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HomeMy WebLinkAbout1995-9-12 Electionsta Date: September 27, 1995 To: The Honorable Mayor and City Council From: City Clerk Subject: Certification of the Election Results of the Special Municipal Election September 12, 1995 on Measure A ..~ / ~ ~ ~- r]._~ RECOMMENDATION: That the Council adopt a resolution declaring the election results of the Special Municipal Election of September 7, 1995. DISCUSSION: Pursuant to Elections Code 15645, 14406 and 15300 this Office conducted a public manual recount of Precincts 1810, 1811, 5820 and 5836; investigated all absentee ballots and provisional ballots submitted to the precincts and either counted the ballots or voided same; verified the count of unused ballots and destroyed them through the use of a drill punch, etc. In accordance with Section 15300 of the Elections Code, I respectfully submit the following certification of election results of the September 12, 1995 Special Municipal Election: The number of registered voters: The number of votes cast: Percentage of turn-out: 23,397 10,482 44.8% Measure A: Shall the South San Francisco General Plan and Municipal Code be amended as proposed to allow a card club in the area of South San Francisco East of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site, at which games permitted by law such as draw-poker, low-ball poker and panguingue (PAN) are played and to increase regulation of card clubs? Measure A required a simple majority vote for passage: Yes Barbara A. Battaya ~' City Clerk 4,631 44.18% 5,846 55.77% Attachments: Canvass Certificate of City Clerk Certificate of Ballot Destruction Resolution CE. NT~.AL- RECOFID~ AS/SS 202 9/84 1M OFF:~:IAL CANVASS PRINTED 09/1/*/95, 02:06 P# 39 PRECIIICTS 1801 SO SAIl FRAIl 01 1802 SO SAIl FRAIl 02 1803 SO SAIl FRAIl 03 1804 SO SAIl FRAIl 04 1805 SO SAIl FRAIl 05 1806 SO SAN FRAN 06 1807 SO SAN FRAIl 07 1808 SO SAIl FRAIl 08 1809 SO SAIl FRAN 09 1810 SO SAN FRAIl 10 1811 SO SAN FRAIl 11 1812 SO SAIl FRAIl 12 1813 SO SAIl FRAIl 13 181/* SO SAIl FP, AN1/* 1815 SO SAIl FRAIl 15 1816 SO SAIl FRAIl 5817 SO SAIl FRAIl 17 5818 SO SAIl FRAIl 18 5819 SO SAIl FRAIl 19 58~0 SO SAIl FRAIl 20 5821 SO SAIl FIL~ 21 58~2 SO SAN FRAIl 22 582.3 SO SAN FRAIl 2.3 58~/* SO SAIl FRAIl 582.5 SO SAIl FRAIl 2.5 582.~ SO ~ FRAIl 26 582.7 SO ~ FRAIl 27 5828 SO ~ FEAN 28 582~ SO ~ FRAIl ~ 583O SO SA# FRAIl 3O 5831 SO SAN FRAIl 31 5832 SO ~ FRAIl 32 5833 SO ~ FRAIl 33 583~ SO ~ FRAIl 3~ 583S SO SAN FRAN 35 58~ SO SAN FRAN ~ 58,37 SO SAN FRAN 37 8001 ABSEIlTEE 8002 ABSEIITEE GRAND TOTALS EXITBIT A RV TP EO UE GT RR IE BC SR AA OE TS LS UN E LT TT R 0 A E T G O S E 656 191 29.12 6~0 217 607 151 627 176 28.07 581 131 22.55 794 2/,2 30. ~7 276 37.~ ~5 ~5 31.13 693 ~5 33.91 570 120 21.05 ~52 145 32.~ 602 167 ~7.74 6~ 128 18.31 7~ 1~ 20.~0 6~' 1~8 24.~ 576 176 30.~ 569 187 32.~ ~5 ~3 ~Z 2~ ~0.20 595 19~ 32.55 587 215 ~.~ ~ 2~0 ~9 15~ ~.~7 ~1 176 ~.~ ~ 157 ~.~ ~ 167 ~.~ 5~ 139 ~.~ 5~ 150 5~9 1~ ~.16 5~8 1~ ~.~ 557 121 21 5~ 217 41 .~9 691 ~2 6~ 2&1 35.81 ~2 ~Z 32.~ 0 1~6 0 1898 23397 10/.4)2 ~.80 TO RESOLUTION' NO. 10o-95 S(XJTH SAN FRANCISCO S~ECIAL I~JIIICIPAL ELECTION SEPTEHBER 12, CITY OF SOUTH SAIl FRANCZSCO #EASURE A Y E N s 0 86 105 7/* 143 /*5 106 81 ~5 57 74 107 1~, 113 16~ 92 142 8~ 151 ~ 85 74 71 47 81 67 77 59 8~ 67 10~ 81 106 105 128 ~ 149 121 1/.5 35 122 5& 113 67 121 /*5 9~ 59 91 58 112 3~ 87 96 121 122 110 90 117 1/.41 164) 857 767 977 921 ,r~531 58~6 PAGE 001.001.01 CENTRAL RECORDS NO. CERTIFICATE OF CITY CLERK In the Matter of the CANVASS OF VOTES CAST AT ) THE CITY OF SOUTH SAN FRANCISCO SPECIAL ) ELECTION held on September 12, 1995 ) I, BARBARA A. BATTAYA, City Clerk of the City of South San Francisco, County of San Mateo, State of California, do hereby certify: THAT, pursuant to the City of South San Francisco City Council Resolution No. 49-95, an election was held within the boundaries of the City of South San Francisco on Tuesday, September 12, 1995, for the purpose of submitting Measure A to the vote of voters and; THAT, after the closing of the polls and in accordance with Section 15301 of the Elections Code, I caused to have taken off and recorded from the voting machines used at said election the record of votes cast at said polling places within the City of South San Francisco. I HEREBY FURTHER CERTIFY that said record of votes cast at the polling places and the results of the canvass of the absentee ballots cast for and against Measure A are set forth in Exhibit "B" by absentee and by precinct while incorporated herein are the total Measure "A", votes: YES - 4,631 and NO - 5,846. IN WITNESS WHEREOF, I hereunto affix my hand and seal this 27th day of September, 1995, and file this date with the City Council of the City of South San Francisco. ~ity Clerk City of South San Francisco CENT-~,AL RECORDS FILE NO. ~ '~'"-"~'~ ~[Y/ CERTIFICATE OF BALLOT DESTRUCTION CITY OF SOUTH SAN FRANCISCO SPECIAL ) ELECTION held on September 12, 1995 ) Pursuam to Elections Code Section 14406, I certify that 30,000 total ballots were ordered for the City of South San Francisco Special Municipal Election of which 6,960 ballots were cast at said 37 precincts, 3,522 ballots were issued to absentee voters and 100 ballots were used as test ballots in the Logic and Accuracy processing of the Eagle Voting Machines. THEREFORE of the total 30,000 ballots ordered for the City of South San Francisco 19,418 ballots were unused and destroyed. Dated this 27th day of September, 1995 in South San Francisco. City Clerk City of South San Francisco UNOFFICIAL CANVASS PRINTED 09/12/95, 08:39 PM 39 PRECINCTS 1801 SO SAN FRAN 01 1802 SO SAN FRAN 02 1803 SO SAN FRAN 03 1804 SO SAN FRAN 04 1805 SO SAN FRAN 05 1806 SO SAN FRAN 06 1807 SO SAN FRAN 07 1808 SO SAN FRAN 08 1809 SO SAN FRAN 09 1810 SO SAN FRAN 10 1811 SO SAN FRAN 11 1812 SO SAN FRAN 12 1813 SO SAN FRAN 13 1814 SO SAN FRAN 14 1815 SO SAN FRAN 15 1816 SO SAN FRAN 16 5817 SO SAN FRAN 17 5818 SO SAN FRAN 18 5819 SO SAN FRAN 19 5820 SO SAN FRAN 20 5821 SO SAN FRAN 21 5822 SO SAN FRAN 22 582_3 SO SAN FRAN 23 5824 SO SAN FRAN 24 5825 SO SAN FRAN 25 5826 SO SAN FRAN 26 5827 SO SAN FRAN 27 5828 SO SAN FRAN 28 5829 SO SAN FRAN 29 5830 S0 SAN FRAN 30 58,.31 SO SAN FRAN 31 5832 SO SAN FRAN 32 58~3 SO SAN FRAN 5834 SO SAN FRAN 34 5835 SO SAN FRAN 35 5836 SO SAN FRAN 36 5837 SO SAN FRAN 37 8001 ABSENTEE 8002 ABSENTEE GRAND TOTALS RV TP EO UE GT RR IE BC NC SR AA OE TS LS UN E LT TT R 0 A E T G D S E 656 191 29.12 630 217 34.44 607 151 24.88 627 176 28.07 581 131 22.55 794 242 30.48 727 276 37.96 755 235 31.13 693 235 33.91 570 120 21.05 452 145 32.08 602 167 27.74 699 128 18.31 706 ' 144 20.40 608 148 24.34 574 176 30.66 569 187 32.86 645 233 36.12 607 244 40.20 593 193 32.55 587 215 36.63 754 240 31.83 659 154 23.37 601 176 29.28 689 156 22.64 644 167 25.93 637 188 29.51 523 139 26.58 589 150 25.47 549 138 25.14 598 170 28.43 557 121 21.7~ 523 217 41.49 691 232 33.57 673 241 35.81 632 207 32.75 796 309 38.82 0 1465 0 1686 23397 10110 43.21 SOUTH SAN FRANCISCO SPECIAL MUNICIPAL ELECTION SEPTEMBER 12, 1995 CITY OF SOUTH SAN FRANCISCO MEASURE A Y E N S 0 86 105 74 143 45 106 81 95 57 74 107 134 113 163 92 142 83 151 34 85 74 71 63 104 47 81 67 77 59 89 67 109 81 106 105 128 95 149 95 98 94 121 95 145 60 94 68 108 34 122 54 113 67 121 45 94 59 91 43 95 58 112 34 87 96 121 122 110 104 137 90 117 148 160 780 685 885 801 4461 5644 PAGE 001.001.01 SUMMARY REPORT SOUTH SAN FRANCISCO SPECIAL MUNICIPAL ELECT SEPTEMBER 12, 1995 PRECINCTS COUNTED (OF 39) ..... REGISTERED VOTERS - TOTAL ..... BALLOTS CAST ' TOTAL ....... VOTER TURNOUT - TOTAL ...... CITY OF SOUTH SAN FRANCISCO MEASURE A YES ............ NO ............ VOTES PERCENT 39 100.00 23,397 10,110 43.21 4,461 44.15 5,644 55.85 City of South San Francisco Appointment of Absent Voter Ballot Processing Board Special Municipal Election September 12, 1995 I, BARBARA A. BATTAYA, City Clerk of the City of South San FranciscO, in accordance with "Procedures Applicable for the Use of Voting Systems" and the Elections Code, hereby appoint the following persons to serve on the Absent Voter Ballot Processing Board: Virginia R. Cortez, Norma B. Elias, Mary A. Marques, Tom Abrams, Colin Mc Innis, Young Kim, Bill Jackson, Curtis Covington The duties of said boards are to process the Absent Voter Ballots beginning at 10:00 a.m., Tuesday, September 12, 1995, and to be continued by computer in the manner prescribed by law after 8:00 p.m., Tuesday, September 12, 1995, and to canvass those ballots received at the polling places prior to the close of the polls September 12, 1995, commencing at 1100 a.m., Wednesday, September 13, 1995, and to be counted by computer in the manner prescribed by law. Barbara A. Battaya City Clerk Dated: September 12, 1995 C, ENTEAL RECORi3 no. REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND HOLLYWOOD PARIGq3PMP INC., (BAY WEST GROUP) FOR REIMBURSEMENT OF SPECIAL ELECTION COSTS ASSOCIATED WITH MEASURE A RECITALS 1. 'v% ~rI-tERF~S, the City Council of the City of South San Frandsco approved the placement of an initiative measure related to the approval of a card club in South San Francisco on a special election ballot; 2. WHEREAS, the initiative measure would have been placed on the general election ballot absent City Council authorization calling for a special election; 3. WHEREAS, the placement of the initiative measure on a special election ballot will provide an earlier determination of whether or not additional card dubs should be allowed in South San Francisco and such earlier determination may provide a benefit to Hollywood Parl4BPMP Inc., by virtue of having full information at an earlier date; AGREEMENT THE PARTIES HEFcEBY AGREE AS FOLLOWS: 1. Hollywood Parl4BPMP, Inc., will reimburse the City of South San Francisco its direct reasonable costs of conducting a special election including, but not limited to, costs associated with public notice, election management and oversight, printing costs, and any costs imposed by the County for their assistance in CENTRAL RECORD.i) administering the election. Said costs are not expected to exceed forty thousand dollars ($40,000). Michael A. Wilson City Manager Holly~ od~P~ ~,~I~cT~ APPROVED AS TO FORM: M~ Steven T.~atta ~ City Attorney J:\WPDhMNRSW~,4 0 5k~.GREEkH OLLYWOO.AGR sta xt DATE: July 26, 1995 TO: The Honorable Mayor and City Council FROM: Assistant City Manager SUBJECT: Policy Statement on Gaming Revenue RECOMMENDATION It is recommended that the City Council review the following policy statement on the potential use of gaming revenues and offer input to staff on the direction the Council desires to take in implementing such a policy. BACKGROUND: In May of this year a series of informational meetings were held throughout the City with the purpose of educating residents about the card club proposed as part of a larger development on the Shearwater Redevelopment site. During those presentations one topic covered in detail involved Community Revenues and Regulatory Requirements. By way of a brief summary, potential revenue from the proposed Shearwater development is made up of three distinct sources: (1) A gross revenue license tax on the gaming operation; (2) sales tax; and (3) property tax increment. The first two sources of revenue are considered general fund revenues which would be available for any general municipal purpose or service delivery operation such as parks, libraries, tree trimming, street sweeping, etc. The third revenue source, property tax increment, arises from the increased value of the property as a result of redevelopment. The incremental increase in property tax is split between the general fund and Redevelopment Agency (RDA). A majority of the property tax increment goes to the RDA (89%) to assist with expanded redevelopment activities. The City's share of the tax increment is treated as general fund revenue and can be used for any general City services. Based on figures provided by Hollywood Park, Inc., in the business plan submitted as part of the overall development proposal by Bay West Group, the following are estimates of the potential revenue that could result from the development of a card club and adjacent commercial retail center: I Staff Report To: Honorable Mayor and City Council Subject: Po]icy Statement on Gaming Revenue Page 2 Card Club Development - 100,000 s.f. facility - Max. 150 tables - Food and retail sales Gross Revenue License Tax $5.1 M - $6.0 M Sales Tax $88,750+ Property Tax Increment $233,000± · $30,000City ° 203,000 RD^ Retail Canter - 400,000 s.f. commercial Total Estimated -0- $1.0 - $1.6 M $5.1 M - $6.0 M $1.09 M - $1.69 M+ $287,000± · $ 31,750 City · $255,430 RDA $520,000± DISCUSSION: In previous reports and presentations it has been suggested that the City Council may want to consider adopting a policy statement guiding potential future uses of revenue generated from the gaming operation. The purpose for such a policy statement is to minimize potential influence or reliance on speculative gaming revenue as a means to balance the annual budget for ongoing City services. Based on a survey of cities with existing card clubs conducted by staff earlier this year, it was concluded that the potential exists for gaming revenue to become an overly significant revenue source relied upon to fund on-going operations. To avoid becoming fiscally dependent on such a speculative source of revenue, as some cities have, staff recommended that the Council adopt a policy which directs gaming revenue to be used to off-set fixed costs required for law enforcement and regulatory oversight as well as specific one-time purposes. Fixed Costs It has been proposed that all costs associated with administrative oversight, including but not limited to law enforcement and financial regulation, be paid for using gaming revenue. The rationale for this approach is that administrative oversight expenditures are incurred solely from the establishment of the gaming facility. If at a future date gaming activities were to disappear from the City, so too would the additional budgetary costs. CENTRAL RECORDS F=ILE NO. I Staff Report To: Honorable Mayor and City Council Subject: Policy Statement on Gaming Revenue Page 3 Consistent with the preceding approach, the annual estimated coat of providing oversight activity in the Police and Finance departments is $620,000. This amount will be advanced to the City each year through payment of an annual licensing fee to be paid by the card club operator. One-Time Expenditures Staff is recommending that the Council adopt the following policy statement which stipulates that revenue generated from a gross revenue license tax will be utilized solely for funding one-time expenditures that would not otherwise be possible within current resources: 'q'he City Council desires to establish a policy for use of the card club gross revenue license tax proceeds. Therefore, it is the policy of the City Council that funds generated by the card clUb gross revenue license tax should be used for one time capital expenditures approved by the City Council through the annual budget process for items including, but not limited to, building and street repairs, park improvements, equipment purchases, and property acquisition. Unless modified by City Council action, the policy shall be effective indefinitely." Among the one-time expenditures for which the Council could consider allocating funds to undertake are such things as: building renovations and improvements, street repairs, park improvements, property acquisition, capital outlay projects and equipment. All of these categories represent millions of dollars in delayed projects or deferred maintenance expenses that have been set aside over the years in favor of funding on- going services. Allocating gaming resources for the one-time expenses mentioned above will insure that sufficient funds exist to complete projects before they are approved and more importantly that on-going services will not be reduced or eliminated to pay for such expenses. Likewise, any increases or decreases in gaming revenue collected from the proposed card club that may occur in the future will have no impact on day-to-day City services and related personnel costs. Each year, during budget deliberations, the City Council would have the discretion to establish priorities for one-time projects to be paid for with gaming revenue. Any funds not expended in a given year would remain in reserve for future expenses or contingencies that arise unexpectedly during the fiscal year. CENTRAL RECORD.5 I Staff Report To: Honorable Mayor and City Council Subject: Po]icy Statement on Gaming Revenue Page 4 SUMMARY AND CONCLUSION The policy statement presented for the City Council's review and direction addresses a number of concerns previously raised with respect to how a potentially substantial new source of City revenue should be spent. The approach offered establishes the priorities for use of potential gaming revenue to cover fixed costs for City oversight of the gaming operation and funding of one time expenses for capital projects that have been deferred over the years because of limited general fund dollars. Further, this policy will insure that the City does not become dependent on this single source of revenue to balance the annual budget for ongoing services. Any increases or decreases in the amount of gaming revenue collected by the City will only effect the one-time projects that may be approved at the City Council's discretion. Finally, the policy statement presented commits the City to this direction until such time that any future Council takes specific action to change the policy. Patricia E. Martel Assistant City Manager Approved~.~~~ Michael A. Wilson City Manager MAW:PEM:sp . x DATE RE~UIS~TI~ED \.-,, U. S. Postmaster %k ' (National Guard Armory) ~ ~-~u-~ , 455 3rd Avenue ~ Sa. Bruno, CA ~o66 \ ,,,ou.T INFORHAT ION PURPOSE Bulk Mailing Permit #138, 6,129.3 lbs. X $3.0437 postage for mailing of Sample Ballot for Special Election of 9/12/95 APPROVAL REQUESTED AMOUNT CERTIFIED PRE AUDIT BY AC~IJ~ NG DJ~RIBUTION AMOUNT ACCOUNT NO. ,~ ~ DR. CR. City C1 erk TITLE SPECIAL HANDLING: TUESDAY CHECK REQUIRED RETURN C~ECK TO DEPARTMENT SEPARATE c.Ec~s SEND CHECK WITH ATTACHED FORM APPROVED DIRECTOR OF FINANCE SERVICE AGREEMENT FOR THE CITY OF SOUTH SAN FRANCISCO SPECIAL MUNICIPAL ELECTION SEPTEMBER 12, 1995 SPECIFIED ELECTION ACTIONS OR SERVICES TO BE PERFORMED BY COUNTY CLERK 1. All functions for the creation and ordering of the official ballot. 2. Establish and consolidate precincts and hire election workers for each precinct. Set up delivery and pickup of Eagle voting machines. 3. Address and mail sample ballots. 4. Establish receiving station at South San Francisco City Hall and set up election central in the South San Francisco City Clerk's Office. 5. Deliver an Eagle voting machine to the South San Francisco City Clerk's Office for tabulation of absentee ballots election night and do semi-official canvas. 6. Provide permanent absentee labels to South San Francisco City Clerk. SPECIFIED ELECTION ACTIONS OR SERVICES TO BE PERFORMED BY CITY CLERK Request the Board of Supervisors to allow the County Clerk to perform specified election services in connection with the September 12, 1995 Special Municipal Election. 2. Legal Publications: All legal publications are the responsibility of the City Clerk including but not limited to: Notice of Election, Notice to File Arguments and Rebuttals For or Against, Election Officers and Polling Places, etc. 3. Arguments/Rebuttals: City Clerk is to file and check Arguments/Rebuttals and proof all election printed documents. o City Clerk is to prepare and deliver to the printer the ballot pamphlet containing, if applicable, ballot measure(s), ballot question, analysis of measure(s), arguments for or against, rebuttals thereto. Due date of this material in its final form to be to the printer by July 14, 1995 to be inserted into the Sample Ballot Pamphlet. 5. Issue and control all absentee ballots with the assistance of County Election personnel. 6. Canvas election returns with County Election personnel assistance and equipment. -1- CENTRAL ~ORD5 NO. TERMS AND CONSIDERATION In the event the County is unable to perform services required under this Agreement, as a result of employer/employee relation conditions, vendor conditions or other conditions beyond the control of the County Clerk, the County will be relieved of all obligations under this Agreement. Consideration: In consideration of the performance of services and supplies provided by the County Clerk, the City of South San Francisco shall pay to the County Clerk a sum equal to the actual cost of such services, supplies and overhead. City of South San Francisco County Clerk ,~ San Mateo County Date GUiDELiNES Notice of Exemption To: [] Appendix E Office of Planning and Research From: (Public Agency) C i ty 1400 Tenth Street, Room 121 400 Grand Avenue Sacramento, CA 95814 (Address) South San Franci County Clerk County of San Mateo !County Government Center .iLl!. :! L !99 401 Marshall Street Redwood City, CA. 9.063 Resolution ca]lin9 for special election on issue Project Title: dr!d Genera] Plan Amendments related to a card club. Project Location - Specific: Area East of HW~::]01 and North of Oyster Point Blvd. in of South San Francisco South San Francisco ProjectLocation-City: South San Francisco ProjectLocation-Coun~: Description ~ Nature, Purpose, and BeneficiariesofProject: The action of place an initiative measure on the ballot which would, electorate, amend the Municipal Code and General review and City Council or Redevelopment Agency in a specified area. NameofPublicAgencyApprovingProject: Cit~ of South San NameofPersonorAgency Car~ing OutProject: City of South San Mateo the City Council was to if approved by the Plan to permit, following CEQA approval, a Gaming/Card Club Francisco/Electorate San Francisco Exempt Status: (check one) [] Ministerial (Sec. 21080(b)(1); 15268); [] Declared Emergency (Sec. 2t080(b)(3); 15269(a)); [] Emergency Project (Sec. 21080(b)(4); 15269(b)(c)); Reasons why project is exempt: Pursuant to CEQA Lee v. Lompoc (1992) 14 CA.4th 1515, Guidelines Section The action of placing an initiative measure on the ballot 15378(b)(4) and is not a "project" as defined by CE~QA. ~-- Lead Agency ~~ Contact Person: StPvPn T. Mattas, AreaCode/Telephone;Extension: (415) City Attorney If filed by applicant: 1. Attach certified document of exemption finding. 2. Has a Notice of Exemption been filed by the public agency approving the project? [] Yes [] No 877-8515 Signature: Date: Title: Date received for filing at OPR: Revised March 1986 Appendix C CEOA Guidelines and Discussions · 303 CI~NTRAL IMPARTIAL ANALYSIS OF MEASURE A Measure A amends the South San Francisco General Plan, Zoning Ordinance, and Municipal Code to authorize the City Council or Redevelopment Agency to approve a card club of not more than 150 card tables in a portion of South San Francisco, east of Highway 101 and north of Oyster Point Boulevard as shown in Exhibit "A". Measure A prohibits establishment of additional card clubs in other areas of South San Francisco unless approved by a majority of South San Francisco voters. The two preexisting card clubs may not expand their operations or relocate to another area of the City unless approved by South San Francisco voters. The "East of 101 Area Plan" component of the General Plan is amended to require that approval of a card club may only occur as part of a planned-commercial development of the entire Shearwater site. Measure A repeals and readopts South San Francisco Municipal Code Chapter 6.36 related to card club regulations. Chapter 6.36 regulates: (1) the persons who will own, operate or be employed in card clubs; (2) the persons who will own the card club building; (3) card club operations; and (4) the issuance of card club permits and licenses. Chapter 6.36 establishes a license and permit application procedure for card club licenses, building owner permits, and employee permits and requires background investigations by the Police Department of card club owners, operators and employees, and card club building owners and their employees. Chapter 6.36 authorizes the City Council to approve or deny card club licenses, building owner permits, point holder permits, or key management employee permits. It also establishes renewal procedures, and regulations for transfer and revocation of licenses and permits. Chapter 6.36 establishes an annual card club license tax in the amount of $600,000 per year and a card club gross revenue license tax. The gross revenue tax ranges from 10 percent of gross monthly revenue between $500,001 and $2,500,000 to 13 percent of gross monthly revenues in excess of $7,500,001. Chapter 6.36 also provides an alternative payment method for the gross revenue taxes which could require the licensee to pay an initial lump sum tax of up to $3,000,000. Chapter 6.36 establishes audit requirements and provides the City with unrestricted access to all records. Chapter 6.36 establishes card club operational rules and regulations including prohibiting anyone under 21 years old from being in the card-playing area, limiting the types of permissible games, requiring that card playing areas be accessible to law enforcement officers and officials designated by the City, and prohibiting cheating and fraudulent acts. Chapter 6.36 also requires Police Department approval of card club security plans. Lastly, Chapter 6.36 prohibits City employees and officials from directly or indirectly owning, operating or having any interest in any card club or card club license for any card club within the City, and also prohibits campaign contributions from any card club licensee or permittee to any City Councilmembers, or candidates for city Council or their campaign committees. 3 ARGUMENT IN FAVOR OF MEASURE A MEAS[YRE A permits the Cily Council to approve a card club and major commercial development at the abandoned Shearwater/U.S. Steel industrial site, East of Highway 101. This remote, Bayfront toxic dump is isolated from residential areas. Toxic cleanup costs, estimated at $10,000,000, have discouraged past development. If no cleanup occurs, this site will remain blighted and contribute nothing to South San Francisco's economy. MEASURE A means cleanup of Site contamination at NO TAXPAYER EXPENSE. MEASURE A means $5,000,000 to $6,000,000 annually in revenues to thc city from the Card Club alone and an additional $2,000,000 more ever>' year upon project completion. MEASURE A means the initial creation of over 1,000 permanent jobs, with preferential hiring practices favoring qualified SOUTH SAN FRANCISCO RESIDENTS. MEASURE A means a strong economy for South San Francisco, generating revenue for city maintenance, facility improvements and general operations. MEASURE A means a major boost for the local economy through new jobs for local residents. MEASURE A provides ALL of these benefits for South San Francisco -- with traffic and other potential impacts far removed from residential areas. MEASURE A prohibits the expansion, location or relocation of cardroorn~ anywhere in the community without prior voter approval. MEASURE written primarily by our Police Department, provides South San Francisco with the toughest and mo.,,'t comprehensive regulations in California. THE POLICE CHIEF's impartial analysis (City Council 6/14/95) concluded" .... We've always been fairly cort~rvative and proactive as a police department .... and based on the facts we have learned, under the conditions discussed .... the impact to the City should not be significant." MEASURE A, provides YOU, the largest stakeholder in South San Francisco's future, the opportunity to secure vital funding for city services; increase jobs specifically for our residents; and clean upatoxie waste dump on our Bay's ed~..by si~_~ MEASURE A. WE URGE YOU TO DO SO ..... TOTAL P.~2 ARGU1VII~ IN FAVOR OF MEAS~ A MEASlYRE A permits the City Council to approve a card club and major commercial development at the abandoned She, arwatertU.S. Steel industrial site, East of Highway 101. This remote, Bayfront toxic dump is isolated from residential areas. Toxic cleanup costs, estimated at $10,000,000, have discouraged past development. If no cleanup occurs, this site will remain blighted and contribute nothing to South San Francisco's economy. MEASURE A mc. am cleanup of Site contamination at NO TAXPAYER EXPENSE. MEASURE A means $5,000,000 to $6,000,000 annually in revenues to the city from the Card Club alone and an additional $2,000,000 more every year upon proj~t completion. MEASURE A means the initial creation of over 1,000 pem~anent jobs, with preferential hiring practi~s favoring qualified SOUTH SAN FRANCISCO RESIDENTS. MEASURE A means a strong economy for South San Francisco, generating revenue for city maintenance, facility improvements and general operations. MEASURE A means a major boost for the local economy through new jobs for local residents. MEASURE A provides ALL of these benefits for South San Francisco -- with traffic and other potential impacts far removed from residential areas. MEASURE A prohibits the expansion, location or relocation of eardroom$ anywhere in the community without prior vot~ approval. MEASLIRE A, written primarily by our Police Department, provides South San Francisco with the toughest and most comprr&onsive regulafiom in California. THE POLICE CHIEF's impartial analysis (City Council 6/]4/95) concluded" .... We've always been fairly conservative and proactive as a police deparlment .... and based on the facts we have learned, under the conditions discussed .... the impact to the City should not be significant." MEASURE A, provides YOU, the largest stakeholder in South San Francisco's future, the opportunity to secure vital funding for city services; increase jobs specifically for our r~sidents; and clean up a wxie w~ste dump on our Bay's edge .... by simply voting YES on TOTPL P.02 ARGU1VIE1N~ IN FAVOR OF ME~ASURE A MEASURE A permits the Cily Council to approve a card club and major commercial development at thc abandoned Shearwatcr/U.S. Steel industrial site, East of Highway 101. This remote, Bayfront toxic dump is isolated from residential areas. Toxic cleanup costs, estimated at $10,000,000, have discouraged past developmenl, If no cleanup occurs, this site will remain blighted and contribute nothing to South San Francisco's economy. MEASURE A meatus cleanup of Site contamination at NO TAXPAYER EXPENSE. MEASURE A means $5,000,000 to $6,000,000 annually in revenues to thc city from the Card Club alone and an additional $2,000,000 more ~wery year upon project completion. MEASURE A means the initial creation of over 1,000 permanent j ohs, with preferential hiring practices favoring qualified SOUTH SAN FRANCISCO RESIDENTS. MEASURE A means a strong economy for South San Francisco, generating r~wcnue for city maintenance, facility improvements and general operations. MEASURE A means a major boost for the local economy through new jobs for local residems. MEASURE A provides ALL of these bmefits for South San Frmmisco -- with traffic and other potential impacts far renloYed from residential ~eas. MEASURE A prohibit., the expansion, location or relocation of cardrooms anywtmre in the community without prior voter approval. MEASUI A, written primarily by our Police Department, provides South San Francisco with the tou~est and mo~t comprehensive regulations in California. THE POLICE CHIEF's impart-id analysis (City Council 6/14/95) concluded" .... We've always been fairly conservative and proactive as a police department .... and based on the facts we have leafing, under the conditions discussed .... the impact to the City should not be significant." MEASURE A, provides YOU, the largest stakeholder in South San Francisco's future, the opportunity to secure vital funding for city services; increase jobs specifically for our residents; and clean up a toxic wo~tc dump on our Bay's edge .... by simply voting YES on MEASURE A. WE URGE YOU TO DO SO. (~i,~n ~' ~i~l'atur-- " "~,i./''~"'~:- ': ........ Title Address TOTAL P.82 ARGUMENT IN FAVOR OF MEASURE A MEASURE A permits the City Council to approve a card club and major commercial development at the abandoned Shearwater/U.S. Steel industrial site, East of Highway 101. This remote, Bayfrout toxic dump is isolated from residential areas. Toxic cleanup costs, estimated at $10,000,000, have discouraged past development. If no cleanup occurs, this site will remain blighted and contribute nothing to South San Francisco's economy. MEASURE A meam cleanup of Site contamination at NO TAXPAYER EXPENSE. MEASURE A means $5,000,000 to $6,000,000 annually in revenues to thc city from the Card Club alone and an additional $2,000,000 more every year upon project completion. MEASURE A means the initial creation of over 1,000 pem~anent jobs, with preferential hiring praetioes favoring qualified SOUTH SAN FRANCISCO RESIDENTS. MEASURE A means a strong economy for South San Francisco, generating ruweaue for city maintenanoe, facility improvements and general operations. MEASIYRE A means a major boost for the local economy through new jobs for local residents. MEASURE A provides ALL of the~e bmeflts for South San Francisco -- with traffic and other potential impa~ts far removed from residential areas. MEASURE A prohibiB the expansion, location or relocation of car&room anywlmre in the community without prior wt~ approval. MEASURE written primarily by our Police Department, pm'rides South San Francisco with the toughest and most c, ompmhensive regulatio~ in California. THE POLICE CHIEF's impartial analysis (City Council 6/14/95) concluded" .... We've always been fairly conservative and proactive as a police department .... and based on the facts we have learned, under the conditions discussed .... the impact to the City should not be aig~fificant." MEASURE A, provides YOU, the largest stakeholder in South San Francisco's future, the opportunity to secure vital funding for city services; increase jobs specifically for our residents; and clean up a toxic waste dump on our Bay's edge .... by simply voting YES on MEASURE A. WE URGE YOU TO DO SO. (si .t~ ~e) ,'/ Title TOTAL P.82 ARGUiVIEb~ iN FAVOR OF MI~ASURE A MEASURE A permits the City Council to approve a card ciub and major commercial development at the abandoned ShearwatedU.S. Steel industrial site, East of Highway 101. This remote, Bayfront toxic dump i$ isolated from residential areas. Toxic cleanup costs, estimated at $10,000,000, have discouraged past development. If no cleanup occurs, this site will remain blighted and contribute nothing to South San Francisco's economy. MEASURE A meatus cleanup of Site contamination at NO TAXPAYER EXPENSE. MEASURE A means $5,000,000 to $6,000,000 annually in revenues to thc city from the Card Club alone and an additional $2,000,000 more every year upon proj~t completion. MEASURE A meatus the initial creation of over 1,000 pem~anent jobs, with preferential hiring practices favoring qualified SOUTH SAN FRANCISCO RESIDENTS. MEASURE A means a strong economy for South San Francisco, generating revenue for city maintenance, facility improvements and general operations. MEASURE A means a major boost for the local economy through new jobs for local residents. MEASURE A provides ALL of these benefits for South San Francisco -- with traffic and other potential impacts far removed from residential areas. MEASURE A prohibits the expansion, location or relocation of cardrooms anywhere in the community without prior voter approval, ~ASURE A, written primarily by our Police Department, provides South San Francisco with the toughest and mo~ comprehensive regulnfiorm in California. THE POLICE CHIEF's impart'id analysis (City Council 6/14/95) concluded" .... We've always been fairly conservative and proactive as a police department .... and based on the facts we have learned, under the conditions discussed .... the impact to the City should not be significant." MEASURE A, provides YOU, the largest stakeholder in South San Francisco's future, the opportunity to secure vital funding for city services; increase jobs specifically for our residents; and {3lean up a toxic w~te dump on our Bay's edge .... by simply voting YES on MEASURE A. WE URGE YOU TO DO SO. TOTAL P.~2 Argument Against Measure A What doyou wantyour ~ity to be? South San Francisco the Industrial City or South San Francisco the Gambling City? We are a I~ity rich in history and culture/excellent parks, well established neighborhoods and a sound business community. In 1985, the~ity Council took a major step by outlawing cardrooms An ordinance threatens to change that by allowing a 150-table cardroom in South .' e, t~ oo~ . . San Francisco - the larges~n ~',~ot~t~ern Cahfom~a. We cannot risk the reputation and character of our ~ity with the lure of easy money. The project creates an immediate negative image. According to the City Police Department's own report, cardrooms create: o Undue political influence o Drugs - [~ostitution o Loan sharking -//Ioney laundering o Organized crime - ~xtortion o Social ,onsequences o Follow- home robberies Our Concerns: Gambling impacts our children in a negative way. A 1987 study found there was a link between parental problems, gambling: and increased risks of dysfunctional behavior in ~ ce~i~re~n. Quality of Local Government: Corruption and political influence could change our community's priorities. Already the Hollywood Park developers have paid $40,000 for this election to try to win favor with City Council, when this could have been dealt with at the General Election this November. Quality of Life: The clergy, medical professionals, psychiatrists and law enforcement officials have declared gambling has reached epidemic proportions. Welfare and social services have been drained in cities associated with cardroom casinos. Conclusion: Twenty-six initiatives have been placed before the electorate in less than three years. Twenty-one have been soundly defeated. Cupertino, Palo Alto, Mountain View, Sunny:vale and Santa Clara, recognizing the problems in the neighboring community of San Jose,~l~anned cardroom casinos. Brisbane, Daly City and Belmont defeated cardrooms at the ballot box. A "No" vote will ensure that South San Francisco remains a good community in which to live, work and raise families. Vote No on A. The undersigned authors of the Primary Argument Against measure "A" on the proposed cardroom casino to be voted on September 12, 1995,~~ate that such argument is true and correct to the best of their knowledge and belief. Signed, ~ ~ ,/~' ~ ,~R~e,v. R~c. ~~~ dr.~~ee]4/~e~~ Robert' ~jMayor ~, ~~~ President, South San Francisco Ministerium c~.---~tB~ly Bobli~;t/ --7 Former; South $~in Francisco Planning Commissioner Dion DuBois Temporary Tot Tenders, Inc. Alice Bulos President, Philippine/American Council REBU'I-I'AL ARGUMENT Supporters of Measure A, including large Southern California and out-of-State gambling interests, are using scare tactics and lies to sell their massive, 150 table card club casino to the people of our Community. DON'T BE FOOLED! HERE IS THE TRUTH: The Shearwater site is the most prominent undeveloped site in South San Francisco. Building a massive card club here will have major environmental and social impacts and create a lasting negative image of our Community. The Shearwater site is not a toxic dump nor will it cost $10 Million to clean up. This site is a CAL E.P.A. site. The nearby Gateway/Bethlehem Steel site had similar soil characteristics and was cleaned up and developed at no taxpayer expense. The developer's $10 Million clean up figure is not substantiated in any City report. Projected revenue figures from the card club development are greatly exaggerated and not guaranteed. What is guaranteed is our City must spend an additional $600,000 each year for Police Services related to the crime problems which this card club development will bring to all parts of South San Francisco. Jobs will be lost and not gained if this massive card club is built in South San Francisco. Our Community's negative image, crime, traffic and other problems produced by this card club development will not only cause existing business and industry to leave our City but new business will choose not to locate here. VOTE NO ON MEASURE A AND NO TO ADDITIONAL CRIME, DRUGS, SOCIAL AND FAMILY PRoIB£EMS AND POTENTIAL POI_ITICAL CORRUPTION. ! ~.~ ? RC,BERT~E.)MAYOR MAYOR AND SCHOOL PRINCIPAL AND ENVIRONMENTAL PLANNER REBU'I-rAL ARGUMENT Supporters of Measure A, including large Southern California and out-of-State gambling interests, are using scare tactics and lies to sell their massive, 150 table card club casino to the people of our Community. DON'T BE FOOLED! HERE IS THE TRUTH: The Shearwater site is the most prominent undeveloped site in South San Francisco. Building a massive card club here wi~ have major environmental and social impacts and create a lasting negative image of our Community. The Shearwater site is not a toxic dump nor will it cost-S10 Milli~ to clean up. This site is a CAL E.P.A. site. The nearby Gateway/Bethlehem Steel site had similar soil characteristics and was cleaned up and developed at no taxpayer expense. The developer's ~zl0 Milli-on clean up figure is not substantiated in any City report. Projected revenue figures from the card club development are greatly exaggerated and not guaranteed. What is guaranteed is our City must spend an additional $600,000 each year for Police Services related to the crime problems which this card club development will bring to all parts of South San Francisco. Jobs will be lost and not gained if this massive card club is built in South San Francisco. Our Community's negative image, crime, traffic and other problems produced by this card club development will not only cause existing business and industry to leave our City but new business will choose not to locate here. VOTE NO ON MEASURE A AND NO TO ADDITIONAL CRIME, DRUGS, SOCIAL AND FAMILY PROBLEMS AND POTENTIAL POLITICAL CORRUPTION. REBUTTAL ARGUMENT Supporters of Measure A, including large Southern California and out-of-State gambling interests, are using scare tactics and lies to sell their massive, 150 table card club casino to the people of our Community. DON'T BE FOOLED! HERE IS THE TRUTH: The Shearwater site is the most prominent undeveloped site in South San Francisco. Building a massive card club here will have major environmental and social impacts and create a lasting negative image of our Community. The Shearwater site is not a toxic dump nor will it cost $10 Million to clean up. This site is a CAL E.P.A. site. The nearby Gateway/Bethlehem Steel site had similar soil characteristics and was cleaned up and developed at no taxpayer expense. The developer's $10 Million clean up figure is not substantiated in any City report. Projected revenue figures from the card club development are greatly exaggerated and not guaranteed. What is guaranteed is our City must spend an additional $600,000 each year for Police Services related to the crime problems which this card club development will bring to all parts of South San Francisco. Jobs will be lost and not gained if this massive card club is built in South San Francisco. Our Community's negative image, crime, traffic and other problems produced by this card club development will not only cause existing business and industry to leave our City but new business will choose not to locate here. VOTE NO ON MEASURE A AND NO TO ADDITIONAL CRIME, DRUGS, SOCIAL AND FAMILY PROBLEMS AND POTENTIAL POLITICAL CORRUPTION. ROBERt// YOR ~/-$1~l~.;~.r(~O,~,--O, .. ~ b~_t~rl~J'_,.~, ,- 'L ,~;t3NTE 'es 3At303W REBWI~.A~._ TO ARGUMENT. AGAINST MEASURE A Historically, South San Francisco has encouraged a diverse local economy. This strategy has provided revenue for essential City services without depending on schemes to raise taxes for r~idents, Like all California cities, South San Francisco has struggled through nearly a decade of unhealthy State and Federal economies while trying to maintain a level of service that residents believe is basic to ou~ quality of life here. But w~ tmvc already beea forced to eliminate approximately 40 service positions, reduce services and indefinitely postpone maintenmace and develolm~ent of public facilities. MEASURE A will generate $5,000,000 to $6,000,000 each year to help preserve essential City services -- WITHOUT relying on you, the taxpayer, for additional taxes. MEASURE A also allows us to clean up a toxic site - again at NO COST to taxpayers. Opponents of MEASURE A offer NO funding alternative/;. Instead, they concoct dire predictions without facts. For the truth, look at San Bruno -- home of a large card club for decades. That community has not experienced the social ills which MEASURE A's opponents claim ALWAYS accompany strictly-regulated, legal card clubs. Meanwhile, MEASURE A's opponents tell South San Francisco residents they should be willing to do without the essential services and ammlties that make South San Francisco a great place to live, or that we should all be willing to pay substantial new taxes to support these services. Fortunately, MEASURE A makes such unacceptable strategies unnecessary. We urge you to vote YES on MEASURE A -- a genuine alternative to meat the challenges facing our City. Jan~.fi Datzman, Former pelt,ce chief Drago, V~e Mayor Dennis Rosaia, Local Businassperson Roberts Cerri Teglia, Cotmcilwoman Jake Jones, Chairman--So. San Francisco Conference Center Board REBUTT. _A~_ TO ARGUMENT AGAINST MEASURE A Historically, South San Francisco has encouraged a diverse locaI economy. ]'his strategy has provided revenue for esseatial City services without depending on schemes to raise taxes for r~idcnts, Like all Calit'omia cities, South San Francisco has struggled through nearly a decade of unhealthy State and Federal economies while trying to maintain a level of service that residents believe is basic to our quality of life here. But we have already been forced to eliminate approximately 40 service positions, redtme services and indefittitely postpone maintenance and develolm~ent of public facilities. MEASURE A will generate $5,000,000 to $6,000,000 each year to help preserve essential City services -- WITHOUT relying on you, the taxpayer, for additional taxes. MEASURE A also allows us to clean up a toxic site - again at NO COST to taxpayers. Opponents of MEASUR~ A offer NO funding alternatives~ Instead, they concoct dire predictions without facts. For the troth, look at San Bruno -- home of a large card club for decades. That mm-unity has not experienced the metal ills which MEASURE A's opponents claim ALWAYS accompany strictly-regulated, legal card clubs. Meanwhile, MEASURE A's opponents tell South San Francisco residents they should be willing to do without the essential services and amenities that make South San Francisco a great place to live, or that we should all be willing to pay substantial new taxes to support the~ services. Fortunately, MEASURE A nmkes such unacceptable strategics unnecessary. We urge you to vote YES on MEASURE A ~- a genuine alternative to meet the challenges facing our City. James Datzmaa, For~er Polic,~l~hief Jack Drago, Vice Mayor~., //Dennis Rosaia, Looal Businessperson Roberts Cerri Tegli~eilwoman .?kc JoneS,~onferenee. Chairman--SO.center SanBoardFraneiac, o DATE: TO: FROM: RE: June 28, 1995 Honorable Mayor and Members of the City Council City Attorney Ballot Arguments For Measure A RECOMMENDATION: Review the material contained herein, and if desired, approve a motion authorizing the City Council or any member or members of the City Council to file and/or sign a written argument for or against Measure A. ANALYSIS: Following the City Council's recent action placing the issue of card clubs on a special election ballot, the City Clerk established time frames for the submission of written argument in favor and against a proposed gaming initiative as well as a time frame for the submission of rebuttal arguments. As you may be aware, these time frames are as follows: Submission of Written Arguments In Favor and Against the Proposed Initiative June 23 through July 5, 1995 Submission of Rebuttal Arguments July 5 through July 14, 1995 Pursuant to Elections Code Section 9282, the written arguments in favor or against the proposed initiative are limited to 300 words in length. Pursuant to Elections Code Section 9285, the rebuttal arguments may not exceed 250 words. Elections Code Section 9282 further requires the arguments in favor and against the Measure begin with the title of either "Argument In Favor Of Measure "or "Argument Against Measure With regards to the issue of who may file and sign on to the written arguments, Elections Code Section 9282 further provides that: "The legislative body. or any member or members of the legislative body authorized by the body, or any individual voter who is eligible to vote on the measure, or bona fide association of citizens, or any combination of voters and associations, may file a written argument for or against any city measure..." CENTRAL RECORDS _/ Based on the underlined text, Elections Code Section 9282 requires that the City Council as a legislative body authorize any member or members of the legislative body to submit a written argument. Thus, if it is the desire of any member or members of the City Council to submit and sign the ballot arguments in favor or against Measure A, the City Council should make a motion authorizing individual council members to take such action. Elections Code Section 9282 also authorizes the entire legislative body to submit one written argument if that is the desire of the City Council. With regards to rebuttal arguments, assuming a argument is submitted in favor and against Measure A, the City Clerk will send a copy of the argument in favor to persons who have filed an argument against and conversely will send a copy of the argument against Measure A to those persons who have filed an argument in favor of Measure A. Those individuals who have filed the arguments in favor and against Measure A will then have an opportunity to submit a rebuttal argument not exceeding 250 words. Lastly, in the event that there are multiple arguments submitted in favor or against Measure A, the City Clerk shall, pursuant to Elections Code Section 9287, give preference and priorities to arguments submitted by the following individuals or entities: (1) The legislative body, or member or members of the legislative body authorized by that body; (2) The individual voter, or bone fide association of citizens, or combination of voters and associations, who are the bone fide sponsors or proponents of the measure; (3) Bone fide association of citizens; and (4) Individual voters who are eligible to vote on the measure. .~ M'chael' Wil~o~Manager Steve Mattas, City Attorney STM:dsp/kag J:\WPD~NRS~5~EMOUUNE95 ~E~UREA.W61 ELECTION NOTICE A SPECIAL MUNICIPAL ELECTION OF THE CITY OF SOUTH SAN FRANCISCO WILL BE HELD TUESDAY, THE 12TH DAY OF SEPTEMBER, 1995, FOR THE PURPOSE OF SUBMrl'TING TO THE VOTERS MEASURE A The following Measure A shall be submitted to the voters at said Special Municipal Election: MEASURE A "SHALL THE SOUTH SAN FRANCISCO GENERAL PLAN AND MUNICIPAL CODE BE AMENDED AS PROPOSED TO ALLOW A CARD CLUB IN THE AREA OF SOUTH SAN FRANCISCO EAST OF HIGHWAY 101 AND NORTH OF OYSTER POINT BOULEVARD AT OR NEAR THE SHEARWATER/U.S. STEEL SITE, AT WHICH GAMES PERMITTED BY LAW SUCH AS DRAW-POKER, LOW-BALL POKER AND PANGUINGUE (PAN) ARE PLAYED AND TO INCREASE REGULATION OF CARD CLUBS.'?" The following deadlines apply for filing arguments and rebuttals with the City Clerk: Impartial Analysis not exceeding 500 words - Deadline is July 5, 1995 Arguments for and against Measure A not exceeding 300 words - deadline is July 5, 1995 Rebuttals for and against Measure A not exceeding 250 words - deadline is July 14, 1995 July 14, 1995 Begins a 10 day public examination period The POLLS shall be opened at 7:00 a.m. and shall be kept open until 8:00 p.m. of said day when the polls shall be closed, except as otherwise provided in Section 14301 of the Elections Code. By order of the City Council of the City of South San Francisco, County of San Mateo, State of California, at a Regular Meeting held on June 14, 1995. /s/Barbara A. Battaya Barbara A. Battaya, City Clerk City of South San Francisco Dated: June 15, 1995 SAN M~,]'~O DATE: June 14, 1995 TO: Honorable Mayor and City Council FROM: SUBJECT-. City Manager and City Attorney RECOMMENDATION: Consider the various options presented and either direct staff to proceed with a general plan amendment that the City Council would consider and possibly approve or adopt one of the resolutions related to the various initiative options. INTRODUCTION AND SUMMARY: At the May 24, 1995 meeting, the city Council requested that staff prepare documents and analysis that would provide the city Council with the materials necessary to consider (1) a General Plan amendment that would be processed by the city Council and that would permit gaming in certain areas of the city and prohibit it elsewhere, and (2) a city Council sponsored initiative that would relate to the issues raised during prior City Council meetings and that would include site specific language. The City Council also asked for election timelines. These issues are discussed herein. As an initial step, however, in the event that the city Council desires to call for an election, there are various election issues the city Council should consider and decide. These issues include whether the gaming issue alone should be subject of the initiative or whether the initiative should also include a General Plan amendment and/or an amendment to the existing municipal code provisions regarding card clubs. Also, since the issue of bingo was raised during the prior City Council meetings, the City Council may also want to discuss whether the question of cardrooms should be expanded to include all forms of gambling that cities may regulate, thereby including bingo. The last issue the City Council should consider is whether any election that may be desired would be placed on the general election in November or on a special election ballot. Assuming that a special election is called for on June 14, 1995, the earliest date of the special election would be September 12, 1995. The general election will take place on November 7, 1995. The remainder of this Staff Report includes the possible actions that the City Council may take and an analysis of those actions. For ease of reference and use during the City Council meetings, a matrix has been included at page 12 of this report CENTRAL DATE: TO: FROM: SUBJECT: PAGE: June 14, 1995 Honorable Mayor and City Council City Manager and City Attorney GAMING CLUB ISSUES 2 which summarizes the various options. Each of initiative options could be amended to include a provision asking whether or stating that bingo is a permissible form of gaming in the City. Briefly, these options include: Begin processing a City Council approved amendment to General Plan Policy 47 and the East of 101 Area Plan (General Plan) to permit a gaming club in an area East of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site and to continue to require an election elsewhere. Place a City Council sponsored initiative on either a special or general election ballot that would ask whether card clubs should be allowed in South San Francisco. This initiative would not be site specific. Place a City Council sponsored initiative on either a special or general election ballot that would ask whether a new card club should be allowed in an area East of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site. Place a City Council sponsored initiative on either a special or general election ballot that would (1) amend General Plan Policy 47 and the East of 101 Plan to allow a new card club in an area East of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site, and (2) require an election prior to any additional new card clubs or expansion of existing card clubs. Place a City Council sponsored initiative on either a special or general election ballot that would (1) amend General Plan Policy 47 and the East of 101 Plan to allow a new card club in an area East of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site, (2) require an election prior to any additional new card clubs or expansion of existing card clubs, and (3) amend Chapter 6.36 of the Municipal Code related to card clubs. DATE: TO: FROM: SUBJECT: PAGE: June 14, 1995 Honorable Mayor and city Council City Manager and City Attorney GAMING CLUB ISSUES 3 ANALYSIS: Option 1: Proceed with amendment to General Plan Policy 47 and the East of 101 Plan without first conducting an election on the issue of gaming. The first option the city Council may select is to proceed with an amendment to General Plan Policy 47 and the East of 101 Plan without first holding an election on the issue of whether gaming should be permitted. As the City Council is aware, in the City Attorney's opinion, there is no state law requirement that the city Council hold an election on whether gaming should be allowed in South San Francisco. The absence of a need to hold an election exists because the City permitted gaming clubs prior to January 1, 1984, as evidenced by two existing card clubs along Grand Avenue. General Plan Policy 47, which was adopted in 1986, currently reads as follows: "Card rooms/gaming clubs should continue to be uses which are not permitted in any zone district in South San Francisco, unless a majority of electors voting thereon affirmatively approve a measure permitting legal gambling within South San Francisco. Card rooms which presently exist in the community should be phased out of existence. Without the approval of the electors set forth above, no new card rooms/gaming clubs should be allowed in the community, nor should the existing nonconforming card rooms be allowed to expand in area or in the number of tables operated or to relocate to another area of the City." This policy and similar language in the current Municipal Code provisions regarding gaming clubs establishes a local requirement for an election. Policy 47 and the Municipal Code section were adopted by a prior City Council nine years ago under different conditions. Pursuant to Government Code section 65358, the City Council may amend a general plan if the city Council finds the amendment to be in the public interest. Items such as raising revenue or imposing appropriate land use controls are in the public interest. Any such city Council approved General Plan amendment would require compliance with the California Environmental Quality Act (hereafter "CEQA"), as well as the public review process mandated DATE: TO: FROM: SUBJECT: PAGE: June 14, 1995 Honorable Mayor and City Council City Manager and City Attorney GAMING CLUB ISSUES 4 by state law. This process would include public hearings before the Planning Commission and the City Council. With regards to the General Plan amendment, state law provides that "[t]he degree of specificity and level of detail ... (of each portion of the General Plan) shall reflect local conditions and circumstances." (Gov. Code § 65301.) Thus, if the City desired to take an incremental step from the existing Policy 47, it could do so by retaining the election requirement for a significant portion of the City while permitting, subject to some City approved procedure, gaming in certain locations of the City, through the public hearing process, deemed appropriate. For example, if the city Council desired to give direction to process an amendment to the General Plan, including the East of 101 component, that would authorize cardroom/gaming clubs at a specific area, the City Council could direct staff to prepare a General Plan amendment which could amend Policy 47 to read as follows: "Except as provided herein, cardrooms/gaming clubs are not permitted in any zone district in South San Francisco, unless a majority of electors voting thereon affirmatively approve a measure permitting legal gambling within South San Francisco. Cardrooms which presently exist in the community should be phased out of existence. Except as provided herein, without the approval of the electors set forth above, no new cardrooms/gaming clubs should be allowed in the community, nor should the existing nonconforming cardrooms be allowed to expand in area or in the number of tables operated or to relocate to another area of the City. On the basis of (1) the unique physical location of the 'Shearwater' area including land located east of Highway 101 and north of Oyster Point Boulevard in that it is physically separated from residential areas of the City by U.S. Highway 101 and that it provides immediate freeway access via the Oyster Point Interchange, and (2) the portions of the site will require extensive remedial actions given the presence of contaminants, the City or Redevelopment Agency may approve a cardroom/gaming facility in an area East of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site." The amendment could also amend the East of 101 Plan to clarify the limited area where such a card club/gaming facility would be permissible. The City Council may also wish to direct staff to add to the proposed language a requirement that any such facility~ DATE: TO: FROM: SUBJECT: PAGE: June 14, 1995 Honorable Mayor and City Council city Manager and City Attorney GAMING CLUB ISSUES 5 be proposed and developed as part of a larger development project for the entire Shearwater site. Given the state law requirements for public hearings and comment, any City Council direction would serve as the starting point for the public hearing and comment process that would follow. During this public review process, the language as proposed may be amended based on public, Planning Commission or City Council input. If this course of action is desired by any member of the city Council, that member may wish to make the motion set forth in Attachment A, included herewith. If such a motion is adopted, staff would prepare the appropriate reports and environmental analysis and begin the public review process. The General Plan amendment would be processed concurrently with the project proposed by Baywest and Hollywood Park. Option Z: Place a city Council sponsored initiative on the ballot to determine whether gaming that may be regulated at the local level should be allowed and where such gaming may occur. If the City Council determines that an election is appropriate, there are several options the city Council should consider prior to providing direction to staff. In summary, these include the items covered by the initiative and whether the initiative should be presented to the voters at a special or general election. The first issue presented is what should be included in the initiative. The city Council has at least three options, including (1) asking only whether a cardroom/gaming facility should be permitted at a specific location; or (2) combining option number one with a General Plan amendment authorizing gaming at a particular location, or (3) combining option number two with an amendment to the Municipal Code provisions related to card clubs. Additionally, the city Council should also consider whether the question should be limited to cardrooms or should include all forms of gambling which may be regulated at the local level, thereby including bingo. Starting with the last issue first, during a recent city Council meeting, the issue was raised with regards to whether or not bingo, as one of the forms of legally permissible gambling in California and one that may be regulated at the local level, should be included in the broader discussion of permissible gaming activities in the city. Article IV, Section 19 of the California Constitution provides, in pertinent part, that "the Legislature by CENTRAL RECC~ DATE: TO: FROM: SUBJECT: PAGE: June 14, 1995 Honorable Mayor and City Council City Manager and City Attorney GAMING CLUB ISSUES 6 statute may authorize cities and counties to provide for bingo games, but only for charitable purposes." State law authorizes cities to both permit bingo and to regulate it. Currently, the City regulates bingo in Chapter 6.32 of the South San Francisco Municipal Code. If the City Council deems it appropriate to include bingo in any form of the initiative question that the City Council may present to the voters, it may do so by adopting the draft resolutions included herein which include the question of whether bingo is permissible. If the City Council decides not to include bingo in any initiative presented you may do so by adopting one of the resolutions exclude bingo. Option 2A: An initiative asking whether any form of gaming that may be regulated at the local level should be allowed. Returning to the initial option, the City Council may, if it desires, merely place the language of Business and Professions Code § 19819 before the voters of South San Francisco. Under this scenario, the initiative would ask the voters the following question: "Shall card clubs in which any games permitted by law, such as draw poker, low-ball poker and panguingue (pan) are played be allowed in South San Francisco?" Under this initiative wording, the voters would be asked to decide whether card clubs would be allowed in South San Francisco. If approved by the voters, General Plan Policy 47, as currently written, would be satisfied. One important attribute of this version is that it is not site specific as it relates to card clubs. However, this would not mean that card clubs could be located anywhere in the city. First, Policy 47, which includes the only discussion of gaming uses in the 1986 General Plan, is set forth in the Commercial and Office Land Use section of the General Plan, thereby indicating that it would be prohibited in all other districts. Second, the East of 101 Plan, which serves as the general plan for the East of 101 area, does not expressly permit cardrooms/gaming clubs anywhere in the East of 101 area. Thus, if this version of the initiative was placed before the voters and approved, the location of card clubs would most appropriately be resolved through a General Plan amendment which could identify appropriate land use districts or specific areas. DATE: TO: FROM: SUBJECT: PAGE: June 14, 1995 Honorable Mayor and City Council City Manager and City Attorney GAMING CLUB ISSUES 7 If the City Council were to include in this initiative the issue of whether bingo should be permissible in South San Francisco, and if the voters did not approve the initiative, then all forms of gambling permissible at the local level, including bingo and cardrooms, would be prohibited. Option 2B: An initiative to determine whether a new card club may be allowed in an area East of Highway 101 and north of Oyster Point Boulevard at or adjacent to the Shearwater/U.S. Steel site. The next option available to the city Council is to call for an election On an initiative worded to incorporate both the question of whether a card club should be allowed and to include language identifying the site specific language.1 The initiative measure could read as follows: "Should any new card clubs in which any'games permitted by law, such as draw poker, low-ball poker and panguingue (pan) be allowed in an area East of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site as described herein in Exhibit A? If adopted, this option would satisfy the vote requirement of existing General Plan Policy 47 as to any potential development of a cardroom/gaming club located within the City and would not therefore require an amendment to Policy 47. Additionally, this version of the initiative language, similar to Option 2A could be amended to determine whether or not bingo should be permissible within the City. This version of the initiative would not, however, resolve the fundamental land use issues related to development of card club/gaming facility at or near the Shearwater site. Specifically, since the East of 101 Plan (which serves as the general plan for land use issues in the East of 101 area) does not specifically permit nor prohibit card clubs in the Planned Commercial or Planned Industrial areas, a General Plan amendment would be appropriate to clarify exact policy and a zone change would be mandatory to conditionally permit such a use. DATE: TO: FROM: SUBJECT: PAGE: June 14, 1995 Honorable Mayor and City Council City Manager and City Attorney GAMING CLUB ISSUES 8 Option 2C: An initiative amending General Plan Policy 47, East of 101 Plan, and the South San Francisco Zoning ordinance (Title Z0) to allow a cardroom/gaming facility in an area East of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site and to require an election elsewhere. An additional option the City Council may consider (1) combines the site specific approval set forth in Option 2B with an amendment to General Plan Policy 47,2 the East of 101 Plan, and the South San Francisco Zoning ordinance and (2) establishes a General Plan and zoning amendment which provides the framework for authorizing a card club/gaming facility, among other items, in an area East of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site. The entire text of such a proposed initiative is set forth in the resolutions for Options 2C and 2D, however, the primary provisions would amend Policy 47 to read as follows: "Except as provided herein, cardrooms/gaming clubs are not permitted in any zone district in South San Francisco, unless a majority of electors voting thereon affirmatively approve a measure permitting legal gambling within that zone district. Cardrooms which presently exist in the city should be phased out of existence. Except as provided herein, without the approval of the electors set forth above, no new cardrooms/gaming clubs should be allowed in the City, nor should the existing nonconforming cardrooms be allowed to expand in area or in the number of tables operated or to relocate to another area of the City. On the basis of (1) the unique physical location of the 'Shearwater/U.S. Steel' site in that it is physically separated from residential areas of the City by U.S. Highway 101 and that it provides immediate freeway access via the Oyster Point interchange, and (2) the fact that portions of the area will require extensive remedial actions, given the presence of contaminants, the City or Redevelopment Agency may approve a cardroom/gaming facility at or near the ~Shearwater/U.S. Steel' site." and (3) amend page 70 of the East of 101 Area Plan by adding: · "In addition to the land use policies contained herein related to Planned Commercial development in general, the permissible land uses in the area East of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site may include recreational uses, DATE: TO: FROM: SUBJECT: PAGE: June 14, 1995 Honorable Mayor and city Council City Manager and City Attorney GAMING CLUB ISSUES 9 including a card club/gaming facility. Said facility may only be approved by the City Council or Redevelopment Agency as a conditional use or through an owner participation agreement and then only as part of a Planned Commercial development of the entire Shearwater site. Said approvals may only occur following environmental review in compliance with the California Environmental Quality Act." This version of the initiative would also amend section 20.24.070 of the Planned Commercial portion of the zoning code to allow a card club/gaming room approval through a conditional use permit or owner participation agreement a card room/gaming club in a planned commercial but only where such a use is permissible in the City's General Plan. If the draft initiative incorporating these provisions were adopted as proposed, then General Plan amendments could only be amended by vote of the electorate. Additionally, a cardroom/gaming facility could be approved through either a Conditional Use Permit or an Owner Participation Agreement. The approval of an Owner Participation Agreement or Conditional Use Permit would require CEQA compliance as well as public hearings of the City Council and/or the Redevelopment Agency prior to any action approving or denying the Conditional Use Permit or Owner Participation Agreement. This option could also be amended to include the issue of whether or not bingo should be permissible in South San Francisco. Option 2D: An initiative amending General Plan Policy 47, the East of 101 Plan, and the Zoning ordinance (Title Z0) to permit a card club in an area East of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site and requiring an election if any club or expansion of an existing club is requested elsewhere in the city, and amending Chapter 6.36 of the Municipal Code related to card clubs. This proposed initiative would be same as option 2C except that it would include the proposed amendment to Chapter 6.36 of the Municipal Code related to card clubs. The proposed amendment to Chapter 6.36 is discussed in detail in the staff reports prepared by the Police Chief and Finance Director. If the draft initiative incorporating these provisions were adopted as proposed, then the General Plan amendments could only be amended by vote of the electorate. Additionally, a DATE: TO; FROM: SUBJECT PAGE: June 14, 1995 Honorable Mayor and City council City Manager and City Attorney GAMING CLUB ISSUES 10 cardroom/gaming facility could be approved through either a Conditional Use Permit or an Owner Participation Agree~nent. The approval of an Owner Participation Agreement or Conditional Use Permit would require CEQAcompliance as well as public Hearings of t~e City Council and/or the Redevelopment Agency prior to any action approving or de~¥ing r~e Conditional Use Permit or Owner Participation Agreement. The municipal code provision~ related to c~rd clubs s~t forth in Chapter 6.36 could be a mended by the City council. Finally, this initiative could also be amended to include the issue of whether bingo should be permissible in south san Francisco? Election Timelines The final issue presented is the date of the election, assumingthe City Council deems it appropriate to hold an election. The City Council may present any of the proposed initiatives at either a special municipal election or at the general election. In tither event, the election must be called by resolution of City Council at least 88 days before the election. The general election is ~cheduled for Nove~f0er 7, 1995, t~us, the deadline to place an initiative onthe general election ballot would be Augus~ 10, 1995. A special election must also be called at lea~t 8~ days before the election. In most circumstances, a special election must also be held within 103 days from the date the election is called. However, there is an exception if the required date, based on the 88-103 day window, falls within six month~ of a general election. In that instance, the City may ad~ the initiative item to the general election ballot. Thus, for example, if a special election was called for on June 14, 1995, the earliest date on which the election could occur would be Septe~Der 12, 1995. As a final note, the ordinance calling for a general municipal election in Nove~er i3~.h~de a ~all for an election for the two Wi~ e~i~ Nove.q~er Cit Council p ~itio se . City Manager City Attorney Attachments DATE: TO: FROM: SUBJECT: PAGE: June 14, 1995 Honorable Mayor and City Council City Manager and City Attorney GAMING CLUB ISSUES 11 ENDNOTES Under existing law, an initiative may include more than one specific item as long as "all of its parts are reasonably germane" to one another. (Raven v. Deukmejian (1990) 276 Cal.Rptr. 326.) One court has said that something is reasonably germane if it is "auxiliary to and promotive of its main purpose, or has a necessary and natural connection with such purpose." (Brosnahan v. Brown (1982) 186 Cal. Rptr. 30.) Thus, if the primary subject is whether gambling is permissible, then auxiliary subjects such as where it may be permissible are "reasonably germane" and may be included on the same initiative. As a sidenote, one unique element of any initiative based General Plan amendment is that the City Council or the voters may place an issue on the ballot without first requiring environment review pursuant to CEQA and without going through the typical process for a city Council approved General Plan amendment. (Stein v. City of Santa Monica (1980) 168 Cal.Rptr. 39; Lee v. City of Lompoc (1993) 18 Cal.Rptr. 389.) %405%memo% j une95 \gamrpt. 607 ~ROPOSED ~CTION ?IMING CLUB ISSUES - ~CTION "'TRIX THE Q~NERAL ~CTION PLANT SITE GENERAL PLAN AMEND~ CITY COUNCIL APPROVAL - w0uld permit card club at Shearwater Site .and require an election elsewhere in City Yes Yes, as presented EIR and public review before GP amendment INITIATIVES Shall card clubs be allowed in SSF? [Initiative option 2Al No, but satisfies GP policy $47 2. Shall a card club at the No, but Yes U.S. Steel/Shearwater satisfies site be allowed? GP Policy [Initiative option 2B] ~47 3. Shall the General Plan be Yes Yes amended to allow a card club at Shearwater and still require elections for card clubs elsewhere? 4. Shall the General Plan he Yes Yes amended to allow a card club at the Shearwater Site and still require elections elsewhere and should the card club ordinance amendment be approved? No None None* None* None* *An EIR would still be needed for any project requiring a conditional use permit or agreement. Bingo: The issue of whether or not Bingo should be permissible in SSF can be added to any initiative options. Election Timing: an initiative may be placed on the General Municipal Election ballot for November 7, 1995 [which must be called at least 88 days prior to november 7], or the initiative may be placed on a Special Election ballot [which must be called at least 88 days prior to the Special Election date]. ~ ATTACHMENT A MOTION LANGUAGE FOR GENERAL PLAN AMENDMENT A motion that staff process, for Planning Commission and City Council consideration a General Plan amendment including an amendment to the East of 101 Plan and a zoning code amendment is substantially the following form. General Plan Policy 47 would be amended to read as follows: "Except as provided herein, cardrooms/gaming clubs are not permitted in any zone district in South San Francisco, unless a majority of electors voting thereon affirmatively approve a measure permitting legal gambling within South San Francisco. Cardrooms which presently exist in the community should be phased out of existence. Except as provided herein, without the approval of the electors set forth above, no new cardrooms/gaming clubs should be allowed in the community, nor should the existing nonconforming cardrooms be allowed to expand in area or in the number of tables operated or to relocate to another area of the City. On the basis of (1) the unique physical location of the 'Shearwater' area including land located east of Highway 101 and north of Oyster Point Boulevard in that it is physically separated from residential areas of the City by U.S. Highway 101 and that it provides immediate freeway access via the Oyster Point Interchange, and (2) the portions of the site will require extensive remedial actions given the presence of contaminants, the City or Redevelopment Agency may approve a cardroom/gaming facility in an area East of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site." Staff should also process an additional general plan amendment to the East of 101 Plan which would read substantially as follows: "In addition to the land use policies contained herein related to Planned Commercial development in general, the permissible land uses in the area East of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site may include recreational uses, including a card club/gaming facility. Said facility may only be approved by the city Council or Redevelopment Agency as a conditional use or through an owner participation agreement and then only as part of a Planned Commercial development of the entire Shearwater site. Said approvals may only occur following environmental review in compliance with the California Environmental Quality Act." Finally, staff should process an amendment to the zoning ordinance to implement these general plan amendments. DATE: TO: FROM: SUBJECT: June 14, 1995 Honorable Mayor and city Council Director of Finance Card Room Ordinance-Revenue Section RECOMMENDATION It is recommended that the City Council conduct a public hearing and adopt the card room ordinance as presented with regard to subsections 6.36.290 and 6.36.300 covering Annual License Tax and Gross Revenue License Taxes. BACKGROUND/DISCUSSION The intent of Section 6.36.290 is to provide an Annual License Tax which will cover the approximate cost of increased police staff and an auditor in the Finance department. With respect to this License Tax, the Gross Revenue License Tax in Section 6.36.300 would offset the cost to this licensee. The estimated Annual License Tax would be $600,000 dollars. The Gross Revenue License Tax would conform to the following schedule: TOTAL MONTHLY GROSS REVENUE MONTHLY LICENSE TAX (Maximum Tax Generated) (1) Less than $ 500,000 (2) $ 500,001 to $2,500,000 (3) $2,500,001 to $5,000,000 (4) $5,000,001 to $7,500,000 (5) $7,500,001 and up 10% 11% 12% 13% -0- $200,000 $475,000 $775,000 $775,000 + 13% over $7,500,001 An alternative schedule would be available if the licensee decided to advance License Tax to the City. This alternate schedule would reflect rates discounted at % (.5) percent from the previous rates presented here. In the case of such advance, the repayment would be made to the licensee out of Monthly License Tax revenue over a 60 month or less schedule. , /- CENTRAL RECORD5 ~ILJ~ NO. Card Room Ordinance-Revenue Section June 14, 1995 Page 2 If it is the pleasure of the City Council, I would recommend the license fee and monthly taxes as contained in the ordinance in sections 6.36.290 and 6.36.300. By: ~ ~ Approved: Mike Brooks Director of Finance Michael A. Wilson City Manager cENTRAL- R F..cORD~ DATE: TO: FROM: SUBJECT: June 14, 1995 The Honorable Mayor and City Council Chief of Police An Ordinance Amending Chapter 6.36 of the South San Francisco Municipal Code Regulating Cardclubs Recommendation: It is recommended that the City Council waive further reading and introduce the ordinance amending Chapter 6.36 concerning cardclubs. Background/Discussion: At a Study Session on January 18, 1995, the City Council heard a presentation by representatives of the Bay West Group and Hollywood Park for the proposed development of the 45 acre Shearwater Redevelopment Project Area which would include 400,000 square feet of promotional retail and a 110,000 square foot cardroom casino with a capacity of up to 150 tables. The City Council, after hearing the presentation directed staffto (1) prepare a report for the Council which would outline the necessary steps the City must take to consider such a proposal, and (2) to amend the City's current cardroom ordinance to regulate our existing two non-conforming cardrooms as well as a new large facility. The informational report was presented to Council at the April 12, 1995 Council meeting. The proposed cardclub ordinance is more comprehensive than the existing ordinance in relation to identifying the permits and licenses that operators and employees would be required to obtain, the procedures and background evaluations that would be required for consideration of issuance of such permits and licenses, establishing restrictions on the transferability of such permits as well as revocation/suspension procedures. The revised ordinance includes maximum limits on the number of facilities and gaming tables allowed in the City, and includes comprehensive security and regulatory requirements involving both the safety of patrons as well as the operations of the facility and games (i.e., cheating and fraud statutes, IRS reporting, comprehensive surveillance and security elements, employee extortion sections, exclusion authority for persons involved in inappropriate behavior, etc.). Gaming tax sections and recommended amounts have been added CENTRAL. RECORE~, ~"11 m=' NO. ~-''~'''~;~ <~ with specific dollar amounts to be approved by Council prior to adoption of the ordinance. Application and annual renewal fee sections are included, with amounts to be set by future Council resolution. Sections have also been included in the Code to reduce the likelihood of undue political influence in relation to gaming and gaming clubs (i.e., sections prohibiting campaign contributions and employment of City employees and/or family members, etc.). The proposed ordinance is far more comprehensive and detailed than our current cardclub chapter; therefore, a listing of all differences and changes would be very lengthy. However, the following are the most significant elements of the proposed ordinance which merit comment or clarification: Sections 6.36.040 to 6.36.160 - Permits, Licenses, Fees and Revenues o A "license" is issued for the cardclub operation; "permits" are issued to individuals connected with the club. A limitation on the total number of tables allowed in the City has been set at 150 and only one cardclub, in addition to the two existing non-conforming clubs, may be established in the City. City officials and employees and members of their immediate families shall not be eligible to apply for cardclub licenses or employee permits. Elements are incorporated to deal with initial license and permit applications as well as new and additional permit applications. 5. The ordinance recognizes the need and sets policy for issuance of conditional permits. A cardclub operations certificate provision is included which is similar to the certificate of occupancy process currently used for routine development in the City. ° Some gross revenue license tax amounts have been specified based upon comparable amounts in other cities and after review and input from the current applicants. Application and renewal fee amounts will be set through future Council resolution. The initial application and annual license fees would cover the expense ofbackgrounding the applicant and 20 pointholder/key management personnel (amounts in other cities are set at about $35,000), and the annual license and renewal fee (typically $25,000) would cover annual background updates on the same 20 plus individuals. 9. Provisions are included which allow Council to disapprove specific individuals from involvement in the club. 10. The initial cardclub license would be good for five years and then be renewable each subsequent year. Key management, pointholder and building owner permits are renewable annually, while employee permits are renewable every two years. Background information on all classes of individuals are required to be updated annually. Section 6.36.170 to 6.36.280 - License Transferability, Suspension, Revocation and Personnel Backgrounding 11. Cardclub licenses (new and non-conforming) are not transferrable and license transfers are considered as completely new applications. 12. Regulations and processes for transfers of pointholder interest are clearly spelled out. 13. Latitude and authority for the City Manager to easily suspend permits and licenses has been included while still providing permittees and licensees due process. Penalty sections are included in the event required taxes and fees are not paid in a timely fashion. 14. The City Manager and Chief of Police are granted subpoena authority in order to properly conduct cardroom related hearings. 15. All employees of the cardclub will have background checks conducted and will be required to prominently display their employee I.D. cards. Different levels of background investigation will be conducted dependent upon the nature and level of cardclub employment and contact with the gaming floor. 16. Provision is made for rebackgrounding employees who receive a significant promotion. 17. Appeals processes for license and permit suspension and revocation are clearly detailed. 6.36.290 to 6.36.330 - Tax and Audit Requirements 18. Financial audit provisions are included to best assure that internal cash flow operations are proper, and to assure that the City receives its fair share of revenue. 19. Applicants are required to keep detailed records, reports and tapes, and that the City has complete unrestricted access to all records and facilities. 20. IRS reporting and cash transaction log requirements are included to allow the City to take action on the cardclub license in the event the club violates IRS regulations. Reporting and log requirements are consistent with Nevada reporting requirements and are far more comprehensive than IRS procedures in place in any other California cardclub. 6.36.340 to 6.36.380 - Operational and Games Rules and Regulations 21. Sections prohibiting the farming out of any games are included to restrict the likelihood of organized crime influence in the cardclub. 22. Extensive cheating sections and definitions are included to limit the likelihood of individual and collusive cheating and fraudulent acts. 23. Eighteen fraudulent acts sections that are consistent with Nevada gaming regulations are included to assist cardclubs and the police in taking appropriate action against persons who victimize the cardclub and/or its patrons. 24. Allowable games will still be approved by Council resolution; there may be a difference between games that may be allowed in a new club as opposed to the two existing non- conforming clubs based on the difference in club's ability to surveil and supervise such activities. Requirements are included that require copies of game rules to be filed with the City and available to patrons in various languages. 25. Provisions are included to allow cardclubs to provide players' bank services so patrons can deposit funds rather than leave the club with large amounts of cash, making themselves targets for robbery. Restrictions are included to reduce the likelihood of such accounts being used for laundering illicit money. 26. Restrictions have been included to limit the ability of in-house employee extortion for preferential jobs or table assignments. 27. Limitations on how the cardclubs can charge for seat rental and drop charge fees have been included and are consistent with state law. 28. Cardclubs will not be allowed to give away alcoholic beverages to induce play. 29. Provisions have been included to provide for detailed review and approval ofcardclub site security by the Police Department. 6.36.390 to 6.36.420 - Licensee Rights and Unlawful Acts 30. An entire section has been included listing the rights of the licensee and cardclub to facilitate their ability to exclude and detain individuals who engage in inappropriate activity such as wearing gang attire, being under the influence of drugs or alcohol, loitering, failing to abide by instructions ofcardclub employees, etc. 4 31. An unlawful acts section includes prohibitions citywide for engaging in unlawful gaming. Sections are included to reduce the likelihood of undue negative political influence by restricting campaign contributions from cardclub operators/employees, prohibiting employment of City employees or members of their immediate families and prohibiting any City employee from owning stock or having any type of interest in the cardclubs, equitable or otherwise. 6.36.430 - Preexisting Cardclubs 32. A section is included that defines and clarifies the rights of the two existing non- conforming cardclubs so as to allow them to function at their current limited level with as little impact on their operations as possible. The impact of the proposed ordinance on the existing non-conforming cardclubs is not significant as the majority of the initial licensing, approval processes and fees are not applicable to the existing clubs as they would be considered licensed by the City upon adoption of the revised ordinance (Section 6.36.430), and would be subject to existing limitations on the number of tables allowed, current per table fees and games allowed. The revised ordinance would in fact benefit the existing cardclubs by allowing increased single bet limits and the use of"player banks", and provides the current operators with more in-depth employee screening, far greater control over cheating activity and other fraudulent acts, and provides a section that expands the operator's rights to control activity on their premises and exclude persons for inappropriate behavior or actions. The proposed ordinance purposely does not include some restrictions on operations that City staff in other jurisdictions feel are important issues in their individual cities, such as: There are no marketing restrictions on cardclubs advertising their business to increase patronage or induce people to play games. 2. There are no single bet maximum limits included. There is no open ended language that would allow the cardclub operators to conduct any games not specifically enumerated as illegal by Penal Code definition to be played. This is commonplace in other existing cities with clubs and leads to cardclubs intentionally introducing questionable games, even over law enforcement objection, and operating such games until such time as the courts resolve the legality issue. There is no provision in the ordinance to require a mandatory drug testing program in cardclubs in our City. This provision is not in any other city's ordinance either, but has been suggested by other agencies as a potential element to reduce the likelihood of employee related problems caused by individual drug use. 5 The new cardclub applicants, as well as the existing non-conforming cardclub operators, have been afforded the opportunity to review drafts of the ordinance and provide suggestions for modification. Many of the areas of concern brought forward by their review have already been incorporated in the current draft. Summary: The draft ordinance before Council is a compilation of the best elements of 20 existing cardclub ordinances, as well as elements suggested as a result of interviews with city staff and cardclub representatives on shortcomings and limitations on their own ordinances or operational procedures. In addition changes have been incorporated after review of this document by existing and proposed cardclub operators. Staff believes that the proposed cardclub ordinance will provide the City with an excellent comprehensive tool for regulation and enforcement of cardclub activities for new and existing cardclubs. By: Mark J. Raffael~/ Approved: Chief of Police . .~ ./ ...., Michael Wilson City Manager 6 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 6.36 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE RELATED TO REGULATIONS FOR CARD CLUBS The City Council of the City of South San Francisco does ordain as follows: Section 1 Chapter 6.36 of the South San Francisco Municipal Code is hereby amended to read: Chapter 6.36 ~CARD CLUBS REGULATED~ Sections: 6.36.010 6.36.020 6.36.030 6.36.040 6.36. 050 6.36.060 6.36.070 6.36.080 6.36.090 6.36.100 6.36.105 6.36.110 6.36. 120 6.36. 130 6.36. 135 6.36. 140 6.36.150 6.36.160 6.36. 170 6.36. 180 6.36.190 Findings and Purpose Definitions Confidential Disclosure Unlawful Permits and Licenses Required Limitation on Number of Licenses and Number of Tables License and Permit Application Procedure Card Club License Application Building Owner, Pointholder and Key Management Employee Permit Applications Card Club Operations Certificate Application Application Fees Special Assignment Fees Application Review and Approval Procedures Card Club License, Pointholder Permit and Key Management Employee Permit Approval Process Card Club Operations Certificate Approval Process Amendment of Card Club Operations Certificate Issuance of Permits or Licenses Expiration of Permits and Licenses Renewal of Card Club Licenses Transfer and Assignment of Licenses Transfer of Interest of Pointholder in Card Club Investigations - Updating June 9, 1995 ! 6.36.200 6.36.210 6.36.220 6.36.230 6.36.240 6.36.250 6.36.260 6.36.270 6.36.280 6.36.290 6.36.300 6.36.310 6.36.320 6.36.330 6.36.340 6.36.345 6.36.350 6.36.360 6.36.370 6.36.380 6.36.390 6.36.400 6.36.410 6.36.420 6.36.430 Suspension and Revocation of Card Club Permits and Licenses City Manager/Chief of Police Subpoena Authority Procedure for Card Club Permits and Licenses Revocation or Suspension No Application Upon Revocation Registration, Fingerprinting and Photographing of Employees of Licensed Card Clubs Employee Registration/I.D. Denial of Application Employee Registration/I.D. Expiration and Renewal Employee Registration/I.D. Suspension and Revocation and Appeals Employee Registration/I.D. Denial Appeals Annual License Taxes Gross Revenue License Taxes Audit/Reporting Required Records, Reports and Supplemental Information Access to Records and Facilities Card Club Operational and Games Rules and Regulations Seat Rental and Drop Charge Fees Card Club Site Security Violations Changes in Rules and Regulations Emergencies Rights of Licensee and Card Club Administration of Chapter by City Manager Unlawful Acts Penalties Preexisting Card Clubs 6.36.010 FINDINGS AND PURPOSE (A) The operation of card clubs within the State of California in strict compliance with its gaming laws has been demonstrated to be a successful means of generating revenues for local governments. It is found and determined that, with the City's present population, one gaming club, in which only those games permitted under the laws of California are played, if authorized by the City Council, shall be allowed in the City of June 9, 1995 2 South San Francisco for the purpose of creating new jobs and new revenue for the South San Francisco community. (B) It is found that the public health, safety and welfare require the establishment of regulations pursuant to, and in conformity with, the State Gaming Registration Act. The City finds it necessary to regulate, among other things: (1) The persons who will own, operate or be employed in card clubs. (2) The persons who will own the building in which the card club will be located and who will operate non-gaming activities at the site. (3) The number and size of card clubs in the City. (4) The operation of card clubs in the City. (5) The issuance of permits and licenses, including limitations on transfer and assignment for card clubs. (C) There are two card clubs currently in existence in South San Francisco and these card clubs have previously been and continue to be identified as preexisting legal nonconforming uses. These card clubs were previously regulated pursuant to the former Chapter 6.36. It is the intent of the City Council that this chapter shall apply to and regulate the two existing card clubs as well as one additional card club that may be approved pursuant to the provisions of this Chapter. However, while the preexisting lawful nonconforming clubs shall be subject to the regulatory provisions hereunder, nothing in this ordinance shall be interpreted to allow the pre-existing lawful non-conforming card clubs to expand the scope of their existing use beyond their current non-conforming status. 6.36.020 DEFINITIONS For the purpose of this chapter, certain words and phrases used herein are defined as follows: (1) "Applicant" shall mean every person who applies for a license to operate a card club and every individual who requests a permit as provided for by this chapter. (1.5) "Building Owner" shall mean the person or persons who own[s] the building in which the Card Club is operated and who may, among other things, Lease the building to the Card Club June 9, 1995 3 operator and who may also operate or conduct ancillary services such as food and beverage sales, retail sales, entertainment activities, and personal services. (2) ~'Card Club". shall mean a business, activity or enterprise conducting card games, as defined by this section, and licensed under the provisions of this article. (3) "Card Club Operations Certificate" shall mean authorization for a person, licensed to operate a card club, whose pointholders and key management employees have been issued permits, to commence operation of card games at a designated location within a specific building, such operation having been reviewed and approved as being in compliance with parking, zoning, security, fire and various other local regulations. (4) "Games" shall mean all forms of gaming authorized by the State of California including those games not prohibited by the Penal Code, Sections 319 et seq. and 330 et seq, and which are permitted by resolution of the City Council and the terms of the card club operations certificate. (5) ~Card Playing Area" shall mean the physical location within the card club premises where the playing of card games is permitted. (6) "Commence" shall mean and include commence, begin, initiate, start, open and establish. (7) "Conduct" shall mean and include conduct, transact, maintain, prosecute, practice, manage, operate and carry on. (8) ~'Employee" shall mean every individual, employed either as an agent, employee, or otherwise, of the licensee, as defined by this section, or under the direction of the licensee of any card club, with or without compensation. (9) "Gross Revenue" shall mean and include the total amounts received or receivable for seat rental fees, admission fees, administrative portions of tournament entry fees, table revenues and any and all other revenues derived from gaming activities conducted on or within the premises. (10) "Key Management Employee" shall mean every individual, whether or not such individual is a named officer or director of the licensee, with the power to direct operations, or June 9, 1995 4 direct supervisory and general employees of a card club, any individual with the actual or apparent authority to direct the counting of revenue generated by the club, including any person responsible for managing any aspect of the gaming activities conducted at the licensee, whether or not employed by the licensee, and every individual, whether or not such individual is a named officer or director of the Building Owner, with the power to direct operations, or direct supervisory and general employees of the Building Owner. The term ~key management employee" includes without limitation, those individuals who fill such positions as shall be designated by the city Manager as key employees. (11) "Lease" means any formal or informal, written or oral contract or understanding or arrangement whereby any person operating a card club obtains the use or possession of any property, real or personal, to be used, occupied, or possessed in connection with the conduct of games at any card club. The term ~lease" includes, without limitation, payments to an affiliated person under a real property lease, a personal property lease, an unsecured note, a deed of trust, a mortgage, or a trust indenture. (12) "Lessor" means any person who leases any property, real or personal, to a person operating a card club for use in connection with the conduct of games or related activities. (13) "License" shall mean a grant from the City Council authorizing a '~person~' as described by this chapter to operate a card club within the City. (14) "Licensee" means the "person" as described by this chapter, to whom a card club license has been issued pursuant to this chapter. (15) "Owner" or "Pointholder" shall mean any person having an interest, legal or equitable, in a card club license or card club operations permit, or in the ownership of a card club, or in the division of profits or revenue of a card club, whether directly, or indirectly through a partnership, joint venture, closely held corporation or non-publicly traded corporation, or an owner or some one or entity that controls at least ten (10) percent of stock of a publicly held corporation. (16) ~'Permit" shall mean a grant of permission from the City Council to a person allowed by this chapter, allowing such person to become a pointholder in a card club or a key June 9, 1995 5 management employee of a card club licensee within the City. Two types of permits are provided for under this chapter, pointholder permits and key management employee permits. (17) ~'Per$on" shall mean and include any individual, partnership, corporation or combination thereof. (18) ~Point" shall mean any interest whatever, or at all, in the ownership, division of profits, or revenue of a card club, whether legal, equitable, or of whatever kind of character. (19) ~'Premises" shall mean land together with all buildings, improvements and personal property located thereon and related to card club use. (20) ~Proposition Player" shall mean an employee engaged or paid by the licensee for the purpose of starting and/or maintaining a sufficient number of players in a card game. (21) "Purport to commence" and "Purport to conduct" shall mean and include any showing, representation, indication or action which: (a) by means of sign, advertisement, or advertising matter, whether in, upon or about any premises or otherwise; or premises; or (b) by the appearance or arrangement of any (c) by acts or statements of any person, or by the agents, servants or employees of any person, indicates, suggests, holds out, or represents that any person is, would be, or appears to be conducting or in a position to conduct any business referred to in this chapter with the City. 6.36.030 CONFIDENTIAL DISCLOSURE UNLAWFUL Except as required by the California Public Records Act, it shall be unlawful for any individual to disclose to any individual, news organization or any other entity, any data or information required under the provisions of this chapter to be kept and maintained confidential. June 9, 1995 6 6.36.040 PERMITS AND LICENSES REOUIRED (A) It is the declared policy of the City Council that pointholders, building owners and key management employees apply for and be issued permits after an individual personal background investigation, and that such persons be supervised so as to better protect the public health, safety, morals, good order and public welfare. Except as provided herein below with respect to a card club license, no applicant, person, licensee, or permittee shall acquire a vested right in any permit issued, registration, finding of suitability, or approval granted by the City Council or any other action of the City Council at any stage of the proceedings. (B) It shall be unlawful for any person or other entity to commence or purport to commence , within the City any business, activity, enterprise, undertaking, or place where tables or other units of furniture are used directly or indirectly for playing card games for the use of which a fee, commission, or compensation is directly or indirectly charged, accepted or received from players or participants in any such playing of card games until such person or other entity shall have first obtained a card club license and until such licensee has secured a card club operations certificate for the operation of such card games at a specific location, within a specific building under and in compliance with the provisions of this chapter. (C) Any applicant hereunder is seeking the granting of a privilege. Therefore, the burden of proving qualifications to receive such a permit or license is at all times on the applicant. An applicant must accept all risks of adverse public notice, publicity, embarrassment, criticism, financial loss, or all other actions and consequences which may result from activities with respect to reviewing, processing, approving or disapproving any application. A waiver of any claims for damages against the City or its agent resulting therefrom shall be presumed upon the filing of an application. (D) Any applicant hereunder may claim any privilege afforded by the Constitution of the United States in refusing to answer questions by the City Council. However, a claim of privilege with respect to any testimony, evidence, or requested information pertaining to an application may constitute sufficient grounds for denial or revocation of any such license or permit. June 9, 1995 7 6.36.050 LIMITATION ON NUMBER OF LICENSES AND NUMBER OF TABLES (A) With the exception of licenses that will be issued to the two preexisting legal nonconforming Card Clubs, at no time shall there be more than one additional card club license in the City at any one time. The location of additional card club shall be established through the land use approval process. This section shall not be interpreted to authorize any form of physical or use expansion of the two preexisting legal nonconforming Card Clubs. There shall be no more than 150 card playing tables in the City at any one time. The number of tables for a particular applicant shall be determined during the planning and licensing approval process. Licensees shall obtain approval from the City Council prior to expanding the number of tables allowed by their initial and/or current license. (B) Multiple Applications. In the event that there are less card club permits available than there are applications, the permit shall be granted to the qualified applicant whom the City Council, in its sole discretion, determines best meets the following criteria: (1) Least disruptive location (2) Best program for policing the operation (3) Greatest revenue potential for the City (4) applicant Greatest experience and financial ability of (5) Best potential for a quality operation (6) Any other considerations that will protect the public interest In reaching its determination the City Council may consider any staff recommendations, and the determination of the City Council shall be final. 6.36.060 LICENSE AND PERMIT APPLICATION PROCEDURE Any person desiring or proposing to commence or conduct any business, activity, enterprise or undertaking pertaining to or involving a card club, shall file an application with the City Clerk using such forms as are provided by the City. Each application shall contain a statement as follows: "The undersigned applicant(s) declares under penalty of perjury that the foregoing is true and correct under the laws of the State of California and of the United States. June 9, 1995 6.36.070 CARD CLUB LICENSE APPLICATION (A) City officials and employees and members of their immediate families shall not be eligible to apply for card club licenses or permits hereunder or otherwise apply for registration as a card club employee. (B) In addition to other information as may be required by the application forms for a card club license, the applicant for a license shall provide the following information: (1) The date of the application. (2) The true name of the applicant. (3) The status of the applicant as being an individual a sole proprietorship, a partnership or a corporation. (4) If the applicant is an individual, the residence and business address and personal history record of such applicant, specifically including any criminal arrest and conviction record, business and employment history for a period of ten years before the date of the application. (5) If the applicant is other than an individual, the name, residence and business address of each of the copartners or stockholders who qualify as pointholders and the name, residence and business address of each of the officers and directors of the entity. (6) An application, as described in Section 6.36.080 for a pointhotder~s permit, including a personal history record, for every pointholder who has, or is proposed to have, a financial interest, direct or remote, in the proposed card club. (7) An application, as described in Section 6.36.080 for a key management employee's permit, including a personal history record, for each individual who is or is proposed to be a key management employee of the proposed card club. (8) An application should include copies of the Gaming Registration application previously submitted to the State on all qualifying persons, unless waived by the Chief of Police. (9) A development concept including floor plans, site plan, schematics and renderings or as detailed information as is available. (10) A statement of the type and nature of the games proposed to be played, and the rules and fee schedules for such games. June 9, 1995 9 (11) The number of tables or other units to be placed, employed or used. (12) A description of any other business conducted or proposed to be conducted on the premises. (13) A financial plan and source of funding for the development including projected development cost. (14) A statement of the applicant's experience in the operation and management of card clubs or other lawful gambling or other relevant activities. (15) A one year cash flow projection, which shall be a confidential document and not open to public inspection. (16) A statement that such building will conform to all the laws of the State and the City for occupancies of the nature proposed. (17) A complete description and layout of all security measures proposed in as great a detail as available which shall be a confidential document to be reviewed and approved by the Police Department and not open to public inspection. (18) Each application for a license shall include the following: (a) A statement that the applicant understands that the application shall be considered only after a full background investigation and report has been made by such members of the City staff as are designated by the City Manager. (b) A statement that the applicant understands and agrees that any business or activity conducted or operated under any license or permit issued under such application shall be operated in full conformity with all the laws of the State and the laws and regulations of the City applicable thereto, and that any violation of any such laws or regulations in such place of business, or in regulations in such place of business, or in connection therewith, may render any license or permit therefor subject to immediate suspension or revocation. (c) A statement that the applicant has read the provisions of this chapter and particularly the provisions of this section and understands the same and agrees to abide by all rules and regulations contained in this chapter. (d) A balance sheet and income statement prepared in accordance with generally accepted accounting principles. The financial statements required by this subsection shall be confidential documents and shall not be open to public June 9, 1995 10 inspection. Documents shall be available only to the City Council and those officials having direct jurisdiction involving the provisions of this chapter and to any court of competent jurisdiction where any matter relating thereto may be actually pending. The City Manager shall have sole discretion to determine whether the information submitted fulfills the requirements set forth on the application form and in items 1 through 18 herein. 6.36.080 BUILDING OWNER, POINTHOLDER AND KEY MANAGEMENT EMPLOYEE PERMIT APPLICATIONS (A) Applications Filed with License Applications (1) The initial applications for the building owners, the pointholders and key management employees shall be submitted as part of the application for a card club license. (2) Each permit applicant shall be responsible for providing complete and accurate information and for signing the permit application. However, it shall be the responsibility of the card club license applicant (or licensee for subsequent applications) to submit the completed applications and pay any application fees. (3) In addition to such other information as may be required by the application forms for a permit, the permit applicant shall complete and provide the information specified in section 6.36.070 along with a balance sheet and income statement prepared in accordance with generally accepted accounting principles. The City Manager shall have sole discretion to determine whether the information submitted fulfills the requirements set forth on the application form and in this section. (4) Concurrently with the filing of their applications, the building owner, the pointholder and key management employee permit applicants shall be finger printed and photographed by the South San Francisco Police Department. Permit applicants shall authorize the City to obtain any available criminal arrest and conviction offender record information relating to applicant and shall further authorize the updating of that information on an annual basis if a license or permit is granted. (B) New and Additional Permit Applications (1) Applications for building owner and pointholder permits which do not accompany the application for a card club license as provided by Section 6.36.070 shall conform in all respects with the requirements set forth in Section 6.36.180. June 9, 1995 11 (2) Applications for key management employee permits which do not accompany the application for a card club license as provided by Section 6.36.070 shall be completed not less than ten (10) days before the key management employee is scheduled to begin work for the licensee. In addition to other information as may be required by the application forms, the applicant for a permit shall provide the information required by section 6.36.080(A) (3). The City Manager shall have sole discretion to determine whether the information submitted fulfills the requirements set forth on the application form and in this section. (C) Investigations Required (1) Whenever an application pursuant to the provisions of this section has been filed with the City Clerk for a permit pursuant to the provisions of this section, and the fees required by Section 6.36.100 have been paid, the City Clerk shall immediately refer such application, or a true copy thereof, to the City Manager, who shall promptly and diligently cause a full and complete investigation of the applicant to be made, including the following: (a) Concurrently with the filing of an application, each applicant shall be finger printed and photographed by the South San Francisco Police Department and shall authorize the City to obtain any available criminal arrest and conviction offender record information relating to applicant and shall further authorize the updating of that information on an annual basis if the application is approved. (b) A background check including an analysis of the financial information supplied by the applicant pursuant to Section 6.36.080(B). (2) It shall be the responsibility and duty of the City Manager to supervise and direct the Chief of Police to establish the necessary procedures to administer the provisions of this subsection. The information received by the Chief of Police pursuant to the provisions of this subsection shall be treated as confidential. (D) Conditional Permits In recognition of the delays which may be encountered in obtaining all information on each applicant under this section, the City Manager is authorized to issue provisional permits which shall be valid for a period not to exceed six months. Such conditional permits shall include such terms and conditions as may be determined by the City Manager. June 9, 1995 12 6.36.090 CARD CLUB OPERATIONS CERTIFICATE APPLICATION (A) The card club operations certificate shall be issued only to the licensee. (B) The card club operations certificate application shall be submitted to the City Clerk. In addition to other required information as may be set forth on application forms provided by the City, the application shall include the following: (1) Detailed floor plans of the interior of the proposed card clUb facility specifying at a minimum: (a) the location of all card playing areas (b) the manner in which the card playing area(s) shall be separated from other areas (c) the location of any and all other proposed businesses and facilities within the premises. (2) Detailed plans of the parking facilities including a lighting and security plan. (3) A detailed statement of all proposed security measures (both physical and operational) for review and approval by the Police Department. (4) A detailed statement of all plans, both physical and operational, for the handling of money, including but not limited to provisions, if applicable, for: (a) players banks (limited to cash only) (b) counterfeit chips purchase of chips and protection against (c) check-cashing procedures (d) procedures for bringing money to or removing money from the premises (e) procedures for determining and depositing daily gross receipts. (5) An independent evaluation of the internal accounting and administrative control system proposed to be used by applicant. (C) Ail information provided regarding security measures, internal controls, or provisions relating to the handling of cash, chips and cards shall be deemed confidential and shall not be available for public inspection. June 9, 1995 13 6.36.100 APPLICATION FEES (A) Each application for any license or permit shall be subject to fees and deposits payable to the City as follows: (1) An initial license application fee shall be paid to the City for the payment of the costs of the initial background investigation. The fee shall be established by resolution of the City Council. (2) The license application fee provided for in Section 6.35.100(A) (1) above shall cover the investigation costs of the'license application and a combined total of up to twenty (20) pointholder and key management employee permit applications. If a license applicant has pointholders and key management employees exceeding twenty (20) in number, an additional fee per pointholder or key management employee exceeding the twenty (20) shall be paid to the city as payment of the costs of investigation. This additional fee per pointholder or key management employee shall be established by resolution of the City Council. (3) A building owner application fee shall be paid to the City for the payment of the costs of the initial background investigation. The fee shall be established by resolution of the city Council. (4) No additional fee shall be required for the card club operations certificate. (5) Additional fees are hereby imposed to reimburse the City the costs of employee background investigations, background checks for pointholder transfers, and renewal license fees. These fees shall be established by resolution of the City Council. 6.36.105 SPECIAL ASSIGNMENT FEES In addition to the fees specified in Sections 6.36.100, the licensee shall reimburse the City for any reasonable and necessary expenses over and above such fees for special assignment services related to operation of the card club. Special assignment fees shall be based on actual costs to the City to provide city services for atypical events and occurrences such as special event traffic and crowd control, placement of barricades and detours, etc. 6.36.110 APPLICATION REVIEW AND APPROVAL PROCEDURES Whenever an application for a permit or license has been filed and all application and permit fees set forth in Section 6.36.100 are deposited with the Finance Director, the City Clerk June 9, 1995 14 shall immediately refer such application to the City Manager and the Chief of Police. 6.36.120 CARD CLUB LICENSE, BUILDING OWNER, POINTHOLDER, AND KEY MANAGEMENT EMPLOYEE PERMIT APPROVAL PROCESS (A) Investigation and Report (1) Upon receipt of an application for a license, the City Manager shall cause an investigation to be made covering all matters relevant to the proposed activity of the applicant. Such matters may include, but are not limited to, the following: (a) Identity, character and background of the applicant; (b) Interior floor plan of buildings and site plan as to parking, traffic movement and aesthetics; (c) Compliance with the City's General Plan, zoning, security and environmental requirements; (d) Type of tables to be used and their proposed locations, area where food and beverages are proposed to be served and means for excluding persons under 21 years of age from card playing areas; (e) Type and degree of security personnel and facilities to be provided; (f) The financial stability of the pointholders involved in the application and the financial ability of the applicant to comply with the conditions and requirements of the City in the event the application is approved; (2) Upon receipt of an application for a permit, the City Manager shall cause an investigation to be made covering all matters relevant to the proposed activity of the applicant. Such matters may include, but are not limited to, the identity, character and background of the applicant. (3) The investigation of the application shall be completed as soon as practicable after a complete application is received. Following the investigation, the completed report of the investigation together with the City Manager's findings and recommendations shall be forwarded to the city Council. The City Council shall not consider any application for a license or permits until the City Manager's findings and recommendations are forwarded for review. · June 9, 1995 15 (B) City Council Actions Upon receiving the complete card club application and the City Manager's findings and recommendations and evidence that all other necessary permits or approvals that can be obtained have been obtained, the City Council shall make a determination on the permit application within forty-five (45) days. (C) city Council Determination (1) The City Council, by resolution, shall either grant, conditionally grant, or deny the application. If the City Council denies the application, the resolution shall include findings in support of the denial. All such resolutions shall be public records. The City Council may tentatively approve the application of a license applicant, but, disapprove the application for a permit of one or more of the pointholders or key management employees. In such cases the City Council may grant the license applied for subject to the condition that any pointholder or key management employee disapproved of be removed as an individual having any involvement with, or interest or control in the card club. Compliance with the removal condition shall be monitored, reviewed and approved of by the City Manager prior to final issuance of the license. (2) The action of the City Council in accordance with this Ordinance shall be final. (D) Requirements for Issuance of a License (1) In the event a completed application for a license is presented to the City Council, and the fees required herein have been paid, and the investigations and reports required under the provisions of this chapter have been duly completed, the City Council shall have jurisdiction to consider such application. The City Council shall, at minimum, consider the following factors during its consideration of the application for a license: (a) The effect that granting the license may have on business, employment and economics in the City; (b) The financial stability of the building owner and the applicants, including all pointholders; (c) The business and financial history of the key management employees of the enterprise or other manager or active operating heads, including his or her personal history, moral background, reputation and character. (d) Whether issuance of the license and subsequent operation will be detrimental to the public health, June 9, 1995 16 safety and welfare of the citizens of South San Francisco. (e) considerations. Any other relevant data, facts or (E) Grounds for Denial (1) The City Council may, in its discretion, deny or condition a license or permit application for any of the following reasons, without being limited thereto, or for any other reason consistent with the general policy of this chapter: (a) Conviction of any crime punishable as a felony or of any crime of violence, any crime involving fraud, gambling, loan sharking, bookmaking, thievery, bunco, moral turpitude, or any crime.involving evasion of taxes, or any other crime of moral turpitude indicating a lack of business integrity or business honesty, whether committed in the State of California or elsewhere, whether denominated as a felony or as a misdemeanor and notwithstanding the passage of time since the conviction. (b) Failure of the proposed business or activity to be operated in compliance with Federal, State of City law or regulation. (c) Identification by any law enforcement agency, legislative body or crime commission as a member of, or an associate of, organized criminal elements. (d) Making any false statement in the application or as to any other information presented as part of the application process. (e) Failure to satisfy the City Council as to the source of funds to be invested in the proposed venture. (f) Prior unlawful or nuisance creating operation as a card club or gaming licensee in another jurisdiction without regard to whether disciplinary action was taken at that time or whether the acts were sufficient to justify revocation of a license. (g) Applicant does not have the financial capability or business experience to operate a card club in a manner which would adequately protect the patrons of the card club and the citizens of the community. (h) Applicant is presently under indictment or the subject of a criminal complaint for any of the crimes described in paragraph (a) above. June 9, 1995 17 (i) Making or causing to be made any statement in an application or document provided to the City Council or its agents or orally to a City Council member or agent in connection with an application, which statement was at the time and in the light of the circumstances under which it was made, knowingly false or misleading. (j) Lack of evidence that there is adequate financing available to pay potential current obligations and, in addition, to provide adequate working capital to finance opening of the card club proposed. (k) Failure of any person named in the application when summoned by the City Council to appear and testify before it or its agents at such time and place as it may designate. (1) Inadequate security plan. (m) Proposed location of a new card club in an area not authorized by this chapter or the General Plan or Title 20 of the Municipal Code. 6.36.130 CARD CLUB OPERATIONS CERTIFICATE APPROVAL PROCESS (A) City Council to Grant (1) The application for a card club operations certificate and all related materials, including detailed site and floor plans, and detailed statements of security and operations procedures shall be reviewed by the city Manager and 'his or her designee. The plans and specifications required by this section shall be in sufficient detail to obtain building permits. (2) The City Council may grant, conditionally grant or deny issuance of a card club operations certificate in accordance with the criteria set forth in Section 6.36.130(B). (3) The City Council shall approve or disapprove any plans, specifications or proposed procedures within 45 days of receipt thereof. Any disapproval shall be in writing and shall include reasons for the disapproval. Any item neither approved nor disapproved within 45 days shall be deemed denied. The applicant, upon receipt of a disapproval, shall revise those plans, specifications or procedures which are disapproved and resubmit to the City Council within 45 days. (B) Criteria for Issuance of a Card Club Operations Certificate June 9, 1995 18 (1) A Card Club Operations Certificate is required before a card club licensee may commence operations. Prior to city Council consideration of a card club operations certificate, the applicant shall provide evidence that the following conditions have been completed: (a) The applicant has a valid card club license. (b) The card club site has been fully developed in accordance with all plans and specifications submitted to and approved by City and the site has been inspected to verify compliance with all such plans and specifications. (c) The applicant has taken all steps necessary to ensure that the club will be operated in the manner set forth in this chapter and as approved by the City and has documented such to the satisfaction of the city Manager. (d) Ail zoning, environmental, building and personnel security and any other local or state requirements for the design, construction or operation of the card club have been complied with. (e) The applicant has obtained a valid registration from the Attorney General of the State of California issued pursuant to the Gaming Registration Act, or any successor thereto. (C) Required Contents of Card Club Operations Certificate Any Card Club Operations Certificate issued pursuant to the terms of this section shall include: (a) the name of the card club; (b) the address of the card club; (c) a description of the gaming facilities; (d) the maximum number of tables which the card club is authorized to operate; (e) the card games which may be offered at the card club; and (f) such other terms and conditions as may be imposed by the City Council. 6.36.135 AMENDMENT OF CARD CLUB OPERATIONS CERTIFICATE (A) The terms and conditions or other requirements imposed by the Card Club Operations Certificate may be changed by filing an application with the City Clerk stating the specific terms and conditions that the licensee desires to change and the reasons therefor. Any application under this section shall be accompanied by an application fee as established by resolution of the City Council. City Manager shall investigate the application and recommend to the City Council denial, approval or approval subject to additional terms and conditions. (B) The City Council may approve the application (whether .or not subject to conditions) only if it determines that: June 9, 1995 19 (1) The proposed amendment will not result in the substantial aggravation of crime or make law enforcement unduly difficult. (2) The proposed amendment is not detrimental to the public health, safety or welfare. (3) The proposed amendment would not result in the violation of any applicable zoning, fire, building, security or other ordinance. (4) The proposed amendment would be consistent with the purposes and provisions of this chapter and is not contrary to the public interest. 6.36.140 ISSUANCE OF LICENSES OR PERMITS (A) The license, if granted, will be issued only in the name of an individual, a sole proprietorship, a partnership or a corporation. City officials and employees and members of their immediate families shall not be eligible to apply for card club licenses or permits hereunder or otherwise apply for registration as a card club employee. (B) If the action of the City Council, or the City Manager as appropriate, on any application is to grant the same, the Finance Director may thereupon issue the necessary licenses, permits and renewals thereof upon payment of fees as required by this chapter, until such time as such license or permit is either surrendered, suspended, revoked or expires. 6.36.150 EXPIRATION OF PERMITS AND LICENSES (A) Permits and licenses issued pursuant to this Chapter shall be and remain valid until the earlier of expiration of the permit or license term, suspension or revocation by the City Council or City Manager as provided in this chapter or voluntary surrender in writing by the permittee or licensee. (B) Except as herein provided, licenses shall, unless renewed, expire annually on the anniversary date of their issuance. The initial card club license shall be dated as of the day upon which the same is issued and, unless sooner revoked, shall expire at midnight of the fifth anniversary of the date the card club which is the subject of such initial card club license shall commence operations. If the initial card club license shall be surrendered or revoked prior to the end of such fifth anniversary, then the license granted relative to the operation of the card club in lieu of the initial card club license shall expire at the same time that the initial card club license wold have expired (i.e., the fifth anniversary of the date on which the card club commenced operations). June 9, 1995 20 (C) The Card Club Operations Certificate shall be and remain valid as long as the card club license is valid and no physical or procedural changes are made with respect to the items identified in section 6.36.090 or on the card club operations certificate. (D) Ail other permits or licenses issued under the provisions of this chapter shall, unless renewed, expire at midnight on the second anniversary of the date upon which the license or permit was issued or last renewed. (E) In the event of surrender, suspension, revocation or expiration, no permit fee or license fee, or any portion thereof shall be refunded. (F) In the event that a public agency takes possession of the property subject to a card club permit under threat or actual exercise of the power of eminent domain, the permit for the card club shall be deemed to be valid and remain in effect for a period of twenty-four (24) months from the date of closing of the card club, notwithstanding any contrary provisions of this chapter. 6.36.160 RENEWAL OF CARD CLUB LICENSES (A) The holder of a valid card club license issued pursuant to the provisions of this chapter shall be entitled to have the license renewed annually in accordance with the following procedures: (1) An application for renewal of any such license shall be filed with the Finance Director no later than sixty (60) days before the expiration date of the license for which renewal is sought. (2) If such application for renewal is not filed within the time specified by Section 6.36.160(A) (1), such licensee may thereafter file a written application for renewal of any such expired license, but in such event, such licensee shall pay a penalty fee, as established by resolution of the City Council, for each table or unit affected by such renewal, for each day of delinquency. (3) The application for renewal shall be accompanied by the full amount of the required renewal license fee as set forth in Section 6.36.100. (4) The card club licensee shall file with the City Clerk an affidavit made subject to the penalties of perjury on a form approved by the City Attorney containing a full and complete statement including the following information: June 9, 1995 21 (a) Any change in individuals with whom the licensee has any operating agreements pertaining to the licensed operation. (b) Any change in pointholders, the full, true and correct names and addresses of such new pointholders, or trustors for pointholders. (c) The full, true and correct names and addresses of each and every new key management employee. (d) If no changes have occurred from the previous renewal, licensee shall so certify and attest. (B) Failure to make full payment of annual fees or failure to file or filing any false statement in any affidavit and/or certification and attestation as is required by this subsection may be deemed grounds for the revocation of such license pursuant to the procedures set forth in this chapter. (C) If the licensee is in compliance with the requirements of this subsection, and if there have been no material changes in the operation of the card club or in the pointholders, building owners or key management that have not been previously approved by the City, the card club license shall be deemed renewed for another one year period and the Finance Director shall issue such renewal. 6.36.170 TRANSFER AND ASSIGNMENT OF LICENSES (A) Except as otherwise indicated herein, any transfer or assignment of any license shall be considered for all purposes in the same manner as a new application for card club license in the City, and all the provisions of this chapter applicable to new and original applications shall apply; provided, however, that neither mailed notice to adjacent property owners, nor published notice, need be made. Such a transfer shall be made in accordance with the provisions of Section 6.36.180. (B) The provisions of this Section and of Section 6.36.180' shall not apply to any application for or notification of a transfer or assignment by any pointholder who is a member of a bona fide owner operating under a duly issued license to conduct a card club in the City of South San Francisco to a then presently existing pointholder; provided, however, that any transfer of ten (10) points or more, even to an existing pointholder, shall require City approval pursuant to Section 6.36.180. (C) The provisions of this Section and of Section 6.36.180 shall not apply to a transfer of interest between or among family members wherein such transfer is made by devise or testamentary trust, provided that the recipient of said interest has not been: June 9, 1995 22 (1) Convicted of any crime punishable as a felony or of any crime of violence, any crime involving fraud, gambling, loan sharking, bookmaking, thievery, bunco, moral turpitude, or any crime involving evasion of taxes, or any other crime of moral turpitude indicating a lack of buSiness integrity or business honesty, whether committed in the State of California or elsewhere, whether denominated as a felony or as a misdemeanor and notwithstanding the passage of time since the conviction. (2) Identified by any law enforcement agency, legislative body or crime commission as a member of, or an associate of, organized criminal elements. (3) Found by another City or County or Court to have operated a card club in a manner that was either unlawful or that created a nuisance. (4) Indicted for any of the crimes described in paragraph (a) above. (5) Found to have made or caused to be made any statement in any document provided to the City Council or its agents or orally to a City Council member or agent in connection with an application, which statement was at the time and in the light of the circumstances under which it was made, knowingly false or misleading. In the event that any family member who is devisee or tgstamentary trust beneficiary is unqualified, pursuant to this section, to be identified as the licensee, that person may transfer said license to another family member provided that such family member is not disqualified pursuant to items 1-5 herein. 6.36.180 TRANSFER OF INTEREST OF POINTHOLDER IN CARD CLUB (A) Permission Required It shall be unlawful for any pointholder, having any interest whatsoever, or at all, in the ownership of a card club whether legal or equitable, or as trustor or trustee, or of whatever kind or character, to transfer, convey or sell any points and/or interest in a card club to any person who is or by reason of such transaction would become a pointholder without the prior written consent of the City Council. (B) No licensee or pointholder shall knowingly permit any individual, partnership or other entity to make any investment whatsoever in, or in any manner whatsoever participate in the profits of any licensed card club, or any portion thereof, except in accordance with this chapter. (C) No licensee or pointholder shall knowingly permit any investment in any licensed card club or any portion thereof or June 9, 1995 23 participation in the profits thereof by any person acting as agent, trustee, or in any other representative capacity whatsoever for or on behalf of another person without first having fully disclosed all facts pertaining to such representation to the City Council. No person acting in any such representative capacity shall hold or acquire any such interest or participate without first having fully disclosed all facts pertaining to such representation to the city Council and obtained written permission of the City Council to so act. (D) Transfer of Interest and Escrow Required No transfer, sale or hypothecation of a point, or new investment in a card club shall be permitted until the City Council has approved an application for transfer of interest, and until each new pointholder has been granted a pointholder's permit authorizing the holding of such interest in a point. No money or other thing of value constituting any part of the consideration for the transfer or acquisition of any interest in a licensed card club shall be paid over, received or used prior to compliance with all prerequisites set forth in the law and these regulations for the consummation of such transaction. Notwithstanding the foregoing, such funds may be placed in escrow pending completion of the transaction. Any loan, pledge or other transaction in an attempt to evade the requirements of this regulation may be deemed a violation and, as such, would constitute grounds for disapproval of the point transfer. (E) Assignment Any party desiring to buy, sell, accept transfer, assign or otherwise hypothecate any interest of a pointholder in a licensed card club shall file with the City Clerk, on forms approved by the City Attorney, and furnished by the City Clerk, a written application for permission to allow transfer of such interest. Each such application shall contain and clearly and truthfully set forth, under oath and/or affirmation, in addition to such other information as the City Clerk and/or the City Council may require, the following: (1) The date of the application (2) The true name of the applicant (3) The status of the applicant as being an individual, partnership, corporation or other entity. (4) applicant The residence and current business address of the (5) If the applicant is other than an individual, the name, residence and current business address of each co-partner, co-partnership, shareholder (of more than ten (10) percent of the June 9, 1995 24 shares if the corporation is publicly traded corporation) or other interest holders. (6) The name of the licensed card club and the names of the existing pointholders from which a transfer of interest or points is sought. (7) The number of points and/or nature of interest sought to be sold, transferred assigned or otherwise hypothecated. (8) The source of funds to be used by the applicant in acquiring such points or interest. (9) A statement that the applicant(s) understands that the application will be considered by the City Council only after a full investigation and report have been made and the report of investigation forwarded to the City Council. (10) A balance sheet and income statement prepared in accordance with generally accepted accounting principles and submitted under penalty of perjury (but which need not be audited) whether he is an individual, partnership or other entity. (11) The statements required by this subsection shall be confidential, and the documents containing such information shall be deemed to be confidential documents, and shall not be open to public inspection, but shall be available only to those City officials having direct jurisdiction where any matter relating thereto may be actually pending, except that the names and cities and states of residence only of such pointholders shall be open to public inspection, but all other statements and/or documents shall remain confidential. (F) Investigations Required (1) Whenever an application pursuant to the provisions of this section has been filed with the City Clerk for a permit pursuant to the provisions of this section, and the fees required by Section 6.36.100 have been paid, the city Clerk shall immediately refer such application, or a true copy thereof, to the City Manager, who shall promptly and diligently cause a full and complete investigation of the applicant to be made, including the following: (a) Concurrently with the filing of an application, each applicant shall be finger printed and Dhotographed by the South San Francisco Police Department and shall authorize the City to obtain any available criminal offender record information relating to applicant and shall further authorize the updating of that information on an annual basis if the application is approved. June 9, 1995 25 (b) A background check including an analysis of the financial information supplied by the applicant pursuant to this Section. (2) It shall be the responsibility and duty of the City Manager to supervise and direct the Chief of Police to establish the necessary procedures to administer the provisions of this subsection. The information received by the Chief of Police pursuant to the provisions of this subsection shall be treated as confidential. (G) Application Fees For the purpose of clarification, the application fees set forth in this section are for regulation and reimbursement to the City for the costs of investigating and processing the applications. Each such application for transfer of interest of a pointholder to an applicant permittee shall be accompanied by an application fee in an amount established by resolution of the City Council for each pointholder permit applicant, which fee shall be retained by the City for the payment of the costs of the investigation of the applicant. The fees set forth in this subsection shall be the property of, and be retained by, the City, whether the permit and permission to transfer interest in the license is granted or denied. (H) Granting or Denial of Applications (1) Whenever an application for a permit as required under the provisions of this section is presented to the City Council, and the fees required by this section in connection therewith have been paid to the Finance Director, the City Council may consider such application on the basis of the following, without being limited thereto: (a) The financial stability of the applicant (b) Section 636. 120 (E) Conviction of criminal offenses as denoted in (c) Whether the applicant has engaged in any conduct the object of which was to evade cash transaction requirements imposed by law, has been convicted of any such offense or has been subject to the forfeiture of assets on account of any alleged violation of cash reporting requirements. (d) Any other information deemed by the City Council to be matters of necessary inquiry. (2) The CitY Council may, in its discretion, either grant, conditionally grant or deny the permit transfer. The action of the City Council shall be final. June 9, 1995 26 6.36.190 INVESTIGATIONS - UPDATING Ail building owners, pointholders and key management employees of card clubs or other employees promoted into such positions subsequent to their initial employment shall have their background and criminal history investigations updated annually. The card club license annual renewal fee shall be used to cover the cost of such investigations. 6.36.200 SUSPENSION AND REVOCATION OF CARD CLUB PERMITS AND LICENSES (A) Ail permits and licenses authorized and issued under the provisions of this chapter shall be subject to: (1) Immediate suspension by the City Manager if the City Manager finds that: (a) The Attorney General has denied, suspended or revoked an applicant's registration under the California Gaming Registration Act (Bus. and Prof. Code section 19800 et seq.) or any successor thereto; or (b) a permittee/licensee, or any agent or employee thereof with the knowledge of such permittee/licensee, has violated, or permitted, allowed or caused the violation of any provision of this chapter, any regulation issued pursuant to this chapter, any condition of approval imposed upon the issuance of the permit or card club license, or any state law or regulation relating to the operation.of a card club where the continued operation of the club in the light of such violation jeopardizes, or thr'eatens to jeopardize, the' public health, safety, or welfare. (c) Based on ascertainable facts, the operation of the card club substantially aggravates the crime problems in the City, makes law enforcement unduly difficult, or is detrimental to the public health, safety or welfare in the City. (2) Suspension or revocation by the City Manager or his or her designee after not less than thirty (30) days written notice to the permittee/licensee and after testimony has been taken from the permittee/licensee and/or any other interested person, if the hearing officer finds that: (a) The Attorney General has denied, suspended or revoked an applicant's registration under the California Gaming Registration Act or any successor thereto; or (b) A permittee or licensee or any agent or employee thereof, with the knowledge of the permittee or licensee, has violated or permitted, allowed or caused the June 9, 1995 27 violation of any provisions of this chapter, any regulation issued pursuant thereto, any condition of approval imposed upon the issuance of the card club license, or any state or federal law or regulation relating to the operation of a card club; or (c) A permittee/licensee has failed to pay, when due and payable, any of the fees or taxes provided for in this chapter within ten (10) days after written notice of any such failure; or (d) A permittee/licensee has made any fraudulent statements as to a material fact on an application form or as to any other information presented as' part of the application process; or (e) A permittee/licensee knowingly commits any act which would have constituted grounds for denial of an application for a permit or license; or (f) The permittee or licensee has knowingly continued to employ in any card club any individual whom any court has found guilty of cheating or using any improper device in connection with any game, whether as a licensee or player at a licensed game, or any person whose conduct of a licensed game as an employee of a licensee resulted in revocation, or suspension of the permit of such permittee; or (g) The permittee or licensee has been convicted of a crime provided in Section 6.36.120(E). A conviction is suitable grounds for revocation or suspension of the permit or license, prior to the exhaustion of the licensee's appellate rights; or (h) the permittee or licensee has failed to comply with the cash transaction reporting and recording requirements of Section 6.36.320(B) (1). (3) Except as otherwise provided in this chapter, the imposition of a limit, condition, suspension or revocation of a permit of an individual pointholder, key employee or permittee will not affect the license of the card club. (4) The City Manager may order the sale or transfer of points or interest held by an individual pointholder permittee whose permit has been revoked. (5) The City Manager may order a licensed card club to keep an individual pointholder or key employee whose permit has been revoked from coming onto the premises of the card club, or not to pay such pointholder or key employee any remuneration for services as an employee and/or any profits, income or accruals on his or her investment as a pointholder in the card club. June 9, 1995 28 (6) In the event of a violation described in subsections 6.36.200(A) (2) (b) through (h) immediately above, a fine, not to exceed ten thousand dollars ($10,000.00) per day for each violation, may be imposed on the licensee in lieu of suspension or revocation. In the event the violation is for non- payment of fees, the fine shall amount to five percent of the unpaid fees plus one and one-half percent per month accrued daily after the first 30 days. (7) When appropriate, in addition to or in lieu of suspension, revocation or imposition of a fine, the City Manager may impose other appropriate penalties, including but not limited to restitution to victims and modifications and limitations on the terms and conditions of the license, permit or Card Club Operations Certificate. 6.36.210 CITY MANAGER / CHIEF OF POLICE SUBPOENA AUTHORITY (A) The building owner and licensee shall each designate one or more persons who are regularly present on the premises during regular business hours as agent(s) for the service of subpoenas (~agent") issued by the City Manager or Chief of Police under this chapter. These designated individuals shall also serve as contact persons available to respond to general business problems. (B) By accepting, and as a continuing condition to the validity of, a license under this chapter, the building owner, the licensee, each manager and each designated responsible employee of either, and each person who has a financial interest in the licensee shall consent to having any such agent accept the service of subpoenas directed to them hereunder by the City Manager or Chief of Police. (C) A building owner or licensee may change the designation of its agent at any time by filing a change in writing with the City Manager or Chief of Police. The City Manager or Chief of Police shall serve a subpoena upon a person either (1) by personal service on such person or (2) by personal service on an agent. (D) Each subpoena directed to a person by the City Manager or Chief of Police shall set forth the subject matters of inquiry and any request for specific information required. If all of the specific information sought from the person upon whom the subpoena is served may otherwise be supplied by the licensee, the licensee shall file a declaration under penalty of perjury with the City Manager or Chief of Police that contains such specific information at the time directed, the effect of which declaration shall be to quash the subpoena; provided, however, that topics of inquiry or requests for specific information pertaining to the background or actions of the person to whom the June 9, 1995 29 subpoena has been directed may only be answered or otherwise responded to by such person. (E) No subpoena shall compel the attendance of any person before the city Manager or Chief of Police or at any hearing conducted under this chapter in less than seventy-two (72) hours after receipt of such service by the person(s) upon whom such service is to be made; reasonable requests for extension of time to appear shall be granted for up to an additional fortyLeight (48) hours by the City Manager or Chief of Police upon a declaration that sets forth a reasonable ground for such extension, which declaration is executed under penalty of perjury (based on information and belief) by any person who would be subject to the service of a subpoena under this paragraph. 6.36.220 PROCEDURE FOR CARD CLUB PERMITS AND LICENSES REVOCATION OR SUSPENSION (A) Notice of Decision to Revoke or Suspend In the event the City Manager determines that a license or permit issued pursuant to the terms of this chapter shall be suspended or revoked, the City Manager shall issue a Notice of Decision which shall state the grounds upon which the suspension or revocation or other penalty is based. The Notice shall be in writing and addressed to the licensee or permittee and the building owner at the addresses of record. (1) Unless the licensee or permittee files a written Notice of Appeal with the City Clerk within ten (10) calendar days from the date of mailing of the Notice of Decision, the Decision shall become effective on the close of business after twenty-one (21) days. The Notice of Appeal shall state all of the grounds of appeal and shall admit or deny the determination in the Notice of Decision. (2) The City Manager shall select a hearing officer who shall schedule and. conduct the hearing in accordance with procedures specified in regulations to be promulgated by the City Manager pursuant to this chapter. The decision of the hearing officer shall be final. (3) The cost of the appeal, including but not limited to.the costs of the services of the hearing officer and for the preparation of the transcript, shall be borne by the licensee or permittee. The City Attorney shall provide an estimate of costs which must be deposited with the City Clerk before the scheduled start of the hearing. Failure to deposit the estimated costs before the hearing is scheduled to begin shall be deemed a waiver of the appeal. June 9, 1995 30 6.36.230 NO APPLICATION UPON REVOCATION In the event of revocation, no new permit or license shall be issued to such permittee or licensee except upon application made thereafter as in the case of a new applicant. 6.36.240 REGISTRATION, FINGERPRINTING AND PHOTOGRAPHING OF EMPLOYEES OF LICENSED CARD CLUBS (A) Permit Required of Employees (1) It shall be unlawful for any card club building owner or licensed card club to employ any person in connection with their operations or to allow any person to do business on their premises who is not the holder of a valid registration/I.D. card issued by the Chief of Police. No registration/I.D, card will be issued without such person having first been finger printed and photographed by the South San Francisco Police Department or such other person(s) as shall be approved by the South San Francisco Police Department. (2) Every card club building owner or licensee shall, before employing any person in connection with the licensed card club activity, ascertain that such person holds a valid registration/I.D, card issued in accordance with this regulation, and shall cause his employment records to reflect such fact. (B) Application Procedure (1) Applications for registration/I.D, cards shall be reviewed subject to the procedures to be adopted and implemented by the Police Department. An application may be granted or denied by the Chief of Police. The Chief of Police may deny an application for registration for any relevant cause denoted in Section 6.36.250. Applicants for employee registration/I.D. cards shall authorize the City to obtain any available criminal arrest and conviction offender record information relating to the applicant and shall further authorize the updating of that information on an annual basis if a registration/I.D, card is issued. (2) In recognition of the delays which may be encountered in obtaining all information on each applicant, the Chief of Police is hereby authorized to issue provisional registration/I.D, cards which shall be valid for a period not to exceed six months and shall be issued under the terms and conditions to be determined by the Chief of Police. (3) A nonrefundable processing fee as set forth in the Master Fee Schedule shall be paid together with the registration and renewal application. (c) Display of Registration/I.D. Card Every employee shall be issued a registration/I.D, card June 9, 1995 31 Whether permanent or provisional or conditional, which must be prominently displayed on the employee's outermost garment at approximately chest height. Such identification card shall be in good and readable condition and a replacement card shall be issued by the Chief of Police upon payment of a Twenty-Five Dollar ($25.00) fee. Undercover security personnel, with prior approval of the Police Department, need not wear such registration/I.D, badge in a prominently visible place. (D) Responsibilities of Chief of Police (1) It shall be the responsibility and duty of the Chief of Police to establish the necessary procedures to implement and administer the provisions of the section. (2) The information received by the Chief of Police pursuant to the provisions of this section shall be treated as confidential. (E) Permit Application Fee For the purpose of clarification, the application fees set forth in this section are for regulation and reimbursement to the City for the costs of investigating and processing the applications, as provided for in this section. Each application for a permit under this section shall be accompanied by an application fee, payable to the City, in the amount as set forth in the Master Fee Schedule, which fee shall be retained by the City for the payment of the costs of the investigation of the applicant. The fees set forth in this subsection shall be the property of, and be retained by, the City, whether the employee registration/I.D, card is granted or denied. (F) Obligation of Card Club Licensee It shall be a condition of any Card Club Operations Certificate to inform the Chief of Police of any change in the employment status of a registered employee within ten (10) days of the effective date of the change in employment status. A change in employment status includes termination, leave of absence, promotion or any other change in position or title. 6.36.250 EMPLOYEE REGISTRATION/I.D. -- DENIAL OF APPLICATION (A) The Chief of Police may deny the application for an employee registration/I.D, card if he or she makes any of the following determinations: (1) That the applicant has within five (5) years immediately preceding the filing of the application been arrested or convicted in a court of competent jurisdiction of an offense, or has engaged in conduct constituting any such offense, listed as follows: June 9, 1995 32 (a) Any offense involving gambling specified in Sections 319-337.9, including any amendments thereto, of the California Penal Code. (b) Any felony offense involving the sale of a controlled substance specified in Sections 11054, 11055 and 11056 or 11058 of the California Health and Safety Code, including any amendments thereto. (c) Any offense specified in Sections (266(I), 315, 316, 318 or subdivision (b) of Section 647 of the California Penal Code, including any amendments thereto. (d) Any offense which requires registration as a sex offender under Section 290 of the California Penal Code, including any amendments thereto. (e) Any offense in another state, which, if committed in this state, would have been punishable as one or more of the foregoing offenses. (f) Any offense involving the use of force or violence upon the person of another. (g) moral turpitude. Any offense involving theft, embezzlement or (h) Any offense which relates directly to the operation of a gaming club. (2) That the applicant has made one or more false statements in the application. (3) That the applicant has done any act involving dishonesty, moral turpitude, fraud or deceit with the intent to substantially benefit himself or another, or substantially injure another. (4) That the applicant has failed to comply with one or more provisions of this chapter, or of this code, or other laws of regulations applicable to the premises, equipment, ownership or operation of the proposed card club of the applicant. (5) That the issuance of the proposed permit would violate an applicable provision of this chapter. (6) That the applicant is engaged in organized crime, or has substantial, regular or continuous personal, professional or financial associations with one or more persons engaged in organized crime. June 9, 1995 33 (7) That the applicant, if he or she (1) works in the card playing area, (2) supervises anyone who works in the card playing area, or (3) is involved in anyway in cash transactions, is under the age of twenty-one (21) years old. 6.36.260 EMPLOYEE REGISTRATION/I.D. CARD -- EXPIRATION AND RENEWAL An Employee Registration/I.D. Card shall be valid for two years. It shall be renewable at the end of each second year upon filing a new application and a renewal fee, in an amount set forth in the Master Fee Schedule and established by resolution of the City Council. If an expired Employee Registration/I.D. Card is not renewed within thirty (30) days after the expiration date, it shall be considered void and the filing fee and process for an original application shall be applicable. 6.36.270 EMPLOYEE REGISTRATION/I.D. CARD -- REVOCATION, SUSPENSION AND APPEALS (A) Employee Registration/I.D. Cards are subject to revocation or suspension upon a determination by the Chief of Police that grounds exist which would justify the denial of an application for such Employee Registration/I.D. Card if such application were then pending, or that the person has: (1) Violated one or more provisions of this chapter. (2) Violated any statute or ordinance relating directly to the operation of the card club. (3) Been convicted of or has engaged in conduct constituting an offense enumerated in subsection 6.36.250(A) (1). (4) Done any of the following: (a) Violated any federal, state or local statute, rule or ordinance regulating gaming. (b) Failed to take reasonable steps to Prevent any dishonest acts or illegal activities occurring on a card club premises committed by any patron or any other person. (c) Obtained an Employee Registration/I.D. Card by fraud, misrepresentation, concealment or through inadvertence or mistake. (d) Made a misrepresentation, or failed to disclose, a material fact to the Chief of Police either on the application or as part of any subsequent investigation. June 9, 1995 34 (B) The term of suspension of any Employee Registration/I.D. Card shall be for the specific time determined by the Chief of Police but not more than sixty (60) days. (C) In conducting an investigation, which the Chief of Police may initiate on his or her initiative or in response to a complaint, or making a determination hereunder, the Chief of Police shall gather all evidence relevant to the investigation and may issue subpoenas for the appearance of witnesses and the production of documents and other evidence. The determination of the Chief of Police shall be supported by a preponderance of the evidence. (D) Upon determination that grounds for revocation or suspension exist, the Chief of Police shall notify the person holding the Employee Registration/I.D. Card in question, (hereafter referred to as the "Cardholder"), in writing either by personal delivery or by first class mail addressed to the Employee Registration/I.D. Cardholder at the address listed in the permit application, or any more recent address furnished to him by the Employee Registration/I.D. Cardholder. The notice shall state that the permit is revoked or suspended the duration of any suspension and the grounds for the action. The notice shall further state that the action shall not become effective until the eleventh City business day after the date of the notice, and that during such period the licensee or Cardholder may file a Notice of Appeal to the City Manager. The Notice shall state that if the action is appealed to the City Manager, the action shall not become effective until the City Manager shall have heard and decided the appeal. (E) If the Cardholder fails to file a Notice of Appeal with the City Manager within a period of ten (10) City business days from the date of notice of suspension or revocation, the action of the Chief of Police shall become final and conclusive. (F) At the hearing before the city Manager the appellant and the Chief of Police shall have the following rights: (1) To call and examine witnesses (2) To introduce exhibits (3) To cross-examine opposing witnesses on any matter relevant to the issues, even though that matter was not covered in the direct examination. (4) To impeach any witness, regardless of which party first called him or her to testify, and to rebut the evidence against him. June 9, 1995 35 (G) The hearing need not be conducted according to rules of evidence. Any relevant evidence shall be admitted if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining other evidence, but shall not be sufficient to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the extent that they are otherwise required by statute to be recognized at the hearing. Irrelevant and unduly repetitious evidence shall be excluded. (H) In revoking or suspending a Employee Registration/I.D. Card pursuant to this Section, the Chief of Police shall have the power to suspend the effectiveness of such action upon reasonable conditions, and to direct that if the Employee Registration/I.D. Cardholder does not comply with such conditions, the original revocation or suspension will become effective. (I) In addition to the power to suspend a Employee Registration/I.D. Card pursuant to this Section, if the Chief of Police determines that a Employee Registration/I.D. Cardholder has engaged in such conduct as to provide reasonable cause to believe that his or her continued work in a card club would constitute an immediate threat of continued violations of operations requirements, fraudulent or dishonest conduct, or sale or use of narcotics on the premises, he or she may immediately suspend the Employee Registration/I.D. Card by providing written notice to the Employee Registration/I.D. Cardholder and the licensee of the action taken and the reason therefor. The Chief of Police shall conduct a hearing on the matter upon notice to the Employee Registration/I.D. Cardholder not later than five (5) City business days from the date of the suspension. The hearing shall be in accordance with the provisions of this Section. If at the conclusion of the hearing the Chief of Police determines that grounds exist for the suspension or revocation of the Employee Registration/I.D. Card, he or she may revoke or continue the suspension of the Employee Registration/I.D. Card. The Cardholder may appeal such decision to the City Manager by filing a Notice of Appeal pursuant to this Section 6.36.280(B); provided, however, that pending the action of the City Manager on appeal the revocation or suspension shall remain in full force and effect. 6.36.280 EMPLOYEE REGISTRATION/I.D. CARD -- DENIAL APPEALS (A) Whenever the Chief of Police shall deny an application for an Employee Registration/I.D. Card, he or she shall notify the applicant/cardholder in writing by either personal delivery or by first class mail addressed to the applicant/cardholder at June 9, 1995 36 the address listed in the respective application, or at any more recent address furnished to him by the applicant/cardholder. The notice shall state that the application has been denied or that the Employee Registration/I.D. Card has been suspended or revoked and the grounds for the action. The notice shall further state that the applicant or cardholder shall have the right to appeal the action to the City Manager by filing a Notice of Appeal with the City Manager no later than ten (10) City working days from the date of the notice of denial. (B) A notice of any appeal must be filed with the City Manager not later than ten (10) City business days from the date of notice of denial, suspension or revocation of the application, license or Employee Registration/I.D. Card. If a Notice of Appeal is timely filed, accompanied by payment of an appeal fee in the amount established by resolution of the City Council, the City Manager shall schedule the matter for hearing. 6.36.290 ANNUAL LICENSE TAX The City Council hereby determines that an annual card club operations license tax shall be payable with respect to all card club licenses issued pursuant to the provisions of this chapter for card clubs with more than ten (10) tables. (1) An annual license tax in the amount of six hundred thousand dollars ($600,000) shall be due and payable to the City no later than the seventh day following City Council approval of the initial card club license. Thereafter, the annual license tax shall be due and payable on July 1 of each year. In the event that the initial license is issued on any day other than July 1 of any year, the annual license tax due on the following July 1 shall be reduced proportionately by calculating the number of days between the date of initial issuance and the following June 30 and then dividing that amount by 365. That percentage will be multiplied by annual license tax amount to derive the amount due. (2) Ail annual license taxes shall become the absolute property of the City and shall not be refunded due to the cessation of, or failure to begin such businesses, whether voluntary or involuntary. 6.36.300 GROSS REVENUE LICENSE TAXES (A) In addition to the annual tax prescribed by Section 6.36.290, there is hereby imposed a gross revenue license tax. The gross revenue license tax shall be payable monthly, based on the total monthly gross revenue of the card club so licensed, according to the following schedule: June 9, 1995 37 (1) (2) Less than $500,000 $500,001 to $2,500,000 $200,000 plus 11 percent of amount between $2,500,001 and $5,000,000 (4) $5,000,001 to $7,500,000 (5) More than $7,500,001 TOTAL MONTHLY GROSS REVENUE MONTHLY LICENSE TAX $0 '10 percent of amount between $500,001 and $2,500,000(3) $2,500,001 to $5,000,000 $475,000 plus 12 percent of amount between $5,000,001 and $7,500,000 $775,000 plus 13 percent of all amounts in excess of $7,500,001 (B) Alternative Gross Revenue License Tax (1) As an alternative to paying the gross revenue license tax set forth herein, City may require or licensee may elect to pay a lump sum license tax of up to three million ($3,000,000) dollars. In such event an Alternative Gross Revenue License Tax schedule shall apply fbr a maximum sixty consecutive month period commencing with the month in which the lump sum amount is paid. During said maximum sixty month period, City shall credit fifty thousand dollars ($50,000) per month against the gross revenue amount due monthly. This monthly credit shall terminate when the sum of the monthly credits equals the advance lump sum license tax paid, but in no event shall such credit extend beyond sixty months from the date of lump sum tax payment. City or licensee may elect any month after the card club opens as the starting month for use of this alternative license tax schedule. (3) The alternative license fee schedule provided for in subsection (B) (1) shall be as follows: June 9, 1995 38 (1) (2) (3) (4) (5) LeSs than $500,000 $500,001 to $2,500,000 $2,500,001 to $5,000,000 $5,000,001 to $7,500,000 More than $7,500,001 TOTAL MONTHLY GROSS REVENUE MONTHLY LICENSE FEE $0 9.5 percent of amount between $500,001 and $2,500,000 $190,000 plus 10.5 percent of amount between $2,500,001 and $5,000,000 $452,500 plus 11.5 percent of amount between $5,000,001 and $7,500,000 $740,000 plus 12.5 percent of all amounts in excess of $7,500,001 (C) The City Council may, by resolution, authorize a credit against the annual license tax amount based upon an agreement between the City Council or South San Francisco Redevelopment Agency and the licensee and/or building owner provided that the city and/or Redevelopment Agency receive consideration at least equal to the amount of the credit. 6.36.310 AUDIT/REPORTING REOUIRED (A) Statement of Revenue (1) Each licensee, shall file with the City on or before the 15th day of each calendar month a statement, under oath, showing the true and correct amount of gross revenue derived from the card club business, operated pursuant to licenses issued pursuant to this chapter, for the operations of the preceding month. At the option of the City, the City may require payment of gross revenue tax revenues through electronic transfer on a more frequent basis. Such statement shall be accompanied by the payment of the correct amount of gross revenue license fee due and owing in accordance with the provisions of this section. A certification shall be attached to the statement or included therein, which certification or declaration shall be substantially in the following form: "I hereby declare under penalty of perjury that the foregoing is true and correct." Licensee, Managing Partner, or Owner (Strike out the titles which are not applicable) June 9, 1995 39 (2) At the end of each fiscal year, the Licensor shall employ at Licensee's expense a nationally recognized firm of Certified Public Accountants to conduct an audit of licensee's financial records in accordance with generally accepted auditing standards. The Licensor shall select said Certified Public Accountant through a public bid process, the procedures of which shall be determined solely by the Licensor. Based on the procedures established by Licensor, the Licensor shall select the bid of the lowest responsible bidder. The audit shall conclude with the expression of the auditor's opinion on the financial statements of the licensee's card club operations in accordance with generally accepted auditing principles. The auditor shall express a separate opinion on the licensee's gross revenues and related permit fees paid to the City for the period then ended. Also, the licensee shall provide the City with an annual update of the evaluation of its internal accounting and administrative controls. Such audit report shall be filed with the City Clerk no later than one- hundred twenty (120) days after the fiscal year end. In the event that such evaluation discloses material weaknesses or reportable conditions in the licensee's system of internal accounting and administrative controls, the licensee shall submit a program to the City Manager within thirty (30) days of such evaluation outlining licensee's program to correct such weaknesses or conditions. All reports or evaluations submitted hereunder shall be confidential and shall not be available for public inspection. (3) Any failure or refusal of any such licensee to make any statement as required within the time required, or to pay such sums due as gross revenue license fees when the same are due and payable in accordance with the provisions of this chapter, shall be and constitute full and sufficient grounds for the revocation or suspension of the permits and licenses issued pursuant to this chapter in the sole discretion of the City Council. (4) Subsection (A) herein shall not apply to the preexisting lawful nonconforming card clubs licensed pursuant to Section 6.36.430. (B) Not later than July 1 of each calendar year, the licensee shall execute under penalty of perjury and file with the Chief of Police a declaration providing the following information: (1) A list of the minimum buy-in, time charged or other fees charged players for the use of the tables. (2) A set of the then current posted detailed house rules applicable to the games played. June 9, 1995 40 (3) That all taxes have been paid. (4) The declaration shall be accompanied by a complete copy of all registration and re-registration applications (and exhibits) filed by the licensee and all persons having a financial interest in the licensee under the Gaming Registration Act. 6.36.320 RECORDS, REPORTS AND SUPPLEMENTAL INFORMATION (A) Each licensed establishment shall make and maintain complete, accurate and legible records of all transactions pertaining to revenue subject to taxes imposed by this chapter. Such records shall include but not be limited to a general ledger maintained in accordance with generally accepted accounting principles, together with appropriate supporting records such as cash receipts and disbursement logs and journals, payroll journals, canceled checks and original paid invoices. Such general ledger shall be maintained in a fashion suitable for producing financial statements in accordance with generally accepted accounting principles. Such records shall be maintained for at least three (3) 12-month fiscal years and shall be maintained on the premises of the licensed card club and made available for examination and copying by the City or its designee. (B) (1) The permittee or licensee shall comply with the Internal Revenue Service Form 8300, Currency Transaction Reporting Requirements (IRS Regulation 6050.1) for cash received from and paid to customers in excess of $10,000. The permittee or licensee shall also comply with Title 31, sections 5313 and 5314 of Title 31 of the United States Code and sections 103.22 and 103.23 of Title 31 of the United States Code of Federal Regulations, including any amendments thereto. In addition, transaction logs shall be~maintained to record multiple cash transactions totalling $3,000 or more on cash received from and paid to customers within a 24-hour period. (2) The permittee or licensee shall submit a policy statement to address Section (B) (1) for review and approval by the Chief of Police. (C) The permittee or licensee shall institute audit and accounting processes and procedures for employee tip pools and jackpot poker pools if jackpot poker is allowed. (D) In the event information requested of a licensee can be furnished only by someone other than the licensee (such as a landlord, supplier or an accountant), the licensee shall make every bona fide effort to obtain such information as requested and furnish the same or have it furnished directly by the person who has the information available. June 9, 1995 41 (E) In addition to such other information and data required by this section or by regulation issued by the City Manager pursuant to this chapter, each licensed establishment shall maintain on the card club site the following: (1) If a partnership or corporation - (a) A schedule showing the dates of capital contributions, loans or advances, the names and addresses of the contributors and percentage of ownership interest held of record by each. (b) A record of the withdrawals or distributions of funds or assets to partners or stockholders. (c) A record of salaries paid to each pointholder and key management employee. (d) A copy of the partnership or corporate agreement, certificate of limited partnership and accurate corporate stock transfer book, if applicable. (e) Copies of any and all public filings required by the Securities and Exchange Commission. (2) If a sole proprietorship - (a) A schedule showing the name and address of the proprietor and the amount and date of his original investment. (b) A record of subsequent additions thereto and withdrawals therefrom. The records required to be kept by this regulation shall be in ink or any other permanent form of recordation. 6.36.330 ACCESS TO RECORDS AND FACILITIES (A) Notwithstanding the audit requirements specified in Section 6.36.300 of this chapter, the licensee shall allow the City Manager or his designee unrestricted access to all books, records, facilities, and all audio and video tapes pertaining to the card club, including but not limited to, cash counting rooms and vault. Any information obtained pursuant to this section or any statement filed by the licensee or permittees shall be deemed confidential in character and shall not be subject to public inspection except in connection with the enforcement of the provisions of this chapter. It shall be the duty of the City Manager to preserve and keep such statements so that the contents thereof shall not become known except to the persons charged by law with the administration of the provisions of this chapter or pursuant to the order of any court of competent jurisdiction. June 9, 1995 42 (B) Any failure or refusal of any permittee or licensee to make and file any statement within the time required, or to permit inspection of such books, records, accounts and reports of such permittee or licensee in accordance with the provisions of this chapter shall be full and sufficient grounds for the revocation or suspension of the permit and licenses of any such permittee or licensee in the sole discretion of the City Council. 6.36.340 CARD CLUB OPERATIONAL AND GAMES RULES AND REGULATIONS (A) The City Manager may from time to time enact rules and regulations to effectuate the purposes of this chapter, specifically including rules governing the operation of card clubs and the activity conducted in card clubs by patrons. All such rules and regulations shall be given to all licensees concurrently with or prior to the effective date. (B) Unless modified, supplemented, or abrogated by later action of the City Council, the following rules and regulations shall govern all card club licenses to be issued: (1) Acceptance of a permit or license issued under the provisions of this chapter shall be deemed to be acceptance of and agreement to be bound by and observe each and all of their terms, conditions and provisions by this chapter and of the rules and regulations established thereby relating to such permits and licenses. (2) No permittee, license, or other individual in charge or control thereof shall use, operate, or permit the use or operation of more tables or units than those for which licensee holds then current and valid authorization to operate or use in the city and for which the prescribed license fee has been paid to the city. (3) No permittee, licensee or other individual in charge or control of any card club operating under any license held or issued pursuant to the provisions of this chapter shall operate or use any table or unit or manage, conduct, or carry on any business or activity authorized by this chapter during anytime that such license or permit issued by the city has been or is suspended or revoked. (4) Each and all of the games conducted or operated in the city pursuant to the provisions of this chapter shall be conducted and operated in full conformity with, and subject to, all the provisions of the laws of the state and of the city. June 9, 1995 43 (5) Employment of Persons to Stimulate Play Prohibited (a) It shall be unlawful for any card club permittee, owner or employee to engage or persuade any person to play cards for purposes of stimulating play where such person is to receive any reward, whether financial or otherwise, present or promised, or where such reward or revenue is to be diverted to the card club permittee or owner except as allowed under subsection (b) of this section. (b) The permittee may utilize proposition players. A proposition player must wear a badge at all times identifying the player as an employee of the permittee. Other than compensation for the time spent in acting in such activities as an employee of the permittee, no gifts, rewards or any other thing of value shall be given to the proposition player by the permittee or any owner or employee. (6) (a) one gaming table. A maximum of nine hands may be dealt at any (b) Up to three (3) participants may be allowed to wager on the same hand on designated games. Where more than one participant is involved in the play of the hand, each participant shall participate in decisions as to how the cards or tiles shall be played. In the event of disagreement over play, the participant who has the largest wager at stake shall make the final decision. A primary seated participant shall be allowed to refuse to allow other participants to bet his hand. (c) At no time shall cards or tiles be removed past the edge of the top of the gaming table. (7) No permittee or licensee holding a permit or license pursuant to the provisions of this chapter, and no agent, representative or employee of the licensee and no other person in charge or control of any such licensed premises, game or authority shall: (a) Permit or allow any person under the age of twenty-one (21) years, to play any of the games authorized by the license. (b) Permit or allow any person under the age of twenty-one (21) years at any time to be in the card playing area; provided, however, that minors may be allowed in the restaurant section of a card club operation if the restaurant is accessible from the outside without requiring passage through the card playing area, and the restaurant and such access are visually separate from the card playing area. June 9, 1995 44 (c) Permit or allow the playing of any card games other than those specifically authorized by the license or permit any form of unlawful gambling to occur anywhere on the card club premises. (d) Permit or allow the farming out, assigning, lending, renting, or subletting of any games or card tables on premises lawfully permitted pursuant to the provisions of this chapter. Nothing herein shall preclude any profit-sharing with employees or preclude use of a management company. (e) Permit or allow any person other than players and card club employees holding valid registration/I.D, cards to loiter in the card playing area. Spectators and those waiting to play shall be excluded from the card playing area in a manner acceptable to the Chief of Police. For the purposes of this section, participants as described in section 6.36.340(B) (6) (b) are considered players. (8) It shall be unlawful for any individual player or other unauthorized person to enter any secure areas within the premises or for any player or unauthorized person to enter any secure areas within the card club premises. (9) The card club, including the entire premises, shall be open for inspection during all hours to the Chief of Police, City Manager or their duly authorized representatives, without a search warrant. (10) The playing of all games provided for in this chapter shall be confined to designated card playing areas. No card playing or other gambling shall be permitted in any restaurant or lounge. All card club records, including but not limited to papers, books of account, ledgers, audits, reports, personnel records, information stored in computers and on computer tape disks, video tape, microfilm or microfiche, shall be available for inspection and copying during normal business hours to the Chief of Police, the City Manager or their duly authorized representatives without search warrant. (11) The City Council shall by resolution establish a minimum table rental fee schedule for all permitted games. (12) (a) Ail card playing areas shall be accessible at all times to law enforcement officers and officials designated by the city. (b) Subject to the foregoing, licensee may designate certain areas or rooms as open only to players and their guests for tournaments or charity events. June 9, 1995 45 (c) Card games shall be located and conducted on what is commonly known as the street floor of the card club premises. (d) Card games shall be located in one or more rooms and so arranged that the gaming tables in a room and the players at the tables shall be plainly visible from the main doorway into such gaming, and no wall, partition, screen or similar structure between any main doorway into a gaming room and any gaming table shall be permitted if it interferes with such visibility, except for such other physical arrangement of a card club which has been approved by the Chief of Police. (e) During all hours of operation the outside doors to the card club and the main doors to the gaming rooms must be unlocked and accessible to the general public. (13) Ail players financed either in whole or in part by the house shall be required to wear an employee registration/I.D. card as prescribed in Section 6.36.240(C). (14) All employees on the gamin~ floor during the course of their employment shall speak English primarily when dealing with customers and other employees. (15) Cheating (a) No cheating shall be permitted or tolerated by any licensee, permittee or employee. All provable cases of cheating shall be reported to the appropriate law enforcement authorities and the licensee shall cooperate fully in the prosecution of all individuals who are criminally charged with cheating in the licensed establishment. Cheating devices shall be confiscated and shall not be returned to the individual or persons using or bringing such devices on to the premises whether or not the offender is arrested or prosecuted. Permitting or tolerating cheating shall be grounds for immediate suspension or revocation of card club license or imposition of additional' conditions (b) For the purpose of this Ordinance and Rule, the words and phrases hereinafter set forth are examples of cheating techniques and shall have the following meanings ascribed to them unless the context clearly requires to the contrary: (1) ~Blind cut~' or ~false cut~ shall mean a maneuver which appears to cut the deck, but does not in fact do so. (2) ~Blind shuffle" shall mean to false shuffle or to give the deceptive impression of intermixing June 9, 1995 46 playing cards, while actually retaining the same sequence of all or a group of cards. (3) ~Burn" is a discard in accordance with the rules of the game, made before the draw when playing draw poker. (4) ~Capping the deck" shall mean to place cards on to the top of the deck. (5) ~Capping a bet~ shall mean to place or increase a bet after acquiring knowledge of the outcome of the game or other event which is the subject of the bet. (6) ~Cheating" shall mean any and all acts of fraud, misrepresentation, dishonesty, false pretense, use of device or manipulation of card, done with the purpose of defrauding or gaining an unfair advantage over another player whether or not an actual advantage is gained, whether or not specifically defined herein, which alters the selection of criteria which determines the result of a game or the amount or frequency of payment in a game. (7) ~Cooler" shall mean a deck of cards secretly prearranged in a known sequence or marked to be substituted for the deck in play. (8) ~Daubing~' shall mean to mark cards by applying a faintly visible substance to the back of the cards. (9) ~Dragging~' or ~pinching a bet"~shall mean to reduce the amount wagered or cancel the bet after acquiring knowledge of the outcome of the game or other event which is the subject of the bet. (10) ~Second dealing'~ or ~seconds" shall mean to deal a card which is second from the top of the deck. (11) ~Hand mucking" shall mean the surreptitious switching of cards from those that are dealt to a player. (12) ~Hold-out" shall mean a mechanical device used for the purpose of surreptitiously switching or retaining cards. (13) ~Hopping the cut~' shall mean to surreptitiously nullify the cutting of the deck. (14) ~Middle dealing" shall mean to deal a card from the center of the deck. June 9, 1995 47 (15) ~Playing partners~ shall mean any scheme or action in which two or more players act in concert to communicate information or to otherwise act for the purpose of defrauding or gaining an unfair advantage over another player, whether or not an actual advantage is gained. (16) ~Punching~' shall mean to mark the back of the cards by creating a dimple or indentation thereon. (17) ~Roughing fluid" shall mean a liquid chemical applied to the back of the cards for the purpose of marking them by roughening the surface. (18) ~Run-up" or ~stacking~' or ~stocking" shall mean to shuffle the cards in such a fashion as to surreptitiously arrange the sequence to known cards. (19) ~Sanding~ shall mean to mark cards by applying an abrasive substance to the cards. (20) ~Shiner" shall mean a mirror or other reflecting device used for the purpose of enabling a player to see cards which the player is not entitled to see under the rules of the game being played. (21) ~Slick sleeve" or ~mohair sleeve" shall mean a long sleeve on a clothing garment to assist in holding out a playing card. (22) ~Slug~' shall mean a group of cards (23) ~Transmitter" shall mean an electronic or radio device used for the purpose of transmitting signals or information to another player who receives such signals or information by use of a ~receiver~'. (24) ~White flash" shall mean a form of daubing whereby a chemical is used to create a ~white on white" marking on the back of the cards. (C) Fraudulent Acts (1) It is unlawful for any person: (a) To alter or misrepresent the outcome of a game or other event on which wagers have been made after the outcome is made such but before it is revealed to the players. (b) To place, increase or decrease a bet or to determine the course of play after acquiring knowledge, not available to all players, of the outcome of the game or any event that affects the outcome of the game or which is the subject of June 9, 1995 48 the bet or to aid anyone in acquiring such knowledge for the purpose of placing, increasing or decreasing a bet or determining the course of play contingent upon that event or outcome. (c) To claim, collect or take, or attempt to claim, collect or take, money or anything of value in or from a gambling game, with intent to defraud, without having made a wager contingent thereon, or to claim, collect or take an amount greater than the amount won. (d) Knowingly to entice or induce another to go to any place where a gambling game is being conducted or operated in violation of the provisions of this chapter, with the intent that the other person play or participate in that gambling game. (e) To place or increase a bet after acquiring knowledge of the outcome of the game or other event which is the subject of the bet, including past-posting and pressing bets. (f) To reduce the amount wagered or cancel the bet after acquiring knowledge of the outcome of the game or other event which is the subject of the bet, including pinching bets. (g) To manipulate, with the intent to cheat, any component of a gaming device in a manner contrary to the designed and .normal operational purpose for the component. (h) For any individual as a player or dealer to deal, draw, distribute or burn any playing cards other than the top card of the deck. The ~top card" is defined as the uppermost face down card of a face down deck. It shall, therefore, be unlawful to deal or cause to be dealt what is known as a second, bottom or to engage in Greek dealing or middle dealing. (i) For any individual as a player, dealer, employee or agent to shuffle or cause to be shuffled any playing cards that are to be used or are being used in a licensed card game, other than in a random manner. It shall be unlawful to predetermine, or to prearrange the sequence of playing cards by value or suit, or to retain or hold back a card or cards either individually, or as a group or slug as an effort to circumvent a random mixing of the playing cards. Any blind shuffle, run-up, stacking or stocking of the deck to gain an unfair advantage in play, whether or not an advantage is gained, is unlawful. (j) For any patron or any other person not a permittee or licensee to bring cards into a card club. It shall be unlawful for any person other than a permittee, licensee, authorized employee or a patron then playing cards to have playing cards in his or her possession while in a card club. It shall be unlawful for any person in a card club other than on- duty employees with valid registration/I.D, cards to have playing June 9, 1995 49 cards in his or her possession outside of a designated card playing area. Nothing herein shall apply to punched or otherwise destroyed or mutilated cards or any souvenir or designer decks that could not be misconstrued as playing cards used in the card playing area. (k) For any player or dealer to palm, hold-out or conceal any card or cards during a card game, whether by sleight of hand, mechanical apparatus, or by clothing such as a slick sleeve. It shall also be unlawful for any individual, player or dealer to switch, exchange or cause to be exchanged any playing card, or cards, as a means of deception. The deceptive practices known as hand mucking, capping the deck, introducing additional cards into a game, or switching the deck with a ~cooler" are prohibited. (1) For any individual to use any technique in a card game, designed to accomplish a ~blind~' or false cut, or to use a fraudulent technique to nullify a cut once performed by a player, or to influence or indicate to another individual to cut the deck at a specific location. (m) For any individual, player or dealer to deliberately mark or alter any card or cards when there is a likelihood that such cards will be used in a licensed game, or when such cards are in play. It shall be unlawful to knowingly use any altered or marked cards in a card game. ~Marking and altering" as used herein include sanding, daubing, white flash, white on white, punching, adding to, removing from or blocking out, the existing design whether on the face, backside or edge of any card or cards. Any deliberate crimping, warping, bending, cutting, trimming, shaving or alteration by any means that would or may cause an advantage for any player over other players, whether or not such advantage is gained, is unlawful. (n) For any individual to use any mechanical or electrical apparatus or other device so as to gain any advantage or to gain information that would enable a player or dealer to deceive others. Such devices include, but are not limited to, hold-outs, table bugs, shiners, transmitters, receivers, punches, chemical solutions, shading, roughing, fluids, inks or dyes. (o) For any person at a licensed card club to use or possess with intent to use any device to assist (a) in projecting the outcome of the game; (b) in keeping track of the cards played; (c) in analyzing the probability of the occurrence of an event relating to the game; or (d) in analyzing the strategy for playing or betting to be used in the game. (p) For any individual to play partners or to knowingly aid or abet another in any cheating action prohibited by this Ordinance. June 9, 1995 50 (q) For any person to knoQingly aid or abet another in any cheating action prohibited by this chapter. (r) For any person to communicate in any way, whether verbally or non-verbally, to any other person whether playing a card game or not, any information concerning the cards held by any other person in the card room. (s) For any individual or group to use any of the cheating techniques prohibited by this Ordinance, or to cheat in any manner whatever, whether or not such techniques are specifically defined or are successful. The licensee or management shall immediately notify the Police Department upon the detection of any individuals suspected of cheating or committing fraudulent acts. (2) It shall be the responsibility of the licensee, management and their employees to fully cooperate with card game apprehension and identification of those individuals, patrons or other employees involved in cheating or fraudulent practices. Management shall retain and deliver to the Police Department as evidence in arrests or detention all playing cards and implements suspected of involvement in cheating or fraudulent practices. Management shall cooperate with card club surveillance personnel whether provided by a governmental policing agency, a city contracted service, city administered or .licensee assigned. (3) The Police Department, upon being notified by card club personnel or game surveillance personnel that an individual or individuals are being detained for cheating or fraudulent acts at play, shall respond to the card club. The Police Department shall ascertain the identity of those involved in the cheating, the circumstances involved and decide what police action, if any, is deemed appropriate. The Police Department shall assist as legally required in any citizen's arrest. (D) Permissible Games and Game Rules (1) Permissible Games. (a) A list of "Permissible Games" shall be adopted by resolution of the City Council. (b) No game shall be played at any card club unless it is listed as a Permissible Game. (c) Ail Permissible Games shall be played in strict conformity to California Penal Code Section 330, and all other state and local gambling laws. (d) The permittee shall file with the South San Francisco Police Department the rules on how each game and June 9, 1995 51 variation thereof is to be played. The permittee shall allow the playing of Permissible Games only in strict conformity with the rules provided to the South San Francisco Police Department. (e) Ail other games are hereby prohibited. (2) Game Rules. (a) The licensee shall cause these rules to be reproduced and available in the licensed premises. (b) The rules describing how each game conducted on the premises is to be played shall be posted on the premises of the card club in a conspicuous place. Printed copies of the rules shall also be easily available to the public. (c) The rules which are posted and made available to the public shall be identical to the rules provided to the South San Francisco Police Department pursuant to section of this subchapter. (d) The rules, in handout form, shall be made available in English, Spanish, Tagalog, Vietnamese, Korean and Mandarin and/or Cantonese-Chinese. (e) If jackpot poker is allowed, rules for qualifiers shall be clearly posted. (E) Gamblers Anonymous Literature Ail card club permittees shall make literature published by Gamblers Anonymous easily available in a visible location in the card club. If literature published by Gamblers Anonymous is not available in English, Spanish, Tagalog, Vietnamese, Mandarin and/or Cantonese-Chinese, then the permittee shall be required to make such literature easily available. (F) Tournaments (1) The conduct of tournaments shall be permitted for those games otherwise permitted by this chapter and for no others. (2) The licensee shall submit to the City Manager at least fourteen (14) days prior to the commencement of any tournament a full set of rules, regulations, terms and conditions to be used in regulating or otherwise governing and operation and activities of any such tournament. The City Manager or his designee shall have the power to approve in advance a schedule of tournaments, and the rules, regulations, terms and conditions to be used in regulating or otherwise governing the operation and activities of such series of tournaments. June 9, 1995 52 (3) Nothing contained in the permission granted to a licensee to engage in tournament activities shall permit or be construed to permit a violation of any other section or provisions of this chapter or the California Penal Code. (4) Tournament entry fee revenues shall be paid to the City as prescribed in Section 6.36.300(F). (G) Operation of House Deposit or Credit System (1) It shall be unlawful for any card club, licensee, permittee, owner or employee to operate, maintain or purport to maintain any house player, or employer deposit or credit system players bank or any system similar thereto, whereby a person may deposit, draw or maintain any account or credit of money, checks or any other item or representation of value, except as authorized pursuant to subsections (a) through (d) of this section. (a) The permittee shall be allowed to provide chips or other representations of value paid for in advance by the patron in cash or by personal check. (b) It is unlawful for the card club permittee, owner or employee to cash any personal check which does not state the amount on the face of the check. (c) The permittee shall be allowed to accept a patron's chips or other winnings and provide the patron with a check drawn on the permittee's account for the amount of the patron's chips or other winnings. (d) The dollar equivalent of any such chips or other representations should be posted in the same manner as the game rules pursuant to Section 6.36.340(D). (2) Holding Valuables for Safekeeping Licensees holding valuables for safekeeping may do so only under the following conditions: (a) Only cash may be held; no other valuables or collectibles, including coins, jewelry, stamps, or paper money worth more than face value, may be held. (b) Monies deposited shall be secured by cash or other liquid assets or a security bond. Such security shall be sufficient to cover all monies deposited. (c) No person may deposit money for safekeeping without the approval of the licensee, or his designee. Monies can be deposited and withdrawn only by the person named on the June 9, 1995 53 account. Accurate records of all deposits and withdrawals shall be kept for a period of not less than two (2) years. No person shall hold more than one (1) account at any card club. (d) The actual deposits held and the records of all transactions shall be available for inspection by the Chief of Police or other law enforcement officials upon demand. (e) Accounts established pursuant to this section shall be limited to one person per account. (H) Lending Money or Tokens of Value Prohibited (1) It is unlawful for any card club licensee, permittee, owner or employee to engage in the lending of money, chips, tokens or anything of value, either real or promised, to any person including other employees for any purpose while on card club property and expressly for the purpose of allowing that person to eat, drink or play cards. (2) It is unlawful for any card club licensee, permittee, owner or employee to engage in the lending of money, chips, tokens or anything of value to any city employee or elected city official. (I) Alcohol and Intoxication (1) No complimentary or reduced price alcoholic beverages shall be offered by the card club in the card CLUB or in violation of state law. (2) No licensee or other person in charge or control of any card game at a card club shall permit any person to play in any game licensed by the provisions of this chapter at any time while such person appears to be, or is, under the influence of any alcoholic beverage or controlled substance. (3) No licensee or other person in charge or control of any card game at a card club shall permit any person to enter the premises while such person appears to be, or is, in the opinion of the licensee or duly authorized agents or employees, under the influence of an alcoholic beverage or controlled substance. (J) Favorable Job or Table Assignments It is unlawful for any card club licensee, permittee, owner or employee to offer or accept employment or favorable job or table assignments within a card club in exchange for anything of value, either real or promised. June 9, 1995 54 (K) Hours of Operation The permissible hours of operation shall be established in the license or in the appropriate land use approval. (L) Wagering Limits The wagering limits for each club shall be established by the city Council in the license. 6.36.345 Seat Rental and Drop Charge Fees (A) No licensee or any other person in charge or control of any card game at a card club shall derive revenues from games being played in the gaming club other than from collection of a time rental fee for occupancy at a card table, a predetermined fixed fee assessed of all players at the table and collected prior to the playing of the hand, and/or a management or service fee, if not prohibited by state law. (B) Notwithstanding the provisions of 6.36.345(A), the licensee may request of the city permission to charge players on a basis other than time rental or fixed fee basis. The City Council may grant permission by resolution for such alternate charge methodologies, provided that the City Council makes all of the following findings: (1) That without an increase in player volume, the gross receipts will not decrease. (2) That the proposed alternate method is subject to strict controls. (3) That the licensee agrees to provide such physical and accounting controls as the City shall require. (4) That the proposed alternate method does not violate prohibitions against "banking" or "percentage" games. (C) The alternative method shall apply only to games where the licensee supplies a dealer at the table. 6.36.350 CARD CLUB SITE SECURITY (A) The building owner, licensee and\or permittee shall submit a physical security plan and a security personnel deployment plan for review and approval by the Police Department. The applicant's permits shall be subject to suspension and/or revocation for non-compliance with approved plans. (B) The building owner, licensee or permittee shall have security personnel regularly patrol the parking areas and patrons June 9, 1995 55 shall not be allowed to sleep in vehicles parked in the lots controlled by the licensee. 6.36.360 VIOLATIONS It shall be unlawful for any building owner, permittee, licensee or other person to violate any of the rules or regulations set forth in this Chapter. 6.36.370 CHANGES IN RULES AND REGULATIONS The City Council reserves the right to add to, amend or repeal any of the rules and regulations set forth in Section 6.36.340 and for the City Manager to adopt additional rules and regulations. Upon adoption of such rules or regulations, the same shall apply to new or existing card clubs. 6.36.380 EMERGENCIES The City Council further reserves the right to adopt by resolution additional emergency rules and regulations which shall become effective immediately upon adoption, and the violation of any such emergency rules and regulations may constitute grounds for the suspension and revocation of the permits and licenses issued pursuant to the provisions of this Chapter. 6.36.390 RIGHTS OF LICENSEE AND CARD CLUB (A) A licensee or card club shall exclude or eject from the premises of the card club any person who is reasonably suspected of or who is engaged in or has been convicted of bookmaking, loan sharking, sales of controlled substances, illegal gambling activities, cheating, prostitution or whose presence in or about such card club would be inimical to the interest of legitimate gaming. (1) Pursuant to any investigation of a violation of this ordinance, the licensee or card club may detain any person on its premises and request that person present themselves at the security office of the card club. (2) To be reasonably suspected of violating this ordinance, the licensee or card club must show by direct or circumstantial evidence, knowledge of such a violation or reasonable belief that such violation is about to occur. (3) The licensee or card club may temporarily exclude or eject any person during the pendency of an investigation by the licensee or card club regarding a violation of this ordinance; provided, however, that the investigation and temporary exclusion shall run no longer than 90 days from the date of exclusion. June 9, 1995 56 (B) As used in this ordinance the following items shall be deemed to be inimical to the interests of legitimate gaming. The items include, but are not limited to, the following: (1) violation of any card club rule; (2) violation of any law or ordinance; (3) behavior that would indicate that the person is under the influence of a drug, narcotic or alcohol; (4) loud, boisterous or other disruptive behavior; (5) swearing or using profane language; (6) failure to abide by instructions or orders of licensees' or permittee's employees, agents or management personnel; (7) loitering; or (8) aggressive panhandling. (C) No person shall be excluded or ejected on the grounds of race, color, national origin, disability or sex. (D) Detention and questioning of persons suspected of violating Sections of this chapter; limitations on liability; posting of notice (1) A licensee, or its officers, employees or agents may question any person in his establishment reasonably suspected of violating any of the provisions of this chapter. The licensee and its employees and agents shall not be liable for civil damages based on such questioning or for reporting to the law enforcement authorities the person suspected of the violation, provided such actions are non-tortious. (2) A licensee or its employees or agents who has probable cause for believing that there has been a violation of this chapter by any person may detain that person in the establishment in a reasonable manner and for a reasonable length of time. Such detention does not render the licensee or its officers, employees or agents liable for civil damages, provided such detention is non-tortious. (3) No licensee or his officers, employees or agents are entitled to the immunity from liability provided for in subsection 2 unless there is displayed in a conspicuous place in his establishment a notice in boldface type clearly legible and in. substantially this form: June 9, 1995 57 Any card club licensee, or any of his officers, employees or agents who has probable cause for believing that any person has violated any provision of Chapter 6.36 of the South San Francisco Municipal Code prohibiting cheating in gaming may detain that person in the establishment. 6.36.400 ADMINISTRATION OF CHAPTER BY CITY MANAGER (A) The City Manager shall formulate in writing all necessary rules and regulations to implement and administer the provisions of this chapter, and shall do all things necessary and proper to carry out the spirit and intent of this chapter, including, but not limited to: (1) Preserving and keeping all documents identified in this chapter as confidential documents so that the contents thereof shall not become known except to persons required by law to effect the administration or enforcement of this chapter. (2) To promulgate and/or to require prior approval of accounting procedures to be utilized by licensees to ensure accurate reporting of card club revenues. (3) Delegating the duties and powers vested in the City Manager by this chapter to appropriate City employees or officers. (4) Issuing regulations which are consistent with this Chapter and which provide for more effective enforcement of the provisions of this chapter and the elimination of that conduct which is inimical to the interests of legitimate gaming. (5) The appointment of a hearing officer to hear and determine those matters which are to be decided by a hearing officer. 6.36.410 UNLAWFUL ACTS (A) Unlawful Locations. It shall be unlawful for any individual to play, or permit the playing of, any game regulated or referred to by the provisions of this chapter at any place within the City, except a place operated under a license held or issued pursuant to the provisions of this chapter, and operated, owned, controlled and directed by pointholder and key management employees issued permits pursuant to the.provisions of this chapter. June 9, 1995 58 (B) Unlawful games. It shall be unlawful for any person to play in, or permit the playing of, any game at any place licensed pursuant to this chapter which game is not permitted by the provisions of this chapter or regulations issued pursuant thereto, or in any game played in violation of this chapter. (C) Unlawful activities. It shall be a violation of this chapter for any licensee to knowingly permit any unlawful activity to take place upon the premises of the card club or to fail to take reasonable steps to prevent such activities from taking place. (D) Visiting a gambling place. It is unlawful for any persons to knowingly visit any location wherein gambling as prohibited by this chapter is being conducted or maintained. (E) Unlawful Interests. It shall be unlawful and a conflict of interest for any City employee or city official to directly or indirectly own, operate or have any interest, legal or equitable, in any card club or card club license for a facility within the City. It shall be unlawful for any City employee or City official to directly or indirectly conduct business with or be employed in any manner whatever by a card club or card club licensee for a facility within the City. (1) For purposes of this section indirect performance of any prohibited act shall include but not be limited to the performance of such prohibited act by the spouse or other person related by blood or marriage to any party prohibited from directly performing such act. (2) For purposes of this section the term ~conduct business" shall include but not be limited to the provision of loans or any other forms of financing, sale or lease of any real or personal property, and the provision of any services, supplies, goods or other materials, but shall not include the conduct of business as a patron or customer in a manner available to the general public. (F) Campaign contributions. The City Council finds that the gaming industry is a highly regulated and controlled industry due to the nature of its operations, the amount of money amassed and the fears and perceptions that some elements in the industry may use such funds to incur political debts from legislators who are aided by their contributions. In order to eliminate the appearance of impropriety and corruption associated with such contributions, the City Council hereby determines that it shall be unlawful for any corporation, partnership or other legal entity licensed or permitted under this chapter, or their employees, to make any monetary contributions to city council members, candidates for City Council, or to their respective campaign organizations. June 9, 1995 59 (G) Exceptions. This chapter shall not apply to bingo Conducted in accordance with the California Penal Code 326.5 et.~ al. 6.36.420 PENALTIES Any individual violating any of the provisions of this chapter or any of the rules and regulations set forth, established or promulgated in this chapter shall be guilty of a misdemeanor. 6.36.430 PREEXISTING CARD CLUB Preexisting lawful non-conforming card clubs and pointholders licensed under Chapter 6.36 of the Municipal Code in effect before the effective date of these amendments to this chapter shall be deemed licensed and in possession of a card club operations certificate and a building owner permit under the provisions of this chapter and those licenses shall continue in effect for twelve (12) months from the date this amendment is adopted, at which time they shall apply for renewal in accordance with the provisions of this chapter as applicable. All employees holding Employee Registration/I.D. Cards pursuant to Chapter 6.36 of the Municipal Code in effect before the amendment of this chapter shall be deemed permitted under the provisions of this chapter. Those employees who hold such permits and are not ~key management employees" as that term is defined herein, shall apply for renewal of their permit not more than twenty-four (24) months from the date this amendment is adopted. Those employees who are key management employees shall apply for a key management employee license as required by this chapter not more than twelve (12) months from the date hereof. Such key management employees' Employee Registration/I.D. Cards issued before the effective date of this amendment shall be deemed effective until the later of (1) issuance or denial of a key employee license under this~ chapter; or (2) eighteen (18) months from the date hereof. Preexisting lawful non-conforming card clubs (1) shall be allowed to have no more than ten (10) card playing tables; (2) shall continue to pay a business license tax of twenty-five dollars ($25.00) per card table per year; (3) shall be allowed to play only Panguingue (Pan), Five Card Draw Poker (including lowball), Texas Hold'em, Double Poker, or any other game specifically included on the approved card game list on file in the Police Department ; and (4) shall not be allowed to expand in area or in the number of tables operated. SECTION 2: SEVERABILITY In the event any section or portion of this ordinance shall be determined invalid or unconstitutional, such section or portion shall be deemed severable and all other sections or portions hereof shall remain in full force and effect. June 9, 1995 60 SECTION 3: EFFECTIVE DATE; PUBLICATION; POSTING Pursuant to the provisions of Government Code Section 36933, a Summary of this Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the city Clerk's Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance, the city Clerk shall (1) publish the summary, and (2) post in the city Clerk's Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting. This ordinance shall become effective thirty days from and after its adoption. Introduced at a regular meeting of the City Council of the city of South San Francisco held on the day of , 1995. Adopted as an Ordinance of the City of South Francisco at a regular meeting of the City Council of the City of South San Francisco held the day of 1995 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this day of , 1995. Mayor June 9, 1995 61 DATE: TO: FROM: SUBJECT: June 14, 1995 Honorable Mayor and City Council City Manager CONSIDERATION OF CARD CLUB PROPOSAL At the City Council's direction on January 18 and May 24, 1995, the staffhas subsequently prepared detailed reports and the necessary enabling documents to allow for action on the card club proposed for the Shearwater redevelopment site. For purposes of clarification as to the substance and order in which each of the relevant items comprising this report will be considered, the following is a brief summary highlighting each of the pertinent documents requiring action. To provide for an expansion of gaming activity in the City it is necessary to amend the City's current cardroom ordinance to allow for regulation of the two existing non-conforming cardrooms, as well as a new and larger facility. The regulatory issues will be covered in the first report by the Police Chief. Encompassed in the proposed card club ordinance are subsections 6.36.290 and 6.36.300 which specifically detail the Annual License Tax and Gross Revenue License Taxes that will be required if and when a card club permit is approved. The revenue issues are outlined with specificity in the second report prepared by the Finance Director. Following the public hearing on this item and assuming that there is consensus on the comprehensive changes proposed in the card club ordinance, the Council may waive reading and introduce the ordinance amending Chapter 6.36 of the municipal code concerning card clubs. The City Attorney has prepared a report that will follow the public hearing and which discusses the various options available to the Council with respect to proceeding with a general plan amendment, as well as the initiative options that have been developed to address a variety of issues raised during previous COUncil meetings. The initial step to be taken in the event that the Council desires to call for an election, is to determine what related gaming issues should be included in the initiative. It will also be necessary for the Council to consider whether an election on any of the initiatives would occur in the November general election or on a special election ballot. It should be noted that a matrix has been included in the City Attorney's report on page 12 which graphically represents the range of actions on which the Council may base its decision relative to the card club issue. One substantive change that merits highlighting involves the location description included in the initiative options listed. The proposed location for the card club development has previously been designated as simply the Shearwater site. As described in the accompanying report, the proposed location is designated as 'an area East of Highway 101 and north of Oyster Point Boulevard at or near the Shearwater/U.S. Steel site'. The reason for this change is that Hollyw[.,X~ll~,~.l~k~elgOl:~D~ Staff Report To: Honorable Mayor and City Council Subject: Consideration of Card Club Proposal June 14, 1995 Page 2 developer of the proposed card club, has just recently secured an additional partner in the project with considerable expertise in real estate devdopment, commercial, retail and entertainment enterprises. This new partner has identified a number of opportunities relative to the bayfi'ont property which may result in an expanded area of development for commercial and retail activities within the project scope. The specifies of how the project could be expanded are not available at this time. However, with the prospect for a more comprehensive development that would enhance the economic and environmental benefits to the community, the proposed scope of the · project has been expanded slightly eastward. Finally, the Interim Director of Economic and Community DeVelopment has prepared a revised schedule for implementation of the Shearwater development project. It provides the timeframe for the preparation of the Environmental Impact Report, election date options, and negotiations for the proposed project. The controlling factors in the process will be, of course, the election alternative which maY be selected by the Council and the preparation and adoption of the Environmental Impact Report. Michael 3_ Wilson City Manager MAW:PEM:~ CENTRAL DATE TO: FROM: SUBJECT: June 14, 1995 The Honorable Mayor and City Council Interim Director of Economic and Community Development Revised Schedule for Shearwater Project Implementation FOR INFORMATION ONLY BackgrounWDiscussion Attached is a revised schedule which includes schedule information for the preparation of an Environmental Impact Report, Election Date options, and negotiations for the proposed Shearwater project consisting of a 400,000 square foot retail shopping center and 100,000 square foot cardroom casino. The actFvity controlling the process, with the exception of the election alternative is the preparation and adoption of an Environmental Impact Report for the project. The EIR schedule is considered a tight one, and will be affected by the date the city/agency receives the plan for the project. The December 13 date for the EIR public hearing assumes that the Council would not want to consider the item at its reorganization meeting on November 22. This date would be an option as would a Special Meeting for the EIR public hearing. Irrespective of the issues the council might choose to put on an election ballot, an EIR must still be approved for the project itself.. Such a site plan and formal application is expected within the next several weeks. The schedule reflects the two election options available to the city council and illustrates the time lines for putting a ballot measure on either the November General Election or for a Special Election if that is what the city council desires. This information reflects the comments made in the city attorney's options report to the council. There are three agreements anticipated to be negotiated as a part of this project. The first is an Exclusive Negotiating Rights Agreement (ENRA) entered into between the CENTRAL. RI~CORD~ k'lL.~ NO. development team and the redevelopment agency. The ENRA which will spell out the purpose of the project, the composition of the development team, the broad responsibilities of the parties, and framework of the negotiations including important schedule milestones to later be included in more detail in the Disposition and Development Agreement (DDA) and the Owner Participation Agreement (OPA). Staff expects that an ENRA will be before the Agency for consideration within forty five (45) days. Concurrent with the negotiation of the ENRA, the necessary information will be developed to enable the staff to commence negotiations on the DDA and the OPA. The DDA is necessary because of the disposal of the City/Agency six acre parcel adjacent to the Shearwater site. This document will spell out the conditions under which the property will be transferred, the value of the transfer and any obligations of the parties in this proposed transaction. The OPA will spell out the rights of the property owner(s) of the Shearwater site within the Shearwater Redevelopment Project Area and the expectations of the redevelopment agency on the details of the proposed development. It will also spell out any development obligations of the developer and contain the details of the financial arrangements for the development as it relates to public improvements and other obligations required of the development. By: ~'~c--~~--~,~------ Approved: Robert F. Beyer ! Interim Director of Econ6mic and Community Development Michael~~~.~~~~ City Manager Attachment 2 SHEARWATER EIR & ELECTION SCHEDULE Start Finish Activity Name Date Date Duration ENVIRONMENTAL IMPACT 5/18/95 12113/95 209.00 REPORT Notice ot Preparation 5118/95 6/18/95 31.00 Consultant Scope/Selection 6/1/95 6/22/95 21.00 Consultant Contract 6/22/95 6/29/95 7.00 Existing Condition Report 611/95 7/1/95 30.00 Adh ~ni~bative DEIR 7/1/95 8/15/95 45.00 St~f Review 8115/95 8/22/95 7. O0 '¥alt EIR 8122195 9/12~95 21.00 Public Review 9/12/95 10/27/95 45.00 Finsi EIR 10128/95 11/18195 21.00 Public Hearings 12/13195 ELECTION · General Eleclion 11/7/95 Last Date to Put item on Ballot 8/10/95 · Special Election 6/14/95 Call Special Election 6/14/95 Eadiast Election Date 9112/95 9/12/95 90.00 NEGOTIATIONS · Exclusive Negotiating Rights Agreement 6/7/95 7122/95 NRA) · Disposition and Development Agreement 6/7/95 915/95 (DDA) · Owner Participation Agreement (OPA) 6/7/95 9/5/95 Approval ot DDA and OPA 12113/95 45.00 90.00 90.00 May '95I Jun !35 14 21 28 4 11 18 25 2 Ju~135 I Aug 135 I Se~135 9 16 23 30 6 13 20 27 3 10 17 24 1 88 days after call fo~ Special Elect~On 135 I Nov 135 I Dec 135 15 22 29 5 12 19 26 3 10 17 24 C 0 0 Redevelopment Agency 14 21 28 4 11 18 25 2 9 16 23 30 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 3 10 17,24 31 NOTICE OF PUBLIC MEETING AND PUBLIC HEARING RELATED TO GAMING ROOM TAX ORDINANCE NOTICE IS HEREBY GIVEN THAT: The City Council of the City of South San Francisco will hold a public meeting on May 10, 1995, and a public hearing on June 14, 1995, related to the potential adoption of a Gaming Room Tax Ordinance. The public meeting and public hearing will be held at 7:30 p.m. at the South San Francisco Municipal Services Building, located at 33 Arroyo Drive, South San Francisco, CA 94080. The proposed tax may require the holder of a gaming club license to pay the City of South San Francisco a fixed annual license tax and/or a monthly percentage gross revenue license tax equal to 13% of gross monthly revenue. The activity sub- ject to the gross revenue tax may include the total amounts received or receivable for seat rental fees, admission fees, administrative cost portions of tournament fees, table reve- nues and any and all revenues derived from gaming activities. Assuming the gaming facility does $3.86 million dollars per month in gaming revenue, and assuming that the tax rate on the percentage of gross revenue is equal to 13%, the esti- mated annual revenue would be approximately $6,021,600. Questions regarding the proposed ordinance should be addressed to Mike Brooks, Director of Finance, at 315 Maple Avenue, South San Francisco, CA 94080, (415) 877-8509. Dated: April 20, 1995 /s/ Barbara A. Battaya City Clerk City of South San Francisco NO. TO: FROM: RE: DATE: CITY OF SOUTH SAN FRANCISCg E C E IV ~ ~ INTER-OFFICE MEMORANDUI~ ~ 20 /~9:1P~ OFFICE OF CITY CLERt SAN FRANCtSC Barbara Battaya, City Clerk Steven T. Mattas, City Attorney~ Public Notice of Proposed Gaming Ordinance April 20, 1995 Please arrange for publication of the following public notice related to the revenue portion of the proposed gaming ordinance: "Notice of Public Meeting and Public Hearing Related to Gaming Room Tax Ordinance. The City Council of the City of South San Francisco will hold a public meeting on May 10, 1995, and a public hearing on June 14, 1995, related to the potential adoption of a Gaming Room Tax Ordinance. The public meeting and public hearing will be held at 7:30 p.m. at the South San Francisco Municipal Services Building, located at 33 Arroyo Drive, South San Francisco, CA. The proposed tax may require the holder of a gaming club license to pay the City of South San Francisco a fixed annual license tax and\or a monthly percentage gross revenue license tax equal to 13% of gross monthly revenue. The activity subject to the gross revenue tax may include the total amounts received or receivable for seat rental fees, admission fees, administrative cost portions of tournament fees, table revenues and any and all revenues derived from gaming activities. Assuming the gaming facility does $3.86 million dollars per month in gaming revenue, and assuming that the tax rate on the percentage of gross revenue is equal to 13%, the estimated annual revenue would be approximately $6,021,600. CENTRAL RECORD~ ~'L£ NO. ~''~--/7~'~ / TO: FROM: RE: DATE: PAGE: Barbara Battaya, City Clerk Steven T. Mattas, City Attorney Public Notice of Proposed Gaming Ordinance April 20, 1995 2 Questions regarding the proposed ordinance should be addressed to Mike Brooks, Director of Finance, at 315 Maple Avenue, South San Francisco, CA (415) 877-8509. Please arrange to have this notice published at least three (3) times pursuant to the requirements of Gov. Code § 54954.66(b) (1). The notice should be published for the first time no later than April 26, 1995. Thank you for your anticipated cooperation. STM:kag cc: Mike Wilson Pat Martel Michael Brooks Bob Beyer 405\memo\apr95\GAIVlNOG.A20 CENTRAL R~CORD$