HomeMy WebLinkAboutAgenda Report - September 19, 2012 I-01AGENDA ITEM "140
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Introduce Ordinance Amending Lodi Municipal Code Title 5, Permits and
Regulations, Chapter 5.12 Cardrooms by Repealing and Re-enacting
Section 5.12.140 "Rules and Regulations" and further Repealing and Re-
enacting Section 5.12.170 "Gross Revenue Permit Fees"
MEETING DATE: September 19, 2012
PREPARED BY: City Attorney's Office
RECOMMENDED ACTION: Introduce Ordinance amending Lodi Municipal Code Title 5, Permits
and Regulations, Chapter 5.12 Cardrooms by repealing and re-
enacting Section 5.12.140 "Rules and Regulations" and further
repealing and re-enacting Section 5.12.170 "Gross Revenue Permit
Fees;
BACKGROUND INFORMATION: At the February 1, 2012 City Council meeting, staff requested
direction from the Council regarding amendments to the cardroom
ordinance proposed by Wine Country Cardroom. Following that
meeting, the following proposed changes were submitted to the Attorney General's office for their review
and approval:
1) Cap Card Room License Fee at $20,000 on the first $240,000 of monthly gross revenue the
permittee received from cardroom operations, and 4.5% of monthly 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 per table;
5) Eliminate specific daily hourly operation limits in favor of a maximum limit of 140 hours per week
6) Allow gaming in any rooms with an exterior unlocked door (instead of the current main entrance
requirement).
The typical turnaround time for the Attorney General's review and approval is 30 days. However,
because of the proposed change to the hours of operation, the changes were significantly delayed. After
three months and several inquires by the City Attorney's office, Wine Country Cardroom asked that the
City resubmit the requested changes with a revision to the hours of operation to read as follows:
"Cardrooms may be operated seven days a week and shall not open until the hour of nine
a.m. Cardrooms shall close no later than five a.m. 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."
APPROVED:
Bartlam, City Manager
By letter dated August 7, 2012 (copy attached), the Attorney General's office has approved all of the
requested changes with the revised hours of operation.
Staff recommends that the City Council consider introducing the attached Ordinance.
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: On a calendar year basis, the existing fee structure produces:
• Actual 2010 Fee
$310,887
• Actual 2011 Fee
$358,680
• Projected 2012 Fee
$428,386
The proposed fee structure would produce:
• Actual 2010 Fee
$265,844
• Actual 2011 Fee
$289,740
• Projected 2012 Fee
$324,593
Approved:
STdpre'rr-SchwaVo4er, C
jty Attorney
Approved:
Jordan Ayers, Deputy -City Man ger/
Internal Services Director
KAMALA D. HARRIS
Attorney General
Mr. D. Stephen Schwabauer
City Attorney
PO Box 3006
Lodi, California 95241-1910
Re: City of Lodi's Gambling Ordinance'
Dear Mr. Schwabauer:
bE,,t of iM1f
b�
State of California
DEPARTMENT OF JUSTICE °
BUREAU OF GAMBLING CONTROL
P. O. Box 168024
Sacramento, CA 95816-8024
Public: (916) 227-2363
Fax: (916) 227-1812
August 7, 2012 4116..0
Opn
Ce
On July 2, 2012, the Bureau of Gambling Control (Bureau) received the revised draft of
the proposed amendments to the Lodi Municipal Code 5.12 "Cardrooms," in accordance with
Business and Professions (B&P) Code section 19961.1.
The Bureau offers the following comments regarding the submitted amendments:
The proposed changes to increase the maximum number of gaming tables from eleven to
thirteen in each gambling establishment per B&P Code section 19961.06, complies with
applicable provisions of the Act.
The proposed changes including the Cap Card Room License Fee; the cashing of checks
and issuance of credit; the elimination of player limits per table; and the allowance of gaming in
any room with an exterior unlocked door, all comply with applicable provisions of the Gambling
Control Act.
The proposed amendment, specifically Section 5.12.140(F), states that "Cardrooms may
be operated seven days a week and shall not open until the hour of nine a.m. Cardrooms shall
close no later than five a.m." In 1996, the City of Lodi allowed cardrooms to operate 112 hours
per week. The proposed increase would permit cardrooms in the City of Lodi to operate 140
hours per week. We find this to be permissible under the Gambling Control Act (Act).
D. Stephen Schwabauer
August 7, 2012
Page 2
Upon approval and adoption of the proposed amendments, please provide the Bureau
with a signed certified copy of the amendments. If you have any questions, please contact
Analyst Brenda Weygandt of my staff at (916) 227-5681. Thank you for your cooperation in this
matter.
Sincerely,
.-1--D
NORM PIERCE
(j Assistant Bureau Chief
Bureau of Gambling Control
For KAMALA D. HARRIS
Attorney General
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
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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.
D. Not more n players shall ho permitted i� any ono nardt�hlo_
�� te��ers�„�..,�at
€D. GaFdFeems shall be IOGated eR the gFound fieeF, and so aFFanged that GaFdtables and
the pla ers at the tables shall be plainly visible 4orn the front door op ning when the dooris
the street and any Gardtable IGGated on the Gardreem shall be permitted with
the %. 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).
F- 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 not open until the hour of
e+ghtnine a.m. Cardrooms shall close no later than fGurfive a.m. 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.
1H. 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.
j. The Gashing of hank nh r play shall pe# be n i## in anv Gari-1 mt,r
e,-,��ers��p�er� ��
#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.
WTK. 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.
JFK-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.
9.N. The operator or his employees shall not extend Gredit to a player, nor shall he aGGep
IOU's er ether note,.' 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
Rine pernen# (9%) of the gFess reYenue of the permittee reneived from the naFdFeem
eperatien $20,000.00 on the first $240,000.00 of monthly gross revenue the
permittee received from cardroom operations, and 4.5 % of monthly 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
the end of each month a statement, under oath, showing the true and correct amount of
2
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 6. 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 , 2012
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 September 19,
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