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HomeMy WebLinkAbout _ 6.2--Tobacco Retail License Fee for the sale of tobacco and tobacco products GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: September 2,2025 FROM: Jason Gibilisco, Management ITEM NO. 6.2 Assistant to the City Manager ***APPROVED BY*** ���m rt �.� s.N,.�� �� �„�,� 7�aso Ci e co, a��a�caaiu t t�sivl�i�4 t�9Ir�C i4Y�7trr�n�ux �ir`Zg:2(�25 ij�}?ITi,�"1 dll � �/��i/7�Y�� jgibilisco@cityofredding.org btippin@cityofredding.org SUBJECT: 6.2--Public Hearing to consider adopting a Resolution adding a Tobacco Retail License Fee for the sale of Tobacco and Tobacco roducts. Recommendation Conduct a Public Hearing and, upon concl�usion, adopt Resolution effective October 2, 2025, approving the addition of a Tobacco Retail License fee in the amount of$1,176.63 per retailer, to the City of Redding's Sched�ule of Fees and Services Charges related to the sale of tobacco and tobacco products. Fiscal Impact The cost of the Tobacco Retail License (TRL) program per retailer will be $1,176.63. The fee is based on Code Enforcement administering the TRL program that includes 119 tobacco retailers operating in the City of Redding (City). The TRL program fee will fund one, full-time Neighborhood Preservation Officer, and a half-time Administrative Assistant to operate the program. The fee will be sufficient to cover the direct costs incurred by the City to oversee the program, and includes license administration, education, inspections, and enforcement. Alterna�ive Action The City Council (Council) could adopt the proposed fee schedule with modifications or provide direction to staff to modify the fee schedule for future Council consideration. Or, the Council could choose to not adopt a fee for the TRL program, in this case, any oversight would need to be supplemented by the General Fund. Background/Analysis On Ju1y 15, 2025, the Council adopted a TRL ordinance establishing regulations for businesses that sell tobacco products. The ordinance requires retailers to obtain a TRL in order to legally sell tobacco and authorizes the collection of a fee to cover program adminis�ration costs. Report to Redding City Council August27,2025 Re: 6.2--Tobacco Retail License Fee for the sale of tobacco and tobacco products Page 2 The fee of $1,176.63 fully supports the staff cost associated with Code Enforcement administering the TRL program. The fee wi11 go into effect on October 2, 2025, 30 days from the adoption of the attached resolution. During the waiting period before the fee becomes effective on October 2, the City's Information Technology staff will be configuring the City's licensing software to accept online applications and payments, and the Code Enforcement Division will be developing procedures to initiate the TRL program. EnviNonmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Priority/City Manager Goals • This is a routine operational item. Attachments ^Resolution ^Proposed Fee RESOLUTION NO.2025- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING MODIFYING THE CITY'S MASTER FEE SCHEDULE TO ESTABLISH FEE FOR THE TOBACCO RETAIL LICENSE PROGRAM WHEREAS, the City of Redding adopted Ordinance 2681 establishing licensure of tobacco retailers, and regulations for tobacco selling businesses; and WHEREAS, City Council Policy 802 provides that the City of Redding establishes fees for services provided in accordance with the laws of the State of California to recover all or a portion of the cost of providing services; and WHEREAS, for the reasons set out in the Report to Council, it has been recommended that the City Council adopt the fee related the annual license for tobacco retailing businesses; and WHEREAS,the proposed fee amount has been calculated based on the direct costs associated with administering and enforcing the tobacco retail license program, including the cost of one full- time Neighborhood Preservation Officer and one half-time Administrative Assistant, divided by the number of tobacco retailers in the City of Redding; WHEREAS,the City Council has carefully considered this recommendation; and deems it to be in the best interests of the City of Redding to adopt the fee; NOW,THEREFORE,IT IS RESOLVED by the City Council of the City of Redding as follows: 1. Council hereby adopts an annual Tobacco Retail License fee of$1,176.63 for tobacco retailing in the City. 2. The adopted Tobacco Retail License fee will be sufficient to cover the costs incurred by the City in connection with the implementation of the tobacco ordinance adopted by the City Council on August 19, 2025. 3. That the City Clerk and Finance Officer of the City of Redding be hereby directed to maintain available certified copies of this Resol�ution in their respective offices for inspection and review by any interested person or persons. I I3EREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the City Council on the 2nd day of September, 2025,by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: JACK MUNNS, Mayor ATTEST: APPROVED AS TO FORM: SHARLENE TIPTON,City Clerk CHRISTIAN M. CURTIS, City Attorney PROPOSED MODIFICATION TO THE CITY OF REDDING MASTER FEE SCHEDULE REGARDING LICENSE FEE FOR TOBACCO RETAILING Type of Fee or Service Charge Proposed Fee Authority Development Services Department—Code Enforcement License fee Tobacco Retail License $1,176.63 RM.C. 6.13