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Page 6 of 7 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />The benefit of adopting the County’s ordinance is that the City would avoid the financial and <br />administrative burdens of regulating, monitoring and enforcing regulations on tobacco retailers, as the <br />County would be responsible. <br /> <br />Option 2: Adopt City Ordinance and Enforcement Program <br />When considering adopting a City ordinance, the primary concern is the cost of administration. Currently, <br />there are approximately 50 businesses in Redwood City that hold a CDTFA State-issued Tobacco Retailer <br />Permit or were permitted prior to May 2023. <br /> <br />Staff estimates that it would take the City approximately 20 hours per year to permit, monitor and enforce <br />regulations for each tobacco retailer. Representatives from the Finance, Community Development, and <br />Police Departments, as well as the City Attorney’s Office and City Manager’s Office would be involved. <br />Using the estimate of 50 tobacco retailers as a baseline, administering the program would require <br />approximately 1,000 staff hours annually, which is about 0.5 of a Full-Time Equivalent (FTE) position. The <br />estimated cost would range from $125K to $175K. <br /> <br />For the City to recover the costs connected to operating the program, tobacco retailers would have to pay <br />an annual fee that would be as high as $2,500, which is substantially higher than the County’s current fee <br />of $672 per retailer. <br />For the study session, staff recommends that the City Council provide input on the following factors to aid <br />staff in developing future recommendations for City Council action: <br />1. Outreach desired beyond outreach to currently-grandfathered hookah businesses <br />2. Cost to businesses of program administration <br />3. Whether the City would like to consider updates to other smoking regulations, such as smoking in <br />public right of way. <br />EQUITY IMPACT STATEMENT <br />Equity and/or inclusion was considered in development of the item by: Assessing the health benefits <br />and burdens of tobacco policies by race, age and gender of those potentially impacted, as well as assessing <br />the impact on the number of businesses, regardless of the type of sales channel <br />FISCAL IMPACT <br />If the City Council ultimately adopts the County’s ordinance, then SMC Health would be responsible for <br />permitting and enforcement; however, as the Redwood City Police Department is identified in the <br />Municipal Code as enforcing State Labor Code 6404.5, we could expect that some local resources would <br />be needed to enforce the ordinance. If the City Council directs staff to bring a different ordinance, the <br />minimum costs of the program have been outlined above, from $125,000 to $175,000 per <br />9.A. - Page 6 of 7 <br />338