DATE: January 27, 2026
TO: Mayor and City Council
FROM: Development Services Director
SUBJECT: Adopt a Resolution Authorizing the City Manager to Accept Grant Funding in the Amount of $153,000 from the California Department of Justice Tobacco Grant Program and Appropriate the Funds to the Code Enforcement Division of the Development Services Department for a Term of Three Years
RECOMMENDATION
That the Council adopts a resolution (Attachment II) authorizing the City Manager to accept grant funding in the amount of $153,000 from the California Department of Justice (DOJ) Tobacco Grant Program, allocating these funds to the Code Enforcement Division of the Development Services Department for a three-year term to support tobacco regulation enforcement and public health efforts.
SUMMARY
Staff recommends Council adopt the attached resolution to accept a $153,000 grant from the California DOJ Tobacco Grant Program (Award # DOJ-PROP56-2025-26-1-018). The grant supports efforts to reduce tobacco sales to underage youth through enhanced enforcement activities over three years. There is no match required for this grant.
FISCAL IMPACT
Acceptance of the grant funding has no impact on the General Fund, as no City match is required. Funds will be appropriated into a Grant Reimbursement Fund to support the operation of the Code Enforcement Division's tobacco compliance efforts.
Grant Budget Breakdown
Category of Expenditure
FY25-26
FY26-27
FY27-28
FY28-29
Total
Personal Services
$25,000
$50,000
$50,000
$25,000
$150,000
Administrative Costs
$500
$1,000
$1,000
$500
$3,000
Total Award Amount
$25,500
$51,000
$51,000
$25,500
$153,000
BACKGROUND
The City's Code Enforcement Division was competitively selected for a $153,000 grant from the California DOJ Tobacco Grant Program, one of many applicants vying for a share of the program's funds amidst approximately $50 million in requests for the 2025-26 cycle. The grant prioritizes local retailer enforcement and collaboration to curb tobacco sales to underage youth. In June 2025, the City's Grant Committee approved the Division's application, and in November 2025, the City was awarded funds under the California Healthcare, Research and Prevention Tobacco Tax Act of 2016 (Award # DOJ-PROP56-2025-26-1-018). Over three years, the Code Enforcement Division will conduct 103 annual retailer inspections and provide education to support compliance with tobacco laws, focusing on restricting sales of flavored products and protecting public health. This grant aligns with the City's Strategic Roadmap goals of promoting public health and safety through effective regulation and enforcement.
DISCUSSION
The City's grant committee reviewed the application and recommended proceeding, contingent on using existing staff to administer the grant (no new positions added). A current Code Enforcement Inspector will conduct enforcement activities. This grant streamlines the tobacco compliance program, allowing one inspector to oversee it, and saves City funds typically used for tobacco enforcement, freeing them up for other programs. Code Enforcement currently funds this program without additional City financial support. The grant optimizes resources and provides financial benefits to the City.
ECONOMIC IMPACT
The grant funding supports enforcement efforts without requiring new City funding, reducing tobacco-related costs and promoting Hayward's economic vitality through improved public health.
STRATEGIC ROADMAP
This project supports the Strategic Priority of Enhance Community Safety, however, it is not tied to implementation of any specific projects.
SUSTAINABILITY FEATURES
The grant funding supports sustainable public health efforts by reducing tobacco use, promoting compliance with tobacco regulations, and decreasing the environmental impact of tobacco product waste. By funding enforcement activities, the City enhances community health outcomes while advancing environmental stewardship goals aligned with City of Hayward initiatives.
NEXT STEPS
Upon Council approval, the City Manager will accept the grant and allocate funds to the Code Enforcement Division for implementation with program activities starting FY 2025-26.
Prepared by: Tera Maroney, Management Analyst
Recommended by: Sara Buizer, AICP. Development Services Director Approved by:
_________________________________
Jennifer Ott, City Manager