CITY COUNCIL STAFF REPORT
MEETING DATE: May 18, 2016
PREPARED BY: Angie Garcia, Council Services Assistant/Administrative Services
APPROVED BY: City Manager
Title
ADOPT ORDINANCE 2199, NEW SERIES, AN ORDINANCE OF THE CITY OF MORGAN HILL AMENDING CHAPTER 5.64 (TOBACCO RETAILER'S LICENSE) OF THE MUNICIPAL CODE OF THE CITY OF MORGAN HILL TO CLARIFY WHEN TOBACCO RETAILER'S LICENSE RENEWALS EXPIRE, TO ASSESS A PENALTY FOR LATE RENEWALS AND CLEAN UP LANGUAGE FROM THE ORDINANCE
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RECOMMENDATION(S)
RECOMMENDATION
Waive the reading, adopt Ordinance No. 2199, New Series, and declare that said title, which appears on the agenda, shall be determined to have been read by title and further reading waived.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Enhancing public safety
Maintaining fiscal responsibility
Supporting youth
2016 Focus Areas
Enhancing Our Services
REPORT NARRATIVE:
On May 4, 2016, the City Council Introduced Ordinance No. 2199 New Series, by the Following Roll Call Vote: AYES: Carr, Constantine, Librers, Siebert, Tate; NOES: None; ABSTAIN: None; ABSENT: None.
In reviewing the Finance Department workflow, Finance identified an opportunity to efficiently process and monitor the tobacco retailers license. This required the ordinance to be amended and a revised ordinance to be introduced.
The amendments are as following:
• Changes the validity of the license on fiscal year basis (July 1st to June 30th), requiring Tobacco retailer's license to be renewed at the same time business licenses are renewed
• Adds a penalty of 10% for licenses renewed after July 31st of each year and an additional penalty of 15% for licenses renewed after August 31st of each year
• Includes minor, cleanup language
COMMUNITY ENGAGEMENT: Inform
The required public hearing notice was published in the Morgan Hill Times, for the minimum 5-day public noticing period, as required by Government Code.
ALTERNATIVE ACTIONS:
None
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
On January 15, 2014, City Council directed staff to draft a Tobacco Retailer's License ordinance. The draft was produced with the assistance from the Santa Clara County Public Health Department.
On March 19, 2014, staff held a meeting at the Community and Cultural Center to inform all 35 tobacco retailers in the City of Morgan Hill about the establishment of the Tobacco Retailer's License ordinance and the associated fee. A letter was also hand delivered to each tobacco retailer by a member of the City's Volunteer in Policing program.
On April 2, 2014, a public hearing was held and the ordinance was introduced as Chapter 5.64 to Title 5, requiring a Tobacco Retailer's License to sell tobacco products in the City of Morgan Hill. Subsequently, the City Council approved the adoption of the ordinance.
On April 16, 2014, the City Council adopted a resolution establishing a regulatory Tobacco Retailer's License Fee.
On May 4, 2016, the City Council Introduced Ordinance No. 2199 New Series.
FISCAL AND RESOURCE IMPACT:
Aligning the tobacco retailer's license validity date with the annual business license renewal date would streamline and automate the tobacco license renewal process via TrakIT and reduce dedicated staff resources.
CEQA (California Environmental Quality Act):
Not a Project
The ordinance amendments proposed are not a project, as defined in Section 15378 of the State CEQA Guidelines.
LINKS/ATTACHMENTS:
Ordinance 2199