HomeMy WebLinkAboutAgenda Report - February 1, 2012 I-02AGENDA ITEM 4
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Provide Direction Regarding Requested Changes to Cardroom Ordinance
Sections 5.12.140 "Rules and Regulations" and 5.12.170 "Gross Revenue
Permit Fees"
MEETING DATE: February 1, 2012 City Council Meeting
PREPARED B Y City Attorney's Office
RECOMMENDED ACTION: Provide direction regarding requested changes to Cardroom
Ordinance Sections 5.12.140 "Rules and Regulations" and 5.12.170
"Gross Revenue Permit Fees."
BACKGROUND INFORMATION: In May 2006, the Council amended the cardroom ordinance at the
request of the Wine Country Cardroom to expand the number of
games, players per table and tables. Council again amended the
ordinance to allow all games permitted under State law and expand
the available hours and tables in 2009. Wine Country is again
requesting ordinance revisionsto make its operation profitable.
Draft cardroom ordinances must be submitted to the Attorney General's Office for approval prior to the
adoption. Accordingly, staff requests direction on whether to submit the following requests to the
Attorney General:
1) Cap Card Room License Fee to $20,000 on the first $240,000 of gross revenue the permittee
received from cardroom operations ("gross revenue"), and 4.5% of "gross revenue" in excess of
$240,000;
2) Allow the cashing of checks and issuance of credit to the extent permitted by State law;
3) Allow two additional tables;
4) Eliminate limits on players pertable;
5) Eliminate specific daily hourly operation limits in favor of a maximum limit of 140 hours perweek
6) Allow gaming in any rooms with an exterior unlocked door (instead of the current main entrance
requirement).
The Police Department and Community Development Department have both indicated that they have no
history of complaints or enforcement issues as the cardroom is currently operated.
FISCAL IMPACT: The existing fee produces:
• Actual 2010 Fee 5310,887
• Projected 2011 Fee $358,520
The proposed fee would produce:
• Actual 2010 Fee $275,444
• Projected 2011 Fee $299,26
Approved
r Sep chwaba ity Attorney
P1''' 60011113
am, City Manager
ORDINANCE NO.
AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING
CHAPTER 5.12 "CARDROOMS" BY REPEALING AND
REENACTING SECTIONS 5.12.140 "RULES AND REGULATIONS"
AND 5.12.170 "GROSS REVENUE PERMIT FEES" IN THEIR
ENTIRETY
BE IT ORDAINED BY THE LODI CITY COUNCIL AS FOLLOWS:
SECTION 1. Lodi Municipal Code Section 5.12.140 "Rules and Regulations" is hereby
repealed and reenacted to read as follows:
5.12.140 Rules and Regulations.
It is unlawful to operate a cardroom in violation of any of the following regulations and rules:
A. Not more than one cardroom shall be located at any one address.
B. Only those games approved by and as defined by the California Office of the
Attorney General, Bureau of Gambling Control, shall be played in any cardroom.
C. Not more than eleven thirteen tables shall be permitted in any cardroom. No more
than eleven thirteen tables shall be permitted to operate within the city.
O. Not m„ thaRmen players shall be perFn+tted at aRy ene Gardt-.
€D. , and so arFaRged that Gardtables and
the players at the tables shall be plainly visible fFeFn the fFent deeF epeniRg when the deeF
GpeRed. No wall, partition, 6GFeeR or similar 6tFUGtUre between the frent door 0
the v0s bminty. No gambling establishment may be located in any zone which has not been
specifically approved for such a business. Additionally, none may be located near any of
the unsuitable areas, as specified in Business and Professions Code Section 19852(a)(3).
1=E. No person under the age of twenty-one shall be permitted at any cardtable, nor shall
any person under the age of twenty-one be permitted to participate in any game played
thereat.
GF. Cardrooms may be operated seven days a week and shall net open unto! the hour 9
eight rr, Gard -rooms shall GIGGe no later than four ,..nand up to 24 hours per day but
no more than 140 hours per week. A cardroom shall adopt a schedule of hours of
operation before it shall be allowed to operate. Such schedule of hours shall be clearly
posted at the cardroom in order to provide adequate notice of its hours of operation.
#G. All cardrooms shall be open to police inspection during all hours of operation.
fH. Only table stakes shall be permitted.
I. The cashing of bank checks for players or extensions of credit to players shall
be in full compliance with the California Gambling Law and Regulations. No
cardroom shall extend credit or cash checks for players in a manner not authorized
by State law.
jThe GashiRg of baRk GheGks feF players shall Rot be peFFn+tted OR aRY Gardrown.
-KI-J. Each cardtable shall have assigned to it a person whose duty shall be to supervise
the game to see to it that it is played strictly in accordance with the terms of this chapter,
and with the provisions of the penal code of the state. This person may have more than one
table under his supervision. He shall not, however, participate in the game.
WJ-K. There shall be posted in every cardroom in letters plainly visible from all parts
thereof, signs stating that only games approved by and as defined by the California Office of
the Attorney General, Bureau of Gambling Control, shall be played in the cardroom. These
signs shall also contain such other information relating to the regulations contained in this
chapter as the Chief of Police may require.
MK -L. No person who is in a state of intoxication shall be permitted in any cardroom.
N-.M.—The sale, purchase, transfer, assignment, or pledge of any property, or of any
document evidencing title to the same, is prohibited in any cardroom.
G.N. The operator or his employees shall not extend nredi++e a player ner shall he aGGep
IO 'S OF Gther Rates-, loan money to any person on any ring, watch, or other article of
personal property for the purpose of securing tokens, chips, or other representatives of
money as an ante.
P—. O. No shills shall engage in card games. This prohibition shall not apply to house
players, provided they wear a badge in a conspicuous place, which badge identifies them as
employees of the licensee.
Q. P. Patron Security and Safety. Each cardroom license shall be responsible and liable
for its patrons' safety and security in and around the cardroom establishment. Before it
shall be allowed to operate, each cardroom shall adopt a plan, to be approved by the city, to
provide for the safety and security of its patrons.
SECTION 2. Lodi Municipal Code Section 5.12.170 "Gross Revenue Permit Fees," is
hereby repealed and reenacted to read as follows:
5.12.170 Gross Revenue Permit Fees.
A. In addition to the permit fees previously prescribed each permittee permitted
pursuant to the provisions of this article shall pay to the city a monthly fee equal to
nine nernen+ (9%) of the press reVen„e of the permittee reneiyerl frem the nardF0GFn
epera#+en $20,000.00 on the first $240,000.00 of gross revenue the permittee
received from cardroom operations ("gross revenue"), and 4.5 % of "gross
revenue" in excess of $240,000.00. Such payment shall be made to the city not
later than fifteen days after the end of each month during which such gross
revenues on which it was computed were received by the permittee.
B. Each permittee shall file with the Finance Department before the 15th day following
2
the end of each month a statement, under oath, showing the true and correct amount of
gross revenue derived from the card game business permitted by the permit issued to the
permittee for the preceding month. Such statement shall be accompanied by the payment of
the correct amount of permit fee due and owing in accordance with the provisions of
subsection (a) of this section, and such sums correctly reflecting the monthly fees payable
for the preceding month shall be accepted by the city, subject, however, to the right of the
city to audit the matters reported in the statement to determine the accuracy of the
figures contained therein and whether or not the correct amount payable to the city has
been paid.
A signed declaration shall be attached to the statement or included therein, which shall be in
substantially the same form:
"I hereby declare under penalty of perjury that the foregoing is true and
correct."
SECTION 3. No Mandatory Duty of Care. This ordinance is not intended to and shall not
be construed or given effect in a manner which imposes upon the City, or any officer or
employee thereof, a mandatory duty of care towards persons or property within the City or
outside of the City so as to provide a basis of civil liability for damages, except as otherwise
imposed by law.
SECTION 4. Severability. If any provision of this ordinance or the application thereof to any
person or circumstances is held invalid, such invalidity shall not affect other provisions or
applications of the ordinance which can be given effect without the invalid provision or
application. To this end, the provisions of this ordinance are severable. The City Council
hereby declares that it would have adopted this ordinance irrespective of the invalidity of
any particular portion thereof.
SECTION 5. All ordinances and parts of ordinances in conflict herewith are repealed
insofar as such conflict may exist.
SECTION & This ordinance shall be published pursuant to law and shall become effective
30 days from the date of passage and adoption.
SECTION 7. The amended Schedules referenced above shall be effective on applicable
electric utility billings prepared by the City of Lodi on or after January 1, 2012, or the first
date allowable under State law.
Approved this day of , 2011
JOANNE L. MOUNCE
MAYOR
ATTEST:
RANDI JOHL
City Clerk
State of California
County of San Joaquin, ss.
I, Randi Johl, City Clerk of the City of Lodi, do hereby certify that Ordinance No. was
introduced at a regular meeting of the City Council of the City of Lodi held February 1, 2012,
and was thereafter passed, adopted, and ordered to print at a regular meeting of said
Council held , 2012, by the following vote:
AYES: COUNCIL MEMBERS —
NOES: COUNCIL MEMBERS —
ABSENT: COUNCIL MEMBERS —
ABSTAIN: COUNCIL MEMBERS —
I further certify that Ordinance No. was approved and signed by the Mayor on the date
of its passage and the same has been published pursuant to law.
Approved to Form:
D. STEPHEN SCHWABAUER
City Attorney
2
RANDI JOHL
City Clerk