HomeMy WebLinkAboutAgenda Packet 1996/02/20
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Re~ular Medin!! of the City of Chula Vista City Council
Council Chambers
Public Services Building
CALL TO ORDER
I.
ROLL CALL:
Councilmembers Akvy _' Moot _, Padilla _' Rindone _' and
Mayor Horton ~.
2. PLEDGE OF ALLEGIANCE TO THE FLAG. SILENT PRAYER
3.
APPROV AL OF MINUTES:
Fehruary 13, 1996.
4. SPECIAL ORDERS OF THE DA Y:
a. Oath of' Office: Jim Perondi - Youth Commission.
b. "Voice of Democracy" presentations by: Francesca Geyer - Bonita Vista High School; Ann
Morrissey - EastLake High School; Levi Partridge - Chula Vista High School; and Stephanie Via-
Mar Vista High School. This annual competition is sponsored by the Veterans of Foreign Wars,
Post #2111.
Co Proclaiming Fehruary 23, 24 & 25, 1996 as "KENT FROEDE MEMORIAL CLASSIC
DA YS." The proclamation will be presented hy Mayor Horton to Mark Smolanovich, Co-
Director of Froede Memorial Classics.
*****
Effective April I, 1994, there have been new amendments to the Brown Act. The City Council must now
reconvene into open session to report any final actions taken in closed session and to adjourn the meeting.
Because of the cost involved, there will be no videotaping of the reconvened portion of the meeting. However,
final actions reported will be recorded in the minutes which will be availl1ble in the City Clerk's Office.
*****
CONSENT CALENDAR
(Items 5 throuf.:h 8)
17" staff recommendations regarding the following items listed under the Consent Calendar will be enacted by
the Council by one motion without discussion unless a Councilmember, a member of the public or City staff
requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a
"Request to Speak FornI" available in the lobby and submit it to the City Clerk prior to the meeting. (Complete
the green fonn to speak in favor of the staff recommendation; complete the pink fonn to speak in opposition to
the staff recommendation.) Items pulled from the Consent Calendar will be discussed after Board and
Commission Recommendations and Action Items. Items pulled by the public will be the first items of business.
5. WRITTEN COMMUNICATIONS:
a. Letter from the City Attorney stating that the City Council did not meet in Closed Session
on 2/13/96. It is recommended that the letter be received and filed.
Agenda
-2-
Fehruary 20, 1996
b. Letter from Thomas L. Woodruff, Law Offices of Rourke, Woodruff & Spradlin, General
Counsel, stating that the Board of Director's of the San Diego Area Wastewater Management
District adopted a budget which includes a sum for the City of Chula Vista and urged that
the City reconsider both itloi active participation as a Member of the District and contribute
the City's annual assessment relating to it. It is recommended that staff prepare a letter for the
Mayor's signature declining the District's request for funds and reiterating the City's position on
membership in the District.
6. ORDINANCE 2663 AMENDING SECTION 10.48,030 OF THE MUNICIPAL CODE,
INCREASING ST A TE LAW SPEED LIMITS IN CERTAIN AREAS AND
ESTABLISHING A SPEED LIMIT OF 35 MPH ON NORTH
GREENSVIEW DRIVE FROM CLUBHOUSE DRIVE TO HUNTE
PARKW A Y AND ADDING THIS LOCA TION TO SCHEDULE IX (second
readim! and adoption) - Construction in the EastLake Greens subdivision has
created several miles of nt':w streets to he opened to the public. The City
Engineer has determined the need to estahlish a posted speed limit on North
Greensview Drive hetween Clubhoust': Drive and Hunte Parkway. Staff
rt':Commt':nds Council place the ordinance on second reading and adoption.
(Director of Public Works)
7. RESOLUTION 182]6 REJECTING BIDS FOR "CONSTRUCTION OF AMERICANS WITH
DISABILITIES ACT (ADA) RENOVATIONS, PHASE II (MAIN
LIBRARY, POLICE BUILDING, PUBLIC SERVICES BUILDING, AND
PARKWAY RECREATION CENTER) IN THE CITY (GG-I44)" AND
DIRECTING THE DIRECTOR OF BUILDING AND HOUSING TO
READVERTISE THE REVISED PROJECT - On 1/17/96, sealed bids were
received. The work to be done consisted of modifying existing restrooms to
accommodatt:: individuals with disabilities. The work included minor demolition
work, construction of interior walls, plumbing fixtures, doors, hardware,
signage, and interior finishes. Staff recommends approval of the resolution.
(Dirt':Ctor of Building and Housing)
8. RESOLUTION 18217 APPROPRIATING FUNDS, ACCEPTING BIDS AND AWARDING
CONTRACT FOR "MEMOR]AL PARK REST ROOMS BUILDING
CONSTRUCTION IN TilE CITY (PR-]68)" - On 1110/96, hids were
received. The work includes the construction of public restrooms within
Memorial Park as well as other miscellaneous work as described in the
specifications. Staff recommends approval of the resolution. (Director of
Puhlic Works and Director of Parks and Recreation) 4/5th's vote required
* * END OF CONSENT CALENDAR * *
Agenda
-3-
Fehruary 20, 1996
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
The following items have been advertised and/or posted as public hearings as required by law. If you wish to
speak to any item, please fill out the "Request to Speak Fonn" available in the lobby and submit it to the City
Clerk prior to the meeting. (Complete the green fonn to speak in favor of the staff recommendation,. complete
the pink fonn to speak in opposition to the staff recommendation.) Comments are limited to five minutes per
individual.
9.
PUBLIC HEARING
CONSIDERING ENACTING A GAMING PLAN PURSUANT TO
CHAPTER 5.20 OF THE MUNICIPAL CODE - On 11/28/95. Council
approved certain amendments to Chapter 5.20 of the Municipal Code regarding
cardrooms. The changes allow any form of gambling in Chula Vista that is
allowed at any other location within the ,state suhiect to further re1!ulation under
a Chula Vista Gamin!! Plan. Staff recommends approval of the resolution.
(Chief of Police, City Attorney, and Director of Planning) Continued from the
meeting of 2/13/96.
RESOLUTION ]82]2 ADOPTING A GAMING PLAN WHICH WOULD ALLOW PAl GOW
AND SUPER PAN 9 TO BE PLAYED AT CARDROOMS SUBJECT TO
CERT AIN RESTRICTIONS. AND MAKE OTHER CHANGES
INCLUDING THE PERMISSIBLE HOURS AND DA YS OF OPERA nON,
MAXIMUM BETS, ALLOWABLE HOUSE CHARGES PER TABLE, AND
TAX RATES PER TABLE
ORAL COMMUNICATIONS
This is an opportunity for the general public to address the City Council on any subject matter within the
Council's jurisdiction that is not an item on this agenda for public discussion. (State law, however, generally
prohibits the City CounciLfrom taking action on any issues not included on the posted agenda.) If you wish to
address the Council on such a subject, please complete the yellow "Request to Speak Under Oral Communications
Fonn" available in the lobby and submit it to the City Clerk prior to the meeting. Those who wish to speak,
please give your name and address for record purposes and follow up action. Your time is limited to three
minutes per speaker.
BOARD AND COMMISSION RECOMMENDATIONS
This is the time the City Council will consider items which have been forwarded to them for consideration by one
of the City's Boards, Commissions and/or Committees.
None suhmitted.
ACTION ITEMS
The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by
the Council, staff, or members of the general public. The items will be considered individually by the Council
and staff recommendations may in certain cases be presented in the alternative. Those who wish to speak, please
fill out a "Request to Speak" fonn available in the lobby and submit it to the City Clerk prior to the meeting.
Public comments are limited to five minutes.
DEDICATION PLAQUE FOR THE SOUTH CHULA VISTA LIBRARY-
The dedication plaque for the South Chula Vista Lihrary will soon be ordered
and a decision must be made as to whether to list only the Councilmembers
seated on 4/8/95, or all Councilmemhers who contrihuted during the life of the
project 1990-1995. Staff recommends Council accept the report and provide
staff with direction as to those names they wish to see on the plaque. (Library
Director)
10.
REPORT
Agenda
-4-
Fehruary 20, 1996
ITEMS PULLED FROM THE CONSENT CALENDAR
This is the time the City Council will discuss items which have been removed from the Consent Calendar.
Agenda items pulled at the request of the public will be considered prior to those pulled by Councilmembers.
Public comments are limited to five minutes per individual.
OTHER BUSINESS c:
W~ ~'. ~.30a ~~ -g ~~,
II. CITY MANAGER'S REPORT(S)
~o ;..."', ~',(JO
a. Scheduling of meetings.
12. MA YOR'S REPORT(S)
a. Ratification of Appointment: Douglas G. Fuller - Otay Vallt.:~y Project Area Committee.
13. COUNCIL COMMENTS
Councilmemher Rindone
a. Co-Sponsorship of National Town Meeting Video Conference (Environmentally Sustainable
Communities).
Councilmemher Alevv
b. Security issues pertaining to lighting at Lauderbach Park. Refer to staff for immediate and long-
range plans.
ADJOURNMENT
The meeting will adjourn to (a closed session and thence to) the Regular City Council Meeting on February 27,
1996 at 6:00 p.m. in the City Council Chamhers.
A Joint Meeting of the City Council/Redevelopment Agency will he held immediately following the City Council
Meeling.
A Special Meeting of the Housing Authority will he held immediately following the Joint Meeting of the City
Council/Redevelopment Agency.
A Special Joint Workshop/Meetmg of the City Council/Redevelopment Agency will he held immediately following
the Special Meeting of the Housing Authority in the Council Conference Room, Administration Building.
Agenda
-5-
Fehruary 20, 1996
*****
CLOSED SESSION
Unless the City Attorney, the City Manager or the City Council states otherwise at this time, the Council will
discuss ami deliberate on the following items of business which are pennitted by law to be the subject of a closed
session discussion, and which the Council is advised should be discussed in closed session to best protect the
interests oj the City. The Council is required by law to return to open session, issue any reports oj final action
taken in closed session, and the votes taken. However, due to the typical length of time taken up by closed
sessions, the videotaping will be tenninated at this point in order to save costs so that the Council's return from
closed session, reports oj final action taken, and adjournment will not be videotaped. Nevertheless, the report
of final action taken will be recorded in the minutes which will be available in the City Clerk's Office.
14. CONFERENCE WITH LEGAL COUNSEL REGARDING:
1. Existin~ litigation pursuant to Government Code Section 54956.9
. Chula Vista ami nine other cities vs. the County of San Diego regarding solid waste
issues (trash litigation).
. Christopher vs. the City of Chula Vista.
2. Anticipated litigation pursuant to Government Code Section 54956.9
. EastLake Development Company prospective mediation regarding EDe's park
obligations.
CONFERENCE WITH LABOR NEGOTIATOR - Pursuant to Government Code Section 54957.6
. Agency negotiator: John Goss or designee for CVEA, WCE, POA, IAFF. Executive
Management, Mid-Management, and Unrepresented.
Employee organization: Chula Vista Employees Association (CVEA) and Western Council of
Engineers (WeE), Police Officers Association (POA) and International Association of Fire
Fighters (IAFF).
Unrepresented employee: Executive Management, Mid-Management, and Unrepresented.
15. REPORT OF ACTIONS TAKEN IN CLOSED SESSION
*****
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:"" l The Veterans of Foreign Wars 5 ....
of the United States ~
and its Ladies Auxiliary
Each year V.F.W. Post #2111-sponsors a patriotic speeCh/essay
contest for area high school students. Once again, I am ~
~.... requesting you to hOllor the 1st place students attending area I ~..::.-
high schools by awarding a citation for competing in this alUlual .
progmm. This year the four stooents are I
ISTEFANIE VIA .. M;.r Vista High School l
~"" 'LEVI PARTRIDGE - Chula Vista High School ~..::.-
,1FRANCESCA GEYER.. Bonita Vista High School
IANN MORRISSEY.. Eastlake High School I
This program is an attempt by the V.F.W. to promote patriotism. : ~
. I am enclosing a history of this competition for your in:fOrmat~n, ..
~:::: and sincerely hope you or a representative will attend the awa s ::::~
... and present.a citation to these students. ..
. .
. ~ M;.ry Tyszka, Auxiliary V. C.D. ~ .
: eo Chairman ,-
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. POST COMMANDER I .
. ~._ ~ Jack ea.rleton id t ~ _..1
Auxiliary Pres en I -
'1'- Shirl.,. Sod"'"" , ~
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PROCLAIMING THE DAYS OF FEBRUARY 23, 24 & 25, 1996 AS
KENT FROEDE MEMORIAL CLASSIC DAYS
IN THE CITY OF CHULA VISTA, CALIFORNIA
WHEREAS, the Kent Froede Memorial Softball Classic Tournament was created
in memory of Kent Froede, former Chula Vista High and Southwestern College baseball
standout and local sports star and business man who died in December 1986 of cancer;
and
WHEREAS, proceeds from this annual event help support the American Cancer
Society programs of patient services, cancer detection and prevention, education and
research including Camp Reach for the Sky; and
WHEREAS, the Tenth Annual Classic will begin with a golf tournament on Friday,
February 23, followed that evening with a pre-tournament gathering at the South Bay
Banquet Center followed by the softball tournament games on Saturday, February 24
and Sunday, February 25 at Rohr Park on Sweetwater Road in Bonita:
NOW, THEREFORE, I, SHIRLEY HORTON, Mayor of the City of Chula Vista,
California, do hereby declare the days of February 23, 24 and 25, 1996 as KENT
FROEDE MEMORIAL CLASSIC DAYS in the City of Chula Vista and encourage our
citizens to attend the above events as an indication of our support in this continuing
crusade against cancer. FURTHER, I extend my personal best wishes to all participants
in the Tenth Annual Froede Classic Memorial for an enjoyable and successful event.
'Ie -I
February 14, 1996
SUBJECT:
The Honorable Mayor and city council
John D. Goss, city Manager&i~~
X'"
city council Meeting of February 20, 1996
TO:
FROM:
This will transmit the agenda and related materials for the regular
city council meeting of Tuesday, February 20, 1996. Comments
regarding the Written Communications are as follows:
5a. This is a letter from the city Attorney stating that the city
council did not meet in Closed Session on February 13, 1996.
IT IS RECOMMENDED THAT THIS LETTER BE RECEIVED AND FILED.
5b. This is a letter from the San Diego Area Wastewater Management
District requesting payment for the FY 1995-96 budget year.
Mr. Thoma~ L. Woodruff, General Counsel for the District, has
asked Chula vista to contribute $5,471 for membership dues for
this fiscal year. Chula vista withdrew from the District in
June of 1994. Furthermore, we declined a similar request last
year for membership dues in order to keep the District going.
IT IS RECOMMENDED THAT STAFF PREPARE A LETTER FOR THE MAYOR'S
SIGNATURE DECLINING THE DISTRICT'S REQUEST FOR FUNDS AND
REITERATING THE CITY'S POSITION ON MEMBERSHIP IN THE DISTRICT.
JDG:mab
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(IN OF
CHULA VISTA
OFFICE OF THE CITY ATTORNEY
Date:
February 14, 1996
From:
The Honorable Mayor and City COUl1A~
Bruce M. Boogaard, city Attorneyld~
Report Regarding Actions Taken in Closed Session
for the Meeting of 2/13/96
To:
Re:
The city Attorney hereby reports that the city council did not meet
in Closed Session on February 13, 1996.
BMB: 19k
C:\lt\clossess.no
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276 FOURTH AVENUE, CHULA VISTA. CALIFORNIA 91910 . (619) 691-5037 . FAX (619) 585-5612
f'W.(nwro.Roc)<l><lP~
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LAW OFFICES OF
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A PROFIi:;-S-SIONA.L... CORPOrtATlON
INJAN 2 9 !QQh
TELEPH';'NE (714) 55&7000
~~~ (7114) 835-7787
COUNCIl OiflifS
CHULA VISIA. CA
ROURKE, WOODRUFF &. SP
TERRY C. ANDRUS
""RY E. BIN NINO
M. LOl5 BOEl"K
BETTY C. BURNETl'
....OHN E. C"V"N"UOH
CRAIO O. F"RHINOTON
RQOEu. R. nCK
....OSEPH W. FORB"TU
LOI$ E. ,JEFFREY
THOM"5 F. HIXON
...."MES O. ROURKE
....OHN R. 5t1AW
KENN"RD R. SMART. ....R.
OAHIE I. SPENCE
DANIEl- K. SPRADLIN
"LAN R, W"TTS
TtlO"""S L. WOODRUFF
SUITE 7000
70 I SOUTH PARKER STREE
ORANGE, CALIFORNIA 9266
WRITER'S DIRECT DIAL NUMBER
(714) 56<\.2605
January 25, 1996
Honorable Mayor and Members of the City Council
City of Chula Vista
276 Fourth Avenue
Chula Vista, Ca. 91910
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Re: San Dieao Area Wastewater Manaaement District
Dear Honorable Mayor and Members of the City Council:
I take this opportunity to bring to your attention certain developments relating to the
San Diego Area Wastewater Management District Specifically, at its meeting of October
27, 1995, after considering several alternatives, the Board adopted a budget for the Fiscal
Year. The total budget amounts to some $60,000.00, but with a $27,000.00 carry-over,
only required a $33,000.00 contribution from all Member Agencies.
The purpose of the budget was basically to just allow the District to continue in
existence, and to have its presence be known in several of the key items involving the City
of San Diego and the regulatory authorities. Specifically, we will continue to participate
nominally in the litigation of United States (US Environmental Protection Aaencv) v. Citv
of San Dieao, concerning the waste discharge requirements That issue, as you know, is
vital to all of the contract Member Agencies for several respects. It has continued to
progress very successfully from the perspective of the City of San Diego and the outlying
communities, and the District has been pleased and fortunate to have participated as an
intervening party. The expense for this participation is very nominal, in view of the fact that
all of the intensive legal work is being handled by Special Counsel engaged by the City of
San Diego.
One of the key items in that lawsuit relates to the issue of reclamation. The Sierra
Club, as an intervening party, has been urging, at every occasion, that the Court order
additional reclamation facilities to be constructed. As you know, the Court has taken the
position that the Clean Water Act does not allow the Government to mandate specific levels
of reclamation, but the Court, within its own powers, has addressed this issue and has
continually urged that the greatest amount of economically viable reclamation be utilized.
This was done in exchange for more favorable consideration for the City and the outlying
communities on other issues.
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Honorable Mayor and Members of City Council
January 25, 1996
Page 2
The District has also been monitoring the legislative proposals, including the pending
measure introduced by Congressman Brian Bilbray, to approve the City of San Diego's
present treatment system as equivalent to secondary treatment. There is an administrative
complaint pending by the Regional Water Quality Control Board concerning spills, and we
have kept abreast of that in order that the Members can fully understand the impacts, if
any, on their communities.
Lastly, the District has continued to take a totally neutral position relative to the
dispute over the billing and assessment of a pro rata share of the North City Plant, as it
relates to the reclamation facilities. The District's Board, which is basically representatives
from the contract Member Cities, has felt that this is rightfully to be resolved between those
Member Agencies and the City of San Diego, and the District should maintain this
neutrality. We continue to express hope that it will be resolved in the near future on terms
favorable to all sides. The Directors are continuing to maintain a high level of optimism that
the District will be fully reactivated in the near future, principally because there appears to
be clear consensus that this District is the best method by which wastewater services can
be owned and operated throughout the greater San Diego region.
The Board of Directors' adopted budget includes a sum for your City, and they are
urging that you reconsider both your active participation as a Member of the District and
that you contribute your annual assessment relating to it. The feeling of the continuing
Agencies is that their representation flows to the benefit of all of the communities that are
part of the system and that it is not an inappropriate request that your City, and the two
other non-participants, renew their membership and financial participation. We would be
most happy to present any additional information or answer any questions that you or your
fellow members of the City Council may have, and we look forward to your favorable
response.
Very truly yours,
ROURKE, WOODRUFF & SPRADLIN
GENERA. COUNSEL
j/lcn{c t'
THOMAS L. WOODRUFF
TLW:pj
cc: Members of the Board of Directors
5'b ,.;;.
SAN DIEGO AREA WASTEWA TER MANAGEMENT DISTRICT
c/o PADRE DAM MUNICIPAL WA TER DISTRICT
10887 Woodside Avenue
Santee Ca, 92072-9003
Telephone: (619) 448-3111
Facsimile: (619) 449-9469
INVOICE
City of Chula Vista
276 Fourth Avenue
Chula Vista, Ca. 91910
FISCAL YEAR 1995-96 MEMBERSHIP BUDGET
PAYMENT FOR DISTRICT OPERATIONS THROUGH
JUNE 30, 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5.471.00
51.>'J
SAN DIEGO AREA WASTEWATER ~iANAGEMENT DISTRICT
1995-96 BUDGET
MGD 1995-96
Flow 1995-96 Less 1994-95 Budget
Aaeney % Budaet Carry Forward Assessment
Chula Vista 16.4% $ 9,840 $ 4,369 $ 5,471
County of San
Diego 24.9% $14,940 $ 6,633 $ 8,307
Coronado 5.1% $ 3,060 $ 1,359 $ 1,701
Del Mar 1.3% $ 780 $ 346 $ 434
EI Cajon 14.8% $ 8,880 $ 3,943 $ 4,937
Imperial Beaeh 4.4% $ 2,640 $ 1,172 $ 1,468
La Mesa 9.7% $ 5,820 $ 2,584 $ 3,236
Lemon Grove 3.1% $ 1,860 $ 826 $ 1,034
National City 6.1% $ 3,660 $ 1,625 $ 2,035
Otay Water
District .5% $ 300 $ 133 $ 167
Padre Dam
MWD 7.6% $ 4,560 $ 2,025 $ 2,535
Poway 6.1% $ 3660 $ 1.625 $ 2.035
100% $60,000 $26,640 $33,360
5b~r
COUNCIL AGENDA STATEMENT
ITEM TITLE:
Item ~ , ~J
Meeting Date2~Uf96 /.,q//.
.2ttJ ,,' /k
Ordinance Amending Schedule IX, Section 10.48.030 of the ~
Chula Vista Municipal Code - Increasing State Law Speed Limits i!,O\,'\\O
certain areas and establishing a speed limit of 35 MPH on )\l~
Greensview Drive from Clubhouse Drive to Hunte Parkw~~~I'lf!Pli(jding
this location to Schedule IX. ,: '5)\"
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SUBMITTED BY: Dircetor of Public work~.
REVIEWED BY: City Manage01 bttD
() ~ (4/5ths Vote: Yes_No_XJ
Based on the provisions of the California Vehicle Code Section 40803, and pursuant to
authority under the Chula Vista Municipal Code section 10.48.030, the City Engineer has
determined that in the interest of minimizing traffic hazards and traffic congestion, and for the
promotion of public safety, there is a need to establish a speed limit on North Greensview
Drive between Clubhouse Drive and Hunte Parkway. This street has recently been completed
anJ opened to traffic serving major portions of EastLake Greens. An engineering and traffic
survey as required by state law has been conducted and it has been determined that the
appropriate speed limit in this area is to be posted at 35 MPH
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RECOMMENDA TION:
Approve the Ordinance establishing a 35 MPH speed limit on North Greensview Drive from
Clubhouse Drive to Hunte Park-way.
BOARDS/COMMISSIONS RECOMMENDATION:
The Safety Commission, at their meeting of ]/1 ]/96, voted MSC 6-0-0-1, with Commissioner
Smith abstaining due to conflict of interest, to support staffs recommendation and recommend
that the City Council adopt an ordinance amending Schedule IX. Section 10.48.030 of the
Chula Vista Municipal Code and establishing the speed limit on North Greensview Drive from
Clubhouse Drive to Hunte Parkway at 35 MPH.
DISCUSSION:
Construction in the EastLake Greens subdivision has created several miles of new streets to
be opened to the public The City Engineer has determined the need to establish a posted
speed limit on North Greensvicw Drive between Clubhouse Drive and Hunte Parkway. This
is necessary to comply with the California Vehicle Code Section 40803 Speed Trap Evidence.
Section 40803 requires evidence that a Traffic and Engineering Survey has been conducted
within five years. There has not yet been a speed limit posted on this portion of roadway and
~"'I
Page 2, Item c;,
Meeting Date2/l3/96
it is currently subject to a state law prima facie 55 MP.H speed limit. An engineering and
traffic survey as required by state law has been conducted for this roadway segment.
North Greensview Drive in this area is a 48' to 60' curb to curb residential collector street 0.98
miles in length with no direct access to the residential property which lines the street on both
sides of the roadway. There is a golf course which fronts a major portion of this street. North
Greensview Drive in this area is striped with a combination of striping patterns which generally
delineate one lane of traffic in each direction. There is basically no on-street parking allowed
with the exception of the area adjacent to Augusta Park. The design speed is a minimum of
40 MPH The Average Daily Traffic (ADT) is 5,060 on North Greensview Drive in this
area.
The above-mentioned engineering traffic survey shows an 85th percentile speed of 39 M.P.H
The accident rate is 0.368 accidents per million vehicle miles (A VM) which is lower than the
statewide average of 207 A VM for similar roadways in the State of California. Based on the
above data, it has been determined that the speed limit should be posted at 35 M.P.H in order
to comply with the California Vehicle Code requirements or else this roadway is considered
a speed trap and police radar enforcement of the posted speed limit cannot be conducted
Based on the above data, it has been determined that the appropnate speed limit should be
posted at 35 M.P.H in accordance with the California Vehicle Code requirements This new
current survey will expire on December ] 7, 2000. It is recommended that the City of Chula
Vista Municipal Code be revised as follows
10.48030 Schedule IX - Increased Speed Limits in Certain Areas
Name of Street Beginning At Ending At Proposed Speed Limit
N. Greensview Drive Clubhouse Drive Hunte Parkway 35 M.P.H
This item was posted as a public notice as an agenda item as required by law.
FISCAL IMPACT: The cost to replace signs and pavement legends is $]50.00.
Attachment. Area Plat
Engineering and Traffic Survey
DMWdmw
(M::'.HOME -ENGINEER '.AGPJDA \NGREENSV .D1.1\\')
File No: 0760-9S-CY029
t '..2..
ORDINANCE NO. ';'/'('.:J
AN ORDINANCE AMENDING SECTION 10.48.030 OF THE ~,O~
OHULA VISTA MUNICIPAL CODE, INCREASING STATE Al~
LAW SPEED LIMITS IN CERTAIN AREAS AND \,y-
ESTABLISHING A SPEED LIMIT OF 35 MPH ON NOR~~
GREENSVIEW DRIVE FROM ;LUBHOUSE DRIVE TO N~TE
~ARKWAY AND ADDING THIS LOCATION TO S~DULE
]x c....\/'
...<;) \
r\......
WEREAS, based on the provi~Vs' of the California
Vehicle ~e Section 40803, and pursuant to authority under the
Chula Vis~Municipal Code Section 10.48.030, the city Engineer has
determinemthat in the interest of minimizing traffic hazards and
traffic CRgestion, and for the promotion of public safety, there
is a nem to establish a speed limit on North Greensview Drive
between ~~bhouse Drive and Hunte Parkway; and
lHEREAS, a traffic and engineering study, as required by
State La~, has been conducted for this roadway segment and it was
determinal that a speed limit of 35 M.P.H. is the appropriate
speed; aBl
WHEREAS, the Safety Commission at its meeting of January
11, 1996 roted 6-0-0-1, with Commissioner smith abstaining, to
support saff's recommendation and recommend that the City Council
adopt an~dinance increasing the speed limit.
NOW,THEREFORE, the City Council of the City of Chula vista
does or~n as follows:
SEamON I: That Schedule IX of section 10.48.030 of the Chula
vista Muricipal Code, Increasing State Law Maximum Speed Limits in
Certain~eas, is hereby amended to include the following changes:
10.48.0>> Schedule IX-Increased Speed Limits in Certain Areas
Namellf Street Beginning At Ending At Proposed Speed
Limit
N. Gremview Clubhouse Hunte Parkway 35 M.P.H.
Drive Drive
SEmiON II: This ordinance shall take effect and be in full
force on,he thirtieth day from and after its adoption, or when the
appropri~e signs are erected giving notice of the maximum speed
limit, dll,ichever occurs last. / f.
Prese~tby Approved as.
John P_L;1'ippitt, Director of t B~uce M.V ~oo
Publiciiti'rks ./ _ ~trr:~y
C:lorI6peed... v-./ (fl' 7
form f)
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SPEED LIMIT -- ENGINEERING/TRAFFIC SURVEY:
STREET:
LIMITS:
North Greensview Drive
Clubhouse Drive - Hunte Parkway
Existing Posted Speed Limit:
NP
MFH
S'lMMARY OF SPEED SURVEYS
Segmen', :
Date Taken:
Number Vehicles on Sample:
85th Percentile Speed:
Range of Speeds Recorded:
Block No.:
ROADWAY CHARACTERISTICS
Clubhouse Drive - Hunte Parkway
December 7. 1995
100
39 MPH
24 -45 Ml'H
1COO - 1300
Width 48' - 60'
Horizontal Alignment
Vertical Alignment
feet Number of lanes for both directions 2
Minimum Radius - 770'
600' V.C. G, - 4.0%, G? - -4.4%. Desi2n speed - 40 MPH
TRAFFIC CHARACTERISTICS
Average Daily Traffic 5,060
On-Street Parking No parking allowed except along AU2usta Park.
Special Conditions No direct driveway access to homes. Golf Course
Accident History The accident rate at this se ment (0.368
vehicle miles) is lower than the average accident rate
in the State of California.
er million
similar roadways
SURVEY RESULTS
Study was Prepared by
Leonardo Hernandez
Date
10/18/95
Recommendation Establish speed limit at 35 MFH. based on low accident rate,roadway
characteristics. and 85th percentile of less than 40 MPH.
6'1-
Date recommendation approved: 12/15/95
By r.-'\4-"'~"~~ ~ X ~ ev~
Approved speed limit: 35 MFH
Per CVC 40803, Survey Expires: 12/7/2000
;GMEJIo'T llNDER S1VDY
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THIS PAGE BLANK
~-r
COUNCIL AGENDA STATEMENT
ITEM TITLE:
/Y~JI/
Resolution Rejecting bids for "Construction of Americans
with Disabilities Act (ADA) Renovations, Phase II (Main Library,
Police Building, Public Services Building, and Parkway Recreation
Center) in the City of Chula Vista, CA (GG-144)" and directing the
Director of Department of Building and Housing to readvertise the
revised project.
Director of Buildi~g and Housin!<U01lf'1Z--
City Manager d/ ~ 16 (4/5ths Vote: Yes_No..KJ
Item 7
Meeting Date 2/20/96
SUBMI'ITED BY:
REVIEWED BY:
At 2:00 p.m, on January 17, 1996, in Conference Room 2 in the Public Services Building,
the Director of Building and Housing received sealed bids for project "Construction of
ADA Renovations, Phase II (Main Library, Police Building, Public Services Building, and
Parkway Recreation Center) in the City of Chula Vista, CA (GG-144)." The work to be
done consisted of modifying existing restrooms to accommodate individuals with disabilities.
The work included minor demolition work, construction of interior walls, plumbing fixtures,
doors, hardware, signage, and interior finishes.
RECOMMENDATION: That Council reject bids and direct the Director of Building and
Housing to readvertise the work.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Funds for modifying existing buildings to accommodate persons with disabilities were
included in the FY-94, FY-95 & FY-96 CIP programs (GG-144). Approximately 20
locations within various City facilities require modifications to accommodate individuals with
disabilities in accordance with ADA. Plans and specifications for these modifications were
prepared by the Building and Housing Department. Bids for this project were received
from two contractors as follows:
Contractor Bid Amount
1. CDM Construction - EI Cajon 59,039.00
2. Famania Construction, Inc, - National City 63,976.00
The low bid by CDM Construction was above the Department's 1995 estimate of $34,430
by $24,609 or 71.5% .
7~1
Page 2, Item
Meeting Date
7
2/20/96
The City's ADA Coordinator, along with the Building Projects Supervisor from the Public
Works Department, reviewed the work to be performed and determined that the bids
received for the work were higher than originally anticipated, Additional information, such
as emphasizing the reuse of existing materials where possible, will be incorporated into the
plans and specifications as a method of trying to obtain future bids more consistent with
staffs original cost estimates for this phase of the project.
FISCAL IMPACT: Revisions to "Construction of ADA Renovations Phase II"
specifications is expected to result in several thousands of dollars savings to the City and
compatibility with the Department's original cost estimates for this project. Cost for
additional staff time to revise plans and specifications is minimal and within the amount
budgeted for this project.
KGLlbwr
c:\wp51 \disacces\adarejct
7- .2-
RESOLUTION NO. 1~-tI~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA REJECTING BIDS FOR "CONSTRUCTION
OF AMERICANS WITH DISABILITIES ACT (ADA)
RENOVATIONS, PHASE II (MAIN LIBRARY, POLICE
BUILDING, PUBLIC SERVICES BUILDING, AND
PARKWAY RECREATION CENTER) IN THE CITY OF
CHULA VISTA, CA. (GG-144)" AND DIRECTING THE
DIRECTOR OF BUILDING AND HOUSING TO ADVERTISE
THE REVISED PROJECT
WHEREAS, at 2:00 p.m. on January 17, 1996, in Conference
Room 2 in the Public Services Building, the Director of Building
and Hosing received the following two sealed bids for project
"Construction of ADA Renovations, Phase II (Main Library, Police
Building, Public Services Building, and Parkway Recreation Center)
in the City of Chula Vista, CA. (GG-144)":
Contractor Bid Amount
CDM Construction - El Cajon $59,039.00
Famania Construction, Inc. - National City $63,976.00
WHEREAS, the low bid by CDM Construction was above the
Department's 1995 estimate of 434,430 by $24,609 or 71.5%; and
WHEREAS, the City's ADA Coordinator, along with the
Building projects supervisor from the Public Works Department,
reviewed the work to be performed and determined that the bids
received for the work were higher than originally anticipated; and
WHEREAS, staff recommends readvertising for bids; and
WHEREAS, additional information, such as emphasizing the reuse
of existing materials where possible, will be incorporated into the
plans and specifications as a method of trying to obtain future
bids more consistent with staff's original cost estimates for this
phase of the project.
NOW, THEREFORE, BE IT RESOLVED the City Council of the
City of Chula vista does hereby reject bids for "Construction of
Americans with Disabilities Act (ADA) Renovations, Phase II (Main
Library, Police Building, Public Services Building, and Parkway
Recreation Center) in the City of Chula vista, Ca. (GG-144).
BE IT FURTHER RESOLVED that the Director of Building and
Housing is hereby authorized to advertise the revised roject for
bids.
Kenneth Larsen, Director
Building and Housing
C:\rs\ADA.bid
of
//
Attorney
':CJ
Presented by
?J
COUNCIL AGENDA STATEMENT
Item T
Meeting Date 02/20/96
ITEM TITLE:
Resolution J 8'.;J. J ? Appropriating funds, accepting bids and awarding
contract for "Memorial Park Restrooms Building Construction in the City of
Chula Vista, California (PR:~.~
Director of Public Works ('I' ~
Director of Parks & Recreati~
. '(
City Manager U I \ (, (4/5ths Vote: YesXNo->
j,-,
SUBMITTED BY:
REVIEWED BY:
At 2:00 p.m. on January 10, 1996 in Conference Rooms 2 & 3 of the Public Services Building, the
Director of Public Works received bids for the "Memorial Park Restrooms Building Construction in the
City of Chula Vista, California (PR-168)." The work includes the construction of a public restrooms
huilding within Memorial Park as well as other miscellaneous work as described in the specifications.
RECOMMENDATION: That Council approve the Resolution to:
I. Reappropriate $23,670 from the Playground Renovation CIP project (PR-183); and
2. Accept bids and award contract to C.D.M. Construction - EI Cajon in the amount of
$136,900.00.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION: Funds for this project were first approved in the FY 1992/93 Capital Improvement
Program (CIP) budget. The project was originally funded at $348,500. The scope of work was to
provide for the reconstruction of the restroom and stage improvements at Memorial Park. The stage
improvement funding is a State grant in the amount of $98,500. The grant funds cannot be co-mingled
with the PAD funds in the crp restroom project, therefore grant funds must be deducted from the funds
available for the award of contract.
This project has been subject to changes in the scope of work and several fund transfers. One of the
determining factors in the change of the scope of the work was the location of the restroom. Originally,
the Master Plan called for the relocation of the restroom from the existing site at the southeast corner of
the park to a site on the northeast side of the park. Residents in the area were concerned and discussed
the issue with the City Council. As a result. the new Master Plan relocation of the restroom was revised
to cause the construction of a new restroom at the original site. This change entailed the re-working of
the plans and construction documents; a further expense to the project.
8'''/
Page 2, Item ~
Meeting Date 02/20/96
With respect to the fund transfers, other competing CIP projects became priorities because they were
further along in the design and bidding process. In addition, the need to move this restroom to a different
location in the park further delayed the progress of this project. Recognizing that the project would be
delayed for quite some time, funds were transferred from the project to help fund more pressing CIP's.
However, now that the relocation study has been completed and approved by Council. construction
documents have been prepared and staff is ready to award the bid. In addition, this CIP has become an
immediate priority because vandals destroyed the restroom. This necessitated the need to raze the
restroom in May 1995. We have been renting a portable restroom ever since, at a cost of $390 per
month. By proceeding with restroom construction, this rental fee will be eliminated. Staff plans to have
the restroom built before the busy summer months and the "Sunday Concerts in the Park. "
The major expenses for this project to date include:
Expenditure Amount Balance
Project Current PAD Balance $250,000.29
Staff Services $22,872.52 $227.I 27.77
Design Services $30,220.15 $196,907.62
Transfer to Los Ninos $22,570.00 $174,337.62
Transfer to Tree Grant $ 8,671.00 $165,666.62
Transfer to Hilltop Park $29,322.00 $136,344.62
Comfort Station Rental $ 4.626.84 $131,717.78
County Dumping Fees $ 2,754.78 $128,963.00
Misc. $ 2,045.29 $126.917.71
Available for Project - PAD $126,917.71
The funding history of the project is as follows:
I. On October 5, 1993, the City Council approved funds for the Hilltop Park project. This
transaction transferred and reappropriated $29,322 from Memorial Park to Hilltop Park (PR-175).
2. On November 23, 1993, the Council approved the transfer of $8,671 from Memorial Park to the
Small Business Tree Planting Program Grant (PR-189).
3. On February I, 1994, the City Council approved the transfer and reappropriation of $22,570
from the Memorial Park CIP to the Los Ninos Restroom CIP (PR-152).
~'.J-
Page 3, Item 8"
Meeting Date 02/20/96
All previous fund transfers and expenses associated with the project have now brought the project fund
balance to $126,917.71 (or $126,920). As the recommended construction bid and funds for contingency
is $150,590, additional funds in the amount of $23,670 ($126,920 + $23,670 = $150,590) are required
for the completion of the project.
Thus, staff is recommending the following funding for the project; reappropriation of $23,670 in PAD
funds from the Playground Renovation project (PR-183). This project was approved in FY 1992/93.
It is part of a three (3) phase endeavor to renovate and/or replace deteriorated playground equipment in
city parks. A great deal of this work is associated with rehabilitating the play area equipment up to
specification. While staff has been expending funds from these projects (completion of playground
renovations at Rohr and Hilltop Parks), constraints on workload have pushed completion of any additional
playground renovation in FY 1995/96 to FY 1996/97. Thus, funds from the Playground Renovation
project are available for use to award the contract for the Memorial Park project. Should the Council
approve the reappropriation of $23,670 from the Playground Renovation project, staff would request the
replacement of the funds in the FY 1996/97 request for CIP funding.
Bids were received from eight contractors as follows:
Contractor
Base Bid
I. C.D.M. Construction., EI Cajon
2. Big Sky Electric., EI Cajon
3. HAR Construction., National City
4. MAHR Construction., Perris
5. Hankins Corporation., National City
6. Famania Construction., National City
7. Parnell & Leonard., San Diego
8. Adams Builders., Chula Vista
$ 136,900.00
$ 138,625.00
$ 139,000.00
$ 142,179.00
$ 145,000.00
$ 164,000.00
$ 165,656.00
$ 172,600.00
The low bid by C.D.M. Construction was above the Architect estimate of $125,000.00 by $11,900.00
or 9.5 %. Staff has reviewed the low bidder's qualifications and references to do the work and found
them to be satisfactory, We, therefore, recommend that the contract be awarded to C.D.M. Construction.
Disclosure Statement
Attached is a copy of the contractor's disclosure statement (Exhibit A).
Environmental Status
The Environmental Review Coordinator has reviewed the work involved in this project and has
determined that the project is a Class 2 exemption under Section 15302 of the California Environmental
Quality Act (Replacement of existing structures).
8" J
Page 4, Item
Meeting Date 02/20/96
r
Prevailing Wage Statement
The source of funding for this project are the existing project funds and the reappropriation of funds from
the Playground Renovation Project (PR-183), both of which are Parkland Acquisition and Development
(PAD) funds. Contractors bidding this project were not required to pay prevailing wages to persons
employed by them for the work under this contract. No special minority or women business owned
requirements were necessary as a part of the bid documents. Disadvantaged businesses were encouraged
to bid through the sending of the Notice of Contractors to various minority trade publications.
Financial Statement
FUNDS REQUIRED FOR CONSTRUCTION
A. Contract Amount $136,900.00
B. Contingencies & Construction Management (Approximately 10%) 13,690.00
TOTAL FUNDS REQUIRED FOR CONSTRUCTiON $150,590.00
FUNDS AVAILABLE FOR CONSTRUCTiON
1. Memorial Park Restroom Building (PR-168) $126,920.00
2. Additional Appropriation - PR-183 (600-6004) $ 23,670.00
TOTAL FUNDS AVAILABLE FOR CONSTRUCTiON $ 150,590.00
FISCAL IMPACT: This action will authorize the expenditure of $150,590.00 of reappropriated PAD
funds from PR-183. After construction, only routine city maintenance will be required.
Attachmem:
Exhibit A - Contractor's disclosure statement
SA:Fi1e No. 0735-IO-PR-16R
(M:\home\cngineer\agenda\memreSLsa)
~#J/
Attachment A
MEMORANDUM
February 06, 1996
File # PR-168
TO:
John Goss, City Manager
Bruce Boogaard, City Attorney
Robert Powell, Director of Finance
Jess Valenzuela, Director of Parks and Recreation.
Beverly Authelet, City Clerk
Ken Goldkamp, Senior Civil Engineer
John P. Lippitt, Director of Puhlic Works ~
Resolution 11'.2. J 7 Appropriating funds , accepting bids and awardingcontract
for "Memorial Park Restrooms Building Construction in the City of Chula Vista,
California (PR-168)"
FROM:
SUBJECT:
Financial Statement
FUNDS REQUIRED FOR CONSTRUCTION
A. Contract Amount $136,900.00
B. Contingencies & Const. Mgmt(Apprx. 10%) 13,690.00
TOTAL FUNDS REQUIRED FOR CONSTRUCTION $150,590.00
FUNDS A V AILABLE FOR CONSTRUCTION
I. Memorial Park Restroom Building (PR-168) $ 97,590.00
2. Additional Appropriation - PR-183 (600-6004) $ 53,000.00
TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $150,590.00
cc: Shirley Buxton
m:",homc\cngilleer\agemla\memre~t.,a
1l"~ /c;--~
RESOLUTION NO. / Y:U ')
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROPRIATING FUNDS, ACCEPTING
BIDS AND AWARDING CONTRACT FOR "MEMORIAL PARK
RESTROOMS BUILDING CONSTRUCTION IN THE CITY OF
CHULA VISTA, CALIFORNIA (PR-168)"
WHEREAS, at 2:00 p.m. on January 10, 1996 in Conference
Rooms 2 & 3 of the Public Services Building, the Director of Public
Works received the following eight bids for the "Memorial Park
Restrooms Building Construction in the City of Chula Vista,
California (PR-168).":
I Contractor I Base Bid I
1. C.D.M. Construction. , El Cajon $ 136,900.00
2. Big Sky Electric. , El Cajon $ 138,625.00
3. HAR Construction" National City $ 139,000.00
4. MAHR Construction., perris $ 142,179.00
5. Hankins corporation. , National city $ 145,000.00
6. Famania Construction" National city $ 164,000.00
7. Parnell & Leonard. , San Diego $ 165,656.00
8. Adams Builders. , Chula vista $ 172,600.00
WHEREAS, the low bid by C.D.M. Construction was above the
Architect estimate of $ 125,000.00 by $11,900.00 or 9.5%; staff has
reviewed the low bidder's qualifications and references to do the
work and found them to be satisfactory and recommends that the
contract be awarded to C.D.M. Construction; and
WHEREAS, the Environmental Review Coordinator has
reviewed the work involved in this project and has determined that
the project is a Class 2 exemption under section 15302 of the
California Environmental Quality Act (Replacement of existing
structures); and
WHEREAS, the source of funding for this project are the
existing project funds and the re-appropriation of funds from the
Playground Renovation Project (PR-183), both of which are Parkland
Acquisition and Development (PAD) funds and contractors bidding
this project were not required to pay prevailing wages to persons
employed by them for the work under this contract; and
WHEREAS, no special minority or women business owned
requirements were necessary as a part of the bid documents,
Disadvantaged businesses were encouraged to bid through the sending
of the Notice of Contractors to various minority trade
publications.
8',7
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA
VISTA DOES HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS:
Section 1. That the city Council concurs in the
determination that this project is categorically exempt under Class
2, section 15302 "Replacing of Existing Structures" of the
California Environmental Quality Act, and directs the Environmental
Review coordinator to file, or ratifies the filing of, a notice of
exemption for this project.
Section 2, That the city Council does hereby accept the
bid of C. D. M. Construction as responsive.
Section 3, The City Council awards the contract for
"Memorial Park Restrooms Building Construction project in the City
of Chula Vista, CA (PR-168)" to C, D. M. Construction in the amount
of $136,900.00, the lowest responsible bidder which submitted a
responsive bid to the approved specifications.
hereby
behalf
Section 4.
authorized and
of the city of
The Mayor of the
directed to execute
Chula vista,
ci ty of Chula vista is
said contract for and on
Section 5. The City Council does hereby reappropriate
$23,670 from the Playground Renovation ClP Project (PR-183).
Presented by
VI" o:oy
John P. Lippitt, Director of
Public Works
Bruce M. d, City
Attorney
C:\rs\.e.park.bid
8"1"
l:TEM Tl:TLE:
~9
l:TEM:
MEETING DATE: 3 96 019 t
PUBLIC HEARING: To consider enacting a Chula Vista
Gaming Plan pursuant to Chapter 5.20 of the Chula
vista Municipal Code.
COUNCIL AGENDA STATEMENT
Resolution ,<t; ~ \~ Adopting a Chula vista
Gaming Plan which wou~d allow pai Gow and super Pan
9 to be played at cardrooms subject to' certain
restrictions, and make other changes including the
permissible hours and days of operation, maximum
bets, allowable house charges per table, and tax
rates per table.
SUBMITTED BY: Richard Emerson, C~f of Police ~1J 47/
Robert Leiter, Dir ct f of Plannih~,elt::
'---------REVIEWEDBY: city Manage~ r* ~~5thS vote: e) i.B'-eX)' No
At the meeting on November 28() fu5, council approved certain
amendments to Chapter 5.20 of the Municipal Code regarding
cardrooms. These changes allow any form of gambling in Chula vista
that is allowed at any other location within the state subiect to
further requlation under a Chula vista Gaminq Plan. This staff
report will only address Council's direction on a defined portion
of the proposed gaming plan, cardrooms. The recommendations and
alternatives identified were the result of a review of the gaming
policies of other jurisdictions in our region and staff analysis
associated with the City of Chula vista's cardroom procP1ures.
RECOMMENDATION:
That council 1) conduct the public hearing and 2) approve the
resolution adopting a Chula vista Gaming Plan which would allow pai
Gow and super Pan 9 to be played at cardrooms subject to certain
restrictions and make other changes in the hours and days of
operation, maximum bets, allowable house charges per table, and tax
rates per table.
BOARDS AND COMMISSIONS RECOMMENDATION: None.
DISCUSSION:
As of November 28, 1995, Gaming Ordinance 5.20 of the Chula vista
Municipal Code was amended to encompass all gaming allowed in the
state of California, subject to adoption by Resolution of a Chula
vista gaming plan. This action prevented the pree~ption of local
decision-making authority by the state (via SB 100) and allowed the
ci ty the opportunity to address some concerns of an existing
cardroom operator.
On October 11, 1995, Mr. Harvey Souza, the owner of the Village
Club Cardroom at 429 Broadway, Chula vista, submitted a letter to
~.
5'-1
Item , Page 2
Meeting Date ~~/~
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d-- ""'-
the Chief of Police requesting several changes to the current
regulations. Mr. Souza's requests are based upon his inability to
compete with the region's Indian reservation casinos. His concerns
'covered hours of operation, types of gaming, maximum bets and house
charges. Staff concurs with some of Mr. Souza's requests and
recommends certain changes via the Gaming Plan that should enhance
his ability to remain a viable business. These changes should also
provide South Bay residents an opportunity to participate in state-
approved gaming without leaving the $outh Bay.
The issue of determining to what extent cardrooms should be part of
Chula vista has been a long standing discussion in this
community. The Cardroom Ordinance has been amended by Council on
six different occasions since 1977.
. _____From the police Department's perspective, the quality ,of_ .life. for.
our citizens is paramount, and staff feels that the recommended
changes will have a minimal impact on the community. Nevertheless,
most changes that are proposed in this Gaming Plan must also be
evaluated through a Conditional Use Permit (CUP) process. The CUP
for each site would take into consideration land use compatibility,
noise, parking and other factors. Other conditions included in the
gaming plan, such as limits on the number of tables and players and
the groundrules under which the games are played, further mitigate
any potential impacts of the recommended changes.
Backqround: Number of Licensed Cardrooms
The Municipal Code allows one eight-table cardroom license for each
40,000 residents or fraction thereof. Thus, with a population of
approximately 155,000, Chula Vista currently has 4 cardroom
licenses. A fifth would be licensable once the population hits
160,001 (which would probably occur in 1998). Of these licenses,
no more than two are permitted to be held by a single owner, with
each two consolidated licenses granting use of 12 card tables.
Two of those licenses are held by Mr. Souza. He is currently
operating under one license at the Village Club, primarily because
his location at 429 Broadway is too small to accommodate a 12 table
operation. He has been operating this business since approximately
1963. Since this preceded the City'S CUP requirements for
cardrooms, his operation at this site is "grandfathered." Unless
there is a significant change in the nature of the operation of the
Village Club, a CUP is not required. Some of the policy changes
recommended tonight, however, would require a CUP were Mr. Souza to
seek to implement them at this current site (e.g. additional day or
longer hours). These CUP requirements are discussed in more detail
below.
The other two licenses are purported to be held by an entity
controlled by the Commerce Club. This company operates one of the
larger cardroom enterprises in the Los Angeles area and is not
/<"1
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2/13/96
2 -2c 'lG
currently operating a cardroom .n Chula vista under either license.
If this entity is able to establish legal ownership of the
remaining two licenses, it too could operate a maximum of 12 tables
in Chula vista. 1
Item
Meeting Date
Reauested Chanqes and Recommendations
After reviewing all Mr. Souza's requests, current municipal codes
and the proposed games, and meeting with him on several occasions,
staff recommends the following changes. Except as noted, Mr. Souza
concurs in these recommendations. A matrix (Attachment 3)
summarizes the current and proposed regulations, along with similar
information tor sun.-ounding cardroom and gaming facilities and
other cities throughout the state.
._-,---------- --- ---
A. GAMES PERMITTED
CURRENT ORDINANCE: All card games which have been
determined by the Attorney General to be permissible,
subject to local licensing by California cities, may be
played in any licensed cardroom, except that pai Gow,
Super Pan 9 ("super Pan"), California 22 and panguingue
may not be played.
REQUEST: Mr. Souza requested the City allow all games
legal in the State of California be played at his club,
but has indicated a willingness to add just pai Gow and
Super Pan.
BACKGROUND: Under the authority currently granted by the
state and City of Chula Vista, the Village Club currently
offers Texas Hold 'Em, Omaha (each with Hi and Lo
variations) and Seven Card stud.
pai gow and super Pan are very different games but
operate on a similar principle to blackjack. Players
place a bet first, and then try to put together
combinations (of dominoes or cards, respectively) which
will beat the dealer's hand. pai Gow is already a very
popular game, with super Pan showing the potential to
join it in popularity.
I
STAFF RECOMMENDATION: Add pai Gow and Super Pan only.
After reviewing other cardrooms within the county and
elsewhere in california, it was found that these two
1 There is some legal dispute currently as to whether these
licenses have been properly transferred, under the requirements of
the City'S ordinance, to the Commerce Club. Staff is currently
analyzing this issue and will report back to the Council as soon as
possible.
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Item , Page 4
Meeting Date~
2 {.Jo(9G
games are very common and popular in card clubs, and
police agencies in jurisdictions where they were allowed
(see matrix; Attachment 3) did not report additional
problems for law enforcement.
_ __~_.~ _ _ ___un
An article which is attached details some of the other
relevant history of California cardrooms and the
potential for illegal activity. However, in light of the
limited number of tables in question in Chula vista (a
maximum of 3 Pai Gow tables per two-license cardroom),
the recommended six and twelve month review periods, and
the opportunity for further changes in the Gaming Plan,
fines for non-compliance and ultimately revocation of
licenses should problems persist, police staff feel
comfortable that the new games would be sufficiently
regulated to control any such _problems... - - ----,- --'-'---
For additional protection, however, based on the
popularity of the new games, police staff recommends
mandatory uniformed private security for each cardroom
location. At least one security guard will be dedicated
at all times to pai Gow and Super Pan tables. Mr. Souza
has agreed to staff's security requirements.
As discussed under Item D. (Number of Players), pai Gow
and super Pan would not be allowed at the present
location of the village Club and would be E~bject to a
CUP at a new location. Furthermore, authorization for
these games would require a separate "Class II" license,
with conditions specified in the gaming plan concerning
license transfer, license termination, and other terms.
B. HOURS AND DAYS OF OPERATION.
CURRENT ORDINANCE: All cardrooms shall be closed each
day from 1:00 AM to 9:00 AM. No cardroom shall be open
on Sunday except from midnight until 1:00 AM.
REQUEST: Mr. Souza requested that the City allows
operation seven days a week and 24 hours a day. In lieu
of that, he has indicated an interest in being open seven
days per week, 8 a.m.- 4 a.m.
BACKGROUND: police staff feel that the issue of hours is
of three-fold significance: 1) Does the time the patrons
leave impact the quality of life in the neighborhood?; 2)
If the facility were open 24 hours per day, would there
be a potential for disorderly conduct problems with
people who wouldn't leave?; and 3) would promotion as a
24 hour gaming site be inconsistent with the image and
culture that Chula vista wants to preserve and project.
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Item
Meeting Date
, Page 5
2-1TSt9 6
1:..- Zc - '/G
staff feels it is important for some shut-down time to be
preserved and, therefore, does not recommend 24 hour
operation. Regarding what time of the morning (e.g. 1
a.m. currently, 4 a.m. proposed) has the least impact on
the surrounding neighborhood, staff proposes to monitor
this via CUPs and six and twelve month review periods
following implementation of any change in hours.
Regarding Sundays, Police staff sees little difference
from a policing perspective between operations on Sundays
and operations any other day of the week. From a
Planning perspective, additional days or hours would
require a CUP, and this would be reviewed for each
cardrooms site.
- -.----------.----.
_ STAFF RECOMMENDATION: _ staff recommends allowing _seven_
days per week operation and operation from 8 a.m. to 4
a.m. Each of these changes would be subject to approval
of a CUP and thus would not be allowed by right at any
given site. They would also be subject to the
recommended six and twelve month "trial period" reviews
discussed below. If any problems occur, Planning and
police staff would retain the right to re-review the CUP,
revoke t~e CUP if appropriate, and/or bring the issue
back to Council to curtail the allowable operating hours.
Allowing Sunday operations at the current hours would be
an increase from 96 to 112 hours per week (an increase of
17%). Together with the change in hours to 8 a.m. to 4
a.m., hours of operation would increase from 96 hours per
week to 140 (an increase of 46%).
C. MAXIMUM NUMBER OF TABLES
CURRENT ORDINANCE: No more than eight (8) tables shall
be permitted at any cardroom, except that at cardrooms
operating under two consolidated licenses, twelve (12)
tables shall be permitted.
REQUEST: No request for a change.
BACKGROUND: The important issue regarding the number of
tables is the effect this has on the number of players.
This is especially significant with pai Gow and super
Pan, which can each have as many as 28 players per table
(seven seated, the remainder standing).
STAFF RECOMMENDATION: Staff recommends that no more than
one quarter of licensed tables (no more than 2 of 8, or
3 of 12) are to be used for pai Gow or Super Pan. This
restriction applies to both games together (i.e.
licensees shall not be allowed to operate 3 tables of pai
\\--S-.
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Item
Meeting Date
, Page 6
2/1J/96
1- - 2. (J Jj (-
Gow and 3 of Super pan).
would not be allowed at
location.
As stated above, these games
the Village Club's current
By maintaining a small number of tables and an even
smaller number of pai Gow or Super Pan table!>, it is
staff's intent to preserve the small-business nature and
history of Chula vista's cardrooms and to keep the level
of gaming activity within manageable limits.
D. MAXIMUM NUMBER OF PLAYERS PER TABLE
CURRENT ORDINANCE: No more than eight (8) players shall
be permitted at anyone card table.
-- ----.------------
REQUEST: Mr. Souza requested that no limit be placed on
the amount of players per table, but in lieu of that has
indicated an interest in limits of nine (9) players per
card table generally (Le. poker), twenty-eight (28)
players per super Pan table and twenty-eight (28) players
per pai Gow table.
BACKGROUND: pai Gow tables accor.:modate seven seated
players and three side bettors per player, for a total of
28 players. super Pan seats 7-8 players and can also
a~co,:unodate side bettors. By allowing pai Gow and super
Pan (at a maximum of three tables) and increasing;'he
poker tables to 9 players, the maximum number of players
in a two-license cardroom would increase from 96 to 165
(a 72% increase).
The current site can only accommodate approximately 64
players and has less than the standard amount of parking-
--it has approximately 35 spaces (47 total shared between
it and another business), rather than the standard number
of one per every 1.5 players and employees (77 people
total) or 51 spaces. The Village Club is allowed to
operate with this non-conforming amount of parking due to
its operation having preceded the city's cup requirement.
STAFF RECOMMENDATION: Staff concurs in the proposal for
poker tables at nine (9) players per table, and Super Pan
and pai Gow at twenty-eight (28) players per table. This
would result in a maximum of 165 players. Staff proposes
requiring any facility offering pai Gow or super Pan or
allowing nine players per poker table to have sufficient
on-site parking (at a rate of one space per 1.5 players
and employees) and these games and higher player limits
would thus not be recommended at the current Village Club
location. Such conditions would be enforce via CUP.
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Item
Meeting Date
, Page 7
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E. MAXIMUM BETS
CURRENT ORDINANCE: No bet or wager in any game shall
exceed the sum of thirty dollars ($30), and only table
stakes shall be permitted. No jackpots shall be allowed.
-..-.-- --_.---,.-- -------
REQUEST: Mr. Souza requests no limit on wagers, or in
lieu of that, a new limit of eighty dollars $80 per bet
for poker, no limits for pai Gow and Super Pan, and no
limit poker tournaments once every thirty days. He does
not requ st any change in the limits on table stakes or
jackpots.
BACKGROUND: "Table stakes" limits wagers during any
given game to the chips each player has before them.
"Jackpots" refer to side pots divided between the highest-
scoring players; these pots are currently prohibited by
both State and city law. These rules are neither
proposed nor recommended to be changed.
other than restrictions on table stakes and jackpots,
wagering is also limited by some dollar amount, which
represents the maximum that can be bet at any given time
(although in the course of a game, a player could bet
that amount each time they draw a card or call on another
player's bet).
Historically, Chula vista operated without any betting
limit. In 1970 a $20 limit was established, with this
limit rising to $30 in 1981.
STAFF RECOMMENDATION: unli 'ce poker, in which players may
wager the maximum bet several times as play continues
around the table or as additional cards are dealt, pai
Gow and Super Pan involve placing bets before the deal
(similar to blackjack). Due to this lack of betting
rounds, the pre-deal bet is much more significant than a
simple poker ante. As a result, these games typically
operate without a set limit.
Although such no-limit games are different from those
currently allowed in the city, staff recommends that they
be allowed in their no-limit form. Mr Souza requested
this provision to assist. in his competition with other
area cardrooms/lndian reservation casinos. police staff
views this as a reasonable request and one which can be
granted without any' affect on the community'S quality of
life.
Staff does not recommend returning to the policy of
having no limits on poker or having no-limit tournaments.
However, with no limits recommended on pai Gow and super
Pap. staff does see a certain inequity in keeping the
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Item , Page 8
Meeting Date.2/13!~
;L - Z c ~ 'tC
poker bets arbitrarily lower. Thus, staff recommends the
poker limit be raised to $80 subject to the six and
twelve month reviews. This higher limit would be allowed
at the current village Club location without a CUP
requirement. Mr. Souza concurs in this recommendation.
The operation and impacts of these changes would be very
closely scrutinized, especially during staff's
recommended six and twelve month review periods
(discussed below) and in light of some of the potential
criminal impacts that any broadening of gaming operations
could bring (See Attachment 6).
F. MAXIMUM HOUSE CHARGES PER HAND
--.--------.--- -~_.-
CURRENT ORDINANCE: No charge
and a half cents ($.375) per
collected from any player
participating in any games.
REQUEST: Mr. Souza requests that the maximum charge be
lifted, or in lieu of that, the charges for poker be
restructured to a flat rate per table which would be ~ore
manageable than the half-cent charges. Based on eight
players per table x the current $.375, he recommends a
maximum charge of $j per table, rising to $4 per table in
1998.
in excess of thirty-seven
hand per player shall be
for the privilege of
Based on the no-limit nature of pai Gow and super Pan, he
requests that the charge for these games be structured as
1% of the amount wagered.
BACKGROUND: The city established the $0.375 charge as a
compromise in 1992, when there had been a request to
raise the charge to $0.50. As Mr. Souza argues, this
works well when there are exactly 8 players and the
charge equals $3 per table, but it is rather unwieldy if
a table has an odd number of players.
STAFF RECOMMENDATION: Staff concurs in Mr. Souza's
request to change the $.375 poker charge per player per
hand to a flat rate per table. It is recommended that
this rate be set at a maximum of $3 per table per hand.
This change would .be effective with adoption of the
gaming plan and would not be contingent upon the village
Club moving to a new location. Regarding the $4 charge
per hand, staff recommends that this be irrplemented
effective 1/1/98 subject to further review by the Police
Chief and shall be chargeable only in connection with an
increase in the flat rate table tax for poker to $4,000.
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, Page 9
;2'13/96
~-",<C, - 'IG
For pai Gow and super Pan, staff recommends that house
charges be established by the cardroom owner at rates not
to exceed one percent (1%) for each one hundred dollars
($100) bet. A copy of the charges established by each
house shall be submitted to the poli~e Department and
shall also be clearly posted in each licensed cardroom.
Item
Meeting Date
G. LICENSE TAX
CURRENT ORDINANCE: The license tax per card table is
currently $1,500 per quarter.
REQUEST: No request for a change.
--- ---- ----_..-- -- --- ----
BACKGROUND: As Mr. Souza looks to relocate and expand to_
a 12-table cardroom and add pai Gow and super Pan, or as
the other license holders look to activate their
:licenses, staff sees the license tax as a means of
providing the additional resources necessary to properly
monitor the new games' operations, review operators'
financial data, and enforce city regulations.
STAFF RECOMMENDATION: based on the other changes in
cardroom regulations (particularly the 46% increase in
hours and the 72% increase in players), staff recommends
either a ~lat rate or a percentage of gross revenues,
according to the following terms:
Flat Rate for poker or other Qames2: $1,500 per table
per quarter for six-day per week operations. otherwise,
the rate would be $1,750 per table per quarter (17% above
the current rate--an increase proportionate with the
addition of Sunday hours). This rate would increase to
$2,500 (67% above the current rate) for any consolidated
two-license operation.
Effective 1/1/98, as discussed above, cardroom operators
would have the option to charge in excess of $3 per hand
(up to a maximum of $4 per table per hand), subject to an
increase in the flat rate per table per quarter to $4,000
(equivalent to a 4.5% tax rate on the increased charges).
Flat Rate for pai Gow and Super pan2: $4,000 per table
per quarter.
Gross Revenues Rate: In each case, if revenues per table
per quarter exceed $60,000, the tax s'.lall be either the
flat rate or a percentage of the quarterly gross
2 As outlined in the Resolution, flat rates would be
applicable ~o all tables auth~:ized under each active license.
~ =7 -(7
Item
Meeting
, Page ~u
Date iil/lJ.' 9-6
,)-,20 . 'rG;
These rates are
revenues, whichever is greater.
recommended at:
Gross revenues/table UP to:
Tax rate:
$70,000
~.80, 000
$100,000
7.00%
7.25%
7.50%
with an additional 0.25% for each additional
$100,000 in revenues, up to a maximum rate of 10%.
----- ------.--'.-
The structure of these tax rates allows for the effective
rate to drop as low as 4.1% and to keep the flat rates in
effect as long as the revenues per table are below
$60,000 per table per quarter. (NOTE:. Revenues..atthe.
Village Club are currently estimated at $40,000 per
quarter.) Once the operation grows beyond $60,000 per
quarter, the tax rate increases as well. Mr. Souza has
accepted these changes.
Anticipated Effects of Proposed Chanaes
With the addition of pai Gow and super Pan and being open on
Sundays, Mr. Souza hopes to recoUp some of the clientele he has
lost as preferences have shifted toward the round-the-clock casinos
of the area Indian reservations.
As the attached matrix shows, pai Gow is currently cffered locally
at sycuan and viejas.3 Although Chula vista cardrooms might have
a somewhat wider draw for these games, the proximity of San Diego
(3 cardrc~ms, with a total of 21 tables; 10 other 7-table licenses
not currently active) and Oceanside (2 cardrooms, expanding to a
total of 90 tables), will continue to command a large portion of
the local market. with the aggressive marketing by area
reservations, there should continue to be effective competition for
regional gaming.
.
As a result, it is unlikely that Chula Vista would stand out from
the crowd in the gaming field in San Diego county. with these
changes, however, Chula vista cardroom owners should be able to
recapture some of the local market share they report losing.
3 oceanside does not prohibit pai Gow, but does not currently
have any pai Gow tables. This will likely change as the city's
cardrooms expand to the new limit of 45 tables per cardroom.
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Item
Meeting
, Page 11
Date 2+U !9~
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Review Periods
staff recommends these changes be enacted with scheduled six and
twelve month review periods in order for Police staff to net ermine
the impact of the new gaming plan and whether the new games and
rules should continue or whether the gaming plan should be further
amended. If problems occur, staff would reserve the right to
continue the review period for an additional six months. A report
and recommendations to council would follow each staff review, at
which time further changes, additions or deletions could be made in
the gaming plan.'
The goal in developing a gaming plan was to regulate specific types
of wagering in Chula Vista. The changes made in this gaming plan
should not affect the quality of life to the citizens of Chula
___________vista~.but will enhance the ability of a cardroom owner._to. maintain--
a long-standing business while attempting to keep pace with the
changing market.
with the recommended percentage-based table tax, staff will also be
receiving quarterly financial reports that should assist in
tracking the overall level of activity at Chula vista cardrooms.
This data should facilitate understanding and consideration of the
new games' impacts on the businesses' profitability and increase
the analytical value of the six and twelve month reviews. For
comparison purposes, staff has also requested a set of current
financial reports and ongoing data to include those games (i.e.
poker) on which a percentage tax is not applied.
Conditional Use Permit
All cardroom operations are subject to approval of a Conditional
Use Permit. The current site of the village Club preceded this
requirement and is therefore "grandfathered" unless there is some
significant change in the operation. For example, if the number of
players increased, that would increase the number of parking spaces
required and could trigger a CUP. A CUP at this or any other site
would also deal with such issues as noise and impacts on
surrounding land uses.
Mr. Souza has pursued obtaining another property near his current
location as a substitute or expansion site. However, with the
additional parking that pai Gow would require, this site would not
accommodate his needs either and he has indicated that he is
looking at other sites in the City.
, Since the gaming plan is adopted by council resolution, it
may also be amended by Council resolution at any time, and this
authori ty would not expire with or be limited to the timing of
schedul~u six or twelve month review periods.
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Item
Meeting
, Page 12
Date 2113~6
,7-.J. 0 _elk'
Once Mr. Souza or another licensee identifies a site, it would be
subject to staff processing of a CUP and Planning commission
consideration.
other Chanqes
For ease of administration, staff has also incorporated various
sections of the existing Ordinance into the text of the Gaming
Plan. These sections are intended to provide a single, reference
document and to clarify certain provisions addressed in both
documents.
Additional changes not dealing with gaming itself concern license
transfer procedures, licensing procedures (including definition of
...class_I and Class II gaming), and sanctions available.to- the.city-
for enforcement of the regulations. Although not detailed here,
the text of these changes appear in the attached Gaming Plan.
FISCAL IMPACT:
Currently the city charges $1,500 per quarter per table, for a
total of $48,000 per year. In the short term, that revenue is not
anticipated to change, since issues of CUPs and various state
approvals must be resolved prior to most gaming expansions.
When any expansion occurs in hours or days or via consolidation of
licenses, the city would receive a flat rate of $1,750-$2,500 per
table per quarter for poker and $4,000 per table per quarter for
pai Gow and Super Pan. These changes could yield an increase in
annual City revem'es from the current level of $48,000 (with only
8 tables licensed) to either $56,000 (with the same 8 tables at
seven days per week) or $138,000 (with 9 poker tables and 3 pai Gow
tables under Mr. Souza's two licenses).
If the gross revenues per quarter per table exceed $60,000 for any
given class of games (with pai Gow and Super Pan comprising a
separate class), then the tax would be either the flat rate or a
percentage (from 7%-10%) of the quarterly gross revenues, whichever
is greater.
Assuming the current poker-only a-table operation and revenues
below $50,000 per table, this gross revenues tax may not be applied
at all. However, based on a 12-table operation with three pai Gow
tables and the peak operation at those tables approximately 12
hours per day, this City revenue is estimated at $265,000 for poker
and $745,00C for pai Gow or super Pan, for a total of approximately
$1 million per year.
Based on less-than-24-hour operation, Mr. Souza has also indicated
he may pursue a poker-only twelve table operation. The city
\~ 1~'\J-
Item , Page 13
Meeting Date 2i1)/~6
}- ;2O-l'G'
revenue associated with this type of operatioO\ is estimated at
$350,000.
with the current revenue at $48,000, the net impact of these
changes would be an increase of as much as $950,000 for a 12-table
consolidated two-license cardroom. Since Mr. Souza holds only tWJ
of the four licenses currently allowed by ordinance, the activation
of the other two could effectively double this fiscal impact. It
should be noted, however, that as these estimates precede the
actual operation of the new games or any 12-table cardrooms, it is
difficult to assess the precise revenue impacts.
Attachments:
1. Resolution; Gaming Plan
2. _ ___Municipal Code, Chapter 5.20
3. Matrix: Current Ordinance, Request, Staff Recommendation, and
Comparison data for other jurisdictions
Letter from Mr. Harvey Souza
Minutes, council Meetings of 11/21 and 11/28
Gaming Article, California Lawver, 12/95
4.
5.
6.
c: \wp51\analyses\cardrm. 113
RPE/AM/JY
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RESOLUTION NO-'~ ~ 'd-
ATTACHMENT #1
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
ADOPTING A CHULA VISTA GAMING PLAN WHICH WOULD ALLOW PAl
GOW AND SUPER PAN 9 TO BE PLAYED AT CARDROOMS SUBJECT TO
CERTAIN RESTRICTIONS, AND MAKE OTHER CHANGES INCLUDING
THE PERMISSIBLE HOURS AND DAYS OF OPERATION, MAXIMUM
BETS, AND AI;LOWABLE HOUSE CHARGES PER TABLE
WHEREAS, at the City Council meeting on November
council approved certain amendments to Chapter 5.20
Municipal Code regarding cardrooms; and
28, 1995
of the
WHEREAS, these changes allow any form of gambling in the
City that is allowed at any other location within the state upon
the adoption of a gaming pl.an (the "Chula vista Gaming .Plan") which
regulates such form(s) of gambling; and
WHEREAS, pursuant to letters dated November 13, 1995 and
January 17, 1996 the owner/operator of the Village Cardroom has
proposed changes to the City regulations governing cardrooms; and
WHEREAS, City staff has evaluated such proposal and
drafted a proposed Chula vista Gaming Plan which incorporates some
of the Village Cardroom's proposed changes, and certain other
changes, on the terms and conditions set forth therein; and
WHEREAS, staff submitted the proposed gaming plan to the
city council for its consideration with comments and
recommendations from the Chief of Police and the City Manager that
the Gaming Plan be approved; and
WHEREAS, in accordance with section 5.20.001 of Municipal
Code, a d~ly noticed public hearing was held on such gaming plan on
February 13, 1996; and
WHEREAS, the City council duly considered all public
on the proposed gaming plan prior to taking action
comments
thereon;
NOW, THEREFORE, BE IT RESOLVED the City council of the
City of Chula Vista does hereby adopt the Chula vista Gaming Plan
in the form attached hereto as Exhibit A, with such minor wording
changes or clarifications as may be required or otherwise approved
by the City Attorney.
Presented by
INf
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Page 2
CHULA VISTA GAMING PLAN
In accordance with Chapter 5.~O 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.
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.
C1IRDROOMS
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 garnes, and the use of which is
available to the public.
2. Licensinq.
2.1 License Required to Operate Cardroom
Licensee's Must be 21 Years or Older.
Individual
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 otherwise in non-
compliance with the terms of the Gaming Code, this Gaming Plan, or
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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 -- 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 thereof by the state Department of Finance.
The number of licenses so authorized may not be more than one per
forty thousand (40,000) residents or any fraction thereof. 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 Tvpes of Licenses -- Class I and Class II.
2.3.1 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
playillg of all games permitted by the State Attorney General as of
December 31, 1995 to be within the permissible subject of local
licensing by California cities, except Super Pan 9, pai Gow,
California 22, Panguingue, and any and all similar games; and (b)
a Class II license shall permit the playing of all games permitted
under a Class I license, and shall also permit the playing of Super
Pan 9 and pai Gow.
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 therefor to the Chief of Police. Such application
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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
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 pa~t 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 subject to investiga-
tions.
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
therefor.
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 li-
censes 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 lim'itations set
forth in section 2.2 hereof, a license may by 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 scle 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
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right, for any reason whatsoever, to reject any and all
applications for a cardroom license hereunder.
2.5 Transfers.
2.5.1 Any licen~e 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, direct or 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 lic~nse 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 A license may only be transferred to a Person that
submits an application for approval by the City and receives
approval from the city in accordance with the procedures set forth
for the issuance of a licenses set forth in section 2.4 hereof.
2.5.1 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, and (b) 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 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.
2.5.4 With the exception of those licenses which have
been issued prior tc September 1, 1992, no l;~ense ~ay be
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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 In the event of a purported transfer of a license
which does not comply with the terms .of this Section (a) the
purported transferror 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.
2.5.6 Upon transfer of a Class II license, the Class II
license so transferred shall immediately revert back to a Class I
license. A Class II license so reverted may be converted back to
a Class II license, but only in accordance with the provisions of
Section 2.3.2 hereof.
2.6 Consolidation.
2.6.1 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 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
wi th the rules and procedures governing license transfers set forth
in Section 2.5.3 hereof
2.6.3 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 -- hereof) in such licenses or the cardrooms operated
thereunder. Under a consolidated license, the maximum number of
tables permitted to be operated is twelve (12), subject to any
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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 In the event that a Class I license is
consolidated with a Class II license, the full benefits and burdens
hereunder of Class II status shall apply to all the card tables
operated under such consolidated license.
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 is not
imposed for purposes of regulation. The tax shall be imposed
against the number of tables licensed, based upon the Class of
license issued with respect thereto, regardless of the number of
tables which may be operated on any given day or the Class of game
conducted thereon.
2.7.2 Amount of Tax -- Greater of Base or Gross Revenues
Rate. The license tax to be assessed and collected on each
licensed cardroom shall be the qreater of the applicable "base
rate" tax per table, or the applicable "adjusted gross revenue
rate" tax per table, if any, 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) $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.
license tax for card tables
license shall be $2,500 per
Class I -- consolidated: The base
licensed under a consolidated Class I
card table per annual quarter. .
c. Class I -- Greater Than $3 Charge Per
Hand: Notwithstanding the foregoing, at such time that this Gaming
Plan approves and the licensee charges in excess of three dollars
($3.00) per table per hand, the base license tax for such Class I
card tables shall be $4,000 per card table per annual quarter.
d. Class II: The base license tax for
each card table licensed to play Class II games under a Class II
license shall be $4,000 per table per annual quarter. For example,
if : single non-consolidated Class I license is converted to a
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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 2 tables shall be the Class II base rate.
Notwi thstanding the foregoing, in the event that no games are
conducted at a table operated under a Class Ii license for an
entire quarter, that table shall be treated as a Class I table for
purposes of this section 2.7.
2.7.2.2 Adjusted Gross Revenues Rate:
a. Calculated for Both Class I and Class
II Tables: If the mean average "adjusted gross revenues" (defined
below) per quarter per table for Class I tables, on the one hand,
or Class II tables (if any), on the other hand, exceeds $60,000 per
table, an adjusted gross revenues tax per table per quarter shall
be determined for each Class of tables with such an average, based
upon the following rates:
Gross revenues UP to:
Tax rate:
$70,000
$80,000
$100,000
7.00%
7.25%
7.50%
with an additional 0.25% tax for each additional
$100,000 or fraction thereof in adjusted gross
T,=venues per table per quarter, up to a maximum
rate of 10%.
Any applicable rate shall be applied on the aggregate amount of
adjusted gross revenues generated per table; in other words, the
applicable rate shall not be applied in combinotion with other
rates as a marginal rate.
b. Revenues Not Attributable to a Class
I or Class II Table: In any case in which a portion of the
adjusted gross revenues cannot be allocated directly to either
Class I or Class II games, these revenues .shall be divided between
the two classes based on the proportion of maximum allowable
players per class of games as licensed at that establishment. For
example, if a cardroom has nine poker tables (Class I) and three
pai Gow tables (Class II), the maximum number of poker players
would be 81 and the maximum number of Pai Gow players would be 84.
Thus, in this case, the Class I tables would be allocated 49.09% of
the non-game-specific adjusted gross revenue and the Class II
tables would be allocated 50.91% of the non-game-specific adjusted
gross revenue.
c. Definition of Adjusted Gross Revenues:
Adjusted gross revenues shall be defined to include all revenues
received by the license holder from per hand money collected, seat
rental fees, and any and all other revenues generated from or
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attributable to card play, except fees charged to players that are
returned to the players through approved direct promotions, subject
to any applicable state and/or city restrictions on such
promotions. Adjusted gross revenues shall be calculated separately
for Class I and Class II Games. Notwi thstanding a.1Y other
provision in this Section 2.7 to the contrary, any table which is
not in use at any time for an entire quarter shall not be
considered in the calculation of adjusted gross revenues per table
per quarter for the other tables and shall itself be assigned an
adjusted gross revenue figure for that quarter of $0.
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. For the first three (3) quarters of any
cardroom operation, the minimum advance payment amount shall be the
applicable base license tax applicable thereto. For each quarter
thereafter, the minimum advance payment amount shall be the mean
average of the license tax amounts which were determined by the
City to be ultimately due and payable to the city with respect to
the most recent previous two quarters for which such data is
available.
2.7.3.2 Reconciliation payment. By no later than
the date falling thirty (30) days after the expiration of each
calendar quarter, a licensee hereunder shall submit to the Finance
Director, in a form approved thereby (a) a verified statement of
the adjusted gross revenues generated during such quarter, and (b)
licensee's request for reimbursement from th~ City, or licensee's
payment of any additional amounts owed, as appropriate, determined
by licensee based upon such sta~ement of adjusted gross revenues.
The Finance Director shall have the authority to designate an
alternate payment procedure to ensure timely collection of all
amounts due.
2.7.4 Audit Rights. In the event that the City
disagrees with any verified statement of adjusted gross revenues
submitted pursuant to section 2.7.3.2, above, the City shall notify
licensee in writing of such disagreement and, at City'S request,
licensee shall submit to an independent audit by the City, or its
designee, of licensee's accounting records in order to verify such
statement. In the event that the City determines that licensee's
verified statement understates adjusted gross revenues, licensee
shall be immediately required to submit payment of the difference
to the city. If such discrepancy exceeds a factor of five percent
(5%), then (a) licensee shall be deemed to be in violation of the
Gaming Plan, and (b) in addition to licensee's obligation to
immediately pay the discrepancy, licensee shall be required to pay
the city's costs in conducting its audit hereunder.
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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.
3. ooeratinq Limitations and Conditions.
3.1 city Land Use ReQu1ations'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~ttorney
General as of December 31, 1995 to be within the permissible
subject of local licen~ing by California cities, except that Super
Pan 9, pai Gow, Califorr.';'a 22, panguingue and any and all similar
games may not be played. The games permitted under this section
shall be referred to herein fro~ time to time as "Class I Games".
3.2.2 Class II License: Subject to the terms and
conditions of this Gaming Plan and the Gaming Code, the holder 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 Super Pan 9
and pai Gow. Super Pan 9 and pai Gow shall be referred to herein
from time to time as "Class II Games".
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 .ne sole discretion of the Chief of
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Page 11
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 Davs of operation.
Licensed cardrooms may operate seven days per week,
except that no cardroom shall be operated, and no card table
licensed under the provisions of this code which is maintained or
operated in connection with any other business shall be used for
any card game, from four o'clock a,m, to eight o'clock a.m. of any
day; and
3.5 Maximum Number of Tables.
3.5.1 Class I
of tables permitted under
license shall be eight (8).
Non-consolidated. The maximum number
;) single, non-consolidated Class I
3.5.2 Class I -- consolidated. The maximum number of
tables permitted under a consolidated Class I license shall be
twelve (12).
3.5.3 Class II -- Non-Consolidated. The maximum nun,ber
of tables permitted under a single, non-consolidated Class II
license shall be eight (8); however, only two (2) of the eight (8)
licensed tables shall be permitted at anyone time to conduct Class
II Games.
3.5.4 Class II -- Consolidated. The maximum number of
tables permitted under a consolidated Class II license shall be
eight (12); however, only three (3) of the twelve (12) licensed
tables shall be permitted at anyone time to conduct Class II
Games.
3.6 Maximum Number of Players Per Table.
3.6.1 Class I Tables. No more than nine (9) players
shall be permitted at anyone card table conducting Class I Games.
3.6.2 Class II Tables. No more than seven (7) seated
players with three additional standing players per seat, for a
total of twenty-eight (28) players per table shall be permitted at
anyone card table conducting Class II Games.
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3.7 Maximum Bets and Bettinq Rules.
3.7.1 Class I Games. No bet or wager in any Class I
Game shall exceed the sum of eighty dollars ($80). Only table
stakes shall be permitted. No jackpots shall be allowed.
3.7.2
or wagers in any
be permitted.
Class II Games. There shall be no limit on bets
Class II Game except that only table stakes shall
3.8 Maximum House Charqes Per Hand -- postinq Reauired.
3.8.1 Class I Games. No charge in excess of three
dollars ($3.00) per hand per table shall be collected by a cardroom
operator from any players for the privilege of participating in any
Class I Game. Notwithstanding the foregoing, effective January 1,
1998, the maximum charge allowed shall be increased to a maximum of
four dollars ($4.00) per hand per table for Class I Games.
3.8.2 Class II Games. No charge in excess of one
percent (1%) of each one hundred dollars ($100) wagered shall be
collected from any player for the privilege of participating in any
Class II Game.
3.8.3 posting Required. A copy of all schedules of
house charges shall be provided,to the Police Chief and shall be
clearly posted in each licensed cardroom.
3.9 Work Permits and Identification Badqes Required For
Manaqers and Emp1ovees.
3.9.1 Work Permit Required. Prior to commencing work at
a cardroom, each proposed manager 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 Application Process. Each proposed manager 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. The work permit,
when issued, shall be valid for one (1) year. Any renewal must
also be approved by the-Chief of Police.' The Chief of Police may
deny the initial approval or renewal of a work permit if, in the
Chief or Police's opinion, (1) in the case of - proposed manager
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the applicant therefor should not be permitted to act as manager or
employee in lieu of management by the licensee of the cardroom; and
(2) in the case of a proposed employee the applicant therefor
should not be permitted to be employed in a cardroom.
3.9.3 Identification bad9~s to be worn. Every manager
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.
3.10 Drinkina of intoxicatina beveraaes orohibited.
The drinking of any intoxicating liquor in a cardroom by
any Person in the cardroom is prohibited. The licensee of a
cardroom shall take all necessary and appropriate steps to assure
compliance with this section.
3.11 Minors orohibited from oatronaae or emo1ovment.
No Person under twenty-one years of age shall be
permi tted to play any game at any card table in the city. No
person under twenty-one years of age shall be employed where any
card table is maintained in the city.
3.12 sians to be Posted.
Licen~ee 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 applicab.le
federal, state or local laws, rules and regulations
3.13 Class II Games to be Played OnlY at Cordoned off Tables.
All cardroom areas to be used for Class II gaming shall
be roped, cordoned or otherwise physically segregated from the
Class I gaming areas. All individuals within such Class II gaming
areas other than cardroom employees, City regulatory or enforcement
staff or uniformed security personnel who are working within the
scope of their employment shall be considered players at the table
for purposes of compliance with the maximum number of players
allowed provisions of section 3.6 hereof.
3.13 Licensee Resoonsible for Comoliance and suoervision of
ooerations.
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 law~, rules,
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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.
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 Monetarv 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 $l,OuO 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 6 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 therefor 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
operation 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 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
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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) A non-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.
(j) Refusal to permit city access to a cardroom for
purposes of auditing or inspecting same.
4.4 Audit and Inspection Riqhts.
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 ~rder to determine whether or not
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such cardroom is being operated in accordance with this Gaming
Plan.
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 Headinqs.
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 Dr intent of the provisions
of any section hereof.
5.3 Gaminq Plan Amendments.
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.
5.4 Inteqrated Plan.
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 effect, and (b)
the Gaming Code provisions otherwise implemented or superseded
hereby shall become effective.
5.5 Aqreement of Licensee to Accept Validi tv and Abide bv All
Provisions.
Each license which holds or is issued a license
hereunder, in order to legally operate a cardr~om 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 nll 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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ATTACHMENT #2
ORDINANCE NO. 2655
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA AMENDING CHAPTER 5.20TO ALLOW IN CHULA VISTA
ANY FORM OF GAMBLING ALLOVJED AT ANY OTHER
LOCATION WITHIN THE STATE SUBJECT TO APPROVAL OF
AND aUAL1FICA TION UNDER A GAMBLING PLAN ADOPTED BY
RESOLUTION OF THE COUNCIL,
THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY ORDAIN AS
FOLLOWS:
Section 1. Section 5,20 of the Municipal Code is hereby amended to read as follows:
Sections:
'Chapter 5.20
GAMBLING'
Subchapter 1. Chula Vista Gaming Clan
5.20.001 Gaming Plan Adopted by Resolution.
5,20.002 All Gaming Allowed Subject to Gaming Plan
5.20.003 Effect of Adoption of Gaming Plan.
5.20,004 Inconsistencies with Chula Vista Gaming Plan
5.20,005 Savings Clause
Subchapter 2. Cardrooms
5.20.010
5,20,020
5.20,030
5.20.035
5,20,040
5.20.050
5,20,060
5.20,070
5,20.0BO
5.20.090
5,20.100
5.20,110
5,20.120
5.20.130
5,20,140
5,20,150
5,20.160
5,20,170
5 ?O,1BO
~,20, 190
Cardroom-Defined.
License-Required-Issuance to person under certain age prohibited,
License-Number permined and transferability.
Consolidati on-Permined,
Llcense-Initiallssuance procedure,
License-Tax and anaching of receipts.
License-Applications required-Contents-Issuance prerequisites.
Work permits required-Application contents-Investigation
Issuance-Period of validity.
Identification badges to be worn.
License-Grounds for revocation.
Rules anti Regulations generally.
Games permined-conditions.
Hours and days of operation.
Drinking of Intoxicating beverages prohibited,
Minors prohi!)ited from patronage or employment.
Maximum number of players per table.
Maximum number of tables on premises-Arrangement,
Supervision of game playing.
Bets and wagers permined when
'::!,arges fc.r game playing-M&x:.nur.. desig..ated,
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fee
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Page 2
5.20.200
5.20,210
5.20.220
Subc'lllpter 3.
5.~0.230
Subchapter 4.
5.20.240
~ Jbchapter 5,
520.250
~ ",=>chapter 6,
5.20.260
Subchapter "
5.20.270
Signs to be posted in cardroom, Contents
license-Revocation criteria,
license-Additional grounds for revocation,
Horse and Dog Wagering
On-Site and Satellite Horse and Dbg Wagering
Sports Book
Sports Book Allowed Subject to Gaming Plan
Casino Gaming
Casino Gaming Allowed Subject to Gaming Plan
Video Gaming
Video Gaming Allowed Subject to Gaming Plan
Other Gaming
Other Gaming Allowed Subject to Gaming Plan
Section 1, Chula Vista Gaming PI"n
5.20,001
Gaming Plan Adopted by Resolution,
In addition 10 the gaming. and regulatory controls that otherwise exist in relation to
g'"" ,lOg. allowed in Chula Vista specifically by this chapter. the city council is hereby
authorized to adopt by resolution after public hearing. and from time to time amend by
resolution after public hearing. a gaming plan ("Chula Vista GJming Plan". or elternatively
~gaming plan") which gaming plan shall contain such provisions end regulations es the city
.council shall deem appropriate. including but not limited to. the following:
,. Types of gaming allowed. including but not limited to card games, on-site horse
and dog wagering, sports book, casino games, video gambling. etc,.
2. Hours and days of operations.
3, Location of gaming.
4. Auditing of gaming establishments,
5. licensing fees or other charges, including charges on a percentage of gross
receipts basis. in an amount Council deems appropriate,
6, Maximum number of players per table.
7. Bets and wagers permitted.
8, Charges for gaming.
9, Licensing. including number of licensees and consolidation,
10. Orinking of intoxicating beverages,
, 1. Maximum number of tables on premises.
12. Every aspect of operation of gaming establishments,
However, the Chula Vista Gaming Plan shall not allow eny form or type of gaming
" .''tin the city which is not allr ..,ed at least at one other locati!'n enywhere witt n the State
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of California, or federal or Native American enclave or reservation located within the
jurisdictional boundaries of the state.
Notwithstanding the foregoing, no gaming plan may be approved b( the council
without receipt and consideration by the council, at a put-lic hearing, of the comments and
reco,nmendations of the chief of police and the city manager; r.nd no permit or license
thereunder may be issued without the concurrence of both the chief of police and the city
council. The gaming plan shall have, at a minimum, a provision that raquires permits to be
issued to specific operators and makes it mandatory that the permit issuing authority is vested
in both the chief of police and the city council jointly,
5.:?O,002
All California Gaming Allowed Subject to Gaming Plan
Notwithstanding anything else to the contrary herein contained, all gaming lawfully
allowed to exist at any location in the State of California, including but not limited to, any
federal enclave or Native American reservation contained therein, shall be, and is hereby
declared to be,lawfully conducted in the City of Chula Vista and shall be and is permitted, on
the condition it complies with, is consistent with, and is permitted by and under the Chuta
Vista Gaming Plan, as same may be adopted and amended by resolution from time to time.
5,20,003
Preeminence and Priority of Gamin\; Plan.
Notwithstanding anything else in this chapter to the contrary, all gaming and any
operational controls thereon which may be allowed pursuant to the Chuta Vista Gaming Plan
shall be deemed to be allowed by this chapter of th~ Municipal Code, and by the enactin~
ordinance without further amendment of said code or ordinar;ce as if same were containel
herein.
5.20.004
Inconsistencies with Chula Vista Gaming Plan
Any inconsistencies between the provisions of this chapter and the Chula Vista Gaming
Plan shall be governed by the provisions of the Chula Vista Gaming Plan.
5.20,005
Savings Clause
If any part of this chapter is held for any raason to ba iIIagal, it is tha intent of tha
council and city that Bach and every remaining provision hereof not held illegal shall ba legal
and remain in full force and effect despite tha declaration of illegality IS to such part.
5,20,006
Characterization of Gaming Plan
The Chula Vista Gaming Plan, when and if adopted. shall not be deemed to be an
ordinance of the city, but ir';tead shall. for all intents and purposes, be deerr.sd to be a
resolutior of the city.
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Subchapter 2. Cardrooms
5.20.010
Cardroom-Defined.
Unless otherwise expanded by the Chula Vista Gaming Plan. for the pumose of this
chapter. 8 .cardroom. is defined to be any space. room or enclosure furnished or equipped
with a table used or intended to be used as a card table for the playing of cards and similar
games. and the use of which is available to the public. (Oid 2112 S 1. 1985; Ord 1305 S2
(part). 1970; prior code S9,101),
5.20.020
license-Required-Issuance to person under certain age prohibited,
Unless otherwise allowed by the Chula Vista Gaming Plan, it is unlawful for any
person. for himself or for any other person. firm or corporation. to engage in or carryon, or
to maintain or conduct. or cause to be engaged in, carried on, maintained or conducted, any
cardroom in the city without first having secured a license from said city so to do. according
10 each and every requirement of this chapter or without complying with each and every
regulation pertaining to such cardroom. Unless otherwise allowed by the Chula Vista Gaming
Plan. it is unlawful for any person to maintain or operate any card table in connection with any
cigar store. pool or billiard hall or any other business. N a room in which card tables are
maintained in the city without such person first having obtained from the council a license
Buthorizing such person to maintain and operate such card table or tables or card table
t :ness_ Unless otherwise allowed by the Chula Vista Gaming Plan. no license shall be
I d to any person under the age of twenty-one years, lOrd. 1305 S 2 (part). 1970; prior
cooe S9,102(1)).
S.20.030
license-Number permined and transferability.
Unless otherwise allowed by the Chula Vista Gaming Plan, the number of licenses
authorized for issuance under the provisions of this chapter shall be limited, based upon the
population of the city as shown upon the population certified by the state Department of
finance, Unless otherwise allowed by the Chula Vista Gaming Plan, the number so authorized
'shall be one per forty thousand residents or any fraction thereof. Unless otherwise allowed
ty the Chula Vista Gaming Plan, all such licenses shall be issued in accordance with the
provisions of this chapter; provided, however. unless otherwise provided by the Chula Vista
Gaming Plan. those persons holding a license to conduct cardroom operation upon the
effective date of this section may continue to hold such licenses subject to the revocation
provisions set forth in this chapter. Unless otherwise allowed by the Chula Vista Gaming
Plan. any license issued pursuant to this chapter may be transferred upon tt-e approval of the
chief of police to a person meeting all of the requirements for the initial issuance of such a
cardroom license. subject to the ratification of the city council which approval may be
withheld in the sole discretion of the chipf of police and which ratification may be withheld
in the sole discretion of the city council, and such approval and ratification may. but is not
required to, be based entirely or in part on the assessment by the chief of pOlice or. as
aoplicable, the city council. of the character of the proposed licensee, or when, in the opinion
Ie r,proving or ratifyi...g entirv. there a~pears to be good clluse why such person should
Df"!rate a cardroom' provid-d. however, that. unless otherwise pro'mJed by thCl Chula
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Page 5
Vista Gaming Plan, with the exception of those licenses which have been issued prior to the
effective date of the ordinance set forth in this section and Section 5,20.040, no license ma)
be so transferred unless the holder thereof has been operating a cardroom for three years at
a fixed location in the city. ~or the purpose~ of this section, unless otherwise p,ovided by the
Chula Vista Gaming Plan, it shall be deemed to be a transfer of a license requiring approval
of the chief of police anci ratification by the city council if I shareholder of I corporate
licensee transfers any shares in the corporate licensee, Unless otherwise provided by the
Chula Vista Gaming Plan, it shall also be deemed to be I transfer of I license requiring IP-
proval of the chief of police Ind ratificatiori by the city council if I partner of I partnership
licensee transfers all or any portion of his or her partnership interest. (Ord. 2528 '1 (part).
1992; Ord. 2347 '1, 1990; Ord. 2150 '1 (part), 1986; Ord. 1738 '1 (part), 1977; Ord.
1305 '2 (part). 1970; prior code '9.102(2)).
5.20.035
Consolidation-Permitted.
Unless otherwise expanded or provided by the Chula Vista Gaming Plan,
notwithstanding the provisions of Section 5.20.160 regarding the maximum number of tables
on premises, the city council may, in their sole discretion, grant one additional license, but no
more than one (unless otherwise allowed by the Chula Vista Gaming Plan) to a person having
an interes. in or holding a license to any cardroom in the city but then only in Iccordance with
the procedures set forth in this chapter or the Chula Vista Gaming Plan Ind only if the total
number of licenses issued, including consolidated licenses as two separate licenses, does not
exceed the maximum permitted by Section 5.20.030 or the gaming plan, If such application
for an additional single license is granted, the maximum number of tables permitted in the
consolidation of two cardrooms is twelve (12) unless otherwise ~rovided by the Chula Vis!.
Gaming Plan. No licensee may obtain or have issued more than two licenses unless otherwisl
provided t>y the Chula Vista Gaming Plan. Unless otherwis.. provided by the Chula Vista
Gaming Plan, a person shall be deemed to have an interest in, or hold, In existing license if
said person is a designated licensee, if they Ire presently married to In existing licensee, if
they are the parent or child of an existing licensee. if they own shares in I corporation that
owns a license or has a partnership interest in a license, if they own I partnership interest in
a partnership that has a license or owns shares in I corporation that owns a license or if some
other relation as specified in the Chula Vista Gaming Plan exists.
Unless otherwise provided by the Chula Vista Gaming Plan, consolidation occurs
whenever I cardroom licensee or I person having I financial interest in I Clrdroom obtains
I license to operate In additional cardroom or ICQuires a financial interest in In Idditional
cardroom.
(Ord. 2528 11 (part), 1992; Ord. 2364 '1, 1990; Ord. 2347 t 1. 1990; Ord. 2015 t 1 (part),
1982).
5,20,040
License-Initial issuance procadure,
Unless otherwise allowed by the Chula Vista Gaming Plan, all licensees shall comply
with the provisions of this f .'la~ter or such other provisions set forth ;~ the Chula Vist:
Gaming Plan. Any applicant! requesting a license as permitted in Section 5.20.030 Shllll p~'
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Ordinance 2655
Page 6
,nrefundable fee as presently designated. or as may in the future be amended by
'l:;:;olution. in the master fee schedule. Section 5.20.040. or the gaming plan, to cover the
cost of investigation, Unless otherwise provided by the Chula Vista Gaming Plan. no applicant
requesting a license pursuant to this section may have any financial or other interest as set
forth in Section 5.20,035 in an'l other cardroom license. or application pending therelore,
Unless otherwise provided by the Chula Vista Gaming Plan, each application shall be totally
independent and unassociated with any other application being submitted for the purpose of
obtaining such a license, The initial period for issuance 01 new cardroom licenses shall be the
month of May. 1977. and in the month of May in subsequent years should there be additional
licenses available. After the termination of the open period in May, no further licenses shall
be issued until the succeeding open perioe unless otherwise provided by the Chula Vista
Gaming Plan. Unless otherwise provided by the Chula Vista Gaming Plan. in the event that
there are applications in excess of the number 01 licenses available in accordance with the
limitations set forth in Section 5.20,030. based upon population. the chief of police shall
conduct a publiC lottery to select those applicants who shall be investigated to determine if
they are qualified to be issued any available cardroom licenses as approved by the chiel 01
police. subject to ratification 01 the city council.
Upon the issuance of available cardroom licenses. the chief of police shall authorize the
Tefund of any application fee to any persons who were not subject to investigations unless
otherwise provided by the Chula Vista Gaming Plan,
lOrd, 2528 11 {partl. 1992; Ord. 2506 11 (part). 1992; Ord. 2408 ~ 1 (part). 1990; Ord,
1511 (partl. 1982; Ord, 1961 11 (part). 1982; Ord, 1738 ~1 (part). 1977; Ord. 1305 ~2
tl. 1970; prior code ~9, 1 02(3)).
S,20.050
License-TaJlllnd attaching of receipts,
Unless otherwise provided by the Chula Vista Gaming Plan. the license tax for
maintaining or operating any card table or card table business in the city is payable quarterly
in advance and fixed at a sum as presently designated. or as may in the future be amended.
in the Master Tax Schedule, Section 5.20.050. or the Gaming Plan, Unless otherwise
provided by the Chula Vista Gaming Plan. the city finance officer shall issue a receipt for each
separate card table license as in this section required. and such receipt shall be attached to
such card table and preserved thereon during the full term for which such receipt was issued.
(Ord. 2408 J1 (partl.1990; Ord. 1305 12 (part). 1970; prior code 19,102(4)).
5.20.060
UcenslI-Application lequlred-Contents-Issuance prerequisites,
Unless otherwise provided by the Chula Vista Gaming Plan. an applicant for a cardroom
license shall submit his application to the chief of police. which application shall be under
oath. and shall include. among other things. the true names and addresses of all persons
financially interested in the business. ihe past criminal record. if any. of all persons
financially or otherwise interested in the business shall be shown on such application. The
.~rm .persons financially interested. shall include all persons who share in the profits of the
iness. (On the basis of gross or net ~evenue. inclucf;"g 'andlords, lessors. lessees, the owner
.. C .mers DI the building. fixtures or equipment. The .ppliClltioll shall also be a"compllnied
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by fingerprints of persons financially interested. (Ord. 2528 i1 (part), 1992; Ord. 1969 i1
(part), 1982; Ord. 1305 i2 (part), 1970; prior code i9.102(5)).
5,20.070
Work permits required.Application contents-Investigation fee-
Issuance-Period of validity.
A. The manager of a cardroom, if he 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. He shall submit his application for such work permit to the chief of
police, which application shall be under oath and shall include, among other things. the
past criminal record, if any, of the applicant and shall be accompanied by the
fingerprints of the applicant. An application for a manager work permit shall be
accompanied by the required feels) or the required renewal feels), The work permit,
when issued, shall be valid for one year, The chief of police may deny such worle.
permit. if, in his opinion, the applicant therefor should not be permitted to act as
manager in lieu of management by the licensee of the cardroom.
8. Employees in cardrooms must obtain a work permit from the chief of police.
Applications for such worle. permits shall be submitted under oath and contain such
information as may be deemed by the chief of police to be necessary to determine
whether the applicant is a proper person to be employed in a cardroom. The chief of
police may deny such worle. permit if, in his opinion, the applicant therefor should not
be permitted to be ~:Tlployed in a cardroom. Ea"h application for a worle. permit ";,all
be accompanied by the required feels)' or the required renewal feels). Such permits
shall be valid for one year,
C. The provisions of this section may be modified by the Chula Vista Gaming Plan.
(Ord. 2506 i 1 (part), 1992; Ord. 2408 i 1 (part). 1990; Ord, 1969 i 1 (part), 1982; Ord.
1961 i 1 (part). 1982; Award 16(,0 i 1 (part). 1976; Ord, 1305 i2 (part). 1970; prior code
i9,102(6)).
5,20,080
Identification badges to be worn.
Every manager and employee of a cardroom licensed according to the provisions of this
chapter shall, at all times when present in such cardrooms, wear an identification badge
containing his photograph, age, address and description of such individual. The provisions of
this Section may be modified by the Chula Vista Gaming ~Ian, (Ord, 2005 11. 1982; Ord.
1305 12 (part). 1970; prior code 19.102(7)).
5,20.090
License-Grounds for revocation,
Licenses for cardrooms may be revoked in the manner and for the reasons set forth in
Section 5.02.180 et seq. of this code and for the further reason consisting of a violation of
any of the provisions of this chapter, or fN allowing persons other thr:'l those named in the
apr:ication on file with the city .::ouncil t I own an interest in or have direct management ()f
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Orolnance 2655
Page B
such cardroom; provided however, that direct management of such cardroom may be
"Jmplished by the employment of a manager pursuant to the provisions of Section
~ .J.070; for maintaining a greater number of tables than the number set forth in the
application; or for maintaining such cardroom business upon premises which are or have
become unsuitable or an improper place therefor. The provisions of this Se:tion may be
modified by the Chula Vista Gaming Plan. lOrd, 1305 ! 2 (part), 1970; prior code !9.1 02(8)),
5,20.100
Rules and regulations generally.
It is unlawful to operate a cardroom in violation of any of the regulations and rules set
iorth in the Chula Vista Gaming Plan, or Sections 5.20.110 through 5.20.200 herein, unless
otherwise allowed or regulated by the Chula Vista Gaming Plan. lOrd. 1305 !2 (partl. 1970;
prior code !9,1 03 (part)).
5.20.110
Games permined-conditions,
Effective upon adoption of a Chufa Vista Gaming Plan that addresses the subject
maner of this section, but only to the extent allowed by the Chula Vista Gaming Plan if more
restrictive than the provisions hereof, all card games which have been determined by the
attorney general to be within the permissible subject of local licensing by California cities may
be played in any licensed cardroom on the following conditions, except that pai-gow, super
pan, California 22 and panguingue may not be playecf 'Jnless they are permitted to be played
I'n1er the terr.;3 and conditions set forth in the Chula Vista Gaming Plan:
). A written set of rules ("games rules") for a proposed card game are on file with the
city and have been approved, in writing, by the chief of police at the time of playing
the game. Said approval may be amended, conditioned or revoked from time to time
in the sole discretion of the chief of police,
2, A copy of the approved game rules showing thereon the approval of the chief of police
are 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. The game is played strictly according to said game rules. Variations of the game,
unless specifically described in the game rules, shall not be allowed.
lOrd. 252811 Ipart), 1992; Ord. 1305 J2lpart), 1970; prior code !9,103(1)),
5.20.120
Hours and days of operation.
Effective upon adoption of a Chuta Vista Gaming Plan that addresses the subject
matter of this section, but only to the extent allowed by the Chula Vista Gaming Plan if more
restrictive than the provisions hereof, licensed card rooms may operate seven days a week,
24 hours per day. Until adoption of the Chula Vista Gaming Plan, no card table licensed under
the provisions of this code which is maintained or operated in connection with any other
. 'in~ss shE'" be used for en" card game from ~'ne o'clock a.m. to Line o'clock a.m, of any
I'
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Ordinance 2655
Page 9
day and all places which are devoted exclusively to the operation or maintenance of a carr!
table business shall be kept closed each day from one o'clock a.m. to nine o'clock a.m; an
no card table shall be used for any card game on Sunday except from midnight until one a.m
(Ord. 2528 11 (part). 1992; Ord. 130S 12 (part). 1970; prior codl' 19.103(2)).
5.20.130
Drinking of intoxicating beverages prohibited,
Unless otherwise allowed by the Chula Vista Gaming Plan, no license shall permit the
drinking of any intoxicating liquor in tha premises licensed under tha provisions of this code,
(Ord. 130S 12 (part), 1970; prior code 19.103(3)).
5,20.140
Minors prohibited from patronage or employment,
No person under twenty-one years of age shall be permitted to play any game at any
card table in the city. No person under twenty-one years of age shall be employed where any
card table is maintained in the city unless otherwise allowed by the Chula Vista Gaming Plan.
(Ord,1305 12 (part), 1970; prior code 19.103(4)),
5,20,150
Maximum number of players per table,
EffeC'~ive upon adoption of a \..hula Vista Gaming Plan that addresses the subject
matter of tl ,;s section. but only to the .extent allowed by the Chula Vista Gaming Plan if mor
restrictive than the provisions hereof. there shall be no limit on the number of player
permitted at anyone card table in any game. Until the adoption of the Chula Vista Gamin.
Plan, no more than eight players shall be permitted at anyone ct:d table, (Ord. 1 ~I)S 12
(part), 1970; prior code 19,1 03(S)).
5.20,160
Maximum number of tables on premises-Arrangement.
Unless otherwise allowed by the Chula Vista Gaming Plan, no more than eight (8)
tables shall be permitted at any premises licensed as a cardroom pursuant to this chapter,
except that at cardrooms operating under two consolidated licenses, twelve (121 tables shall
be permitted, and said playing area shall be located on the ground floor and tha tables shall
be arranged so that the playing surface of each table shall be visibla from the sidewalk or
publiC walk immediately adjacent to tha cardroom, unless otherwise allowed by the Chula
Vista Gaming Plan, The holder of a cardroom license may appeal the visibility requirement to
the zoning administrator, (Ord, 2S28 11 (part), 1992; Ord. 234713,1990; Ord, 130S 12
(partl, 1970; prior code 19.103(6)).
5.20.170
Supervision of game playing,
All cardrooms and/or card tables licensed under the provisions of this chapter shall be
supervised by the :lperator or an ".nployee of the op..rato~ of the cardroom, to assure that
games pla~'ed on said tab' ,:> are played strictly in ac"ordance with the term:> of thiS chaptl
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Ordinance 2655
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'.he provisions of the Penal Code of the state of California. The provisions of this Section
mot be modified by the Chula Vista Gaming Plan. (Ord. 1 305 ~2 (part). 1970; prior code
~9.103(71),
5,20.180
Bets and wagers permitted when,
Effective upon adoption of a Chula Vista Gaming Plan that addresses the subject
matter of this section. but only to the extent allowed by the Chula Vista Gaming Plan if more
restrictive than the provisions hereof, there shall be no limit on bets or wagers in any game,
Until adoption of the Chula Vista Gaming Plan, no bet or wager in any game shall exceed the
sum of thirty dollars, and only table stakes shall be permitted, and no jackpots shall be
allowed unless otherwise allowed. (Ord. 2528 ~ 1 (part), 1992; Ord, 1 952 ~ 1 (part), 1981;
Ord. 1305 ~2 (part), 1970; prior code ~9. 1 03(8)),
5.20.190
Charges for game piaying-Maximum designated.
Effective upon adoption of a Chuta Vista Gaming Plan that addresses the subject
matter of this section, but only to the extent allowed by the Chula Vista Gaming Plan if more
restrictive than the provisions hereof, there ..hall be no limit on the charge which may be
collected from any player for the privilege of participating in any game. Until the adoption of
the Chula Vista Gaming Plan, no charg" in excess of thirty,seven ::1d a half cents ($.375) per
'd per player shall be collected from any player for the privilege of participating in any
Ie, lOrd. 2528 ~1 (part). 1992; Ord. 1952 ~1 (part), 1981; Ord. 1305 ~2 (part). 1970;
prior code ~9,1 03(9)),
5,20,200
Signs to be posted in cardroom.eontents.
Unless otherwise allowed by the Chula Vista Gaming Plan, 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 by the chief of police or Chula Vista Gaming Plan,
and stating the charge per hour exacted from each player for the privilege of playing. In
addition to the foregoing, each table shall identify by prominent sign located thereon the game
which is currently being played at said table unless otherwise allowed by the Chuta Vista
Gaming Plan. (Ord. 2528 11 (parU. 1992; Ord. 1305 ~2 (part), 1970; prior coda
19,103(10)).
5.20.210
License-Revocation criteria.
Licenses for cardrooms may be revoked in the manner and for the reasons set forth in
Section 5.02.180 et seq. of this code or the Chula Vista Gaming Plan. and for any violation
of any of the provisions of this chapter or the gaming plan. Tha city may, but is not required,
to impose a fine in lieu of revocation or institute such other remedy as is permitted in the
t';aming Plan, lOrd, 2528 11 (part), 1992; Ord, 782 (part), 1962; prior code ~9,211,
I } / ::){;
~1 <3 1-37
Ordinance 2655
Page 11
5.20,220
License-Additional grounds for revocation.
Unless otherwise allowed by the Chula Vista Gaming Plan, additional grounds for
revocation shall include:
A, Allowing persons other than those named in the application on file with the city council
to own an interest in, or have direct management of. such cardroom;
B, Maintaining a greater number of tables than the number set forth in the application;
C. Maintaining such cardroom business upon premises which are or have become
unsuitable or an improper place therefor,
D. Violation of the provisions of the gaming plan.
(Ord. 782 (part). 1962; prior code ~9.22).
Subchapter 3.
Horse and Dog Wagering
5.20.230
On-Site and Satellite Horse and Dog Wagering
Notwithstanding anything else to the contrary herein contained. all horse and dog
wager. whether on-site or by satellite, lawfully allowed to exist et any location in the State
of California, including but not limit",d to, any federal enclave or Native American reservatio'
contained therein, shall be, and is hereby declared to be, lawfully conducted in the City r
Chula Vista and shall be and is permitted. All such horse and dog wagering, before it may b..
occur in the City of Chula Vista. shall be conducted under the auspices of a licensee who has
received a rermit fr:>m the city to engage in sports book wagering and be conducted pursuant
tC' the rules and regulations of the city as may be set forth in the Chula Vista Gaming Plan,
as same may be adopted and amended from time to time by resolution efter public hearing.
The gaming plan shall further define horse end dog wagering if seme is regulated thereunder,
Subchapter 4, Sports Book
5.20,240
Sports Book Wagering Allowed Subject to Gaming Plan
Notwithstanding enything else to the contrery herein contained, all sports book
wagering lawfully allowed to exist et any location in the State of California, including but not
limited ~o, any federal enclave or Native Americen reservation contained therein, shall be, end
is hereby declared to be. lawfully conducted in the City of Chula Viste end shall be and is
permitted, All such sports book wegering, before it may be occur in the City of Chula Vista,
shall be conducted under the euspices of elicensee who has received e permit from the City
to engage in sports book wagering end be conducted pursuant to the rules end regulations of
the city as may be set forth in the Chula Vista Gaming Plan, es same may be adopted and
amended from time to time by resolution after public hearing. The gaming plan shall further
define sports book wagering if same is regulated thereunder.
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Page 12
Subchapter 5, Casino Gaming
:0,250
Casino Gaming Allowed Subject to Gaming Plan
Notwithstanding anything else to the contrary herein contained, all casino gaming
lawfully allowed to exist at any location in the State of California, including but not limited to,
any federal enclave or Native American reservation contained therein, shall be, and is hereby
declared to be, lawfully conducted in the City of Chula Vista and shall be and is permitted.
All such casino gaming, before it may be occur in the City of Chula Vista, shall be conducted
\Jnder the auspices of a licensee who has received a permit from the city end be conducted
pursuant to the rules and regulations of the city as may be set forth in the Chura Vista Gaming
Plan, as same may be adopted and amended from time to time by resolution after public
nearing, The gaming plan shClII further define casino wagering if same is regulated thereunder.
Subchapter 6. Video Gaming
5.20.260
Video Gaming Allowed Subject to Geming Plan
Notwithstanding anything else to the contrary herein contained, all video gaming
lawfully allowed to exist at any location in the State of California, including but not limited to,
any federal enclave or Native American reservation contained therein, shall be, and is hereby
declared to be. lawfully conducted in the City of Chula Vista and shall be and is permitted.
All such video gaming, before it may be occur in the City of Chula Vista, shall be conducted
under the auspices of a licensee who has received d permit from the city enc1 be conducted
Dursuant to the rules and regulations of the city as may be set forth in the Chula Vista Gaming
n, as same may be adopted and amended from time to time by resolution after public
.aring, The gaming plan shall further define video gaming if same is regulated thereunder,
Subchapter 7. Other Gaming
5.20.270
Other Gambling Allowed Subject to GJming Plan
Notwithstanding anything else to the contrary herein contained, all gambling lawfully
allowed to exist at any location in the State of California, including but not limited to, any
federal enclave or Native American reservation contained therein, shall be, and is hereby
declared to be, lawfully conducted in the City of Chula Vista and shall be and is permined.
All such other gambling, before it may be occur in the City of Chula Vista, shall be conducted
\Jnder the auspices of 21 licensee who hes received 21 permi1 from the city and be conducted
pursuent to the rules end regulations of the city es may be s' . forth in the Chula Viste Gaming
f'lan, as same may be adopted and emended from time to time by resolution efter publiC
nee ring. The gaming plen shall further define such other gambling if same is regulated
thereunder.. "
...,.....d br. 'J . i1P "':r.:t · b"
~vl{i.qJ I (,(~___ , ,\ v
Richard P, Emerson Bruce M. Boogaard
~~ief of Police City Attorney
)~ C; ~1/
Ordinance 2655
Page 13
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vis
California, this 28th day of November, 1995, by the following vote:
AYES:
Councilmembers:
Alevy, Moot, Rindone, Herton
NAYS:
Councilmembers:
Padilla
ABSENT:
Councilmembers:
None
ABST AIN:
Councilmembers:
None
~~
Shirle Horton, Mayor
ATTEST:
~~J4 () Q,-r/ f!:?
Beverly . Authelet, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO ss.
CITY OF CHULA VISTA
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that
the foregoing Ordinance No. 2655 had its first reading at a regular meeting held on the 21st
day of November, 1995 and its second reading and adoption at a special meeting of said City
Council held on the 28th day of November, 1995.
Executed this 28th day of November, 1995.
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Village Club Card Room ATTACHMENT #4
429 Broadway Avenue, Chula Vista, CA 91910
619/426-4542
January 17, 1996
Chief of police Richard P. Emerson
Chula vista Police Department
276 Fourth Avenue
Chula Vista, CA 91910
Re: Application for modification of Chula vista Municipal Code
as to cardrooms
Dear Chief Emerson:
By letter dated November 13, 1995 to you, I applied for
changes to the Chula vista Ordinance which regulates cardrooms.
Since that time, I have met with you, your staff, and other
city staff. We have discussed your concerns and the concerns of
other city staff members. Finally, we have reached a compromise
which I understand adequately addresses all concerns.
Enclosed is a table which shows, in regard to the items for
which I requested changes, the 9/92 Chula vista ordinance, my
request, and in the bottom two rows a compromise for the property
where my cardroom is currently located and for a new location
where I could operate a larger cardroom, should I be able to
locate such a lo~ation and move.
This compromise is acceptable to me. However, if there is
any change, I would like the opportunity to reconsider my
application.
If there is any question, please contact me or my attorney,
Michael A. Green.
HARVEY
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November 21,1995
Page 15
ATTACHMENT #5
and the prospect that those accounts loaned 10 would have the prospective of paying the loans back. Wb.., it w..
a major account with on-going deficits and large deficits it was appropriate 10 apply those ..feguards. 'That aboul~
have been identified 10 Council and be boped thaI would never happen again. Council should be apprised and give>.
options 10 ronsider. The reserve funds were for a specific issue. The (!uarterly financial report!; should include
any negative balancc, and staff's recommeodations 10 future proJ.:ctions. 'That should also be included in the budget
analysis.
Councilmember Padilla stated in the a&itegate the City did not lose money and the overall financial balance<; of the
City were not in the red. He felt it was a big deal in some regards because of what it was indicative of. It was
obvious from some of the answe,. SIlpplied that some of the funds were not done so they could be pooled for a
greater rate of return. A situation was in pIau where there was unlimited authority for the manager 10 move funds
between accounts. Therefore, the Council was not aware of what was going on and did nol have the opportunity
10 decide bow 10 allocate the funds. It was indicative where the Redevelopment Ag"'CY ..... coocerned of
unreasonably spending beyond what..... reasonably expected in revellues in certain funds. 'That was deficit
spending. The report acknowledged that there was a problem and it needed 10 be fixed. Therefore, Council was
being asked 10 look at laking reserve funds 10 rorrect the situation. He questioned what would bappeIl if the CIty
did not bave a reserve fund and wbat the impact would be on the gelleral fund.
Mr. Powell respooded that the next alternative would be to seek a source of funds outside of the City 00 a loan
basis. Giveo the Agency's fiscal status be did not feel the City would be able 10 obtain SIlcb a loan without the
General Fund as a co-signer. it would be an expensive loan.
Councilmember Padilla stated if the Ageocy defaulted 00 the loan the geoeral fund would be responsible for the
loan. There was some exposure 10 the geoeral fund due to over spending in large accounts in :he Redevelopment
Agency. It rould be corrected and be unJeratood wbat was being done and the magnitude of the problem. The
relationship of the Redevelopment Agency fiscal picture 10 the general fund was the re.al problem.
Mayor Horton did nol feel that inte"retation was rorrect.
Councilmember Padilla responded that was his opinion. The Council rould not solve problems until they agreed
wbo' they were. It was important to acknowledge the relationship between the Agency and gelleral fund and wb
the potential impacts were. If it was nol a problem the item would nol bave been brougbt forward 10 Council wi,
recommeoded cbanges, He rommended Mr. powell for bringing the item forward 10 Council. He did II(,
appre<:iate being put in the position of hav;ng to take from a restricted fund 10 rorrect a situation that should have
never bappened.
Councilmember Moot stated Council had been going over the ^edevelopment Agency issues for over balf the time
be bad been 00 the Council. He underatood it the firat time and that it was something that needed to be romcted.
He also underalood that the item before them was a symptom of that same issue. He fell all Council underatood
that it needed 10 be rorrected and that it was serious. There was a rontinuing obligation for bonds on Town Caltre
I and 11 of over $1 million/year for 20 yeara. That created a debt, the economy turned down, and redevelopment
projects dried up. It had 10 be dealt with and the Council had developed a plan 10 deal with it and be felt they
needed 10 move on,
RESOLUTION 18074 OFn:RED BY COUNCILMEMBER MOOT, reading of the lext WllS waived, passed
and approved 3-1 with Padilla and Rindone opposed,
~I ORDINANCE 1655 AMENDING CHAPTER 5,10 OF THE MUNICIPAL CODE TO ALLOW IN
CHULA VISTA ANY FORM OF GAftmLING ALLO\\'ED AT ANY OTHER LOCATION \\TIHIN THE
ST A TE SUBJECT TO APPROVAL OF AND QUALmCA TIONS UNDER A GAr.mLING PLAN ADOPTED
BY RESOLUTION OF THE COUNCIL lfir.;t readil\l!\ . II bas rome 10 the attention of the City Anorney that
the State has adopted SBIOO which will become effective on and after 111/96 and which proport!; 10 prohibit cities
from amending their gaming ordinance 10 expand gaming in that jurisdiction for at least three yea,.. This
prohibition on local conlrol of gaming will probably be e.tended beyond 1999 if a romprebensive 5tbeme for the
regulation of gaming is allowed in the SLate. SLaff I'OC"mmends Council place the ordinance on first reading and
5t' edule a special meeting for the second reading. (C ,I)' Anorney)
. fro Boogaard sLated there were two proposed ameodments to tl;e ordinance before Council. The firat amendm<
would allow the mauger and police chief 10 "ave mandatory inpul to any gaming ;olan or amendments 10 it tl
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Page 16
Council would consider. No gaming plan could be considered ex~t after a public bearing and receiving comments
from the police chief and city manager. UDder Ibe gaming plan it would be mandatory that Ibe chief of police
",~u1d have veto aulbority over Ibe permitLee. The secoDd cbange would add text under SectioD 5.20.010 similar
e text for sports book, casino gamiDg, and video gaming to oD-site and satellite bo,... and dog w.gering. The
>&DCe was . provisioD to pro\cCt Ibe Home Rule provisioD of Ibe City to license and regul.te gaming and until
a gaming plan was adopted it could Dol go into effect. Provisions of SBlOO were brought to staff's .ttention by Ibe
current licensee requesting v.rious expansions of Ibe cardroom ordinance to allow Ibem more tables, greater bours,
grater Dumber of pl.yers per Iable, and larger w...... 10 order for Ibe ordinance to go into efiect Council would
have to pla.:e it OD first reading wilb . secoDd reading before Ibe end of November so Ibe 30 day referendum period
followiDg Ibe adoptioD of Ibe ordinance would allow it to become effective prior to 1/1196. After reviewing Ibe
proposed changes wilb the cardroom licensee, Ibey bad asked for. slightly less rislc amendmeotto Ibe ordinance
in five categories Ibey bad been soliciting changes in. Compromise laneuage stated "The gaming plan would bave
to specifically address the subject matter of Ibe aection and IbOD, only to Ibe eXleDt allowed in Ibe g.ming plan, if
the gaming plan was more restrictive than Ibese provisions", The City Man.ger CODcurred that Ibe change was
acceptable aDd did Dot pose any greater risk to Ibe City and be CODCUrred. The applicant wanted to add to Sectioo
5,20.010 five things Ibe g.ming plan should try to address. He did Dot b.ve . problem wilb Ibe expansioD of Ibe
list, but wanted the language of SectioD 5.20.010 to be ameoded to read "Whicb gaming plan shall CODtain sucb
regulatioDs as Council deems .ppropri.te including, but Dot limited to, Ibe following elements ",..", That would
give Council ireater aulbority to expand or CODtract sucb regul.tioDs as Ibey felt .ppropriate.
CoUDcilmember RindoDe questioned if the proposal by ODe of Ibe licensees was . place bolder so that if. i.ming
plan was developed those five items would be CODsidered for inclusioD.
Mr. Boogaard respooded that Ibe difference betweeD their proposal and his proposal required. subsequeDt adoptioD
of a gaming plan Ibat specifiC<llly aulborized more players per table. Their proposal attempted to Ollact Ibat cbange
at the preseDt time, but it would Dot become effective UDtil . gaming plan was adopted. The g.ming plan could,
if Council wanted, be more restrictive, Under their plan it was an ordinance change thaI allowed the ..paoded
rights at Ibe preseDt time, but would Dot be effective until Ibe ga",ing plan was adopted at a later date. The
proposal delej!aled aulbority to rej!Ulate gaming by . subsequent resolution which could expaod their rights. It was
a \cChDiC<l] enhancemeot of his proposal and reduced Ibe arj!Ument that Ibe liceDsee's ..ghts were enhanced by the
~inaDce befo.. lbe effective date of SB I 00,
.Rod Davis, 233 Fourth Avenue, Chul. Vista, CA, represenlIng the Chula Vista Chamber of Commerce, stated
lh< :business community was coDcerned wilb anolber run at Home Rule by Ibe State. He fell it was · situation
-bere the State was oetting itself up as Ibe one and only IiceDser of g.ming in Ibe State and laking Ibe revenues.
':le Chamber supported Ibe CODtrol of gaming by Ibe people who bad Il' live wilb Ibe consequences and would
,<:eeive lbe benefit. Persooally, be preferred Dot baving to go outside of the City in order to g.mble.
. Michael A, GreeD, 535 oW Street, Cbul. Vista, CA, representing ViII.ge Club Cardroom (H.rvey SoIWl),
stated the Janguaj!e submitted was to make sure that they preserved Ibeir rights. The I.w stated Ibat Ibere could be
DO amendment to an ordinance which would expaod gaming. He hoped staff would return OD 12/19 wilb. gaming
plan for Council review so Ibey could bave something in place so Ibey could be certain Ibey .voided any problem
wilb SB100 as it regarded cardrooms.
CoUDcilmember Rindooe questioDed if actioo by Council at that time would be an ordinance and, Iberefore, require
a 30 referendum period before becoming effective.
Mr, Boogaard responded Ibat under Ibe aulbority of Ibe ordinance Ibe Council would adopt a resolutioD instituting
a laming plan and would be able to amend Ibat wilb a resolutioD. Any rights granted Ibe third week in December
would be done by. resolution, but be was uncertain that met wilb Ibe schedule as set fortb by Ibe Police Chief.
Mr, Gass stated the present cardroom ordinance specifically limited Ibe Dumber of Iables and qUestiODed if Ibe
Dumber of units would be limited in the future or based UpoD Ibe present formul..
Mr, Booj!aard replied Ibatany amendmeDt or additiooal Dumber of units would be oet fortb in Ibe gaming plan.
The Dumber of Iables could be expaoded by the resolutioD in Ibe g.ming plan.
r.ouncilmember Padilla stated be was DOt comfortable with any ordinance Ib.t expanoed gaming within '!Ie City.
: understood Mr. GreeD aDd b'c c1imt's persper.tives in terms of business and competitioD. It WI! clear Ibat
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VI
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Minutes
November 21, 1995
Page 17
SB I 00 would limit competition. He further understood \be mechanism that would be employed in order 10 preserv
control for the next three years and possibly beyond on a Statewide level if the State approved laming or expaneL
gaming. He would not be surprised 10 .... mov.. by the State 10 remove the citi.. land \I&e authority and othe,
authority citi.. bad regarding laming establishments. He was very concerned regarding the pot.ential of having the
City tie it', erooomic bcpes 10 laming or gambling l>ecau.e be would not support the expLtlSioo of cardrooms,
casino lambling, video gambling, etc. at any time. H. did.... the utility of the issue regardin6 HJme Rule v.......
the State taking the local authority aWlY. In cases of major expansions of laming wilhiD the Stale be questioned
if Council would support language, if a measure was presented 10 the citi=s, a concurreot bo.I.Iot questioned asking
the public if they wanted laming expanded wilhiD the City. That would allow for Home Rule and also lei the
citi=s affected by major expansioDli of laming 10 decide what they wanted for their community.
CounciImember A1evy stated be respected CounciImember Padilla', coocerns. He supported the item in order 10
maintain Home Rule. Whether any of them Were on the Council at the time, the issue of a major casino in Cbull
Viw, would require public discussiOllS and bearing' and would not be aUlOmatically passe<l.
Mlyor Hortoo stated no Councilmember was supporting a Las Vegas type of atmospbere for Cbull Vista.
Councilmember Moot stated gaming was the lOp issue at the League of Californil Citi.. meeting. There was no
doubt It I SUIte level thlt they wanted 10 blve IOUlI cootrol and revenu" geoerated. He felt there would be a great
debate as 10 wbether the SUIte would adopt casino gambling. It was only prudeot for the City 10 not le.ave those
decisioos in the bands of other people. The Council needed 10 protect their ability 10 control what was good for
the City.
Councilmember Padilll SUIted if the State was going 10 lake cootrol from local jurisdictioDli they were going 10 do
it and nolhiDg was going 10 prevent it from bappening. By taking action the Council was not absolutely secu.u.g
local cootrol over gaming issu... In terms of SBIOO, Council was doing wh.t they bad 10 do, but it would DOl slOp
the SUIte from taking actioo. He would feel more comfortable witb language that stated if there was legislation
passed that aoproved wide-spread gaming that it go 'a the vote... of the City and not just require three votes by lbe
Council.
Mr. Boogaard sUIted if Council wanted greater cootrol they could require a super-majority vote of Council, multiple
public bearings, etc. He recommended Council amend the proposed ordinance by' changi"i Section 5,20,001
to read in the first paragraph 'Which llami"i plan shall contain such ngulatioR<; as the Council cIeens
appropriate includi"i, but not limited 10, lhe follo"i"i 12 items: 1) lyl"!5 of gami"i allowed, includi"i bul
not limited to card games, on..it. horse and dog wageri"i, spons book, casino games, ~ideo gambling, etc.;
2) hours and days of operations; 3) 10000tion of llami"i; 4) auditing of llami"i establishments; S) Iicmsing f_;
6) maximwn nwnber of players per table; 7) bets and wagers permitted; 8) tharaes for laming; 9) licmsing,
including nwnber of licensees and consolidation; 10) drinking of lhe inloxicating beverages; 11) maximwn
nwnber of tables on premises; and 12) e~ery aspecl or operation of gami"i establishments". Amend Section
5.20.230 to include the language in his supplemental memo of 11/17 deali"i wilh on-site and satellite horse
and dog wagering, Amend Section 5.20,110, 120, ISO, 180, and 190 as set forth on the information
distributed to Council incorporating the proposed consensus lanauage thai the Cily and existing Jicemee
agreed upon,
ORDINANCE US5, AS AMENDED BY THE CITY AlTORJ\IEY, PLACED ON FIRST READING BY
COUNCll.MEMBER ALEVY, reading of lhe texl was wai.ed, passed and appro~ed 4-1 with Padilla opposed,
Mr. Booiaard wted a special meeting would be required for lbe secoDd reading of lbe ordinaDce.
Mayor Horton stated a special meeling would be called aD 11128/95 al 6:00 p,m. in the Coun<:il Chambers in order
10 consider the second readini of \be ordinance.
ITEMS PULLED FROM THE CONSENT CALEi'I'DAR
Items pulled: none. The minutes will reflecl the r>ublisbed agenda order.
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MINUTES OF A SPECIAL MEETING OF THE CITY COUNCll..
OF THE CITY OF CHULA VISTA
Tuesday, November 28, 1995
6:05 p.m.
Council Chamber!<
Public Serviceo Building
CALL TO ORDER
!. ROLL CALL:
PRESENT:
CounciJmembe... A1evy, Moot, Padilla, Rindene and Mayor Horton
ALSO PRESENT:
John D. Goss, City Manager; Bruce M. Boogutd, City Al1Omey; and Beverly
A, Authelet, City Cled
2, PLEDGE OF .\i..LEGIANCE TO THE FLAG, Sll..EfIo,. PRAYER
BUSINESS
3. ORDL"ANCE 265S AMENDING CHAPTER S,20 OF THE MUNICIPAL CODE TO ALLOW IN
CHULA VISTA AA'Y FORM OF GAMBLING ALLOWED AT ANY OTHER LOCATION WITlIDi THE
Sf A TE SUBJECT TO APPROVAL OF AA'D QUALIDCA TIONS UNDER A GAMBLING PLAN ADOPTED
BY RESOLUTION OF THE COUNCll.. (second readi"" and adoDt;on) -It has come to lbe atle<ltioD of the City
Anorney that the S~le ba.; adopted SB100 whicb will beccme effectivt OD ancl after 1/1/96 and whicb proports 10
prohibil citi.., from kOWdu,g their gamiDg ordinance \0 expand gamiDg in that jurisdiction for at least tb= years.
This prohibitioD OD local coDtrol of l1amiDg will probably be eXleDded beyoDd 1999 if a comprehensive scbeme for
.he regulatioD of l1amiDg is allowed in the S~le. S~ff recommeDd, Council place the ordinaDce on secoDd reading
and adoption. (Cit). Auorney)
Councilmember Moo! s~ted j( .....a.; his understandinl1 that the gamiDg plan would be brougbt back to Council in
different s~l1es.
Richard Emerson, Chicf of Police, respoDded that there wa.; a desire to have the gaming plan cardroom COmpoDeot
broughl to Council before the eod of the year. S~ff would be looking at that, but were uncertain that it coWd be
completed in that short of a lime frame. No other portiOD of the gaming plan would be brougbt forward at that
lime,
Councilmember Moot stated that everything would then remain stalUS quo for the fore=able fuNre except for some
changes to lbe existing cardrooms in CDula Vista.
Chief Emerson responded thaI w.. correct and lbere would be public bearings on anything thaI was broul1ht forv...ro
to Council for con.sideralion,
ORDINANCE USS PLACED ON SECOllo'D READING AND ADOFTION BY COUNCll..MnmER ALEV\',
readi"i of the lext was WaiTed, passed and approTed 4-1 with Padilla opposed,
ORAL COMr.rnN1CATIONS
NODe
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0~51
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RA';:JALL D HUBBARD-
D.e to Ius fr,.nds-i. a m>.n
who m.kes no little plans
and disp.n... mon.y with
an unHinting hand. Aft.r
amassing a fort\ln. in auto-
mobile glass m>.nufacNring,
Hubbard "''aI abl. to indulge
a lii.long pallion for hone
racing He spent S20 million
in 1991 renovating Ingle-
wood'. Hollywood Park
R..cetrack. Three yom later
he added a 525-million
casmo. rhe lint ever located
at a track. In mammoth
n.on Slgn, ",irh "ChS1SO"
sp.ll.d our in 3D-foot I.ners,
i. vi.ible from an altltude
oi four mile..
Th. complex include.
karaoke swte.. three re.tau-
rants, a massage room, a
baromhop. and large. clo.ed-
circuit television screens that
.allow card playen to wager
at any track in California or
Hong Kong. With 60,000
.quare feet of floor .pace
and roughly 150 table., rhe
casmO u rhe tlurd W gell in
the .tate, one of the best
n,.naged, and ...ily the
most ecumenical. Its popu-
lar Asian game., for wtance,
ate call.d Califomi.> Casino
Game. and are played in a
room "irh .thnically neutral
an d.co d.cor wt.ad of rhe
traditional red wall. and
lucky dragoru.
Hubbard. CEO of Holly-
'wood Park Operating Com-
pany, has brave hopes that the
publicly traded corporation
could become rhe Wal-NWt
of California gombling ",rh a nerwork of casinos statewide. "W.
h"", Compton--<h. Cry.tal Park Casino-und.r COrullUC-
tion." h. IOn. "Th= \\'as a vot. of the ci,,' council in Stockton
~ppro\1ng; n.-.\' card-club ordmmce th.~. So we've more than
got OUT h.llld, full."
RJcerrJck clu", are th. current fasluon: Th. Santa Anita
trock m NCJdl.1 U supporon~ a group of lr.vnton planning a
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ATTACHMENT #6
CasID" in neJrbv 1",'!I1<W., and Gold.n Gat. F,.lds ID Alb.m
has r -wv.d p.~rnis.ion to op.n a club At the b.gu-JUIlg of tlo,
y.ar. Califo,nia tud 251 club. and 5,429 table< eirher m we or
plart ,ed. According to Gaming And WQgmng BwirIW, wag-on .,
th..e club. amount to S8.5 billion, or 91 p.rc.nt of a~
carn-room bell in th. country. Cahfornia ranks thlld-
b.hind only N.vada and New Jeney-in garrung proe..:!;
with estimated annua.l 'wagers of 512.5 billion exc1us:Q c.-
Ind'an gaming.
But unlike N.v.da and New Jersey. Califorr.,. h,
no Stat.wide gaming commission. Some local cud-rocr.'.
ordinances don't require revenue audits. md none req'..li:es
the clubs to k..p track of wagers. And rhat, accordlr,g to
law enfore.m.nt, has op.n.d rhe door to mon.y l>.undenng.
.mb.ul.m.nt, and loan shulcing. much of it tied to As,,:.-
based crime sy"citrat.s kno...." as triads
"Ive the club. !.undnes? There's no doubt .bout It,'' """
Stat. Attorn.y Gen.ral Daniel E. Lungren."The va:uotr:
created by al>.ck of prop.r oversight u a aemendoUl ..::o::or.
for CTlmmal actiVlty becau.e [p..nblingJ involv.s cash."
Add. St.ve Telliano of rhe AG'. offic., "Cillor",a car::
room; ha...e been id.ntilied by atl.ast 1\'0'0 nation.;.] '0;:""-
rho Jusoce Departm.nt and rhe U.S. Tr.asury Departmer."
FmanciaJ Cnm.. Enforc.ment N.,,\'Ork-..s rhe be" oFrcr,
Nniry to Iaund.r mon.y in rho Urut.d S..tes. L.t's Jwt ..,. C1C
oppommiry is hug.. But "'", don't kno\\' rhe SlZ. o;rh. po:',
I.m b.cau.. we don't tu.... the ag.nts to teU w."
Stat. pro..cutors luve be.n buildlng a cas. for mcreas,,,
r.gulation sinc. the .arly 1980., when rhe Clucago "'r.'le
syndICat. establi.h.d a b."hhead at th. Cahiorn,. B,::
Card Club in rhe ciry oi BeU. S.v.n incit\1duili hr.ked to C1C
S)"dtcate were indtCted in 1984 by a f.d.nJ grand JUT'\' an"
four w.re convict.d ofrackete.rmg In 1987, 14 mcit\1chili
as.oc;.t.d ,vith rho Gard.n C"y Card Club in s..~ Jo.e w.re
indicted for .kimming approximat.ly 54 milhon In club
r.v.nu.s over an .ight-year penod beginning in 1977. All
.....nrualJy plead.d guilry or no contest to rho charg.s. En',
",ithout ben.5t of an ov.night commISSion, pro..cutors h.'\'.
indict.d individu.J. rec.ntly at a half-doz.n club. in I.~.
Ang.les, Alameda, and Santa Clan Counties.
The most significant cas. im'Oh",d rho comiction of iour
men in 1990 for laundering $12 milhon h drug profits
by inv.sting in th. Bicycl. Club Casino, locat.d in B.U
Gardens. V.S. ~ KTAmt' (SO Fla., No. 879-CR-NCR).
Through asset s.izur. and fo".itur., th. U.S. Marshals
Service end.d up controlling 36 p."ent of th. club and
operating it as a trust.e. But rhe marshal. (ouldn't pr.v.nt
mon.y laund.ring and Joan sharking from going on und.r
rheir noses by incit\idual. all.gedJy tied to the Wo Hop To.
on. of the Hong Kong rriads that dominate the .nnual
S5-bill,on trade in "China white" h.roin. A co-o\\'n.r of
th. club, Georg. G. Hard,e ~: Las V.gas, ......s ,nd'Cl.d
m the underly,ng sch.m.. last J~n.
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" . Jo,. ... .~._..., "... p . . . . . It ... . .', .
Seeking legitinucy for tlielr c2sinos; rr.any of she JaItest Garoer.. and Artichoke )0<, in San Bruno, most cord TOOm.I~'
'"Den J'ublically support Lur:grtn'{Fush for a S"-.Wng had just three or four ubles. "When I ........ growing up in
mmpsio,n, ";The card c)ubs, ~!.ve..i?~e:ri, n;o.re,or,less. SoutJ:lern California,". saY' .Lun~n, ".\ ~ought shcy were ,
_, ""depcrident .:;.~bl.e to do,l. wo.!", ~, ~yshing thcy want, b~t :mom-and-pop $tO,... rd, ~.th= by ~e..sicle .of the freey,-.y,: ,
._' .. dose.:'say> H_011ywood Parl:'sl?ubbani :-y.'e'Y" probablY ~l' and I'd n~ paid ~ ar;te!'con.:" " "i ';-::: . >-",;',' ; '..
the I~diri& p~p?nent oflegisbtion for: the laSt three years':. .,' . ~that began to change in 1 ~~ ,wbeil the Huntington:"
Without J!,CTCaJed regu1ation. even she best card-~lub ParI< Casino anempted to introduce a gome ea1Jed Texis
operaton concede they can't keep money launderen ,?ut. Hold'em, a variety ofswd poker. A municipa1 ordinance per- .
Hollywood pan's director of marl<cting, Mi,hae1 Alben, was miaed only. draw poker and declared all other games illegal.
..ked whar would p~nt someone from w.lking in she dpor The <:a.Sino sought an injunction, arguing that Texas Hold'em
with $100,000 in drug profit>, only to emerge a shon time W2S really a form of draw poker.
later wish a large and perfectly legal check that could be The club lost, but gambling consultant Rose lOOk up the
=,ed no further? MNoshing.M say> Albert. ."you can't ..op cause in PoUr P/Jry<r magazine and later as an expert witn.., in
something like that.": : ( .' dozens of osher court cases. Rose conceded that Teus
. ':,,:,.;' .., . ,." ,.; Hold'emWis.,venion:ofstudpOkdind~edgedtbat
THE N"TION HAS EXPERIENCED .THREE GRE"T W"VES shean.om.ey general had determined in ,1947. that all stud
o{)~.g;ol;...l g.nib!ing, each sep=d by a gen=con. The fint poker games were illegal under ~ction 330. He contended.
began in the colonial period and lasted roughly into the 1820s. however, that she Legisla= in 1885 banned only a single,
The second began aficr the Civil \Vor and surviv:d. into the first specific game-stud-hone poker, whicb no one could
decade ofthepaent century. Both ~ ~ bad beaus< of tnnember how to pJ.y. In Rose's vi~, all other forms ofsrJd
widapT1:ad criminality or the casino< and the nmpant bribery poker must be legal, .....n if she Lav.maken a century b,f,,~
of public o$ciak. We are now experiencing the third v.'2Ve. had never heard of shem.
"Gambling aly.-ays re~ns Wegol as long as hi>torital The argument slowly gained ground. In 1987 a supenor
memory lasts:: sa)~ ~. Ne!sot:! Rose. a prof~or at VlhitC"! ~outt judge permitted stud-poker games in LOI Ang,les
Law School m LoS Angelcs.~bo,~~,\,~jS,f~~ ~e gaining . CD~t)'. HU~linglon 'p~~I<. -:;l~b ~orp. v COl)' of Hun/IM,pm
.......t:r~ '.:usrrY..;:lii .Ameri,", .: " , ," ". ',' :,'. . .' ". P.,I<, No. C55099\
~"'~ ,>toneal m~moryJasts, Later, the Fim Appel-
-:L~ . ut 70yean:"i~ . late District in San
17 ' ,:;.ca1ifonna w:is Ii' gam:' Francisco ruled that she
i; .Jer's pa:ndise in she days statutory ban on stud-
the Bear Flag Republic. borse poker was not
'he srate: Constitution a blanket prohibicon
...~~2.!0"'.!.4e .1o.;CriC:S: Tibbem.. VaM Dr ~"'F
w.eve:r;'~aud-i.i1 ,t872'" (\990) 222 CA3d 389.
)).~guii,;rre p~ohil>::.' ThOt case became she
tea. ,banking 'gamcs': wedge that eventually
'}joyed with' cards and' I"ll'h...l the Cantonese
'~.J'lui.l~rO. mont"; game of pai gow-
c!eai, ~qlienet, rouge tndiconall)' p\ayl:d ""t.o
t noire:, and rnndo. See dominc>-Iike tiles-..,"
tn C ~330. In 1885 shifted she battle bock
I outlawed sIud-borse to the Rate Legislature.
:iUi'''''' ker, an. fan-ean, ..-.- "You bad three Cac-
~ ;.cl-,~-b~. !Wenry-one, tions that cancelled
~r<~ ....~.. : .'. each other out when
~~', _ i1n~l94] ine stllC eouit 'hey - cd' I bb
~~~~.~-"~.'..";"'.'ih~'the..;..s.t ' _i .0 0 y
~~.~ 'f"*'I""" u' -r ._ ., , the Legislarure:' uy!
.. . _. 0""" governments to C'<-':' ',,-, ; .~. ~.' " Rose. "The big club!
conuol eard games not .... ..., .,'.' ..."....'..., ..-.rocdtheAsianga:'tles.
specifically prohibited by ..ctioe .330. ~ auf..'~ the small clu~ just wintc:d to play cards, and law enfon:ement
c...n. 48 CA2d 131. But for ,!~~. casino awnc:n ciml:inucd didn't want "!'y gambling. Basically, shey (ought bat); an"
to offer only dnw poker. and panguingue. a rummy-like fonh over section 330 during the 1980., and tben law
card pme from the Philippines. w.;th the eJC'eption of a f~ enfon:ement jl!S' ga~ up. The clubs got together and pushed
supermarket-si%ed clubs, such. as, ~e."N ormandie Club in through the ~CJ:g of stUd-bo..e poker in 1991:'
~-53
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(l:'I~':";i?-~H,;.:xrjO;;J:.c":.'-:~}z:r"dl;;~:r.:".~-:-4.,;:-t:i';~g'~;:,;; ......~~k~.;;.~;:.;ill.;,>(:;:;-:~\'"f~,,~:;r~: ~
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:t)ICfMIf'-' ,,'S 4-4 CALtFOlllNIA LAWY~~_
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THE UNITED STATES,"
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Suddenly it W25 boom rimes for the card-room ownen.
"I began getting phone calli from ~rybody involved with the
clubs," Rose says. "They'd say, 'You mean we can pl>y any
gam" that's not on the list" I said yes. It's aM"'Y' amazed me
how you can p"y millions of dolW. to build a facility and nN
know what you can do inside it,"
For CM"11ers, the timing couldn't have been better. Proposi-
rion 13 taX limiurions had been followed by a w.ve of factory
closings in the industrial belt south of Los Angeles. Card
clubs appeared to answer a ca.sh-strapped city council's pt2yer'
for income. "Getting [the council's] commitmem is an old
game the card clubs play very skillfully," says Dr. Durand
Jacobs, a psychologist affiliated with Lorna Linda Univt..ity
Medical School who studies gambling addICtion and
in causes. toThey form close affiliations with a number of
counciImembers who art despet2te for more income without
raising taXes:'
N..... casinos soon opened in the Los Angeles suburbs of
Bell, Commerce, and Bell Gardens, where fe.. and we.. paid
bv the 170-uble Blcvcle Club Ca.sino accounted for more than
hili" the murucipal budget. The new clubs introdllced hybrid
games such a.s California Bl;ockjack----me winning hand added
up to 22 ",ther than the forbidden 21. And "ith an eye to the
growing Asian clientele, the O""11ers transformed panguingue
intO Super Pan 9, a fa.st-paced, high-suk.. casino game, In pai
gow, pots of $70,000 are not unknown, and as many as
25 hands can be p!.yed in an hour. Asian games at the Bicycle
Club soon occupied 20 percem of the space and reportedly
.accounted for 60 percent of the profits.
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If A SiATE pons NO SPEED LIMITS ON ITS HIGHWAYS,
some people (bve recklessly; if it permits gambling, crime
occurs. According to a 1992 report by then-San Diego
County dlstritt attorney Edwin L. Miller Jr., the introduction
of high-suk.. pai gow games soon amatted the attention of
the main Hong Kong-ba.sed triads: the Wo Hop To, the Chiu
Chao, the 14K. and the BIg Four, as well as similar groups
based in Taiwon.
In the mid-1980s, Chu Kong-Yin, aka Alfred Chu, took
over the pai gow conc...ion at the Key Club in EmeryvilJe,
just north of Oakland. "The Key W25 where it suned," says
Sergeant Harry Hu, an Asian erime investigator with the
Oakland Police Department. "Chu was a Red Pol_an
enforcer-for the Wo Hop To. They recruited a bunch of
guys from Oakland and trained them to be dealen and loan
sharks." In the Bay Area, the Wo Hop To soon disp!.eed the
Wah Ching gang as local crime lord. leadlng 10 a serie.
of murden and reuliations that extended intO the 19905.
While Ihe Wo Hop To worked Northern California.
the Wah Ching evolved intO the "most developed Asian crim-
inal group on the We" Coa,," with control of "most
,
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L. J. DC1'M is 0 _oIly rocofnaed inl'OStifoti... re-porter bo$Od in
&lXII<Jyn. New Yorio. . <
.' - ....': ;0"..
. .'.;'..
.....~...
-.~.
~"').
;....-,.. .
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of the legal and
illegal pai gow
gambling at the
card clubs in
the Los Angeles
area," according
to the sentenc-
ing memorandum
filed by the U.S.
attorney in Lo.
Angeles for a
convicted loan-
shark operator at
the Bicycle Club.
Other interesting individuals tried their hand at owrung ,
club. California firework.! king W. Patrick Moriarry and
Frank J. Sansone-a floor manager of the MGM G",nn 1Il
Las Vegas who had ties to the Balisrrieri crime famiJ~' of
Milwaukee-opened the $20-million Commerce Clul-
Casino, the ltate's largest card room, in 1983. Within Se'\.'e~
week.!, the club closed because of uuolvency and alleged
poor busin... p",ctices. Though the club reopened und.,
new ownenhip, Morinty and Sansone were indlcted for
bribing three Commerce officials to obuin thm opet2tl!1f
license. Moriarty pleaded guilty to wire fraud, Saruone w'"
convicted of mail fraud, and the officials r'.aded guw'" to
"bribery-re!.ted charg..."
The mounting number of c..... prompted the Le.~"'''
to pass the only recent gambling conrrol bill, the Gar.u"-i'
Reguo-ation Act of 1984 (Bus &: p C ~ 19800 et seq). The '"
permits the AG's office to check the background of Lcens,
applicant>, examine books, inspect premises, and .eue illega;
equipment. But jurisdiction is dlvided between local poLce
and the attorney general's Gaming Registration Pro~lT..
which has a suff of three to proc.... card-room appLcaco"_'
"ithin the required 18O-day period.
"There are no state lam to oversee how the club ;IU.;1:t
their account>, and most of the local agend.. don't have thOI'
provisions,"~ says Debbie Wiley, former manager of the rege"
o-ation unit. "Basically, the clubs are able to NO amok. If you
look at the way they are regulated, it's terrible. It's a joke"
Organized crime laughed hardest. In 1988 the K...
Club's Alfred Chu W25 arrested and convicted 011 imnugn-
rion violations. He W25 replaced by Chong Bing-Keung.
aka Peter Chong, another Wo Hop To member from Hong
Kong. In 1990 Kam Kwong Fung, a businessman wlth
alleged lie. to IwO Hong Kong triads. and his wife
attempted to bribe a Department of Justice special agent to
help secure an opet2ting license for EmeryvilJe'. King MJda.s
Club. Fung fled to Hong Kong; his wife was app..:hend.d
and pleaded guilty to bribery.
In No~ember 1991 the U.S. Senate's Committee on GO\
emmenul Affairs fQund ih~t "th.e '!Io Hop To is active 1Il
. ~""'J.:~:.' ~..: ~'. C~dnued on p&&:t 83
. .'" . " "~"'to. .,). "~' .-:." .
, "' .
.' W'~' .... -;." ,....." "...... ,
CALIFO~NI..."i....wrF. 4S OECEMBER I"".
1?9f
~l - r<-/
r:
Fast Shuffle
Con<inved from par- 4S
many of the '(egal' card clubs in
Emeryville, San Bruno, and San Jose."
Since then a specUl police taSk force has
scatt.,.~d the Wo. Bay Area operation!,
but no one in bw enforcement believes
its member> hav.: gone very Car. In 1993
an Asian games contraCtor at the Bicycle
Club Casino named HolJman Cheung,
who aDegedly hz ties to the Wo Hop To,
...... com.~Cted oC running a loan-slwking
operation at the club. TIm year BIcycle
Club Casino co-owner Hardie was
indicted for money laundering, facUi-
tating a drug tranSaction, and U:imming
SII million ...ith Cheung. amsunce.
"There are all kinds of ways to
"am or launder money in a card-room
operation." says Wuey. "If you can think
of five. there are probably 10 more."
STATE AND feDERAL LAW
enl'orcement agents contend the possi-
bilities Cor crime at the clubs are almOSt
limitless. For instance, according to a
sheriJf. deputy affidavit filed in 1988 for
a search "''arrant at the California Bel'
Club, investigator> found unb.Jances at
the cashier. cage, re1>tives or consultants
on the payroll who performed no work.
stacks oC worthles.s checks cashed Cor club
associates, and an employee who salted
drop boxes with extra chips to inflate
table revenues. The affidavit aDeged the
club included a phantom pai gow
department created by management in
1986 to Wm profits. Partly as a result of
the investigations, the Bell was closed
and reopened as the Regency Card
Club and Casino. In 1992 the "ate
Depanment oC }u"ice discovered the
new owner had fled the country with
money stolen from the club. and it was
dosed again after .",ensM litigation.
The mo" lucrative scams involve
the cashier's cage, At many clubs, the
cages operate as financial institu-
tions that conduct cash transactions,
accept money for depo..;t, cash checks,
~xtend credit. make wire transfers.
and rent safe-deposit boxes, These
aClivities are nominally governed by
the federal Bank Se=c;' ACt (31 USC
S5312(a)(2\(U)). but its provisions are
~' , ucifotmly enforced.
- .
If skimming is easy, IaWldering mOney
is a snap. The clubs have liale opportu"
nity to monitor cash flow bec.= gam-
blers bet against each other, not the
house. "Let me sketch OUt bow simple
(laundering] is:' LungTCn says. "Some-
one comes in with perhaps S 1 0,000,
plays the game, and loses S500 inten-
tionally. He comes back to the cashier
"ith S9,500 and gets a rec"pt for his
game earnings. He's converted that
money from dirty to clean,
"Have you ever seen one of those
receipts" ...ks LungTCn. "It ....'Quld prob-
ably have nothing on it except the guy's
fint name and a brief description. 't-UJe
Cauc.llan, 35 years of age.' Boom.
There's no "ay you're going to identify
somebody that way."
Under the federal money-laundering
statut~, card clubs are required to report
transactions of S1 0,000 or more (see IRC
~6050I). If an individual makes a
series of smaller tunsactions-called
stnlcruring-<he club is required to file a
suspIcious transaction "'POrt. But in the
absence of oversight, a complicit or negli-
gent management can fail to record such
transactions. Moreover, federal law does
not regaro chips as money; if a manager
or careful b.underer convens c:uh into
chips and deposit> them at the cag<. no
report is required. The owner of the
cage account will "'"'" uxes--the COSt of
doing business-when he "ithdraws his
alleged winnings.
One of the most recent scams makes
use of automated credit authoriza-
tions. Criminals using stolen credit
cards or account nwnbers Corge checks
and deposit them in the cardholder's
account. "Card companies credit
an account when a payment arrives,
without waiting for the check to clear:'
says Lee V.raggoner, a U.S Secret Service
agent in the Santa An. ollice. "So [the
criminals] send in 'booster checks: then
go down to the club, insen the card in
one of the [Comm-Check] machines,
and take the check to the cashier's win-
dow. They might have 10 cards they
pl2y to the tune of $35,000 a pop. Then
they either toss the cards or declare
bankruptcy. If we follow this trail, we
could probably go deep into why card
clubs exist."
"There are ceruin clubs in Southern
California that always come to pc' ce
atttntion in ter 'j ofla.n sharker>, money
/J~~
q~C;c:,
y v 1.-/
laundering. and fonew-bottle robberies."
s:zys Sergeant Bill Park of the Los Ar'f'e;"
Police Department's ~ Crimes 1r.veo-
rigation section. "Asian criminals are
interested in California because there
are card clubs in Califomia--<he cruru-
nJs have been here ~ since the club.
established thermelves."
Gaming consultant Rose, hcweve"
remains skeptical that a crime wa\"e
exists. "The [agenu] will in or, th
Asian games-where there's a <Terr.en,
dous amount of money on th e t.; bi t.
there's dic~d they szy, 'VIhatever l!
is, it's illegal: " Rose says. "I woulc b,
wary abOut saying that the club, r..." .
crime problem."
"What the attorney geneT.al and
other critia do is go back many. ma;",;
years to find their examplt:l," so,' An&>
Schneiderman, in-ho= counsel at th,
Commerce Usmo. "We have a C\:,..,..n~"
tracking and reporting system tb, v.-
believe is unparalleled in the state
We track any conver>ion of chipl m:o
curnncy, _ rarely issue checks, L"C tJ"
city. accoWlting firm has unannc'mce:
access to oU! cage ,"
"We just had the [state] DepL'":r11e"'
of Justice in here. uking a Joc',", a:
our internal connols. poJjcle~. ar.::
procedures:' says Ricl: Cole. "' :J~~
general manager of HoUywood p."
Casino. "They were quite pleased
with what they found. It seem,d to
raise their c,,'fIfOrt level. if you will,"
But the club, speak with mixed
voices. "If the law isn't adequate. th."
the 1>w's problem:' says Harry RJcba:d.
executive administrative ollicer and fed,
eral D'UStee of the Bicycle Oub C...mo
"Jf the law says I only bave to tak,
names of people in S10,000 transaccon..l.
then that's what we do. If it says I OOc',
have to do it. we don't,"
LUNGREN, ELECTED TO OFFICE IN
November 1990, was a latecomer to th,
antigambling cause, During his cam-
paign he was the recipient of mo", than
$10,000 in contributions Crom the
Nevada gambling industry, includm~
S5,000 each from the Nevada Resc"
Association and Circus Circus. Soor:
afterward he began to warn against th,
danger> of gambling closer to home. "I
did llOt support a commission In my
fir>t year because I thought it would
only enhance the ~ttract:.ene::) Of
CMIFO~"'I" L"WYI~ .83 DICI"'U' lBS
The Road to Commercial
Real Estate Starts Here.
Every month, the CalifornIa Real Estate
Journal gfves you more than just the major ---"':;'
real estate news stories, You also let: -'^'
.......~
. Themootil><leptl'l~ofltlecommertial"'al 'iA
estB\t ondustry on Itle stale. .
~ '"
. D!llrlOl'T'\i?J Transa::'tlOf'\ ReOOlt. e sec::ond secuon pI'O'."IClll"\g . " : ,
tne moS1 extenSM:! lIstJr'€S In tne state on commeraat
lease. sale vd ftClO"Oal1T&osa:'lIOnS, a1ore- ~-.
_.:--.;, _,.' I
eommercie11YOPf!rty foredosures. - ". '~'::;":'~..:::
. """"al are. uP'B\es on Itle state's",-"lO' marl<elS.
. lnves\JgatM focuses to help keep )OJ up<<>dOte on
~~tre,,;S inth< n:luSt/)I.
. _ briefs on Itle people, ~ vd ......ms in Itle rul estB\t community.
. CI'l!rrn'T'lia !;kYl,,"'Ie,' quarterty luide to martj of the businesses and ~s
_llo:>le to helP)OU.
e.lIfomla ...1 esute prolenlon.ls know they Cet mo.. for
their money when they Il.Ibacnbe to the
....",,'" ~
REAl ESTATE louRNAI. '
ro. subscription Inform.tlon, c.1I (213) 229.f>412
For advertising Information, call (213) 229,f>427
CONSIDERING THE
PRICE OF AMUSEMENT PARKS.
WHA TS $25 TO
KEEP THE ORIGINAL ONE OPEN?
ta
Suifrider
Foundation
.........'tDo'.........~..
tJrlClft"'~CMAN:lllll.-".llJITI""
....~,~-"
"un'k .bout)t. LonE
bt(ort the' cap or nton-ht
thrmr pirkl. rarlun~ Iou
I atld (.nt&S)'land.. th"f 'us I
I pia" ,h, m"" (am,l)' "m'
It! srmd I Jude' quallt)'
umC'. Thr beach. And now.
.(,n much nr;Jrcl. it nud~
)'our htlp. Tlut', y,'h)' "'r
rOUf buchu clW'l and uJt
(or rou and rour famil)',
So rIcan help. 8tClWC,
all lh.n~' conJldtftd. II" a
,
small ",'orld .(Itf aU. To Jom I
call 1.800.7~3.SURF ~
C'ncour'a:t )'CtU to JOin
Sur{rldrr. An or&.niullon
..host Ob,tctl"r u:... krrp
.
,t)ICEMIU\ I"~ 84 CALIFORNIA LAWHR
~-5h
~rl>'~::~:~~:::a~.~~~.E{,"ifit:'-ti::~~-::,~,"'+~~'S!;'~'7:~:.,'''''.."F..;~'r,;;p~~ .... ...,:;~""""~~"'':-i:' '., .._~-,~
gambling," Lungren ..-yi. "It w;,s only
after I beg:," srudying the issue that I
reolized we have a boatload of gambling
in California:'
Lungren fought the expansion of
Indian gaming and continues to oppose
the placement of slot machmCl In
re>Orv>tion casinos. In August 1989 the
attorney general's rJffice issued an
opinion stating that jackpot poker, a
major card-club attnetion, w;,s a lonery
proscribed by both Penal Code ..coon
319 and article IV, section 19 of the
nate Constiturion, Club OY.'nen wt':e
advised thry risked crimiml prmecuoo",
if thry continued to offer it. "Rumor
had it law enforcement got \\ind of a
jackpot at the old Bell Club, and th~.
found out there had been no poker
game," Rose says, "Some insider
claimed somebody had won it and jus:
took the money. It wa.s too bad for the
rest of the clubs."'
The O\l..nen sued the sute and won tl
Judgment in 1992 that jackpo: pok" 1.1
an adjunct to poker and thu, permined
under section 330. Lungren appeaJed
the trial coun decision, wJnnln~ .
reve,...} wt July that endoned :he Ie.':
grounds for his office's OTlgu-.a.l ",oor,
Bell GardClu Bityd, Club v CAI Dry" ~,f
Jus/ill, 36 CA4th 717.
To Lungren. the l-est wa)' to :.hut
down the money laundries is to create a
gaming commission \\ith teeth. In 199.'
Lungren's office wrote legi51~tior.
proposing an independent COlT',russlon
armed with some 70 investigators,
financed by per-uble fees from the
industry. Sponsored by Assemblyman
Phil Isenberg (D-Sacramento), the
bill passed the Assembly 49 to 1(i
but was sent back to commutee fo.
rrconsidertltion on a technic.lH~
Senate President Pro Tem Bill Lock)'CI
(D-Hayward)->uspidous of Lun.,..n',
political ambitions--never brought the
bill to a vote. "I've never been in a
game where I won ~9 to 10 and went
home the loser," Lungn:n gys.
Last June the Assembly passed a
mised venion of the bill, AB 11. thIS
time by a vote of 67 to ~. Locher
then shel\'ed it and commlSSluned
an agricultural economist, Marill'n
'''himry of the Univcniry of Caliiorrua
at D.\'is. to study the sUtC'S trltlre
gaming industry. Whitney's report,
(",,ntinutd on Pile 86
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c.( -SC,
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~-:' J . ";, :', #;-.,...:. J
liu~.n6SS lJPpOnUllIucs
India - one of the world's largest markets will accept
a multitude of products, ser.i=, finances, joint ventures,
whatever you can offer. Kindly fax your possibilities
for a grand beginning.
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Transworld International
No.3, Yashwant Place. 1st Floor
Chanaky-apuri
New Deihl. 110021
Ttf.' 0091,1 J-67386A670748
Fax: 0091-11-6111",,7
Tu: 03)-72104 Tran In
We are well connecte<lpro,1di.n2100% guar:>nteed
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Re~l _ .....Uablo In 8<XX>'tla""" w!lh S1a1o Bar' ._
ClleLf 10' ON .l,....~l SUVICl C."ID
.....iCU...(P. l'i:~ 86 CA.LlFOAN,A lAWY1R
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released in September, concluded tht
Indi.n gaming is growing .t :a f.Her
nte than that of the card c1ubs-,but
the study didn't address the potential
for crime at casinos.
"Senator Lockyer has in his hands
a report that is totaHy irrelevant to
our legislation:' Lungren corn.
plained. "For those of us concerned
about the catastrophe about to "ke
over the card.room industry-the
catastrophe of crime-the report lS
absolutely silent."
"People funning for governor
routinely have these phases in their
lives where they're lighting crime:'
Lockyer said. ''I'm very skeptical aboct
a need to create new bureaucracies, ntv..
conunissions, filled ",-jth S100.000-"
I year polllical appointees." He u,,:
the report to kill the proposal in com.
minee, calling it "a Cadillac solunon to
a mOtOT-scooter problem."
In its place. Lockyer pushed th."O"~'
SB 100, a bill promoted by HoD)woo:
Park Racemck Uld sponsored by Ser...
tor Ken '1addy (R-Fresno). QuickJ)
signed by Governor Pete \T.'i1son. tht
bill declares a three-year moratoriurr
e!recti", JUlUary 1996 on local elecco,"
to pa.s.s or eXl'Uld gambling ord!ru...,ce;
It al.o permits publicly owned rac<.
C";icks to opente as well as 0""" CASinos.
which had been practically impossiblo
under the existing licensing rules.
The moratoriwn created the appear-
ance of bold aetion while in"itln.
everybody TO forget about card c1" "
until the eve of a new century C",j.
room-related special electJon. are
scheduled in more than a dozen
communities before the law goes into
effeet. And it adds no rntrictions to
existing ordinanees, which ttlZ)' or TlU\'
not include limitations on the nW11be:
of clubs permined in the communi",..
")f Lockyer thinks this is I motor-Dscooter problem, then he's given us
a rogo stick," Lungren says of the
moratorium. "Look, the problem In
the clubs isn't going to go away. I
don't know hov.' we'll do it, bUT we'll
get a commission bill through This IS ,
marathon, not a sprin~" oe-
,_,o!~
- '- ,," .... .
-.' -~, :.~. ,- . -........
THIS PAGE BLANK
I-t--4 ~. / ,5 ;r
ACKNOWLEDGEMENT, WAIVER AND INDEMNITY
The undersigned, Harvey Souza, an individual, on his own behalf and on behalf of Village Club
Cardroom, which the undersigned hereby represents and warrants he has authority to represent,
(collectively the "Indemnifying Parties") hereby acknowledge and agree as follows:
I. Indemnifying Parties acknowledge (a) having actual and timely knowledge as of January I,
1996 of the public hearings before the City of Chula Vista City Council ("Public Hearings") to consider
the approval of a gaming plan ("Gaming Plan") and cardroom license tax increase in accordance with
Chapter 5.20 of the Chula Vista Municipal Code ("Code") originally scheduled for January 16, 1996 and
continued until February 20, 1996; and (b) having timely received a copy ofthe proposed Gaming Plan
and the staff report prepared in connection therewith.
4. Indemnifying Parties waive any and all right to notice of the Public Hearings other than the
notice already received thereby as described above. Indemnifying Parties further agree waive, release,
indemnify, protect, defend and hold the City harmless from and against any and all claims, liabilities and
costs (including reasonable attorneys' fees and court costs) arising directly or indirectly from challenges
to the validity of the City's notice of the Public Hearings or adoption or validity of all or any portion of
the Gaming Plan, if it is adopted, which may result from action by or through the Indemnifying Parties.
5. Indemnifying Parties further agree that in the event City is required to reimburse all or any
portion of the license tax collected under the Gaming Plan as a result of the final determination of the
invalidity of all or any portion thereof, immediately upon receiving such reimbursement Indemnifying
Parties shall pay to the City as damages incurred by the City hereunder an amount equal to the amount
of such reimbursement.
6. This waiver and indemnity will be binding on Indemnifying Parties successors and assigns.
ACKNOWLEDGED AND AGREED AS OF
February.?Q, 19'~{
/1 ~-
/Ic/X<~r~
/ .7 (7%~~,
By:
[insert name and title]
cardroom.ind
/" .<
c
/
ACKNOWLEDGEMENT, WAIVER AND INDEMNITY
The undersigned, Harvey Souza, an individual, on his own behalf and on behalf of Village Club
Cardroom, which the undersigned hereby represents and warrants he has authority to represent,
(collectively the "Indemnifying Parties") hereby acknowledge and agree as follows:
I. Indemnifying Parties acknowledge (a) having actual and timely knowledge as of January I,
1996 of the public hearings before the City of Chula Vista City Council ("Public Hearings ") to consider
the approval of a gaming plan ("Gaming Plan") and cardroom license tax increase in accordance with
Chapter 5.20 of the Chula Vista Municipal Code ("Code") originally scheduled for January 16, 1996 and
continued until February 20, 1996; and (b) having timely received a copy of the proposed Gaming Plan
and the staff report prepared in connection therewith.
4. Indemnifying Parties waive any and all right to notice of the Public Hearings other than the
notice already received thereby as described above. Indemnifying Parties further agree waive, release,
indemnify, protect, defend and hold the City harmless from and against any and all claims, liabilities and
costs (including reasonable attorneys' fees and court costs) arising directly or indirectly from challenges
to the validity of the City's notice of the Public Hearings or adoption or validity of all or any portion of
the Gaming Plan, if it is adopted, which may result from action by or through the Indemnifying Parties.
5. Indemnifying Parties further agree that in the event City is required to reimburse all or any
portion of the license tax collected under the Gaming Plan as a result of the final determination of the
invalidity of all or any portion thereof, immediately upon receiving such reimbursement Indemnifying
Parties shall pay to the City as damages incurred by the City hereunder an amount equal to the amount
of such reimbursement.
6. This waiver and indemnity will be binding on Indemnifying Parties successors and assigns.
ACKNOWLEDGED AND AGREED AS OF
February 7199t
By /<<7!c4~
[insert name and title]
cardroom. ind
, j
/:- ./,/
,:.,.<'\......-
'-><\ ,','
,~_-)! ,\ l(~
ACKNOWLEDGEMENT, WAIVER AND INDEMNITY
The underSigned,~Qlf~n individual, on his own behalf and on behalf of Chula
Vista Bay Club, Ltd., Chula VIS Bay Club, Inc., and CalIfornIa Commerce Club, Inc., which the
undersigned hereby represents and warrants he has authority to represent, (collectively the "Indemnifying
Parties ") hereby acknowledge and agree as follows:
Indemnifying Patties acknowledge (a) having actual and timely knowledge as of
02.- of the public hearings before the City of Chula Vista City Council ("Public Hearings ")
to nsi er the approval of a gaming plan ("Gaming Plan") in accordance with Chapter 5.20 of the Chula
Vista Municipal Code ("Code") originally scheduled for January 16, 1996 and continued until February
20, 1996; and (b) having timely ,eceived a copy of the proposed Gaming Plan and the staff report
prepared in connection therewith. '
4. Indemnifying Parties waive any and all right to notice of the Public Hearings other than the
notice already received thereby as described above. Indemnifying Parties further agree waive, release,
indemnify, protect, defend and hold the City harmless from and against any and all claims, liabilities and
costs (including reasonable attorneys' fees and court costs) arising directly or indirectly from challenges
to the validity of the City's notice of the Public Hearings or adoption of the Gaming Plan, if it is adopted,
which may result from action by or through the Indemnifying Parties. This waiver and indemnity will
be binding on Indemnifying Parties successors and assigns.
ACKNOWLEDGED AND AGREED AS OF
February& 199,t:
B,l4'7ca
~X~77 <AiL ~/.0.4 ~d<JL"""""~
[insert name and title]
cardroom.ind
L/ ;/ /
.
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
COUNCIL AGENDA STATEMENT
ITEM:
MEETING DATE:
9
2/20/96
PUBLIC HEARING: To consider enacting a Chula vista
Gaming Plan pursuant to Chapter 5.20 of the Chula
vista Municipal Code.
Resolution I Y,2/.:L Adopting a Chula vista
Gaming Plan which would allow pai Gow and Super Pan
9 to be played at cardrooms subject to certain
restrictions, and make other changes including the
permissible hours and days of operation, maximum
bets, allowable house charges per table, and tax
rates per table.
Richard Emerson, Chief of Police
Robert Leiter, Director of Planning
. I ~
City Manager~:~ 4/Sths Vote: () Yes
(X) No
Attached is a revised version of the Gaming Plan item, which was
originally provided to Council for the 2/13/96 meeting. For
Council's reference, the primary changes to the item appear on
pages 7-9 and 13-15 of the staff report and in various sections
throughout the Gaming Plan itself, principally dealing with the
subject of license transfers.
9~/~ / )-/-11
ITEM TITLE:
SUBMITTED BY:
...._.r.__.. ..'__n
REVIEWED BY:
COUNCIL AGENDA STATEMENT
ITEM:
MEETING DATE:
9
2/20 /96
PUBLIC HEARING: To consider enacting a Chula vista
Gaming Plan pursuant to Chapter 5.20 of the Chula
vista Municipal Code.
Resolutior /fr.J./ ~ Adopting a Chula vista
Gaming Plan which would allow pai Gow and Super Pan
9 to be played at cardrooms subject to certain
restrictions, and make other changes including the
permissible hours and days of operation, maximum ..(
" .
bets, allowable house charges per table, and tax " I'
:::::r:e:m:::::: Chief of pOlicet1v / /',}fJl [l (p
Robert Leiter, Director of Plannin~. f~"
city Manag~r~~\l? 4jsths Vote: ( ') Yes --(x)'-iio
At the meeting on November 28, 1995, Council approved certain
amendments to Chapter 5.20 of the Municipal Code regarding
cardrooms. These changes allow any form of gambling in Chula vista
that is allowed at any other location within the state sub;ect to
further reoulation under a Chula vista Gamino Plan. This staff
report will only address Council's direction on a defined portion
of the proposed gaming plan, cardrooms. The recommendations and
alternatives identified were the result of a review of the gaming
policies of other jurisdictions in our region and staff analysis
associated with the city of Chula vista's cardroom procedures.
RECOMMENDATION:
That Council 1) conduct the public hearing and 2) approve the
resolution adopting a Chula vista Gaming Plan which would allow pai
Gow and Super Pan 9 to be played at cardrooms subject to certain
restrictions and make other changes in the hours and days of
operation, maximum bets, allowable house charges per table, and tax
rates per table.
BOARDS AND COMMISSIONS RECOMMENDATION: None.
DISCUSSION:
As of November 28, 1995, Gaming Ordinance 5.20 of the Chula vista
Municipal Code was amended to encompass all gaming allowed in the
State of California, subject to adoption by Resolution of a Chula
vista gaming plan. This action prevented the preemption of local
decision-making authority by the state (via SB 100) and allowed the
ci ty the opportunity to address some concerns of an existing
cardroom operator.
On October 11, 1995, Mr. Harvey Souza, the owner of the Village
Club Cardroom at 429 Broadway, Chula Vista, submitted a letter to
..r
,-/ -:J
Item , Page 2
Meeting Date 2/13/96
the Chief of Police requesting several changes to the current
regulations. Mr. Souza's requests are based upon his inability to
compete with the region's Indian reservation casinos. His concerns
covered hours of operation, types of gaming, maximum bets and house
charges. Staff concurs with some of Mr. Souza's requests and
recommends certain changes via the Gaming Plan that should enhance
his ability to remain a viable business. These changes should also
provide South Bay residents an opportunity to participate in state-
approved gaming without leaving the South Bay.
The issue of determining to what extent cardrooms should be part of
Chula vista has been a long standing discussion in this
community. The Cardroom Ordinance has been amended by Council on
six different occasions since 1977.
From the Police Department's perspective, -the quality of life for.
our citizens is paramount, and staff feels that the recommended
changes will have a minimal impact on the community. Nevertheless,
most changes that are proposed in this Gaming Plan must also be
evaluated through a conditional Use Permit (CUP) process. The CUP
for each site would take into consideration land use compatibility,
noise, parking and other factors. Other conditions included in the
gaming plan, such as limits on the number of tables and players and
the groundrules under which the games are played, further mitigate
any potential impacts of the recommended changes.
Backqround: Number of Licensed Cardrooms
The Municipal Code allows one eight-table cardroom license for each
40,000 residents or fraction thereof. Thus, with a population of
approximately 155,OOC, Chula vista currently has 4 cardroom
licenses. A fifth would be licensable once the population hits
160,001 (which would probably occur in 1998). Of these licenses,
no more than two are permitted to be held by a single owner, with
each two consolidated licenses granting use of 12 card tables.
Two of those licenses are held by Mr. Souza. He is currently
operating under one license at the village Club, primarily because
his location at 429 Broadway is too small to accommodate a 12 table
operation. He has been operating this business since approximately
1963. Since this preceded the City's CUP requirements for
cardrooms, his operation at this site is "grandfathered." Unless
there is a significant change in the nature of the operation of the
village Club, a CUP is not required. Some of the policy changes
recommended tonight, however, would require a CUP were Mr. Souza to
seek to implement them at this current site (e.g. additional day or
longer hours). These CUP requirements are discussed in more detail
below.
The other two licenses are purported to be held by an entity
controlled by the Commerce Club. This company operates one of the
larger cardroom enterprises in the Los Angeles area and is not
,- /.. Y
/'
Item , Page 3
Meeting Date 2/13/96
currently operating a cardroom in Chula vista under either license.
If this entity is able to establish legal ownership of the
remaining two licenses, it too could operate a maximum of 12 tables
in Chula vista. 1
Copies of this report have been provided to both Mr. Souza and
representatives of the Commerce Club.
Reauested Chanaes and Recommendations
After reviewing all Mr. Souza's requests, current municipal codes
and the proposed games, and meeting with him on several occasions,
staff recommends the following changes. Except as noted, Mr. Souza
concurs in these recommendations. A matrix (Attachment 3)
summarizes the current and.proposed regulations, .along with similar ------.
information for surrounding cardroom and gaming facilities and
other cities throughout the state.
A. GAMES PERMITTED
CURRENT ORDINANCE: All card games which have been
determined by the Attorney General to be permissible,
subject to local lic3nsing by California cities, may be
played in any licensed cardroom, except that pai GoW,
super Pan 9 ("Super Pan"), California 22 and Panguingue
may not be played.
REQUEST: Mr. Souza requested the City allow all games
legal in the State of California be played at his club,
but has indicated a willingness to add just pai Gow and
Super Pan.
BACKGROUND: Under the authority currently granted by the
state and city of Chula vista, the village Club currently
offers Texas Hold 'Em, Omaha (each with Hi and Lo
variations) and Seven Card stud.
pai gow and super Pan are very different games but
operate on a similar principle to blackjack. Players
place a bet first, and then try to put together
combinations (of dominoes or cards, respectively) which
will beat the dealer's hand. pai Gow is already a very
popular game, with Super Pan showing the potential to
join it in popularity.
1 There is some legal dispute currently as to whether these
licenses have been properly transferred, under the requirements OI
the city's ordinance, to the Commerce Club. Staff is currently
analyzing this issue and will report back to the Council as soon as
possibl :.
9.,/.,.5'
/'
Item , Page 4
Meeting Date 2/13/96
STAFF RECOMMENDATION: Add pai Gew and Super Pan enly.
After reviewing ether cardreems within the ceunty and
elsewhere in Califernia, it was feund that these two.
games are very cemmen and pepular in card clubs, and
pel ice agencies in jurisdictiens where they were allewed
(See matrix; Attachment 3) did net repcrt additienal
preblems fer law enfercement.
An article which is attached details seme ef the ether
relevant histery ef Califernia cardreems and the
petential fer illegal activity. Hewever, in light ef the
limited number ef tables in questien in Chula vista (a
maximum ef 3 Pai Gew tables per twe-lic~nse cardreem),
the recemmended six and twelve menth review perieds, and
the eppertunity fer further changes in the Gaming Plan,
fines fer nen-cempliance and _ ultimately._..r.evocatien-.ef._______
licenses sheuld preblems persist, pelice staff feel
cemfertable that the new games weuld be sufficiently
regulated to. centre I any such preblems.
Fer additienal pretectien, hewever, based en the
pepularity ef the new games, pelice staff recemmends
mandatery unifermed private security fer each expanded
cardreem lecatien (eperating under two. licenses er
effering the new games). At least ene security guard
will be dedicated at all times to. pai Gew and Super Pan
tables. These cenditiens weuld be enferced via a
security plan fer each lecatien subject to. the appreval
ef the Chief ef pelice. Mr, Seuza has agreed to. staff's
security requirements.
As discussed under Item D. (Number ef Players), pai Gew
and super Pan weuld net be allewed at the present
lecatien ef the Village Club and weuld be subject to. a
CUP at a new lecatien. Furthermere, autherizatien fer
these games weuld require a separate "Class II" license,
with cenditiens specified in the gaming plan cencerning
license transfer, license terminatien, and ether terms.
B. HOURS AND DAYS OF OPERATION.
CURRENT ORDINANCE: All cardreems shall be clesed each
day frem 1:00 AM to. 9:00 AM. No. cardreem shall be epen
en Sunday except frem midnight until 1:00 AM.
REQUEST: Mr. Seuza requested that the city allews
eperatien seven days a week and 24 heurs a day. In lieu
ef that, he has indicated an interest in being eper. seven
days per week, 8 a.m.- 4 a.m.
BACKGROUND: Pel ice staff feel that the issue ef heurs is
ef three-feld significance: 1) Dees the time the patrens
9-/-1,
--'
Item , Page 5
Meeting Date 2/13/96
leave impact the quality of life in the neighborhood?; 2)
If the facility were open 24 hours per day, would there
be a potential for disorderly conduct problems with
people who wouldn't leave?; and 3) would promotion as a
24 hour gaming site be inconsistent with the image and
culture that Chula vista wants to preserve and project.
staff feels it is important for some shut-down time to be
preserved and, therefore, does not recommend 24 hour
operation. Regarding what time of the morning (e.g. 1
a.m. currently, 4 a.m. proposed) has the least impact on
the surrounding neighborhood, staff proposes to monitor
this via CUPs and six and twelve month review periods
following implementation of any change in hours.
Regarding Sundays, Police staff- sees little difference____
from a policing perspective between operations on Sundays
and operations any other day of the week. From a
Planning perspective, additional days or hours would
require a cUP, and this would be reviewed for each
cardrooms site.
STAFF RECOMMENDATION: Staff recommends allowing seven
days per week operation and operation from 8 a.m. to 4
a.m. Each of these changes would be subject to approval
of a CUP and thus would not be allowed by right at any
giv8,j site. They would also be subject to the
recommended six and twelve month "trial period" reviews
discussed below. If any problems occur, Planning and
Police staff would retain the right to re-review the CUP,
revoke the CUP if appropriate, and/or bring the issue
back to Council to curtail the allowabl~ operating hours.
Allowing sunday operations at the current hours would be
an increase from 96 to 112 hours per week (an increase of
17%). Together with the change in hours to 8 a.m. to 4
a.m., hours of operation would increase from 96 hours per
week to 140 (an increase of 46%).
C. MAXIMUM NUMBER OF TABLES
CURRENT ORDINANCE: No more than eight (8) tables shall
be permitted at any cardroom, except that at cardrooms
operating under two consolidated licenses, twelve (12)
tables shall be permitted.
REQUEST: No request for a change.
BACKGROUND: The important issue regarding the number of
tables is the effect this has on the number of players.
This is especially significant with pai Gow and Super
..'
9,/..')
Item , Page 6
Meeting Date 2/13/96
Pan, which can each have as many as 28 players per table
(seven seated, the remainder standing).
STAFF RECOMMENDATION: Staff recommends that no more than
one quarter of licensed tables (no more than 2 of 8, or
3 of 12) are to be used for pai Gcw or super Pan. This
restriction applies to both games together (i.e.
licensees shall not be allowed to operate 3 tables of pai
Gow and 3 of Super Pan). . As stated above, these games
would not be allowed at the Village Club's current
location.
By maintaining a small number of tables and an even
smaller number of Pai Gow or Super Pan tables, it is
staff's intent to preserve the small-business nature and
history of Chula vista's cardrooms and to keep the..level
of gaming activity within manageable limits.
D. MAXIMUM NUMBER OF PLAYERS PER TABLE
CURRENT ORDINANCE: No more than eight (8) players shall
be permitted at anyone card table.
REQUEST: Mr. Souza requested that no limit be placed on
the amount of players per table, but in lieu of that has
indicated an interest in limits of nine (9) players per
card table generally (i. e. poker), twenty-eight (28)
players per super Pan table and twenty-eight (28) players
per pai Gow table.
BACKGROUND: pai Gow tables accommodate seve~ seated
players and three side bettors per player, for a total of
28 players. Super Pan seats 7-8 players and can also
accommodate side bettors. By allowing pai Gow and Super
Pan (at a maximum of three tables) and increasing the
poker tables to 9 players, the maximum number of players
in a two-license cardroom would increase from 96 to 165
(a 72% increase).
The current site can only accommodate approximately 64
players and has less than the standard amount of parking-
--it has approximately 35 spaces (47 total shared between
it and another business), rather than the standard number
of one per every 1.5 players and employees (77 people
total) or 51 spaces. The village Club is allowed to
operate with this non-conforming amount of parking due to
its operation having preceded the city's CUP requirement.
STAFF RECOMMENDATION: Staff concurs in the proposal for
poker tables at nine (9) players per table, and super Pan
and pai Gow at twenty-eight (28) players per table. This
would result in a maximum of 165 players. Staff proposes
9., /- r
/"
Item , Page 7
Meeting Date 2/13/96
requiring any facility offering pai Gow or Super Pan or
allowing nine players per poker table to have sufficient
on-site parking (at a rate of one space per 1.5 players
and employees) and these games and higher player limits
would thus not be recommended at the current village Club
location. Such conditions would be enforce via CUP.
E. MAXIMUM BETS
CURRENT ORDINANCE: No bet or wager in any game shall
exceed the sum of thirty dollars ($30), and only table
stakes shall be permitted. No jackpots shall be allowed.
REQUEST: Mr. Souza requests no limit on wagers, or in
lieu of that,.. a.newlimi t of eighty dollars . $80 uper.bet -----.
for poker, no limits for pai Gow and Super Pan, and no
limit poker tournaments once every thirty days. He does
not request any change in the limits on table stakes or
jackpots.
BACKGROUND: "Table stakes" limits wagers during any
given game to the chips each player has before them.
"Jackpots" refer to side pots divided between the highest
scoring players; these pots are currently prohibited by
both State and city law. These rules are neither
proposed nor recommen~ed to be changed.
Other than restrictions on table stakes and jackpots,
wagering is also limited by some dollar amount, which
represents the maximum that can be bet at any given time
(although in the course of a game, a player could bet
that amount each time they draw a card or call on another
player's bet).
Historically, Chula vista operated without any betting
limit. In 1970 a $20 limit was established, with this
limit rising to $30 in 1981.
Based on the maximum house charges per hand as discussed
below, an increase in the poker bet limit would have no
effect on the house revenue per hand ($3 per table). To
the extent that the higher limits help Chula vista
cardrooms compete more effectively within the region,
income to the cardroom would increase as patronage
increases.
Unlike poker, in which players may wager the maximum bet
several times as play continues around the table or as
additional cards are dealt, pai Gow and Super Pan involve
placing bets before the deal (similar to blackjack). Due
to this lack of betting rounds, the pre-deal bet is much
9.,/..1
"
Item , Page 8
Meeting Date 2/13/96
more significant than a simple poker ante. As a result,
these games typically operate without a set limit.
STAFF RECOMMENDATION: Although such no-limit games are
different from those currently allowed in the city, staff
recommends that they be allowed in their no-limit form.
Mr Souza requested this provision to assist in his
competition with other area cardrooms/Indian reservation"
casinos. Police staff views this as a reasonable request
and one which can be granted without any affect on the
community's quality of life.
Staff does not recommend returning to the policy of
having no limits on poker or having no-limit tournaments.
However, with no limits recommended on pai Gow and super
Pan, staff does see a certain. inequity. in .keeping .the ___"n~
poker bets arbitrarily lower. Thus, staff recommends the
poker limit be raised to $80 subject to the six and
twel ve month reviews. This higher limit would be allowed
at the current village Club location without a CUP
requirement. Mr. Souza concurs in this recommendation.
The operation and impacts of these changes would be very
closely scrutinized, especially during staff's
recommended six and twelve month review periods
(discussed below) and in light of some of the potential
criminal impacts that any broadening of gaming operations
could bring (See Attachment 6).
F. MAXIMUM HOUSE CHARGES PER HAND
CURRENT ORDINANCE: No charge
and a half cents ($.375) per
collected from any player
participating in any games.
in excess of thirty-seven
hand per player shall be
for the privilege of
REQUEST: Mr. Souza requests that the maximum charge be
lifted, or in lieu of that, the charges for poker be
restructured to a flat rate per table which would be more
manageable than the half-cent charges. Based on eight
players per table x the current $.375, he recommends a
maximum charge of $3 per table, rising to $4 per table in
1998.
Based on the no-limit nature of pai Gow and Super Pan, he
requests that the charge for these games be structured as
$1 for every $100 wagered.
BACKGROUND: City regulation of house charges has
typically been used as a means of limiting potential for
excessi ve charges against players, thus keeping
"recreational" gaming affordable for area residents. The
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Item , Page 9
Meeting Date 2/13/96
City established the $0.375 charge as a compromise in
1992, when there had been a request to raise the charge
to $0.50. As Mr. Souza argues, this works well when
there are exactly 8 players and the charge equals $3 per
table, but it is rather unwieldy if a table has an odd
number of players.
_,_ ___u__..___.
STAFF RECOMMENDATION: Staff concurs in Mr. Souza's
request to change the $.375 poker charge per player per
hand to a flat rate per table. It is recommended that
this rate be set at a maximum of $3 per table per hand.
This change would be effective with adoption of the
gaming plan and would not be contingent upon the village
Club moving to a new location. Regarding the $4 charge
per hand, staff recommends that this be implemented
_ effective 1/1/98 subject to further review by the .Chief
of Police and shall be chargeable only in connection with
an increase in the flat rate table tax for poker to
$4,000.
For pai Gow and Super Pan, staff recommends that house
charges be established by the cardroom owner at rates not
to exceed one dollar ($1) for each one hundred dollars
($100) or fraction thereof bet. According to this rate,
all bets up to and including $100 would carry a $1
charge. Bets from $101 to $200 would carry a $2 charge,
bets from $201 to $300 would be $3, and so on.
Although no specific maximum charge is recommended, the
rate of the charge would tend toward 1% of the amount bet
and would provide a slight disincentive to placing larger
bets as compared to a flat rate per hand. For example,
in oceanside a $1,000 bet would cost no more than a $50
bet---$0.50 (see matrix, Attachment #3). Under this
proposal, that same bet in Chula vista would cost $10.
Assuming that the player wants to minimize the rate
charged, they would have a slight incentive to bet in
increments of $100. For example, if a player only wanted
to bet $75, this would carry the same $1 house charge as
a $100 bet. Thus, the marginal savings by placing a $100
bet instead would be $0.25, or 0.3% of the $75 bet. If
the player were looking to bet $175, the marginal savings
percentage by betting $200 would fall to 0.14%.
According to staff research, many pai Gow bets fall in
the $100-$120 range. Players wishing to bet smaller
amounts very often combine their bets to reach a total of
$100. with the minimal marginal costs for various bets,
and the ability to combine side-bets, it is unlikely that
the recommended rate structure would have any significant
effect on betting patterns, per table income, or the
affordability of the game to the players.
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Item , Page 10
Meeting Date 2/13/96
A copy of the charges established by each house shall be
submitted to the Police Department and shall also be
clearly posted in each licensed cardroom.
. G. LICENSE TAX
CURRENT ORDINANCE: The license tax per card table is
currently $1,500 per quarter.
REQUEST: No request for a change.
BACKGROUND: As Mr. Souza looks to relocate and expand to
a 12-table cardroom and add pai Gow and super Pan, or as
the other license holders look to activate their
. licenses, staff .sees the license.. .tax .as_.a _means.of .....-.-..
providing the additional resources necessary to properly
monitor the new games' operations, review operators'
financial data, and enforce City regulations.
STAFF RECOMMENDATION: Based on the other changes in
cardroom regulations (particularly the 46% increase in
hours and the 72% increase in players), staff recommends
either a flat rate or a percentage of gross revenues,
according to the following terms:
Flat Rate for Poker or other Qames2: $1, 500 pf'~ table
per quarter for six-day per week operations. Otherwise,
the rate would be $1,750 per table per quarter (17% above
the current rate--an increase proportionate with the
addition of Sunday hours). This rate would increase to
$2,500 (67% above the current rate) for any consolidated
two-license operation.
Effective 1/1/98, as discussed above, cardroom operators
would have the option to charge in excess of $3 per hand
(up to a maximum of $4 per table per hand), subject to an
increase in the flat rate per table per quarter to $4,000
(equivalent to a 4.5% tax rate on the increased charges).
Flat Rate for pai Gow and Super pan2: $4,000 per table
per quarter.
Gross Revenues Rate: In each case, if revenues per table
per quarter exceed $60,000, the tax shall be either the
flat rate or a percentage of the quarterly gross
revenues, whichever is greater. These rates are
recommended at:
2 As outlined in the Resolution, flat rates would be
applicable to all tables authorized under each active license.
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Item , Page 11
Meeting Date 2/13/96
Gross revenues/table UP to:
Tax rate:
$70,000
$80,000
$100,000
7.00%
7.25%
7.50%
with an additional 0.25% tax for each additional
$100,000 or fraction thereof in gross revenues/ up
to a maximum rate of 10%.
The structure of these tax rates allows for the effective
rate to drop as low as 4.1% and to keep the flat rates in
effect as long as the revenues per table are below
$60,000 per table per quarter. Once the operation grows
beyond $60,000 per quarter, the tax rate increases as
. well. . Mr.. Souza has accepted these changes ... .-.... -..
Anticipated Effects of Proposed Chanqes
with the addition of Pai Gow and Super Pan and being open on
Sundays, Mr. Souza hopes to recoup some of the clientele he has
lost as preferences have shifted toward the round-the-clock casinos
of the area Indian reservations.
As the attached matrix shows, pai Gow is currently offered locally
at Sycuan and Viejas.3 Although Chula vista cardrooms might have
a somewhat wider draw for these gamest the proximity of San Diego
(3 cardrooms, with a total of 21 tables; 10 other 7-table licenses
not currently active) and Oceanside (2 cardrooms, expanding to a
total of 90 tables), will continue to command a large portion of
the local market. with the aggressive marketing by area
reservations, there should continue to be effective competition for
regional gaming.
As a result, it is unlikely that Chula vista would stand out from
the crowd in the gaming field in San Diego county. With these
changes, however, Chula vista cardroom owners should be able to
recapture some of the local market share they report losing.
Review PeriodS
staff recommends these changes be enacted with scheduled six and
twelve month review periods in order for Police staff to determine
the impact of the new gaming plan and 'whether the new games and
rules should continue or whether the gaming plan should be further
amended. If problems occur / staff would reserve the right to
3 Oceanside does not prohibit pai Gow, but does not currently
have any pai Gow tables. This will likely change as the city's
cardrooms expand to the new limit of 45 tables per cardroom.
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Item , Page l2
Meeting Date 2/13/96
continue the review period for an additional six months. A report
and recommendations to council would follow each staff review, at
which time further changes, additions or deletions could be made in
the gaming plan.4
The goal in developing a gaming plan was to regulate specific types
of wagering in Chula vista. The changes made in this gaming plan
should not affect the quality of life to the citizens of Chula
Vista, but will enhance the ability of a cardroom owner to maintain
a long-standing business while attempting to keep pace with the
changing market.
with the recommended percentage-based table tax, staff will also be
receiving quarterly financial reports that should assist in
tracking the overall level of activity at Chula vista cardrooms.
This.data should facilitate understanding and consideration of the
new games' impacts on the businesses' profitability and increase
the analytical value of the six and twelve month reviews. For
comparison purposes, staff has also requested a set of current
financial reports and ongoing data to include those games (i.e.
poker) on which a percentage tax is not applied.
Conditional Use Permit
All cardroom operations are subject to approval of a Conditional
Use Permit. The current site of the Village Club preceded this
requirement and is therefore "grandfathered" unless there is some
significant change in the operation. For example, if the number of
players increased, that would increase the number of parking spaces
required and could trigger a CUP. A CUP at this or any other site
would also deal with such issues as noise and impacts on
surrnunding land uses.
Mr. Souza has pursued obtaining another property near his current
location as a substitute or expansion site. However, with the
additional parking that pai Gow would require, this site would not
accommodate his needs either and he has indicated that he is
looking at other sites in the City.
Once Mr. Souza or another licensee identifies a site, it would be
subject to staff processing of a CUP and Planning Commission
consideration.
4 Since the gaming plan is adopted by Council resolution, it
may also be amended by Council resolution at any time, and this
authority would not expire with or be limited to the timing of
scheduled six or twelve month review periods.
}"
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Item , Page 13
Meeting Date 2/13/96
other Chanqes
For ease of administration, staff has also incorporated various
sections of the existing Ordinance into the text of the Gaming
Plan. These sections are intended to provide a single, reference
document and to clarify certain provisions addressed in both
documents.
The following is a summary of the significant additional changes
made by the proposed Gaming Plan to the existing cardroom ordinance
in the process of updating and incorporating such provisions into
the plan:
1. Revised Definition of "Financial Interest". The definition of
what constitutes a "financial interest" in a license has been
.. .expanded..to more clearly. ..include spouses....of - .named.....licensees.,..----. -
broader categories of indirect ownership (e. g., corporate and
partnership interests) and other interests (e.g., creditor
interests and direct and indirect profits interests). The result
of this change is that the Chief of Police will be entitled to a
better understanding of who holds interests in a cardroom operation
and the City will have expanded approval rights over transfers of
interests in cardroom licenses or operations. [see new Gaming Plan
sections 2.4.3 and 2.5.1 which replace portions of Code sections
5.20.030, 035, 040 and 060.]
2. More detailed Information Required of Applicants. An
applicant for a new or transferred license which is an entity is
now required to submit more detailed information regarding that
entity's legal status, governance and membership. [see new Gaming
Plan section 2.4.1.]
3. Revised Issuance Procedures. Previous Sections of the Code
implied that the City would be obligated to issue a new cardroom
license once the City's population exceeded 160,000 residents or
when a license otherwise became available. Gaming Plan Section
2.4.4 makes clear that the issuance of a new license, or the
reissuance of a revoked license, is totally within the discretion
of the city. section 2.4.4 also eliminates the requirement that a
license being pursued by multiple applications be issued pursuant
to a "lottery" system. The lottery approach is replaced with the
concept that the City will determine through a competitive process
to be established later, as the city sees fit, who, if anyone, will
receive such a license. Section 2.4.4 also reserves for the city
the right to condition its issuance of a license.
4. Expanded Definition of Transfers subiect to citv Approval.
Gaming Plan section 2.5.1 expands on the definition of what
constitutes a transfer of a cardroom license subject to City
approval to add, for example, pledges, gifts and devises to the
general category of transfers covered, as well as any kind of
transfer of interests in cardroom assets and revenues. Expanded
language also clarifies the extent of City approval rights over
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Item , Page 14
Meeting Date 2/13/96
transfers of interests in any entity which itself holds an interest
in a cardroom license or operation. [Compare the replaced language
in Code section 5.20.030.]
5. Audit Riqhts. Two audit rights provisions have been added.
The first such provision is Gaming Plan section 2.7.4. This
section gives the City the right ~o audit a licensee's accounting
records at any time to assure that the licensee is paying the
required license tax. The licensee bears the cost of at least one
such audit per year, not to exceed $2/000. In addition, in the
event that a City audit reveals that the licensee is under-
reporting gross revenues by 5%, the licensee must also bear the
costs of this audit. The second audit provision is in Gaming Plan
Section 4.4. This Section is designed to give the Chief of Police
express spot inspection rights of any cardroom operation in order
t.o.. determine compliance . with the Gaming Plan ..and alL.other
applicable laws.
6. Clarification that City Land Use provisions Control. New
Section 3.1 of the Gaming Plan clearly establishes the fact that
any cardroom operation remains subject to any and all applicable
City land use controls over such operation. Any violation of a
land use approval or permit is declared also to be a violation of
the Gaming Plan.
7. Operation in Accordance with an Approved Securitv Plan
Required. New Section 3.14 requires all cardrooms operating more
than 8 tables and all Class II cardrooms to operate in accordance
with a security plan approved by the Chief of Police. It is
contemplated that qualified security plans will require cardroom
operators to have a certain level of security personnel with a
certain level of training on the cardroom premises at all times.
8. Enforcement Mechanisms. Existing Municipal Code Sections
5.20.090, 100, 170, 210 and 220 contain redundant and non-specific
enforcement measures which focus almost exclusively on revocation.
section 4 of the proposed Gaming Plan substitutes a more
comprehensi ve enforcement scheme. The new scheme includes a
graduated monetary penalty system, with fines ranging from $1/000
per day to $5,000 per day depending on the severity of the
violation. The remedy of suspension of a license has been added.
Revocation has been retained as a remedy with an expanded list of
"material violations" which might justify a license revocation
decision by the city.
9. Licensee Must Enter Aoreement to Abide bv Gamino Plan and
Indemnifv City Aqainst Claims. Section 5.5 of the proposed Gaming
Plan requires every licensee to enter into an agreement with the
city agreeing to abide by the plan, acknowledging and waiving
challenges to the validity of the plan, and agreeing to indemnify
the City against any claims which may arise in connection with the
issuance or transfer of a license or the operation of the cardroom.
';-1-11.
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Item , Page 15
Meeting Date 2/13/96
10. Miscellaneous. Various changes were made throughout the
incorporated Code provisions, as appropriate, to deal specifically
with the existence or special characteristics of a Class II
license. various rewordings and clarifications to improve on
ambiguous language in Code provisions, which are now incorporated
into the Gaming Plan, were also made where appropriate. various
redundant and scattered provisions have been deleted, consolidated
and/or relocated, as appropriate.
FISCAL IMPACT:
Currently the city charges $1,500 per quarter per table, for a
total of $48,000 per year. In the short term, that revenue is not
anticipated to change, since issues of CUPs and various state
approvals must be resolved .prior to most gaming expansions__..____~
When any expansion occurs in hours or days or via consolidation of
licenses, the city would receive a flat rate of $1,750-$2,500 per
table per quarter for poker and $4,000 per table per quarter for
Pai Gow and Super Pan. These changes could yield an increase in
annual city revenues from the current level of $48,000 (with only
8 tables licensed) to either $56,000 (with the same 8 tables at
seven days per week) or $138,000 (with 9 poker tables and 3 pai Gow
tables under Mr. Souza's two licenses).
If the gross revenues per qua~ter per table exceed $60,000 for any
given class of games (with pai Gow and Super Pan comprising a
separate class), then the tax would be either the flat rate or a
percentage (from 7%-10%) of the quarterly gross revenues, whichever
is greater.
Assuming the current poker-only 8-table operation and revenues
below $50,000 per table, this gross revenues tax may not be applied
at all. However, based on a 12-table operation with three pai Gow
tables and the peak operation at those tables approximately 12
hours per day, this city revenue is estimated at $265,000 for poker
and $745,000 for pai Gow or super Pan, for a total of approximately
$1 million per year.
Based on less-than-24-hour operation, Mr. Souza has also indicated
he may pursue a poker-only twelve table operation. The city
revenue associated with this type of operation is estimated at
$350,000.
wi th the current revenue at $48,000, the net impact of these
changes would be an increase of as much as $950,000 for a 12-table
consolidated two-license cardroom. Since Mr. Souza holds only two
of the four licenses currently allowed by ordinance, the activation
of the other two could effectively double this fiscal impact. It
should be noted, however, that as these estimates precede the
actual operation of the new games or any 12-table cardrooms, it is
difficult to assess the precise revenue impacts.
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Item , Page 16
Meeting Date 2/13/96
Attachments:
1. Resolution; Gaming Plan
2. Municipal Code, Chapter 5.20
3. Matrix: Current Ordinance, Request, Staff Recommendation, and
comparison data for other jurisdictions
4. Letter from Mr. Harvey Souza
5. Minutes, council Meetings of 11/21 and 11/28
6. Gaming Article, California Lawver, 12/95
c: \wp51\analyses\cardrm. 113
RPE/AM/JY
9..J-IS"
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RESOLUTION NO. I T.1./;J..
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
ADOPTING A CHULA VISTA GAMING PLAN WHICH WOULD ALLOW PAl
GOW AND SUPER PAN 9 TO BE PLAYED AT CARDROOMS SUBJECT TO
CERTAIN RESTRICTIONS, AND MAKE OTHER CHANGES INCLUDING
THE PERMISSIBLE HOURS AND DAYS OF OPERATION, MAXIMUM
BETS, ALLOWABLE HOUSE CHARGES PER TABLE AND TAX RATES PER
TABLE
WHEREAS, at the City Council meeting on November 28, 1995
Council approved certain amendments to Chapter 5.20 of the
Municipal Code regarding cardrooms; and
WHEREAS, these changes allow any form of gambling in the
City that is allowed at any other location within the state upon
the adoption of a gaming plan (the "Chula vista Gaming Plan") which
regulates such form(s) of gambling; and
WHEREAS, pursuant to letters dated November 13, 1995 and
January 17, 1996 the owner/operator of the Village Cardroom has
proposed changes to the city regulations governing cardrooms; and
WHEREAS, city staff has evaluated such proposal and
drafted a proposed Chula vista Gaming Plan which incorporates some
of the village Cardroom's proposed changes, and certain other
changes, on the terms and conditions set forth therein; and
WHEREAS, staff submitted the proposed gaming plan to the
City Council for its consideration with comments and
recommendations from the Chief of Police and the City Manager that
the Gaming Plan be approved; and
WHEREAS, in accordance with section 5.20.001 of Municipal
Code, a duly noticed public hearing was held on such gaming plan on
February 13, 1996; and
comments
thereon;
WHEREAS, the city Council duly considered all public
on the proposed gaming plan prior to taking action
NOW, THEREFORE, BE IT RESOLVED the City Council of the
city of Chula vista does hereby adopt the Chula vista Gaming Plan
in the form attached hereto as Exhibit A, with such minor wording
changes or clarifications as may be required or otherwise approved
by the city Attorney.
Presented by
Approved as to form by
Richard Emerson, Chief of
Police
~
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Boogaard,
<~-or
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9-/- /9/<1-1-.20
EXHIBIT A
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 20, 1996, after a public hearing,
pursuant to City Council Resolution No.
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. Licensinq.
2.1 License Required to Operate Cardroom
Licensee's Must be 21 Years or Older.
Individual
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 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.
1
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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
certi~ied determination thereof by the state Department of Finance.
The number of licenses so authorized shall not be more than one per
forty thousand (40,000) residents or any fraction thereof. 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 Tvpes of Licenses -- Class I and Class II.
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 as of December 31, 1995 to be within the
permissible subject of local licensing by California cities, except
Super Pan 9, pai Gow, California 22, panguingue, and any and all
similar games; and (b) a Class II license shall permit the playing
of all games permitted under a Class I license, and shall also
permit the playing of Super Pan 9 and pai Gow.
2.3.2 Conversion to Class II. 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 without the occurrence of a transfer of a
"material or controlling financial interest" (as defined in section
2.5.6.3) in such license during such period; 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 Application Procedure; Contents. Any Person
desiring a cardroom license must submit an application therefor 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
2
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application shall include, in addition to any other information
required by the Chief of Police:
(a) the date of the application;
(b) 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) a description and the address
location of the cardroom, including
ownership or control thereof;
of the proposed
evidence of the
(e) proof of status of registration with the Attorney
General pursuant to the Gaming Registration Act;
(f) a statement, under penalty of perjury, that all
information provided is accurate, and that the city shall
have the right to investigate the applicant; and
(g) 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.
In the event that any Person with a financial interest in the
anplied for license is an entity (as opposed to an individual),
such Person shall also include any and all documents relating to
the formation, legal status, ownership or governance of such
entity. For example, a corporation shall include in its
application, without limitation, a copy of any articles, bylaws,
any other required filings with the state or federal government
(excluding tax returns), shareholders agreements, and a list of
shareholders including names, addresses and percentage interests;
a partnership shall include, without limitation, a copy of any LP-
1s, Statements of Partnership, Fictitious Business Name statements,
any other required filings with the state or federal government
(excluding tax returns), partnerShip agreements, and a list of
partners including names, addresses and percentage interests. The
name and address of any designated agent for service of process
shall also be specified.
2.4.2 Independence Requirement. 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
3
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section may have a financial interest, or any other interest, in
any other cardroom license, or application pending therefor.
2.4.3 Definition of "Financial Interest". For purposes
of this Gaming Plan, the term "financial interest" shall mean any
and all direct or indirect ownership, creditor, guarantor, profits,
community property or other interest in a cardroom license, the
cardroom business operated thereunder, a significant portion of the
assets thereof, the revenues generated thereby, or any such
interest in any Person that itself holds such an interest.
2.4.4 Issuance Procedure. 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, unless such period is extended by the city Council, 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 by
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.
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, direct
or 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, for example purposes only,
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
cardroom operated hereunder.
4
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2.5.2 Application Required. A license may only be
transferred to a Person that submits an application for approval by
the City and receives approval from the City in accordance with the
procedures set forth for the issuance of a licenses set forth in
section 2.4 hereof.
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, and (b) the ratification of the
ci ty 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 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.
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 transferror 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.
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" (defined 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
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Class II license so reverted may be converted back to a Class II
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 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
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 cODstitute 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 (1) year following
the effective date of the transfer of the Class II
license, or such longer period as the Chief of
Police may require (the "Temporary Class II status
Period"), the Class II status 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
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licensee in accordance with the terms and
condi tions 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 pot8ntial 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
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 c:.nd all provisions hereunder
applicable thereto.
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 consulidation 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 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
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"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 hereof)
in such licenses or the cardrooms operated thereunder. Under a
consolidated license, the maximum number of tables permitted to be
operated is twelve (12), subj ect to any additional or r:ontrary
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 full benefits and burdens hereunder of Class II status
shall apply to all the card tables operated under such consolidated
license.
2.7 License Tax.
2.7.1 In General. For the privilege of holding a
cardroom license, 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 partially for
regulatory purposes, and partially for the purpose of generating
revenues to the general fund of the city. The tax shall be imposed
against the number of tables licensed, based upon the Class of
license issued with respect thereto, regardless of the number of
tables which may be operated on any given day or the Class of game
conducted thereon.
2.7.2 Amount of Tax -- Greater of Base or Gross Revenues
Rate. The license tax to be assessed and collected on each
licensed cardroom shall be the qreater of the applicable "base
rate" tax per table, Q!: the applicable "adjusted gross revenue
rate" tax per table, if any, determined as follows:
2.7.2.1 Base Rate:
a. Clas.s I -- Non-consolidated: The base
license tax for card tables licensed under a single, non-
consolidated Class I license shall be (1) $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.
license tax for card tables
license shall be $2,500 per
Class I -- consolidated: The base
licensed under a consolidated Class I
card table per annual quarter.
c. Class I -- Greater Than $3 Charge Per.
Hand: Notwithstanding the foregoing, at such time that this Gaming
Plan approves and the licensee charges in excess of three dollars
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($3.00) per table per hand, the base license tax for such Class I
card tables shall be $4,000 per card table per annual quarter.
d. Class II: The base license tax for
each card table licensed to play Class II games under a Class II
license shall be $4,000 per table per annual quarter. For example,
if 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 2 tables shall be the Class II base rate.
Notwi thstanding the foregoing, in the event that no games are
conducted at a table operated under a Class II license for an
entire quarter, that table shall be treated as a Class I table for
purposes of this section 2.7.
2.7.2.2 Adjusted Gross Revenues Rate:
a. Calculated for Both Class I and Class
II Tables: If the mean average "adjusted gross revenues" (defined
below) per quarter per table for Class I tables, on the one hand,
or Class II tables (if any), on the other hand, exceeds $60,000 per
table, an adjusted gross revenues tax per table per quarter shall
be determined for each Class of tables with such an average, based
upon the following rates:
Gross revenues UP to:
Tax rate:
$70,000
$80,000
$100,000
7.00%
7.25%
7.50%
with an additional 0.25% tax for each additional
$100,000 or fraction thereof in adj ..1sted gross
revenues per table per quarter, up to a maximum
rate of 10%.
Any applicable rate shall be applied on the aggregate amount of
adjusted gross revenues generated per table; in other words, the
applicable rate shall not be applied in combination with other
rates as a marginal rate.
b. Revenues Not Attributable to a Class
I or Class II Table: In any case in which a portion of the
adjusted gross revenues cannot be allocated directly to either
Class I or Class II games, these revenues shall be divided between
the two classes based on the proportion of maximum allowable
players per class of games as licensed at that establishment. For
example, if a cardroom has nine poker tables (Class I) and three
pai Gow tables (Class II), the maximum number of poker players
would be 81 and the maximum number of pai Gow players would be 84.
Thus, in this case, the Class I tables would be allocated 49.09% of
the non-game-specific adjusted gross revenue and the Class II
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tables would be allocated 50..91% of the non-game-specific adjusted
gross revenue.
c. Definition of Adjusted Gross Revenues:
Adjusted gross revenues shall be defined to include all revenues
received by the license holder from per hand money collected, seat
rental fees, and any and all other revenues generated from or
attributable to card play, except fees charged to players that are
returned to the players through approved direct promotions, subject
to any applicable state and/or city restrictions on such
promotions. Adjusted gross revenues shall be calculated separately
for Class I and Class II Games. Notwithstanding any other
provision in this section 2.7 to the contrary, any table which is
not in use at any time for an entire quarter shall not be
considered in the calculation of adjusted gross revenues per table
per quarter for the other tables and shall itself be assigned an
adjusted gross revenue figure for that quarter of $0.
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. For the first three (3) quarters of any
cardroom operation, the minimum advance payment amount shall be the
applicable base license tax applicable thereto. For each quarter
thereafter, the minimum advance payment amount shall be the mean
average of the license tax amounts which were determined by the
city to be ultimately due and payable to the City with respect to
the most recent previous two quarters for which such data is
available.
2.7.3.2 Reconciliation payment. By no later tnan
the date falling thirty (30) days after the expiration of each
calendar quarter, a licensee hereunder shall submit to the Finance
Director, in a form approved thereby (a) a verified statement of
the adjusted gross revenues generated during such quarter, and (b)
licensee's request for reimbursement from the city, or licensee's
payment of any additional amounts owed, as appropriate, determined
by licensee based upon such statement of adjusted gross revenues.
The Finance Director shall have the authority to designate an
alternate payment procedure to ensure timely collection of all
amounts due.
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. Licensee shall be
obligated to bear the costs of one such audit each calendar year,
not to exceed $2,000 per audit. In addition, in the event that the
city disagrees with any verified statement of adjusted gross
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revenues submitted pursuant to section 2.7.3.2, above, the city
shall notify licensee in writing of such disagreement and, at
city's request, licensee shall submit to an independent audit by
the city, or its designee, of licensee's accounting records in
order to verify such statement. In the event that the city
determines that licensee's verified statement understates adjusted
gross revenues, licensee shall be immediately required to submit
payment of the difference to the city. If such discrepancy exceeds
a factor of five percent (5%), then (a) licensee shall be deemed to
be in violation of the Gaming Plan, and subject to the applicable
remedies set forth in Section 4 hereof, and (b) in addition to
licensee's obligation to immediately pay the discrepancy and any
monetary penalty assessed, licensee shall be required to pay the
City's costs in conducting its audit hereunder.
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.
3. Operatinq Limitations and Conditions.
3.1 city Land Use Requlations 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: subj ect 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 as of December 31, 1995 to be within the permissible
subject of local licensing by California cities, except that Super
Pan 9, pai Gow, California 22, panguingue and any and.all similar
games may not be played. The games permitted under this section
shall be referred to herein from time to time as "Class I Games".
3.2.2 Class II License: Subj ect to the terms and
conditions of this Gaming Plan and the Gaming Code, the holder 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 Super Pan 9
and pai Gow. super Pan 9 and pai Gow shall be referred to herein
from time to time as "Class II Games".
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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 Davs of Operation.
Licensed cardrooms may operate seven days per week,
except that no cardroom shall be operated, and no card table
licensed under the provisions of this code which is maintained or
operated in connection with any other business shall be used for
any card game, from four o'clock a.m. to eight o'clock a.m. of any
day; and
3.5 Maximum Number of Tables.
3.5.1 Class I
of tables permitted under
license shall be eight (8).
Non-Consolidated. The maximum number
a single, non-consolidated Class I
tables
twelve
3.5.2
permitted
(12) .
Class I -- Consolidated. The maximum number of
under a consolidated Class I license shall be
3.5.3 Class II -- Non-Consolidated. The maximum number
of tables permitted under a single, non-consolidated Class II
license shall be eight (8); however, only two (2) of the eight (8)
licensed tables shall be permitted at anyone time to conduct Class
II Games.
3.5.4 Class II -- Consolidated. The maximum number of
tables permitted under a consolidated Class II license shall be
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eight (12); however, only three (3) of the twelve (12) licensed
tables shall be permitted at anyone time to conduct Class II
Games.
3.6 Maximum Number of Players Per Table.
3.6.1 Class I Tables. No more than nine (9) players
shall be permitted at anyone card table conducting Class I Games.
3.6.2 Class II Tables. No more than seven (7) seated
players with three additional standing players per seat, for a
total of twenty-eight (28) players per table shall be permitted at
anyone card table conducting Class II Games.
3.7 Maximum Bets and Bettinq Rules.
3.7.1 Class I Games. No bet or wager in any Class I
Game shall exceed the sum of eighty dollars ($80). Only table
stakes shall be permitted. No jackpots shall be allowed.
3.7.2
or wagers in any
be permitted.
Class II Games. There shall be no limit on bets
Class II Game except that only table stakes shall
3.8 Maximum House Charqes Per Hand -- Postinq Required.
3.8.1 Class I Games. No charge in excess of three
dollars ($3.00) per hand per table shall be collected by a cardroom
operator from any players for the privilege of participating in any
Class I Game. Notwithstanding the foregoing, effective January 1,
1998, the maximum charge allowed shall be increased to a maximum of
four dollars ($4.00) per hand per table for Class I Games.
3.8.2 Class II Games. No charge in excess of one dollar
per each one hundred dollars ($100), or portion thereof, wagered
shall be collected from any player for the privilege of
participating in any Class II Game.
3.8.3 posting Required. A copy of all schedules of
house charges shall be provided to the Police Chief and shall be
clearly posted in each licensed cardroom.
3.9 Work Permits and Identification Badqes Required For
Manaqers. Independent Contractors and Emplovees.
3.9.1 Work Permit Required. Prior to commencing work at
a cardroom, each proposed manager, independent contractor 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.
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3.9.2 Application Process. Each proposed manager,
independent contractor 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.
The work permit, when issued, shall be valid for one (1) year. Any
renewal must also be approved by the Chief of Police. The Chief of
pollce may deny any Person the initial approval or renewal of a
work permit if, in the Chief of Police's opinion, such Person
should not be permitted to work in the cardroom in the capacity
proposed.
3.9.3 Identification badges to be worn. Every manager,
independent contractor, 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.
3.10 Drinkinq of intoxicatinq beveraqes prohibited.
The drinking of any intoxicating liquor in a cardroom by
any Person in the cardroom is prohibited. The licensee of a
cardroom shall take all necessary and appropriate steps to assure
compliance with this section.
3.11 Minors prohibited from patronaqe or employment.
No Person under twenty-one years of age shall be
permitted to play any game at any card table in the city. No
person under twenty-one years of age shall be employed where any
card table is maintained in the c"ity.
3.12 Siqns 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 re;rulations
3.13 Class II Games to be Played On1v at Cordoned off Tables.
All cardroom areas to be used for Class II gaming shall
be roped, cordoned or otherwise physically separated from the Class
I gaming areas. All individuals within such Class II gaming areas
other than cardroom employees, City regulatory or enforcement staff
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or uniformed security personnel who are working within the scope of
their employment shall be considered players at the table for
purposes of compliance with the maximum number of players allowed
provisions of section 3.6 hereof. No individual located outside
the separate Class II gaming area shall be permitted to participate
in any way ip any Class II gaming activities.
3.14 Operations in Accordance with an Approved Security Plan.
All cardrooms operating more than 8 tables under a Class
I license or operating Class II games under a Class II license
shall be operated in strict accordance with a security plan which
has been submitted to and approved in advance of commencement of
such operations by the Chief of Police. Every security plan shall
include the following elements: (a) minimum qualifications of
security personnel; (b) number of security personnel to be present;
(c) schedule and locations for security personnel; (d) system for
communication between security personnel and the city police
department; and (e) any and all other provisions required by the
Chief of Police in his sole discretion.
3.15 Licensee Responsible for Compliance and Supervision of
Ooerations.
The licensee of a cardroom shall be responsible for
assuring that any cardroom operated under such license is operated
ln 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.
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.
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4.2 Monetarv 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 6 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. Notwithstanding the foregoing, in the event that the
violation subject to monetary penalty hereunder is a violation of
the 5% discrepancy rule set forth in section 2.7.4 hereof, then the
city shall have the right to impose a penalty of up to the greater
of (a) the penalty otherwise assessable hereunder, or (b) 10% of
the amount of the discrepancy exceeding 5%.
4.2.2 Imposition of Fine Not Election of Remedies. The
pursuit of monetary fines against a licensee or the receipt of
payment therefor 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
operation 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 aid 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 re~uired
to be submitted under this Gaming Plan or under any other
applicable federal, state or local law, rule, regulation or permit.
(b) A non-complying purported transfer of a
cardroom license held or issued hereunder.
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(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.
(j) Refusal to permit city access to a cardroom for
purposes of auditing or inspecting same.
4.4 Audit and Inspection Riqhts.
The City shall have the right, at any time, without
notice, to enter into any cardroom operating within the City and to
conduct a reasonaDle 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.
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 Headinqs.
section headings contained herein are for reference
purposes only and shall not be deemed to govern, limit, modify or
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in any manner affect the scope, meaning or intent of the provisions
of any section hereof.
5.3 Gaminq Plan Amendments.
This Gaming Plan may be revok~d or amended, in whole or
in part, at any time, after a public hearing, by approval of the
city council.
5.4 Inteqrated Plan.
The provisions of this Gaming Plan providing for the
payment of a license tax and the provisions allowing the licensing
of cardrooms on specified terms and conditions are not severable
from each other; rather, they are intended to be integral parts of
a comprehensive regulatory scheme. In the event that the
provisions of this Gaming Plan relating to the payment of the
license tax, as herein set forth, or subsequently amended, are held
to be invalid or unenforceable for any reason by the final
judgement of a court of competent jurisdiction, then this Gaming
Plan, in its entirety, shall thereupon become null and void, and
the Gaming Code otherwise implemented hereby shall thereupon govern
and control the operations of cardrooms within the city. Except as
provided above, in the event that any other material provision of
this Gaming Plan is held to be invalid or unenforceable for any
reason by the final judgement of a court of competent jurisdiction,
such decision shall not affect the validity of the remaining
portions of the plan unless otherwise determined by the City
Council.
5.5 Aqreement of Licensee to Accept Validi tv and Abide bv All
Provisions.
In order to legally operate a cardroom within the City
each licensee which holds or is issued a license hereunder, 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 Person(s)
(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; (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; and (d) shall
indemnify, protect, defend and hold harmless the City, its
councilmembers, officers, employees, agents and representatives
from and against any and all claims, losses, liabilities, damages
and costs, including court costs and attorney's fees, arising in
connection with the issuance or transfer of such Person(s) license
or the operations of the cardroom permitted thereby.
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Cf-I-Ji/t-I-51
ATTACHMENT #2
ORDINANCE NO. 2655
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA AMENDING CHAPTER 5.20TO ALLOW IN CHULA VISTA
ANY FOFlM OF GAMBLING ALLOVJED AT ANY OTHER
LOCATION WITHIN THE STATE SUBJECT TO APPROVAL OF
AND QUALIFICATION UNDER A GAMBLING PLAN ADOPTED BY
RESOLUTION OF THE COUNCIL.
THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY ORDAIN AS
FOLLOWS:
Section 1. Section 5.20 of the Municipal Code is he,eby amended to read as follows:
Sections:
'Chapter 5.20
GAMBLING'
Subchapter 1. Chula Vista Gaming ~lan
5.20.001 Gaming Plan Adopted by Resolution.
5.20.002 All Gaming Allowed fubject to Gaming Plan
5_20.003 Effect of Adoption of Gaming Plan.
5.20.004 Inconsistencies with Chula Vista Gaming Plan
5_20.005 Savings Clause
Subchapter 2. Cardrooms
5.20.010
5.20.020
5.20.030
5.20.035
5.20.040
5.20.050
5.20.060
5.20.070
5.20.0S0
5.20.090
5.20.100
5.20.110
5.20.120
5.20.130
5.20.140
5.20.150
5.20.160
5.20.170
5 ?0.1S0
!..20.190
I
Cardroom.Defined.
Llcense.Required.lsSVl!nce to person under certain age prohibited.
License-Number permitted and transferability.
Consolidation.Permitted.
License-Initial Issuance procedure.
License.Tax and attaching of receipts.
License.Applications required-Contents.lssuance prerequisites.
Work permits required.Application contents-Investigation fee
Issuance.Period of validity.
Identification badges to be worn.
Llcense.Grounds for revocation.
Rules amI Regulations generally.
Games permitted-conditions.
Hours and days of operation.
Drinking of Intoxicating beverages prohibited.
Minors prohi!lited from patronage or employment.
Maximum number of players per table.
Maximum number of tables on premises-Arrangement.
Supervision of game playing.
Bets and wagers permitted when
'::!Iarges fN game playing.Muimur.1 desig"ated.
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Page 2
5.20.200
5.20.210
5.20.220
Subc'.apter 3.
5.20.230
Subchapter 4.
5.20.240
Subchapter 5.
5.20.250
Subchapter 6.
5.20.260
Subchapter 7.
5.20.270
Signs to be posted in cardroom-Contents
License-Revocation criteria.
license.Additional grounds for revocation.
Horse and Pog Wagering
On-Site and Satellite Horu and Dog Wagering
spons Book
Sports Book Allowed Subject to Gaming Plan
Casino Gaming
Casino Gaming Allowed Subject to Gaming Plan
Video Gaming
Video Gaming Allowed Subject to Gaming Plan
Other Gaming
Other Gaming Allowed Subject to Gaming Plan
Section 1. Chula Vista Gaming PI..n
15.20.001
Gaming Plan Adopted by Resolution.
In addition to the gaming. and regulatory controls that otherwise exist in relation to
gaming. allowed in Chura Vista specifically by this chapter. the city council is hereby
authorized to adopt by resolution after public hearing. and from time to time amend by
resolution after public hearing. a gaming plan ("Chula Vista GJming Plan", or alternatively
~gaming plan") which gaming plan shall contain such provisions and regulations as the city
council shall deem appropriate, including but not limited to, the follow;.,g:
,. iypes of gaming allowed. including but not limited to card games. on.site horse
and dog wagering. sports book, casino games. video gambling. etc.,
2. Hours and days of operations.
3. 1.ocation of gaming.
4. Auditing of gaming establishments.
5. 1.icensing fees or other charges, including charges on a percentage of gross
receipts basis, in an amount Council deems appropriate.
S. Maximum number of players per table.
7. Bet! and wagers permitted.
B. Charges for gaming.
9. 1.icensing, including number of licensees and consolidation.
, O. Drinking of intoxicating beverages.
11. Maximum number of tables on premises.
12. Every aspect of operation of gaming establishments.
However, the Chuta Vista Gaming Plan shall not allow any form or type of gaming
within the city which is not allr .ved at least at one other locati"n anywhere wittn the State
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of California. or federal or Native American enclave or reservation located within the
jurisdictional boundaries of the state.
Notwithstandin~ the fore~oin~. no ~amin~ plan may be approved bi the council
without receipt and consideration by the council. et a put-lic hearin~. of the comments end
reco,nmendations of the chief of police end the city mana~er; r.nd no permit or license
thereunder may be issued without the concunence of both the chief of police and the city
council. The gamin~ plan shall have, et a minimum, a provision that requires permits :0 be
issued to specific operators end makes it mandatory that the permit issuing authority is vested
in both the chief of police and the city council jointly.
5.20.002
All Californie Gaming Allowed Subject to Gaming Plan
Notwithstanding anything else to the contrary herein contained. all gamin~ lawfully
ellowed to exist et eny locetion in the State of California, including but not limited to. any
federal enclave or Native American reservation contained therein, shall be, and is hereby
declared to be. lawfully conducted in the City of Chula Vista and shall be end is permitted. on
the condition it complies with. is consistent with. end is permitted by and under the Chuta
Vista Gaming Plan, es same may be adopted end emended by resolution from time to time.
5.20.003
Preeminence and PrioritY of Gamin" Plan.
Notwithstandin~ anythin~ else in this chapter to the contrary, all gaming and any
operational controls thereon which may be allowed pursuant to the Chuta Vista Gaming Plan
shall be deemed to be allowed by this chapter of the Municipal Code. and by the enacting
ordinance without further amendment of said code or ordinar;ce es if same were contained
herein.
5.20.004
Inconsistencies with Chule Vista Gaming Plan
Any inconsistencies between the provisions of this chapter end the Chuta Vista Gaming
Plan shall be governed by the provisions of the Chule Vista Gamin~ Plan.
5.20.005
Savings Clause
If any pert of this chapter is held for any reeson to be illegal, it is the intent of the
council end city that eech and every remeinin~ provision hereof not held illegal shall be legal
and remain in full force and effect despite the declaration of illegality IS to such part.
5.20.006
I;haracterizetion of Gaming Plan
The Chula Vista Gaming Plan. when end if edoPted. shall not be deemed to be an
ordinance of the city. but ir..teed shall, for all intents end purposes. be deelT'.,d to be 21
resolutior. of the city.
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Subchapter 2. Cardrooms
S.20.010
Cardroom-Defined.
Unless otherwise expa,1ded by the Chula Vista G'3ming Plan. for the purpose of this
chapter, a 'cardroom' is defined to be any space, room or enclosure funished or equipped
with a table used or intended to be used as a card table for the playing of cards and similar
games, and the use of which is available to the public. lOrd 2112 11/ 1985; Ord 1305 12
(part), 1970; prior code 19.101).
S.20.020
License-Required-Issuance to person under certain age prohibited.
Unless otherwise allowed by the Chula Vista Gaming Plan, it is unlawful for any
person, for himself or for any other person, firm or corporation, to engage in or carryon, or
to maintain or conduct, or cause to be engaged in, carried on, maintained or conducted. any
cardroom in the city without first having secured a license from said city so to do, according
10 each and every requirement of this chapter or without complying with each and every
Tegulation pertaining to such cardroom. Unless otherwise allowed by the Chula Vista Gaming
Plan, it is unlawful for any person to maintain or operate any card table in connection with any
cigar store, pool or billiard hall or any ::>ther business, C'r a room in which card tables are
maintained in the city without such person first having obtained from the council a license
authorizing such person to maintain and operate such card table or tables or card table
business. Unless otherwise allowed by the Chula Vista Gaming Plan. no license shall be
issued to any person under the age of twenty-one years. lOrd. 1305 12 (part). 1970; prior
code 19.102(1)).
S.20.030
Ucense.Number permined and transferability.
Unless otherwise allowed by the Chula Vista Gaming Plan, the number of licenses
lluthorized for issuance under the provisions of this chapter shall be limited, based upon the
population of the city as shown upon the population certified by the state Department of
finance. Unless otherwise allowed by the Chula Vista Gaming Plan. the number so authorized
'shall be one per forty thousand residents or any fraction thereof. Unless otherwise allowed
by the Chula Vista Gaming Plan, all such licenses shall be issued in accordance with the
provisions of this chapter; provided, however, unless otherwise provided by the Chula Vista
Gaming Plan, those persons holding a license to conduct cardroom operation upon the
effective date of this section may continue to hold such licenses subject to the revocation
provisions set forth in this chapter. Unless otherwise allowed by the Chula Vista Gaming
Plan, any license issued pursuant to this chapter may be transferred upon the approval of the
chief of police to a person meeting all of the requirements for the initial issuance of such a
cardroom license. subject to the ratification of the city council which approval may be
withheld in the sole discretion of the chipf of police and which ratification may be withheld
in the sole discretion of the city council, and such approval and ratification may, but is not
TeQuired 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 when, in the opinion
of the r,proving or ratifyi"g entity, there e~pears to be good cause why such person should
not Of'!rate a cerdroom' provided. however, that, unless otherwise prOVIded by tha Chula
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Page 5
Vista Gaming Plan. with the exception of those licenses which have been issued prior to the
effective date of the ordinance set forth in this section and Section 5.20.040. no license may
be so transferred unless the holder thereof has been operating a cardroom for three years at
a fixed location in the city. For the purposes of this section. unless oth~rwise p.ovided by the
Chuta Vista Gaming Plan. it shall be deemed to be a transfer of a license requiring approval
of the chief of police and ratification by the city council if a shareholder of a corporate
licensee transfers any shares in the corporate licensee. Unless otherwise provided by the
Chula Vista Gaming Plan. it shall also be deemed to be a transfer of a license requiring ap-
proval of the chief of police and ratification by the city council if a partner of a partnership
licensee transfers all or any portion of his or her partnership interest. (Ord. 2528 i 1 (part).
1992; Ord_ 2347 i1. 1990; Ord. 2150 i1 (part). 1986; Ord. 1738 i1 (part). 1977; Ord.
1305 i2 (part). 1970; prior code i9.102(2)).
5.20.035
Consolidation.Permitted.
Unless otherwise expanded or provided by the Chula Vista Gaming Plan.
notwithstanding the provisions of Section 5.20.160 regarding the maximum number of tables
on premises. the city council may. in their sole discretion. grant one additional license. but no
more than one (unless otherwise allowed by the Chula Vista Gaming Plan) to a person having
an interes. in or holding a license to any cardroom in the city but then only in accordance with
the procedures set forth in this chapter or the Chula Vista Gaming Plan and only if the total
number of licenses issued. including consolidated licenses as two separate licenses. does not
exceed the maximum permitted by Section 5.20.030 or the gaming plan. If such application
for an additional single license is granted. the maximum number of tables permitted in the
consolidation of two cardrooms is twelve (12) unless otherwise provided by the Chula Vista
Gaming Plan. No licensee may obtain or have issued more than two licenses unless otherwise
provided hy the Chula Vista Gaming Plan. Unless otherwisl. provided by the Chula Vista
Gaming Plan. a person shall be deemed to have an interest in. or hold. an existing license if
said person is a designated licensee. if they are presently married to an existing licensee. if
they are the parent or child of an existing licensee. if they own shares in a corporation that
owns a license or has a partnership interest in a license. if they own a partnership interest in
a partnership that has a license or owns shares in a corporation that owns a license or if some
other relation as specified in the Chula Vista Gaming Plan exists.
Unless otherwise provided by the Chula Vista Gaming Plan. consolidation occurs
whenever a cardroom licensee or a person having a financial interest in a cardroom obtains
a license to operate an additional cardroom or acquires a financial interast in an additional
cardroom.
(Ord. 2528 11 (partl. 1992; Ord. 2364 i 1. , 990; Ord. 2347 I'. , 990; Ord. 2015 I' (part).
'9821.
5.20.040
license.lnitial issuance procedure.
Unless otherwise allowed by the Chula Vista Gaming Plan. all licensees shall comply
with the provisions of this ! .~a~ter or such other provisions set forth ;~ the Chula Vist:
Gaming Plan. An'! epplicant! requesting a license as permit old in Section 5.20.030 sh&1I p~y
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a nonrefundable fee as presently designated, or as may in the future be amended by
resolution, in the master fee schedule, Section 5.20.040, or the gaming plan. to cover the
cost of investigation. Unless otherwise provided by the Chula Vista Gaming Plan. no applicant
requesting a license pursuant to this section may have any financialcr other interest as set
forth in Section 5.20.035 in any other cardroom license. or application pending therefore.
Unless otherwise provided by the Chula Vista Gaming Plan, each application shall be totally
independent and unassociated with any other application being submitted for the purpose of
obtaining such a license. The initial period for issuance of new cardroom licenses shall be the
month of May, 1977, and in the month of May in subsequent years should there be additional
licenses available. After the termination of the open period in May. no further licenses shall
be issued until the succeeding open perioo unless otherwise provided by the Chula Vista
Gaming Plan. Unless otherwise provided by the Chula Vista Gaming Plan, in the event that
there are applications in excess of the number of licenses available in accordance with the
limitations set forth in Section 5.20.030, based upon population. the chief of police shall
conduct a publiC lottery to select those applicants who shall be investigated to determine if
they are qualified to be issued any available cardroom licenses as approved by the chief of
police, subject to ratification of the city council.
Upon the issuance of available cardroom licenses. the chief of police shall authorize the
Tefund of any application fee to any persons who were not subject to investigations unless
otherwise provided by the Chula Vista Gaming Plan.
(Ord. 2528 ! 1 (part), 1992; Ord. 2506 ! 1 (part). 1992; Ord. 2408 ! 1 (part). 1990; Ord.
2015 !1 (part). 1982; Ord. 1961 J1 (part). 1982; Ord. 1738!1 (part). 1977; Ord. 1305 !2
(part). 1970; prior code !9.1 02(3)).
!i.20.050
1.icense-Tax and attaching of receipts.
Unless otherwise provided by the Chula Vista Gaming Plan, the license tax for
maintaining or operating any card table or card table business in the city is payable quarterly
in advance and fixed at a sum as presently designated. or as may in the future be amended.
in the Master Tax Schedule, Section 5.20.050. or the Gaming Plan. Unless otherwise
provided by the Chula Vista Gaming Plan. the city finance officer shall issue a receipt for each
separate card table license as in this section required. and such receipt shall be attached to
such card table and preserved thereon during the full term for which such receipt was issued.
lOrd. .2408 ! 1 (part). 1990; Ord. 1305 !2 (part), 1970; prior code !9.102(4)).
5.20.06D
License-Application requlred.Contents.lssuance prerequisites.
Unless otherwise provided by the Chula Vista Gaming Plan. an epplicant for a cardroom
license shall submit his application to the chief of police. which application shall be under
oath. and shall include, among other things, the true names end addresses of ell persons
financially interested in the business. The past criminal record. if any. of all persons
financially or otherwise interested in the business shall be shown on such application. The
1erm "persons financially interested" shall include all persons who share in the profits of the
"usiness, pn the basis of gross or net ~evenue. incluct;~g 'andlords. lessors. lessees. the owner
or C .vners 0/ the building, fixtures or equipment The epplicatiol1 shall also be a"'compenied
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Page 7
by fingerprints of persons financially interested. (Ord. 2528 i 1 (part). 1992; Ord. 1969 i 1
(part!. 1982; Ord. 1305 i2 (part). 1970; prior code i9.102(5)).
5.20.070
Work permits required-Application contents-Investigation fee-
Issuance-Period of validity.
A. The manager of a cardroom. if he 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. He shall submit his application for such work permit to the chief of
police. which application shall be under oath and shall include, among other things. t'1e
past criminal record. if any. of the applicant and shall be accompanied by the
fingerprints of the applicant. An application for a manager work permit shall be
accompanied by the required feelS) or the required renewal feels!. The work permit,
when issued. shall be valid for one year. The chief of police may deny such work
permit. if. in his opinion. the applicant therefor should not be permitted to act as
manager in lieu of management by the licensee of the cardroom.
8. Employees in cardrooms must obtain a work permit from the chief of police.
Applications for such work permits shall be submitted under oath and contain such
information as may be deemed by the chief of police to be necessary to determine
whether the applicant is a proper person to be employed in a cardroom. The chief of
police may deny such work permit if. in his opinion. the applicant therefor should not
be permitted to be ~:nployed in a cardroom. Ea.:h application for a work permit ";Iall
be accompanied by the required feels!. or the required renewal feels!. Such permits
shall be valid for one year.
C. The provisions of this section may be modified by the Chula Vista Gaming Plan.
(Ord. 2506 i 1 (part), 1992; Ord. 2408 i 1 (part). 1990; Ord. 1969 i 1 (pan). 1982; Ord.
1961 i1 (part). 1982; Award 1680 11 (part>. 1976; Ord. 1305 i2 (part). 1970; prior code
i9.102(6)).
5.20.080
Identification badges to be worn.
Every manager and employee of II cardroom licensed according to the provisions of this
chapter shall. at all times when present in such card rooms. wear an identification badge
containing his photograph, ege. address end description of such individual. The provisions of
this Section may be modified by the Chuta Vista Gaming "Ian. (Ord. 2005 11. 1982; Ord.
1305 12 (part). 1970; prior code 19.10,(7)).
5.20.090
L:cense.Grounds for revocation.
Licenses for cardrooms may be revoked in the manner and for the reasons set forth in
Section 5.02.180 et seq. of this code and for the further reason consisting of a violation of
any of the provisions of this chapter. or fN allowing persons other th,:\ those named in the
apr:i;:ation on file with the city .::ouncil t / oVJn an interest in or have direct menagement of
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such cardroom; provided however, that direct management of such cardroom may be
accomplished by the employment of a manager pursuant to the provisions of Section
5.20.070; for maintaining a greater number of tables than the number set forth in the
application; or for maintaining such cardroom business upon premises which are or have
become unsuitable or an improper place therefor. The provisions of this Se:tion may be
modified by the Chula Vista Gaming Plan. (Ord. 1305 S2 (partl. 1970; prior code S9.1 02(8)).
5.20.100
Rules and regulations generally.
It is unlawful to operate a cardroom in violation of any of the regulations and rules set
forth in the Chula Vista Gaming Plan, or Sections 5.20.110 through 5.20.20C herein, unless
otherwise allo....ed or regulated by the Chula Vista Gaming Plan. (Ord. 1305 S2 (partl. 1970;
prior code S9.1 03 (part)).
1\.20.110
Games permined-conditions.
Effective upon adoption of a Chula Vista Gaming Plan that addresses the subject
maner of this section, but only to the extent allowed by the Chula Vista Gaming Plan if more
restrictive than the provisions hereof. all card games which have been determined by the
attorney general to be within the permissible subject of local licensing by California cities may
be played in any licensed cardroom on the following conditions. except that pai-gow, super
pan. California 22 and panguingue may not be playect 'Jnless they are permitted to be played
1Jnder the terr..:> and conditions set forth in the Chula Vista Gaming Plan:
1. A wrinen set of rules ("games rules") for a proposed card game are on file with the
city and have been approved. in writing, by the chief of police at the time of playing
the game. Said approval may be amended, conditioned or revoked from time to time
in the sole discretion of the chief of police.
2. A copy of the approved game rules showing thereon the approval of the chief of police
are 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. The game is played strictly according to said game rules. Variations of the game,
unless specifically described in the game rules, shall not be allowed.
(Ord. 2528 S 1 (partl. 1992; Ord. 1305 12 (part), 1970; prior code S9.1 03(1)).
5.20.120
Hours and days of operation.
Effective upon adoption of a Chuta Vista Gaming Plan that addresses the subject
matter of this section, but only to the extent allowed by the Chula Vista Gaming Plan if m~re
restrictive than the provisions hereof, licensed cardrooms may operate seven days a week,
24 hours per day. Until adoption of the Chula Vista Gaming Plan. no card table licensed under
the provisions of this code which is maintained :lr operated in connection with any other
busin!!ss shE''' be used for anv card game from ~ne o/clock a.m. to ..lne o'clock a.m. of any
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day and all places which are devoted exclusively to the operation or maintenance of a card
table business shall be kept closed each day from one o'clock a.m. to nine o'clocl: a.m; and
no card table shall be used for any card game on Sunday except from midnight until one a.m.
(Ord. 2528 ~1 (part). 1992; Ord. 1305 ~2 (part), 1970; prior cod!' i9.103(2)).
5.20.130
Drinking of Intoxicating beverages prohibited.
Unless otherwise allowed by the Chula Vista Gaming Plan, no license shall permit the
drinking of any intoxiceting liquor in the premises licensed under the provisions of this code.
(Ord. 1305 i2 (part), 1970; prior code i9.103(3)).
5.20.140
Minors prohibited from patronage or employment.
No person under twenty.one years of ege shall be permitted to play any game at any
card table in the city. No person under twenty-one years of age shall be employed where any
card table is maintained in the city unless otherwise allowed by the Chula Vista Gaming Plan.
(Ord. 1305 i2 (part), 1970; prior code i9.103(4)).
5.20.150
Maximum number of players per table.
EffeC'~ive upon adoption of a '-hula Vista Gaming Plan that addresses the subject
matter of this section, but only to the extent allowed by the Chula Vista Gaming Plan if more
restrictive than the provisions hereof. there shall be no limit on the number of players
permitted at anyone card table in any game. Until the adoption of the Chuta Vista Gaming
Plan. no more than eight players shall be permitted at anyone c..;d table. (Ord. 1 ;?05 i2
(part). 1970; prior code i9.103(5)).
5.20.160
Maximum number of tables on premises-Arrangement.
Unless otherwise allowed by the Chula Vista Gaming Plan, no more than eight (8)
tables shall be permitted at any premises licensed as a cardroom pursuant to this chapter,
except that at cardrooms operating under two consolidated licenses, twelve (12) tables shall
be permitted. and said playing area shall be located on the ground floor and the tables shall
be arranged so that the playing surface of each table shall be visible from the sidewalk or
public walk immediately adjacent to the cardroom, unless otherwise allowed by the Chula
Vista Gaming Plan. The holder of a cardroom license may appeal the visibility requirement to
the zoning administrator. lOrd. 252811 (part), 1992; Ord. 2347 13,1990; Ord. 1305 i2
(partl, 1970; prior code 19.103(6)).
5.20.170
Supervision of game playing.
All cardrooms and/or card tables licensed under the provisions of this chapter shall be
supervised by the :>perator or an ".nployee of the op..Tato~ ;,f the cardroom, to assure that
games plaved on said tab' ,s are played strictly in ac...ordance with the terms of thiS chapter
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and the provisions of the Penal Code of the state of California. The provisions of this Section
may be modified by the Chula Vista Gaming Plan. (Ord. 1305 12 (part). 1970; prior code
19.103(7)).
5.20.180
Bets and wagers permined when.
Effective upon adoption of a Chula Vista Gaming Plan that eddresses the subject
maner of this section. but only to the extent ell owed by the Chula Vista Gaming Plan if more
restrictive than the provisions hereof. there shall be no limit on bets or wagers in any game.
Until adoption of the Chula Vista Gaming Plan. no bet or wager in any game shall exceed the
sum of thirty dollars. and only table stakes shall be permitted. and no jackpots shall be
allowed unless otherwise allowed. (Ord. 252811 (part). 1992; Ord. 195211 (part). 1981;
Ord. 1305 12 (part). 1970; prior code 19.103(B)).
5.20.190
Charges for game playing-Maximum designated.
Effective upon adoption of a Chula Vista Gaming Plan that addresses the subject
matter of this section. but only to the extent allowed by the Chula Vista Gaming Plan if more
restrictive than the provisions hereof. there shall be no limit on the charge which may be
collected from any player for the privilege of participating in any game. Until the adoption of
"the Chula Vista Gaming Plan. no charge in excess of thirty-seven ::"ld a half cents ($.375) per
hand per player shall be collected from any player for the privilege of participating in any
game. (Ord. 252811 (part). 1992; Ord. 1952 11 (part). 19B1; Ord. 1305 12 (part). 1970;
prior code 19.103(9)).
5.20.200
Signs to be posted in cardroom.eontents.
Unless otherwise allowed by the Chula Vista Gaming Plan. 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 by the chief of police or Chula Vista Gaming Plan.
and stating the charge per hour exacted from each player for the privilege of playing. In
addition to the foregoing. each table shall identify by prominent sign located thereon the game
which is currently being played at said table unless otherwise allowed by the Chula Vista
Gaming Plan. (Ord. 2528 11 (partl. 1992; Ord. 1305 12 (part), 1970; prior code
'9.103(10)).
5.20.210
License-Revocation criteria.
Licenses for cardrooms may be revoked in the manner end for the reasons set forth in
Section 5.02.180 et seq. of this code or the Ch!Jla Vista Gaming Plan, and for eny violation
of any of the provisions of this chapter or the gaming plan. The city may. but is not required,
to impose a fine in lieu of revocation or institute such other remedy as is permitted in the
Gaming Plan. (Ord. 2528 '1 (parU. 1992; Ord. 782 (part). 1962; prior code 19.21).
fl.
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W/omance :'oot>
Page 11
5.20.220
License-Additional grounds for revocation.
Unless otherwise allowed by the Chula Vista Gaming Plan, additional grounds for
revocation shall include:
A. Allowing persons other than fhose named in the application on file with the city council
to own an intarest in, or have direct management of, such cardroom;
B. Maintaining a greater number of tables than the number set forth in tha application;
C. Maintaining such cardroom business upon premises which ara or hava become
unsuitable or an improper place therefor.
D. Violation of the provisions of the gaming plan.
(Ord. 782 (part). 1962; prior code 19.221.
Subchapter 3. Horse and Dog Wagering
5.20.230
On-Site and Satellite Horse and Dog Wagering
Notwithstanding anything else to the contrary herein contained. all horse and dog
wager. whether on-site or by satellite. lawfully allowed to exist at any location in the State
of California, including but not limite;:! to, any federal enclave or Native American reservation
contained therein. shall be, and is hereby declared to be. lawfully conducted in the City of
Chula Vista and shall be and is permitted. All such horse and dog wagering, before it may be
occur in the City of Chula Vista. shall be conducted under the auspices of a licensee who has
received a rermit fr:>m the city to engage in sports book wagering and be conducted pursuant
to the rules and regulations of the city as may be set forth in the Chula Vista Gaming Plan,
as same may be adopted and amended from time to time by resolution after public hearing.
The gaming plan shall further define horse and dog wagering if same is regulated thereunder.
Subchapter 4. Sports Book
5.20.240
Sports Book Wagering Allowed Subject to Gaming Plan
Notwithstanding anything elsa to the contrary herein containad, all sports book
wagering lawfully allowed to exist at any location in the State of California, including but not
limited 10, any federal enclave or Native American reservation contained therein, shall be, and
is hereby declared to be. lawfully conducted in t~e City of Chula Vista and shall be and is
permitted. All such sports book wagering, before it may be occur in the City of Chula Vista,
shall be conducted under the auspices of a licensee who has received a parmit from the City
to engage in sports book wagering and be conducted pursuant to the rules and regulations of
the city as may be set forth in the Chula Vista Gaming Plan, es same may be adopted and
amended from time to time by resolution after public hearing. The gaming plan shall further
define sports book wagering if same is regulated thereunder.
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).
.'
VI;". II '....' l~_ _ .....
Page 12
Subchapter 5.
Casino Gaming
5.20.250
Casino Gaming Allowed Subject to Gaming Plan
Notwithstanding anything else to the contrary herein contained. all casino gaming
lawfully allowed to exist at any location in the State of California. including but not limited to.
any federal enclave or Native American reservation contained tt erein. shall be. and is hereby
declared to be. lawfully conducted in the City of Chula Vista and shall be and is permitted.
All such casino gaming. before it may be occur in the City of Chula Vista. shall be conducted
\Jnder the auspices of a licensee who has received a permit from the city and be conducted
pursuant to the rules and regulations of the city as may be set forth in the Chula Vista Gaming
Plan. as same may be adopted and amended from time to time by resolution after public
nearing. The gaming plan shall further define casino wagering if same is regulated thereunder.
Subchapter 6. Video Gaming
!i.20.260
Video Gaming Allowed Subject to Gaming Plan
Notwithstanding anything else to the contrary herein contained. all video gaming
lawfully allowed to exist at any location in the State of California. including but not limited to.
any federal enclave or Native American reservation contained therein. shall be. and is hereby
declared to be. lawfully conducted in the City of Chula Vista and shall be and is permitted.
All such video gaming. before it may be occur in the City of Chula Vista. shall be conducted
under the auspices of a licensee who has received a permit from the city ancl be conducted
llursuant to the rules and regulations of the city as may be set forth in the Chula Vista Gaming
Plan. as same may be adopted and amended from time to time by resolution after public
nearing. The gaming plan shall further define video gaming if same is regulated thereunder.
Subchapter 7. Other Gaming
!i.20.2'10
Other Gambling Allowed Subjec1 to Gaming Plan
Notwithstanding anything else to the contrary herein contained. all gambling lawfully
allowed to exist at any location in the State of California. including but not limited to. any
-federal enclave or Native American reservation contained therein, shall be. and is hereby
declared to be. lawfully conducted in the City of Chula Vista and shall be and is permitted.
All such other gambling, before it may be occur in the City of Chula Vista, shall be conducted
under the auspices of a licensee who has raceived a permit from the city and be conducted
pursuant to the rufes and regulations of the city as may be set forth in the Chula Vista Gaming
Plan, as same may be adopted and amended from time to time by resolution after publiC
heering. The gaming plen shall further define such other gambling if same is reguleted
thereunder.- ~
Presented bY:/) . r ap ,A~t'\t: '"
~;.lCi.A.(l \ (A~__ \
Richard P. Emerson Bruce M. Boogaard
Chief of Police City Attorney
~
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Ordinance 2655
Page 13
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista.
California. this 28th day of November, 1995. by the following vote:
AYES:
Councilmembers:
Alevy, Moot. Rindone. Horton
NAYS:
Counoilmembers:
Padilla
ABSENT:
Councilmembers:
None
ABST AIN:
Councilmembers:
None
~~
Shirle Horton, Mayor
ATTEST:
'-iLJJ4 () ~ f1J
Beverly . Authelet, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO ss.
CITY OF CHULA VISTA
I, Beverly A. Authelet. City Clerk of the City of Chula Vista, California, do hereby certify that
the foregoing Ordinance No. 2655 had its first reading at a regular meeting held on the 21st
day of November. 1995 and its second reading and adoption at a special meeting of said City
Council held on the 28th day of November, 1995.
Executed this 28th day of November, 1995.
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Village Club Card Room ATTACHMENT #4
429 Broadway Avenue, Chula Vista, CA 91910
619/426-4542
January 17, 1996
Chief of police Richard P. Emerson
Chula Vista police Department
276 Fourth Avenue
Chula Vista, CA 91910
Re: Application for modification of Chula vista Municipal Code
as to cardrooms
Dear Chief Emerson:
By letter dated November 13, 1995 to you, I applied for
changes to the Chula vista Ordinance which regulates cardrooms.
since that time, I have met with you, your staff, and other
city staff. We have discussed your concerns and the concerns of
other city staff members. Finally, we have reached a compromise
~hich I understand adequately addresses all concerns.
Enclosed is a table which shows, in regard to the items for
which I requested changes, the 9/92 Chula vista ordinance, my
request, and in the bottom two rows a compromise for the property
where my cardroom is currently located and for a new location
where I could operate a larger cardroom, should I be able to
locate such a lo~ation and move.
This compromise is acceptable to me. However, if there is
any change, I would like the opportunity to reconsider my
application.
If there is any question, please contact me or my attorney,
Michael A. Green.
HARVEY
T
SOUZA
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Minute&
November 21, 1995
Page 15
ATTACHMENT #5
and the prospect that those accounts loaned to would have the prospective of paying the loans back. Wbtll it was
a major account with OIl-going deficits and large deficits it was appropriate to apply those ..feguards. 'That abould
have been identified to Council and he hoped that would never happen again. Council should be apprised and giVtll
options to consider. The reserve funds were for a specific issue. The ,!uarterly financial reports ~ould include
any Degative balance:. and &taWs recommendations to future pro.i.>Ctions. 'That should also be included in the budget
analysis.
Council member Padilla &tated in the auregate the City did not Jose money and the ovenll financial balanceo of the
City were Dot in the red. He felt il was a big dul in some regards because of what it was indicative of. It was
obvious from some of the answers supplied that some of the funds were Dot done so they could be pooled for a
greater rate of retUrn. A oitualion was in place where there was unlimited authority for the manarer to move funds
between accounts. Therefore, the Council was DOl aware of what was roing on and did Dot have the opportunity
to decide how to allocate the funds. II was indicative wh~re the Redevelopment Areocy was COIlcerned of
\IDI'C&SOnably speodinr beyond what was reasonably expected in reveo..... in certain funds. 'That was deficit
spending. The report acknowledged thai there was a problem and il D~ed to be fixed. Therefore, Council was
being asked to look atlak.ing reserve funds to correct the situation. He questiODed what would happen if the City
did Dot have a reserve fund and what the impacl would be on the reoeral fund.
Mr. powell responded thaI the Dexl alternalive would be to ~ a source of funds outside of the City on a loan
basis. Given the Ageocy's fiscal status be did not feel the City would be able to obtain such a loan without the
General Fund as a co-signer, it would be an expensive loan.
Councilmember Padilla stated if the Agency defaulted on the loan the general fund would be responsible for the
loan. There was some exposure to the general fund due to over spending in large accounts in :he Redevelopment
Agency. It could be corrected and be unJerstood wbat was being done and the magnitude of the problem. The
relatioDship of the Redevelopment Agency fiscal picture to the general fund was the re&I problem.
Mayor Horton did Dot feel that inter-;:retation was correct.
Council member Padilla responded that was his OpiniOD. The Council could Dol solve problems until they agreed
what they were. It was important to acknowledge the relationship between the Agene; and geoeral fund and what
the potential impacts were. If it was Dot a problem the item would Dot have been brought forward to Council with
recommended cbanges. He commended Mr. Powell for bringing the item forward to Council. He did DOt
appreciate being put in the position of having 10 lake from a restricted fund to correct a situation that should have
Dever happened.
Councilmember Moot stated Council had been going over the Redevelopment Agency issues for over half the time
be had been on the Council. He understood it the first lime and that it was something that n~ed 10 be corrected.
He also understood that the item before them was a symptom of that same issue. He felt all Council understood
that it D~ed to be corrected and that it was serious. There was I continuing obligation for bonds on Town Centre
I and II of over $1 million/year for 20 years. That created a debt, the economy turned down, and redevelopment
projects dried up. It had to be dealt with and the Council had developed a plan to cIoaI with it and be felt they
D~ed to move on.
RESOLUTION 18074 OFFERED 1lY COUNCll.MEMJlER MOOT, readina of the Iext was wai.ed, passed
and appro.ed 3.2 witb Padilla and Rindone opposed.
[;1 ORDINANCE 2655 AMENDING CHAJ'J'ER 5.20 or THE MUl\1CIPAL CODE TO ALLOW IN
CHULA VISTA ANY FORM OF GUmLING ALLOWED AT ANY OTHER LOCATION \\1THIN TIlE
STATE SUllJECT TO APPROVAL OF AND QUALIDCA TIONS UNDER A GAl'tmLING PLAN ADOFI'ED
1lY RESOLUTION OF THE COUNCll. (firsl readinl!l . It bas come to the altelltion of the City Attorney that
the Slate bas adopted SBlOO which will become effective on and after 1/1/96 and which proports to prohibil cities
from amtllding their eaming ordinanu to expand glming in thai jurisdiction for at least three years. This
prohibition on local control of gaming will probably be extended beyond 1999 if a comprehensive scheme for the
regulation of gaming is allowed in the State. Staff rect"mmends Council place the ordinance on first reading and
sc' ~ule a special meeting for the second reading. ((.1)' Anorney)
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'tr. Boogaard stated ~ere were two proposed ameD~;.1ents to the ordinance before Council. The first r'l>tlldment
would allow the manager and police chief to blw. """,dotor)' input to any glming plan or IJDOZldme"LS to it that
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Page 16
Council would COIlSider. No gaming plan could be considered except after a public bearing and reaiving comments
from the police chief and city mamger. Under the gaming plan it would be mandatory thatlbe cbief of police
would bave veto authority over the permittee. The second change would add text under Section 5.20.010 .imilar
to lbe text for aports book. casino gaming, and video gaming to on-site and oatellite borse and dog wagering. The
ordinance was a provision to prolelCtlbe Home Rule provision of the City to license and regulate gaming and until
a gaming plan was adopted it could not go into effect. Provisions of SBlOO were brought to staff's attention by lbe
current licensee requesting various expansions of the cardroom ordinance to allow them more tables, greater hou....
greater number of playe... per table. and larger wa~es. In order for lbe ordinance to go into e(iect Council would
hve to place it on fi...t reading with a second reading before the end of November so the 30 day referendum period
following the adoption of the ordinance would allow it to become effective prior to 1/1/96. After reviewing lbe
proposed changes with the cardroom licensee. lbey bad asked for a sligbtly less risk amendment to lbe ordinance
in five calegories lbey bad been soliciting changes in. Compromise language stated "The gaming plan would bave
to specifically address lbe subject matter of lbe section and lben, only to lbe exleDt allowed in lbe iamini plan, if
lbe iaming plan was more restrictive than lbese provisions". The City Manager concurred that lbe cbanie was
acceptable and did not pose any ireater risk to lbe City and be concurred. The applicant wanted to add to Section
5.20.010 five things lbe gaming plan should try to address. He did not bave a problem wilb lbe expansion of lbe
list. but wanted the language of Section 5.20.010 to be amended to read "Whicb gaming plan .haI1 contain INCb
regulations as Council deems appropriate including, but not limited to. lbe following elements .....". 'That would
give Council greater aulbority to expand or contract sucb regulations as lbey felt appropriate.
Councilmember "RiDdone questioned if lbe proposal by one of lbe licensees was a place bolder so lbat if a gaming
plan was developed lbose five items would be considered for inclusion.
Mr. Boogaard responded lbatlbe difference between lbeir proposal and bis proposal required a subsequent adoption
of a gaming plan that specifiCJllly aulbori:.ed more playe... per table. Their proposal attempted to enactlbat change
at lbe present time. but it would not become effective until a gaming plan was adopted. The gaming plan could,
if Council wanted. be more restrictive. Under lbeir plan it was an ordinance cbange that allowed lbe expanded
rigbts at the present time, but would not be effective until lbe ga",;ng plan was adopted at a later date. The
proposal delegated aulbority to regulate gaming by a subsequent resolution wbicb could expand lbeir rigbts. It was
a lelCbnical enhancement of bis proposal and reduced lbe argumentlbatlbe licensee's "gbts were enhanced by lbe
ordinance befo.. the effective date of SB I 00.
. Rod Davis. 233 Fourth Avenue. Chula Vista. CA. representing lbe Chula Vista Chamber of Commerce, stated
the business community was concerned witb another run at Home Rule by the State. He felt it was a situation
wbere the State was setting itself up as lbe one and nnly licenser of gaming in lbe State and taking lbe revenues.
The Chamber supported lbe control of gaming by lbe people wbo bad ((' live wilb lbe consequences and would
receive !be benefit. Personally, he preferred not baving to go outside of lbe City in order to iamble.
. Michael A. Green. 535 "H" Street. Chula Vista, CA. representing Village Club Cardroom (Harvey Souza),
stated the languaie submitted was to make sure thatlbey preserved lbeir rigbts. The law stated lbatlbere could be
tlO amendment to an ordinance wbicb would expand gaming. He boped staff would return on 12/19 wilb a gamini
plan for Council review so lbey could bave somethini in place so lbey could be certain lbey avoided any problem
wilb SBloo as it regarded cardroom.
Councilmember Rindone questioned if action by Council at that time would be an ordinance and. lberefore, require
a 30 referendum period before becoming effective.
Mr. Boogaanl responded lbatunder the aulbority oflbe ordinance lbe Council would adopt a resolution institutini
a gaming plan and would be able to amend that witb a resolution. Any rigbts granted lbe third week in December
would be done by a resolution. but be was uncertain lbat met with lbe scbedule as set forth by lbe Police Chief.
Mr. Goss stated lbe present cardroom ordinance specifically limited lbe number of tables and questioned if lbe
Dumber of units would be limited in the future nr based upon lbe present formula.
Mr. Boogaanl replied lbat any amendment or additional number of units would be set forth in lbe iamini plan.
The Dumber of tables could be expanded by lbe resolution in lbe gaming plan.
Couucilmember Padilla stated be was not comfortable wilb any ordinance lbat expanoed gaming within '~e City.
He UDderstood Mr. Green and b' j client's perspeaives in terms of business and competition. It Wa! clear lbat
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Page 17
SB 100 would limit competitioo. He further understood the mechanism that would be employed in order 10 preserve
cootrol for the next three y..,.. and possibly beyood 00 a Slatewide level if the Slate approved gaming or expanded
gaming. He would oot be surprised 10 ..,. moves by the Slate 10 remove the cities land use authority and other
authority cities IwI regarding gaming establishments. He was very coocerned regarding the potelltial of having the
Cicy tie it', ecooomic bcpes 10 gaming or gambling because be would oot support the eXpaD6ioo of cardrooms.
casino gambling, video gambling, etc. at any time. He did..,. the utility of the issue regardinj! Home Rule versus
the Slate taking the local authority away. In cases of major expansioos of gaming witbio the Slate be que&tiooed
if Council would support language, if a measure was preseoted 10 the citizens, a COOCUrT'Ollt balJot questioned asking
the public if they wanted gaming expanded witbio the City. That would allow for Home Rule and also let the
citizens affected by major expansioll6 of gaming 10 decide what they wanted for their communicy.
Counci1member A1evy &tated be re&peCted Counci1member Padilla', coocerDS. He supported the item in order 10
maintain Home Rule. Whether any of them were 00 the Council at the time, the issue of a major casino in Cbula
Vi&ta, would require public di6ClI6Sions and bearings and would Dot be aulOmatically passed.
Mayor Hortoo &tated DO Councilmember was supporting a Las Vegas type of atmospbere for Cbula Viola.
Councilmember Moot 'lated gaming was the lop issue at the Lague of California Cities meeting. There was 00
doubl al a State level thaI they wanted 10 bave IOtal cootrol and revenues geoerated. He fell there would be a great
debate as 10 wbether the State would adopt casino gambling. It was ooly prudeot for the City 10 Dot leave those
decisioos in the bands of other people. The Council oeeded 10 protecl their abilicy 10 cootrol what was good for
the Cily.
CounciJmember Padilla ,tated if the Slate was going 10 take cootrol from local jurisdictioll6 they were going 10 do
it and notbiog was going 10 prevent it from bappening. By taking actioo the Council was Dot absolutely &eCu-iDg
local cootrol over gaming issues. ID terms of SBlOO, Council was doing what they IwIIO do, bUI it would DOl &tOp
the Slate from taking action. He would feel more comfortable wilb language thaI &tated if there was legislation
passed that approved wide.spread gaming that it ge> '0 the vote~ of the Cicy and not just require three votes by lbe
Council.
Mr. Boogaard SlateJ if Council wanled greater control they could require a super-majoricy vote of Council, multiple
public buriDgs, et<:. He recommended Council amend the proposed ordinance b). changing Section 5.20.001
10 rcad in the fir.;t paragraph "Which gaming plan shall conlain such regulations as the Council deems
appropria~ including, but not limited to, the follo"ing 12 items: 1) type; of gaming allowed, including but
not limited to card games, on-site horse and dog wagering, sports book, casino games, .,ideo gambling, etc.;
2) hour.; and days of operations; 3) location of gaming; 4) auditing of gaming establishments; 5) licensing fees;
6) maximum number of player.; per table; 7) bets and wager.; penniued; 8) charges for gaming; 9) Iicensbg,
including number of licensees and consolidation; 10) drinking of the intoxicating beverages; 11) maximum
number of tables on premises; and 12) eVery aspect or operation of gaming establishments". Amend Section
5.20.23010 include the language in his supplemental memo of 11117 dealing with on-site and sat.eJli~ horse
and dog wagering. Amend Section 5.20.110, 120, ISO, 180, and 190 as set forth on the information
distributed to Council incorporating the proposed consensus language that the City and eUsting licensee
IIinoed upon.
ORDINANCE 2655, AS AMENDED BY THE CITY ATfORNEY, PLACED ON FJRST READING BY
COUNCn.MEMBER ALEVY, reading of lhe text ,,'as ...aived, passed and approved 4-1 with Padilla opposed.
Mr. Boogaard &tated a 5pClCial meding would be required for lbe second reading of the ordinaDc:e.
Mayor Horton flated a 5pClCial meeting would be called DO 11128/95 at 6:00 p.m. in the Council Cbambe~ in order
10 coosider the second reading of the ordinance.
ITEMS PULLED FROM THE CONSENT CALENDAR
Items pulled: Done. The minutes will renect the flublisbed agenda order.
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MINUTES OF A SPECIAL MEETING OF TIlE CITY COUNCn..
OF TIlE CITY OF CHULA VISTA
Tuesd3y. November 28, 1995
6:05p.m.
Council Chamben;
Public Services Building
CALL TO ORDER
I. ROLL CALL:
PRESENT:
Councilmembers Al.vy. Moot. padilla, RiDdOlle IIld Mayor HorIOIl
AlSO PRESENT:
John D. Goss, City Manag.r; Bruce M. Boogaard. City AltOnI.y; and Beverly
A. Aulb.lel, City Cleric
2. PLEDGE OF ...(.LEGIANCE TO TIlE FLAG. SILENT PRAYER
BUSINESS
3. ORDP<ANCE 2655 AMENDING CHAFfER 5.20 OF TIlE MUJl.1ClPAL CODE TO ALLOW IN
CHULA VISTA AJo.'Y FORM OF GA~mLING ALLOWED AT AJo.'Y OTIlER LOCATION WITHIN TIlE
ST ATE SUBJECT TO APPROVAL OF AJo."D QUALIDCA TIONS UNDER A GA~mLING PLAN ADOPTED
BY RESOLUTION OF TIlE com;cn.. (second read;"" and adootion) - 1\ hat come to lb. attwtioD of the City
Attom.y that the State bas adopt<<! SBlOO whicb will beGcme .ffe.:tive 00 IIld after 1/1/96 IIld whicb proports to
prohibit citie.. from au:>eDdil:g th.ir g.ming ordinance to expand g.ming in th.t jurisdiction for at least three years.
This prohibition on local control of g.ming will prob.bly be exlellded beyond 1999 if a comprehensive scb.me for
.he regul.tion of faming is allowed in the State. Staff recommend. Council piau the ordinaDce on secoDd reading
and adoption. (City Attorn.y)
ColII>Cilmember Moo! stated it wit his und.rsLlDding that lbe gaming pllll would be broufbt bad: to Council in
di ffc:rent stafos-
Richard Emerson, Chief of Police. responded that lbere was . desire to bav. the laming pllll cardroom compon..,t
brougblto Council before the ..,d of the year. Staff would be looking at that, but were uncertain that it could be
compl.ted in that sbort of a time frame. No olber portiOD of the gaming pllll would be brougbt forward at that
time.
Co""cilmember Moot slated that .v.rything would theD remain status quo for lbe fo.........bl. furore except for some
cbODges to tbe existing cardrooms in Cbula Vista.
Chief Emerson respoodod that was correct IIld th.re would be public bearings on lIlythinll that was brougbt forv.ani
to Council for consideration.
ORDINANCE 1655 PLACED ON SECOl'o"D READING AND ADOPTION BY COUNCn..ME~mER ALEV\',
reading of the text was waived, passed and approved 4-1 with Padilla opposed.
ORAL COM~n1NICATIONS
None
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RA":>lILL D HUBBARD-
Dec: to his friends-is a nun
who m.ke. no little plam
and cU.peme. money with
an unstinting hand. After
amassing a forrunr in auto-
mobile glass manufactUring,
Hubbud wa. able to indulge
a lifelong passion for horse
:acing ~e spent S20 million
in 1991 renovating Ingle-
wood's Hollywood Park
Racetrack. Three ~an Ialer
he added a S25-million
casino. the first ev.r located
at a track. Its mammoth
neon Slgn, with "CASlSO"
speDed out in 3D-foot lerrers,
is ,'isible from an altitude
of four miles.
The complex includes
karaoke suites, ~e re.uu-
rants, a massage room, a
barnenhop, and large, dosed-
circwt television screeru that
~ow cud playe" to wager
at a."lY track in California or
Hong Kong. With 60,000
square feet of floor space
and roughly 150 uble.. the
casino u the third w gost in
the sute, one of the best
managed, and easily the
most ecurnenical. Its popu-
lar Asian games, for WWlce,
are called California Casino
Games and are played in a
room "ith ethnically neutral
an dcco decor wtead of the
traditional red walls and
lucky dragons.
Hubbard, CEO of HoUy-
'wood Park Opmting Com-
pany, has ~ hopes that the
publicly traded corporation
could become the Wal-Mart
of California pnbling ",th a network of casinos statewide. "We
ha\~ Compton_he Crystal Park Casino-under construc-
tion:' he ~,. "Th= "", a VOte of the city council in Stockton
..ppro' 'nO' " new card-dub ordinoru:e there. So we'vc more than
11m OUT h.ulili full:'
R.ce" .ck clubs are the current fasruon: The Sanu ^",U
-.rack m Arc.dJ.> is supporon~ a group of investO" planning a
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ATTACHMENT #6
",,,n,, in ne,rb\' Irw1Ildale, and Golden Gate FlCJ6 in Alban'
has r -CClved permis.ion to open. dub. At the begmrung of m<
yw. Califc'llla had 251 clubs and 5,429 uble< eith.. in use or
plarned. According to Gaming and W.gmng Bwinw, wag':" a'
these clubs amount to $8.5 billion, or 91 percent of a~
earn-room bets in the country. Cahforni. ranks th,rd-
behind only Nevada and N~ Je"ey-in gammg proceeis
with estimated annual wagers of $12.5 billion exclus:vt c'
Indan gaming.
But unlike Nevada and New Jersey, Caliform. r..,
no statewide gaming commission. Some local cud-rocr.-.
ordinances don't require revenue audits, and none re,="
the clubs to keep track of wagm. And that. accorcUr.g to
law enforcement, has opened the door to money Iaundmng.
embewement, and loan sharking. much of it tied to As'..n-
based aime S)'lldicates knOVo'l1 as triad>
"/ve the clubs J.undnes' There's no doubt .bout ]t," "','
sure Attorney General Daniel E. Lungren."The va:u"rr:
mated by alack of proper ovc"ight u a tremendous sedu::.or.
for cnminal activlt)' bec.use [ga.-nblingJ in\'oJvc. cash."
Adds SteVC TeWano of the AG's ollice, "Califorlll. ca:c
rooms ha\'C been identiJied by at least tw-o nation.! sources-
the Justice Departmem and the U.S. Treasury Departrner.t\
fmancial Cnmes Enforcemem Net\\-ork-as the best oppor.
runity to launder money in the United St.ltes. Lets JUSt 50' t."e
opportunity U huge. But W'C don't know the su, of the poo.
lem because we don't ha,'C the agen~ to teD us."
SUte prosecuto" have been building a case for I!lC"''''<C
regulation since the earl)' 1980s. when the Ciucago cnr.'\e
syndicate esrabhshed a be.chhead at the Cahiorni. Be]:
Card Club in the city oi BeD. S..'en indJ,iduaIs linked to ~"'
s;"dJcate were indJmd in 1984 by a federal grand jury ane
four \VCre convicted of racketeering. In 1987, 14 mdJ"Olw,
associated \vith the Garden Clty Cud Club in Sa."l Jose were
indicted for skimming approximately $4 million in club
revenues over an eight.year penod beginning in 1977. .'Jl
ev'Cnrually ple.ded guilty or no contest to the charges. Ever.
without beneSt of an ove"ight commISSion, prosecuto" h.,,'.
indicted individuals recently at a half-dozen clubs in I.~.
Angeles, Alameda, and Sanu Clan Counties.
The most significant case inv-oh~d the com~ction of four
men .in 1990 for laundering S12 milhon h drug profits
by investing in the Bicycle Club Casino. located in Bell
Gardens. V.S. V K,amt, (SD Fla.. No. 879-CR-NCIl.).
Through asset seizure and forfeiture, the U.S. Marshals
Service ended up controlling 36 percent of the club and
operating it as a truStee. But the marshals couldn't prcv'ent
money laundering and Joan sharking from going on under
their noses by indJ\iduals allegedly tied to the Wo Hop To.
one of the Hong Kong tri.d. that dominate the annual
S5-bilhon trade in "China white" heroin. A CO-Owner of
the club, George G. Hardie ~~ Las Vega., wos IndICted
in the underl),ng schemes last Jun. .
C'&l.lFOIl.N',& ".&wyEIl. 043 01C::("'1;' Il. I "H
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e"~,, '. .,,;7/f"";~'~,tii~'IY; ;"? . "'TO.' ':"f'. '~~ 2~i?~<' ';: ,
. Seeking legi~cy for tli~' d;inos;:manr of the .targ;;st G2:den> and Artichoke Joc\ in San Bruno, most ~ roomsh
owners J'ublically .upportLU!'8r.n'~' 'pu,h for a g-..p>ing had just three or four ubles. "When I wa.s growing up in
'_. . comrni>,io,n, ';The card clubs:!1~ve,.b~eri.m,o!e,oI,lell Sout},crn Ca1ifornia,","Y' .Lung.;n, '.'1 ~ought they were ,
._ . 'i?deperid<;nt.:;~btc to do. 1_ wo.!'~ FY. ~yth!ng they want, b~t ~m,?m~ard~popstOres. rd. seen.ther:' by ~e..side~fthe freeo,>.-.y,: ,
.' .. c1~'$3)'l H_01lywood Park', ~ubbard. ~'Y'e'yeprobab}Y ~l: ilnd I'd D~ paid ~ ~tioo.')'.. ''\';":.':, >~:.;.' ;'
'. Ibe leadirig p~p?nOnr ofl~tion fo<:the h.tlhree yean':... . All that began to. change in 1 ~g.\:wbeO Ibe JIuntingto~>
Without h=ed regulation, even the best card-~Iub Park Casino anempted to inttoduce a gune called Tc,,",
operaton concede they can't keep money launderen ,?ut. Hold'em, a wriery of SOld poker. A municipal ordinance per- .
Hollywood Park', director of matUring, Michael Albert, was miat<! only clraw poker and declared all other games iIleg>!.
asked what would pre'Yent someone from wa1Jcing in the <lpor The a.sino soughr an injunction, arguing that Tcx>s Hold'cm
with $100,000 in drug profit>, only to em~ a shon lime was really a fonn of clraw poker.
latcr with a large and perfocdy legal check that eould be The club lost, but gambling consultant R.ose toOk up the
traced DO fUrther? "Nothing." say> Alben.. "You can't SlOp cause in P.,.., PI")'<' !T',S',.;n. and later as an expert witness in
IOmcthingbu r;l>aL':.' .; _ , (.' do.e~s of~ther C?~t cases. R.os~conceded that Te=
._ .,_,.."..'" _ ..." ".~.:." ~; Holdemwasa.ven>onpfstUdpokcrand~~thar
THE NATION HAS EXPE~IENCED TH~EE G~EAT. WAVES thea".om.ey general had dete~ed in.1947. thar .II scud
oflegalized gambling. each separated by a generation. The fint poker games ~ illegal under section 330. He contended,
begon in the colonW period and lasted roughly into the 1820.. however, that the ~gUIa= in 1885 banned only a single,
The ~orid began aft<:r the CMI'w.lr and survived into the lint specific game-srud-hor'se poker, which DO one could
dccadt of the present century. Both were ~ back because of remember how to pJ.y. In Rose', view, all other forms ofmd
-widespread aiJniN]iry at the casinos and the rampant bribery poker mwt be legal, even if the J.v.nuken a century bef"rc
of public officials. We are now experiencing the lhird "''lVC. had never heard of thern.
"Cambling always remaim illegal as long as historical The argument slowly gained ground. In 1987 a superior
-memoryla.sts:.:.sa}'S!. Nebel! Rose.,.a profess,?r atWhittie:r ~ourt judge per mined stud-poker gunes in LOI Angele,
Law Scb.o~l.!i> ~Angele(!,,!>o,~!'.r:su1.?.f~~.~q':lI1ing .Cs:)\,:nry.H'!~ti"gt."l'~~k.'=l~b5=.rp. v City .f H."lingum
NQ-c~' '.})It'.'Y.':ID .America; ': "..., ,. ;" ". .'.' ."'. ... . ". . ,,"' '. P.,k, No. C550991.
F'c,~ . 'toncal m~m.ory lasts; ;;..'<.! ..~ ..--",,,, .,<,,,. ._.....'~ '.,.'" ,..,'_' .,,-;_'."~'!'" - Later. Ibe First Appel-
'.'P..__-..:t. . ut70yean:";~.. . ,'~A~.~:~~"- I i;ff=-:.~..r~~'.;,' "-'. ,. .E.;....:.;J-::.;;~ late District in San
~.i?~ ,:;,Ca1i{orusa wis a '""m_ . ,~,'~:_'.:- I . - ~:,~.(;..t..,;t ..' .--; .it1~.: Francisco ruled that the
~_~q. _~. . .o--n '.,_.....~r,.. j . ,.l:......~.~ 1'1"... .Jt-
".""'-..'l>ler\ panelise in th~ cbys ":f'~;':";',:' . . .~ '--"'(:;',;(tdi~;. ".:::'-."",-,' I''; staCUtory ban on ,cud-
~-:"7' . the B= F1ag R~~liC. '. _ :~::- ..~ " "". . _. eF.. o"t~~~~ borse poker ~..not
,,~......" he sta~e C,?nSOtunoD. ';". .~ .' ".-:'~. < 'i'4'~,!'i!:~~"" a blanket prohibloon
~ ~a,812!0~age .lo.~es, ::-;;:: ~_. ,_..._'~.. Z:~~, ;..:: '-. _~. . 7--'(~>':f' Tabbctls II V"" Dr ~"'F
,#.~ , t'tv.!~"i!-'1tUl :1877.7 ~. ._-v!r>1?i~., ";.r.;:~J;;ZJ.'.. ~. ~~ (1990) 22.2 CA3d 389. .
:~_ .~1."gUla~e prohil>~ ,~,. .~&. P'"" .......:;:-i;,;~ -:'i!4:D.:J<. ~~. That case became the
rea' :.'banking . Sames' '.. ;-"f\':':;~"'~~-;.:t"'--~' ,,,.' . :.... ~""'j::' . . - '~, w':"- wt evencually
s.. ..,. . p " ~~~. -' .--':'W" ~ ~ . ,.I..:~..::: -. ....~ 1ir""6~ .
1~yed with ?rds an~~~", ..;.~...:.p.~-':;;~~~'.. .~'~ .~; 15.. .'":~ .;':;~~r,S', IT!;...! the <?anton..e
~.J'lu~../a~. monre, <.,.~.~~...;~:~ J' =}i{..;,~~~.'-~ ..~.:..~.\ game of P" gow-
cJer:e. ~quenet, rouge J2.~:;,/n;~~:!n.:.,,'f1f{@;J:ffJ::~'it'.Ji. '~'J.f> lnditionalJ) played ""rh
"""-0. t nou-e, and rondo. See '~-"!t",.,,,$',c~~.'i,,,,,,,,,"~~:i~" ''''" ~""._;;'. domino-like tiles-..,<'
:;fl'i en C ~330. In 1885 "ft;:::k~~~~~"'Zi&'~:.!-';=:;;>,!i"~~~~'~ shifted the banl. back
'''':-='.:;, t outlawed stud-hone '""-,y,.....~~r;<.;.:.. .",*;;~ ~f."'~~ .. .-';~:l,r ~ ~ r.'~ to the otar.e T -',,-cure.
;a.il"jo.~ k.er, ~ Un-=. ~ ';;.;fiJ'..;w,~'='-~l'. "'.. ..~-.;,'k;~ ,--:,'M;b'~' "You had"d;;. fac-
~. ;.d.,~-hili:.., twenty-one, ::;.,,';.r.;';-~~',. . ." .'. ,",~f;'~~..'t:~~~~.;?t:"" tions that cancclled
~~~ ,.. _ ~"p'oa.y.. :.. . . '.?:_'~""' ,,; .. ;ift~gi!~~i(ti~~;,iV'<' eaeb other out when
~ _ i:J!l]941.,~.state <nun ,:,:~'.~*:i&. ,,"" l' !I~~':{~$''t;~~"''''',~'t<.4,'-)-;-''' (hey a-i.ed to lobby
~,,;;.,(';, appeal uph~ doe right. ,....' ~. " ' "'1' , "t '*,,<q(. the Leglllature," SO)'!
";"~~_., '.' oAf:*' ..-do. .~ ~,l.
~~.. _ f local governmenu to ,:::. ."~'.'r,'. ~." " p';;'.: Rote. "The big club!
control card games not ...,..., ... 'C_. . .'..' ". .;. .r.'........ v.oan=dtheAsian games,
spccincally prohibited by section .~30. ~ Owl> .v'SuptMr the smaI1 clu~ just: wanted to play cards, and law enforcement
Cou1l. ~ CA2d 131. But for A..-,No.. a.sino ownc:rs c:Onzinued didn'l want ap.y gan1bling. Basically, they fought back an~
to offer ooly draw poker. and panguingue, a rummy-Iikc forth over seetion 330 during the 1980.. and tben law
card game M>m the Philippines. ~~th the exception of a few enforcement jl!'l gave up. The clubs got together and pwhed
_ supermarket-iized club" such&!, ~e.,!'Iorroandie c::Iub. ~ through the ~til)g ofsrud-bol'SC poker in ~991'"
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~ECE"'E" ~n 44 ~"L"O"NIA ....W't~~. .
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bi:":3iJ:~;'.7,;':;;:Jfil}:,':'..<..~.r~~:;:;;'~l;;.1.-{..~~4~'~l:.i:~JZ~::"L;'" .~~X'1 ;;:~~:~~~ :w":.~'f<Jf!.:~~: 'i1~
j ~~/~~
B'~ IHt. IhL.~v"-""1 ~......,I'I'''.i_
THE UNITED STATES."
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Suddenly it W2.! boom times for the c~rd-room owners.
"1 began getting phone calli from e...erybody invol....d with the
dubs," Rose Y)'S. "Thiry'd say, 'You mean we C." pJ.y ."y
gam" wt's not on the list" I said yes. It's aM'2)" amazed me
how you can p"y miI1ions of dollan to build a facility ."d net
know what you con do i1,.ide it."
For O\l\'Tlers. the timing eouldn't have been better. Proposi-
tion 13 taX limitations had been followed by ~ .........e offactory
closings in the indwtrio1 belt south of Los Angeles. Card
clubs appeared to answer a cash-sa-apped cit)' councils prayers
for income. "Getting (the council's] commianent is ." old
game the card clubs play v.ry skillfully," says Dr. Dur."d
J~cobs, a psychologist aflili~ted wirh Loma Linda University
Medical School who studies gambling addiction and
its causes. "They form close ~ffili~tions with a number of
councihnembers who an: desperate for more income without
nising wces.91
New casinos soon opened in the Los Angeles suburbs of
Bell, Comme~e, and Bell Gardens, where fees ."d taXes paid
by the 170-tabJe Blirycle Club Casino accounted for more thm
half the municipal budget. The new clubs introdllced hybnd
games such as California Blackjack---the winning h."d ~dded
up to 22 rather than the forbidden 21. And with ." ey< to the
growing Asi." clientele, the ovme" tranSformed panguingue
int" Super p." 9. a fast-paced. high-stakes casino game, In pai
gow. pOts of $70.000 are not unknown, and ~. many as
25 hand! can be played in ." hour. ki." games at the Bicycle
Club soon occupied 20 percent of the space ."d r<ponedly
;accounted for 60 percent of the profits.
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If A STAlE POiTS NO SPEED LIMITS ON ITS HIGHWAYS,
some people cbve ",cklessly; if it permits gambling, crime
occurs. According to . 1992 report by then-S~n Diego
County district .ttorney Edwin L. Miller Jr., the introduction
of high-stakes pai gow games soon .ttracted the .tt.ntion of
the main Hong Kong-bas.d tri.d!: the Wo Hop To, the Chiu
Chao, the 14K. and the BIg Four, as well as similar groups
bas.d in Taiwan.
In the mid-1980s. Chu Kong- Yin, aka Alfred Chu, took
over the pai gow concession .t the Key Club in Em.ryvill..
just nonh of Oakland. "Th. Key was wh.re it start.d," says
S.rg.."t Harry Hu, an Asi~n crim. inv.stigator with the
Oakl."d Police Departm.nt. "Chu w.s a Red Pol~.n
enforce.--for the Wo Hop To. They ",auit.d a bunch of
guY' from Oakland and trained th.m to be dealers and 10."
sharks:' In the Bay ~, the Wo Hop To lOon displa.ed the
W.h Ching gang as 10c~1 crim. lord, l.ading 10 a scrics
of murd.rs ."d ",taliations th~t .",.nded into the 19905.
Whil. the Wo Hop To worked North.rn California,
the Wah Ching evolved into the "most de....lop.d kian crim-
inal group on the W.st Co~st" with control of "most
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L. J. OM ls 0 notionoUy recDfnlz.d invutirotiYe report.r bosed in
~NewYorlt. - <
.' - .~ ....-: ;.-~
:'';''~. . ~ I ~&S:~;
.:.:.,.
:.....,.. ~ .
.. ,
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of the I.gal .nd
ill.gal pai gow
gambling ~t the
c.rd clubs in
the Los Ang.l.s
area," according
to the $entenc...
ing m.morandum
fil.d by the U.S.
attorney in Los
Ang.l.s for a
convicted loan-
sh~rk op.rator .t
the Bicycl. Club.
Oth.r int.resting individuals tri.d their hand .t owning a
club. C.lifornia lir.wor'" king W. Patrick Moriarty and
Frank J. S~nsone--~ floor manag.r of the MGM Grand In
La. V.gas who h~d tiel to the Balistri.ri crime f.m.iJ~. of
Milwauk..-opened the $20-million Commerce Clur
Casino, the .tateS larg.St card room, in 1983. Wltlun s....."
we."', the club clos.d b.cause of insolv.ncy ."d all.g.d
poor business practic.s. Though the club reop.n.d und.r
n.w own."hip, Moriarty .nd Sanson. w.re indiCted for
bribing three Comm.rc. officials to obtain their operaon.
lic.ns.. Moriarty ple~d.d guilty to wire fraud, Sanson. .......1
con\;Cted of mail fraud, ."d the officials r,:.d.d guJrv to
"brib.ry-related charges."
Th. mounong numb.r of cases prompt.d the L....;:.."'''
to pass the only Rc.nt gambling conlTol bill, the Garru~"
R.gistration ACt of 1984 (Bus &: P C ~198()().t s.q). Th. an
p.rmits the AG', offic. to ch.ck the b.ckground of lic.ns.
.pplic",ts, examine boo"', inspeCt premi>es, and s.iz. ill.gal
.quipm.nt. But jurisdiction is divid.d betwe.n 10co1 police
and the attorn.y g.n.ro1's G.ming R.gistration Program.
which has . staff of three to process card-room ~pplicacor~
within the required 18O-day p.riod.
"Th.re are no stat. laws to ov.".e how the club. ;,ud;t
th.ir .ccounts,."d most ofth.local ag.ncies don't ha.... those
pro\isions:' saY' D.bbi. Wiley, form.r manager of the re~'-
tration unit. "Basically, the clubs are ~ble to run amok. If you
Jook.t the way they are regulated, it's terribl..It's .jok."
Org~niz.d crime laugh.d hard.st. In 1988 the K...
Club'. Alfred Chu was arrest.d and convicted on imrrug"',
tion vjobtions. H. was "'pI.c.d by Chong Bing-K.un..
aka P.t.r Chong, anoth.r Wo Hop To m.mb.r from Hong
Kong. In 1990 Kam Kwong Fung, a busin.ssman with
alleged lics 10 IWO Hong Kong triads, and his .....if.
attempt.d 10 bribe a Departm.nt of Justic. sp.cio1 ag.nt to
help ..cur. an op.rating lic.ns. for Emeryvilles King Mida.l
Club. Fung fl.d 10 Hong Kong; his wife ~ ~pp"thend.c
-~nd pl.ad.d guilty to brib.ry.
In No..mber 1991 the U.S. $enat.'s Committ.. on Go\'
.rom.nul Affairs found ih~t .:the ~o Hop To is .ctiv. In
. . ::~;,~.~~:,: ';;. . Continued on p&&t 83
.~, ~'~. :.7. :~~~:. ."~ ~:~ :;:: '... '-.
CN,'O~NI,,\tAW'" ~ 4S CEC(I'1I!EJ. ,..~
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Fast Shuffle
~gnued from pale 4S
many of the 'Iegal' card clubs in
Emeryville. S.n Bruno. and S.n Jo,e."
Since then. special police task force has
sartered the Wo', B.y !.Ie. operations.
but no one in bw enforcement beli~
m memben luve gone very far. In 1993
an Asian games contneror .t the Bicycle
Oub Casino named HoIlman Cheung.
who allegedly has ties to the Wo Hop To.
..... eonviered of running . loan-sharking
operation .t the club. This year Bicycle
Club C.sino co-ownct H.rdie was
indicted for money I.undering. f.cili-
!:lting . drug tranSaction. and Wcimming
SJ I million with Cheung's assistance.
"Thcte are .11 kind, of ways to
K:un or launder money in . card-room
operation:' say, Wlley. "If you can think
of fwe. there are prob.bly 10 more."
STATE AND fEDERAL LAW
en!orcement .gents contend the possi-
bilities for crime .t the clubs are almosr
limitless. For instance. according to .
meriH", deputy affidavit 6.Ied in 1988 for
a search warranr .t the California B.JJ
Club. investigaton found imbalances .t
rhe cashier's cage. relatives or consultants
on the p.yroll who p.rformed no work,
mclts of wonhless checlts cashed for club
....,Cate<. and an employe. who salted
drop boxes with eXtra chips to inllate
table I"C\'Cnue<. The affidavit alleged the
club included. phantom p.i gow
d.partm.nt cre.ted by managem.nt in
1986 to skim profits. Partly as . result of
rhe investigations. the Bell was closed
and reopened as the Regency Card
Club .nd C.sino. In 1992 the state
Department of Justice discovered the
new owner hod fled the country with
money stolen from the club. and it was
dosed .gain after extensive litigation.
The most lucr.tive sc.ms involve
Ibe cashier's cage. At many clubs, the
cages operate as fin.nci.1 institu-
Con, th.t conduct c.sh u.nsaClions,
accept money for d.posit. cash checlts.
extend credit, make wire transfers,
and rent uf.-deposit box... These
acrivities .re nominally governed by
the feder2l Bank Se=~. Aer (31 USC
S5312(.)(2\(U)). but its provisions are
JIOt unifonnly cnf,!rced.
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If .Icimming is ezy. laundering mOney
is . snap. The clubs ha.... little opportuc
nity to monitor cash flow because gam-
bl.rs b.r .g.inst e.ch oth.r. not the
house. "Let me sketch out how simple
[laundering] is." Lungren says. "Some-
one comes in with perh.ps S 1 0,000.
plays the game. and 10'.' S500 inten-
tionally. He comes b.ck to the cashier
with S9.:;00 and gets. receipt for his
g.me earnings. He's convened th.t
money from dirty to clean.
"Have you ever seen one of those
receipts?" aslts Lungren, "It would prob-
ably have nothing on it except the guy',
tint name and . brief de<cription. 'Mal.
C.ucasi.n, 35 years of .g.: Boom.
There', no way you're going to identify
",mebody that way,"
Und.r the f.d.r2l money-laundering
statue". card clubs are required to repon
tranSactions ofSlO,OOO or more (see IRC
~60501). If on individu.l m.kes 0
series of smaller transactions-called
strucruring-th. club is required to 6.1. .
suspIcious tranSaction "'pon. But in the
.bs.nc. of o....rsight. . complicit or negli-
gent management can fail to record such
tranSactions, Moreo....r. f.deral law does
not regard chips as mone.,.; if. manager
or car.ful launderer convertS cash into
chips and d.posit> th.m at the cage. no
report is required. The owner of the
cage .ccount will owe wces-me COSt of
doing busin...-when h. "ithdriws his
alleg.d winnings.
One of the most retont scams makes
use of automated credit authoriza-
tions. Crimin.ls using Stolen credit
cards or .ccount nwnben forgo checlts
.nd d.posit them in the cardholder's
.ccount. "Card comp.nies credit
an account when a payment arrives,
without waiting for the chock to clear:'
"YS Lee Waggoner. . U.S. Secret Service
ag.nt in the Santa 1Ir.. ollice. "So (the
criminals] send in 'booster checb: then
go down to the club. insert the card in
one of the [Comm-Check] machines,
and talce the check to the ashiet's win-
dow. They might hove 10 cards they
pby to the tune of S35.000 . pop. Then
they either toss the cards or declare
b.nkruptcy. If we foUow this trail. we
could prob.bly go d..p into why card
clubs .xist."
"There are certain clubs in Southern
Californi. th.t always come to pc' ce
attention in ter IS o{Joan Wrl<m. money
- 1/ # S 3 - ~
q../-(,Y
bundaing. and follow-borne robb.ri.....
s:rys Sergeant BiD Pari< of the Los Ang.l",
Police Depanrn.nt's Asian Crimes 111.......
tiguion secnon. "Asian CTiminaJs an
interested in Californi. bec.use the"
are card clubs in Califomi2-th. cnrru-
nds tuve been here ever since the c:ub~
e<tabfuh.d themselves."
Gaming coruulunt Rose. hcwc:vr-
remains skeptical that a crime w~....t'
existS, "The [.gents] walk in on tce
Asian games-where there', . tr.men-
dous amount of money on the t4bic.
there 's dic~d they szy. "VIhar.v.r It
is. it', illegal: " Rose says. "I would b,
wary .bout saying that the clubs hue.
crim. problem,"
"What the attorney gcner.al ard
other critia do is go back many, n=,
years to find their exampl...... so,' 1Ir.d\
Schneiderman. in-house counsel .t the
Commerce Casino, "We haY<: . cum-no\'
tracking and reponing system tb t ".
b.lieve is unp.ralleled in the ,u"
W. track any convenion of chip 111:0
currency. we =ly issue checlts. ..nO tr.e
city's .ccounting firm has UIlantlo'"".:
access to oU!' age."
"We just h.d the [State] D.p.."""'.",
of Justice in here. raking. loc., "
our internal controls, policle~, ar.c
procedures." ,.ys Rick Col., .un.
g.neral m.nager of Hollywood p.,,,
C.sino. "They were quite pl....o
with what they found, It ,.em.d to
nis. their cC'onf'Orl level. if you "ill"
But the clubs spe.k with mix.d
voiCe<. "If the law isn't .d""uat., that.,
the Iaw's problern," says Harry RJcha.-d.
.xecuti.... .dministnti.... ollicer and f.d-
.r2l trUStee of the Bicycl. Oub Cas1110
"If the law says I only b.v. to take
names ofpeopl. in S10.OOO tnroaccor.s.
th.n thot'S wh.t ..... do. If it says I don.'
hove to do it, ..... don't:'
LUNGREN. ELECTED TO OFFICE IN
No....mber 1990, was .latecom.r to the
antigambling c.use. During his .un-
paign he W3S the recipient of more than
SIO.OOO in contributions from the
Nev.d. gambling industry. inc]udir..
S5.000 each from the Nevada Reso"
Association .nd Circus Circu,. Soor.
aft.rward h. began to w:.m against the
dang.n of gambling closer to home. "]
did lIOt support . commisoicin in my
6", yeOt bec.use I thougbt it would
only enh.nce the ~tlr.ctiv.n.:, of
CA.LIFC..~r',lIl\ L.I\WYE" .83 OICI~IE" '''5
The Road to Commercial
Real Estate Starts Here.
Every month, the California Real Estate
Journal gives you more than Just the major
real estate news stories. You also let:
--....".:;..
-"'"
--t .~..~
v,':R'
.~'
~:::-:--:'-::=~.~:'.....-'::'. :
. The moS1 irKleplt1 ~ of !he commercial real
esta1.f' rnch.rs1J)' in the $Ulte.
. l..All'fnmia Tran~Qrl RelXll"L. . sea:>nd sec'\.l()n prtMCllng
ttle most extens~ IIStJreS in the state on c:ommeroal
lease,..1e ,,"d firwcaJ tra'1$lCtiClrl$, ~ v&\
Corrmelt:ial ~"Y foreclosureS.
. Annual area up:lates on !he SIBle's n'I."'fO' merl<e\>.
. InvestigotNe focvses 10 help kaep)<l\J ~ on
chlri'~ trends in \tie ~
. ~ briefs on \tie people, ~ WM!n\S ",\tie real est8le CX)I'IVTlU!liIy,
. C':P1lifn~i" S~I~. . QU8l'tert)' iwide to rnar'ti of the b\..I$ineues W5e'MO!S
..-..,lo:>le 10 help 'fOIJ.
Callfomla real estate profesllonals know they let more for
thai, money when they aubacrlbe to the
Rill'fsrmlouRNAlld
rOI subscription Inlo""atlon, cell (2:L3) 229.541.2
For edvertlslng Info""atlon, call (2:L3) 229.5427
CONSIDERING THE
PRICE OF AMUSEMENT PARKS.
WHAT'S $25 TO
KEEP THE ORIGINAL ONE OPEN?
~
surjrider
Foundation
.........'tOo.~.-.cII'..
'.IlOJ'I"I~CMiIIClIllUto.IU"1"
....Cl,.IIlPT1..~.."
Think .bout n. L.onS
brrotr tht d,p of ncon~lal
thrmr parJu" parlunE )ou
1 and r.ntu}'Jandl. thC1'( -'-'U .
I ploc< ,h. m",. (.",,]~. ..m'
tCl srmd . little qualu)'
lime. Thr br.th, And now,
.(In much n~lrCl. it nrrdOlO
)'our help. That's ..h). ..C
rncouta,t )'OU &0 JOin
Sud,ldtt. An or&.niut'on
..host oblt(1I~.t IS .~'" knp
.
)'our buchu clun and art
(or ).01.1 and rOUf (amil,..
So rlca.st htlp. &t-cawc.
alllhmE:' C'onsldtfld, u's. I
,
small ..orld aftl, all. To ,Oln 1
c&ll ].800.7..3.SURF ~
gambling," Lungren uyS, "It W>.l only
after J began studying the issue th.t I
reolized we h.ve . bo.tlo.d of gambling
in California~'
Lungren (ought the exp.nsion of
Indion gaming and continu~ to oppose
the placement of slot rn~chine5 in
reservation casinos. In August 1989 the
.ttorney general's "ffice issued .n
, opinion stoting that jackpot poker, .
major c:ard-club attraction, W>.l a loneI')'
p~bed by both Penal Code section
319 and .rticle IV, section 19 of the
state Constitulion. Club ownerl were
advised they risked criminal prosecucon
if they continued 10 offer it. "Rumor
h.d il law enforcement gOI ,,'ind of .
jackpot at the old Ben Club, ond they
found OUI there h.d been no poker
g.me:' Rose says. "Some insider
claimed somebody had won it ond JUl'
took the money. It was tOO b.d for the
~t of the clubs."
The ov,,'T1rrs sued the sute and won ;I
judgment in 1992 that j.ckpot poker 15
on .djunct 10 poker .nd thus permined
under section 330. Lungren .ppealed
the trial court decision. Wlnnln~ .
rever>allast July that endo"ed the Ie.':
grounds for his office', original accor,
&11 c;."dClU Bityc1e Club v C4I Dry 'I ~,r
Jusria, 36 CA4th 717.
To Lungren, the t-eSt W'y 10 ShUI
down the money laundries is 10 CTe.>te .
gaming commission ,,'ith leeth. In 199:
Lungren's office wrote leg;.I.tJor,
propo,ing on independent corr!Tlisslon
armed wilh some 70 invelligators,
financed by per-table {ees {rom Ihe
industry, Sponsored by Assemblym.n
Phil Isenberg (D-Sacramento), the
bill p.md Ihe Asseinbly 49 to 1 (I
bUI was sent b.ck 10 commlllee fo'
rrconsidention on a ttchnical1t~
Senate President Pro Tern Bill Lockyer
(D-H.y......,.d)-iuspicious of Lunp-en's
political ambitioll.l-lltveT brouithl the
bill to a yote. "I'ye never been in a
game where I won 49 to 1 0 and went
home the loser;' Lungren says.
Lasl June the Assembly passed ~
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an agricultural economist. M.ril,.n
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.t D~\"is. 10 study Ihe sl.te'S .nme
g.ming induslry. Whilne}.'s "port,
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COUNCIL AGENDA STATEMENT
ITEM It:'
MEETING DATE 2/20/96
ITEM TITLE:
Report on the Dedication Plaque for the South Chula Vista Library
SUBMITTED BY:
,
Library Director' -1\1':
City Manager 11 ..J.,. 1G
REVIEWED BY:
On January 24, 1996 the City Council was sent an Information Item suggesting names to be
included on the South Chula Vista Library dedication plaque (ATTACHMENT A). Council was
asked to respond with any comments or suggestions. Based on concerns expressed about the
approach suggested in that report, staff is seeking further clarification from Council on this issue.
RECOMMENDATION: That Council accept the report and provide staff with direction as to
those names they wish to see on the South Chula Vista Library dedication plaque.
BOARD/COMMISSION RECOMMENDATION: Not applicable.
DISCUSSION: At the time of the buildings completion, there appeared to be interest
among some members of Council to include the names of all Council members who contributed to
the creation of the new South Chula Vista Library on the dedication plaque. Therefore, the
Library proposed a list of names which included all Council members seated from 1990 to 1995
(from the first State grant application to the dedication of the building).
Following the January 24, 1996 Information Item, staff received a Council comment indicating
some disagreement with this concept. It was pointed out, and later confirmed, that other plaques
in the City include only the names of the Council members seated at the time of the dedication. It
was suggested that the list, as proposed, might initiate a new and awkward precedent. Also, the
proposed list of names was not consistent, since it did not include former members of the Library
Board of Trustees, nor the former Library Director.
Based on the discussion that has occurred to date, there appears to be three major approaches
Council may want to consider.
A. Listing the Council members, Library Trustees and key staffin office at the time of
the dedication.
B. Listing the Council members seated from 1990 to 1995, and the Library Trustees
and key staff in office at the time of the dedication. (This is the approach
described in the attached report.)
/~"I
Item No. I () . Page 2
Meeting Date: 2/20/96
C. Listing all the Council Members, Library Trustees and key staff in office from 1990
to 1995.
The dedication plaque has not yet been ordered and staff will insure that the plaque is designed
per Council's direction.
FISCAL IMPACT:
Funds for the dedication plaque are included in Capital Improvement Program LB125. As this is
a reimbursable item under the State grant, the State will pay 65 percent of the cost and the City
will pay 35 percent. Although a final estimate for the plaque has not yet been received, it would
be logical to assume that fewer names on the plaque would result in a lower cost.
jtJ.. .;J-
ATTACHMENT A
INFORMATION MEMORANDUM
DATE:
January 24, 1996
TO:
The Honorable Mayor and City COlUlcil
VIA:
John Goss, City Manager
FROM:
David J. Palmer, Library Director
SUBJECT: South Chula Vista Library Dedication Plaque
The dedication plaque for the South Chula Vista Library will soon be ordered and will
include the information found on the following page.
If you have any concerns or comments, please contact me at 691-5170.
It?~ 'J
South Chula Vista Library
Dedicated Saturday, April 8, 1995
City Council
Mayor Shirley Horton
Jerry R. Rindone
Stephen C. Padilla
John S. Moot
Former City Council
Mayor Gregory Cox
Mayor Gayle McCandliss
Mayor Tim Nader
Robert F. Fox
Leonard Moore
David L. Malcolm
Library Board of Trustees
Peggy P. Donovan - Chair
William J. Alexander
Constance Clover-Byram
Jose T. Viesca, Jr.
Ronald E. Williams
City Manager
John D. Goss
Library Director
David J. Palmer
Funded jointly by a California Library Construction and Renovation Bond Act from
the California State Library and the City of Chula Vista
Id"'I
From the Office of the City Attorney
city of Chula vista
Memorandum
Date:
February 20, 1996
Attorney ~
From:
Bruce M. Boogaard, City
To:
Honorable Mayor and Councilmembers
Re:
USOC Indemnity of Existing Mechanics Liens
This item is proposed to be added to the February 20, 1996 agenda
as an unlisted item which needs to be addressed in order to
permit us to conduct our business in an orderly fashion and
which, can not, due to circumstances, wait until the next
meeting. It is non-controversial, and its implementation will
tend to promote a good public image for the city.
The Backqround
EastLake was obligated to, and has, built the Orange Avenue
Segment as a three lane road running between Wueste Road to the
visitor's Center at the Olympic Training Center.
The road is built on a right of way that straddles 75% of
EastLake's property on the north and 25% of the USOC's property
on the south.
Now that the road is completed and ready to be granted over
to the City, our public works department ran a title check to
make sure the right of way is free and clear of all liens.
EastLake's portion of the right of way is free and clear,
but USOC's title report showed 10 to 12 mechanics lien blanketing
the entire property, including, therefore, an encumbrance on the
right of way they were going to deed to us.
USOC's attorney declares that these are because USOC's
general contractor failed to pay some of their sub-contractors on
the overall construction of the job.
The Risk
The existence of the liens is delaying the City's decision
to accept the deed from the USOC, the risk being: if we accept
the road, we will have deemed USOC and EastLake to have satisfied
their obligation to perform under their agreements, thereby
discharging their duty to build the road. Then, if one or more
j
S~~LL-) !
. -
Memo re USOC Indemnity Agreement
February 20, 1996
Page 2
of the 10 or 12 subcontractors foreclose on their mechanic's
liens, the new owner who takes at the mechanic's lien sale could
preclude our use of the roadway, or even worse, remove the road
improvements.
We view the risk as generally low, but worthy, given our
duties of diligence, to protect against.
The Problem
The USOC is commencing their visitor tours as of Today, and
without the use of the Orange Avenue Segment, the visitors are
having to walk up a significant, lengthy incline to get to the
visitor center.
EastLake is currently barricading the road which is their
right to do because, until we accept the road and thereby relieve
them of liability for accidents due to design errors, it is still
private property and we have no access rights. It is their
desire to avoid liability for design error.
The Proposed Solution
The attached agreement requires USOC to indemnify the City
against the risk created by the mechanics liens being filed
against the property. If they assume the risks created by the
mechanics liens, we would agree to accept the road (if
Engineering assures us that all the punch list items are done)
and open it.
Recommendation
That the Council authorize the city Manager, or his designee, to
execute the attached Indemnity Agreement in substantially the
form as attached, subject to such modifications as the City
Manager and City Attorney may agree upon; and authorize the City
Clerk to accept deeds to the Orange Avenue Segment from the USOC
and EastLake Development Company after the Indemnity Agreement is
fully executed by the USOC and City, and authorize the City
Engineer to accept the Orange Avenue Segment into the Streets and
Highways System of the City.
.,
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.~
Memo re USOC Indemnity Agreement
February 20, 1996
Page 3
Fiscal Impact
We would be accepting the risk of liability for design error,
which we think is negligible due to the fact that the street was
built to our design specifications, a few months sooner than when
we are scheduled to accept it. No monetary amount can be
assigned to it.
>_~ ~ -;---r.; J
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Indemnity
This Agreement is an agreement of indemnity, is made this 16th day
of February, 1996, and effective as of the date executed by the
United states Olympic Committee ("USOC"), is between tha USOC and
the City of Chula vista ("city"), and is made with reference to the
following facts:
Recitals
Whereas, USOC is the owner and operator of a parcel of property
commonly known as the Arco Olympic Training Center ("OTC") located
in the City of Chula vista at or near the intersection of Orange
Avenue and Wueste Road; and,
Whereas, the USOC, or their predecessor in interest, has granted or
promised to grant an easement ("USOC Easement") to the City for,
among other purposes, a right of way for public road purposes along
a portion of the northern border of their property; and,
Whereas, EastLake Development Company ("EDC"), which is the
property owner of the property to the north of the OTC parcel, has
also granted or promised to grant ("EDC Easement") the City an
easement for, among other purposes, a public road, which easement
adjoins contiguously the easement granted to the city by the OTCi
and,
Whereas, EDC has now substantially completed, with the exception,
perhaps, of a few "punch list items" ,1/ a singular road on the USOC
Easement and EDC Easement ("Adjacent Easements"), and the City is
ready, when the punch list items are comple~e and title is clear,
to accept the road construction as complete, and accept the segment
of road, commonly referred to as the Orange Avenue Segment, running
between Wueste Road and the Visitors Center on the OTC parcel (a
distance of approximately 1/2 mile), into the city streets and
highways system, by the acceptance of one or more deeds from EDC
and the OTC; and,
Whereas, various subcontractors of the OTC's general construction
contractor, Cole construction, have filed mechanic's liens and
claims against the usoc thereby encumbering the entire OTC parcel
alleging failure to receive payment ("Mechanic's Liens"), which
impairs clear title to, among other things, the USOC Easement that
USOC has and/or will grant to the City such that the City is
unwilling to accept title to the OTC easements, and the Orange
1. As built drawings, final paper work, erection of signs in the
median (safety related) including boring holes in the concrete
median, asphalt patching around valves and manholes, correct
asphalt berm.
1 / - ?/
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Avenue Segment built thereon into the streets and highways system
of the City; and,
Whereas, USOC has represented that the mechanic's liens claims have
little merit and that they are promptly moving to have them removed
through their attorneys and will indemnify the City against any
risks posed by the mechanics liens,
Obligatory provisions
Now, therefore, the parties hereto do hereby agree as follows:
1. usoc will promptly and diligently work to remove any
encumbrances to title posed by the Mechanic's Liens.
2. Indemnity. USOC hereby indemnifies and holds the City of
Chula vista ("Indemnitee"), harmless ("Indemnity") from any loss,
damage, judgment, order, liability, expense, expenditure, payment,
attorney fees or any other cost of any nature whatsoever, incurred
by Indemnitee ("Loss") as a result of the existence of the
Mechanic's Liens on the USOC Easement, or any foreclosure action
thereon, or any removal of the Orange Avenue Segment improvement
thereon.
3. Duty to Defend. Indemnitor also agrees that, upon tender
of defense by the Indemnitee, at the option of Indemnitee, it will
defend and be responsible for defending Indemnitee in any suit,
action, administrative hearing, or other proceeding brought against
Indemnitee which contain the claim or allegation which, if it were
determined to be true, in whole or in part, Indemnitee would or
might be indemnified under the terms of this Indemnity.
4. Acknowledgment of Risk of Loss.
advised of the risks of Loss do hereby
themselves, accept such risks of Loss.
Indemnitor, being fully
fully and solely, among
5. Duty to Accept USOC Easement and Orange Avenue Segment.
Upon execution of this Indemnity Agreement and completion of the
Punch List Items to the satisfaction of the city, City will accept
the USOC Easement, the EDC Easement, and Orange Avenue Segment
roadway into the City's system of streets and highways.
Dated:
united States Olympic Committee
by:
Dated:
City of Chula vista
by:
John Goss, City Manager
1
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-9n/ormalion memorandum
February 15, 1996
FROM:
Mayor and Council
John Goss, City Manager&~,1{\o ~.
Chris Salomone, Community Development Director L 0/
TO:
VIA:
SUBJECT: City's Co-Sponsorship of Renew-America Teleconference
The City of Chula Vista and the BECA Program have joined Naval Station San Diego
and a host of organizations and government agencies in co-sponsoring a day-long
conference called "Environmentally Sustainable Communities: National Town Hall
Meeting," to be held on Monday, February 26 at San Diego State University The
program is sponsored nationally by Renew America, a Washington-D.C. based
organization committed to promoting environmental quality and sustainable
communities in America.
After a morning agenda of panel discussions from San Diego organizations (see
attached agenda), San Diego State will serve as a down-link site for the transmission
of the Town Hall meeting. In the national teleconference, communities from across the
United States will have the opportunity to hear from experts in the field and other
communities recsrding strategies for environmental sustainability. Down-link sites will
submit specific questions in advance of the transmission, and a sample of these
questions will be answered on air. The remainder will be answered in writing.
Chula Vista's co-sponsorship of the event is at no cost to the City and includes BECA's
participation on a panel regarding binational environmental issues, and support in
getting the word out to potential attendees. As a co-sponsor, Chula Vista will set-up
the "Catch the Spirit" informational display in the lobby, from which hand-outs will be
distributed regarding Chula Vista's ongoing environmental efforts. BECA staff has
been coordinating this effort with the City's Environmental Resource Manager.
The event expects to draw over 250 people and will no doubt provide an excellent
forum for the City to promote our environmental initiatives.
,/ ~
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ENVIRONMENT ALL Y SUSTAINABLE COMMUNITIES:
NATIONAL TOWN MEETING
Aztec Center, San Diego State University
Monday, February 26,1996
7: 15-7:45 Registration/Continental Breakfast
General Session
8:00-8: ] 5
8: J 5-8:30
8:30-8:45
8:45-9:00
9:00-9: 15
9:] 5-9:30
9:30-11:30
Keynote Speaker
Congressman Brian Bilbray
49th Districl, House of Representatives
Welcome and
Introductions
CAPT V E. Smith
Commanding Officer, Naval Sla/ion San Diego
Naval Station
Speaker
Leslie McLaughlin
Environmental ^,fanager, Naval Station San Diego
Government
Speaker
Supervisor Greg Cox
District J, County olSan Diego
Panel Orientation
Loren Nancarrow, Moderator
KFMB TV Channel 8
Coffee Break
Panel Discussion Sessions (Descriptions on reverse)
Panel #1 - Community Partnerships
Panel Leader. Naval Station San Diego
Panel #2 - Environmental Procurement
Panel Leaders: I Love A Clean San Diego County, Inc./Ci/y of San Diego
Panel #3 - Afloat Waste Management
Panel Leaders: San Diego Unified Port District/US Coast Guard Marine Safety Office
Panel #4 - Bi-Nationallssues
Panel Leaders: City of San DiegolCity ofChula Visla
11:30-12:30 Lunch Break
General Session
] 2:30-2:00
2:00-2:30
2:30-3:30
~.r
Renew America Teleconference
Brief Reports by Panel Chairmen on "Next Steps"
Audience Discussion/S'.:::1mary
Printed on Recycled Paper
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Panel Discussion Sessions
To develop and expand alliances to promote environmentally sustainable initiatives that will shape the future, our
to\',:o meeting includes four panel discussion sessions. Experts will work with audience members to define "Next
Steps" toward promoting a healthy environment and economy. Please indicate the panel you plan to attend on the
attached Registration Form.
Panel I. Community Partnerships - Mission Statement: To discuss opportunities for and benefits of
partnerships between military, business, and student members of the community to implement environmentally
sound practices. Benefits to be highlighted include employment, training, economic development, and
environmental awareness.
Moderator: Councilman ROD Morrison,City of National City, Panelists: Rita Schuh, Pollution Prevention Manager, Naval
Station San Diego, Doug Flower, Instructor - Sweetwater Union High School District, Alternative Programs, Environmental
Science Studies and Education for Non-Traditional Career Employment (E.S.S.E.N.C.E.) Project, Anthony DeSalis, Area
Director, Advocacy, Resources and Choices for Persons with Developmental Disabilities (Arc) Arrow and Starlight Centers,
Topic: Naval Station San Diego Recycling Center Master Plan Case Study, Gretchen Brewer, Principal, Earth Circle,
Sustainable Corporate Enl'ironmentallnitiatives and Benefits, Curt Smith. Manager, Vans Recycling Centers, Vans Co., Inc..
Topie: Supermarket Recycling Beyond 50%.
Panel 2. Environmental Procurement - Mission Statement: To educate individuals on a wide range of
environmentally sound alternatives to incorporate into their daily activities and purchasing behaviors. Discussion
will include energy conservation practices, institutional purchasing guidelines, and individual practices to be
environmentally sensitive.
Moderator: Michelle Moreno, Executive Director, I Love A Clean San Diego County, Inc., Panelists: Ms. Donna Skinner,
Hazardous Materials Supervisor. Cit) of San Diego, Environmental Services Department, Topic: Household Hazardous
Product Alternath'esl!\'on-Toxic Sub.\"titutes, Chuck Angyal, San DIego Gas & Electric (SDG&E), Topic: Energy Saving
De~'ice and Practices, Albert Garza. Customer Service Section, General Services Administration (GSA), Topic: Efforts 10
Procure Recycled Products Catlllog. Joy \Villiams, Communit) Assistance Director, Environmental Health Coalition, Topic:
Institutional Em'ironmental Procurement.
Panel 3. Afloat Waste Management - Mission Statement: To increase and expand effons to prevent and respond
to oil spills, sewage dumping, and trash dumping in ~an Diego Bay. Discussions will include partnership efforts,
faster response capability, shipboard waste handling, and best management practices for recreational boats.
Panelists: Commander Brandt, Regional Environmental Coordinator, COMNA VBASE San Diego, Commander \\latson,
Commanding Officer. U.S. Coast Guard Marine Safety Office, Ralph Hicks, Environmental Management Coordinator, San
Diego Unified Port District, Topic: Cooperative Em'ironmental Partnerships in San Diego Bay, Leslie McLaughlin,
Environmental Manager, Naval Station San Diego, Armanda DeQuesada, Southwest Marine, Don Hermanson, California
State Lands Commission, Topic: Shipboard Waste Management, Trygve Enger, Manager, Foss Environmental, Lynn Jahn,
Environmental Analyst, San Diego Gas & Electric, Robin Lewis, Environmental Specialist, California Department of Fish and
Game, Topic: Oil Spill Recovery Technology, Leigh Johnson, Marine Advisor, California Sea Grant" Ken Moser, San Diego
Bay Keeper, Tom Nielsons, Owner, Nielson/Beaumont Marine, Inc., Dana Michaels, Public Affairs Officer. California
Depatrmenl of Fish and Game, Chief Higth, Harbor Police, Topic: Recreational Boating Waste Management.
Panel 4. Bi-Nationallssues - Mission Statement: To increase awareness on issues surrounding pollution
prevention and recycling efforts taking place in the .San Diegorrijuana border region.
Bilingual Moderator: Paul Ganster. Director of Institute of Regional Studies of the Californias at San Diego State University,
California Panelists: Zeferino Sanchez Martinez, Director of Public Works and Services, City ofTijuana, Topic: Municipal
Recycling Efforts in Tljuana, Yvonne Williams, Border Environmental Affairs Manager, City or San Diego, Topic: Waste
WiSe Program, Suzanne Schumacher, Purchasing Supervisor, Sony Corporation, Topic: Sony's Pollution Prevention Efforts
in Tijuana, Juan Alvarez Lopez, Professor of Economics, Universidad Autonoma de Baja California, Topic: University and
Private Sector Pollution Pre~'enlioll Efforts, Geoffrey Bogart, Border Environmental Commerce Alliance (BEe A) at City of
Chula Vista Topic: BECA 's Role in Promoting Environmentally Sound Business in the Region.
Printed on Recycled Paper
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