HomeMy WebLinkAbout2013-04-30; City Council; 21202; Prohibiting Mini-Satellite WageringCITY OF CARLSBAD - AGENDA BILL 12
AB# 21.202 INTRODUCE AND ADOPT URGENCY
ORDINANCE NO, PROHIBITING
MINI-SATELLITE WAGERING WITHIN
THE CITY OF CARLSBAD
DEPT. DIRECTOR
MTG. 4/30/13
INTRODUCE AND ADOPT URGENCY
ORDINANCE NO, PROHIBITING
MINI-SATELLITE WAGERING WITHIN
THE CITY OF CARLSBAD
CITY ATTORNEY ^
DEPT. CA
INTRODUCE AND ADOPT URGENCY
ORDINANCE NO, PROHIBITING
MINI-SATELLITE WAGERING WITHIN
THE CITY OF CARLSBAD CITY MANAGER
.prohibiting mini-satellite wagering
RECOMMENDED ACTION:
Introduce and adopt urgency Ordinance No.
in the City of Carlsbad.
Adopt Resolution No. 2013-089 declaring the City Council's intention to have staff study
and recommend revisions to Title 5 of the Carlsbad Municipal Code as necessary to prohibit
mini-satellite wagering within the City.
ITEM EXPLANATION:
Horse racing was legalized in California in 1933 through a constitutional amendment which
authorized the Legislature to regulate horse racing and authorize pari-mutuel wagering at
licensed racing tracks. In California pari-mutuel wagering (a system of betting in which those
who have bet on the winners of a race share in the total amount wagered less a percentage for
the management) is limited to horse racing, which is regulated by the California Horse Racing
Board. The Board authorized operation of mini-satellite wagering facilities (not located at a
racetrack) in 2007 and regulations for such facilities were formulated in 2008. The state law
allows for up to 45 mini-satellites, 15 in each of the three racing zones in California, without the
racetracks approval, as long as they are not within 20 miles of the roughly three dozen
established satellites such as the Los Alamitos and Del Mar racetracks. Recently mini-satellite
wagering facilities have been located within a restaurant/sports bar in some California cities.
The City has now received an application for a business license for Silky Sullivan's Race and
Sports Bar to be located in the Carlsbad Research Center, which would include installation of
large flat screen televisions, and a licensed pari-mutuel teller counter and self-service terminals
for wagering within a separate secured area known as the money room. A portion of the
wagering revenue, one third of one percent of the amount wagered at the facility, would be paid
to the City by the business. This mini-satellite wagering facility was licensed by the California
Horse Racing Board conditioned upon obtaining all necessary local approvals. However, the
business license application was denied after consultation with the City Planner, who
determined that mini-satellite wagering is not an allowed accessory use in the Carlsbad
Research Center which is controlled by Specific Plan (SP-180) which dictates exclusive uses in
the Carlsbad Research Center. This denial was not appealed.
DEPARTMENT CONTACT: Celia A. Brewer 760-434-2891 celia.brewer@,carlsbadca.gov
FOR CITY CLERKS USE ONLY. X COUNCIL ACTION: APPROVED X CONTINUED TO DATE SPECIFIC •
DENIED • CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER-SEE MINUTES •
AMENDED •
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The applicant has now inquired as to where else in the City mini-satellite wagering may be
allowed as an accessory use to the proposed restaurant/sports bar. The Zone Code defines
"Accessory" as: "....a use which is subordinate to and the use of which is incidental to that of
the main...use on the same lot" (CMC 21.04.00). A use similar to those listed in the Municipal
Code as permitted by right may be permitted as an accessory use if the City Planner
determines such similar use falls within the intent and purpose of the zone, and is substantially
similar to the specified permitted uses (CMC 21.26.010).
Any form of gambling has generally been prohibited within the City. Carlsbad Municipal Code,
Title 5, Chapter 5.10 prohibits Bingo unless conducted by a non-profit organization with a valid
license for that purpose. Title 5, Chapter 5.12 prohibits Cardrooms where cards are used for
money, profit, barter or where other consideration exchanges hands. Since the City Council
has prohibited gambling throughout the City, it does not appear to be the intent and purpose of
the City Council to allow mini-satellite wagering, which is another form of gambling, within any
zone in the City.
Mini-satellite wagering may also be in conflict with the proposed General Plan Vision and Goals
formulated for the General Plan Update that is currently in progress. Those goals promote a
community which emphasizes a small town feel, family oriented activities, access to recreation
and active healthy lifestyles, history, the arts and cultural resources. The City Council has
chosen to prohibit gambling activities in the past because the Police Department felt that the
burden from permitting such activities outweighs the benefits, in that they require law
enforcement time and supervision exceeding manpower available to adequately monitor them.
Gambling can be addicting, cash transactions enhance the likelihood of assaults and robberies,
such facilities may attract gamblers from outside the City, and other adverse secondary effects
may become more prevalent with these mini-satellite wagering facilities. In combination with
alcohol sales, these health and safety concerns become magnified.
MORATORIUM
Government Code section 65858 permits the City Council to adopt an interim ordinance
prohibiting a proposed use which may be in conflict with the contemplated General Plan that the
City Council is considering or studying or intends to study within a reasonable time. Pursuant to
CS-009, the urgency ordinance requires a majority vote of the City Council. The urgency
ordinance will be effective for 45 days, and may be extended after notice in a public hearing for
an additional 10 months and 15 days and thereafter could be extended for an additional one
year. Government Code section 36937, which would be applicable to Title 5 Business Licenses
and Regulations, provides for the immediate adoption of an ordinance when necessary for the
preservation of the health and safety of the public.
The prohibition on licensing a mini-satellite wagering facility would prevent this use in the City
until the City Council can determine if mini-satellite wagering is in the best interest of the public
health, welfare, and safety.
Attached for the City Council's consideration is Urgency Ordinance No. CS-215 for
introduction and adoption, giving legal affect to that determination. Following the adoption of
this ordinance, the City Council shall hold a public hearing on May 28, 2013 to consider
extending the ordinance for up to ten (10) months and fifteen (15) days pursuant to Government
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Code section 65858(a). The City Clerk is directed to notice the hearing as required by
Government Code section 65090.
FISCAL IMPACT:
There will be substantial expenditures of staff time in studying and making recommendations as
to whether or not revise Title 5 of the Carlsbad Municipal Code.
ENVIRONMENTAL IMPACT:
The adoption of the proposed Ordinance and Resolution of Intention will authorize staff to study
and gather information regarding mini-satellite wagering, and as such, is statutorily exempt from
environmental review at this time per section 15262 of the California Environmental Quality Act.
EXHIBITS:
1. Urgency Ordinance No. cs-215
2. Resolution of Intention No. 2013-089
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ORDINANCE NO. CS-215
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, ADOPTING AN
URGENCY ORDINANCE PROHIBITING MINI-
SATELLITE WAGERING WITHIN THE CITY OF
CARLSBAD
WHEREAS, horse racing was legalized in California in 1933 through a
constitutional amendment which authorized the legislature to regulate horse racing
and to authorize pari-mutuel wagering at licensed racing tracks; and
WHEREAS, in California pari-mutuel horse racing is regulated by the
California Horse Racing Board; and
WHEREAS, the California Horse Racing Board authorized operation of
mini-satellite wagering facilities (not located at a racetrack) in 2007 and regulations
for such facilities were formulated in 2008; and
WHEREAS, recently mini-satellite wagering facilities have been
located within a restaurant/sports bar in some California cities; and
WHEREAS, the business license application was denied after
consultation with the City Planner who determined satellite wagering is not an
allowed accessory use at the location proposed by the applicant; and
WHEREAS, the applicant has now inquired as to where else in the
City satellite wagering may be allowed; and
WHEREAS, since any form of gambling, including Cardrooms and
Bingo, has generally been prohibited within the City, it does not appear to be the
intent and purpose of the City Council to allow mini-satellite wagering as a primary
or accessory use in any zone; and
WHEREAS, mini-satellite wagering appears to be in conflict with the
proposed General Plan Vision and Goals formulated for the General Plan Update
currently in progress, which include the promotion of a community which
emphasizes a small town feel, family oriented activities, access to recreation and
active healthy lifestyles, history, the arts and cultural resources; and
WHEREAS, mini-satellite wagering is a form of gambling which may
be addictive; and
WHEREAS, mini-satellite wagering involves cash transactions which
enhance the likelihood of assaults and robberies endangering citizens and creating
the necessity for police response and;
WHEREAS, mini-satellite wagering may attract gamblers from outside
I the City; and
WHEREAS, in combination with alcohol sales, these adverse effects
become magnified; and
WHEREAS, City staff needs time to comprehensively study and
recommend revisions to Carlsbad Municipal Code, Title 5, to protect the health,
safety and welfare of its citizens; and
NOW, THEREFORE, the City Council of the City of Carlsbad ordains
as follows:
SECTION 1: That the above recitations are true and correct.
SECTION 2: No application for a business license for a mini-
satellite wagering facility within the City shall be accepted, processed or approved.
SECTION 3: On or before 45 days following the adoption of this
ordinance, the City Council shall hold a public hearing to consider extending this
ordinance for 10 months and 15 days pursuant to Government Code section
65858(b). The City Clerk is directed to notice the hearings as required by
Government Code section 65090.
DECLARATION OF URGENCY: This ordinance is hereby declared to
be an emergency ordinance adopted as an urgency measure to protect the public
health, safety and welfare and shall take effect immediately upon its adoption. The
[facts constituting the emergency are set forth above and represent a current and
immediate threat to the public health, safety or welfare of Carlsbad citizens.
EFFECTIVE: This ordinance shall be effective immediately upon
passage and shall be of no further force and effect after 45 days of the date of its
adoption unless extended by the City Council pursuant to Section 3. Thereafter, it
shall remain in effect until the contemplated studies are completed unless sooner
repealed by the City Council.
At least ten days prior to the expiration of this interim ordinance, the
City Council shall issue a written report describing the measures it has taken to
alleviate the conditions which led to the adoption of this ordinance. The City Clerk of
the City of Carlsbad shall certify to the adoption of this ordinance and cause it to be
published within 15 days after its adoption.
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1 INTRODUCED, PASSED AND ADOPTED at a regular meeting of the City
2 Council of the City of Carlsbad on the 30*^ day of April, 2013 by the following vote to wit:
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4 AYES: Council Members Hall, Packard, Wood, Blackburn and Douglas.
5 NOES: None.
6 ABSENT: None.
^ ABSTAIN: None.
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9 APPROVED AS TO FORM AND LEGALITY
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CELIA A. BREWER, City Attorney
ATtHAllL, Mayor MATTHAlL, Mayor
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ATTEST:
iARP^^^^UES^Ci^^
^^^^^^^^
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1 RESOLUTION NO. 2013-089
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA DECLARING ITS
^ INTENTION TO STUDY AND CONSIDER REVISIONS
TO TITLE 5 OF THE CARLSBAD MUNICIPAL CODE AS
NECESSARY TO PROHIBIT MINI-SATELLITE
5 WAGERING FACILITIES WITHIN THE CITY
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6 WHEREAS, horse racing was legalized in California in 1933 which includes pari-
7 mutuel wagering (a system of betting in which those who have bet on the winners of a
^ race share in the total amount wagered less a percentage for the management) at
licensed racing tracks; and
WHEREAS, in California pari-mutuel wagering is regulated by the California
Horse Racing Board; and
WHEREAS, in 2007 the California Horse Racing Board authorized operation of
mini-satellite wagering facilities not located at a racetrack; and
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j3 WHEREAS, recently mini-satellite wagering facilities have been located within a
16 restaurant/sports bar in some California cities; and
17 WHEREAS, the City has recently received an application for a business license
18 for a restaurant/sports bar which would include mini-satellite wagering as an accessory
use; and
WHEREAS, the business license application was denied after consultation with
the City Planner who determined satellite wagering is not an allowed accessory use at
the location proposed by the applicant; and
WHEREAS, the applicant has now inquired as to where else in the City satellite
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1 WHEREAS, since the City Council has prohibited any form of gambling
2 throughout the City, it does not appear to be the intent and purpose of the City Council
to allow mini-satellite wagering which is form of gambling; and
WHEREAS, mini-satellite wagering facilities appear to be in conflict with the
proposed General Plan vision and goals formulated for the General Plan Update
currently in progress, which include promotion of a community which emphasizes a
small town feel, family oriented activities, access to recreation and active healthy
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g lifestyles, history, the arts and cultural resources; and
2Q WHEREAS, mini-satellite wagering may be addictive, involves cash transactions
11 which enhance the likelihood of assaults and robberies endangering the safety of
12 citizens and requiring police response, may attract gamblers from outside the City which
1^ may be inconsistent with the General Plan Vision and Goals, and in combination with
alcohol sales these adverse effects are magnified; and
WHEREAS, the City Council believes that it is necessary for staff to
comprehensively study and recommend revisions to the Cartsbad Municipal Code, Title
5, to protect the health, safety and welfare of its citizens.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
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2Q Carlsbad, California as follows:
21 1. That the above recitations are true and correct.
22 2. That pursuant to Section 65358 of the State Government Code, the City
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Council of the City of Cartsbad declares its intention to consider amendments to
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Carlsbad Municipal Code, Title 5, pertaining to mini-satellite wagenng facilities within
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the City.
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3. City staff is hereby directed to study this matter, prepare
recommendations and to set public hearings for City Council to determine whether it is
in the best interests of the public health, safety and welfare to prohibit mini-satellite
wagering facilities in the City.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Council of the City of Carlsbad on the 30*^ day of April, 2013, by the following vote to
wit:
AYES:
NOES:
Council Members Hall, Packard, Wood, Blackburn and Douglas.
None.
ABSENT: None.
MA
ATTEST:
.^fE^Ml^^ City Clerk
Urgency Ordinance Prohibiting
Mini-Satellite Wagering
April 30, 2013
Background
•Horse racing legalized in California in 1933 through a
constitutional amendment
•Authorized the Legislature to regulate horse racing and
pari-mutuel wagering at licensed racing tracks
•Pari-mutuel wagering is a system of betting in which
those who have bet on the winners of a race share in
the total amount wagered less a percentage for the
management
Background
•The California Horse Racing Board authorized
operation of mini-satellite wagering facilities
(not located at a racetrack) in 2007 and
regulations were formulated in 2008
•Several have been located within a
restaurant/sports bar in some California cities
Proposed Use
•Business license requested for
restaurant/sports bar with mini-satellite
wagering facility
•Business license application denied
Not an allowed accessory use pursuant to
the applicable Specific Plan
Current City Regulations
•It does not appear to be the intent and purpose
of the City Council to allow mini-satellite
wagering as an accessory use in any zone
•Any form of gambling has generally been
prohibited in the City
•Mini-satellite wagering may also conflict with the
proposed General Plan Vision and Goals for the
update that is currently in progress
Current City Regulations
•Title 5, Chapter 5.10 prohibits Bingo unless
conducted by a non-profit organization with a
valid license
•Title 5, Chapter 5.12 prohibits Cardrooms
where cards are used for money, profit, barter
or where other consideration exchanges
hands
Moratorium
•Government Code permits the City Council to
adopt an urgency ordinance by majority vote
prohibiting a proposed use which may be in
conflict with the Contemplated General Plan
•Effective for 45 days and may be extended for
an additional 10 months and 15 days
Recommendation
•Introduce and adopt Urgency Ordinance No. CS-215 precluding the acceptance, processing, or approval of an application for mini-satellite wagering in the City of Carlsbad
•Adopt Resolution No. 2013-089 declaring the City Council’s intention to have staff study and make recommendations as to whether it is in the best interest of the public health, safety and welfare to prohibit mini-satellite wagering facilities in the City