To: HONORABLE MAYOR AND From: William M. Lansdowne

CITY COUNCIL

Subject: SEE BELOW Date: November 1, 2001

Approved Date

COUNCIL DISTRICT: City-Wide

SUBJECT: ANNUAL REVIEW OF THE IMPACT OF CARDROOM GAMBLING ON CRIME IN THE CITY OF SAN JOSÉ.

RECOMMENDATION

It is recommended that the City Council accept the following report related to the impact of cardroom gambling on crime in the City of San José for the period July 1, 2000 to June 30, 2001.

BACKGROUND

There are two cardrooms in the City of San José; Sutter's Place (doing business as Bay 101) and Garden City. San José Municipal Code Section 16.04.050 requires the Chief of Police to “prepare an annual report evaluating the impact of Cardroom Gambling on crime in the San José metropolitan area." This provision also requires the report to evaluate any regulatory issues the Chief of Police may wish to bring to the attention of the City Council. Last, the provision requires the report to be presented to the City Council for approval and be made available to the public.

This report covers the 2000 – 2001 fiscal year, July 1, 2000 to June 30, 2001. It includes statistical data and an update on issues from last year's report.

ANALYSIS

Summary of Crime Statistics for Bay 101 and Garden City for Fiscal Year 00/01

The San José Police Department maintains records of all reported incidents and calls for service. In order for a reported incident to be specifically attributed to a cardroom, the individual cardroom address must be noted on the police report. Only those statistics, which can be directly related to the cardrooms during fiscal year 2000-2001, are included in the report. The following statistics do not capture some crimes that emanate from the cardrooms, but occur away from the cardrooms' physical location (e.g. an assault motivated by loansharking or extortion).

"Calls for service" are calls requiring dispatch of a patrol unit. "Reported Incidents" are incidents in which a report is generated.

Bay 101

Bay 101 had three (3) 9-1-1 priority 1 calls, (Priority 1 – life in danger), 98 calls for service (excluding priority 5 calls – self-initiated), and 84 reported incidents. Of those calls for service, 29 resulted in arrests; not included are two (2) self-initiated arrests by police officers.

Calls for Service – Bay 101

CODE	EVENT TYPE	NUMBER
1053	PERSON DOWN	1
1062	MEET THE CITIZEN	2
1065F	FOUND, MISSING PERSON	1
1066	SUSPICIOUS PERSON	1
10851R	RECOVERED STOLEN VEHICLE	1
11300	NARCOTICS	1
1179	VEH ACCIDENT w/INJURY	1
1182	VEH ACCIDENT PROPERTY NON-INJURY	1
20002	MISD HIT AND RUN	1
211	ROBBERY	2
23152	DUI	1
242	BATTERY	15
270	CHILD NEGLECT	3
273.5	DOMESTIC VIOLENCE	4
415	DISTURBANCE	18
415A	DISTURBANCE FIGHT	12
415W	DISTURBANCE, WEAPONS	1
470	FORGERY	1
484	PETTY THEFT	5
487	GRAND THEFT	3
594	VANDALISM	1
602PC	TRESPASSING	8
911PAY	UNK TYPE 911 CALL FROM PAY PHONE	2
ATC	ATTEMPT TO CONTACT	1
ATL	ATTEMPT TO LOCATE	2
CSB	CIVIL STANDBY	1
FDAID	FIRE DEPT REQUEST FOR PD	2
SUSCIR	SUSPICIOUS CIRCUMSTANCES	1
WELCK	WELFARE CHECK	8
	TOTAL	101

Garden City

Garden City had two (2) 9-1-1 priority 1 calls (Priority 1 – life in danger), 80 calls for service (excluding priority 5 calls) and 51 reported incidents. Of the calls for service, 19 resulted in arrests.

Calls for Service – Garden City

CODE	EVENT TYPE	NUMBER
1033A	AUDIBLE ALARM	1
1053	PERSON DOWN	1
1066	SUSPICIOUS PERSON	3
10851	STOLEN VEHICLE	2
10851R	RECOVERED STOLEN VEHICLE	2
11300	NARCOTICS	4
1182	VEHICLE ACCIDENT NON-INJURY	1
20002	MISD HIT & RUN	1
23152	MISDEMEANOR DUI	2
242	BATTERY	13
415	DISTURBANCE	16
415A	DISTURBANCE FIGHT	6
415F	DISTURBANCE, FAMILY	4
415M	DISTURBANCE, MUSIC	1
415UNK	DISTURBANCE, UNKNOWN TYPE	2
415W	DISTURBANCE, WEAPONS	1
459 VEH	VEHICLE BURGLARY	1
470	FORGERY	1
484	PETTY THEFT	2
487	GRAND THEFT	2
537	DEFRAUDING AN INNKEEPER	2
594	VANDALISM	1
602	TRESPASSING	4
647F	DRUNK IN PUBLIC	1
AID	PUBLIC SAFETY ASSISTANCE	1
FDAID	FIRE ASSISTANCE	3
FNDPRP	FOUND PROPERTY	1
SUSCIR	SUSPICIOUS CIRCUMSTANCES	1
WELCK	WELFARE CHECK	2
	TOTAL	82

Calls for Service

Bay 101 has experienced a 26% increase in calls for service when compared to last year. Garden City experienced a 49% increase in calls for service from the previous year.

A closer look into which type of calls have increased from last year reveals that Disturbance and Assault & Battery calls went up at both cardrooms. Bay 101 had an increase of 66% in Battery and 138% in Disturbance calls for service from the previous year. Garden City experienced an increase of 160% of Battery calls and 100% increase of Disturbance calls for service when compared to the preceding year.

Reported Incidents

Reported Incidents recorded for Fiscal Year 2000-2001 are listed in attachments 1 and 2 for Bay 101 and Garden City. The following graphs reflect Reported Incidents at both Cardroom locations over the past seven fiscal years. It should be noted that there is a difference between attachments 1&2 and their particular graph for Fiscal Year 99-00. The higher number in the graph are incidents occurring in FY 99-00 and reported through the Santa Clara County Grand Jury indictments, however, these incidents were not captured in the SJPD Crime Analysis data.

Contacts by the police resulting in arrests at the cardrooms are listed below. Two arrests at Bay 101 were results of self initiated contacts by the police versus a response for a call for service at the cardroom. Not included are arrests made by other agencies at the cardrooms. On May 18, 2001 the Santa Clara Police department arrested a subject on a felony arrest warrant.

REPORTED INCIDENTS INVOLVING ARRESTS AT BAY 101 CARD CLUB

July 1, 2000 – June 30, 2001	NUMBER of cfs resulting in arrests	NUMBER OF ARRESTS
Assault	5	5
Domestic Violence	2	2
Drunk In Public	5	6
Felony Warrant	0	1
Forgery	2	2
Misdemeanor Warrants	2	2
Narcotics	1	1
Parole Violation	2	2
Robbery	1	1
Theft	1	1
Psychiatric Evaluation	2	2
Terrorist Threats	1	1
Trespassing	5	5
TOTALS	29	31

REPORTED INCIDENTS INVOLVING ARRESTS AT GARDEN CITY CARD CLUB

July 1, 2000 – June 30, 2001	NUMBER of cfs resulting in arrests	NUMBER OF ARRESTS
Assault	2	2
Disturbing the Peace	3	3
Drunk in Public	7	7
Misdemeanor DUI	1	1
Narcotics	1	1
Receiving/Possession of Stolen Property	1	1
Resisting Arrest	1	1
Trespassing	2	2
Vandalism	1	1
TOTALS	19	19

Cardroom Security Logs

Although efforts have been made to minimize the difference between the cardroom security logs and the Police department data (Calls for Service/Reported Incidents), a discrepancy continues to exist. Attempts to standardize the types of calls have helped. However, there remain cardroom security log entries in which the police department was not advised.

During FY 00-01 172 reports were generated by Bay 101 Security. Most of the unreported incidents involved Assaults, Disturbances, Thefts (including “capping bets”), underage gamblers and underage patrons onsite. Thirteen (13) of those incidents were cases of Counterfeit money which were referred to the United States Secret Service for investigation directly by Bay 101. Thirty (30) of these incidents are listed in “Exclusion Reports” as an alternative to an “Incident Report”.

Garden City Security produced 133 reports during the same period. Most of the unreported incidents involved Vandalism, Thefts (including “capping bets”), Disturbances, unattended children and Assaults. Eight of these incidents are listed in “Exclusion Reports” instead of “Incident Report”.

The following tables include a general breakdown of the cardroom security logs.

Bay 101 Security Logs

Event Type	FY 97-98 Security Logs	FY 98-99 Security Logs	FY 99-00 Security Logs	FY 00-01 Security Logs
ADW				1
Assault/Battery	10	32	16	35
Auto Theft	1	2	7	1
Burglary	0	2	4	6
Cheating on Table				1
Child Neglect	26	13	17	11
Counterfeit Bill				13
Defrauding an Innkeeper				3
Disturbance	54	12	9	16
Domestic Violence				6
Drunk In Public	0	0	10	4
DUI				1
Embezzlement				1
False Identification				4
Narcotics	1	0	2	1
Psychiatric Evaluation				5
Prostitution	0	1	0	1
Robbery	3	0	0	2
Suspicious Circumstances				2
Terrorist Threats				3
Theft	28	8	12	25
Traffic Accidents	16	0	0	1
Trespassing				8
Underage Gambler				7
Underage Night Club				1
Underage Onsite				8
Vandalism				3
Warrants				2
Other	13	33	65
TOTAL	152	103	142	172

Garden City Security Logs

Event Type	FY 97-98 Security Logs	FY 98-99 Security Logs	FY 99-00 Security Logs	FY 00-01 Security Logs
Assault/Battery	5	28	31	37
Attempt to Locate				1
Auto Theft	0	1	2	4
Burglary	0	3	4	3
Child Neglect	13	22	4	2
Defrauding an Innkeeper				5
Disturbance	39	26	32	7
Drunk In Public	0	12	6	3
False ID				3
Forgery				3
Misd. Hit & Run				4
Muni Code Viol.				1
Narcotics	1	8	5	2
Psychiatric Evaluation				3
Robbery	1	1	2	2
Sexual Harassment				1
Stalking				2
Stolen Property				1
Terrorist Threats				3
Theft	2	10	11	22
Traffic Accidents	3	2	0
Trespassing				11
Vandalism				12
Weapons	0	1	0
Warrants				1
TOTAL	66	148	155	133

Mandatory Reporting of Suspected Crimes by the Cardrooms

The new Gaming Control Regulatory Ordinance mandates that the cardrooms report any suspected criminal activity. Although cardroom management has improved in it’s undertaking to reporting suspected crimes, a more concerted effort needs to be realized before full compliance is met. Members of the cardroom team continue to update cardroom personnel on various violations of the law (Penal Code, State Gambling Laws or Gaming Ordinance) as they are deemed necessary.

UPDATES

Monthly Meetings

The Police Department, Finance Department, the Interim Gaming Administrator, and the City Attorney’s Office usually represent the City at monthly meetings with members of each cardroom. The meetings, conducted exclusive of each cardroom, include open discussions between cardroom management and the City representatives. The monthly meetings have assisted the City in its’ ability to better monitor and effectively regulate cardrooms in San José. These conferences allow suggestions to be submitted and responses formulated for both the City and the cardrooms.

The monthly meetings assist cardroom administrators by making available an opportunity to discuss issues and concerns.

Training of Cardroom Personnel

Ongoing training of cardroom personnel continues. The training for cardroom personnel has presented its’ challenges as 2 of 3 cardroom veteran officers have gone on to other assignments as part of the police department’s specialized unit rotation. In last year’s report it was communicated that the Department’s Cardroom Team has put into service a few training sessions for cardroom personnel in an effort to minimize future misunderstandings as to when reporting of incidents are required. The training should also assist in better recognition of violations to the respective cardroom employees in their duties. Suggestions for future training topics from the cardrooms have been sought. Both Bay 101 and Garden City continue to be very cooperative in this effort with the Police Department.

Employee backgrounds

The cardroom team members spend a great deal of time and energy preparing and conducting backgrounds on potential cardroom employees and contractors based on the new Gaming Ordinance requirements. It should be noted that San Jose is well ahead of all municipalities in the state of California as well as the Department of Justice Division of Gaming Control. As the Department gains greater experience in conducting background investigations Cardroom Team investigators gain greater expertise and become more efficient. Suggestions for further regulations based on last year’s background investigation experience are being reviewed. The regulations should increase the City’s ability to protect the public through comprehensive backgrounds.

CONCLUSION

Crime persists at both cardrooms operating in the City of San José. Contrary to our agreement and the City Ordinance the cardrooms failure to report all suspected crime enhances concern. The implementation of further background regulation, currently under review by the City Attorney’s Office, and together with the cooperation of cardroom management and improved community involvement, should assist law enforcement in more successful detection and prosecution of criminal activities. Frequently scheduled meetings, thorough backgrounds and training for both the cardroom employees and officers will continue and should improve the City's ability to administer gaming regulations which would in due course protect the public.

PUBLIC OUTREACH

Not applicable

COORDINATION

This report has been coordinated with the City Manager’s Office, the City Attorney’s Office, and the Finance Department.

WILLIAM M. LANSDOWNE

Chief of Police

WML:MR:DA