Loading...
HomeMy WebLinkAboutPlanning Comm Rpts./1996/04/24 (18) PLANNING COMMISSION AGENDA STATEMENT Item ~ Meeting Date 4/24/96 ITEM TITLE: Public Hearing: PCC-96-27; Request to extend hours of operation to include Sundays for the Village Club cardroom located at 429 Broadway in the C-T (Thoroughfare Commercial) zone - Harvey F. Souza The request is to extend operations to include Sundays for the Village Club cardroom located at 429 Broadway. The Village Club currently operates Monday through Saturday from 9:00 a.m. to 1:00 a.m. As a result of several recent changes to the cardroom provisions in the Municipal Code, cardrooms within the City may now apply to operate on Sunday. This application requests permission for operations on Sunday from 9:00 a.m. to 1:00 a.m. The Environmental Review Coordinator has determined that this project is exempt from environmental review under CEQA as a Class 5 exemption. RECOMMENDATION: That the Planning Commission adopt attached Resolution PCC-96- 27, approving Sunday operations for the Village Club cardroom, in accordance with the findings and subject to the conditions contained therein. DISCUSSION: Site Characteristics The project site consists of a developed .47 acre parcel located at the southeast corner of Broadway and Vance Street. A single building on the site houses two uses, the Village Club cardroom, which has eight tables with seating for eight players at each table, and the Winner's Circle bar with seating for 28 patrons. 47 parking spaces are shared between the two businesses and are located to the rear, side, and front of the building. Page 2, Item 8 Meeting Date 4/24/96 Zoning and Land Use North - South - East - West - C-T C-T R-2 C-T Commercial Commercial Residential Commercial The site is bounded to the north (across Vance Street), south (across an alley), and west (across Broadway) by a variety of commercial uses (a bar, retail tire store, and office uses among others). Adjacent to the east are single family homes and duplexes within a residential neighborhood. Background 1 Nonconforming Use The Village Club is the only cardroom currently in operation within the City. Based upon the City's current population, four cardroom licenses are available. Two of these licenses are held by the applicant, although only one of those licenses is in use - the one for the Village Club. The other two licenses are purportedly held by an entity controlled by the Commerce Club, which operates one of the larger cardroom enterprises in Los Angeles. Those two licenses are not currently in use within the City. The existing cardroom has been operating since approximately 1963. This predates the City's Conditional Use Permit requirements for cardrooms; therefore, this use at this location is considered a legal nonconforming "grandfathered" use. The site is also nonconforming with respect to on-site parking. 47 on-site spaces are shared between the cardroom and the bar, whereas a minimum of 63 spaces would normally be required for the two uses based on 1 space per 1.5 licensed seats for the cardroom (an uncodified but accepted standard), and 1 space per 2.5 seats for the bar (code requirement). it should be noted that potential opportunities do exist to bring the site into conformance with respect to the parking deficit. The applicant owns the easterly adjacent parcel which is currently developed with residential units; there is the possibility that this property could be looked at for additional parking for this site. Alternatively, the applicant could attempt to procure sufficient off-site parking in accordance with the requirements of Section 19.62.040. Proposal The proposal is to extend operation to allow include Sundays from 9:00 a.m. to 12:00 midnight (the cardroom is already open from 12:00 midnight to 1:00 a.m. Sunday morning). Cardroom operation on Sundays has been prohibited until recently. Due to changes in the Municipal Code and the adoption by Council of a Chula Vista Gaming Plan (see attached) earlier this year, cardrooms may now open on Sundays subject to other regulations, including obtaining a Page 3, Item 8 Meeting Date 4/24/96 conditional use permit. ANALYSIS: As noted, current on-site parking is inadequate to serve both the cardroom and the bar; there are 47 spaces on-site, and the cardroom alone would require 44 parking spaces. With regard to current parking usage, staff has visited the site on numerous occasions and at different times during the day, and has noted that the parking lot is generally full. Numerous cars have also been parked along the street during these visits, although it cannot be stated conclusively that these are patrons of the cardroom. In order to address the issue of parking for Sunday operations, the applicant proposes to close the existing bar on Sundays, thus freeing up all parking on site for the cardroom. As an alternative, the applicant would propose to procure additional spaces off-site (subject to the requirements of Section 19.62.040 regarding off-site parking) which would allow the bar to remain open on Sundays. This application is being considered with respect to the new (Sunday) hours of operation only; it will not cover the existing cardroom operations, nor will it have any bearing upon the existing operations. But approval of Sunday operations must be considered in light of the basic nonconformity of the use with regard to the City's parking requirements, i.e., even if adequate parking can be provided on Sundays, does the ability to open and operate on Sundays encourage the continuation of a use which will have inadequate parking on the six remaining days of the week. If this were true, it would be contrary to the City's nonconforming use regulations. Section 19.64.050 of the Municipal Code provides that a Nonconforming Use may not be enlarged or extended; this would apply to an extension of hours as well as to an enlargement of the structure. The purpose of this provision and the other restrictions on Nonconforming Uses is stated in CVMC Section 19.64.010 as follows: "Many nonconforming uses within the city are detrimental to the orderly development of the city and adverse to the general welfare of persons and property, in that said nonconforming uses constitute a special benefit or monopoly. In conformance with good zoning practices, it is the policy ofthe city that nonconforming llSes shall be eliminated as soon as it is economically feasible and equitable to do so." (emphasis added) With regard to the issues of Sunday operations extending the life of this Nonconforming Use (six days of continued inadequate parking), the applicant's stated desire is to seek and ultimately move to another site which will allow him to fully utilize his license to operate a total of 12 tables with additional games and extended hours of operation throughout the week, and which Page 4, Item _ Meeting Date 4/24/96 would fully meet parking requirements. The additional revenues generated on Sundays would actually facilitate the move and thus shorten the period of nonconformity at this location, according to the applicant. Staff agrees that the additional day of operation will likely shorten rather than extend the life of the use. It is definitely to the applicant's economic advantage to find a larger site in order to expand operations in accordance with the Gaming Plan recently approved by the City Council. The Sunday hours will allow the applicant to better compete with the local Indian reservation casinos, and thereby generate additional revenues and facilitate the move. Another issue to be considered is this site's adjacency to a residential area, and possible impacts to the residents that could result from the extension of hours for this use. Noise from customer traffic late at night (engine noise, doors opening and closing) does present a potential impact to adjacent residents. The site is located within the CoT zone, which has no restrictions on hours of operations. As a result, although the cardroom would be open until 1 :00 a.m., it is important to note that other uses that might operate on a 24-hour basis could be sited here. Customer traffic noise could then become an issue even after 1: 00 a. m., and fast food restaurants for instance would also add speaker noise and possible loiterer's conversations to the noise impacts that could occur. Additionally, cardroom clients typically stay at the facility for extended periods of time; they do not generally stay at the cardroom for a matter of minutes, but rather, hours. As a result, the number of customer trips in and out of the site is minimized, and therefore also the potential for noise impacts. Furthermore, the Police Department, which also concerns itself with issues of residential compatibility, has indicated no concern with this issue in this case. Based on the fact that the operation will be adequately parked on the additional day of operation, that potential noise impacts are not inconsistent with the zoning and should be minimal, that the additional day should facilitate rather than discourage a move to a fully conforming site, and that the Police Department has indicated no objection to the proposal, we are recommending approval subject to conditions to include a time limit on the permit in order to ensure that the approval does in fact facilitate a move to a site which will conform to the Code in every way during all days of the week. Attachments 1. Resolution PCC-96-27 2. Locator, Site Plan. Floor Plan 3. Resolution 18212, Chula Vista Gaming Plan 4. Disclosure Statement RESOLUTION RESOLUTION NO. PCC-96-27 RESOLUTION OF THE CITY OF CHULA VISTA PLANNING COMMISSION APPROVING SUNDA Y OPERATIONS FOR THE VILLAGE CLUB CARDROOM LOCATED AT 429 BROADWAY WITHIN THE C-T THOROUGHFARE COMMERCIAL ZONE WHEREAS, a duly verified application was filed with the City of Chula Vista Planning Department on March 6, 1996 by Harvey F. Souza (dba Village Club)., and; WHEREAS, said application requests approval for Sunday operations for the Village Club cardroom located at 429 Broadway within the C-T Thoroughfare Commercial zone, and; WHEREAS, the Environmental Review Coordinator determined that this project is a Class 5 exemption from Environmental Review under CEQA, and; WHEREAS, the Planning Director set the time and place for a hearing on said application and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the city and its mailing to property owners within 500 feet of the exterior boundaries of the property at least 10 days prior to the hearing, and; WHEREAS, the hearing was held at the time and place as advertised, namely April 24, 1996 at 7:00 p.m. in the Council Chambers, 276 Fourth Avenue, before the Planning Commission and said hearing was thereafter closed. NOW, THEREFORE BE IT RESOLVED THAT THE PLANNING COMMISSION DOES hereby find, determine, resolve, and order as follows: I. Findings. 1. That the proposed use at the location is necessary or desirable to provide a service or facility which will contribute to the general well being of the neighborhood or the community. The proposed extension of hours will provide a convenience and service to residents of the City who wish to participate in card games on Sundays. 2. That such use will not under the circmnstances of the particular case be detrimental to the health, safety or general welfare of persons residing or working in the vicinity or injurious to property or improvements in the vicinity. This request is for Sunday operations only, when the majority of businesses within the vicinity are closed. The other on-site use will be closed or alternative off-site parking will be provided in order to address parking demand. The Police Department has no objections to the request. Due to the hours of operation and the nature of client activity/traffic (e.g. staying for longer periods of time), the proposed use should actually have significantly less impact than many other uses permitted in this zone might have with respect to hours of operation and noise. Therefore, the use should not be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity. 3. That the proposed use will comply with the regulations and conditions specified in the code for such use. The conditional approval of PCC-96-27 requires compliance with all conditions and applicable codes and regulations prior to the issuance of any permit or occupancy for any new uses on the site, and will require continued compliance for the duration of the proposed project. Sunday operations are expected to shorten rather than extend the use at this location consistent with the City's Nonconforming Use regulations as they relate to the inadequacy of parking Monday through Saturday. 4. That the granting of this conditional use pennit will not adversely affect the general plan of the City or the adopted plan of any government agency. The approval of this permit as conditioned is consistent with City policies and the General Plan. II. Conditional Grant of Permit; Conditions. The Planning Commission hereby grants approval of this request subject to the following conditions whereby: A. Sunday operations from 9:00 a.m. to 12:00 midnight are approved for a period of five years, (to expire on April 24, 2001), and thereafter the Applicant will no longer be allowed to continue extended hours of operation unless an extension is requested and granted prior to that date. Applicant understands that the duration of this approval may not provide the Applicant with an opportunity to receive a reasonable return on any investment incurred as a result of the terms and conditions of this decision. Applicant acknowledges understanding that any such investment will be made at the Applicant's risk. The Zoning Administrator may grant an extension of the term of this approval, on such conditions as helshe deem just, after notice to the surrounding residents and upon proof being supplied to the Zoning Administrator that the applicant has entered into negotiations for an alternate location for the subject business or off-site parking conforming to CVMC 19.62.040. Applicant must apply for and receive the extension prior to the expiration date. The Zoning Administrator may choose to direct the request, or the decision may be appealed, to the Planning Commission in accordance with Municipal Code Section 19.14.100. B. The adjoining bar (Winner's Circle) shall be closed for business during the Sunday hours of operation (9:00 a.m. to 12:00 midnight). Alternatively, the bar may remain open if the applicant is able to obtain off-site parking adequate to accommodate both the cardroom and bar, subject to the requirements of Section 19.62.040 and the approval of the Zoning Administrator. III. Additional Terms and Provisions of Grant. A. Post-Approval Conditions. This approval shall be subject to any and all new, modified, or deleted conditions imposed after adoption of this resolution to advance a legitimate governmental interest related to health, safety or welfare which City shall impose after advance written notice to the grantee and after the City has given to the grantee the right to be heard with regard thereto. However, the City, in exercising this reserved right/condition, may not impose a substantial expense or deprive Grantee of a substantial revenue source which the Grantee can not, in the normal operation of the approval granted, be expected to economically recover. B. Time to Commence Use. This approval shall become void and ineffective if not utilized within one year from the effective date thereof. C. A copy of this resolution shall be recorded against the property of applicant, known as 429 Broadway, and proof of said recordation shall be provided to the City prior to commencement of Sunday operations. D. Any violation of the terms or conditions of this permit shall be grounds for revocation or modification of the permit. IV. A copy of this resolution shall be transmitted to the applicant. PASSED AND APPROVED BY THE PLANNING COMMISSION OF CHULA VISTA, CALIFORNIA, this 24th day of April, 1996, by the following vote, to-wit: AYES: NOES: ABSENT: William C. Tuchscher II, Chair Nancy Ripley, Secretary (m:\home\plaulling\patty\village. REP) LOCATOR. SITE PLAN ... ~-" v-- ~ CHULA VISTA PLANNING DEPARTMENT LOCATOR PROJECT Harvey Souza PROJECT DESCRlI'l10N, C) APPlICANT, Village Club CONDITIONAL USE PERMIT PROJECT 429 Broadway Reques1: Permission to operate on Sunday, as is now ADDRESS, permitted by the Chula Vista Gaming Plan.. SCALE: FR.f NUMBE~ NORTH No Scale PCC-96-27 , tE: ~"~~ ' ______n_nl ~Ea i 6 -lLu ~~ p ~ '~~\-\\4 \ !'I' -,I "i I VA.NCE STREET x.'"",>fWA' -- 'I: ~ ~ -< 00 o O. 0' (} o i ~ i' .! 1 - I~ []] , ! Ii ".~ ~~~ "''"~ """"G ",-,-" ...",'" r. " " " " " " "~,, " " " " " " "" " " " " " " " " " " "'.'j I ~! ~~IWLOHG ~ I ~~ i I I " Ii "I 1-- "> "I <~ " . w, .! ! ~. L , ~g ~ ~, .> .- ~ 0 ~ il . w . ~ < > , ~ " ~ N..tBff IfC. -- MOADWA Y CAIfD 'fOC>>tI Dl'MIIfrI.Y' .... ~Ho.' ..~ 42llIIKIo'oOWAY ChR:IaD.'" ,J.H.A OIUI.JtlfSf... 01..,.,0 I[L (II') 420-7OIJO -- - rAX.(,1,)4zo..-fl" CONDIT1ONAL USE PERMIT SITE PLAN J/.,.... 1M1E:: -.cr_aF_ CHULA VISTA GAMING PLAN RESOLUTION NO. I r.J.l,).. 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 "Chu1a vista Gaming Plan") which regulates such form(s) of gambling; and ~REAS, 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 WHEREAS, the city council duly considered all public comments on the proposed gaming plan prior to taking action 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 Approved as to form by Bruce A d-or- Richard Emerson, Chief of police :' / .. ,I .J \. "I'MIS PACiE BLANK 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. CARDROOKS ~. 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. Licensino. 2.1 License Reauired to O~erate Cardroom -- Individual Licensee'. Must he 21 Years or Older. A license from the City issued pursuant to the Gaming' Code or this Gaming Plan, is required for any person, group of persons, partnership, corporation, or any other entity or organization (each a "Person" hereinafter) to engage in or carry on, or to maintain or conduct, or cause to be engaged in, carrie~ 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 ~ -' 2.2 N,,~her o. Licenses Permitted -- Exi~ .na 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 pp.r 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 Licen.e. -- Class I and CIa.. 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 'lass I license shal.l. 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 als9 permit the playing of Super Pan 9 and pai Gow. 2.3.2 conversion to Cla.. 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; Content.. Any Person desiring a cardroom license must submit an application therefor to the Chief of police. Snch application shall be on a form issued by, or otherwise approved in advance by, the Chief of Police. Such 2 ". .I ) 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 curre!ltly, or contemplated to have a "financial interest" in the cardroom operation proposed to be licensed; (b) the past criminal recorA, if any, of any and all such Persons; (c) the fingerprints of any and all such Persons; (d) a description and the address of the proposed location of the cardroom, including evidence of the ownership or control thereof; (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 applied for license is an entity (as opposed to an individual), such Person shall also include any and all documents relating to the fo:nnation, 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- ls, 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 Xndependence Requirement. Each cardroom license application shall be totally independent and unassociated with any other application bein~ submitted for the purpose of obtaining such a license. No applicant requesting a license pursuant to this 3 ~ section may have a ~inancial interest, or any _cher interest, in any other cardroom license, or application pending therefor. 2...3 Definition of "Financial Intere.t". For purposes of this Gaming Plan, the term "financial interest" shall mean any and all direct or indirp.ct 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.... 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 appl~cations for a cardroom license hereunder. 2.5 'rransfers. 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 stri~t 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 ~ j 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 R.qui;ud. Any and all proposed cardroom license transfers must receive (a) prior written approval of the Chief of police, which approval may be withheld in the sole discretion of the Chief of police, ~ (b) 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 Thr.. Y.ar. op.ration R.quir.d B.for. Transf.r. 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-Complyinq Tran.f.r.. 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.' sp.cial Rul.. for Tran.f.r. of Cla.. II Lic.n.... 2.5.'.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 5 ~ Class II license se ~everted may be converted .ck to a Class 11 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 11 license may be transferred without reversion of the subject Class II license to Class 1 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 1 license shall not constitute a taking of any property or other interest held by such Person(s); and (c) such Person(s) waive and agree not to pursue any and all claims or other action against the city in connection with a city decision to revert the Class 11 license to a Class I license. (c) Until such time that Class 11 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 11 license, or such. longer period as the Chief of police may require (the "Temporary Class 11 Status Period"), the Class 11 status of the license shall be temporary, and therefore subject to reversion to a Class 1 license upon a determination by the Chief of police, in his/her &ole discretion, for any or no reason whatsoever, that the transferee should be required to first operate as a Class 1 licensee prior to being permitted to operate as a Class 11 6 J ) 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 pot~1"tial 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 and 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 consolidation rules and procedures of this section 2.6. Under no circumstances may any Person acquire or hold more than two licenses. 2.6.2 Required Qualifications/procedures. In order to acquire an additional license, an existing license holder (a) must have continuously 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 wi th 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 consolieSation; DeemeeS ConsolieSation. If an application for the acquisition of an additional license is granted, the two licenses held by the applicant shall become 7 ~ "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 iF'. twelve (12), subject to any additional or ~ontrary terms and condi tions set forth in Sect~on 3.5 and/or other provisions of this Gaming Plan. All tables operated under a consolidated license must be operated in the same location. 2.1.4 Cla.. I with Cla.. II Con.olidations. 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 Ba.e or Gro.. Revenue. Rate. The license tax to be assessed and collected on each licensed cardroom shall be the areater of the applicable "base rate" tax per table, 2l: the applicable "adjusted gross revenue rate" tax per table, if any, determined as follows: 2.7.2.1 Ba.e Rate: a. Cla.. I -- Non-con.olidated: 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 1 -- Conlolidate4: The base licensed under a consolidated Class I card table per annual quarter. c. Cla.. I -- Greater Than $3 Charge Per. Hand: Notwi thstanding the foregoing, at such time that this Gaming Plan approves and the licensee charges in excess of three dollars 8 /' ~ ($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 III 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 licensej 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 aevenue. aate: a. Calculated for Both Class I and Class :n 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 un to: Tax r.!1te: $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 adjo.lsted gross revenues per table per quartLr, 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 n2t be applied in combination with other rates as a marginal rate. b. aevenues Not Attributable to a Cla.s I. or Cla.. 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 Cow 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 9 ". ,/ -- tables would be allocated 5.0'.9H. of the non-game-specific adjusted gross revenue. c. Definition of Adjusted Gros. Revenues: Adjusted gross revenues shall be defined to include all revenues received by the license holder from per hand money collected, seat rel"ltal fees, and any and p.ll 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 qu~rter for the other tables and shall itself be assigned an adjusted gross revenue figure for that quarter of $0. 2.7.3 Procedure. 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 ~hereto. For each quarter thereafter, the minimum advance payment amount shall be the mean averaqo. 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 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 Riqbt.. 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 10 ; 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 paY1!lent 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. cDeratina Limitations and Conditions. 3.1 City Land Us. aeaulations 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 t~e 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 Cl...:I Licen.e: Subject to the terms and conditions of this Gaming Plan and the Gaming Code, the holder of a Class I cardroom license shall be permitted to operate a cardroom which conducts all card games which were determined by the Attorney General 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 'Cl...:I:I 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". 11 -j -' 3,2.3 1 .ting of Permitted Games -, Jame 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 ODeration. 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 -- Non-Consolidated. The maximum number of tables permitted under a single, non-consolidated Class I license shall be eight (8). 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 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 12 F ; eight (12)i however, only three (3) of the twelve (12) licensed tables shall be permitted at anyone time to conduct Class II Games. 3.6 .aximum Number of Plavers Per Table. 3.6.1 Cla.. I Table.. No more than nine (9) players shall be permitted at anyone card table conducting Class I Games. 3.6.2 Cla.s 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 .aximum Bets and Bettina 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 Cla.s II Games. There shall be no limit on bets or wagers in any Class II Game except that only table stakes shall be permitted. 3.8 Maximum House Charaes Per Hand -- postina Reauired. 3.8.1 Class I Games. No charge in excess of three dollars ($3.00) per hand per tablp shall be col}~cted 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 Game.. 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. 3.1 Work Permits and Identification Badaes Reauired J'or Hanaaers. IndeDenden~ Contractor. and EmDlov.... 3.1.1 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. 13 'l 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, Ca) the past criminal record, if any, of such Person; Cc) the fingerprints of such Person; and Cd) a non-refundable fee, as present.ly 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 Cl) year. Any renewal must also be approved by the Chief of police. The Chief of police 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 badge. 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 Drinkina of intoxicatina beveraaes ~rohibited. The drinking of any intoxicating liquor in a cardroom by any Person in the cardroom is prohibited. The licensee of a cardroom shall t~ke all necessary and appropriate steps to assure compliance with this s~~tion. 3.11 Minor. ~rohibited from ~atronaae or .m~lovment. No Person under twenty-one years of age shall be permi tted to play any game at any card table in the cl ty. 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. . 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;ulations 3.13 Class II Games to be Plaved Onlv at Cordoned off Tabl... 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 14 ~ ) / 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 i~ any Class II gaming activities. 3.14 cDerations in Accordance with an ADDroved securitv 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 ResDonsible for COJIIDliance and SUDervision of Ot:terations. 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 a~~ 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 ~D 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. 15 I 4.2 Monetarv Pines. 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 sus~en.io~. 4.3 .1ci ty Right to Revolte 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 alld 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. Haterial 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. 16 ~ -' (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 Inscection Riahts. The city shall have the right, at any time, without notice, to enter into any cardroom operating within the City and to conduct a reasonable inspection of all areas of such cardroom, and/or any or all fixtures, equipment, accounting materials or documents contained therein, in order to determine whether or not such cardroom is being. operated in accordance with this Gaming Plan. 5. General Provisions. 5.1 Definitions. Except as otherwise expressly defined herein, capitalized terms, and terms otherwise requiring definitions for proper interpretation, shall have t~e meanings ascribed thereto by the Gaming Code. 5.2 section H.a~iDa.. Section headings contained herein are for reference purposes only and shall not be deemed to govern, limit, modify or 17 f '. in any manner affecL the scope, meaning or inten~ of the provisions of any section hereof. 5.3 Gamina 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 Intearated 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 Aareement of Licensee to AcceDt 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. 18 ~ f DISCLOSURE STATEMENT 11-IE, . Y OF CHUl.A VISTA DJSa..OSURE S. ~ T1!MEJIIT You arc required 10 file a Slalement of Disclosure of certain owner.;hip or financial intereslS, paymenls, or campaign e()nlri~utions, on all matters which will require discrelionary aClion on the part of the Cily Council, Planning Commission, and all other official bodies. The following informalion must be disclosed: 1. List the names of all persons having a financial inleresl in the property which is the subjecl of Ihe application or the contract, e.g., owner, applicant, wntraclOr, subcontraclor, material supplier. Ht=irvp.:y F' ~nl1'Z.::I M.=.ilp Rring,::lo Bettv SOU7.n Pi=lltri~k Flynn John Souza 2. If any per.;on' idenlified pursuant '" (1) above is a corporalion or partnership, list the name.' of all individuals owning more Ihan 10% of the shares on the corpora lion or owning any partnership intercst in the partnership. N/A J. If any person' identified pursuanl 10 (I) above is non-profit organizalion or a trust, list the names of any person serving as director of the non-profil organllalion or as truslee or bcnefteiary or truslor of the trust. N/A 4. Have you had more Ihan S250 worth of business transacled with any member of the City slaff, Boards, Commissions, Committees, and Council within Ihe paS! Iwelve months? Ycs_ No..]L If yes, please indicate person(s): _ 5. Please identify each and every person, including any agents, employees, consul!an!s, or independenl contractors who you have assigned 10 represent you before the City in this matter. Michael A. Green 6. Have you and/or your officers or agents, in Ihe aggregale, contribuled more than S 1,000 to a Couneilmember in Ihe curren I or preceding election period? Yes_ NoL If ycs, stale which Councilmember(s): . . . (NOTE: AtlaCb additional pap as ntraetor/applicant Date: ?~t. -9~ HARVEY SOUZA Print or type name of contraetor/applicant . ~ is dcfill(J as: "AI')' illdlWduul, finn. ((>.p/JfTtloshlp, )01111 V't7UUft, Q..U()(IQlIml, socuu clu.b, /rolcn/ol orgolll.uJlioll, COfpOftmtNl, esuJle, II'W!, receim', I)"IdicQ.e, uw mid QIIY otho COUII/)', city olld COUII~', city ,"wile/paltry. distrrcl, or olher political subJivisiCNI, or allY OIlier 6'Qup or cOlflbutQl;Oll Qctilag 41 Q wnU. "