HomeMy WebLinkAbout2006-073 - Establishing a Tobacco Retail License Fee
Icp:10/16/06
RESOLUTION 2006-073
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA ESTABLISHING A TOBACCO RETAIL
LICENSE FEE AND ADDING THIS FEE TO THE UNIFORM
SCHEDULE OF MISCELLANEOUS FEES
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. The City Council has this day introduced an ordinance regulating the retail
sale of tobacco products ("The Tobacco Ordinance"), that would permit
Council to establish by resolution an annual fee for a license to authorize
tobacco retailing at fixed locations.
B. The Council finds that, as to this fee:
1. The funds raised by this fee are to be used exclusively to pay for
City programs to administer the program established by The Tobacco
Ordinance to encourage tobacco retailers' compliance with all federal,
state and local tobacco control laws and to discourage retailers from
selling or distributing tobacco, tobacco products, or tobacco paraphernalia
to minors in the City.
2. There is a reasonable relationship between the use of these fees
and the retailers on which the fee is imposed, in that the fees that will be
charged by the City will be used to pay for staff efforts and contract for
enforcement services to ensure that the tobacco retailers who pay this fee
act in accordance with the City's license program and to discourage
retailer from selling or distributing tobacco to minors. It is also to the
benefit of those paying the fee, i.e., tobacco retailers, to have dedicated
efforts by City staff to ensure that their competitors comply with the City's
license program.
3. There is a reasonable relationship between the impacts the City
experiences from tobacco retailing, and the tobacco retailers on whom the
fee is imposed because the fee is based upon a portion of the cost of
administration, implementation, monitoring and enforcement of the
tobacco retail licensure program. The Council finds in adopting this fee
that the more tobacco retail licenses the City issues to tobacco retailers,
the more impacts there are on City resources.
Resolution No. 2006-073
Page 1 of 3
4. This fee will take be imposed commencing January 1, 2007.
5. The fee for this service would not duplicate any existing fee,
charge, levy, or other toll currently collected by the City or any publiC
agency, and would be distinct and separate from any current or future fee
imposed by the County of Orange on tobacco retailers.
6. The moneys collected by this fee would be directed into a fund that
would be used only to recover the cost of administration, implementation,
monitoring and enforcement of the tobacco retail licensure program.
C. Based upon the City's study the annual cost of administering,
implementing, monitoring and enforcing the license program exceeds
$350.00 per tobacco retail location. A written study confirming this fact is
on file with the Clerk of the Council and is incorporated herein by
reference as though fully set forth.
D. Based upon all the testimony, reports and other evidence submitted on
this matter, this City Council makes the above-specified findings.
Section 2. An annual $63500 per license fee is hereby established for each
proprietor applying for a tobacco retail license at a given location. This annual fee will
be collected beginning January 1, 2007.
Section 3. Without further action of the City council this fee shall be
incorporated into the City's miscellaneous Fee Schedule.
Section 4. If any charge, fee, service charge, section, subsection, sentence,
clause, phrase or word of this Resolution is for any reason held to be invalid by a court
of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this Resolution. The City Council hereby declares that it would have passed
and adopted this Resolution, and each and all provisions hereof, irrespective of the fact
that one or more provisions may be declared invalid.
Section 5. This Resoiution shall take effect only if The Tobacco Ordinance is
adopted and at the same time it becomes effective, and the Clerk of the Council shall
attest to and certify the vote adopting this Resolution.
ADOPTED this 16th day of October, 2006
Resolution No. 2006-073
Page 2 of 3
APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
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Lotena C PerialdW
Assistant City Attorney
AYES Councilrnembers Alvarez. Bist. Bustamante, Christy. Garcia.
Pulido. Solorio (7)
NOES: Councilmembers None (0)
ABSTAIN: Councilmembers None (0)
NOT PRESENT: Councilmembers None (0)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the
attached Resolution No. 2006-073 to be the original resolution adopted by the City
Council of the City of Santa Ana on October 16. 2006.
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Date: /YJ-/'1~ 8.t:
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Patricia E. Healy
Clerk of Council
City of Santa Ana
Resolution No. 2006-073
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