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Staff Report PREPARED BY: ROBERT SCHULTZ Town Attorney Reviewed by: Town Manager and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 05/16/2017 ITEM NO: 6 DATE: MAY 10, 2017 TO: MAYOR AND TOWN COUNCIL FROM: ROBERT SCHULTZ, TOWN ATTORNEY SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE TOWN OF LOS GATOS AND THE COUNTY OF SANTA CLARA FOR TOBACCO RETAIL PERMIT ADMINISTRATION SERVICES. RECOMMENDATION: Authorize the Town Manager to execute an agreement between the Town of Los Gatos and the County of Santa Clara for Tobacco Retail Permit Administration Services. BACKGROUND: The Town Council recognizes the dangers of smoking and secondary smoke and in 2016 adopted amendments to the Town’s Smoking Regulations to prohibit smoking in the Town's public spaces, including outdoor dining areas, entryways, public events, recreation areas, and service areas and multi-family residential units. During the discussion, the Town Council directed staff to also develop an ordinance to address regulating the sales of tobacco by businesses in Los Gatos. As the Town worked with the County and began exploring the idea of a local license, it became clear that the Town’s Police Department did not have the staffing to handle regular compliance checks with all tobacco vendors in the city. The Town requested that, if the Town Counc il enacted such an ordinance, the County handle all aspects of the administration, oversight and enforcement of the license. Santa Clara County has agreed to do this and will handle all administrative aspects of the licensing. DISCUSSION: To formalize this arrangement, the Town Council is presented with an agreement (Attachment 1) between the County and the Town. The Agreement outlines the responsibilities of the County in administering and enforcing the license for the Town of Los Gatos. The agreement PAGE 2 OF 2 SUBJECT: AGREEMENT BETWEEN THE TOWN OF LOS GATOS AND THE COUNTY OF SANTA CLARA FOR TOBACCO RETAIL PERMIT ADMINISTRATION SERVICES DATE : MAY 10, 2017 S:\COUNCIL REPORTS\2017\05-16-17\Tobacco Retail Agreement\Staff Report FINAL.docx 5/11/2017 2:34 PM SLL DISCUSSION (cont’d): requires the County to handle the license applications, issue the permit, administer the program, provide education to retailers, inspect and provide compliance checks, and document any violations. The Town would be resp onsible for providing information to businesses applying for a business license, communicating with vendors, coordinating with the County and conducting one sting operation per year. The Council is asked to authorize the Town Manager to enter into this ag reement with the County. There are approximately 25 vendors in the Town who sell tobacco and tobacco products. The Town sent two letters to each vendor explaining the proposed license and cost. Each vendor also received notice of the public hearing for the proposed ordinance. The public hearing for the adoption of the ordinance was also noticed, as required, in the newspaper. CONCLUSION: Authorize the Town Manager to execute the agreement between Town of Los Gatos and the County of Santa Clara for Tobacco Retail Permit Administration Services. COORDINATION: The Town Attorney’s office has coordinated the terms and conditions of the agreement with the Police Department and Finance Department. FISCAL IMPACT: There would be no fiscal impact as Staff has developed an agreement for the County of Santa Clara to administer and enforce a new tobacco retail permit program in the Town of Los Gatos. Presently the County only enforces the County’s tobacco retail permit program in unincorporated areas of the County. The agreement will establish an administration and enforcement partnership with the Town. Town staff will continue to work and meet with County staff to ensure that all parties are meeting the requirements of agreement. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. Attachments: 1. Agreement