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HomeMy WebLinkAboutMINUTES - 05112004 - SD3 T©: BOARD CSF SUPERVISORS Contra Costa FROM: William B. Walker, MD, Health Services Director + DATE: May 11, 2004 County SUBJECT: TOBACCO RETAILER'S LICENSE FEES (Resolution No. 4994./Q-5) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: 1. OPEN public hearing on increasing the annual tobacco retailer's license fee to $160.00, RECEIVE testimony, and CLOSE the hearing. 2. ADOPT resolution setting annual tobacco retailer's license fee of$160.00 per license. FISCAL IMPACT: An annual tobacco retailer's license fee of $160.00 per license will allow the recovery of the following: a) Reasonable administrative costs incurred by the Tax Collector in issuing tobacco retailer's licenses; b) Reasonable costs of inspections performed by Contra Costa Health Services staff to determine retailer compliance with license conditions. r CONTINUED ON ATTACHMENT: YES �NO SIGNATURE: - 'k• '` ' ------------------------------------------— —-----------------------—----------------------------------------------[I-------- .—.-RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE , .-APPROVE OTHER f' 5 SIGNATURE(S): ACTION OF BO D N Y i I, APPROVE AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN X UNANIMOUS(ABSENT Bone ) AND ENTERED ON THE MINUTES OF THE AYES: NOES: SHOWN. ABSENT: ABSTAIN: ATTESTED May,11, 2004 JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR CC: William B.Walker,MD,HSD Director,20 Allen,Mtz Wendel Brunner,MD,Public Health Director,at 597 Center Avenue,#200,Mtz Contact: Charlotte Dickson,TPP,313-6296 By DEPUTY 597 Center,#100,Mtz f� BACKGROUND: On January 28, 2003, the Board of Supervisors unanimously adopted the County's Tobacco Retailer's License Ordinance, County Ordinance Code chapter 445-10. The ordinance prohibits any retailer, individual, or entity from selling or offering for sale any tobacco products in the unincorporated area without first obtaining a license. The ordinance also authorizes Health Services to suspend or revoke a license after notice and a hearing if the licensee is not in compliance with license conditions. The ordinance authorizes a fee for a tobacco retailer's license. The ordinance requires the fee to reflect the reasonable cost of providing services necessary to the licensing activities of the ordinance. The fees prescribed by the ordinance are regulatory permit fees. Since the adoption of the ordinance, Contra Costa Health Services and the Tax Collector's Office have implemented the ordinance and issued 127 Tobacco Retailer's Licenses. Health Services has performed regulatory activities incident to the issuance of the licenses, including inspections to determine compliance with license conditions. These activities have been covered by funds from a state enforcement grant, which is ending on June 30, 2004. Also since the adoption of the ordinance, the Sheriff's Office has enforced Penal Code section 308{a} (no sales to minors), and as a result, the illegal sales rate of tobacco to minors has decreased from 37% to 2%. Enforcement has been covered by funds from a state enforcement chant, which is ending on June 30, 2004. On April 20, 2004, the Board of Supervisors accepted a report presented by Dr. Brunner on the tobacco retailer's license program and set May 11, 2004 as the date for a public hearing on increasing the license fees. Contra Costa Health Services has determined that a license fee of$160 would allow Health Services to recover the cost of providing services necessary to the licensing activities of the ordinance. A table showing the Health Services Department's fee calculations is attached. Of the $160 amount, $25 would allow the recovery of reasonable administrative costs incurred by the Tax Collector, who is authorized to issue tobacco retailer's licenses. This is the current amount of the tobacco retailer's license fee. As noted above, the remainder of the $160 fee would allow Health Services to recover the cost of performing regulatory activities incident to the issuance of the licenses. Health Services anticipates inspecting every retailer once during the fiscal year. Based on the number of reinspections performed this year, Health Services also anticipates performing 62 reinspections of retailers who are not in compliance with license conditions after an initial inspection. Health Services has identified a separate funding source for the Sheriff's Office to perform law enforcement activities associated with Penal Code section 308. The increase in the annual license fee would not affect two other fees currently charged by Health Services, Resolution No. 2003/255 authorizes Health Services to charge a hearing fee of$348 for holding a license suspension or revocation hearing, and authorizes Health Services to charge a fee of $112 per inspection for inspecting retailers whose licenses have been suspended or revoked to determine compliance with the suspension or revocation. The publication requirements of Government Code section 6062a have been met. A notice of this public hearing appeared in the Contra Costa Times on April 28, 2004 and May 4, 2004. Health Services Department - Public Health division Hourly Rate Expense for Tobacco's Retailer License Fee Calculated using Staff Salaries and Benefit Rates Effective July 1, 2004 EXPENSE CATEGORIES / DESCRIPTION Policy Coordinator Project Manager Classification ; SR Health Ed Specialist Tobacco Prevent Proj Coord Class Code : VMWE VBHC Monthly Salary (VCB1) $ 5,752.10 $ 6,288.15 Benefits ( FICA, Retirement, Health Ins, SUI ) 54.50% 3,134.89 3,427.04 Monthly Salary &Benfits 8,886.99 9,715.19 Basic Hourly Rate Monthly Work Hours : 173.33 $ 51.27 $ 56.05 Productive Hourly Rate : Monthly Productive Percent 84.00% $ 61.04 $ 66.73 Service &Supplies ( Basis FY 02/03 Actual } 40.00% 24.42 26.69 Indirect Cost ( HSD Admin & County A-87) 14.21% 8.67 9.48 TOTAL PRODUCTIVE HOURLY RATE $ 94.13 $ 102.90 RECOMMENDED HOURLY RATES : $ 95.00 $ 103.00 Licensina and Self Service Display Inspections Policy Coordinator -125 Inspections (1/store/year) 65 hrs. -62 Re-Inspections for non-compliance 45 hrs. -Compliance letters, correspondence 30 hrs. 140 hrs. Policy Coordinator hourly rate X $95/hr $- 13,300 Estimated Mileage(2460 x@$0.365/mile) $ 897 * Inspections and Re-Inspections include travel time Project Manager Supervison of Policy Coordinator 26 hrs. Project Manager hourly rate X $103/hr 2,678 Total Inspection Costs $ 16,875 Administrative Costs Business License Office, includes printing, invoicing and distribution of license. $ 3,125 ($25/retailer x 125 retailers) Total Cost $ 20,000 Total per license ($20,000/125 retailers) $ 160 Tob Lic Hearing HR FY 2003-04-5-115/3/2004WS REQUEST TO ,SPEAR FORM (THREE (3) MINUTE LIMITS Complete this form and _place it in the box near the speakers' rostrum before addressing the Board. s t - � ~ `7 Name: phone. ` ,Address: k F&4 F/VCity. E.L`Co-aL f7' I ate speaking for myself or organization: '� ✓ to of organization) CHEcx ONE: I wish to speak on Agenda Item # � Dates -0 My comments will be: general for against I =wish to spear on the subject of I do not wish to speak but leave these comments for the Board to consider: