01-18-2005 - Bingo at West Covina Senior Citizens CenterCity of West Covina
Memorandum
AGEND
ITEM NO. F-1
DATE: Januan
TO: Andrew G. Pasmant, City Manager PRINTED ON
and City Council
FROM: Steven L. Samaniego,
Interim Community Services Director
SUBJECT: BINGO AT THE WEST COVINA SENIOR CITIZENS CENTER
RECOMMENDATION:
PAPER
It is recommended the City Council approve a request from the West Covina Senior Citizens
Center, Inc. to reduce bingo lease payments from $500 to $250 per Saturday.
DISCUSSION:
r
The West Covina Senior Citizens Center, Inc is requesting a reduction in the monthly lease
payment to the city from the current $2000 per month to $1000 ($500 per game each Saturday to
$250 per game (Attachment A). This request is based on the d rop i n t he n umber o f p layers
resulting in a loss of revenue for the group. In an attempt to continue to operate the program the
West Covina Senior Citizens, Inc. Board of Directors agreed to lower the payouts and lower the
cost of the second buy -in.
West Covina Senior Citizens Center, Inc. sites the following State of California Bingo Law Sec.
326.5(k)(2) as justification for their request: "A portion of such proceeds not to exceed 20
percent of the proceeds before the deduction of prizes or one thousand dollars ($1,000) per
month, whichever is less, may be used for rental of property, overhead, including the purchase of
Bingo equipment, administrative expenses, security equipment and security personnel"
(Attachment B). West Covina Senior Citizens Center, Inc. claims that the only reason they
entered into the Agreement (Attachment C) to pay more than what the State law required is
because the City needed financial assistance at the time. . 1'
The original agreement has been in effect since 1994 with no increase during this! period.
Subsequent to the 1994 agreement a new facility rental schedule of fees has been approved by
Council at a much higher rate than the group is currently paying. If charged under the current
City facility fee schedule rental, the group would pay a total weekly fee of $1,626.65 per ,Week as
opposed to the current fee of $500 per week. r
Staff s justification m recommending approval of the lease reduction is that the City has,more to
lose without the lease. For example, the bingo program, which has 125 to 130 participants will
close and the city will lose approximately $12,000 per year. 9
In addition the West Covina Senior Citizens Center Inc. has per the p agreement, donated items
of value. to the Senior Center that might otherwise be purchased by the City such as tables,
chairs, wireless microphones, and items during the holidays ranging in an average of $101000 per
year. Although, West Covina Senior Citizens Center, Inc. has informed staff that they cannot
afford to continue the donations.
FISCAL IMPACT: Ik
If approved, the request would result in a loss of $12,000 in annual revenues to 1account
111.51.4697
If not approved, the fiscal impact would be a loss in $24,000 in annual revenues and an average
of $10,000 in in -kind donations of equipment and/or supplies.
Prepared by: Scott Smilowitz Reviewed/Approved by: Steven L. Samaniego
Community Services Manager Interim Community Services Director
I
C
r.
ATTACHMENT A
West Covina Senior Citizens Center, Inc.
P.O. Box 4304
West Covina, Ca. 91791
West Covina City Council Dec. 6, 2004
1444 West Garvey Ave.
West Covina, Ca. 91790
Mayor Miller,
Bingo has been in existence since Feb. 1995 and we have been paying the City of {West
Covina $500. per week rent since that date. This past year, the numbers of players has
dropped considerably, thus we have lost revenue. We have, had to use approximately
$25,000. from our bank account to supplement the payouts to the Bingo players.
We had thought about closing at the end of this year and had announced this to the
players. Players have come up to me with suggestions and one of them is to I wer'iour
payouts like we had it several years ago.
At my last Board Meeting, the Board passed the recommendation to lower the payouts
and lower the cost of the second buy -in so that we could continue to have the Bingo.
According to State of California Bingo Law, Sec. 326.5 (k)() 2 " A portion of. such
proceeds not to exceed 20 percent of the proceeds before the deduction of prizes or one
thousand dollars ($1,000.) per month, whichever is less, may be used for rental of 'i�
property, overhead, including the purchase of -bingo equipment, administrative expenses,
security equipment and security personnel."
In view of the above, we are asking that our monthly rent be reduced to the $1,OOO1 per
month as stipulated be State Law. By doing so, we hope that we can continue to have
Bingo and maybe have an increase in attendance. 1'
Kathleen Miller, President
TOTALS IN DONATIONS
YEAR
SENIOR CENTER
OTHERS
TOTALS
1995
$ 6,050.00
$ 2,000.
$ 8,050.00
1996
9,865.-�4
23,000.
32,86534
1997
11,110.72
21,500.
32,610.72
1998
11,674.26
14,000.
25,674.26
1999
11,333.81
17,800.
29,133.81
2000 -
11,494.69
22,000.
33,494.69
2001
12,137.39
19,000.
31,13739
2002
7,180.00
4,500.
11,680.00
2003
6,000.00
1,500.
7,500.00
2004
7,990.43
00
7,990.43
To Date.
94.,836.64
125,300.
220,136.64
„ :ATTACHMENT B
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32. The Department shall issue a bingo supplier license to the applicant when
meets of Rule 31 have been met Where a III
may deny a bingo supplier license to the a the requrn'-
requirement is not met, the Department
license may appeal pursuant to Bingo Rule 5. (Added 12/13/Person 88� a bingo supplier I�
33. It shall be the responsibility of each licensed
in writing of all a bingo supplier to notify with o thi' the Department;
Angeles. (Added 12/13/88) organizations Conducting bingo in the City of Los
34. Each licensed bingo supplier shall maintain and keep records relating
to
upon which bingo supplies or equipment g each occasion
bingo in the City of Los Angeles. Such are Provided to °rclanizations conducting
description of the bingo supplies orrecords shall include a complete and true
and shall be available at all times tthe Dequipment Provided, including serial' numbers,
(Added 12/13/88) Department for inspection and copying. '
35. A bingo supplier license may be sus
its officers, agents or employees suspended or revoked if the licensee or any of
P yees has. (1) knowingly made any
n f
statement in the application or in g Y Y use or misleading
Provisions of the City°{Angeles `�Y record or report, or (2) violated any of the
Los dBingo Ordinance or Rules, or (3) violated Penal
. Code Section 326.S, or (4) violated any other a
A bingo supplier license sus applicable law. I
Pension or ul �
in the same manner as a bingo revocation proceeding shall be conducted I'
Rule 25, and the same g license revocation proceeding, pursuant to Bingo II.
set forth. in Rule 2S shale requirements with respect to notice and I
apply to the suspension
or revocation of request
for hearing
license.. go supplier
' Upon demand a bingo suPPlier license,:, - . •-,: .-. -..::. �:: .::. -. .�:.
shall be -returned to the Departm
A bingo supplier who
another license has had a license revoked shall n ..
until of
the expiration of 12 months following eligible to receive
_ (Added 12/13/88) g the date of revocation.'
36. An authorized representative of the
supplier is not providing�»r'mrent who observes that a licensed
Of California, the City of srrPPlies or equipment according to the bingo
�w Angeles bingo ordfnan laws of the State
s, may issue an order to immediately ce,. bingo rules, or other, applicable ;
z ' shall be served in writing upon the bins and desist such violation Said order
is observed, and shall set forth the 9 PPher licensee. at the time the violation
licensee to cease such violation nature of the violation. Failure of the bingo supplier u
(Added 12/13/88) Promptly may result in revocation of the license. !
STATE OF CALEFp . -
• N�I�TIA
B � • : - _
AGO - jW
- Section 326.5 of the Penal
326.5 a Code as Amended 'l
() Neither this chapter nor Chapter 10h 1981 i
any bingo game which is (commencing with
conducted in a City'
Section 330) applies to
to an ordinance enacted under ty' County, or city and county
- Section 19 of Pursuant -
Articl
e IV
ofConstitution, t h _ e State+'+
. . _
•
provided that such ordinance allows games'to be conducted only by organizations
exempted from the payment of the bank and,corporation tax by Sections 23701a,
23701b, 23701d, 23701e, 23701f, 23701g, and 237011 of the Revenue and
Taxation Code and by mobilehome park associations and senior citizens
organizations-, and provided that the receipts of such games are used only for
charitable purposes.
(b) It is a misdemeanor for any person to receive or pay a profit, wage, or salary
from any bingo game authorized by Section 19 of Article IV of the State Constitution.
Security personnel employed by the organization conducting the bingo game may
be paid from the revenues of bingo games as provided in subdivisions 0) and
(1d• -
(c) A violation of subdivision (b) of this section shall be punishable by a fine not ,
to exceed ten thousand dollars ($10,000) , which fine shall be deposited in the
general fund of the city, county, or city and county which enacted the ordinance
authorizing the bingo game. A violation of any provision of this section, other
than subdivision (b) , is a misdemeanor.
(d) The city, county, or city and county which enacted the ordinance authorizing.
the bingo game may bring an action to enjoin a violation of this section.
(e) No minors shall be allowed to participate in any bingo game
(f) An organization authorized to conduct bingo games pursuant to subdivision (a)
shall conduct a bingo game only on property owned o= leased by it, or property
whose use is donated to the organization, and which property is used by such
organization for an office or for performance of the purposes for which the
organization is organized Nothing in this subdivision shall be construed to require
that the property owned or leased by or whose use is donated to the organization
be used or leased exclusively by or donated exclusively to such organization.
(g) All bingo games shall be open to the public not just to the members of the authorized
organization
(h) A bingo game shall be operated and staffed only by members of the authorized '
organization which organized it Such members shall not receive a profit, wage,
or -salary from any bingo game. Only the organization authorized to conduct a
bingo game shall operate such game, or participate in the promotion, supervision,
or any other phase of such game. This .subdivision does not preclude the _
employment of security personnel who are not members of the authorized . =
organization at such bingo game by the organization conducting the game.
(i) No individual, corporation, partnership, or other legal entity except the organization =`-
authorized to conduct a bingo game shall hold a financial interest in the conduct
of such bingo game.
6) With respect to organizations exempt from payment of the bank and corporation
tax by Section 23701d of the Revenue and Taxation Code, all profits derived from
. a bingo game shall be kept in a special fund or account and shall not be commingled
with any other fund or account Such profits shall be used only for charitable
purposes.
—10—
(k) With respect to other organizations authorized to conduct bingo games pursuant
to this section, all proceeds derived from a bingo game shall be kept in a special
fund or account and shall not be commingled with any other fund or account f
Proc
eeds are the receipts of bingo games conducted by organizations not within
subdivision (j) . Such proceeds shall be used only for charitable purposes, except
as follows.
(1) Such proceeds may be used for prizes.
(2) A portion of such proceeds, not to exceed 20 percent of the proceeds before
the deduction for prizes, or one thousand dollars ($1,000) per month, whichever
is less, may be used for. rental of property, overhead including the purchase of
bingo equipment, administrative exipenses, security equipment, and security
personnel
(3) Such proceeds may be used to pay license fees.
M A city, county, or city and county which enacts an ordinance permitting
bingo games may specify in such ordinance that if the monthly gross receipts
from bingo games of an organization within this subdivision exceed five thousand
dollars ($5,000) a minimum percentage of the proceeds shall be used only for
charitable purposes not relating to the conducting of bingo games and that the
balance shall be used for prizes, rental of property. overhead, administrative
expenses and payment of license fees. The amount of proceeds used for rental
of property, overhead, and administrative expenses is subject to the' limitations
specified in paragraph (2) of this subdivision.
(ll (1) A city, county, or city and county may impose a license fee on each
organization which it authorizes to conduct .bingo games. The fee, whether for
the initial license or renewal, shall not exceed fifty dollars ($50) annually, except
as provided in paragraph (2). If an application for a license is denied, one-half
of any license fee paid shall be refunded to the. organization.
(2) In lieu of the license fee permitted under paragraph (1) a city, county, or
city and county may impose a license fee of fifty dollars ($50) paid upon application.
If an application for a license is denied, one-half of the application fee shall be
refunded to the organization. An -additional fee of 1 percent of the monthly gross
receipts over five thousand dollars ($5,000) derived from bingo games shall be
collected monthly by the city, county, or city and county issuing the license.
(m) No person shall be allowed to participate in a bingo game, unless the person
is physically present at the time and place in which the bingo game is being
conducted
(n) The total value of prizes awarded during the conduct of any bingo games shall
not exceed two hundred fifty dollars ($2S0) in cash or kind or both, for each
separate game which is held.
(o) As .used in this section 'bingo' means a game of chance in which prizes are
awarded on the basis of designated numbers or symbols on a card which conform
to numbers or symbols selected at random. Notwithstanding Section 330c, as used
in this section.,the game of bingo shall include cards having numbers or symbols
which are concealed and preprinted in a manner providing for distribution of
ATTACHMENT C
LEASE AGREEMENT
This is a Lease Agreement for the use of City facilities between the City of West Covina,
hereinafter referred to as City and the West Covina Senior Citizens Center Inc., hereinafter
referred to as Lessee.+
1. TERM
The term of this agreement shall be from November 19, 1994 to December 31, 1995 and
continue thereafter on a year to year basis from January 1 through December 31 of each
year unless canceled by either party without cause by giving of at least sixty (60) days-- -.
written notice or terminated for cause.
2. FACILITIES
City shall lease the main hall in the main building of the West Covina Senior Citizens
Center located at 2501 E. Cortez Street (the facility) to the Lessee for the conduct of
bingo games.
3. DAYS OF OPERATION
Lessee shall conduct bingo games on Saturdays from 1 p.m. to 6 p.m. Bingo games
shall be conducted every Saturday of the year unless it conflicts with a holiday.
4. RENT
Lessee shall pay City a rent of $500 per Saturday when bingo is being conducted. This
rent. is payable to City the first working day of the following week. The check shall be
made out to the City of West Covina.
In the event that bingo is canceled on any Saturday, written notification shall be provided
to City at least 10 working days before the canceled date.
5. MAINTENANCE AND REPAIRS
The City shall not be required to repair or rebuild any part of the facility in the event of
damage thereto. Normal maintenance to facility will be provided by City.
6. INSURANCE
The Lessee shall purchase and have in place a Temporary Use Liability Insurance Policy
(TULIP) covering each Saturday event. The City of West Covina must be noted as
additionally insured.
7. ALCOHOL
Alcohol is not permitted in the Senior Citizens Center at any time. Any alcohol use or
possession at a facility shall be cause for immediate termination of this lease.
8. SECURITY
Lessee shall furnish security officers during all bingo games if deemed necessary by
City.
9. PARKING
If parking becomes a problem, City may require that mitigating measures be implemented
by Lessee.
a
Lessee shall comply with all applicable local, state and federal laws and regulations,
11. AMENDMENTS
a) This Agreement may be amended only in writing signed by both parties.
b). No waiver of any term or condition of this Agreement shall be a continuing
waiver thereof.
c) This document contains the entire written Agreement of the parties.
12. INDFMNMCATION
LESSEE agrees to hold harmless, the City of West Covina, its officers, employees;
volunteers, and agents from any all liability from damages or loss or injury either to
person or property which may be sustained while using the West Covina Senior Citizens
Center.
13. DAMAGE TO THE CENTER AND FURNISHINGS
LESSEE is responsible for any damage to the West Covina Senior Citizens Center and
its furnishings which may occur during the conduct of the bingo games.
14. NEIGHBORHOOD MWACT
LESSEE is responsible for managing the bingo games so as to minimize any and all
negative impacts on the surroundipg residential neighborhood.
West Covina Human Services Director President, West Covina Senior Citizens
a Center Inc.
Date 9 Z2 ! 4
Date
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