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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />OCTOBER 16, 2018 <br />TITLE: <br />URGENCY ORDINANCE ADOPTING A 45 - <br />DAY TEMPORARY MORATORIUM ON THE <br />APPROVAL, COMMENCEMENT, <br />ESTABLISHMENT, OPERATION, <br />RELOCATION OR EXPANSION OF CYBER <br />CAFES AND INTERNET ACCESS <br />BUSINESSES WITHIN THE CITY <br />PURSUANT TO GOVERNMENT CODE <br />SECTION 65858 <br />{STRATEGIC PLAN NO. 5, 4} <br />MERMW!/, <br />i <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 161 Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Adopt an urgency ordinance by a minimum of four/fifth (4/5) vote establishing a 45 -day temporary <br />moratorium on the approval, commencement, establishment, operation, relocation or expansion <br />of cyber cafes and internet access businesses within the city pursuant to Government Code <br />Section 65858. <br />As in other cities in California, there has been a proliferation of cyber cafes and internet access <br />businesses within the City of Santa Ana. Customers purchase online time in exchange for <br />opportunities to win chances at internet/network based sweepstakes prizes and money. <br />The State Bureau of Gambling Control has issued a law enforcement advisory in which it <br />determined that in some circumstances, the sweepstakes aspect of these businesses constitutes <br />illegal gambling. Following this advisory, there have been numerous complaints of these businesses <br />that act as fronts for illegal gambling operations throughout California. <br />Even where cyber cafes and internet access businesses utilize lawful sweepstakes features, these <br />businesses have created adverse impacts on public health, safety and welfare, including a dramatic <br />increase in violent crimes, loitering, illegal drug use and sales, burglaries, assaults, fights, theft, <br />robbery, public intoxication, vandalism, property damage, weapons offenses, and other criminal <br />activities in and around cyber cafes and internet access businesses. Other impacts include <br />increased pedestrian traffic, noise, parking violations, and other nuisance activities. These <br />50A-1 <br />