otherwise qualified for issuance mzy be issued during the period of Mzy 1 through June 30 follov,�ng the availability or revocation date of such a license. After the expira;ion 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 availzble in accordance with the limitations set forth in Section 2.2 hereof, a license may be issued to the most.quzlified of such applicznis in accordance with a procedure established by the city. Notwithstanding the foregoing, the city shall decide, in its sole discretion, zs 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 rejed any ar�d ail applications for a cardroom license hereunder. 2.5 Transfers. 2.5.1 In General. Any license issued pursuznt to the Gaming Code or this Gzming Plan, a cardroom operated thereunder, or any direC 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 sedion shall include, v,�ithout limitation, any and all sales, leases, conveyznces, assignments, grants, pledges, gifts, devises, donations and/or similar transfers by a Person of any or all of such Persons, dired or indired, ownership interest in a license or cardroom operated thereunder, or "financial inierest" in a license or cardroom operzted thereunder, zs such concept is defined in Section 2.4.3 hereof. Such transfers _ , Resolution I�'o. 201�-0�6 Page 9 shall include, without limitation, (a) a iransfer of aIl 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 foRh 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 al� proposed cardroom license transfers must receive (a) prior written approval of the chief 6f 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 lo be good cause why such Person should or should not operate a cardroom. Norivithstanding 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 [han sixty (60) days following the death or divorce causing such transfer. The time limit may , 6 Resolution \o. 201�-0�6 Pase \o. 10 be ekended provided the resulting trznsferee has submitted its application znd such additional iniormation as may hzve been requested with the licensing authorities in a timely fashion. 2.5.4 Three Years Operation Required Before Transfer. Wi:h the exception of those licenses which hzve been issued prior to September 1, 1992, no license may be transferred unless znd until the holder ihereof has been operzting a c2rdroom governed by such license for three (3) years at a fixed location in the city. Licenses issued prior to September 1, 7992 may not be transferred unless and until the holder thereof hzs been operating a cardroom govemed by such license for one (1) year at 2 fixed location within the dty. 2.5.5 Non-Complying Transfers. In the event of a purported trensfer of 2 license which does not comply with the terms of this Section (a) the purported transferor shall be subjed to monetary penalties zs provided in Sedion 4.2 hereof; (b) the purported transteree shall have no rights to operete a cardroom in the ciry under the authority of such license; (c) the license involved shall be subjed to revocation by the city as provided in Seciion 4.3 hereof; and (d) the Itransfer mzy otherwise be deGared null and void. 2.5.6 Special Rules for Transfers of Class II Licenses. 2.5.6.1 Except zs otherwise provided herein, upon the transfer, either all at once or in a series of transfers, of a "material or controlling finandal inierest' (define below) in a Class II Iicense, the Class II iicense which is the subjed of such tr2nsfer shall immediately revert back to a Cizss I license. A Clzss II license so reverted may be converted back to a Class II license, but only in accordance with ihe provisions of Section 2.3.2 hereo`. _ 7 Resolution No. 201�-0�6 Page I 1 � 2.5.6.2 Notwithstanding the foregoing, a material or controliing interest in a Class II iicense may be transferred without reversion of the subject Class II license to Ciass I status subjed to the following terms and conditions: (a) The transfer must be to a "pre-qualified transferee". For purposes of this Sedion, 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, adcnowledged in writing thereby, has been substantially responsible for the management and operations of the licensed cardroom 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 trensferred thereto shall be temporery and subjed to reversion to Class I status in accordance with this Sedion; 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 II 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 (i) year following the effedive 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 _ 8 Resolution No. 201�-0�6 Paee No. 12 shall be temporary, and [herefore subject to reversion to a Class I license upo� a determination by the chief of ?olice, in his/her sole discretion, for any or no reason wha[soever, that the trans�eree should be required to first operate as a Class I licensee prior to being permi�ted to operate as a Class �I licensee in accordance with the terms and conditions of Section 2.3.2 hereof. Such determination may be rnade at any time within thirty (30) days after the expiration of the Temporay Class II Status Period. (d) Pre-qual'fication of a potential transferee hereunder shall rmt constitute City approval of a trensfer to such potential trensferee and any such transfer shall remain subject to the provisions of Section 2.5 hereof. 2.5.6.3 For purposes of this Sedion, the City shall det=rmine, in its sole discretion, what constitutes a "material or controlling financial intere�"' provided, however, in general, a trensfer of a inancial interest for purposes of pre- qualifying a Person under Sedion 2.5.6.2 shall not be considered the transier o` a °material or controlling financial interest". 2.5.7. Except as othenvise provided herein, upon the trans�er, either all at once or in a series of transfers, of a material or controlling financial ini=rest in a license or the cardroom 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 AdminisVative Costs Associated with Trensfer. Any person submitiing an application for transier oi a license shall be responsible for payment to the Ci[y of all actual administrativ= costs incurred by the City induding the cosi of staY time, at the City's full cost recovery rate, associated with the investigation of the application for a license transfer and review of transfer � 9 Resolution No. 2015-0�6 _ Pase 13 documents. The chief of police shall estimate the cost of City staff and other administrative costs in connedion with an application and the Person shali deposit such amount at the time of submitting the applica[ion tor license transfer to the chief of police. If adual 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 sedion of [his 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 Sedion 2.6. Under no circumstances may any Person acquire or hoid 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 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 goveming license transfers set forth in Sedion 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, iicenses shall be 10 Resolution \o. 201�-0�6 Paoe \o. 1� deemed to be "consolidated° in the event that ihe same Person holds, or comes to hold, a "finandal interest" (as defined in Sedion 2.4.3 thereof) in such licenses or the cardrooms operated thereunder. Under a cbnsolidated license, the maxi�num Inumber of tables permitted to be operated is twen eigpteer�-(�820), subject to ary additional or contrery terms and conditions set forth in Sedion 3.5 and/or other provisions of this Gaming Plan. All tables operated under a consolidated license musi be operaied in the same location. 2.6.4 Ciass I with Ciass II Consolidations. In the event that a Class I license is consolidated with a Class II license, the following rules shall apply: (�) i� the previous owner of the Class II License retains majority ownership and control over the consolidated license, the full bene`ds and burdens her=under of Class II status shall apply to all the card tables operated under such consolidztee 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 aty 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 ciry and for purposes of regulation. The tax shall be imposed against the number of tables that are licensed by the city pursuani to the terms of this Gaminy Plan that are also permitted to be opereted by the City at ihe location where ihe license is being utilized pursuani 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 o` � I1 Resolution No. ZO15-0�6 Page 15 the number of tables which may adually be operated on any given day or the class of game conducted thereon. 2.7.2 Amount of Tax Rate. The license tax to be assessed and colleded on each licensed cardroom shall be the applicable "base rate" tax determined as foliows: 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 tabies licensed under a consolidated Class I license shall be $2,500 per card table per annual quarter. c. Class I License with Ciass 1A Tables - Higher Level Betting: The base license tax for sae�-Class tA 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 License: Subiect to the terms of the agreement provided in Section 5.5 hereof, �the base license tax for each card table {ie�r�se� in a cardroom licensed to play Class il games under a Class II license shall be $rr;099JJ100 per table per annual quarter. , ri....,. i ,,...,.a . ., r�i.,.... �i � �,. .�.,, ti.,..,. ...�,, o.., c ,.s .�... o , IZ Resolution \'o. 201�-0�6 Pa�e No. 16 �.N.. F.�. �L... �V .. �.... �..L.1.... ..4.. 4.. �{... I"1..._n 11 �..,,.,. .-, —ThIS fate Shell apply to the maximum number of f�lass-N-tables licensed and permitted to be operated at the cardroom location regardless of whether or not such ta5les are adiveN beinq used, and repardless of whether or not Class II games are actually being played at such tables. I 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 righi to conduct an independent audit of licensee's accounting records at any time upon Ihree (3) days prior written notice to licensee. The audit shall be pertormed by a party designated by the Ci,ry, subject to the reasonable approval of licensee. If the City elects to conduc[ such an audit, the licensee shall be responsible for reimbursing City costs incurred in connection therewith. The licensee's reimbursement obligation under ihis Section shall noi exceed 570,000.00 per any twelve (12) month period. 2.7.5 Tax Receipt. The finance diredor shall issue a receipt ior each licensed cardroom and such receipt shali 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 Ilicense tax amounts set foRh in Section 2.7 shall be increased by three ftv�percent (33%) per year. The first increase shall take effed on dwy-�-�38�JulY 1 2016 ' 13 Resolution No. 201�-0�6 Pa�e 17 and each subsequent increase shall take effect on each July 1 thereafter. This annual base rate increase shall applv to all tables Iicensed in the previous year reaardless of whether or not such tables were actualiV permitted or put into service that year. 3. Operating Limitations and Conditions. 3.1 CitV Land Use Requlations Shall Control. All cardrooms and card table operetions shall be subject to the city's Iand use regulations. Notwithstanding any provision in this Gaming Plan to the con[rary, 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. For example in no event shall the cardoom exceed the number of players it is restric[ed to in its conditional use permit based on parkinq limits or other imposed conditions. 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 sedion 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 14 Resolution\�o. 201 i-0�6 Paee No. 1 S poke�, °hold 'em poker", 'oineapple poke� or 'pinezpple high-low spli�. A holder ot a Class I or Class II license m2y petition the chiet of police to add cames to ihis list, but noi 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 soie disaetion, and such decision shall be final. 3.2.2 Class II License: subject to the terms and conditions o� this Gaming Plan and the Gaming code, ihe older of a Class II cardroom license shall be permitted to operate a cardroom which conducts all card games permitied 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 irom time to time as "Class II Games", and include °pai gow poker (considered a °Class II Game"), °no bust 21" century blackjack 4.0° and all versions of "21' 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 ot 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 plainiy visible £rom all parts thereo�, signs stating which games have been approved for play at said cardroom. In addition to ihe foregoing, each table shall identify by prominent sign loca:ed thereon the game which is currently being played ai said table. � I� Resolution No. 201�-0�6 Page 19 3.3 Game Rules. 3.3.1. In General. No permit[ed game may be played in a cardroom uniess 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 there[o. 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 prospedive 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-four hours 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). � 16 Resolution No. 201 i-0�6 Pase \o. 20 3.5.2 Class I - Consolidated. The maximum number oi tables permitted under a consolidated Class I license shall be nine (°) during gamin9 operations. 3.5.3 Class II - Non-Consolidated. The maximum number of tables that may be operated under a non-consolidated Class II license shall be eight (8). Of that eight, only two (2) shall be ailowed to condud Class II cames. 3.5.4 Class II - - Consolidated. The maximum number of tables that may be operated under a consolidated Class II ficense shall be eigk�teerrtwen (2415). Of the eigk�teea-twen � (2018), a maximum of aia�fifteen (815) tables shall be allowed to conduct.Class II or Class tA games at any one time, and a maximum of r��5fteen (753) tables shall be allowed to condud Class I cames at any one time. In no event shall more than hventy (20) :ables be plaved ai 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 ;able conducting Class I games. Only persons seated at the card table as players shall be permiC�ed to bet. 3.6.2 Class II 8 1A Tables. No more than eight (8) seated players with one (1) additional standing player per seat 'backline° betting behind the se�ted player, not to exceed a total of si�een (16) players (standing and sming) per table shall be perm'�ted at any one card table conduding Class II or 1A Games. 3.7 Maximum Bets and Bettinq Rules. 17 Resolution No. 201�-0�6 Page 21 3.7.1 In General. There shail 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 Adequa[e Funds on Hand/Payment Policy. At all times, licensee must have suffcient proceeds to reimburse any and all demands made upon said licensee for the payment of winnings by a cardroom patron. In the altemative, and subject to approval of [he chief of police in his/her sole disaetion, 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. 3.8 Maximum House Charqes Per Hand - - Posting Required. 3.8.1. Approval. All house charges per hand and any proposed charges subjed thereto shall be subjed 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 Badpes Required For Managers Key Emplovees and Employees. � 18 Resolution No. 20]�-0�6 Pase No. 22 3.9.1 Work Permit Required. Uniess other provided herein, priorto commencing work at a cardroom, each proposed key employee or employee of a cardroom, 'rf 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 p2ymeni 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 [emporary probationary work permits may be subjed to immediate summary revocation with or wiihout 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 regufar annual work permii or upon denial of the regular annual work permit application by tFw 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 ihe future be amended, in the Master Fee Schedule for cardroom applications, to cover ihe cost of processing the application and o` any required investigation of the applicant including a aiminal background check to be perform>d by the police department at the applicant's expense. The work permii, when issued, shall be valid for one (1) year. Any renewal must also be approved by the chief of police and will be subjed to a criminal badcground � 19 Resolution No. 2015-0�6 Page 23 check to be performed by the chief of police at the applicanYs expense. The chief of police may deny the initial approval or 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 empioyee 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 wom at chest level. 3.9.5 Limitation of Discretion to Issue Work Permit. In addition to any other restridions 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 Califomia 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 Conirol (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 Sedion 19801 et seq.). 3.9.7 Employment of Persons to Stimulate Play Prohibited. 20 Resolution No. 201�-0�6 Pase No. Z� 3.9.7.1 tt shall be unlawful for any licensee, key employee, independent conVador, or employee of a cardroom to engage or persuade any Person to play cards for the purpose o` siimulating 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 excep: hat the licensee may use employee proposition players in stric[ conformity wiih 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) O�ily 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 [he patron by requesting valid identification. The Owner-operetor 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 identfication card shall be maintained in the Owner-operator's files until all outstanding advances have been repaid. The Owner- operetor shall produce a copy of such records to the Chula Vista Police Department upon reques:; (f) The Owner-operator decides whether to grant credit, and if credit is granted, at the same time detemines the credit limit and terms tor repayment; (g) The primary criteria for granting credit is whether the pa:ron currently has funds in a bank to cover the advance; � 21 Resolution No. 201�-0�6 Page 2� (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 aaount 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 credii 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 e�ended under this policy shall be reported appropriately for state licensing purposes; and (o) No credit will be extended to cardroom employees or temporary license holders. 3.9.8 Employee Proposition Players. ; i 22 i Resolution No. 201�-0�6 Pave No. 26 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, subjeC to mod�cation by the chief of police in his/her sole discreiron. The chief of police's decision shall be finai. 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 ads as a proposition player other than salary or wages eamed £or the time the employee works as a proposition player. This prohibition does not prohibit a proposition player from receiving ihe same employmeni benefits as apply to all other employees of ihe licensee; provided however ihat no employee or independent contrador shall be paid in chips. 3.9.8.4 A proposition player shall prominently display an identrfication 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 io a procedure to be implemenied 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. Ai all times ihat alcohoiic beverages are served, food must also be made availabie and the cardroom shall compiy with its ABC On-Site General Saie (Type 47) Eating Place license, where 50 percent or more of all sales must _ z, Resolution No. 201�-0�6 Page 27 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 such Person appears to be under the influence of an intoxicating beverage, narcotic or drug. 3.11 Minors Prohibited from patronaqe 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. 24 Resolution I�'o. 201�-0�6 PaQe No. 28 3.12 Siqns to be Posted. Licensee shall comply at all times with the sign requirements set forth in this Gaming Plan induding, without limitation, Sedions 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 Comptiance and Supervision of Operatans. The licensee oi a cardroom shall be responsible for assuring thzt 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 Iicensee of the terms and conditions of its license, and therefore subjed to the City's enforcement rights and policies set forth in Seciion 4 hereof. 3.16 Patron Safetv and Securiry. 3.16.1 Each licensee shall submit a written patron safety and security plan, designed to protect paVOns 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. ?� Resolution No. ZOl�-0�6 Page 29 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, heaRh, safety, and general welfare. 3.16.3 Licensee shall be responsible for payment to the City of all adual administrative costs incurred by the City including the cost of staff time, at the Ciry's full cost recovery rate, associated with the oversight of the patron safety and security plans required by this sedion, 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 deposii such amount at the time of submitting the patron safety and security plan to the chief of police. If adual costs incurred exceed the initial deposit the chief of police may require [he 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 Reportinq Requirement. 3.17.7 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 26 Resolution ivo. 201�-0�6 Paee No. 30 to effedively assist ihe Chula Vista Police Department to cary out its law enforcement funciion 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. I 3.18 Licenses or Key EmpioYee on ?remises. 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 shail have access to all cardroom premises for purposes of inspeciion or for purposes of compiiance with any provision of this Gaming Plan and who shall have the responsibility and authority to ensure immediate compliance with ihe Gaming Plan and all staie 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 shail 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, Vansfer or consolidate a cardroom license, or to operate a cardroom in violation of any of the regulations and rules set torth in the Gaming Code, this Gaming Plan, and any and all other applicable federal, state and locai laws, rules, reguiations or permits. 27 Resolution No. 201�-0�6 Page 31 4.2 Monetarv Fines. 4.2.7 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 31,000 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 resped to any occurrence thereafter, the city shall have the right'to impose a penalty of up to 55,000 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 hearing, upon the determination by the city council and the chief of police that with resped to the license and/or cardroom operated thereunder, there has been a ma[erial violation, or repeated violations of this Gaming Plan or any or all other applicable federal, state or local laws, rules, regulations or permits. 28 Resolution No. 201�-0�6 Pa�e I�TO. 32 4.3.2 Material Violation. The city shall determine, in its so�e discretion, what shall constitute a material violation for purposes of revocation or suspension under :his SeCion 4.3. Material violations may include, without limitation, the following: (z) A misrepresentation or exclusion on any appliqtion for approval, report or statement of revenues required to be submitted_under this Gaming Plan or under any other applicable federal, state or iocal law, rule, regulation or permit. (b) A non-complying purported transfer of a cardroom license held or issued hereunder. ( c) Ailowing persons oiher than those named in the application on fiie with the ciy 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 sfictiy comply with any and ali federel, state and local laws, rules, regulations and permits applicable to the holding of a license or the operation of a cardroom hereunder, induding, without limitation Iocai land use and other code provisions. (f) Failure to pay, when due, ihe amount of license tax owed pursuant to Sedion 2.7 hereof. (g) Citation of five (5) or more minor violations of ihis Gaming Plan within any hvelve (12) consecutive months. � 29 Resolution No. 201�-0�6 Page 33 (h) The condud 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. (j) Refusal to permit city access to a cardroom for purposes of auditing or inspecting same. 4.4 Inspedion Riphts. The City shall have the right, at any time, without notice, to enter into any cardroom operating within the city and to conduc[ a reasonable inspection of aIl 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 opereted 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 othenvise 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 Headinqs. 30 I Resolution No. 201�-0�6 Paee No. 3� Section headings contained herein are for reference purposes only and shall not be deemed to govem, limr4 modify or in any manner affecf the scope, meaning or intent of ihe provisions of any se�ion hereof. 5.3 Gaminq 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; provided, however, different terms of operation mav be provided in the aqreement required bv Section 5.5 hereof, below. 5.3.2 Fuli Cost Recovery for Adminisvative Costs Associated with modifications to gaming Plan. ' My Person requesting any modification to the Gaming Plan shall be responsibie for payment to the City of alf actual administretive costs incurred by the City including the cost of staff time, at the Cit�s fuil oost recovery rate, assoaated with the request for modification of the Gaming Plan. The chief of police shall estimate the cost of Ciry stafi and other administrative costs in connedion with the requested modification and the Person shall deposit such amount at the time of submitting his/her request for modifiption to the Gaming Plan. If adual costs incurred exceed the initial deposit the chief of police may reguire ihe 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 Inteqrated Plan. J �1 Resolution No. 201�-0�6 Page 3� 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 no effed, and (b) the Gaming Code provisions othenvise implemented or superseded hereby shall become effedive. 5.5 Aareement 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 Iagreement with the city whereby for the term specified therein, 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) shali 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. 32