HomeMy WebLinkAboutStaff Report 9176
CITY OF PALO ALTO OFFICE OF THE CITY CLERK
April 30, 2018
The Honorable City Council
Palo Alto, California
SECOND READING: Adoption of an Ordinance Amending Chapter 4.6
(Permits for Retailers of Tobacco Products) of the Municipal Code to
Allow Fees to be set by Ordinance (FIRST READING: April 16, 2018
PASSED: 8-0 Filseth Absent)
This ordinance was first heard by the City Council on April 16, 2018, when it was unanimously
approved, without changes. It passed 8-0 with Council Member Filseth absent. It is now before
you for the second reading.
ATTACHMENTS:
Attachment A: Tobacco Fee Ordinance (PDF)
Department Head: Beth Minor, City Clerk
Page 2
Not Yet Approved Attachment A
Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending the Fiscal Year 2018
Municipal Fee Schedule to Add Application and Permit Fees for the Tobacco
Retailer Permit Program
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as
follows:
A. The County of Santa Clara adopted an ordinance creating a Tobacco Retailer
Permit program in 2010 and passed a resolution (Resolution of the Board of Supervisors of the
County of Santa Clara, Resolution No. 2010-447) establishing an application fee and an annual
permit fee for the program.
B. The City of Palo Alto worked with the County of Santa Clara to create a Tobacco
Retailer Permit program for the City. In 2017, the City adopted Ordinance No. 5418, which
established a tobacco retailer permit program to be administered by the County. The City
Council also approved an agreement between the City and the County of Santa Clara to
administer the program on the City’s behalf.
C. As the City’s Tobacco Retailer Permit program is administered by the County of
Santa Clara, the City intends to set its program fees at the same levels as those set by the Board
of Supervisors of the County of Santa Clara.
SECTION 2. Section 4.64.100 of Chapter 4.64 (Permits for Retailers of Tobacco
Products) of Title 4 (Business Licenses and Regulations) is hereby amended to read as follows
(unchanged text is in plain font, additions to code are in underlined-italics font):
4.64.100 Fees.
The city or its designee shall not issue or renew a retailer permit prior to full payment of any
applicable fees. The city shall, from time to time, establish by resolution or ordinance the fees
to issue or to renew a retailer permit. The fees shall be calculated so as to recover the cost of
administration and enforcement of this chapter, including, for example, issuing a permit,
administering the permit program, conducting retailer education, performing retailer
inspection and compliance checks, documenting violations, and prosecuting violators, but shall
not exceed the cost of the regulatory program authorized by this chapter. All fees and interest
earned from such fees shall be used exclusively to fund administration and enforcement of this
chapter.
SECTION 3. The Council of the City of Palo Alto adopts the changes to the Municipal
Fee Schedule as set forth in Exhibit “A” and incorporated here by reference.
Not Yet Approved Attachment A
2
SECTION 4. The amount of the new fees is no more than necessary to cover the
reasonable costs of the governmental activity, and the manner in which those costs are
allocated to a payer bears a fair and reasonable relationship to the payer’s burden on, or the
benefits received from, the governmental activity.
SECTION 5. Fees in the Municipal Fee Schedule are for government services
provided directly to the payor that are not provided to those not charged. The amount of this
fee does not exceed the reasonable costs of providing the services. Consequently, pursuant to
Art. XIII C, Section I(e)(2) of the California Constitution, such fees are not a tax.
SECTION 6. The Council finds that this project is exempt from the provisions of the
California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA
Guidelines, because it can be seen with certainty that there is no possibility that the ordinance
will have a significant effect on the environment.
SECTION 7. This ordinance shall be effective on the 31st day after the date of its
adoption except for Section 3, which shall be effective sixty days after the date of its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
City Attorney City Manager
____________________________
Director of
____________________________
Not Yet Approved Attachment A
3
Director of Administrative
Services
Not Yet Approved Attachment A
4
Attachment A
Public Works
Tobacco Retailer Permit Program
Fee Title FY18 Rate
Tobacco Retailer
Tobacco Retailer Permit Program – Application
Fee for New Applications
Rate set by County of Santa Clara
(currently $340.00 per application)
Tobacco Retailer Permit Program – Annual
Permit Fee (including renewals)
Rate set by County of Santa Clara
(currently $425.00 per annual permit)