Agenda packet, regular meeting — National City City Council, March 4, 2025 (part 2 of 2)

March 4, 2025

NATIONAL CITY URBAN FOREST

MANAGEMENT PLAN

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OVERVIEW
2 National City’s Urban Forest Management
Plan (UFMP) documents and evaluates
the City’s urban forest and provides
recommendations for achieving the
following goals:
1) Optimize and sustain the City’s
urban forest to provide increased
economic, environmental and
societal benefits
2) Enhance the community’s
understanding of the importance of
trees and the benefits they provide
3) Develop a comprehensive urban
forestry program with the needed
resources to manage and sustain a
healthy urban forest
https://www.nationalcityca.gov/government/engineering-
public-works/public-works/tree-trimming

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CONTENTS
3 • Inventory
• Evaluation
• Community Engagement
• Recommendations and Best Practices
• Monitoring Plan
2016 Inventory ~ 9,400 Trees
2016 Canopy Coverage – 18%
(exceeds goal of 15% set by
American Forests)

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COMMUNITY ENGAGEMENT
4

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MONITORING PLAN
5

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TREE PRESERVATION ORDINANCE
6 13.18.010 - Purpose
C. Preserve and grow the city's canopy cover by protecting city trees and expanding the protection of city trees on public property.

D. Safeguard the city's urban forest by providing for the regulation of the protection, planting, maintenance, and removal of trees in the city.

E. Protect the visual and aesthetic character of the city.

F. Improve and enhance property values by conserving and adding to the distinctive and unique aesthetic character of the many areas of the city.

G. Improve the quality of life for residents, visitors and wildlife.

H. Maintain and enhance the general health, safety and welfare of the city and its residents by assisting in counteracting air pollution and in minimizing soil erosion and other related environmental damage.

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TREE INVENTORY (2024)
7

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TREE INVENTORY (2024)
8 Vacant Planting Sites – 1,707 Recommended Tree Removals – 428

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TREE MAINTENANCE
9 • Trees Trimmed (2016-2024) – 18,166
• Trees Planted (2016-2024) – 1,352
• Trees Removed (2016-2024) – 1,052

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TREE MAINTENANCE
1 0

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TREE MAINTENANCE
11 Partnership with West Coast Arborists, Inc. (WCA)
WCA employees are members of Local 89

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TREE MAINTENANCE
12 Partnership with West Coast Arborists, Inc. (WCA)

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Next Steps
Secure Funding for:
• New Tree Inventory
• New Tree Plantings & Establishment
• Tree Maintenance

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AGENDA REPORT

Department: Engineering & Public Works
Prepared by: Ricardo Rodriguez, Assistant Engineer-Civil Meeting Date: Tuesday, March 4, 2025
Approved by: Benjamin A. Martinez, City Manager

SUBJECT:

Report on Sewer Rate Study and Proposed Rate Increase.

RECOMMENDATION:

Adopt a Resolution Entitled: “Resolution of the City Council of the City of National City, California, 1) Accepting the Sewer Rate Study ; 2) Approving Revisions to Policy No. 201, Maintenance of Reserve Funds; and 3) Scheduling a Public Hearing and Directing Staff to Mail Out a Notice of Public Hearing as Required by Proposition 218.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

The City of National City provides wastewater service to more than 17,000 customers within the incorporated area of the City. The City owns and operates approximately 100 miles of sewer pipeline, 2,000 manholes, and 2 lift stations. With this municipal sewer system, the City collects and conveys wastewater flows originating from residential and commercial properties within the City, and connects to the City of San Diego Metropolitan Wastewater System (Metro) to ultimately arrive at San Diego’s Point Loma Treatment Plant for treatment and disposal. The City endeavors to operate the sewage system in a safe and efficient manner while meeting the needs of its customers as well as all State and Federal regulatory requirements . These include, but are not limited to, State Wastewater Discharge Requirements (WDRs), imposed by the California State Water Resources Control Board (SWRCB) , and others by the U.S. Environmental Protection Agency (US EPA) . Complying with these regulations and resulting mandates creates a large share of the cost burden on the City’s system.

In order to confirm that the revenue received by the City in the form of sewer service charges is sufficient to cover the cost of operation and capital improvements, as well as meet the target reserve level, on a regular ba sis it must evaluate the need to increase rates by conducting a Sewer Rate Study. Pursuant to Proposition 218, the City must hold a Public Hearing to receive input as it considers a rate adjustment for sewer service charges to National City residences and businesses. The Notice of Public Hearing is included as Exhibit A.

On December 19, 2017, the City Council adopted Ordinance No. 2017 -2442, following the Proposition 218 process, establishing sewer service charges for 5 years from Fiscal Year (FY) 2018 (2017-2018) through FY 2023. The service charges included increases of 9.8% for each of those years with the anticipation that the financial picture of the wastewater system for the City would stabilize during that time. The actual revenues received from the projected rates matched the model well and costs experienced during this time were also similar. The City Council then adopted Ordinance No. 2023-2521 on June 6, 2023, which amended Ordinance No. 2017-2442

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and maintained the sewer service charges at the same level with no increase for FY 2024 and FY 2025. This was done via a public hearing without Prop. 218 noticing since there were no increases adopted.

In the Fall of 2024, the City hired Ardurra Group, Inc. (Ardurra) as a subconsultant to Anser Advisory to complete a full Sewer Rate Study report through a review of expected revenue and expenditures for the next five fiscal years. Ardurra completed the assessment and the full report is included in Exhibit B. Further background on the City’s agreement with Metro for treatment and disposal is provided there.

The report identified the following key elements based on system needs that impact the analysis and determination of rates:

1. While the City’s current reserves may seem high compared to required reserve levels, the City has many costs that will occur over the next few years. They include some items that have certainty in cost and some for which the final fiscal impact is still unknown, such as:
a. Final Audited and true up Metro costs for the past 4 years have not yet been completed while the actual known costs of the Pure Water Phase I have increased. b. The final negotiations of the Second Amended and Restated Metro agreement have not happened and thus the final costs due to Phase I Pure Water Program and the offloading of the system from the East County Joint Power Authority’s Advanced Purified Water program are not yet known. Pure Water Phase 2 is just beginning the planning phase and final costs are uncertain.
c. Final Metro costs for several of their sewer spills over the past 2 years have not yet been negotiated and finalized.

2. Inflation is affecting the City’s Capital Improvement Program (CIP) costs. Construction costs are still vastly outpacing inflation.

3. Significant CIPs have been identified through recent sewer system modeling and investigation.

4. The City is undertaking a comprehensive CCTV evaluation of the pipes in the system. This may identify other improvements needed in the aging system.

5. Small rate increases will help revenue keep up with inflation while a focus on CIP projects will draw down reserves.

6. Government Code 53756 allows an agency providing water, wastewater, sewer, or refuse collection service to adopt a schedule of fees or charges authorizing automatic adjustments that pass -through increases in wholesale charges for water, sewage treatment, or wastewater treatment or adjustments for inflation. Given the uncertainty of the costs to be incurred from the City of San Diego, adopting a pass-through ordinance as part of the rates is recommended. This allows an adjustment if the costs from Metro are more than what is currently anticipated.

While no significant changes have occurred in the flow characteristics and distribution of flows or billing classifications in the past 7 years, some minor changes have occurred. It has been determined that mobile home rates should not increase as much as single family rates as their water use has dropped more th an for single family properties, and commercial rates should be increased more than residential rates to keep the proportion of the fees appropriate over time due to the increased costs of treatment for the effluent generated by commercial properties.

The City’s sewer utility was evaluated on a ‘st and-alone’ basis, meaning that no subsidies by other City funds occur in order to cover the costs of running the system. By viewing the utility on a stand-alone basis, the need to adequately fund both operations and maintenance (O&M) and CIP must be balanced against the rate impacts on utility customers. The sewer system utility does pay other departments for shared resources that provide administrative support.

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The City is still developing the details of the five -year CIP, but the estimates included in the rate study are based upon existing information with a projection for future needs.

The largest component of the City of National City’s revenue requirement is the cost associated with transportation, treatment and disposal of the City’s wastewater by the Metro facilities. A summary of the projected City collection system O&M, CIP and Metro expenses compared to proposed sewer rates is included in the rate study and summarized in the charts below.

Based on cost of service and projected revenue requireme nts, the City proposes new sewer service charges. The following table shows the recommended monthly and unit charges in dollars and compares them to existing charges:

Annual Sewer Service Charges for FY 2025-2026 to FY 2029-2030 *Commercial properties have an annual minimum charge which is equivalent to the mobile home annual charge. Duplexes or a single ADU with a single family on a property are charged one single family rate and one multi-family rate.

The recommended rate increases, on a percentage basis, are as follows:

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The following chart presents a long-term forecast of revenues versus expenditures and reserves.

The intent is to provide the potential financial picture of the Sewer Service Fund over the next 10 years based upon the inclusion of proposed sewer rate increases (revenues), total expenses, and operational & Capital Reserves. The rate study is only for five years, but it shows the need to have the rates gradually increased while reserves are drawn down, otherwise the rate increases would be substantial in future years to catch up. The forecast in the second five -year period is with rates and inflation generally being consistent, but show a matching of the cash reserves and the reserve targets with reduced system CIP needs.

This analysis recommends minor change s to the City’s current reserve Policy No. 201, Maintenance of Reserve Funds, last amended May 4, 2021, that apply to the sewer fund of which there are five elements. A redline of the full policy is included as Exhibit C, an excerpt of which is shown here:

1. Sewer Service Fund Operations/Cash Flow Reserve: an amount equal to between twenty-five percent (25%) and at least 50% of a single year’s budgeted Sewer Service Fund operating expenditures.

2. Sewer Service Fund Metro Cash Flow Reserve: An amount equal to the City’s estimated portion of the projected cash needs for capital costs of the San Diego Metropolitan Sewerage’s wastewater treatment program. This amount is assumed t o be $850,000 for fiscal years 2025-26 through 2029-30.

3. Sewer Service Fund Emergency/Natural Disaster Reserve: An amount equal to a minimum of 15% of a single year’s budgeted Sewer Service Fund Operating expenditures, including both operational and capital improvement program costs.

4. Sewer Service Fund Capital Replacement Reserve: An amount equal to between 10% & 15% of a single year’s budgeted Sewer Service Fund operating expenditures user fees.

5. Sewer Service Fund Capital Expansion Reserve: An amount equal to between 10% & 15% of a single year’s budgeted Sewer Service Fund operating expenditures user fees.

The recommended change to the Operations/Cash Flow reserve is due to the City’s billing for sewer fees on the tax roll and so the majority of the City’s revenues are received in a 6 -month period, therefore, 6 months of operational costs should be in place at all times as a minimum.

The following chart represents a monthly sewer rate comparison for other Participating Agencies of the San Diego Metro system before and after the FYE2026 proposed rate increase. With the rate increase for FYE2026, National City would still be among the lowest sewer rates.

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In summary, staff recommends that Council accept and file the Study, approve revisions to Policy 201, and direct the release of the Notice of Public Hearing in consideration of the proposed rates.

FINANCIAL STATEMENT:

Increasing the existing sewer fees for Fiscal Years 2025 -2026 to 2029 -2030 will maintain the reserve levels set by the City Council and allow for the ongoing maintenance, operation, and repair/replacement of the sewer system.

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Transportation Choices and Infrastructure

ENVIRONMENTAL REVIEW:

This is not a project under CEQA , and is therefore , not subject to environmental review.

CCR15378; PRC 21065.

PUBLIC NOTIFICATION:

The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act

ORDINANCE:

Not Applicable

EXHIBITS:

Exhibit A – Notice of Public Hearing
Exhibit B – Sewer Rate Study
Exhibit C – City Council Policy 201 Redline
Exhibit D – Resolution

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Engineering & Public Works Department
1243 National City Boulevard, National City, CA 91950
619/336-4380 www.nationalcityca.gov

NOTICE OF PUBLIC HEARING
To Consider Proposed adjustments to Sewer Service Charges Tuesday, May 6, 2025, 6:00 p.m.

Proposition 218
Pursuant to Article XIIID of the California Constitution and the Proposition 218 Omnibus Implementation, the City of National City (“City”) hereby gives notice that a public hearing will be held on May 6, 2025 at 6:00 PM, or as soon as possible thereafter as the matter can be heard, at the regularly scheduled City Council meeting. The public hearing will be held in the Council Chamber of City Hall, located at 1243 National City Boulevard, National City, California, 91950.

Upon conclusion of the public hearing, the City Council will consider a proposed increase to the rates the City charges for sewer service for Fiscal Years 2025/26 through 2029/30. If approved, the rate adjustment will become effective on customers’ 2025/26 property tax bills. For more detailed information on how the sewer rates were calculated, copies of the Ardurra rate study analysis (see below) are available at http://www.nationaIcitvca.gov/engneerinpublic- works/engineering-division/sewer-service or at the Engineering/Public Works Department, located at 1243 National City Boulevard, National City, California, 91950, Telephone No. (619)- 336-4380.

Reason for Proposed Rate Increase
The City is provided wastewater treatment and disposal services by the City of San Diego’s Metropolitan Wastewater System (“Metro”). The proposed rate adjustments will allow the City to collect sufficient revenue so the City may continue providing sewer service to customers in the face of sharply increasing operating costs from Metro. The proposed rate adjustments will also enable the City to pay for capital improvements that are essential for operating the sewer system in a safe and financially prudent manner. The City’s system is aging and requires more extensive maintenance. Revenues derived from the City’s sewer service charges, and any adopted adjustments described in this notice, will be used solely for the actual and necessary expenses of providing sewer service to customers. The City is prohibited by law from making a profit on sewer service.

The City elected to conduct a comprehensive review of its sewer rates for all users to ensure the long-term stability of its sewer services. The new proposed rate increases are based on a January 28, 2025 rate study titled "City of National City Sewer Rate Study” (the “Study”) conducted by Ardurra, a well-respected engineering and consulting firm. Ardurra considered all sewer-related factors described in this notice, in addition to other, more specific information described in the Study, in conducting their sewer rate analysis. The Study’s underlying rate methodology will be discussed in more detail at the public hearing.

Protest Procedure
The property owner of record or tenant of the property may file a written protest to the proposed rate adjustment. Property owners or tenants do not have to attend the public hearing in order to file a protest. Protests may be mailed to: City Clerk, 1243 National City Boulevard, National City,

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Engineering & Public Works Department
1243 National City Boulevard, National City, CA 91950
619/336-4380 www.nationalcityca.gov
California 91950. If protesting by mail, please write on the front of the envelope that the enclosed letter of protest is for the proposed sewer rate adjustments. AII protests must be received before the close of the public comment portion of the public hearing on May 6, 2025.

Any protests received after that date and time, even if postmarked on or prior to that date, will not be counted.

The protest must be signed by the property owner(s) or tenant(s). Because an original signature is required, any protest received via e-mail, fax, or other electronic means will not be accepted.

Similarly, protests with copies of signatures will not be counted. Oral comments do not qualify as a protest, unless accompanied by a written protest. While both property owners and tenants of a property may attend the public hearing, only one valid protest per parcel will be counted.

In order to be counted, each protest must contain the following:

1. State that the property owner of record is opposed to the proposed rate increase.

2. Identify the location of the parcel by street address, assessor’s parcel number (APN) listed on the address label of your envelope, or City account number.

3. Provide the printed name and original signature of the property owner or tenant submitting the protest.

4. If you wish to protest and you own multiple properties, you may file one valid protest for each parcel that you own. Only one protest will be counted per parcel. For example, if you own five parcels and you wish to file protests for each of your properties, you must file five separate protests.

5. If you wish to protest and your parcel is owned by more than one person, or by a corporation or other legal entity, you may only file one protest for that parcel. Proper documentation must be provided showing that the person who signs the protest has the authority to sign on behalf of the other owners, corporation, or legal entity.

6. If the name of the property owner was not shown on San Diego County's last equalized assessment roll as the owner of record, you must provide the City with a certified copy of a recorded deed.

Individuals with disabilities who require reasonable accommodation under the Americans with Disabilities Act in order to participate in the public hearing should contact the City Clerk’s Office as far in advance of the public hearing as possible.

Proposed Increases
The City last adjusted sewer service charges in FY 2017 for a five year period ending in FY 2023. The Study showed that, over the next five years, current sewer service revenues will not meet the increasing cost of City operating and capital expenses. The City’s system of sewer service charges meets regulatory and industry standards, and the current rate schedule reflects the proper elements of a cost-of-service-based rate structure. No structural changes to the current system of charges will be made, but rate increases are different for different customer classes to maintain the correct balance of the cost-of-service.

Based upon the Study, rate increases will be considered for each of the City’s four distinct sewer customer groups: (1) single-family residential; (2) multi-family; (3) mobile home parks; and (4) commercial/industrial. The City maintains a specific sewer charge formula for each of

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Engineering & Public Works Department
1243 National City Boulevard, National City, CA 91950
619/336-4380 www.nationalcityca.gov
these four customer groups. Single family, multi-family, and mobile home customers are billed flat rates based on a system of equivalent dwelling units established for each of these three customer groups. Commercial/industrial users are placed into one of five rate categories based on (1) their respective sewage strengths, and (2) 90% of the users’ total water usage from the prior year.

The following rate table contains the recommended sewer service charges that the City Council will consider for adoption at the public hearing:
*Commercial properties have an annual minimum charge which is equivalent to the mobile home annual charge. Duplexes or a single ADU with a single family on a property are charged one single family rate and one multi-family rate.

Pass-Through Costs
The above-proposed rate table is based, in part, on projections provided by Metro, which provides treatment for all of the City’s sewage. State law allows the City to pass through to customers any increases to wholesale treatment costs that exceed the budgeted amounts for those services in the rate study. In the event of any adopted increase of such wholesale costs, the City may automatically adjust the rate table above and will provide customers at least 30 days’ notice before the effective date of any adjustment.

If you have any questions about this process, or this notice in general, please contact the Engineering / Public Works Department at (619)-336-4380.

EXISTING
2024-
2025
2025-
2026 2026-2027
2027-
2028
2028-
2029
2029-
2030
Residential: $ Per Month
Single Family 51.18$ 52.72 $ 54.30 $ 55.93 $ 57.60 $ 59.33 $ Multi-family/Condo 39.92$ 41.12 $ 42.35 $ 43.62 $ 44.93 $ 46.28 $ Mobile Homes 31.22$ 31.53 $ 31.85 $ 32.17 $ 32.49 $ 32.81 $ Non-Residential: $ Per HCF
Commercial - Low 5.25$ 5.67 $ 6.12 $ 6.61 $ 7.14 $ 7.71 $ Commercial - Medium Low 5.66$ 6.06 $ 6.48 $ 6.93 $ 7.42 $ 7.94 $ Commercial - Medium 6.80$ 7.28 $ 7.79 $ 8.33 $ 8.91 $ 9.54 $ Commercial - Medium High 7.95$ 8.43 $ 8.93 $ 9.47 $ 10.04$ 10.64 $ Commercial - High 9.88$ 10.42$ 11.00 $ 11.60 $ 12.24 $ 12.91 $

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City of National City
Sewer Rate Study
January 2025
Submitted to:

City of National City
1243 National City Boulevard
National City, CA 91950-4301
Submitted By:

Ardurra
9665 Chesapeake Drive, Suite 230
San Diego, CA 92123
858.842.6978 Page 197 of 310
Table of Contents

i
Table of Contents
Table of Contents .......................................................................................................................... i Appendicies ................................................................................................................................. ii List of Abbreviations .................................................................................................................... iii Section 1 EXECUTIVE SUMMARY ......................................................................................... 1-1

1.1 FINDINGS ....................................................................................................... 1-1

1.2 RECOMMENDATIONS .................................................................................. 1-3 Section 2 INTRODUCTION ................................................................................. 2-1

2.1 BACKGROUND: CITY OF NATIONAL CITY .................................................. 2-1

2.2 BACKGROUND: CITY OF SAN DIEGO METROPOLITAN SEWAGE
TREATMENT SYSTEM ...................................................................................... 2-2

2.3 RATE STUDY SUMMARY ................................................................................ 2-3 Section 3 WASTEWATER RATE STUDY................................................................. 3-1

3.1 OVERVIEW OF THE SEWER SERVICE CHARGE UPDATE PROCESS ............ 3-1 List of Figures
Figure 1-1 National City Annual Sources and Uses of Funds vs Cash Reserve and Reserve Targets ......................................................................................................................... 1-3 Figure 1-2 Metro Member Agencies Sewer Rates Comparison ................................................ 1-5 Figure 2-1 Sewer Rate Comparison for Participating Agencies in San Diego Metro System. 2-3 Figure 3-1 Overview of the Comprehensive Rate Study Analysis .............................................. 3-1 Figure 3-2 Major Cost Components of City of National City's FY 2026 Revenue Requirements ...................................................................................................................................... 3-3 Figure 3-3 National City Annual Sources and Uses of Funds vs Cash Reserve and Reserve Targets ......................................................................................................................... 3-5 Figure 3-4 Components of FY 2026 Single Family Monthly Rate ................................................ 3-8 Figure 3-5 Metro Member Agencies Sewer Rate Comparison .................................................. 3-9 List of Tables
Table 1-1 Sewer Service Fund Long Range Plan without Revenue Adjustments (Status Quo) ...................................................................................................................................... 1-2 Table 1-2 Recommended Annual Revenue Adjustment .......................................................... 1-3 Table 1-3 Sewer Service Fund Long Range Plan with Recommended Revenue Adjustment ..................................................................................................................................... .1-4 Table 1-4 Recommended Annual Sewer Service Charges ...................................................... 1-4 Table 3-1 City of National City Revenue Requirements ............................................................ 3-2 Table 3-2 City of National City Long Range Financial Plan ...................................................... 3-4 Table 3-3 Summary of Current Users and Estimated Sewer Flow .............................................. 3-5 Table 3-4 Proposed Percentage Increase in rates…………………………………………………3-7

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Table of Contents

ii
Table 3-5 Comparison of Current Versus Proposed Sewer User Rates ..................................... 3-8

Appendices
Appendix A Rate Model

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iii
List of Abbreviations
AWWA American Water Works Association
BMP Best Management Practices as Prescribed by the State of California BOD Biochemical Oxygen Demand – A Measure of Sewage Strength CCTV Closed-Circuit Television
CIP Capital Improvement Program or Plan
EDU Equivalent Dwelling Unit
ENR-CCI Engineering News Record Construction Cost Index FY Fiscal Year Ending June 30
FYE Fiscal Year Ending June 30
GPD Gallons per Day
HCF Hundred Cubic Feet
Metro City of San Diego Metropolitan Wastewater System mg/l Milligrams per Liter
O&M Operations and Maintenance
PA Participating Agency in the San Diego Metro System
TSS Total Suspended Solids – A Measure of Sewage Strength US EPA U.S. Environmental Protection Agency

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Section 1 – Executive Summary

1-1
Section 1

EXECUTIVE SUMMARY
This report was prepared for the City of National City (City) to document the development of a wastewater multi-year financial plan, cost of service analysis, and rate design for the City (rate case). The specific goals of the study were to:
 Evaluate the adequacy of projected revenues under existing sewer service charges to meet projected revenue requirements;
 Develop a wastewater cost of service and rate model for the City covering a five- year study (Fiscal Year 2025-2026 (FY 2026) through Fiscal Year 2029-2030 (FY2030)) period for both ongoing operations and planned capital improvements;  Allocate the projected fiscal years revenue requirements to the various customer classes in accordance with the proportionate share of their wastewater contributions;
 Develop a five-year sewer service charge program that produces revenues adequate to meet financial needs of the City for both their required funding of the transportation & treatment of wastewater by the City of San Diego’s Metropolitan Wastewater System (Metro) including the city’ share of the Pure Water Program and the City’s operations and capital needs, while recognizing customer costs of service, and local and state legal and policy considerations such as California Constitution Articles XIII C and D (Proposition 218), and Proposition 26; and  Recommend appropriate reserve levels for operations and capital needs

1.1 FINDINGS
During the course of our analysis in relation to the specific goals of the study we made the following findings:

1. The City of National City last adjusted the sewer service charges in FY 2017.

2. Wastewater service charge revenues at current levels will not be sufficient over the next five years to meet the increasing cost of City operating and capital expenses without negatively affecting fund balance levels1. Table 1-1 on the next page illustrates the projected financial picture without recommended sewer service charge adjustments. While the fund has reserves, the costs of services are rising and _________________________
1 The term “fund balance” refers to the remaining amounts available after short-term liabilities (monies owed) are paid off with the agency’s available cash and other financial resources (such as receivables). The fund balance includes reserved and unreserved components. For the purposes of this Study, this term refers to “available cash excluding reserved monies” and the term “fund” refers to the account in which monies reside for operating or capital expenditures, specifically known as the Sewer Service Fund.

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Section 1 – Executive Summary
1-2
large increases to rates would be necessary in the future if incremental increases are not enacted now. Furthermore, with the capital projects anticipated to be constructed in the coming years, the reserve balance would fall below the target level by FY 2030.

Table 1-1 – Sewer Service Fund Long Range Plan without Revenue Adjustments (Status Quo)

3. The City’s formal reserve policy for their operations or capital funds should be updated.

4. The City currently does not have a mechanism to pass through wholesale treatment costs from the City of San Diego to customers should those costs rise beyond projections in the cost of service model, or beyond future year projections.

5. The City has an adequate system of sewer service charges to meet regulatory and industry standards, and their current rate schedule reflect the proper elements of a cost of service based rate structure. Thus, we are not recommending any structural changes to the current system of charges, but the increases are not equivalent across customer classes.

6. The City’s capacity charge for new development has not been updated in many years. The City will be evaluating and determining how those charges should change as a separate process in the near future.

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Section 1 – Executive Summary
1-3

1.2 RECOMMENDATIONS
The following lists Ardurra’s recommendations to address the findings listed above:

1. Per the cost-of-service analysis contained within this report, Ardurra recommends City wastewater service charges be adjusted to reflect current costs of providing sewer service to customers within the City. This recommendation includes adjusting total revenue from rates in FY 2026 and ending in FY 2030 as shown in Table 1-2. Based on the cost-of-service analysis, revenue adjustments per customer class do vary.

Table 1-2 – Recommended Annual Revenue Adjustment

Should the City approve these rate adjustments, the projected financial picture of the City will draw down reserves, while increasing user fees at a nominal rate. While FY 2030 is nominally under target for the fund balance, a 10 year look forward has the fund only dipping below the balance for just the one year and the City should monitor both revenue and expenditures over the study period to assure it stays on track. This is presented in graphic format with Figure 1-1 and all of the detailed numbers in 1-3. Figure 1-1 includes projections to 2035 showing the projections stabilize with these increases. However, any projection beyond 5 years includes many assumptions that may or may not be accurate.

Figure 1-1 National City Annual Sources and Uses of Funds vs. Cash Reserves and Reserves Targets

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Section 1 – Executive Summary
1-4
Table 1-3 - Sewer Service Fund Long Range Plan with Recommended Revenue Adjustments

2. Based on cost of service and projected revenue requirements the City should adopt the following sewer service charges. Table 1-4 shows the proposed sewer charges for FY 2026 through FY 2030 and compares them to existing charges.

Table 1-4: Recommended Annual Sewer Service Charges

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Section 1 – Executive Summary
1-5
Figure 1-2 summarizes all San Diego Metro Member Agencies comparative sewer user rates based on 7 HCF of water usage/sewer flow and a residential monthly base fee. It should be noted that the rates shown are those effective January 1, 2025, based upon readily available information. The figure also includes the City’s current monthly rate as well as the proposed FY 2026 rate of $52.72 per EDU per month. The City’s first proposed rate adjustment will not begin until July 1, 2025. Many agencies are in the process of updating their current rate cases. Even with the proposed 5-year rate adjustments National City will still enjoy some of the lowest rates among the users of the San Diego Metro System. The proposed FY 2026 single family rate will be as low as $52.72 which is 15% lower than the existing (FY 2025) average Metro member agency rate of $62.21.

Figure 1-2 Metro Member Agencies Sewer Rates Comparison

3. The City’s reserve policy generally protects the financial integrity of their sewer service fund. The following minor changes are recommended (shown below as strike-through for deletion and underlined for additions):

Sewer Service Fund Operations/Cash Flow Reserve: Between 25& At least 50% of a single year’s budgeted Sewer Service Fund Operating Expenditures.

Sewer Service Fund Metro Cash Flow Reserve: an amount equal to the City’s estimated portion of the projected cash needs for capital costs of the San Diego Metropolitan Sewerage’s Wastewater Treatment Program. This amount is assumed to be $850,000 for fiscal year 2025-26 through fiscal year 2029-30

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Section 1 – Executive Summary
1-6
Sewer Service Fund Emergency/Natural Disaster Reserve: an amount equal to a minimum of 15% of a single year’s budgeted Sewer Service Fund Operating expenditures, including both operational and capital improvement program costs.

Sewer Service Fund Capital Replacement Reserve: an amount equal to between 10% & 15% of a single year’s budgeted Sewer Service Fund operating expenditures user fees.

Sewer Service Fund Capital Expansion Reserve: an amount equal to between 10% & 15% of a single year’s budgeted Sewer Service Fund operating expenditures user fees.

4. Ardurra recommends that the City provide a provision to give the City the ability to pass through City of San Diego wholesale transportation, treatment, and disposal costs to customers should those costs rise beyond projections in the cost-of-service model or beyond what the City notices to customers at time of rate implementation.

This action would obviate the need for the City to conduct another Proposition 218 mailed 45-day notice and public hearing requirement. The authority to provide this provision is located in California Government Code Section 53756. Specifically, the Government Code reads as follows:

An agency providing water, wastewater, sewer, or refuse collection service may adopt a schedule of fees or charges authorizing automatic adjustments that pass-through increases in wholesale charges for water, sewage treatment, or wastewater treatment or adjustments for inflation, if it complies with all of the following:
(a) It adopts the schedule of fees or charges for a property-related service for a period not to exceed five years pursuant to Section 53755.
(b) The schedule of fees or charges may include a schedule of adjustments, including a clearly defined formula for adjusting for inflation. Any inflation adjustment to a fee or charge for a property-related service shall not exceed the cost of providing that service. (c) The schedule of fees or charges for an agency that purchases wholesale water, sewage treatment, or wastewater treatment from a public agency may provide for automatic adjustments that pass through the adopted increases or decreases in the wholesale charges for water, sewage treatment, or wastewater treatment established by the other agency

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Section 2 – Introduction

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Section 2

INTRODUCTION
This study (Study) takes a long-range planning approach to establishing wastewater service charges and fees. A discussion of the long-range plan and recommended sewer charge and fee adjustments are included in the following section of this report. The analyses contained herein include operation and maintenance (O&M) costs, City of San Diego Metropolitan Wastewater Department (Metro) transportation, treatment and disposal costs, reserve levels, and identified capital improvement projects (CIP). To that end, the Study examines the revenues generated by the City and makes recommendations for revenue adjustments, as needed. The City retained NV5 in 2017 to update a wastewater cost of service study previously developed by PBS&J in FY 2003. Ms.

Carmen Kasner supported this effort and in FY2023 she completed a minor update to the study to confirm that holding the rates flat for two years through FY2025 was appropriate.

For purposes of this report, the study period is the fiscal years beginning July 1, 2025, and ending June 30, 2030. Unless otherwise noted, references in this report to a specific year are for the City’s fiscal year ending June 30. To avoid confusion between calendar and fiscal years, the term FY refers to the year beginning July 1 and ending June 30. Presented herein are the results of a Study of the City’s projected revenues, revenue requirements, cost of service, and rates for service.

2.1 BACKGROUND: CITY OF NATIONAL CITY
The City provides wastewater service to approximately 17,000 customers within the incorporated area of the City of National City. It owns and operates approximately 100 miles of pipeline, 2,000 manholes, and 2 lift stations. The collection, treatment, and disposal of wastewater in an environmentally safe and efficient manner promote healthy communities and increase the quality of life for local residents.

The City is responsible for collecting wastewater flows originating within the City and conveying the collected flows to the City of San Diego’s Point Loma Treatment Plant for treatment and disposal. The City’s primary goals are operating the sewerage system safely and efficiently while meeting the needs of their customers.

To meet these goals, the City undertakes routine cleaning, inspections, and repairs and rehabilitates its facilities as needed. The wastewater system operates in an area subject to strict regulatory oversight by Federal and State agencies such as the U.S. Environmental Protection Agency (US EPA) and the California State Water Resources Control Board (SWRCB). The City must comply with a multitude of laws including, but not limited to, State Wastewater Discharge Requirements (WDRs). Complying with these regulations and resulting mandates contributes to a large share of the cost burden on the City’s system.

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The City completed a Wastewater Master Plan in 2017 which will be updated in the near future, this plan identified numerous projects to upgrade the system. Recently the City has begun a more aggressive CCTV program to identify improvements. Based upon early results of about 10% of the system, numerous improvements are necessary. Due to these identified issues and significant increases in construction costs an average of $6 million per year for the next 3 years and then $5 million and $4 million for the following years are proposed for required rehabilitation and expansion projects. These annual projected capital improvement costs (CIP) are incorporated into this Study and form the basis for the City’s annual capital requirements.

2.2 BACKGROUND: CITY OF SAN DIEGO METROPOLITAN SEWAGE

TREATMENT SYSTEM
The City of National City is one of thirteen participating agencies (PAs) who send their wastewater to the City of San Diego Metropolitan Sewage Treatment System (Metro) for treatment and disposal. Along with the other PAs the City entered into the Regional Disposal Agreement with San Diego in 1998. Due to positive financial negotiations with San Diego since that time and especially the establishment of the “Administrative Protocol on Allocation of Operating Reserves and Debt Service Coverage” during FY 2010 the City has enjoyed stable annual billings for the last 8 years from the City of San Diego. However, in 2015 the City of San Diego initiated a multi-billion-dollar public works project entitled the Pure Water Program which will provide the double benefit of “secondary equivalency” to San Diego’s wastewater customers including National City as well as a significant new potable water supply for the City of San Diego.

This resulted in a Major amendment to the Regional Disposal agreement approved in 2018 but that amendment left many elements to further discussion and negotiations. Since that time, the City is well underway with construction of their Pure Water Program and the East County Joint Powers Authority has begun construction on their Advanced Purified Water Project. For the past 6 years, discussions and negotiations on those open-ended items has progressed and the City of San Diego and Metro members appear to be coming close to a final Draft of a Second Amended and Restated Agreement.

A five-year projection of Metro costs for the City were received from the City of San Diego in December of 2024 but do not include some uncertainties because there are still many unknown final costs. The projections received do not include costs for the spills in the system during rain events in the past two winters, the final costs for upgrades to the large Metro Pumpstations 1&2 that were conditions of a spill from four years ago, the final rate methodology for the Second Amended and Restated Metro Agreement (SARA) that is still being negotiated, Costs for Pure Water Phase II, nor do they include final audited costs for the past three Fiscal Years. The City of San Diego recommends that each agency have a pass-through provision in their rates due to these uncertainties at the moment.

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2.3 RATE STUDY SUMMARY
The City of National City customers enjoy some of the lowest sewer service charges in the Metro System as shown in Figure 2-1 and have for many years. The City last adjusted sewer service charges in FY 2023 and held them flat for the past two years. the FY 2025 charge is 15% lower than the average Metro PA rate of $62.21 per month. However, the City’s increased internal CIP requirements and the costs associated with Metro require that the City adjust their sewer rates for the next five years.

The rate study assumed 3% inflation for all expenses except Metro for the rate study period.

Figure 2-1 Sewer Rate Comparison for Participating Agencies in San Diego Metro System

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Section 3 – Wastewater Rate Study

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Section 3

WASTEWATER RATE STUDY

3.1 OVERVIEW OF THE SEWER SERVICE CHARGE UPDATE PROCESS A comprehensive rate study typically utilizes three interrelated analyses to address the adequacy and equity of the utility’s rates. These three analyses are a revenue requirement analysis, a cost-of-service analysis, and a rate design analysis. The process is illustrated in Figure 3 -1.

Figure 3-1 Overview of the Comprehensive Rate Study Analysis

The City’s sewer utility was evaluated on a “stand-alone” basis. That is, no subsidies between the utility or other City funds occur. By viewing the utility on a stand-alone basis, the need to adequately fund both operations and maintenance (O&M) and capital infrastructure (CIP) must be balanced against the rate impacts on utility customers.

A detailed and comprehensive process was used to review the City’s rates. As a part of the rate study process a number of on-site project meeting and conference calls were used to review the results with City staff. From this process, final proposed rates were developed and their development is reviewed in this section of the report. Following is a summary of each step in the process.

Revenue Requirement AnalysisCompares the sources of funds (revenue) to the expenses of the utility to determine the overall rate adjustment requiredCost of Service AnalysisAllocates the revenue requirements to the various customer classes of service in a "fair and equitable mannerRate Design AnalysisConsiders both the level and structure of the rate design to collect the target level of service

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Revenue Requirement Analysis: The revenue requirement analysis revealed that several significant financial changes have occurred since the City’s 2023 update holding rates flat. The significant changes are:
 The current CIP needs of the City have increased due to construction cost increases, additional CCTV and inspection. The age of the city’s system and some densification requiring some upsizing. The Rate study has updated CIP costs to an average of $6 million per year for the next 3 years and then $5 million and $4 million for the following years. This will allow the City to draw down some of the fund reserves and make significant progress on required rehabilitation and expansion projects that are causing a higher risk of spills and more operational costs. These annual projected capital improvement costs (CIP) are incorporated into this Study and form the basis for the City’s annual capital requirements. These costs were not included in the City’s FY 2025 adopted budget.
 The construction phase of the City of San Diego’s Pure Water Program is nearly done and during FY 2025 to FY 2030 additional Metro costs are anticipated for Phase 1 of this program due to Audit true ups and the previously discussed SARA that is being negotiated and other Metro system issues. The City’s portion of the Metro budget is currently 7.4% and while the SARA draft methodology does not increase the City’s percentage, there is still uncertainties with flows and impacts from the East county JPA project.

The largest component of the City of National City’s revenue requirement is the costs associated with transportation, treatment, and disposal of the City’s wastewater by the Metro facilities, an aggressive CIP is a close second. A summary of the projected City collection system O&M and CIP, plus San Diego Metro expenses to be included in the City’s rate case, are included on Table 3-1.

Table 3-1: City of National City Revenue Requirements

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Figure 3-2 shows the percentage of each of the major cost centers in the City’s rate case.

As noted, the largest component of National City’s revenue requirements (47%) will be paid directly to the City of San Diego.

Figure 3-2 Major Cost Components of City of National City’s FY 2026 Revenue Requirements

As a part of establishing the revenue requirement for the City’s rate case City staff requested Ardurra consultant’s guidance in reviewing their reserve policy to financially protect the City’s sewer service fund. At the end of FY 2024 (June 30, 2024) the City’s sewer service fund showed a reserve cash fund balance of $26.3 million. Ardurra consultants reviewed with City staff industry standard guidelines in establishing formal reserve policies as well as the City’s needs for financial stability and potential exposures to external forces which could require unplanned O&M or capital expenditures. The City’s reserve policy is solid as it was updated in a prior rate study, but the following minor updates are suggested (shown below as strike-through for deletion and underlined for additions).

Sewer Service Fund Operations/Cash Flow Reserve: Between 25& At least 50% of a single year’s budgeted Sewer Service Fund Operating Expenditures.

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Sewer Service Fund Emergency/Natural Disaster Reserve: an amount equal to a minimum of 15% of a single year’s budgeted Sewer Service Fund Operating expenditures, including both operational and capital improvement program costs.

Sewer Service Fund Capital Replacement Reserve: an amount equal to between 10% & 15% of a single year’s budgeted Sewer Service Fund operating expenditures user fees.

Sewer Service Fund Capital Expansion Reserve: an amount equal to between 10% & 15% of a single year’s budgeted Sewer Service Fund operating expenditures user fees.

The final step in determining the revenue requirement for the City’s rate case was to overlay the projected expenditures for the next five years as summarized in Table 3-1 and the recommended reserve policy. Table 3-2 creates a long-range plan showing the use of reserves to minimize the annual rate adjustment to per year stating in FY 2026 through FY 2030. The use/replacement of the City’s reserves is shown on Line 22. While the FYE2030 shows the fund balance slightly under the target, that target is with the maximum percentages from the reserve policy and thus are still well within the appropriate reserve amount. During the next 5 years there will be more clarity available from Metro and from the City’s CCTV and planning efforts.

A detailed copy of the five-year revenue requirement is included in Appendix A to this report.

Table 3-2: City of National City Long Range Financial Plan

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Ardurra did look at a 10 year projection of rates and increases and assumed a similar increase of a nominal 3% with expenses increasing at a similar rates and it shows that the rate increase shown here will stabilize the expenditures into the future unless significant additional Capital projects are identified or inflation and other cost factors change as well. Any projection past 5 years includes many assumptions that may or may not be accurate.

Figure 3-3 National City Annual Sources and Uses of Funds vs. Cash Reserves and Reserves Targets

Cost of Service Analysis: The cost-of-service analysis revealed that several major changes have occurred in users and use since the City’s 2017 rate study and subsequently adopted sewer user rates. The significant changes are:
 As with other communities in San Diego County and Southern California the City’s citizens and businesses have decreased their water usage significantly since FY 2017.

This was especially the case during COVID when many businesses were closed. This has decreased revenues from the commercial and industrial users of the City who are billed on their annual water usage.
 The City uses an equivalent dwelling unit (EDU) system of rates for their residential users. Historically the City has used 240 gallons per day (gpd) for a single-family residential user for billing purposes. Multi-family/condo units are considered to be 0.8 EDU and mobile home units 0.6 EDUs. These EDUs are consistent with industry standards for EDU based user systems. However, due to the decreased water use by residential as well as commercial/industrial users the gallons per EDU have decreased to an estimated 220 gpd. 220 gpd is consistent with the other Participating Agencies wastewater generation rate (in gpd) for EDUs The City’s rate model was updated with the number of residential and commercial/ industrial users used for billing purposes on the FY 2025 tax roll. As noted above the gallons

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for residential EDUs were revised to 220 gpd per EDU and the most recent water usage for commercial/industrial users was included.

Table 3-3 summarizes the current number of City users and their projected sewer flows based on the current tax roll water use data for FY 2025.

Table 3-3: Summary of Current Users and Estimated Sewer Flow

Rate Design Analysis: As part of the rate setting process a routine review of an agency’s sewer service charge rate structure is performed. This is done to assure that the agency’s rate structure meets industry standards as well as complies with local, State, and Federal guidelines and regulations.

The City of National City first established their current rate structure in the mid-1990’s and it was submitted to the State Water Resources Control Board of the State of California (SWRCB) and the US EPA. The rate structure and the cost allocations upon which it is based were approved by both the SWRCB and the US EPA. These principles still meet industry standards today and follows Best Management Practices (BMP’s) established by the State of California, and thus there are no recommended changes to the existing rate structure.

The City uses a combination of EDU’s for residential users and water based rates for commercial/industrial users. Single family residential users are considered to be 1 EDU, and multi-family/condo users 0.8 EDU, and mobile home users 0.6 EDU. Commercial/industrial users are grouped based on their estimated sewage strengths into five classes of users.

Each year 90% of the prior year’s water usage per commercial/industrial customer is used to determine the upcoming year’s sewer service charge (Return to Sewer percentage).

There are a few customers with different Return to Sewer percentages based upon a case by case situation which includes a field inspection and engineering review of the situation.

Units of Service and Loadings FLOW: COD:(A) (B) (C) (D) (E) (F) (G)User GroupNo. of Active CustomersBilling Flow Billing Flow Annual Flow (MG/Year) COD UserAnnual COD LoadSS per User Annual Load(MGD) (HCF) (MG/L) (LBS/YR) (MG/L) (LBS/YR)Single Family5,969 0.9546 541,160.1 348.43 200581,170200581,170Multi-family/Condo8,293 2.2238 1,085,130.9 811.68 2001,353,8342001,353,834Mobile Homes365 0.0382 18,651.0 13.95 20023,26920023,269Subtotal- Residential14,6273.2166 1,644,942 1,174.06 1,958,274 1,958,274Commercial - Low1,7930.5038245,846.5183.89 200306,724200306,724Commercial - Medium Low9250.142769,657.352.10 20086,906300130,359Commercial - Medium40.029014,139.010.58 40035,28040035,280Commercial - Medium High190.01768,602.26.43 60032,19750026,831Commercial - High1100.159277,676.058.10 680329,495900436,097Subtotal Non-Residential2,851 0.8524 415,921 311.11 790,602 935,291TOTAL 17,478 4.0690 2,060,863 1,485.17 2,748,876 2,893,564SS:

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The model is using reserves to fund a large part of the CIP and thus the strength based analysis does not completely reflect the actual costs year over year by customer class.

However, based upon treatment costs in FY2030, having all customer classes having the same percentage increase would place an unfair burden on SFR customers. The cost for treatment for commercial customers must be increased a higher percentage to keep the proportions correct.

All classes of users will continue to be billed their annual sewer service charge on the County of San Diego tax roll based on either their EDU classification or their annual water usage and sewage strength category. Table 3-4 compares the current FYE 2025 sewer rates with the proposed FYE 2026 through FYE 2030 of the proposed rate case. The entire output from the rate model showing all steps in the rate case is contained in Appendix A to this Study. Individual years are not revised and reduced or increased exactly because of the use of reserves and rates are never reduced. The goal was to keep increasing the commercial rates with the proportionality correct in FY2030. The final FY2030 rates were within 4% of the calculated proportionality for all commercial classes.

Table 3-4: Proposed Percentage Increases in Rates

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Table 3-5: Comparison of Current Versus Proposed Sewer User Rates

As discussed earlier in this report, the majority of the revenue requirement recovered by the City’s sewer service charges go to pay for cost associated with charge from San Diego Metro. Figure 3-4 summarizes the major components of the proposed FY 2026 monthly single-family sewer service charge of $52.72 per EDU. This figure also shows the use of City reserves to cover City CIP costs:

Figure 3-4 Components of FY 2026 Single Family Monthly Rate

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Figure 3-5 summarizes all San Diego Metro Member Agencies comparative sewer user rates based on 7 HCF of water usage/sewer flow and a residential monthly base fee. It should be noted that the rates shown are those effective January 1, 2025 based upon readily available information. The figure also includes the City’s current monthly rate as well as the proposed FY 2026 rate of $52.72 per EDU per month. The City’s first proposed rate adjustment will not begin until July 1, 2025. Many agencies are in the process of updating their current rate cases. Even with the proposed 5-year rate adjustments National City will still enjoy some of the lowest rates among the users of the San Diego Metro System. The proposed FY 2026 single family rate will be as low as $52.72 which is 15% lower than the existing (FY 2025) average Metro member agency rate of $62.21.

Figure 3-5 Metro Member Agencies Sewer Rate Comparison

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APPENDIX A – RATE MODEL

 Wastewater Operations & Maintenance Budget
 Budget Summary
 Step 1 – Customer Summary and Estimated Flows
 Step 2 – Determination of Unit Costs
 Step 3 – Sewer User Rate Calculations by Fund and Cost

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City of National City
Wastewater Rate Study
Draft Report - January 2025
City of National City
Wastewater Operations & Maintenance Budget
FY24 FY25 FY26 FY27 FY28 FY29 FY30
ACCOUNT - MUNIS Unaudited Actual Proposed 5 6 7 7 7 8 9 125-416-029 ENGINEERING
125-416-029-100 SALARIES
125-85-31-31100-6005- Hourly Wages - - - - - - - 125-85-31-31100-6001- FULL-TIME SALARIES 313,803.94 431,795.00 444,748.85 458,091.32 471,834.05 485,989.08 500,568.75 125-85-31-31100-6102- OVERTIME 4,909.46 - - - - - - 125-85-31-31100-6110- ALLOWANCES & STIPENDS 1,328.40 1,440.00 1,483.20 1,527.70 1,573.53 1,620.73 1,669.35 125-85-31-31100-6120- DIFFERENTIAL PAY 2,993.73 3,415.00 3,517.45 3,622.97 3,731.66 3,843.61 3,958.92 125-85-31-31100-6140- WORKERS' COMPENSATION 11,880.22 44,596.00 45,933.88 47,311.90 48,731.25 50,193.19 51,698.99 125-85-31-31100-6150- HEALTH INSURANCE 34,747.51 48,300.00 49,749.00 51,241.47 52,778.71 54,362.08 55,992.94 125-85-31-31100-6151- LTD INSURANCE 486.81 878.00 904.34 931.47 959.41 988.20 1,017.84 125-85-31-31100-6160- RETIREMENT PLAN CHARGES 71,451.09 106,001.00 109,181.03 112,456.46 115,830.15 119,305.06 122,884.21 125-85-31-31100-6161- MEDICARE 4,838.55 6,261.00 6,448.83 6,642.29 6,841.56 7,046.81 7,258.21 125-85-31-31100-6199- PERSONNEL COMPENSATION 12,090.95 2,000.00 2,060.00 2,121.80 2,185.45 2,251.02 2,318.55 125-416-029-200 MAINTENANCE & OPERATIONS
125-85-31-31100-7226- TRAINING, TRAVEL & SUBSISTENCE - - - - - - - 125-85-31-31100-7299- CONTRACT SERVICES 36,126.34 85,000.00 87,550.00 90,176.50 92,881.80 95,668.25 98,538.30 125-416-052 PUBLIC WORKS - OPERATIONS
125-416-052-200 MAINTENANCE & OPERATIONS
125-416-052-268-0000 RENTALS &LEASES - - - - - - - 125-416-052-400-0000 FIXED CHARGES & DEBT SERVICE - - - - - - - 125-416-052-484-0000 OTHER INTEREST - - - - - - - 125-416-221 STREETS
125-416-221-100 Personnel Services
125-85-31-31300-6005- Hourly Wages 24,673.18 - - - - - - 125-85-31-31300-6001- FULL-TIME SALARIES 289,133.75 176,507.00 181,802.21 187,256.28 192,873.96 198,660.18 204,619.99 125-85-31-31300-6102- OVERTIME 69,243.89 32,000.00 32,960.00 33,948.80 34,967.26 36,016.28 37,096.77 125-85-31-31300-6105- LONGEVITY - 985.00 1,014.55 1,044.99 1,076.34 1,108.63 1,141.88 125-85-31-31300-6120- DIFFERENTIAL PAY 2,009.59 - - - - - - 125-85-31-31300-6140- WORKERS' COMPENSATION 27,278.41 31,887.00 32,843.61 33,828.92 34,843.79 35,889.10 36,965.77 125-85-31-31300-6150- HEALTH INSURANCE 40,198.89 29,303.00 30,182.09 31,087.55 32,020.18 32,980.78 33,970.21 125-85-31-31300-6151- LTD INSURANCE 231.13 366.00 395.28 426.90 461.05 497.94 537.77 125-85-31-31300-6160- RETIREMENT PLAN CHARGES 78,569.01 43,331.00 44,630.93 45,969.86 47,348.95 48,769.42 50,232.50 125-85-31-31300-6161- MEDICARE 5,576.02 2,559.00 2,635.77 2,714.84 2,796.29 2,880.18 2,966.58 125-85-31-31300-6199- PERSONNEL COMPENSATION - 3,000.00 3,090.00 3,182.70 3,278.18 3,376.53 3,477.82 125-416-221-000 Other Financing Uses
125-10-19-19100-8999- TRANSFERS TO OTHER FUNDS - 1,136,300.00 - - - - 125-416-222 SEWER SERVICE
125-416-222-000 Other Financing Uses
125-85-31-31400-8999- TRANSFERS TO OTHER FUNDS - - - - - - - 125-416-222-100 Personnel Services
Wastewater Operations and Maintenance Budget - 1 of 3 Page 220 of 310 City of National City
Wastewater Rate Study
Draft Report - January 2025
City of National City
Wastewater Operations & Maintenance Budget
FY24 FY25 FY26 FY27 FY28 FY29 FY30
125-85-31-31400-6001- FULL-TIME SALARIES 93,523.11 508,334.00 523,584.02 539,291.54 555,470.29 572,134.40 589,298.43 125-85-31-31400-6102- OVERTIME 37,989.83 - - - - - - 125-85-31-31400-6105- LONGEVITY - - - - - - - 125-416-222-110-0000 ALLOWANCES & STIPENDS - - - - - - - 125-85-31-31400-6120- DIFFERENTIAL PAY 4,819.35 - - - - - - 125-85-31-31400-6140- WORKERS' COMPENSATION 10,920.15 44,833.00 46,177.99 47,563.33 48,990.23 50,459.94 51,973.73 125-85-31-31400-6150- HEALTH INSURANCE 14,193.18 87,358.00 89,978.74 92,678.10 95,458.45 98,322.20 101,271.86 125-85-31-31400-6151- LTD INSURANCE - - - - - - - 125-416-222-159-0000 DEFERRED COMPENSATION - - - - - - - 125-85-31-31400-6160- RETIREMENT PLAN CHARGES 24,451.14 124,791.00 128,534.73 132,390.77 136,362.50 140,453.37 144,666.97 125-85-31-31400-6161- MEDICARE 1,923.50 7,371.00 7,592.13 7,819.89 8,054.49 8,296.13 8,545.01 125-85-31-31400-6199- PERSONNEL COMPENSATION - 8,600.00 8,858.00 9,123.74 9,397.45 9,679.38 9,969.76 125-416-222-200 Maintenance & Operations
125-416-222-200-0000 Maintenance & Operations -
125-85-31-31400-7211- LAUNDRY & CLEANING SERVICES - - - - - - - 125-416-222-213-0000 PROFESSIONAL SERVICES 54,546.35 100,000.00 103,000.00 106,090.00 109,272.70 112,550.88 115,927.41 125-85-31-31400-7222- MEMBERSHIPS AND SUBSCRIPTIONS 1,264.80 76,127.00 78,410.81 80,763.13 83,186.03 85,681.61 88,252.06 125-85-31-31400-7226- TRAINING, TRAVEL & SUBSISTENCE 1,809.00 7,000.00 7,210.00 7,426.30 7,649.09 7,878.56 8,114.92 125-85-31-31400-7234- ELECTRICITY & GAS 7,309.50 6,000.00 6,180.00 6,365.40 6,556.36 6,753.05 6,955.64 125-85-31-31400-7236- WATER 3,207.19 3,000.00 3,090.00 3,182.70 3,278.18 3,376.53 3,477.82 125-85-31-31400-7268- RENTALS & LEASES - 500.00 515.00 530.45 546.36 562.75 579.64 125-85-31-31400-7272- SEWAGE TRANS. & TREATMENT (Utilities Inflation)6,928,614.20 7,651,673.36 7,948,280.00 8,200,628.40 8,203,047.25 8,205,538.67 8,378,104.83 125-85-31-31400-7291- R & M - AUDIO VISUAL EQUIPT. 2,297.99 5,000.00 5,150.00 5,304.50 5,463.64 5,627.54 5,796.37 125-85-31-31400-7299- CONTRACT SERVICES 32,698.97 30,000.00 30,900.00 31,827.00 32,781.81 33,765.26 34,778.22 125-85-31-31400-7318- WEARING APPAREL 8,688.61 7,000.00 7,210.00 7,426.30 7,649.09 7,878.56 8,114.92 125-416-222-329-0000 PAINTING SUPPLIES - - - - - - - 125-85-31-31400-7337- SMALL TOOLS 873.63 30,000.00 30,900.00 31,827.00 32,781.81 33,765.26 34,778.22 125-416-222-340-0000 SHOP SUPPLIES - - - - - - - 125-85-31-31400-7346- TRAFFIC CONTROL SUPPLY 528.82 800.00 824.00 848.72 874.18 900.41 927.42 125-85-31-31400-7352- SEWER PIPE & MATERIALS 2,961.02 4,000.00 4,120.00 4,243.60 4,370.91 4,502.04 4,637.10 125-85-31-31400-7354- CHEMICAL PRODUCTS 2,264.27 2,200.00 2,266.00 2,333.98 2,404.00 2,476.12 2,550.40 125-416-222-360-0000 SIDEWALK CURB & GUTTER MATER. - - - - - - - 125-85-31-31400-7399- MATERIALS & SUPPLIES 4,393.43 4,600.00 4,738.00 4,880.14 5,026.54 5,177.34 5,332.66 125-416-222-500 Capital Outlay
125-416-222-511-0000 AUTOMOTIVE EQUIPMENT - - - - - - - 125-416-222-512-0000 AUTOMOTIVE LEASES - - - - - - 125-10-18-18500-7598- CAPITAL IMPROVEMENT PROGRAM 1,597,662.59 3,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 5,000,000.00 4,000,000.00 125-416-222-600 Refunds, Contributions & Special Paymnts 125-85-31-31400-7698- INDIRECT/OVERHEAD COSTS 239, 533.00 239,533.00 246,718.99 254,120.56 261,744.18 269,596.50 277,684.40 125-85-31-31100-3563- Internal Service Charges and Reserves 125-85-31-31400-7740- BUILDING SERVICES CHARGES 20,496.96 23,422.00 24,124.66 24,848.40 25,593.85 26,361.67 27,152.52 125-85-31-31400-7750- VEHICLE SERVICES CHARGES 74,864.04 79,589.00 81,976.67 84,435.97 86,969.05 89,578.12 92,265.46 125-85-31-31400-7752- VEHICLE LEASE CHARGES 21,300.00 33,000.00 35,640.00 38,491.20 41,570.50 44,896.14 48,487.83 125-85-31-31400-7755- INFO. SYSTEMS MAINT. CHARGE 17,550.96 18,022.00 18,562.66 19,119.54 19,693.13 20,283.92 20,892.44 125-416-222-760-0000 OPERATIONS CHARGES - - - - - - - 125-416-222-770-0000 PERSONNEL COMPENSATION CHARGES - - - - - - - Wastewater Operations and Maintenance Budget - 2 of 3 Page 221 of 310 City of National City
Wastewater Rate Study
Draft Report - January 2025
City of National City
Wastewater Operations & Maintenance Budget
FY24 FY25 FY26 FY27 FY28 FY29 FY30
125-85-31-31400-7790- INSURANCE CHARGES 312,263.04 466,139.00 480,123.17 494,526.87 509,362.67 524,643.55 540,382.86 TOTAL SERWER SERVICE FUND - BUDGET 10,554,519.50 14,754,816.36 17,005,796.59 17,351,672.25 17,450,568.32 16,552,586.95 15,827,834.26 - -
- -
- -
Wastewater Operations and Maintenance Budget - 3 of 3 Page 222 of 310 City of National City
Wastewater Rate Study
Draft Report - January 2025
City of National City
Budget Summary
Scenario 1: $2-6 Million CIP Per Year
Expense Description FY24 FY25 FY26 FY27 FY28 FY29 FY30
125-416-029 ENGINEERING
125-416-029-100 Salaries 458,531 $ 644,686 $ 664,027 $ 683,947 $ 704,466 $ 725,600 $ 747,368 $ 125-416-029-200 Maintenance & Operations 36 ,126 $ 85,000 $ 87,550 $ 90,177 $ 92,882 $ 95,668 $ 98,538 $ 125-416-052 PUBLIC WORKS - OPERATIONS
125-416-052-200 Maintenance & Operations -$ -$ -$ -$ -$ -$ -$ 125-416-221 STREETS
125-416-221-000 Other Financing uses - $ 1,136,300 $ - $ - $ - $ - $ - $ 125-416-221-100 Personnel Services 536,914 $ 319,938 $ 329,554 $ 339,461 $ 349,666 $ 360,179 $ 371,009 $ 125-416-222 SEWER SERVICE
125-416-222-000 Other Financing Uses - $ - $ - $ - $ - $ - $ - $ 125-416-222-100 Personnel Services 187,820 $ 781,287 $ 804,726 $ 828,867 $ 853,733 $ 879,345 $ 905,726 $ 125-416-222-200 Maintenance & Operations 12 2,844 $ 276,227 $ 284,514 $ 293,049 $ 301,841 $ 310,896 $ 320,223 $ 125-416-222-272-0000 Sewage Trans. & Treatment 6,928,614 $ 7,651,673 $ 7,948,280 $ 8,200,628 $ 8,203,047 $ 8,205,539 $ 8,378,105 $ -$ - $ - $ - $ - $ - $ - $ -$ - $ - $ - $ - $ - $ - $ -$ - $ - $ - $ - $ - $ - $ -$ - $ - $ - $ - $ - $ - $ 125-416-222-500 Capital Outlay
Other Capital Outlay - $ - $ - $ - $ - $ - $ - $ Collection System CIP 1,597,663 $ 3,000,000 $ 6,000,000 $ 6,000,000 $ 6,000,000 $ 5,000,000 $ 4,000,000 $ 125-416-222-600 Refunds, Contributions & Special Payments 239,533 $ 239,533 $ 246,719 $ 254,121 $ 261,744 $ 269,597 $ 277,684 $ 125-416-222-700 Internal Service Charges and Reserves 446,475 $ 620,172 $ 640,427 $ 661,422 $ 683,189 $ 705,763 $ 729,181 $ Plus/Minus Reserves Collection
Plus/Minus Reserves Metro
Subtotal Expenditures 10,554,520 $ 14,754,816 $ 17,005,797 $ 17,351,672 $ 17,450,568 $ 16,552,587 $ 15,827,834 $ W/Current Budget and Straight Inflation 10,554,520 $ 14,754,816 $ 17,005,797 $ 17,351,672 $ 17,450,568 $ 16,552,587 $ 15,827,834 $ Budget Summary - 1 of 1 Page 223 of 310
City of National City
Wastewater Rate Study
Draft Report - January 2025
City of National City
FY 2025 Base Year
Step 1 -- Customer Summary and Estimated Flows
Units of Service and Loadings FLOW: COD:
(A) (B) (C) (D) (E) (F) (G)
User Group No. of Active
Customers Billing Flow Billing Flow Annual Flow
(MG/Year) COD User Annual COD
Load SS per User Annual Load
(MGD) (HCF) (MG/L) (LBS/YR) (MG/L) (LBS/YR)
Single Family 5,969 0.9546 541,160.1 348.43 200 581,170 200 581,170 Multi-family/Condo 8,293 2.2238 1,085,130.9 811.68 200 1,353,834 200 1,353,834 Mobile Homes 365 0.0382 18,651.0 13.95 200 23,269 200 23,269 Subtotal- Residential 14,627 3.2166 1,644,942 1,174.06 1,958,274 1,958,274 Commercial - Low 1,793 0.5038 245,846.5 183.89 200 306,724 200 306,724 Commercial - Medium Low 925 0.1427 69,657.3 52.10 200 86,906 300 130,359 Commercial - Medium 4 0.0290 14,139.0 10.58 400 35,280 400 35,280 Commercial - Medium High 19 0.0176 8,602.2 6.43 600 32,197 500 26,831 Commercial - High 110 0.1592 77,676.0 58.10 680 329,495 900 436,097 Subtotal Non-Residential 2,851 0.8524 415,921 311.11 790,602 935,291 TOTAL 17,478 4.0690 2,060,863 1,485.17 2,748,876 2,893,564 SS:

Step 1 - 1 of 1Page 224 of 310
City of National City
Wastewater Rate Study
Draft Report - January 2025
City of National City
FY 2025 Base Year
Step 2 -- Determination of Unit Costs
Metro Cost Projections
FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30
Cost Category
Parameter
Allocation
Percentages
Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost

1. Collection System Volume Related Costs 1,563,062 $ 1,795,128 $ 3,625,905 $ 7,103,143 $ 9,057,517 $ 9,151,044 $ 9,247,521 $ 8,347,048 $ 7,449,729 $ Annual Flow (MG) 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 Unit Cost ($ /MG) 1,052.44 $ 1,208.70 $ 2,441.40 $ 4,782.71 $ 6,098.63 $ 6,161.60 $ 6,226.56 $ 5,620.25 $ 5,016.07 $

2. Sewage Treatment & Transportation Costs: Metro Blend Projections 6,109,203 $ 7,198,480 $ 6,928,614 $ 7,651,673 $ 7,948,280 $ 8,200,628 $ 8,203,047 $ 8,205,539 $ 8,378,105 $ Parameter
Cost Per Parameter Allocation %'s*
Flow (MG)

50.8% 3,103,475 3,656,828 3,519,736 3,887,050 4,037,726 4,165,919 4,167,148 4,168,414 4,256,077 COD (LBS.) 23.1% 1,411,226 1,662,849 1,600,510 1,767,537 1,836,053 1,894,345 1,894,904 1,895,479 1,935,342 SS (LBS.) 26.1% 1,594,502 1,878,803 1,808,368 1,997,087 2,074,501 2,140,364 2,140,995 2,141,646 2,186,685 100.0%
Annual Flow (MG) 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 Pounds of COD (lbs) 2,748,876 2,748,876 2,748,876 2,748,876 2,748,876 2,748,876 2,748,876 2,748,876 2,748,876 Pounds of SS (lbs) 2,893,564 2,893,564 2,893,564 2,893,564 2,893,564 2,893,564 2,893,564 2,893,564 2,893,564 Unit Cost ($ / HCF) 2,089.64 $ 2,462.22 $ 2,369.92 $ 2,617.24 $ 2,718.69 $ 2,805.01 $ 2,805.83 $ 2,806.69 $ 2,865.71 $ Unit Cost ($ / COD lb) 0.51 $ 0.60 $ 0.58 $ 0.64 $ 0.67 $ 0.69 $ 0.69 $ 0.69 $ 0.70 $ Unit Cost ($ / SS lb) 0.55$ 0.65$ 0.62$ 0.69$ 0.72$ 0.74$ 0.74$ 0.74$ 0.76$ Total Revenue Requirement For Rates 7,672,265 $ 8,993,608 $ 10,554,520 $ 14,754,816 $ 17,005,797 $ 17,351,672 $ 17,450,568 $ 16,552,587 $ 15,827,834 $ Check - - - - - - - - - Step 2 - 1 of 1

Page 225 of 310 ends

City of National City
Wastewater Rate Study
Draft Report - January 2025
FY26 Volume (Flow)
Flow COD SS
Unit Cost Unit Cost Unit Cost Unit Cost
No. of EDUs Annual Flow
COD
Annual Load
SS
Annual Load ($/MG) ($/MG) ($/lb.) ($/lb.)
User Group
(MG) (lbs) (lbs) $ 6,098.63 $ 2,718.69 $ 0.67 $ 0.72 Total Annual
Revenue
Required
Monthly
Flat Rate
with no
reserves
Rate
Per HCF
Single Family 5,969 348.43 581,170 581,170 2,124,975 $ 947,287 $ 388,180 $ 416,662 $ 3,877,104 $ 54.13 $ Multi-family/Condo 8,293 811.68 1,353,834 1,353,834 4,950,122 $ 2,206,702 $ 904,264 $ 970,613 $ 9,031,701 $ 90.76 $ Mobile Homes 365 13.95 23,269 23,269 85,082 $ 37,928 $ 15,542 $ 16,683 $ 155,235 $ 35.44 $ Subtotal- Residential 14,627 1,174.06 1,958,274 1,958,274 7,160,179 $ 3,191,917 $ 1,307,987 $ 1,403,957 $ 13,064,040 $ Commercial - Low 1,793 183.89 306,724 306,724 1,121,496 $ 499,949 $ 204,870 $ 219,901 $ 2,046,216 $ 8.32 $ Commercial - Medium Low 925 52.10 86,906 130,359 317,761 $ 141,654 $ 58,047 $ 93,459 $ 610,921 $ 8.77 $ Commercial - Medium 4 10.58 35,280 35,280 64,499 $ 28,753 $ 23,565 $ 25,294 $ 142,110 $ 10.05 $ Commercial - Medium High 19 6.43 32,197 26,831 39,241 $ 17,493 $ 21,505 $ 19,236 $ 97,476 $ 11.33 $ Commercial - High 110 58.10 329,495 436,097 354,340 $ 157,960 $ 220,079 $ 312,653 $ 1,045,034 $ 13.45 $ Subtotal Non-Residential 2,851 311.11 790,602 935,291 1,897,338 $ 845,809 $ 528,066 $ 670,544 $ 3,941,756 $ Total 17,478 1,485.17 2,748,876 2,893,564 9,057,517$ 4,037,726$ 1,836,053$ 2,074,501$ 17,005,797$ Check (Should = 0) - - - - $ FY27 Volume (Flow)
Flow COD SS
Unit Cost Unit Cost Unit Cost Unit Cost
No. of EDUs Annual Flow
COD
Annual Load
SS
Annual Load ($/MG) ($/MG) ($/lb.) ($/lb.)
User Group
(MG) (lbs) (lbs) $ 6,161.60 $ 2,805.01 $ 0.69 $ 0.74 Total Annual
Revenue
Required
Monthly
Flat Rate
with no
reserves
Rate
Per HCF
Single Family 5,969 348.43 581,170 581,170 2,146,917 $ 977,362 $ 400,504 $ 429,891 $ 3,954,674 $ 55.21 $ Multi-family/Condo 8,293 811.68 1,353,834 1,353,834 5,001,237 $ 2,276,762 $ 932,974 $ 1,001,429 $ 9,212,401 $ 92.57 $ Mobile Homes 365 13.95 23,269 23,269 85,960 $ 39,133 $ 16,036 $ 17,212 $ 158,341 $ 36.15 $ Subtotal- Residential 14,627 1,174.06 1,958,274 1,958,274 7,234,114 $ 3,293,257 $ 1,349,514 $ 1,448,531 $ 13,325,416 $ Commercial - Low 1,793 183.89 306,724 306,724 1,133,077 $ 515,822 $ 211,374 $ 226,883 $ 2,087,155 $ 8.49 $ Commercial - Medium Low 925 52.10 86,906 130,359 321,042 $ 146,151 $ 59,890 $ 96,426 $ 623,509 $ 8.95 $ Commercial - Medium 4 10.58 35,280 35,280 65,165 $ 29,666 $ 24,313 $ 26,097 $ 145,240 $ 10.27 $ Commercial - Medium High 19 6.43 32,197 26,831 39,646 $ 18,049 $ 22,188 $ 19,847 $ 99,730 $ 11.59 $ Commercial - High 110 58.10 329,495 436,097 357,999 $ 162,976 $ 227,067 $ 322,580 $ 1,070,621 $ 13.78 $ Subtotal Non-Residential 2,851 311.11 790,602 935,291 1,916,930 $ 872,663 $ 544,831 $ 691,833 $ 4,026,256 $ Total 17,478 1,485.17 2,748,876 2,893,564 9,151,044$ 4,165,919$ 1,894,345$ 2,140,364$ 17,351,672$ Check (Should = 0) - - $
Strength (Treatment) Rates
Strength (Treatment) Rates
Step 3 - 1 of 3Page 226 of 310
City of National City
Wastewater Rate Study
Draft Report - January 2025
FY28 Volume (Flow)
Flow COD SS
Unit Cost Unit Cost Unit Cost Unit Cost
No. of EDUs Annual Flow
COD
Annual Load
SS
Annual Load ($/MG) ($/MG) ($/lb.) ($/lb.)
User Group
(MG) (lbs) (lbs) $ 6,226.56 $ 2,805.83 $ 0.69 $ 0.74 Total Annual
Revenue
Required
Monthly
Flat Rate
with no
reserves
Rate
Per HCF
Single Family 5,969 348.43 581,170 581,170 2,169,552 $ 977,650 $ 400,623 $ 430,017 $ 3,977,842 $ 55.53 $ Multi-family/Condo 8,293 811.68 1,353,834 1,353,834 5,053,964 $ 2,277,434 $ 933,249 $ 1,001,724 $ 9,266,370 $ 93.11 $ Mobile Homes 365 13.95 23,269 23,269 86,866 $ 39,144 $ 16,040 $ 17,217 $ 159,268 $ 36.36 $ Subtotal- Residential 14,627 1,174.06 1,958,274 1,958,274 7,310,382 $ 3,294,228 $ 1,349,912 $ 1,448,959 $ 13,403,481 $ Commercial - Low 1,793 183.89 306,724 306,724 1,145,023 $ 515,974 $ 211,436 $ 226,950 $ 2,099,382 $ 8.54 $ Commercial - Medium Low 925 52.10 86,906 130,359 324,427 $ 146,194 $ 59,908 $ 96,455 $ 626,983 $ 9.00 $ Commercial - Medium 4 10.58 35,280 35,280 65,852 $ 29,674 $ 24,320 $ 26,104 $ 145,951 $ 10.32 $ Commercial - Medium High 19 6.43 32,197 26,831 40,064 $ 18,054 $ 22,195 $ 19,853 $ 100,166 $ 11.64 $ Commercial - High 110 58.10 329,495 436,097 361,774 $ 163,024 $ 227,133 $ 322,675 $ 1,074,606 $ 13.83 $ Subtotal Non-Residential 2,851 311.11 790,602 935,291 1,937,139 $ 872,920 $ 544,992 $ 692,037 $ 4,047,088 $ Total 17,478 1,485.17 2,748,876 2,893,564 9,247,521$ 4,167,148$ 1,894,904$ 2,140,995$ 17,450,568$ Check (Should = 0) - - $
FY29 Volume (Flow)
Flow COD SS
Unit Cost Unit Cost Unit Cost Unit Cost
No. of EDUs Annual Flow
COD
Annual Load
SS
Annual Load ($/MG) ($/MG) ($/lb.) ($/lb.)
User Group
(MG) (lbs) (lbs) $ 5,620.25 $ 2,806.69 $ 0.69 $ 0.74 Total Annual
Revenue
Required
Monthly
Flat Rate
with no
reserves
Rate
Per HCF
Single Family 5,969 348.43 581,170 581,170 1,958,293 $ 977,947 $ 400,744 $ 430,148 $ 3,767,132 $ 52.59 $ Multi-family/Condo 8,293 811.68 1,353,834 1,353,834 4,561,837 $ 2,278,125 $ 933,532 $ 1,002,028 $ 8,775,522 $ 88.18 $ Mobile Homes 365 13.95 23,269 23,269 78,408 $ 39,156 $ 16,045 $ 17,223 $ 150,832 $ 34.44 $ Subtotal- Residential 14,627 1,174.06 1,958,274 1,958,274 6,598,537 $ 3,295,229 $ 1,350,322 $ 1,449,399 $ 12,693,486 $ Commercial - Low 1,793 183.89 306,724 306,724 1,033,527 $ 516,130 $ 211,500 $ 227,019 $ 1,988,176 $ 8.09 $ Commercial - Medium Low 925 52.10 86,906 130,359 292,836 $ 146,239 $ 59,926 $ 96,484 $ 595,484 $ 8.55 $ Commercial - Medium 4 10.58 35,280 35,280 59,440 $ 29,683 $ 24,327 $ 26,112 $ 139,563 $ 9.87 $ Commercial - Medium High 19 6.43 32,197 26,831 36,163 $ 18,059 $ 22,201 $ 19,859 $ 96,283 $ 11.19 $ Commercial - High 110 58.10 329,495 436,097 326,546 $ 163,073 $ 227,202 $ 322,773 $ 1,039,595 $ 13.38 $ Subtotal Non-Residential 2,851 311.11 790,602 935,291 1,748,511 $ 873,185 $ 545,157 $ 692,247 $ 3,859,101 $ Total 17,478 1,485.17 2,748,876 2,893,564 8,347,048$ 4,168,414$ 1,895,479$ 2,141,646$ 16,552,587$ Check (Should = 0) - - $
Strength (Treatment) Rates
Strength (Treatment) Rates
Step 3 - 2 of 3Page 227 of 310
City of National City
Wastewater Rate Study
Draft Report - January 2025
FY30 Volume (Flow)
Flow COD SS
Unit Cost Unit Cost Unit Cost Unit Cost
No. of EDUs Annual Flow
COD
Annual Load
SS
Annual Load ($/MG) ($/MG) ($/lb.) ($/lb.)
User Group
(MG) (lbs) (lbs) $ 5,016.07 $ 2,865.71 $ 0.70 $ 0.76 Total Annual
Revenue
Required
Monthly
Flat Rate
with no
reserves
Rate
Per HCF
Single Family 5,969 348.43 581,170 581,170 1,747,774 $ 998,514 $ 409,172 $ 439,194 $ 3,594,654 $ 50.19 $ Multi-family/Condo 8,293 811.68 1,353,834 1,353,834 4,071,433 $ 2,326,035 $ 953,165 $ 1,023,101 $ 8,373,735 $ 84.14 $ mobile homes 365 13.95 23,269 23,269 69,979 $ 39,979 $ 16,383 $ 17,585 $ 143,926 $ 32.86 $ Subtotal- Residential 14,627 1,174.06 1,958,274 1,958,274 5,889,185 $ 3,364,529 $ 1,378,720 $ 1,479,880 $ 12,112,314 $ Commercial - Low 1,793 183.89 306,724 306,724 922,421 $ 526,985 $ 215,948 $ 231,793 $ 1,897,147 $ 7.72 $ Commercial - Medium Low 925 52.10 86,906 130,359 261,356 $ 149,314 $ 61,186 $ 98,513 $ 570,369 $ 8.19 $ Commercial - Medium 4 10.58 35,280 35,280 53,050 $ 30,308 $ 24,839 $ 26,662 $ 134,858 $ 9.54 $ Commercial - Medium High 19 6.43 32,197 26,831 32,276 $ 18,439 $ 22,668 $ 20,276 $ 93,659 $ 10.89 $ Commercial - High 110 58.10 329,495 436,097 291,442 $ 166,503 $ 231,981 $ 329,561 $ 1,019,486 $ 13.12 $ Subtotal Non-Residential 2,851 311.11 790,602 935,291 1,560,544 $ 891,549 $ 556,622 $ 706,805 $ 3,715,520 $ Total 17,478 1,485.17 2,748,876 2,893,564 7,449,729$ 4,256,077$ 1,935,342$ 2,186,685$ 15,827,834$ Check (Should = 0) - - $
Strength (Treatment) Rates
Step 3 - 3 of 3Page 228 of 310
TITLE: Maintenance of Reserve Funds POLICY #201

ADOPTED: June 26, 1985 AMENDED: May March 4, 20212025

Page 1 of 4 ends

Purpose

The purpose of this policy is to ensure the City’s ability to withstand unexpected financial emergencies such as those that may result from natural disasters, revenue shortfalls, or unanticipated expenditures of a non- recurring nature , and to accumulate funds for large -scale purchases.

Policy

The City will accumulate and maintain reserves in the categories and at the target levels described below. The actual amount of any of the reserves may exceed its target level because any additional amounts would increase the financial security of the City.

• GENERAL FUND ECONOMIC CONTINGENCY RESERVE: an amount equal to twenty percent ( 20%) of a single year’s budgeted General Fund operating expenditures. “Operating expenditures” shall be defined as all expenditures, except those of a capital nature, plus operating subsidies provided to the Library Fund, Parks Fund, and Personnel Compensation Fund (OPEB benefits payments), or to any other fund as determined by the City Council. Formal City Council action is required to increase the balance in the reserve or to authorize the use of any portion of its balance. This reserve is intended to be used in the event of a catastrophic event or significant downturn in the economy that cannot be mitigated with other funding sources.

• GENERAL FUND UNASSIGNED FUND BALANCE: an amount equal to ten percent (10%) of a single year’s budgeted General Fund operating expenditures. The general fund unassigned fund balance is determined annually as part of the preparation of the City’s Comprehensive Annual Financial Report (CAFR). Amounts in excess of the target level will be used to increase or replenish other reserves (with priority given to the Eco nomic Contingency and Facilities Maintenance reserves), to set aside resources for specific one-time uses, or as a funding source for one -time expenditures included in the annual budget or for needs that arise subsequent to budget adoption.

• GENERAL FUND FACILITIES MAINTENANCE RESERVE: an amount equal to three times the annual amount budgeted to provide major maintenance for the City’s building assets. “Building assets” shall be defined as all permanent or nonpermanent structures constructed or installed to provide a workplace for City employees or house City assets and/or operations .

The annual amount to be budgeted for major maintenance projects is 1.5% of the City’s General Fund operating budget. Formal City Council action is required to increase the balance in the reserve or to authorize the use of any portion of its balance. This reserve is to be used

Page 229 of 310 ends

TITLE: Maintenance of Reserve Funds POLICY #201

ADOPTED: June 26, 1985 AMENDED: May March 4, 20212025

Page 2 of 4 ends

for extraordinary ma jor maintenance costs that cannot be met within the annual budgeted amount and for which no other funding source is available.

• GAS TAXES FUND CONTINGENCY RESERVE: an amount equal to a minimum of five percent (5%) of the estimated annual revenue of the Gas Taxes Fund.

• SEWER SERVICE FUND OPERATIONS / CASH FLOW RESERVE: an amount equal to between twenty -five percent (25%) and at least fifty percent (50%) of a single year’s budgeted Sewer Service Fund operating expenditures.

• SEWER SERVICE FUND METRO CASH FLOW RESERVE: an amount equal to the City’s estimated portion of the projected cash needs for capital costs of the San Diego Metropolitan Sewerage System’s wastewater treatment program . This amount is assumed to be $850,000 for fiscal year 2025-26 through fiscal year 2029-30. • SEWER SERVICE FUND CAPITAL REPLACEMENT RESERVE: an amount equal to between ten percent (10%) and fifteen percent (15%) of a single year’s budgeted Sewer Service Fund operating expendituresuser fees.

• SEWER SERVICE FUND CAPITAL EXPANSION RESERVE: an amount equal to between ten percent (10%) and fifteen percent (15%) of a single year’s budgeted Sewer Service Fund operating expendituresuser fees.

• SEWER SERVICE FUND EMERGENCY / NATURAL DISASTER RESERVE: an amount equal to a minimum of fifteen percent (15%) of a single year’s budgeted Sewer Service Fund operating expenditures, including both operational and capit al improvement program costs.

• GENERAL LIABILITY INSURANCE RESERVE : an amount of assets in the Liability Insurance Fund (an internal service fund) sufficient to meet the eighty percent (80% ) confidence level of adequacy for net claims liability as updated annually by the City’s actuary.

The reserve level requirements will be reviewed as part o f the annual budget process whereupon internal service fund charges will be set such that anticipated expenditures for the budget year can be met and the reserve level maintained.

• WORKERS’ COMPENSATION RESERVE: an amount of assets in the Liability Insurance Fund (an internal service fund) sufficient to meet the eighty percent (80%) confidence level of adequacy for net claims liability as updated annually by the City’s actuary. The reserve level requirements will be reviewed as part of the annual budget process whereupon internal service

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TITLE: Maintenance of Reserve Funds POLICY #201

ADOPTED: June 26, 1985 AMENDED: May March 4, 20212025

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fund charges will be set such that anticipated expenditures for the budget year can be met and the reserve level maintained.

• IRREVOCABLE SUPPLEMENTAL PENSION TRUST RESERVE: an amount equal to two years of unfunded liability payments as determined by the most current CalPERS valuation reports for both the Safety and Miscellaneous plans . The assets of this reserve are held in an irrevocable Section 115 pension trust that may be used only for pension related costs and upon direction of the City Council. Investment earnings on the assets in the trust will be the primary vehicle for reaching the target level of reserves, although periodic contributions may be made from other sources upon direction of the City Council . Once the target level is reached, the earnings on the assets in the trust may be used to fund a portion of the City’s pension related payments to CalPERS. This target will be reevaluated should the City issue pension obligation bonds.

• IRREVOCABLE OTHER POST-EMPLOYMENT BENEFITS TRUST RESERVE: an amount equal to eighty percent (80%) of the total net other post-employment benefits (OPEB) liability of the City’s OPEB plan. Under the plan, the City provides payments to City retirees to be used towards medical insurance premiums. The City’s net OPEB liability is updated annually and reported in the City’s CAFR. The assets of this reserve are held in an irrevocable Section 115 OPEB trust that may be used only for the City’s OPEB plan and upon direction of the City Council. Investment earnings on the assets in the trust will be the primary vehicle for reaching the target level of reserves, although periodic contributions may be made from other sources upon direction of the City Council. Once the assets in the trust reach the target level, the earnings on the assets may be used to offset a portion of the OPEB plan benefits that are routinely annually budgeted and paid for using other resources of the general fund.

• VEHICLE REPLACEMENT RESERVE: an amount equal to thirty percent (30%) of the recorded (book) value of the motor vehicles and associated assets accounted for in the Vehicle Replacement Fund (an internal service fund) . Internal service fund charges to benefitting departments provide the mechanism for building the reserves in the fund. The charges take into account the initial acquisition cost of the assets, their expected years of service, and the estimated cost to replace them at that the end of their useful life. Once the target level is reached, the adequacy of the reserve with respect to the status of the fleet should be reevaluated along with the formula used for developing the ISF charges.

The status of each reserve shall be reviewed each year by the City Manager as part of the budgeting process. The City Manager shall take into account the most recently completed CAF R and any other pertinent data and make recommendations to the City Council regarding any adjustments to reserve levels; however, nothing in this policy shall prevent determining or reporting on the level of any of the reserves at other times during the year.

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TITLE: Maintenance of Reserve Funds POLICY #201

ADOPTED: June 26, 1985 AMENDED: May March 4, 20212025

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Replenishment of Reserves

If a reserve balance falls below the targeted level, the City shall strive to restore it to the targeted level through budgetary or other means according to the following guidelines:

• If a reserve is drawn down to 75-99% of its targeted balance, it shall be restored to 100% over a 1 to 3 year period.
• If a reserve is drawn down to 50-74% of its targeted balance, it shall be restored to 100% over a 3 to 5 year period.
• If a reserve is drawn down below 50% of its targeted balance, it shall be restored to 100% over a 5 to 7 year period.

These guidelines may be suspended, in whole or in part, if financial or economic circumstances prevent meeting any or all of the timelines.

Related Policy References

None

Prior Policy Amendments

May 4, 2021
September 17, 2019
November 21, 2017
June 7, 2016
October 7, 2014
December 10, 2013
March 12, 2002

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RESOLUTION NO. 2025 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, 1) ACCEPTING THE SEWER RATE STUDY; 2) APPROVING REVISIONS TO POLICY NO. 201, MAINTENANCE OF RESERVE FUNDS ; AND 3) SCHEDULING A PUBLIC HEARING AND

DIRECTING STAFF TO MAIL OUT A NOTICE OF PUBLIC HEARING AS REQUIRED BY PROPOSITION 218.

WHEREAS, the City of National City (“City”) provides wastewater service to more than 17,000 customers within the incorporated area of the City, and owns and operates approximately 100 miles of sewer pipeline, 2,000 manholes, and two lift stations; and WHEREAS, the City collects and conveys wastewater flows originating from residential and commercial properties within the City, and connects to the Ci ty of San Diego Metropolitan Wastewater System (“Metro”) to ultimately arrive at San Diego’s Point Loma Treatment Plant for treatment and disposal; and
WHEREAS, the City endeavors to operate the sewage system in a safe and efficient manner while meeting the needs of its customers as well as all State and Federal regulatory requirements, including, but not limited to, State Wastewater Discharge Requirements imposed by the California State Water Resources Control Board , and others by the U.S. Environmental Protection Agency; and
WHEREAS, on December 19, 2017, City Council adopted Ordinance No. 2017 -2442 establishing sewer service charges for five years from Fiscal Year ( “FY”) 2018 (2017 -2018) through FY 2023, in compliance with the Proposition 218 process; and

WHEREAS, on June 6, 2023, City Council adopted Ordinance No. 2023 -2521, which amended Ordinance No. 2017-2442 and maintained the sewer service charges with no increase for FY 2023-2024 and FY 2024-2025; and
WHEREAS, in th e fall of 2024, the City retained Ardurra Group, Inc. (“Ardurra”) to complete a full Sewer Rate Study report through a review of expected revenue and expenditures for the next five fiscal years (the “Study”); and
WHEREAS, Ardurra completed the Study and noted key elements of the system’s needs, including justifying current reserves due to many costs that will occur over the next few years , some for which the final fiscal impact is still unknown; recognizing that i nflation is affecting the City’s Capital Improvement Program (CIP) costs and that c onstruction costs are still vastly outpacing inflation; noting that significant CIPs have been identified through recent sewer system modeling and investigation and that other improvements may be needed in the aging system based on a comprehensive CCTV evaluation of the pipes in the system; that small rate increases will help revenue keep up with inflation while a focus on CIP projects will draw down reserves ; and recommending a pass -through of wholesale cos ts from Metro as allowed by Government Code section 53756; and

WHEREAS, based on cost of service and projected revenue requirements as set forth in the Study, the City proposes new sewer service charges; and

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WHEREAS, based on a monthly sewer rate comparison of other participating agencies of the Metro system, the City’s proposed sewer rates would still be among the lowest sewer rates , even with the proposed rate increase; and
WHEREAS, the Study recommends minor changes to the City’s current reserve policy, Policy No. 201, Maintenance of Reserve Funds, to reflect modifications to reserves related to the sewer fund based on the findings and recommendations of the Study; and WHEREAS, pursuant to the requirements of Propos ition 218, the City must hold and provide notice of a Public Hearing to receive input as it considers a rate adjustment for sewer service charges to City residences and businesses.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1: That the City Council hereby accepts the Sewer Rate Study attached to the Agenda Report as Exhibit B.

Section 2: That the City Council hereby schedules a public hearing on May 6, 2025 and directs staff to mail out a Notice of Public Hearing, both as required by Proposition 218.

Section 3: That the City Council hereby approves revisions to Policy No. 201, Maintenance of Reserve Funds, as set forth in Exhibit C to the Agenda Report.

Section 4: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED and ADOPTED this 4th day of March, 2025.

Ron Morrison, Mayor

ATTEST:

Shelley Chapel, MMC, City Clerk

APPROVED AS TO FORM:

Barry J. Schultz, City Attorney

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AGENDA REPORT

Department: Planning
Prepared by: Martin Reeder, AICP – Asst. Director of Community Development Meeting Date: Tuesday, March 4, 2025
Approved by: Benjamin A. Martinez, City Manager

SUBJECT:

Staff Report on the Establishment of a Tobacco Retail License Program.

RECOMMENDATION:

Consider Staff Report and Give Direction to Staff on the Inclusion of a Tobacco Retail Program within NCMC § 9.38 ( Restricting the Sale, Display, and Promotion of Tobacco Products or Cigarettes to Minors).

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

At the meeting of January 21, 2025, the City Council directed staff per a Policy 105 request to consider development of an Ordinance amending Chapter 9.38 to include a Tobacco Retail License program.

Chapter 9.38 of the Municipal Code – Restricting the sale, display, and promotion of tobacco products or cigarettes to minors – was adopted in 2000 and amended in 2003 (Exhibit A). This chapter contains regulations related to product placement within retail locations located within a thousand feet of any school, playground, recreation center or facility, childcare center, or library.

Advertisement of tobacco products within one thousand feet of the same is prohibited. Signage is also required stating that the sale of tobacco products and cigarettes to persons under twenty- one years of age is prohibited by law and subject to penalties.

In addition to the regulations contained in Chapter 9.38, Titl e 18 (Zoning) also contains regulations pertaining to tobacco specialty businesses , defined as a business with more than forty percent of the floor area devoted to the use, display, and/or sales of tobacco products and/or paraphernalia. Chapter 18.30.230 requires a Conditional Use Permit for such a use.

In 2018 the City Council adopted amendments to Chapters 9.37 (Prohibition of Smoking in Open Air Dining Areas), 9.38, and Chapter 10.52 ( Regulations for the use of municipal parks, playgrounds and golf courses). These amendments generally amended definitions of tobacco products to include electronic cigarettes.

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In California, it is illegal for retailers and clerks to sell tobacco products to anyone under the age of 21. This law applies to the sale of traditional tobacco products like cigarettes as well as to the sale of electronic smoking devices like e-cigarettes and tobacco product paraphernalia. There is also a requirement for all retailers that sell electronic smoking devices in California to apply to the California Department of Tax and Fee Administration (CDTFA) for a license. However, this is for taxation purposes. California law also now prohibits the sale of most flavored tobacco products, including e-cigarettes and menthol cigarettes. This law went into effect on December 21, 2022.

This Policy 105 Request was initiated based on communication with The National City For Better Health, in collaboration with SAY San Diego , administrators of the San Diego Smoke -Free Project, which is encouraging adoption of a Tobacco Retail License (TRL) policy. The TRL program is aimed at ensuring local and state tobac co laws are being followed. The intention of the program is for it to be supported through license fees. The main components of a TRL include:

 No new license within a thousand feet of youth-oriented facilities  No new license within a thousand feet of another tobacco retailer  No new license within a thousand feet of a cannabis retailer  Total number of retail licenses limited to one per 2,500 residents  No sales of flavored tobacco products
 Packaging, labeling, and pricing consistent with manufacturer’s spec ifications and applicable federal requirements
 Annual renewable permit
 No transfer of license between location or person
 Compliance monitoring

All other components of the existing Municipal Code sections are maintained in some form in suggested language provided by SAY San Diego (Exhibit B). The license fees would need to be determined and approved by City Council.

Per suggested Ordinance language, all lawfully operating retailers would be “deemed approved” subject to receipt of a Tobacco Retail License and complian ce with basic standards such as; maintenance of license, no cessation of sales for more than 60 days, no substantial change in premises or operation, compliance with other requirements (e.g., state, federal licensing).

Based on an assessment by SAY San Diego, there are 54 existing tobacco retailers in the City.

Based on the one license per 2,500 residents suggestion, only around 22 new licenses would be able to be approved (based on an approximate current population of 55,000). This would mean that, assuming the majority of existing retailers get a license, no new tobacco retail licenses would be permitted without attrition.

Of note is the suggestion for each licensed premises to be checked annually, as well as least two compliance checks (decoy checks) per year. While this is potentially good policy, having an absolute requirement memorialized in an Ordinance may be problemat ic given that the number of existing retailers in the City, which would mean more than one inspection per week. Depending on priorities at the time, the ability to maintain that level of inspection frequency would be dependent on workload and staff positions.

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Other cities in San Diego County that have a tobacco retail license program include Chula Vista, El Cajon, Escondido, Lemon Grove, Oceanside, San Diego, San Marcos, Solana Beach, and Vista. The County of San Diego also has its own program. For purpose s of this report, staff has looked at the Chula Vista and County programs.

The City of Chula Vista program is administered by the Police Department and costs $322 each year. Compliance checks are required every two years. Licensees are required to maintain a California Cigarette and Tobacco Products Retailer’s License in addition to a City business license and Tobacco Retailers Permit. The County of San Diego program costs $730 per year and requires compliance checks, including decoy operations, once a year.

If the City Council opts to create a Tobacco Retail License program, staff suggests a fee closer to that of the County of San Diego ($730), but a compliance schedule (with decoy operations as an optional component dependent on workload and staff levels/priorities) similar to Chula Vista (checks at least once every two years).

FINANCIAL STATEMENT:

Any license program is intended to be paid for by license fees, which would need to be calculated based on expected staff time for implementation and inspection of the program and issued licenses.

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Health, Environment, and Sustainability.

ENVIRONMENTAL REVIEW:

This is not a project under CEQA , and is therefore , not subject to environmental review.

CCR15378; PRC 21065.

PUBLIC NOTIFICATION:

The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act

ORDINANCE:

Not Applicable

EXHIBITS:

Exhibit A – National City Municipal Code Section: Title 9.38 Exhibit B – Sample Ordinance (provided by The National City for Better Health and SAY San Diego) Exhibit C – SAY San Diego PowerPoint Presentation

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Chapter 9.38 RESTRICTING THE SALE, DISPLAY AND PROMOTION OF TOBACCO PRODUCTS OR CIGARETTES TO MINORS

National City, California, Code of Ordinances Created: 2025-01-29 17:25:06 [EST] (Supp. No. 65, Update 1)

Page 1 of 3 ends

Chapter 9.38 RESTRICTING THE SALE, DISPLAY AND PROMOTION OF TOBACCO

PRODUCTS OR CIGARETTES TO MINORS

9.38.010 Purpose and intent.

It is the purpose and intent of the city council to enact regulations further restricting the sale or display of tobacco products and cigarettes in the city to minors, beyond that provided for by state law. Ac cordingly, the city council enacts the following regulations as not preempted by the Federal Cigarette Labeling and Advertising Act, 15 U.S Code Section 1332, et seq.
(Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000)

9.38.020 Definitions.

For purposes of this chapter:
"Advertising display" means a sign, sign-board, billboard, poster, or banner that is temporarily or permanently placed within a building or displayed in the window(s) of a commercial establishment to advertise or promote products. It does not include printed material on the container of a product sold at retail. "Cigarette," as used in this chapter and as defined by 15 U.S. Code Section 1332, means: (A) any roll of tobacco wrapped in paper or in any substance not containing tobacco; and (B) any roll of tob acco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in subparagraph A of this definition.
"Playground" means any outdoor premises or grounds owned or operated by the city, a public or private school, childcare center, or youth or recreational center, that contains any play or athletic equipment used or intended to be used by minors.
"Recreation center or facility" means any recreation center or facility under the control, direction or management of the city.
"School" means any public or private elementary or secondary school, attendance at which satisfies the compulsory education laws of the state of California.
"Self-service display" means an open display of tobacco products to which the public has access without the intervention of an employee.
"Tobacco advertising display" means an advertising display that concerns tobacco products. "Tobacco product" means any substance or product other than cigarettes containing tobacco leaf, including but not limited to cigars, pipe tobacco, snuff, chewing tobacco, and dipping tobacco. "Tobacco retailer" or "tobacco retail store" means any person or business entity that sells any tobacco product or cigarettes and includes an employee of that person or business entity. Any retail establishment selling tobacco products or cigarettes incidental to other merchandise qualifies within this def inition. "Vendor-assisted" means that only a store employee has access to a particular product and assists a customer by supplying the product, and the customer does not take possession of the product until it is purchased. (Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000)

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Created: 2025-01-29 17:25:06 [EST]
(Supp. No. 65, Update 1)

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9.38.030 Measure of distance.

The distance between any tobacco retail store and any school, playgroun d, recreation center of facility, childcare center, or library, shall be measured in a straight line, without regard to intervening structures, from the exterior of the tobacco retail store to the closest property line of the school, playground, recreation center or facility, childcare center, or library.
(Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000)

9.38.040 Restrictions on location of tobacco products and tobacco advertising displays.

A. It is unlawful for any tobacco retailer to place, maintain, or cause to be placed or maintained any tobacco product or tobacco advertising display within two feet of any candy, snack, or nonalcoholic beverage display inside a tobacco retail store located within one thousand feet of any school, playground, recreation center or facility, childcare center or library.

B. Except as allowed in Section 9.38.040(A), it is unlawful for any person to advertise tobacco products within one thousand feet of any school, playground, recreation center or facility, childcare center or library. (Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000)

9.38.050 Exceptions to location of tobacco products and tobacco advertising displays inside retail establishments.

A. Section 9.38.040 does not apply to commercial establishments where access to the premises by persons under twenty-one years of age is prohibited by law.

B. Section 9.38.040A does not apply within any establishment to displays containing tobacco products which are not accessible and visible to patrons, or to displays located above, behind or below a sales counter and which are not accessible to patrons. Any display containing tobacco products shall not be used as an "advertising display" as defined in Section 9.38.020.
(Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000) (Ord. No. 2018-2452, § 4, 12-4-2018)

9.38.060 Self-service sale and distribution of tobacco products—Prohibited.

It is unlawful for any tobacco retailer to sell, permit to be sold, offer for sale, or display for purposes of sale, by means of self-service displays or by any means other than vendor-assisted sales, any tobacco products or cigarettes.
(Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000)

9.38.070 Restrictions on distribution of free tobacco samples, promotional items or cigarettes to minors.

A. It is unlawful for tobacco retailer to distribute free tobacco products or promotional items, except in enclosed areas where minors are not permitted.

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Created: 2025-01-29 17:25:06 [EST]
(Supp. No. 65, Update 1)

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B. It is unlawful for any tobacco retailer to permit or allow a minor to be within six feet of any area or display where cigarettes are distributed free or at reduced cost as part of a promotion. (Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000)

9.38.080 Posting of signs regarding tobacco products and cigarette sales to minors.

A. Every tobacco retailer shall post conspicuously in their place of business at each point of purchase a notice stating that the sale of tobacco products and cigarettes to persons under twenty -one years of age is prohibited by law and subject to penalties, except for United States Armed Forces active duty personnel with military ID who are at least eighteen years of age. The notice shall also state that photo identification is required to purchase tobacco products and cigarettes. The letters of the sign shall be at least one-half inch in height.

B. Any sign meeting the content requirements of California Business and Professional Code Section 22952(b) and regulations promulgated thereunder, and the posting requirements of California Penal Code Section 308(c), satisfies subsection "A" of this section.
(Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000) (Ord. No. 2018-2452, § 5, 12-4-2018)

9.38.090 Extensions for compliance.

A. Any business that needs to make modifications to its business premises or advertising practices in order to comply with Sections 9.38.040, 9.38.060, or 9.38.080 of this chapter must comply within sixty calend ar days after June 30, 2003.

B. Any business owner may apply to the city manager, through the planning director, for a reasonable extension of time within which to comply with Sections 9.38.040, 9.38.060 or 9.38.080 of this chapter, provided that the application for extension is submitted on or before the last day of the sixty-day compliance period.

C. An extension may be granted only for good cause for a maximum of one year from the effective date. "Good cause" means that the extension is necessary to prevent the business from suffering unreasonable financial hardship, or to prevent unreasonable disruption in business operations. (Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000)

9.38.100 Enforcement.

A. Violations of this chapter shall be prosecuted as infractions for the first offense, and may be prosecuted as misdemeanors for subsequent offenses, subject to the penalties provided in Section 1.20.010 of this code. In addition, injunctive relief, civil penalties or administrative remedies provided in Title 1 of this code, may be sought or imposed for violations.

B. This chapter may be enforced by any police officer, building inspector, code conformance officer, business license inspector or fire inspector.
(Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000)

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Exhibit “B” Sample Ordinance

ORDINANCE NO. XXXX-XXXX

AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF NATIONAL CITY
AMENDING TITLE 9 OF THE NATIONAL CITY MUNICIPAL CODE BY AMENDING CHAPTER 9.38

PERTAINING TO TOBACCO RETAILER LICENSE AND RESTRICTING THE SALE,

DISPLAY AND PROMOTION OF TOBACCO TO YOUTH

BE IT ORDAINED by the City Council of the City of National City that the National City Municipal Code is amended as follows:

SECTION 1. That Chapter 9.38 of the National City Municipal Code is amended in its entirety to read as follows:

Chapter 9.38

TOBACCO RETAILER LICENSE AND RESTRICTING THE SALE, DISPLAY AND

PROMOTION OF TOBACCO TO YOUTH

Section 9.38.010 Purpose and intent.

WHEREAS, the City Council of National City hereby finds and declares as follows:

WHEREAS, the City Council finds that a local licensing system for tobacco retailers is appropriate to ensure that retailers comply with commercial tobacco control laws and business standards of the City Council, to protect the health, safety, and welfare of our residents; WHEREAS, approximately 480,000 people die in the United States from smoking-related diseases and exposure to secondhand smoke every year, making commercial tobacco use the nation’s leading cause of preventable death;
2 WHEREAS, the World Health Organization (WHO) estimates that commercial tobacco kills 8 million people and causes over 1.4 trillion dollars in economic damage each year;136 WHEREAS, 5.6 million of today’s Americans who are younger than 18 are projected to die prematurely from a smoking-related illness;2

WHEREAS, commercial tobacco use is the number one cause of preventable death in California 137
and continues to be an urgent public health issue, as evidenced by the following:
• 40,000 California adults die from their own smoking annually;1 • More than 25% of all adult cancer deaths in California are attributable to smoking;138 • Smoking costs California $13.29 billion in annual health care expenses, $3.58 billion in Medicaid costs caused by smoking, and $10.35 billion in smoking-caused productivity losses;139 • Commercial tobacco use can cause disease in nearly all of the organs of the body and is responsible for 87% of lung cancer deaths, 32% of coronary heart disease deaths, and 79% of all cases of chronic obstructive pulmonary disease in the United States; 2 WHEREAS, commercial tobacco use among priority populations in California contributes to health disparities and creates significant barriers to health equity, as evidenced by the following:

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Exhibit “B” Sample Ordinance

• African American (20.4%), Asian or Pacific Islander (11.4%), and Hispanic (15.2%) males all report a higher smoking prevalence than the statewide average among all adults (11.0%);9 • American Indian/Alaska Native Californians have the highest smoking prevalence (19.1%) among all reported adult demographic populations;9 • Smoking is more prevalent among rural (14.9%) compared to urban (10.6%) Californians;9 • Californians with the highest levels of educational attainment and annual household income have the lowest smoking prevalence;9
• Adults who identify as lesbian, gay, bisexual, or transgender report smoking at a higher rate (17.4%) than the statewide average (11.0%);9
• Those who reported experiencing psychological distress in the past month smoke at rates (26.7%) higher than the statewide average (11.0%);
9 WHEREAS, despite the state’s efforts to limit youth access to commercial tobacco, youth are still able to access tobacco products, as evidenced by the following:
• In California, research indicates over 67% of current and former adult smokers started by the age of 18 and almost 100% start by age 26;140
• In California, from 2017 to 2018, approximately 13% of high school students reported using commercial tobacco;9
• Disparities in commercial tobacco use exist among California high school students, with higher rates found among LGBTQ, American Indian, and Pacific Islander youth;9 • Unless smoking rates decline, an estimated 441,000 of all California youth who are alive today will die prematurely from smoking-related diseases;1
• In 2017, 22.8% of high school students in California had tried cigarette smoking;141 • Between 2014 and 2018, electronic smoking device use among California youth increased from

14.1% to 46.2%;8
WHEREAS, the tobacco industry encourages youth and young adult commercial tobacco initiation through predatory targeting,11 as evidenced by the following:
• Tobacco companies target young adults ages 18 to 24 to increase their frequency of commercial tobacco use and encourage their transition to habitual users;66 • Tobacco industry documents state that if “a man has never smoked by the age of 18, the odds are three-to-one he never will. By age 24, the odds are twenty-to-one”;142 • The tobacco industry spends an estimated $496 million annually to market tobacco products to California residents;139
WHEREAS, California retailers continue to sell commercial tobacco to underage consumers, evidenced by the following:
• 9.3% of high school students in California reported buying their own electronic cigarette from a store;
141
• 19.1% of California tobacco retailers unlawfully sold tobacco products to underage persons in 2018;
9 WHEREAS, requiring tobacco retailers to obtain a tobacco retailer license will not unduly burden legitimate business activities of retailers who sell tobacco products to adults but will, however, allow the City Council to regulate the operation of lawful businesses to discourage violations of federal, state, and local commercial tobacco control and youth tobacco access laws, as evidenced by the following:
• Tobacco products are the number one seller in U.S. convenience stores, and in 2018, they generated an average of $595,870 in sales per store;
143
• Systematic scientific reviews indicate that merchant compliance with youth commercial tobacco sales laws reduces the rate of commercial tobacco use among adolescents; 26,27

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Exhibit “B” Sample Ordinance

• Studies found increased retailer compliance and reduced commercial tobacco sales to youth following implementation and active enforcement of youth commercial tobacco sales laws paired with penalties for violations;144,145
• A review of 41 California communities with strong tobacco retailer licensing ordinances found that youth sales rates declined in 40 of these communities after the ordinances were enacted, with an average 69% decrease in the youth sales rate;
25 WHEREAS, the federal Family Smoking Prevention and Tobacco Control Act (“Tobacco Control Act”), enacted in 2009, prohibited candy- and fruit-flavored cigarettes,28 largely because these flavored products are marketed to youth and young adults,26,35,145 and younger smokers were more likely than older smokers to have tried these products;26
WHEREAS, neither federal nor California state laws restrict the sale of menthol cigarettes or flavored non-cigarette tobacco products, such as cigars, cigarillos, smokeless tobacco, hookah tobacco, electronic smoking devices, and the solutions used in these devices; WHEREAS, in 2018, more than 86% of tobacco retailers in California sold flavored non- cigarette tobacco products, over 91% of tobacco retailers sold menthol cigarettes,80 and, as of 2016, 8 out of 10 tobacco retailers near schools sold flavored non-cigarette tobacco products;147 WHEREAS, flavored tobacco products are used by the majority of youth and young adult commercial tobacco users (86.4% and 57.7%, respectively) in California;9 WHEREAS, mentholated and flavored products have been shown to be “starter” products for youth who begin using commercial tobacco26,148,149 and that these products help establish commercial tobacco habits that can lead to long-term addiction;26,150,151 WHEREAS, between 2004 and 2014, use of non-menthol cigarettes decreased among all populations, but overall use of menthol cigarettes increased among young adults (ages 18 to 25) and adults (ages 26+);
30 WHEREAS, flavored tobacco has significant public health implications for youth and people of color as a result of targeted industry marketing strategies and product manipulation;11,26,152,153 WHEREAS, the State of California acknowledges that youth usage of flavored tobacco products continues to rise and that while the FDA recently announced a partial ban of certain flavored electronic cigarette products, the policy does not adequately address the health and safety of California children as it makes dangerous exemptions;
196
WHEREAS, the State of California, in response to the rising epidemic of youth usage of flavored tobacco products, the intentional targeted marketing of certain flavored tobacco products to communities of color, low-income individuals, and the LGBTQ community, and the aggressive marketing of menthol-flavored products to African American community members, enacted SB 793, which came into effect on December 21, 2022;
196

WHEREAS, a review of advertising, promotions, and pack prices near California high schools found that “for each 10 percentage point increase in the proportion of Black students, the proportion of menthol advertising increased by 5.9% ... the odds of a Newport [a leading brand of mentholated cigarettes] promotion were 50% higher ... and the cost of Newport was 12 cents lower.” There was no such association found for non-mentholated cigarettes;
154

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WHEREAS, scientific reviews by the FDA and the Tobacco Products Scientific Advisory Committee (“TPSAC”) found marketing of menthol cigarettes likely increases the prevalence of smoking among the entire population, but especially among youth, African Americans,33 and possibly Hispanic and Latino individuals;34 and that menthol cigarettes are associated with increased initiation and progression to regular cigarette smoking, increased dependence on cigarettes, and reduced success in smoking cessation, especially among African American menthol smokers; 33 WHEREAS, research indicates that the FDA ban in 2009 on all flavored cigarette products (except menthol) led to a 6% decrease in youth commercial tobacco use and a 17% decrease in the likelihood of a youth becoming a cigarette smoker;155
WHEREAS, studies indicate that laws prohibiting the sale of flavored tobacco products lead to decreases in youth commercial tobacco use, as evidenced by the following:
• An evaluation of New York City’s law, which prohibits the sale of all flavored tobacco, excluding menthol, indicated that as a result of the law, youth had 37% lower odds of ever trying flavored tobacco products and 28% lower odds of ever using any type of tobacco;156 • An evaluation of a law in Providence, Rhode Island, which prohibits the sale of all flavored tobacco, excluding menthol, indicated that as a result of the law, current use of any tobacco product among high school youth declined from 22% to 12% and e-cigarette use declined from 13.3% to 6.6%, even as statewide e-cigarette use among high school increased to more than 20%;157

WHEREAS, the health effects of non-cigarette tobacco products such as cigars, cigarillos, smokeless tobacco, and shisha are substantial as demonstrated by research that shows that non-cigarette tobacco products have addictive levels of nicotine, harmful toxins, and dangerous carcinogens;158-164 WHEREAS, unlike cigarette use that has steadily declined among youth, the prevalence of the use of non-cigarette tobacco products has increased among California youth;9 WHEREAS, evidence also suggests that cigarettes are cheaper in neighborhoods with lower household incomes,118,168 Newport menthol cigarettes cost less in areas with higher proportions of African Americans,118 and underserved communities are targeted with price discounts and coupons;169-171
WHEREAS, tobacco companies spend considerably to decrease the price of their products in order to counter state and local commercial tobacco control efforts, appeal to price-sensitive consumers, and increase demand for tobacco products. For example, tobacco companies spent the majority of their cigarette marketing budgets on price discounts, accounting for nearly $6.2 billion of $8.6 billion advertising and promotional expenditures in 2018;
50,51,62
WHEREAS, the tobacco industry’s price discounting strategies, such as coupons and multiple- package discounts, are popular among consumers, with more than half of adults using some price minimization strategy.
70 Coupon receipt and redemption appears more prevalent among white, younger, female, sexual minority, and more nicotine dependent smokers.172 In California, individuals who used price minimization strategies saved an average $1.04 per pack (or 18.6% off the total) in 2010;70
WHEREAS, price-discounted sales account for a substantial proportion of overall tobacco product sales;63

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WHEREAS, by selling tobacco products, pharmacies reinforce positive social perceptions of smoking, convey tacit approval of commercial tobacco use, and send a message that it is not so dangerous to smoke;178,179
WHEREAS, pharmacies sell cigarettes cheaper than other stores118 and advertise tobacco product discounts more than other stores in California;80
WHEREAS, commercial tobacco-free pharmacy sales policies decrease the availability of tobacco products by reducing tobacco retailer density by up to three times compared with communities that do not have such policies,
119 and immediately after the nationwide CVS policy change to not sell tobacco products, cigarette purchases declined and smokers who had previously purchased their cigarettes exclusively at CVS were up to twice as likely to stop buying cigarettes entirely; 120
WHEREAS, research indicates that the density and proximity of tobacco retailers increase smoking behaviors, including number of cigarettes smoked per day,90 particularly in neighborhoods experiencing poverty;90,180-182
WHEREAS, the density of tobacco retailers near adolescents’ homes has been associated with increased youth smoking rates101 and initiation of noncigarette tobacco product use;183 WHEREAS, adults who smoke are likely to have a harder time quitting when residential proximity to tobacco retailers is closer107 and density is higher;184-186 WHEREAS, tobacco retailers are more prevalent in underserved communities, especially in neighborhoods with a higher proportion of African American or Hispanic residents;93-98 WHEREAS, tobacco retailer density is higher in urban compared to rural areas, except for low- income communities, which have higher tobacco retailer densities regardless of geography, and Hispanic communities, which are associated with variable retailer densities across geography; 97,187
WHEREAS, policies to reduce tobacco retailer density have been shown to be effective103,104,188,189 and can reduce or eliminate inequities in the location and distribution of tobacco retailers;103,104 WHEREAS, six out of 10 tobacco retailers in California sold cigar products using cannabis-related flavor descriptors and these retailers were more prevalent in school neighborhoods with lower median income;
190
WHEREAS, both youth and adult commercial tobacco users are more likely to also use cannabis;191,192
WHEREAS, strict enforcement of policies prohibiting retail sales of cigarettes to youth, sales of cigarettes via vending machines, and other means through which youth gain access to commercial tobacco in the business settings can limit their opportunities to obtain these products; 26,27
WHEREAS, strong policy enforcement and monitoring of retailer compliance with tobacco control policies (e.g., requiring identification checks) is necessary to achieve reductions in youth tobacco sales;193,194
WHEREAS, the Institute of Medicine recognizes that retailers are not likely to comply with youth commercial tobacco access laws unless such laws are actively enforced through retailer compliance checks paired with meaningful penalties on business owners for violations;195

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WHEREAS, according to survey data collected by SAY San Diego and published in 2023 for National City, 18% of tobacco product retailers sold tobacco products to underage investigators, and 26% of store clerks failed to ask investigators for their age-verification documents;197 WHEREAS, over 25% of tobacco retailers are within 500 feet of a school in National City, and over 50% of retailers are within 1000 feet of a school in National City;198 WHEREAS, state law explicitly permits cities and counties to enact local tobacco retail licensing ordinances, and allows for the suspension or revocation of a local license for a violation of any state tobacco control law (Cal. Bus. & Prof. Code § 22971.3); WHEREAS, California courts have affirmed the power of the city council to regulate business activity to discourage violations of law. See, e.g., Cohen v. Board of Supervisors, 40 Cal. 3d 277 (1985); Bravo Vending v. City of Rancho Mirage, 16 Cal. App. 4th 383 (1993); Prime Gas, Inc. v. City of Sacramento, 184 Cal. App. 4th 697 (2010);
WHEREAS, over 180 cities and counties in California have passed tobacco retailer licensing ordinances in an effort to stop youth from using tobacco; 9 WHEREAS, survey data from neighboring City of Chula Vista collected by city staff in 2020 and 2021 suggests that at least 35% of students in grades 9-12 in the Sweetwater Union High School District had used an electronic cigarette/vaping device at least once, and that 44% of electronic cigarettes/vaping devices were access from retail locations (e.g. convenience stores, gas stations, vape shops) with a further 18% acquired through online purchase; 199
WHEREAS, in the City Council has a substantial interest in protecting youth and underserved populations from the harms of commercial tobacco use; and WHEREAS, survey data from National City residents collected by SAY San Diego in 2023 suggests the majority of National City residents would support a tobacco retailer license requirement and believe that such a license would reduce commercial tobacco product sales to minors;200 and WHEREAS, the City Council finds that a local licensing system for tobacco retailers is appropriate to ensure that retailers comply with tobacco control laws and business standards of the city in order to protect the health, safety, and welfare of our residents; NOW THEREFORE, it is the intent of the City Council, in enacting this ordinance, to ensure compliance with the business standards and practices of the City and to encourage responsible tobacco retailing and to discourage violations of tobacco-related laws, especially those which prohibit or discourage the sale or distribution of tobacco products to youth, but not to expand or reduce the degree to which the acts regulated by federal or state law are criminally proscribed or to alter the penalties provided therein. Accordingly, the City Council enacts the following regulations as not preempted by the Federal Cigarette Labeling and Advertising Act, 15 U.S. Code sec. 1332, et seq.

Section 9.38.020 Definitions. For purposes of this chapter:

A. "Arm's Length Transaction" means a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither of which is under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for which a significant purpose is avoiding the effect of the violations of this chapter is not an Arm's Length Transaction.

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B. "Applicant" means the Person applying for a permit pursuant to this chapter.

C. “Cannabis” has the meaning set forth in California Business and Professions Code Section 26001, as that section may be amended from time to time.

D. “Cannabis Product” has the meaning set forth in California Business and Professions Code Section 26001, as that section may be amended from time to time.

E. “Cannabis Retailer” means any retail establishment in which cannabis or cannabis products are sold or offered for sale to persons that do not hold a license to engage in commercial cannabis activity issued by the State of California in accordance with the Business and Professions Code Section 26000 et seq., as that section may be amended from time to time.

F. “Child-Resistant Packaging” means packaging that meets the definition set forth in Code of Federal Regulations, title 16, section 1700.15(b), as in effect on January 1, 2015, and was tested in accordance with the method described in Code of Federal Regulations, title 16, section 1700.20, as in effect on January 1, 2015.

G. “Cigar” means any roll of tobacco other than a cigarette wrapped entirely or in part in tobacco or any substance containing tobacco and weighing more than 4.5 pounds per thousand.

H. “Cigarette” means: (1) any roll of tobacco wrapped in paper or in any substance not containing tobacco; and (2) any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described herein.

I. "City" means City of National City, California.

J. “Compliance checks” means systems the department uses to investigate and ensure that tobacco retailers are following and complying with the requirements of this chapter. Compliance checks may involve the use of persons between the ages of 18 and 20 who purchase or attempt to purchase tobacco products. Compliance checks may also be conducted by the department or other units of government for educational, research, and training purposes or for investigating or enforcing federal, state, or local laws and regulations relating to tobacco products.

K. “Coupon” means any voucher, rebate, card, paper, note, form, statement, ticket, image, or other issue, whether in paper, digital, or other form, used for commercial purposes to obtain an article, product, service, or accommodation without charge or at a discounted price.

L. “Delivery sale” means the sale of any tobacco product to any person for personal consumption and not for resale when the sale is conducted by any means other than an in-person, over-the- counter sales transaction in a tobacco retail establishment. Delivery sale includes the sale of any tobacco product when the sale is conducted by telephone, other voice transmission, mail, the internet, or app-based service. Delivery sale includes delivery by licensees or third parties by any means, including curbside pick-up.

M. “Department” means [ insert department name ] and any agency or person designated by the City to enforce or administer the provisions of this chapter.

N. "Electronic Smoking Device" means an electronic device that may be used to deliver any

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aerosolized or vaporized substance to the person inhaling from the device, including, but not limited to, an e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah. “Electronic Smoking Device” includes any component, part, or accessory of the device, and also includes any substance that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine. “Electronic Smoking Device” does not include “drugs,” “devices,” or “combination products,” authorized for sale by the U.S. Food an d Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act. "

O. "Flavored Tobacco Product" means any tobacco product that imparts:

1. a taste or odor distinguishable by an ordinary consumer, other than the taste or odor of tobacco, either prior to or during the consumption of such tobacco product, including but not limited to tastes or odors relating to any fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverage, mint, wintergreen, menthol, herb, or spice; or

2. a cooling or numbing sensation distinguishable by an ordinary consumer during the consumption of such tobacco product.

P. “Full Retail Price” means the displayed price plus all applicable taxes and fees if such taxes and fees are not included in the displayed price. For the purposes of this chapter, “Displayed Price” means the price displayed for a tobacco product on its packaging or on any related shelving, advertising, or display where the tobacco product is sold or offered for sale.

Q. "Little Cigar” means any roll of tobacco other than a cigarette wrapped entirely or in part in tobacco or any substance containing tobacco and weighing no more than 4.5 pounds per thousand. Little Cigar includes, but is not limited to, tobacco products known or labeled as small cigar, little cigar, or cigarillo.

R. “Manufacturer” means any person, including any repacker or relabeler, who manufactures, fabricates, assembles, processes, or labels a tobacco product, or imports a finished tobacco product for sale or distribution into the United States.

S. “Moveable Place of Business” means any form of business that is operated out of a kiosk, truck, van, automobile or other type of vehicle or transportable shelter and not a fixed address store front or other permanent type of structure authorized for sales transactions.

T. "Person" means any human being, partnership, cooperative association, corporation, personal representative, receiver, trustee, assignee, or any other legal entity.

U. “Pharmacy” means any retail establishment in which the profession of pharmacy is practice by a pharmacist licensed by the State of California in accordance with the Business and Professions Code and where prescription pharmaceuticals are offered for sale, regardless of whether the retail establishment sells other retail goods in addition to prescription pharmaceuticals.

V. “Proprietor” means a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a 10% or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person has or shares ultimate control over the day-to-day operations of a business.

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W. “Recreation Facility” means an area, place, structure, or other facility that is used either permanently or temporarily for community recreation, even though it may be used for other purposes, and includes but is not limited to, a gymnasium, playing court, playing field, and swimming pool.

X. “Sale” mean any transfer, exchange, barter, gift, offer for sale, or distribution for a commercial purpose, in any manner or by any means whatsoever.

Y. "Self-Service Display" means the open display or storage of tobacco products in a manner that is physically accessible in any way to the general public without the assistance of the retailer or employee of the retailer and a direct face-to-face transfer between the purchaser and the retailer or employee of the retailer. A vending machine is a form of Self-Service Display.

Z. “Smoking” means inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, or pipe, or any other lighted or heated product containing, made, or derived from nicotine, tobacco, marijuana, or other plant, whether natural or synthetic, that is intended for inhalation. “Smoking” includes using an electronic smoking device.

AA. ''Tobacco Product" means:

1. Any product containing, made of, or derived from tobacco or nicotine that is intended for human consumption or is likely to be consumed, whether inhaled absorbed, or ingested by any other means, including but not limited to, a cigarette, a cigar, pipe tobacco, snuff, snus, or chewing tobacco;

2. Any electronic smoking device and any substances that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine; or

3. Any component, part, or accessory of (1) or (2), whether or not any of these contains tobacco or nicotine, including but not limited to filters, rolling papers, blunt or hemp wraps, hookahs, mouthpieces, and pipes. ''Tobacco Product" does not mean “drugs,” “devices,” or “combination products,” authorized for sale by t he United States Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act.

BB. ''Tobacco Retailer" means any person who sells, offers for sale, or exchanges or offers to exchange for any form of consideration, tobacco products. This definition is without regard to the quantity of tobacco products sold, offered for sale, exchanged, or offered for exchange.

CC. “Tobacco Retailing” means engaging in the activities of a tobacco retailer.

DD. “Youth-Oriented Facility” means a parcel in the city that is occupied by:

1. a private or public kindergarten, elementary, middle, junior high, or high school;

2. a library open to the public;

3. a playground open to the public;

4. a youth center, defined as a facility where children, ages 6 to 17, inclusive, come together for programs and activities;

5. a recreation facility open to the public, defined as an area, place, structure, or other facility that is used either permanently or t emporarily for community recreation, even though it may be used for other purposes;

6. a park open to the public or to all the residents of a private community;

7. a licensed child-care facility or preschool [other than a small-family day care home or a large- family day care home [as defined in California Health & Safety Code § 1596.78]].

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Section 9.38.030 General requirements and prohibitions.

A. Tobacco retailer’s license required. It shall be unlawful for any person to engage in tobacco retailing in the City without first obtaining and maintaining a valid tobacco retailer’s license for each location at which tobacco retailing is to occur.

B. Lawful business operation. In the course of tobacco retailing or in the operation of the business or maintenance of the location for which a license issued, it shall be a violation of this chapter for a licensee, or any of the licensee’s agents or employees, to violate any local, state, or federal law applicable to the sale of tobacco products.

C. Smoking prohibited. Smoking, including smoking for the purpose of sampling any tobacco product, is prohibited within the indoor area of any retail establishment licensed under this chapter. Smoking also prohibited outdoors within 25 feet of any retail establishment licensed under this chapter.

D. Minimum Legal Sales Age. No person engaged in tobacco retailing shall sell a tobacco product to a person under 21 years of age.

E. Display of License. Each tobacco retailer license shall be prominently displayed in a publicly visible location at the licensed location.

F. Positive identification required. No person engaged in tobacco retailing shall sell a tobacco product to another person without first verifying by means of government- issued photographic identification that the recipient is at least 21 years of age.

G. Self-service displays prohibited. Tobacco retailing by means of a self-service display is prohibited.

H. On-site Sales. All sales of tobacco products shall be conducted in-person in the licensed location. It shall be a violation of this chapter for any tobacco retailer or any of the tobacco retailer’s agents or employees to engage in the delivery sale of tobacco products or to knowingly or recklessly sell or provide tobacco products to any person that intends to engage in the delivery sale of the tobacco product in the City.

I. Posting of Signs. Every tobacco retailer shall post conspicuously in their place of business at each point of purchase a notice stating that the sale of tobacco products and cigarettes to persons under twenty-one years of age is prohibited by law and subject to penalties. The notice shall also state that photo identification is required to purchase tobacco products. The letters of the sign shall be at least one-half inch in height.

a. Any sign meeting the content requirements of California Business and Professional Code Section 22952(b) and regulations promulgated thereunder, and the posting requirements of California Penal Code Section 308(c), satisfies Subsection I of this Section.

Section 9.38.040 Limits on eligibility for a tobacco retailer license.

A. Mobile Vending. No license may issue to authorize tobacco retailing at other than a fixed location. No tobacco retail license will be issued to a moveable place of business.

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B. Licensed cannabis businesses. No license may issue, and no existing license may be renewed, to authorize tobacco retailing at a location licensed for commercial cannabis activity by the State of California under Business and Professions Code Division 10.

C. Pharmacies. One year after the effective date of this ordinance, no license may issue, and no existing license may be renewed, to authorize tobacco retailing in a pharmacy.

D. Proximity to youth-oriented facilities. No new license may issue to authorize tobacco retailing within 1,000 feet of a youth-oriented facility as measured by a straight line from the nearest point of the property line of the parcel on which the youth-oriented facility is located to the nearest point of the property line of the parcel on which the applicant’s business is located.

E. Proximity to other tobacco retailers. No new license may issue to authorize tobacco retailing within 1,000 feet of a tobacco retailer location already licensed pursuant to this chapter as measured by a straight line from the nearest point of the property line of the parcel on which the applicant’s business is located to the nearest point of the property line of the parcel on which an existing licensee’s business is located.

F. Proximity to cannabis retailers. No new license may issue to authorize tobacco retailing within [ 1,000 ] feet of an existing cannabis retailer as measured by a straight line from the nearest point of the property line of the parcel on which the applicant’s business is located to the nearest point of the property line of the parcel on which an existing cannabis retailer is located.

G. Measure of distance. The distance between any tobacco retail store and any school, playground, recreation center or facility, childcare center, library, or other tobacco retailer, or cannabis retailer, shall be measured in a straight line, without regard to intervening structures, from the exterior of the tobacco retail store to the closest property line of the school, playground, recreation center or facility, childcare center, or library.

H. Population and density. The issuing of tobacco retailer licenses is limited as follows:

1. The total number of tobacco retailer licenses within the city shall be limited to one for each [ 2,500 ] inhabitants of the city.

2. For the purposes of this subsection, the total population of the city shall be determined by the most current published total available from the U.S. Census Bureau or the California State Department of Finance, whichever has been more recently updated, as of the date the license application is filed.

3. No new license may issue to authorize tobacco retailing if the number of tobacco retailer licenses already issued equals or exceeds the total number authorized pursuant to subsection (1).

I. Existing retailers. A tobacco retailer operating lawfully on the date this ordinance is adopted may receive an exemption from Subsection D, E, F, and H, as long as all of the following conditions are met:

1. the license is timely obtained and is renewed without lapse or revocation;

2. the tobacco retailer is not closed for business or otherwise suspends Tobacco Retailing for more than sixty (60) consecutive days;

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3. the tobacco retailer does not substantially change the business premises or business operation. A substantial change to the business operation includes, but is not limited to, the transferring of a location to a new Proprietor(s); and

4. the tobacco retailer retains the right to operate under other applicable laws.

J. Change of business dispute. If the City determines that a tobacco retailer has substantially changed their business premises or operation and the tobacco retailer disputes this determination, the Tobacco Retailer bears the burden of proving by a preponderance of evidence that such change(s) do not constitute a substantial change.

Section 9.38.050 Restrictions on location of tobacco products, and tobacco advertising displays.

A. It is unlawful for any tobacco retailer to place, maintain or cause to be placed or maintained any tobacco product or tobacco advertising display within two feet of any candy, snack, or non- alcoholic beverage display inside a tobacco retail store located within one thousand feet (1,000) of any youth-oriented facility.

B. Except as allowed in subsection A, it is unlawful for any person to advertise tobacco products within one thousand feet (1,000) of any youth-oriented facility.

C. Subsection A does not apply to commercial establishments where access to the premises by persons under twenty-one years of age is prohibited by law.

Section 9.38.060 Sale of flavored tobacco products prohibited.

A. It shall be unlawful for any tobacco retailer to sell any flavored tobacco product.

B. Presumptive Flavored Tobacco Product . Any communication by, or on behalf of, the manufacturer or retailer of a tobacco product that indicates that the product imparts: a taste or smell other than the taste or smell of tobacco; or a cooling or numbing sensation, constitutes presumptive evidence of a violation of this section. Presumptive evidence may include but is not limited to the use of terms such as “cool,” “chill,” “ice,” “fresh,” “arctic,” or “frost” to describe the product.

Section 9.38.070 Tobacco product pricing and packaging.

A. Packaging and labeling. No tobacco retailer shall sell any tobacco product to any consumer unless the tobacco product: (1) is sold in the manufacturer’s packaging intended for sale to consumers; (2) conforms to all applicable federal labeling requirements; and (3) conforms to all applicable child-resistant packaging requirements. Upon request by the City, a licensee must provide a copy of the certificate of compliance or full laboratory testing report for the packaging used.

B. Display of price . The price of each tobacco product offered for sale shall be clearly and conspicuously displayed on the tobacco product or on any related shelving, posting, advertising, or display at the location where the item is sold or offered for sale.

C. Distribution of tobacco samples or promotional items. It is unlawful for any person to distribute free or nominally priced tobacco products.

D. Prohibition of tobacco coupons and discounts. No tobacco retailer shall:

1. honor or redeem, or offer to honor or redeem, a coupon to allow a consumer to purchase a tobacco product for less than the full retail price;

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2. sell any tobacco product to a consumer through a multiple- package discount or otherwise provide any such product to a consumer for less than the full retail price in consideration for the purchase of any tobacco product or any other item; or

3. provide any free or discounted item to a consumer in consideration for the purchase of any tobacco product.

E. Minimum package size for little cigars and cigars. No tobacco retailer shall sell:

1. any little cigar unless it is sold in a package of at least [ 20 ] little cigars; or

2. any cigar unless it is sold in a package of at least at least [ 6 ] cigars ; provided, however, that this subsection shall not apply to a cigar that has a price of at least [ $X.00 ] per cigar, including all applicable taxes and fees.

F. Minimum prices for cigarettes, little cigars, and cigars. No tobacco retailer shall sell:

1. Cigarettes at a displayed price that is less than [ $X.00 ] per package of 20 cigarettes;

2. Little cigars at a displayed price that is less than [ $X.00 ] per package of little cigars; or

3. Cigars at a displayed price that is less [ $X.00 ] per cigar.

The minimum prices established in this section shall be adjusted annually by the Department in proportion with the Consumer Price Index, using a system established by the Department.

G. Prohibition on the sale of individual cigarettes. No tobacco retailer shall sell cigarettes individually or in packages containing less than 20 cigarettes.

Section 9.38.080 License application procedure.

A. An application for a tobacco retailer’s license shall be submitted in the name of each proprietor proposing to conduct retail tobacco sales and shall be signed by each proprietor or an authorized agent thereof. All applications shall be submitted on a form supplied by the Department.

B. A license issued contrary to this Chapter, contrary to any other law, or on the basis of false or misleading information shall be revoked pursuant to this Chapter. Nothing in this Chapter shall be construed to vest in any person obtaining and maintaining a tobacco retailer’s license any status or right to act as a tobacco retailer in contravention of any provision of law.

C. Applicant submissions must contain the following information:

1. The name, address, and telephone number of eac h proprietor of the business seeking a license.

2. The business name, address and telephone number of the location for which a license is

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sought.

3. The name and mailing address authorized by each proprietor to receive all communications and notices required by, authorized by, or convenient to the enforcement of this Chapter.

4. Proof that the location for which a tobacco retailer’s license is sought has been issued all necessary state license for the sale of tobacco products.

5. Whether or not any proprietor or any agent of the proprietor has admitted violating, or has been found to have violated, this Chapter or any other local, state, or federal law governing the sale of tobacco products and, if so, the dates and locations of all such violations within the previous five years.

6. A signed affidavit affirming that the proprietor has not sold and will not sell any tobacco product without a license required by this Chapter.

7. Such other information as the Department deems necessary for the administration or enforcement of this Chapter as specified on the application form required by this section.

8. Copies of applications for licenses and licenses issued pursuant to California Business and Professions Code Section 22970 et seq., the "Cigarette and Tobacco Products Licensing Act of 2003." If an application for a license pursuant to the "Cigarette and Tobacco Products Licensing Act of 2003" has been denied, copies of documentation regarding the reason for the denial of such license.

D. Change in information. A licensed tobacco retailer shall inform the Department in writing of any change in the information submitted on an application for a Tobacco Retailer's license within 10 business days of a change.

E. All information specified in an application pursuant to this section shall be subject to disclosure under the California Public Records Act (California Government Code Section 6250 et seq.) or any other applicable law, subject to the laws' exemptions.

Section 9.38.090 License issuance and renewal.

A. Issuance of license. Upon the receipt of a complete and adequate application for a tobacco retailer's license and the license fee required by this chapter, the Department may grant or deny the application for license, or it may delay action for a reasonable period of time to complete any investigation of the application of the applicant deemed necessary.

B. Denial of application. The Department may deny an application for a tobacco retailer’s license based on any of the following reasons:

1. The information presented in the application is inaccurate or false. Intentionally supplying inaccurate information shall be a violation of this chapter;

2. The application seeks authorization for tobacco retailing at a location for which this chapter prohibits a license to be issued;

3. The application seeks authorization for tobacco retailing for a proprietor to whom this chapter prohibits a license to be issued; or

4. The application seeks authorization for tobacco retailing in a manner that is

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prohibited pursuant to this chapter, that is unlawful pursuant to any other chapter of this Code, or that is unlawful pursuant to any other law.

5. Any other suitable reason the granting of a license to the applicant is not consistent with the public health and welfare, including the applicant’s history of noncompliance with this Chapter and other laws relating to the sale of tobacco products.

6. The applicant is under the age of twenty-one.

Section 9.38.100 License renewal and expiration.

A tobacco retailer's license is invalid if the appropriate fee has not been timely paid in full or if the term of the license has expired. The term of a tobacco retailer license is one ( 1) year. Each tobacco retailer will apply for the renewal of their tobacco retailer’s license and submit the license fee no later than thirty (30) days prior to expiration of the current license. A retailer that fails to timely submit a renewal application and fee is ineligible for license renewal and must submit a new application pursuant to this Chapter.

Section 9.38.110 Licenses not transferrable, past violations at retail location.

A. Licenses not transferrable. A tobacco retailer's license may not be transferred from one Person to another or from one location to another. A new tobacco retailer's license is required whenever a tobacco retailer has a tobacco retailing location has a change in proprietors.

B. Past violations. Notwithstanding any other provision of this chapter, prior violations at a location shall continue to be counted against a location and license ineligibility periods shall continue to apply to the location unless:

1. The location has been transferred to the new Proprietor(s) in an Arm's Length Transaction; and

2. The new proprietor(s) provide the City with clear and convincing evidence that the new Proprietor(s) have acquired the location in an Arm's Length Transaction.

Section 9.38.120 License conveys a limited, conditional privilege.

Nothing in this chapter shall be construed to grant any Person obtaining and maintaining a Tobacco Retailer's license any status or right other than the limited conditional privilege to act as a Tobacco Retailer at the location in the City identified on the face of the permit. Nothing in this chapter shall be construed to render inapplicable, supersede, or apply in lieu of, any other provision of applicable law

Section 9.38.130 Fee for license
The fee to issue or to renew a tobacco retailer's license shall be established from time to time by resolution of the City Council. The fee shall be calculated so as to recover the total cost of administration and enforcement of this chapter, including, but not limited to, issuing a license, administering the l program, retailer education, retailer inspection and compliance checks, documentation of violations, and prosecution of violators, but shall not exceed the cost of the regulatory program authorized by this chapter. All fees and interest upon proceeds of fees shall be used exclusively to fund the program. Fees are nonrefundable except as may be required by law.

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Section 9.38.140 Compliance monitoring.

A. Compliance with this chapter shall be monitored by the Department. In addition, the City may designate additional persons to monitor compliance with this chapter. All licensed premises must be open to inspection by city staff or designated persons during regular business hours.

B. The Department shall inspect each tobacco retailer at least one (1) time per 12-month period.

C. The city will conduct at least two compliance checks per 12- month period that involves the participation of persons between the ages of 18 and 20 to enter licensed premises to attempt to purchase tobacco products.

D. Nothing in this section shall create a right of action in any licensee or other person against the city or its agents

Section 9.38.150 Suspension or revocation of permit.

A. Notice. Upon discovery of a suspected violation, the Department shall issue the alleged violator, either personally or by first class mail addressed to the authorized address, an administrative citation that sets forth the alleged violation and which shall inform the alleged violator of their right to be heard on the accusation.

B. Hearings. Upon issuance of an administrative citation, a person accused of violating this Ordinance may request in writing a hearing on the matter. Hearing requests must be made within 10 business days of the issuance of a citation and delivered to the City Manager or other designated City officer. Failure to properly request a hearing within 10 business days of the issuance of that citation will terminate the person’s right to a hearing. The City Manager or other designated City official will set a time and place for the hearing. Written notice of the hearing time and place will be mailed first class or delivered in person to the accused violator at least 10 business days prior to the hearing.

C. Hearing officer. The City shall designate a hearing officer. The hearing officer will be an impartial employee of the City or an impartial person retained by the City to conduct the hearing.

D. Decision. If the hearing officer determines that a violation of this Ordinance did occur, that decision, along with the hearing officer’s reasons for finding a violation and the penalty to be imposed under Section of this Ordinance, shall be recorded in writing, a copy of which shall be provided to the accused violator. If the hearing officer finds that no violation occurred, or finds grounds for not imposing any penalty, such findings shall be recorded and a copy provided to the acquitted accused violator.

E. Costs. If this administrative citation is upheld by the hearing officer, the city’s actual expenses in holding the hearing up to a maximum of [one thousand dollars [ $1,000]] must be paid by the person requesting the hearing.

F. Appeals. Appeals of any decision made by the hearing officer shall be filed in the superior court for the jurisdiction of the city in which the alleged violation occurred.

G. Continued violation.

1. Each day on which a tobacco product is distributed, sold, or offered for sale in violation of this Chapter shall constitute a separate violation of this Chapter; and

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2. Each individual tobacco product that is distributed, sold, or offered for sale in violation of this Chapter shall constitute a separate violation of this Chapter.

H. Revocation of License Wrongly Issued. A tobacco retailer's license shall be revoked if the Department finds, after the Licensee is afforded notice and an opportunity to be heard, that one or more of the bases for denial of a license under this Chapter existed at the time application was made, or at any time before the permit issued, or one or more of the bases for denial of a renewal permit under this Chapter existed at the time the renewal permit was issued. Notice and appeal of the revocation shall be conducted in accordance with this section.

I. If a license issued under this chapter is suspended or revoked, all tobacco products at the suspended or revoked tobacco retailer's location shall be removed from public view for the duration of the suspension or revocation. The tobacco retailer additionally shall not display any advertisement relating to tobacco products that promotes the sale or distribution of such products from the tobacco retailer's location or that could lead a reasonable consumer to believe that such products can be obtained at that location for the duration of the suspension or revocation.

Section 9.38.160 Violations and penalties.

A. Any licensee who is found to be in violation of this Ordinance, whether such violation is determined by a hearing officer or superior court; or the Licensee has pleaded guilty, "no contest," or its equivalent, or admitted to a violation, will be charged an administrative fine and as well as their license suspended or revoked follows:

1. Upon a finding by the Department of a first violation of this chapter at a location, the Licensee shall be issued a warning.

2. Upon a finding by the Department of a second violation of this chapter at a location within any 36-month period, the licensee will be charged an administrative fine of $300 and the license shall be suspended for 90 days.

3. Upon a finding by the Department of a third violation of this chapter at a location within any 36-month period, the licensee will be charged an administrative fine of $600 and the license shall be suspended for one year.

4. Upon a finding by the Department of a fourth violation of this chapter at a location within any 36-month period, the licensee will be charged an administrative fine of $1,000 and the license shall be revoked.

B. Tobacco retailing without a valid license. In addition to any other penalty authorized by law, if the Department finds based on a preponderance of evidence, after notice and an opportunity to be heard, that any person has engaged in tobacco retailing at a location without a valid tobacco retailer's permit, either directly or through the person's agents or employees, the person shall be ineligible to apply for, or to be issued, a tobacco retailer's permit as follows:

1. After a first violation of this section at a location within any 36-month period, no new permit may issue for the p erson or the location (unless p roprietorship of the

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business at the location has been transferred in an Arm's Length Transaction), until 90 days have passed from the date of the violation.

2. After a second violation of this section at a location within any 36-month period, no new permit may issue for the person or the location (unless proprietorship of the business at the location has been transferred in an Arm's Length Transaction), until 180 days have passed from the date of the violation.

3. After of a third or subsequent violation of this section at a location within any 36- month period, no new license may issue for the person or the location (unless Proprietorship of the business at the location has been transferred in an Arm's Length Transaction), until five years have passed from the date of the violation.

C. Whenever evidence of a violation of this chapter is obtained in any part through the participation of a Person under the age of 18 years old, such a Person shall not be required to appear or give testimony in any civil or administrative process brought to enforce this chapter and the alleged violation shall be adjudicated based upon the preponderance of the evidence presented.

D. All tobacco retailers are responsible for the actions of their employees relating to the sale, offer to sell, and furnishing of tobacco products at the retail location. The sale of any tobacco product shall be considered an act of the tobacco retailer.

E. Tobacco products offered for sale in violation of this Chapter are subject to seizure by the Department or its designee and shall be forfeited after the licensee or any other owner of the tobacco products seized is given reasonable notice and an opportunity to demonstrate that the tobacco products were not offered for sale in violation of this Chapter. The decision by the Department may be appealed pursuant to the procedures set forth in Section 9.38.150. Forfeited tobacco products shall be destroyed and properly disposed of at the cost of the seller after all internal appeals have been exhausted and the time in which to seek judicial review pursuant to California Code of Civil Procedure section 1094.6 or other applicable law has expired without th e filing of a lawsuit or, if such a suit is filed, after judgment in that suit becomes final.

F. Violations of this Chapter may, in the discretion of the [ district attorney/city counsel ], be prosecuted as infractions or misdemeanors when the interests of justice so require.

G. Violations of this Chapter are hereby declared to be public nuisances.

H. In addition to other remedies provided by this Chapter or by other law, any violation of this Chapter may be remedied by a civil action brought by the [ district attorney/city counsel ], including administrative or judicial nuisance abatement proceedings, civil code enforcement proceedings, and suits for injunctive relief.

I. The remedies specified in this section are cumulative and in addition to any other remedies available under State or local law for a violation of this Code.

Section 9.38.170 Exceptions.

A. Nothing in this Chapter prevents the provision of tobacco products to any person as part of an indigenous practice or a lawfully recognized religious or spiritual ceremony or practice

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B. Nothing in this Chapter shall be construed to penalize the purchase, use, or possession of a tobacco product by any person not engaged in tobacco retailing.

Section 9.38.180 Construction and severability.

It is the intent of the City Council to supplement applicable state and federal law and not to duplicate or contradict such law and this ordinance shall be construed consistently with that intention. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Chapter, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases of this Chapter, or its application to any other person or circumstance. The City Council hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

Section 9.38.190 Public records.

All information provided to the Department by a licensee or license applicant pursuant to this Chapter shall be subject to disclosure under the California Public Records Act (California Government Code section 6250 et seq.) or any other applicable law.

SECTION 2:

Effective date.

This Ordinance shall take effect and be in force from and after [ 30 days after date of enactment ].

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SECTION 3: References
1 Centers for Disease Control and Prevention. Best Practices for Comprehensive Tobacco Control Programs — 2014. U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health. 2014. Available at:
https://www.cdc.gov/tobacco/stateandcommunity/best_practices/pdfs/2014/comprehensive.pdf

2 U.S. Department of Health and Human Services. The Health Consequences of Smoking: 50 Years of Progress. A Report of the Surgeon General. Atlanta, GA: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health. 2014. Available at:
https://www.ncbi.nlm.nih.gov/books/NBK179276/pdf/Bookshelf_NBK179276.pdf

3 Family Smoking Prevention and Tobacco Control Act § 3(1), Pub. L. No. 111-31, 123 Stat. 1776- 1858 (2009).
4 National Academies of Sciences, Engineering, and Medicine. Public Health Consequences of E- Cigarettes. 2018. Washington, DC: The National Academies Press. doi: https://doi.org/10.17226/24952 5 Fowles J, Barreau T, Wu N. Cancer and Non-Cancer Risk Concerns from Metals in Electronic Cigarette Liquids and Aerosols. Int J Environ Res Public Health. 2020;17(6):2146. doi:
6 Romberg AR, Miller Lo EJ, Cuccia AF, et al. Patterns of nicotine concentrations in electronic cigarettes sold in the United States, 2013-2018. Drug Alcohol Depend. 2019:201:1-7. doi:

10.1016/j.drugalcdep.2019.05.029.
7 Wang TW, Coats EM, Gammon DG et al. National and State-Specific Unit Sales and Prices for Electronic Cigarettes, United States, 2012–2016. Prev Chroni Dis. 2018;15:E99. doi:

10.5888/pcd15.170555.
8 Lin C, Baiocchi M, Halpern-Felsher B. Longitudinal trends in e-cigarette devices used by Californian youth, 2014–2018. Addict Behav. 2020;108:106459. doi: 10.1016/j.addbeh.2020.106459. 9 California Tobacco Control Program. California Tobacco Facts and Figures 2019. Sacramento, CA:

California Department of Public Health. 2019. Available at:
https://www.cdph.ca.gov/Programs/CCDPHP/DCDIC/CTCB/CDPH%20Docu- ment%20Library/ResearchandEvaluation/FactsandFigures/CATobaccoFactsandFigures2019.pdf 10 U.S. National Cancer Institute. A Socioecological Approach to Addressing Tobacco-Related Health Disparities. National Cancer Institute Tobacco Control Monograph 22. NIH Publication No. 17-CA- 8035A. Bethesda, MD: U.S. Department of Health and Human Services, National Institutes of Health, National Cancer Institute. 2017.
11 United States v. Philip Morris USA, Inc., 449 F. Supp. 2d 1 (D.D.C. 2006), aff’d in part, vacated in part, 566 F.3d 1095 (D.C. Cir. 2009), and order clarified, 778 F. Supp. 2d 8 (D.D.C. 2011). 12 California Tobacco Control Program. California Tobacco Facts and Figures 2018. Sacramento, CA:

California Department of Public Health. 2018. Available at:
https://www.cdph.ca.gov/Programs/CCDPHP/DCDIC/CTCB/CDPH%20Document%20Library/Research andEvaluation/FactsandFigures/CATobaccoFactsFigures2018.pdf

13. California Tobacco Education and Research Oversight Committee. New Challenges — New Promise for All: Toward a Tobacco-Free California Master Plan 2018–2020. Sacramento, CA:

California Tobacco Education and Research Over-sight Committee. 2018. Available at:
https://www.cdph.ca.gov/Programs/CCDPHP/DCDIC/CTCB/CDPH%20Document%20Library/TEROC/

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MasterPlan/TechnicalSupplementtothe2018-2020MasterPlanoftheTobaccoEdu- cationandResearchOversightCommittee.pdf
14 California Tobacco Control Program. Story of Inequity. 2019; http://tobaccofreeca.com/story-of- inequity Accessed M ay 22, 2020.
15 Cal. Bus. & Prof. Code § 22972(a).
16 Cal. Bus. & Prof. Code § 22970.1 (Finding that state tobacco excise tax revenues “have declined by hundreds of millions of dollars per year due, in part, to unlawful distributions and untaxed sales of cigarettes and tobacco products,” and that “the licensing of ... retailers will help stem the tide of untaxed distributions and illegal sales of cigarettes and tobacco products.”). 17 Cal. Rev. & Tax Code § 30111 (providing that state tobacco taxes “are in lieu of all other state, county, municipal, or district taxes on the privilege of distributing cigarettes or tobacco products.”); Cal.

Bus. & Prof. Code § 22964 (providing that the Stop Tobacco Access to Kids Act does not “preempt or otherwise prohibit the adoption of a local standard that imposes a more restrictive legal age to purchase or possess tobacco products.”).
18 Cal. Bus. & Prof. Code § 22971.3 (“Nothing in this division preempts or supersedes any local tobacco control law other than those related to the collection of state taxes. Local licensing laws may provide for the suspension or revocation of the local license for any violation of a state tobacco control law.”).
19 Cal. Penal Code § 308(a)(1)(A).
20 Cal. Bus. & Prof. Code §§ 22950-22964.
21 21 C.F.R. §§ 1140.14(a)(4), 1140.16(b).
22 21 C.F.R. § 1140.14(a)(2), (b)(2).
23 The American Lung Association in California, Center for Tobacco Policy and Organizing. Matrix of Strong Local Tobacco Retailer Licensing Ordinances. 2018. Available at:
https://center4tobaccopolicy.org/wp-content/uploads/2018/07/Ma- trix-of-Strong-Local-TRL- Ordinances-2018-07-16.pdf
24 The American Lung Association in California Center for Tobacco Policy and Organizing. Local Tobacco Policies in the Retail Environment. 2017. Available at:
https://center4tobaccopolicy.org/wp-
content/uploads/2017/08/Local-Tobac- co-Policies-in-the-Retail-Environment-2017-08.pdf 25 The American Lung Association in California Center for Tobacco Policy and Organizing. Tobacco Retailer Licensing is Effective. 2018. Available at:
https://center4tobaccopolicy.org/wp-
content/uploads/2018/09/Tobacco-Retailer-LI- censing-is-Effective-September-2018.pdf 26 U.S. Department of Health and Human Services. Preventing Tobacco Use Among Youth and Young Adults: A Report of the Surgeon General. Atlanta, GA: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health. 2012. Available at:
https://www.ncbi.nlm.nih.gov/books/NBK99237/pdf/Bookshelf_NBK99237.pdf

27 DiFranza JR. Which interventions against the sale of tobacco to minors can be expected to reduce smoking? Tob Control. 2012;21:436-442. doi: 10.1136/tobaccocontrol-2011-050145. 28 21 U.S.C. § 387g(a)(1)(A).

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29 Villanti AC, Johnson AL, Glasser AM. Association of Flavored Tobacco Use With Tobacco Initiation and Subsequent Use Among US Youth and Adults, 2013-2015. JAMA Netw Open. 2019;2(10):e1913804. doi: 10.1001/jamanetworkopen.2019.13804. 30 Villanti AC, Mowery PD, Delnevo CD, Niaura RS, Abrams DB, Giovino GA. Changes in the prevalence and correlates of menthol cigarette use in the USA, 2004-2014. Tob Control. 2016;25(Suppl 2):ii14-ii20. doi: 10.1136/tobaccocontrol-2016-053329.
31 King BA, Dube SR, Tynan MA. Flavored cigar smoking among U.S. adults: findings from the 2009- 2010 National Adult Tobacco Survey. Nicotine Tob Res. 2013;15(2):608-614. doi: 10.1093/ntr/nts178. 32 D’Silva J, Cohn AM, Johnson AL, Villanti AC. Differences in Subjective Experiences to First Use of Menthol and Non- menthol Cigarettes in a National Sample of Young Adult Cigarette Smokers. Nicotine Tob Res. 2018;20(9):1062-1068. doi: 10.1093/ntr/ntx181. 33 Food and Drug Administration. Preliminary Scientific Evaluation of the Possible Public Health Effects of Menthol Versus Nonmenthol Cigarettes. 2013. Available at:
http://www.fda.gov/downloads/ScienceResearch/SpecialTopics/PeerRev- iewofScientificInformationandAssessments/UCM361598.pdf
34 Tobacco Products Scientific Advisory Committee. Menthol Cigarettes and Public Health: Review of the Scientific Evidence and Recommendations. 2011. Available at: :
https://wayback.archive-
it.org/7993/20170405201731/https://www.fda.gov/downloads/AdvisoryCommittees/CommitteesMeeting Materials/TobaccoProductsScientificAdvisoryCommit-tee/UCM269697.pdf 35 Villanti AC, Collins LK, Niaura RS, Gagosian SY, Abrams DB. Menthol cigarettes and the public health standard: a systematic review. BMC Public Health. 2017;17(1):983. doi: 10.1186/s12889-017- 4987-z.
36 Fallin A, Goodin AJ, King BA. Menthol cigarette smoking among lesbian, gay, bisexual, and transgender adults. Am J Prev Med. 2015;48(1):93-97. doi: 10.1016/j.amepre.2014.07.044. 37 Cohn AM, Johnson AL, Hair E, Rath JM, Villanti AC. Menthol tobacco use is correlated with mental health symptoms in a national sample of young adults: implications for future health risks and policy recommendations. Tob Induc Dis. 2016;14:1. doi: 10.1186/s12971-015-0066-3. 38 Chen C, Isabelle LM, Pickworth WB, Pankow JF. Levels of mint and wintergreen flavorants:
smokeless tobacco products vs. confectionery products. Food Chem Toxicol. 2010;48(2):755-763. doi:

10.1016/j.fct.2009.12.015.
39 Morris DS, Fiala SC, Pawlak R. Opportunities for policy interventions to reduce youth hookah smoking in the United States. Prev Chronic Dis. 2012;9:120082. doi: 10.5888/pcd9.120082. 40 Cameron JM, Howell DN, White JR, Andrenyak DM, Layton ME, Roll JM. Variable and potentially fatal amounts of nicotine in e-cigarette nicotine solutions. Tob Control. 2014;23(1):77-78. doi:

10.1136/tobaccocontrol-2012-050604.
41 Tsai J, Walton K, Coleman BN, et al. Reasons for Electronic Cigarette Use Among Middle and High School Students - National Youth Tobacco Survey, United States, 2016. MMWR Morb Mortal Wkly Rep. 2018;67(6):196-200. doi: 10.15585/mmwr.mm6706a5.
42 Wang TW, Gentzke AS, Creamer MR, et al. Tobacco Product Use and Associated Factors Among Middle and High School Students - United States, 2019. MMWR Surveill Summ. 2019;68(12):1-22. doi:

10.15585/mmwr.ss6812a1.

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43 Kuiper NM, Gammon D, Loomis B, et al. Trends in Sales of Flavored and Menthol Tobacco Products in the United States during 2011–2015. Nicotine Tob Res. 2018;20(6):698-706. doi:

10.1093/ntr/ntx123.
44 Cullen KA, Ambrose BK, Genztke AS, et al. Notes from the field: use of electronic cigarettes and any tobacco product among middle and high school students—United States, 2011-2018. MMWR Morb Mortal Wkly Rep. 2018;67(45):1276-1277. doi: 10.15585/mmwr.mm6745a5. 45 Cullen KA, Gentzke AS, Sawdey MD, et al. e-Cigarette Use Among Youth in the United States, 2019. JAMA. 2019;322(21):2095-2103. doi: 10.1001/jama.2019.18387. 46 Ambrose BK, Day HR, Rostron B, et al. Flavored Tobacco Product Use Among US Youth Aged 12- 17 Years, 2013-2014. JAMA. 2015;314(17):1871-1873. doi: 10.1001/jama.2015.13802. 47 Bonhomme MG, Holder-Hayes E, Ambrose BK, et al. Flavoured non-cigarette tobacco product use among US adults: 2013-2014. Tob Control. 2016;25(Suppl 2):ii4-ii13. doi: 10.1136/tobaccocontrol- 2016-053373.
48 Institute of Medicine. Ending the Tobacco Problem: A Blueprint for the Nation. Washington, DC. 2007. Available at:
https://www.nap.edu/catalog/11795/ending-the-tobacco-problem-a-blueprint-for-the-nation

49 Community Preventive Services Task Force. Reducing Tobacco Use and Secondhand Smoke Exposure: Interventions to Increase the Unit Price for Tobacco Products. 2012. Available at: :
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50 Centers for Disease Control and Prevention. State Cigarette Minimum Price Laws — United States, 2009. MMWR Morb Mortal Wkly Rep. 2010;59(13):389-392.
51 Chaloupka FJ, Cummings KM, Morley C, Horan J. Tax, price and cigarette smoking: evidence from the tobacco documents and implications for tobacco company marketing strategies. Tob Control. 2002;11(Supplement 1):i62-i72. doi: 10.1136/tc.11.suppl_1.i62. 52 Chaloupka F. Tobacco Control Lessons Learned: The Impact of State and Local Policies.

ImpacTeen. 2010. Available at:
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53 Chaloupka FJ, Yurekli A, Fong GT. Tobacco taxes as a tobacco control strategy. Tob Control. 2012;21(2):172-180. doi: 10.1136/tobaccocontrol-2011-050417. 54 Maciosek MV, LaFrance AB, St. Claire AW, et al. The 20-year impact of tobacco price and tobacco control expenditure increases in Minnesota, 1998-2017. PLoS ONE. 2020;15(3): e0230364. doi:
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55 Doogan NJ, Wewers ME, Berman M. The Impact of a Federal Cigarette Minimum Pack Price Policy on Cigarette Use in the USA. Tob Control. 2018;27(2):203-208. doi: 10.1136/tobaccocontrol-2016- 053457.
56 Huang J, Gwarnicki C, Xu X, Caraballo RS, Wada R, Chaloupka FJ. A comprehensive examination of own- and cross-price elasticities of tobacco and nicotine replacement products in the U.S. Prev Med. 2018. doi: 10.1016/j. ypmed.2018.04.024.

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57 Pesko MF, Huang J, Johnston LD, Chaloupka FJ. E-cigarette price sensitivity among middle- and high-school students: evidence from monitoring the future. Addiction. 2018;113(5):896-906. doi:

10.1111/add.14119.
58 Jawad M, Lee JT, Glantz S, Millett C. Price elasticity of demand of non-cigarette tobacco products:
a systematic review and meta-analysis. Tob Control. 2018. doi: 10.1136/tobaccocontrol-2017-054056. 59 Centers for Disease Control and Prevention. STATE System Excise Tax Fact Sheet. https://www.cdc.gov/statesystem/factsheets/excisetax/ExciseTax.html Accessed May 27, 2020. 60 Cal. Rev. & Tax. Code § 30111.
61 Schleicher NC, Johnson T, Ahmad I, Henriksen L. Tobacco Marketing in California’s Retail Environment (2011–2014). Palo Alto, CA: Stanford Prevention Research Center, Stanford University School of Medicine. 2015. Available at: https://
www.cdph.ca.gov/Programs/CCDPHP/DCDIC/CTCB/CDPH%20Document%20Library/ResearchandEv aluation/Reports/TobaccoMarketinginCaliforniasRetailEnvironmentNotationsFinal2916.pdf. 62 Federal Trade Commission. Cigarette Report for 2018. 2019. Available at: t:
https://www.ftc.gov/system/files/documents/reports/federal-trade-commission-cigarette-report-2018- smokeless-tobacco-report-2018/p114508cigarettere-port2018.pdf. 63 Wang TW, Falvey K, Gammon DG, et al. Sales Trends in Price-Discounted Cigarettes, Large Cigars, Little Cigars, and Cigarillos-United States, 2011-2016. Nicotine Tob Res. 2018;20(11):1401- 1406. doi: 10.1093/ntr/ntx249.
64 White VM, White MM, Freeman K, Gilpin EA, Pierce JP. Cigarette promotional offers: who takes advantage? Am J Prev Med. 2006;30(3):225-231. doi: 10.1016/j.amepre.2005.11.001. 65 Pierce JP, Gilmer TP, Lee L, Gilpin EA, de Beyer J, Messer K. Tobacco industry price-subsidizing promotions may overcome the downward pressure of higher prices on initiation of regular smoking.

Health Econ. 2005;14(10):1061-1071. doi: 10.1002/hec.990. 66 Ling PM, Glantz SA. Why and How the Tobacco Industry Sells Cigarettes to Young Adults:

Evidence From Industry Documents. Am J Public Health. 2002;92(6):908-916. doi:
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.
67 Lempert LK, Glantz SA. Tobacco Industry Promotional Strategies Targeting American Indians/Alaska Natives and Exploiting Tribal Sovereignty. Nicotine Tob Res. 2019;21(7):940-948. doi:

10.1093/ntr/nty048.
68 Slater SJ, Chaloupka FJ, Wakefield M, Johnston LD, O’Malley PM. The impact of retail cigarette marketing practices on youth smoking uptake. Arch Pediatr Adolesc Med. 2007;161(5):440-445. doi:

10.1001/archpedi.161.5.440.
69 Xu X, Wang X, Caraballo RS. Is Every Smoker Interested in Price Promotions? An Evaluation of Price-Related Discounts by Cigarette Brands. J Public Health Manag Pract. 2016;22(1):20-28. doi:

10.1097/PHH.0000000000000223.
70 Xu X, Pesko MF, Tynan MA, Gerzoff RB, Malarcher AM, Pechacek TF. Cigarette price-minimization strategies by U.S. smokers. Am J Prev Med. 2013;44(5):472-476. doi: 10.1016/j.amepre.2013.01.019. 71 Cal. Health & Safety Code § 118950(b)-(c)(1). The California Supreme Court upheld this law, finding that federal law did not preempt the state law. People v. R.J. Reynolds Tobacco Co., 124 P.3d 408 (Cal. 2005).
72 Chicago Municipal Code § 4-64-905.

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73 New York City Administrative Code § 17-176.1.
74 Oakland, California, Municipal Code § 5.91.040.
75 Providence, Rhode Island Municipal Code § 14-303.
76 Nat’l Ass’n of Tobacco Outlets, Inc. v. City of New York, 27 F. Supp. 3d 415 (S.D.N.Y. 2014). 77 Nat’l Ass’n of Tobacco Outlets, Inc. v. City of Providence, R.I., 731 F.3d 71 (1st Cir. 2013). 78 21 C.F.R. § 1140.16(b).
79 Schleicher NC, Johnson T, Rigdon J, et al. California Tobacco Retail Surveillance Study, 2017.

Available at:
https://www.cdph.ca.gov/Programs/CCDPHP/DCDIC/CTCB/CDPH%20Document%20Library/Research andEvaluation/SurveyInstrumentsTrainingManualsAndProtocols/CaliforniaTobaccoRetailSurveillanceSt udt2017-CTRSS%206-4.pdf.
80 Schleicher NC, Johnson T, Vishwakarma M, et al. California Tobacco Retail Surveillance Study 2018. Available
at:
https://www.cdph.ca.gov/Programs/CCDPHP/DCDIC/CTCB/CDPH%20Document%20Library/Resea rchandEvalua-tion/Reports/CaliforniaTobaccoRetailSurveillanceStudyReport-2018.pdf. 81 Henriksen L, Andersen-Rodgers E, Zhang X, et al. Neighborhood Variation in the Price of Cheap Tobacco Products in California: Results From Healthy Stores for a Healthy Community. Nicotine Tob Res. 2017;19(11):1330-1337. doi: 10.1093/ntr/ntx089.
82 Huang J, Chriqui JF, DeLong H, Mirza M, Diaz MC, Chaloupka FJ. Do state minimum markup/price laws work? Evidence from retail scanner data and TUS-CPS. Tob Control. 2016;25(Suppl 1):i52-i59. doi: 10.1136/tobaccocon- trol-2016-053093.
83 Sonoma County, California Municipal Code § 32A-3(k). 84 Windsor, California Municipal Code § 3-11-115(l).
85 San Leandro Municipal Code § 4-36-150(k).86 Golden SD, Kim K, Kong A, et al. Simulating the Impact of a Cigarette Minimum Floor Price Law on Adult Smoking Prevalence in California. Nicotine Tob Res. 2020;ntaa046. doi: 10.1093/ ntr/ntaa046.
87 Golden SD, Farrelly MC, Luke DA, Ribisl KM. Comparing projected impacts of cigarette floor price and excise tax policies on socioeconomic disparities in smoking. Tob Control. 2016;25(Suppl 1):i60-i66. doi: 10.1136/tobaccocontrol-2016-053230.
88 Brock B, Carlson SC, Moilanen M, Schillo BA. Effectiveness of Local Policy Efforts to Increase the Price of Cheap Cigars in Minnesota. Am J Public Health. 2017;107(1):127-129. doi:

10.2105/AJPH.2016.303517.
89 Hill S, Amos A, Clifford D, Platt S. Impact of tobacco control interventions on socioeconomic inequalities in smoking: review of the evidence. Tob Control. 2014;23(e2):e89-97. doi:

10.1136/tobaccocontrol-2013-051110.
90 Chuang YC, Cubbin C, Ahn D, Winkleby MA. Effects of neighbourhood socioeconomic status and convenience store concentration on individual level smoking. J Epidemiol Community Health. 2005;59(7):568-573. doi: 10.1136/ jech.2004.029041.

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91 Lipperman-Kreda S, Grube JW, Friend KB, Mair C. Tobacco outlet density, retailer cigarette sales without ID checks and enforcement of underage tobacco laws: associations with youths’ cigarette smoking and beliefs. Addiction. 2016;111(3):525-532. doi: 10.1111/add.13179. 92 Novak SP, Reardon SF, Raudenbush SW, Buka SL. Retail tobacco outlet density and youth cigarette smoking: a propensity-modeling approach. Am J Public Health. 2006;96(4):670-676. doi:

10.2105/AJPH.2004.061622.
93 Siahpush M, Jones PR, Singh GK, Timsina LR, Martin J. Association of availability of tobacco products with socio-economic and racial/ethnic characteristics of neighbourhoods. Public Health. 2010;124(9):525-529. doi: 10.1016/j. puhe.2010.04.010.
94 Lee JG, Sun DL, Schleicher NM, Ribisl KM, Luke DA, Henriksen L. Inequalities in tobacco outlet density by race, ethnicity and socioeconomic status, 2012, USA: results from the ASPiRE Study. J Epidemiol Community Health. 2017;71(5):487-492. doi: 10.1136/jech-2016-208475. 95 Loomis BR, Kim AE, Goetz JL, Juster HR. Density of tobacco retailers and its association with sociodemographic characteristics of communities across New York. Public Health. 2013;127(4):333- 338. doi: 10.1016/j.puhe.2013.01.013.
96 Yu D, Peterson NA, Sheffer MA, Reid RJ, Schnieder JE. Tobacco outlet density and demographics:
analysing the relationships with a spatial regression approach. Public Health. 2010;124(7):412-416. doi: 10.1016/j.puhe.2010.03.024.
97 Rodriguez D, Carlos HA, Adachi-Mejia AM, Berke EM, Sargent JD. Predictors of tobacco outlet density nationwide: a geographic analysis. Tob Control. 2013;22(5):349-355. doi:

10.1136/tobaccocontrol-2011-050120.
98 Fakunle DO, Curriero FC, Leaf PJ, Furr-Holden DM, Thorpe RJ. Black, White, or Green? The Effects of Racial Composition and Socioeconomic Status on Neighborhood-Level Tobacco Outlet Density. Ethn Health. 2019;1-16. doi: 10.1080/13557858.2019.1620178. 99 Finan LJ, Lipperman-Kreda S, Abadi M, et al. Tobacco outlet density and adolescents’ cigarette smoking: a meta-analysis. Tob Control. 2018. doi: 10.1136/tobaccocontrol-2017-054065. 100 Schleicher NC, Johnson TO, Fortmann SP, Henriksen L. Tobacco outlet density near home and school: Associations with smoking and norms among US teens. Prev Med. 2016;91:287-293. doi:

10.1016/j.ypmed.2016.08.027.
101 Finan LJ, Lipperman-Kreda S, Abadi M, et al. Tobacco Outlet Density and Adolescents’ Cigarette Smoking: A Meta-Analysis. Tob Control. 2019;28(1):27-33. doi: 10.1136/tobaccocontrol-2017-054065. 102 Lovato CY, Hsu HCH, Sabiston CM, Hadd V, Nykiforuk CIJ. Tobacco Point-of-Purchase marketing in school neighbourhoods and school smoking prevalence: a descriptive study. Can J Public Health. 2007;98(4):265-270. doi: 10.17269/ cjph.98.865.
103 Ribisl KM, Luke DA, Bohannon DL, Sorg AA, Moreland-Russell S. Reducing Disparities in Tobacco Retailer Density by Banning Tobacco Product Sales Near Schools. Nicotine Tob Res. 2017;19(2):239- 244. doi: 10.1093/ntr/ntw185.
104 HG, Henry KA, Scheeres A, et al. Tobacco Retail Licensing and Density 3 Years After License Regulations in Philadelphia, Pennsylvania (2012-2019). Am J Public Health. 2020;110(4):547-553. doi:

10.2105/AJPH.2019.305512.

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105 Cantrell J, Pearson JL, Anesetti-Rothermel A, Xiao H, Kirchner TR, Vallone D. Tobacco Retail Outlet Density and Young Adult Tobacco Initiation. Nicotine Tob Res. 2016;18(2):130-137. doi:

10.1093/ntr/ntv036.
106 Young-Wolff KC, Henriksen L, Delucchi K, Prochaska JJ. Tobacco retailer proximity and density and nicotine dependence among smokers with serious mental illness. Am J Public Health. 2014;104(8):1454-1463. doi: 10.2105/ AJPH.2014.301917.
107 Reitzel LR, Cromley EK, Li Y, et al. The effect of tobacco outlet density and proximity on smoking cessation. Am J Public Health. 2011;101(2):315-320. doi: 10.2105/AJPH.2010.191676. 108 Luke DA, Ribisl KM, Smith C, Sorg AA. Family Smoking Prevention And Tobacco Control Act:
banning outdoor tobacco advertising near schools and playgrounds. Am J Prev Med. 2011;40(3):295- 302. doi: 10.1016/j.amepre.2010.11.018.
109 Fakunle DO, Milam AJ, Furr-Holden CD, Butler J, 3rd, Thorpe RJ, Jr., LaVeist TA. The inequitable distribution of tobacco outlet density: the role of income in two Black Mid-Atlantic geopolitical areas.

Public Health. 2016;136:35-40. doi: 10.1016/j.puhe.2016.02.032. 110 Galiatsatos P, Kineza C, Hwang S, et al. Neighbourhood characteristics and health outcomes:
evaluating the association between socioeconomic status, tobacco store density and health outcomes in Baltimore City. Tob Control. 2017. doi: 10.1136/tobaccocontrol-2017-053945. 111 Berg CJ, Henriksen L, Cavazos-Rehg PA, Haardoerfer R, Freisthler B. The emerging marijuana retail environment: Key lessons learned from tobacco and alcohol retail research. Addict Behav. 2018;81:26-31. doi: 10.1016/j.add- beh.2018.01.040.
112 Feighery EC, Schleicher NC, Boley Cruz T, Unger JB. An examination of trends in amount and type of cigarette advertising and sales promotions in California stores, 2002-2005. Tob Control. 2008;17(2):93-98. doi: 10.1136/ tc.2007.022046.
113 Jernigan DH, Sparks M, Yang E, Schwartz R. Using public health and community partnerships to reduce density of alcohol outlets. Prev Chronic Dis. 2013;10:E53. doi: 10.5888/pcd10.120090. 114 Cal. Bus. & Prof. Code § 23817.5.
115 Bright Research Group for the San Francisco Tobacco-Free Project. Reducing Tobacco Retail Density in San Francisco: A Case Study. 2016. Available at:
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116 Center for Public Health Systems Science. Point-of-Sale Report to the Nation: Realizing the Power of States and Communities to Change the Tobacco Retail and Policy Landscape. St. Louis, MO:

Center for Public Health Systems Science at the Brown School at Washington University in St. Louis and the National Cancer Institute, State and Community Tobac- co Control Research Initiative. 2016.

Available at: t:
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w2.wpmucdn.com/sites.wustl.edu/dist/e/1037/files/2017/10/Reporttothenation_2016-2mfepqr.pdf. 117 Attorneys General Call on Retail Pharmacies to Stop Selling Tobacco Products [press release].

March 28, 2014. Available at:
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118 Henriksen L, Schleicher NC, Barker DC, Liu Y, Chaloupka FJ. Prices for Tobacco and Nontobacco Products in Pharmacies Versus Other Stores: Results From Retail Marketing Surveillance in California and in the United States. Am J Public Health. 2016;106(10):1858-1864. doi:

10.2105/AJPH.2016.303306.

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119 Jin Y, Lu B, Klein EG, Berman M, Foraker RE, Ferketich AK. Tobacco-Free Pharmacy Laws and Trends in Tobacco Retailer Density in California and Massachusetts. Am J Public Health. 2016;106(4):679-685. doi: 10.2105/ AJPH.2015.303040.
120 Polinski JM, Howell B, Gagnon MA, Kymes SM, Brennan TA, Shrank WH. Impact of CVS Pharmacy’s Discontinuance of Tobacco Sales on Cigarette Purchasing (2012-2014). Am J Public Health. 2017;107(4):556-562. doi: 10.2105/ AJPH.2016.303612. 121 Cal. Bus. & Prof. Code § 22963.
122 Prevent All Cigarettes Trafficking Act of 2009, Pub. L. No. 111-154, 124 Stat. 1087 (2009). 123 21 U.S.C. § 387f(d)(4)(A).
124 Food and Drug Administration. Report to Congress — Progress and Effectiveness of the Implementation of the Family Smok- ing Prevention and Tobacco Control Act. U.S. Department of Health and Human Services. 2013. Available at: https:// www.fda.gov/downloads/tobaccoproducts/labeling/rulesregulationsguidance/ucm371271.pdf .
125 Williams RS, Derrick J, Phillips KJ. Cigarette sales to minors via the internet: how the story has changed in the wake of federal regulation. Tob Control. 2017;26(4):415-420. doi:

10.1136/tobaccocontrol-2015-052844.
126 Williams RS, Derrick J, Liebman AK, LaFleur K, Ribisl KM. Content analysis of age verification, purchase and delivery methods of internet e-cigarette vendors, 2013 and 2014. Tob Control. 2018;27(3):287-293. doi: 10.1136/tobaccocontrol-2016-053616. 127 Williams RS, Derrick JC. Internet Little Cigar and Cigarillo Vendors: Surveillance of Sales and Marketing Practices via Website Content Analysis. Prev Med. 2018;109:51-57. doi:

10.1016/j.ypmed.2018.01.017.
128 FDA announces comprehensive regulatory plan to shift trajectory of tobacco-related disease, death [press release]. July 28, 2017. Available at:
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129 Stebbins KR. Tobacco, politics and economics: Implications for global health. Social Science & Medicine. 1991;33(12):1317-1326. doi: 10.1016/0277-9536(91)90275-h. 130 Wang TW, Gentzke A, Sharapova S, Cullen KA, Ambrose BK, Jamal A. Tobacco Product Use Among Middle and High School Students - United States, 2011-2017. MMWR Morb Mortal Wkly Rep. 2018;67(22):629-633. doi: 10.15585/ mmwr.mm6722a3.
131 Pesko MF, Robarats AM. Adolescent Tobacco Use in Urban Versus Rural Areas of the United States: The Influence of Tobacco Control Policy Environments. J Adolesc Health. 2017;61(1):70-76. doi: 10.1016/j.jadohealth.2017.01.019.
132 Chaffee BW, Couch ET, Urata J, et al. Predictors of Smokeless Tobacco Susceptibility, Initiation, and Progression Over Time Among Adolescents in a Rural Cohort. Subst Use Misuse. 2019;54(7):1154-1166. doi: 10.1080/10826084.2018.
133 Healthy Retail SF. https://susanahennessey-lavery.squarespace.com . Accessed July 13, 2018.
134 Davis KC, Grimshaw V, Merriman D, et al. Cigarette trafficking in five northeastern US cities. Tob Control. 2014;23(e1):e62-68. doi: 10.1136/tobaccocontrol-2013-051244.

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135 Kurti MK, von Lampe K, Thompkins DE. The illegal cigarette market in a socioeconomically deprived inner-city area: the case of the South Bronx. Tob Control. 2013;22(2):138-140. doi:

10.1136/tobaccocontrol-2011-050412.
136 World Health Organization. WHO Report on the Global Tobacco Epidemic, 2019: Offer Help to Quit Tobacco Use. 2019. Available at: https://apps.who.int/iris/handle/10665/326043 .
137 California Department of Public Health, California Tobacco Control Program. The #1 Preventable Cause of Death.
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138 Lortet-Tieulent J, Goding Sauer A, Siegel RL, et al. State-Level Cancer Mortality Attributable to Cigarette Smoking in the United States. JAMA Intern Med. 2016;176(12):1792-1798. doi:

10.1001/jamainternmed.2016.6530.
139 Campaign for Tobacco-Free Kids. The Toll of Tobacco in California. ia. https://www.tobaccofreekids.org/problem/toll-us/california. Accessed May 12, 2020. 140 California Tobacco Control Program. California Tobacco Facts and Figures 2016. Sacramento, CA: California Department of Public Health. 2016. Available at: :
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MMWR Surveill Summ. 2018;67(8):1-114 and Supplementary Tables 52-93. Available at:
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143 National Association of Convenience Stores. Convenience Stores and Their Communities. 2019.

Available at: https://www.convenience.org/Topics/CommunityToolkit/How-Stores-Work. 144 McLaughlin I. License to Kill?: Tobacco Retailer Licensing as an Effective Enforcement Tool.

Tobacco Control Legal Consortium. 2010. Available at:
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146 Villanti AC, Johnson AL, Ambrose BK, et al. Flavored Tobacco Product Use in Youth and Adults:

Findings From the First Wave of the PATH Study (2013-2014). Am J Prev Med. 2017;53(2):139-151. doi: 10.1016/j.amepre.2017.01.026.
147 California Department of Public Health, California Tobacco Control Program. 2016 Healthy Stores for a Healthy Com- munity Survey Results-all counties. 2016. Available at:
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148 Hersey JC, Ng SW, Nonnemaker JM, et al. Are menthol cigarettes a starter product for youth? Nicotine Tob Res. 2006;8(3):403-413. doi: 10.1080/14622200600670389.

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149 Wackowski O, Delnevo CD. Menthol cigarettes and indicators of tobacco dependence among adolescents. Addict Behav. 2007;32(9):1964-1969. doi: 10.1016/j.addbeh.2006.12.023. 150 Oliver AJ, Jensen JA, Vogel RI, Anderson AJ, Hatsukami DK. Flavored and nonflavored smokeless tobacco products: rate, pattern of use, and effects. Nicotine Tob Res. 2013;15(1):88-92. doi:

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151 Villanti AC, Johnson AL, Glasser AM, et al. Association of Flavored Tobacco Use With Tobacco Initiation and Subsequent Use Among US Youth and Adults, 2013-2015. JAMA Netw Open. 2019;2(10):e1913804. doi: 10.1001/jamanet-workopen.2019.13804. 152 Yerger VB, Przewoznik J, Malone RE. Racialized geography, corporate activity, and health disparities: tobacco industry targeting of inner cities. J Health Care Poor Underserved. 2007;18(4 Suppl):10-38. doi: 10.1353/hpu.2007.0120.
153 Kreslake JM, Wayne GF, Alpert HR, Koh HK, Connolly GN. Tobacco industry control of menthol in cigarettes and tar- geting of adolescents and young adults. Am J Public Health. 2008;98(9):1685-1692. doi: 10.2105/AJPH.2007.125542.
154 Henriksen L, Schleicher NC, Dauphinee AL, Fortmann SP. Targeted advertising, promotion, and price for menthol cigarettes in California high school neighborhoods. Nicotine Tob Res. 2012;14(1):116-121. doi: 10.1093/ntr/ntr122.
155 Courtemanche CJ, Palmer MK, Pesko MF. Influence of the Flavored Cigarette Ban on Adolescent Tobacco Use. Am J Prev Med. 2017;52(5):e139-e146. doi: 10.1016/j.amepre.2016.11.019. 156 Farley SM, Johns M. New York City flavoured tobacco product sales ban evaluation. Tob Control. 2017;26(1):78-84. doi: 10.1136/tobaccocontrol-2015-052418. 157 Pearlman DN, Arnold JA, Guardino GA, Boles Welsh E. Advancing Tobacco Control Through Point of Sale Policies, Providence, Rhode Island. Prev Chronic Dis. 2019;16:E129. doi:

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158 Hoffmann D, Hoffmann I. Chapter 3: Chemistry and Toxicology. In: Smoking and Tobacco Control Monograph No. 9: Cigars: Health Effects and Trends. National Cancer Institute; 1998. 159 National Cancer Institute. Cigar Smoking and Cancer. 2010; https://www.cancer.gov/about-
cancer/causes-preven-tion/risk/tobacco/cigars-fact-sheet. Accessed July 13, 2018. 160 Waziry R, Jawad M, Ballout RA, Al Akel M, Akl EA. The effects of waterpipe tobacco smoking on health outcomes: an updated systematic review and meta-analysis. Int J Epidemiol. 2017;46(1):32-43. doi: 10.1093/ije/dyw021.
161 Stepanov I, Biener L, Knezevich A, et al. Monitoring tobacco-specific N-nitrosamines and nicotine in novel Marlboro and Camel smokeless tobacco products: findings from Round 1 of the New Product Watch. Nicotine Tob Res. 2012;14(3):274-281. doi: 10.1093/ntr/ntr209. 162 National Cancer Institute. Monograph 2: Smokeless Tobacco or Health: An International Perspective. 1992. 163 Pickworth WB, Rosenberry ZR, Koszowski B. Large Cigars: Smoking Topography and Toxicant Exposure. Nicotine Tob Res. 2018;20(2):183-191. doi: 10.1093/ntr/ntw289. 164 Pickworth WB, Rosenberry ZR, Yi D, et al. Cigarillo and Little Cigar Mainstream Smoke Constituents from Replicated Human Smoking . Chem Res Toxicol. 2018;31(4):251-258. doi:

10.1021/acs.chemrestox.7b00312.
165 Yao T, Ong MK, Max W, et al. Responsiveness to cigarette prices by different racial/ethnic groups of US adults. Tob Control. 2018;27(3):301-309. doi: 10.1136/tobaccocontrol-2016-053434.

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166. Levy DT, Tam J, Kuo C, Fong GT, Chaloupka F. The Impact of Implementing Tobacco Control Policies: The 2017 Tobacco Control Policy Scorecard. J Public Health Manag Pract. 2018;24(5)448- 457. doi: 10.1097/PHH.0000000000000780.
167 Tessman GK, Caraballo RS, Corey CG, Xu X, Chang CM. Exposure to tobacco coupons among U.S. middle and high school students. Am J Prev Med. 2014;47(2 Suppl 1):S61-68. doi:

10.1016/j.amepre.2014.05.001.
168 Mills SD, Golden SD, Henrisksen L. Neighbourhood disparities in the price of the cheapest cigarettes in the USA. J Epidemiol Community Health. 2019;73(9):894-896. doi: 10.1136/jech-2018- 210998.
169 Counter Tobacco. Disparities in Point-of-Sale Advertising and Retailer Density. https://countertobacco.org/resources-tools/evidence-summaries/disparities-in-point-of-sale-advertising- and-retailer-density/. Accessed May 18, 2020.
170 Lempert LK, Glantz SA. Tobacco Industry Promotional Strategies Targeting American Indians/Alaska Natives and Exploiting Tribal Sovereignty. Nicotine Tob Res. 2018. doi:

10.1093/ntr/nty048.
171 Henriksen L, Schleicher NC, Johnson TO, Roeseler A, Zhu SH. Retail Tobacco Marketing in Rural Versus Nonrural Counties: Product Availability, Discounts, and Prices. Health Promot Pract. 2020;21(1_suppl):27S-36S. doi: 10.1177/1524839919888652. 172 Osman A, Queen T, Choi K, Goldstein AO. Receipt of direct tobacco mail/email coupons and coupon redemption: Demographic and socioeconomic disparities among adult smokers in the United States. Prev Med. 2019;126:105778. doi: 10.1016/j.ypmed.2019.105778. 173 Cal. Penal Code § 308.3(a).
174 Gammon DG, Rogers T, Coats EM, et al. National and state patterns of concept-flavoured cigar sales, USA, 2012-2016. Tob Control. 2019;28(4):394-400. doi: 10.1136/tobaccocontrol-2018-054348. 175 Gammon DG, Loomis BR, Dench DL, King BA, Fulmer EB, Rogers T. Effect of price changes in little cigars and cigarettes on little cigar sales: USA, Q4 2011-Q4 2013. Tob Control. 2016;25(5):538- 544. doi: 10.1136/tobaccocon- trol-2015-052343.
176 Jawad M, Lee JT, Glantz S, Millett C. Price elasticity of demand of non-cigarette tobacco products:
a systematic review and meta-analysis. Tob Control. 2018;27(6):689-695. doi: 10.1136/tobaccocontrol- 2017-054056.
177 Ringel JS, Wasserman J, Andreyeva T. Effects of public policy on adolescents’ cigar use: evidence from the National Youth Tobacco Survey. Am J Public Health. 2005;95(6):995-998. doi:

10.2105/AJPH.2003.030411.178 Katz MH. Banning tobacco sales in pharmacies: the right prescription.

JAMA. 2008;300(12):1451-1453. doi: 10.1001/ jama.300.12.1451. 179 Hudmon KS, Fenlon CM, Corelli RL, Prokhorov AV, Schroeder SA. Tobacco sales in pharmacies:
time to quit. Tob Control. 2006;15(1):35-38. doi: 10.1136/tc.2005.012278. 180 Golden SD, K T-M, Kong AY, et al. County-level associations between tobacco retailer density and smoking prevalence in the USA, 2012. Prev Med Rep. 2020; Mar:17:101005. doi:

10.1016/j.pmedr.2019.101005.
181 Leas EC, Schleicher NC, Prochaska JJ, Henriksen L. Place-Based Inequity in Smoking Prevalence in the Largest Cities in the United States. JAMA Intern Med. 2019;179(3):442-444. doi:

10.1001/jamainternmed.2018.5990.

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182 Farley SM, Maroko AR, Suglia SF, Thorpe LE. The Influence of Tobacco Retailer Density and Poverty on Tobacco Use in a Densely Populated Urban Environment. Public Health Rep. 2019;134(2):164-171. doi: 10.1177/0033354918824330.
183 Abdel Magid HS, Halpern-Felsher B, Ling PM, et al. Tobacco Retail Density and Initiation of Alternative Tobacco Product Use Among Teens. J Adolesc Health. 2020;66(4):423-430. doi:

10.1016/j.jadohealth.2019.09.004.
184 Cantrell J, Anesetti-Rothermel A, Pearson JL, Xiao H, Vallone D, Kirchner TR. The impact of the tobacco retail outlet environment on adult cessation and differences by neighborhood poverty.

Addiction. 2015;110(1):152-161. doi: 10.1111/ add.12718. 185 Vyas P, Tsoh JY, Gildengorin G, et al. Disentangling individual and neighborhood differences in the intention to quit smoking in Asian American male smokers. Prev Med Rep. 2020;18:101064. doi:

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186 Shareck M, Datta GD, Vallee J, Kestens Y, Frohlick KL. Is Smoking Cessation in Young Adults Associated With Tobacco Retailer Availability in Their Activity Space? Nicotine Tob Res. 2020;22(4):512-521. doi: 10.1093/ntr/nty242.
187 Rodriguez D, Carlos HA, Adachi-Mejia AM, Berke EM, Sargent J. Retail tobacco exposure: using geographic analysis to identify areas with excessively high retail density. Nicotine Tob Res. 2014;16(2):155-165. doi: 10.1093/ntr/ntt126.
188 Myers AE, Hall MG, Isgett LF, Ribisl KM. A comparison of three policy approaches for tobacco retailer reduction. Prev Med. 2015;74:67-73. doi: 10.1016/j.ypmed.2015.01.025. 189 Luke DA, Hammond RA, Combs T, et al. Tobacco Town: Computational Modeling of Policy Options to Reduce Tobacco Retailer Density. Am J Public Health. 2017;107(5):740-746. doi:

10.2105/AJPH.2017.303685.190 Henriksen L, Schleich- er NC, Ababseh K, Johnson TO, Fortmann SP. Marijuana as a ‘concept’ flavour for cigar products: availability and price near California schools.

Tob Control. 2017. doi: 10.1136/tobaccocontrol-2017-053961. 191 Richter L, Pugh BS, Smith PH, Ball SA. The co-occurrence of nicotine and other substance use and addiction among youth and adults in the United States: implications for research, practice, and policy. Am J Drug Alcohol Abuse. 2017;43(2):132-145. doi: 10.1080/00952990.2016.1193511. 192 Conway KP, Green VR, Kasza KA, et al. Co-occurrence of Tobacco Product Use, Substance Use, and Mental Health Problems Among Youth: Findings From Wave 1 (2013-2014) of the Population Assessment of Tobacco and Health (PATH) Study. Addict Behav. 2018;76:208-217. doi:

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193 DiFranza JR. Best Practices for Enforcing State Laws Prohibiting the Sale of Tobacco to Minors. J Public Health Manag Pract. 2005;11(6):559-565. doi: 10.1097/00124784-200511000-00014. 194 Macinko J, Silver D. Impact of New York City’s 2014 Increased Minimum Legal Purchase Age on Youth Tobacco Use. Am J Public Health. 2018;108(5):669-675. doi: 10.2105/AJPH.2018.304340. 195 Institute of Medicine. Public Health Implications of Raising the Minimum Age of Legal Access to Tobacco Products. Washington, DC: National Academies Press. 2015. 196 793 Flavored tobacco products – Senate Floor Analyses . CA S. Sess. 2019 – 2020, August 25, 2020; https://leginfo.legislature.ca.gov/faces/billAnalysisClient.xhtml# Accessed February 7, 2023.

197 SAY San Diego. San Diego Smoke-Free Project: Results of a Young Adult Tobacco Purchase Survey in National City (Dec 29, 2023); https://www.saysandiego.org. Accessed Jul 5, 2024.

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198 California Tobacco Health Assessment Tool, https://cthat.org. Accessed Jul 5, 2024.

199 C
HULA VISTA CITY COUNCIL, STAFF REPORT NO. 22-0189, TOBACCO SALES: CONSIDER PROHIBITING FLAVORED TOBACCO SALES WITHIN THE CITY OF CHULA VISTA (2022).

200 SAY San Diego. Community survey about tobacco retail sales: results from National City residents (Oct 4, 2023); https://www.saysandiego.org. Accessed Jul 5, 2024.

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Why a Tobacco Retail
License Program
Matters!
2024
Presented by: Manuel Andrade, Senior Prevention Specialist

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Key Concepts
Who is in National City &
who is affected by tobacco?
How does a strong TRL serve
National City residents?
What is a Tobacco Retail
License Program (TRL)?
How can you get involved?

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Key Concepts
Who is in
National City and
who is affected
by tobacco?

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Population: 56,846
Latino: 64.9%
API: 17.6%
White: 10.2%
Under 21 years old: 26.4%
Tobacco Retailers: 54
Schools: 16

81.3% of schools located within 1000 ft.

43.8% of schools located within 500 ft.

National City's Demographics
California Tobacco Health Assessment Tool. (April 2024) Stanford School of Health). Retrieved from: https://cthat.org/

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Tobacco Retailers
San Diego County & National City
California Tobacco Health Assessment Tool. (April 2024) Stanford School of Health. Retrieved from: https://cthat.org/ San Diego County National City

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Nicotine addiction in youth:
makes it harder to concentrate, learn, and control impulses changes, replaces and rewires natural chemicals in the brain, increasing ability to become addicted
The hippocampus and frontal cortex suffer most from drug use, impacting youths’:
decision making
mood
learning
memory
Who is Affected by Tobacco?
Nicotine & Addiction (n.d.). Retrieved from: (https://teen.smokefree.gov/the-risks-of-tobacco/nicotine-addictiSheplayonShipley. T. (2015, August 19). Explainer: The Nicotine Brain. Retrieved From: Nicotine & Addiction (n.d) Retrieved from: (https://teen.smokefree.gov/the-risks-of-tobacco/nicotine-addictiSheplayonShipley. T. (2015, August 19) Exprainers:The Nicotine Brain. Retrived From: https://www.snexplores.org/article/explainer-nico-teen-brainSigns Your Teen May Be Vaping (n.d) Retrived from: https://ruthlessvapor.com/blogs/ruthless-e-liquid/teen-vapingSigns Your Teen May Be Vaping (n.d.). Retrieved from: Nicotine & Addiction (n.d) Retrieved from: (https://teen.smokefree.gov/the-risks-of-tobacco/nicotine-addictiSheplayonShipley. T. (2015, August 19) Exprainers:The Nicotine Brain. Retrived From: https://www.snexplores.org/article/explainer-nico-teen-brainSigns Your Teen May Be Vaping (n.d) Retrived from: https://ruthlessvapor.com/blogs/ruthless-e-liquid/teen-vaping

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Addiction disrupts youth’s hierarchy of needs, desires and dreams, including eating, sleeping, studying, exercise, hygiene, respect etc.

Addiction is defined as a chronic, relapsing disorder characterized by compulsive drug seeking, continued use despite harmful consequences, and long-lasting changes in the brain.

It is considered both a complex brain disorder and a mental illness.

Harm from tobacco and other drugs in youth can be long-term and irreversible The Impact of Addiction
Nicotine = Brain Posion
Clark O. (2020, November 2) Addiction and Maslow Hierarchy of Needs. Retrieved from: https://www.rehab4addiction.co.uk/resources/addiction-maslows-hierarchy-needsFenton R. (2022, February 11) Teen who nearly died from lung damage cause by vaping now relies on oxygen 24/7. Retrived from: https://www.mirror.co.uk/news/us-news/teen-who-nearly-died-lung-26203425February 11)

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The Impact of Addiction
Nicotine Addiction = Severe Lung Damage
Cost B. (2023, November 9). Doctors use breast implants to save lung transplant patient who nearly died from vaping. Retrieved from: https://nypost.com/2023/11/09/lifestyle/doctors-use-breast-implants-to-save-former-vaper-who-nearly-died/Shivastava I (2024, January 20). North Dakota man, only 22 years old, has DOUBLE LUNG transplant caused by his vaping habit: Can never drink or smoke again and will eventually need another new set of lungs fitted https://www.dailymail.co.uk/news/article-12987853/North-Dakota-man-double-lung-transplant-vaping.htmlHarmata C. (2019, August 22). 17-Year-Old Boy's Lungs Completely Blocked from Vaping, Doctors Say. Retrieved from: https://people.com/health/17-year-old-boys-lungs-completely-blocked-from-vaping-doctors-say/San Diego County Communicable Disease Registry. (2021, October 6). Produced by the Epidemiology and Immunization Services Branch. Retrieved from: https://www.sandiegocounty.gov/content/dam/sdc/hhsa/programs/phs/Epidemiology/EVALI%20Summary.pdfHaglage A. (2020, January 10). Teen's graphic images of vaping damage go viral: 'My lung tissue was just completely destroyed'. Retrieved from: https://www.yahoo.com/lifestyle/teens-graphic-images-of-vaping-damage-goes-viral-my-lung-tissue-was-just-completely-destroyed

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Perception, Use, and Where SUHSD Students
Obtain Tobacco Products
Sweetwater Union High School District
(SUHSD) Vaping and Tobacco Survey
(2021)
2,404 survey responses were collected from
students in grades 9-12
from 14 SUHSD campuses.

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SUHSD Vaping & Tobacco Survey
(2021)
City Council Staff Report. (2022, September 27). Tobacco Sales: Consider Prohibiting Flavored Tobacco Sales within the City of Chula Vista. Retrieved from: https://pub-chulavista.escribemeetings.com/filestream.ashx?DocumentId=27896Page 283 of 310 SUHSD Vaping & Tobacco Survey
(2021)
City Council Staff Report. (2022, September 27). Tobacco Sales: Consider Prohibiting Flavored Tobacco Sales within the City of Chula Vista. Retrieved from: https://pub-chulavista.escribemeetings.com/filestream.ashx?DocumentId=27896Page 284 of 310 SUHSD Vaping & Tobacco Survey
(2021)
City Council Staff Report. (2022, September 27). Tobacco Sales: Consider Prohibiting Flavored Tobacco Sales within the City of Chula Vista. Retrieved from: https://pub-chulavista.escribemeetings.com/filestream.ashx?DocumentId=27896Page 285 of 310 Young Adult Tobacco Purchase Survey in National City
(YAPTS)
9 of 50 (18%) stores sold tobacco products to an underage volunteer – eight illegal sales occurred at convenience type stores, the other occurred at a smoke shop.
14 of 50 (26%) store clerks failed to ask investigators for their ID, including during 4 of the 9 illegal sales.

National City has four smoke shops. Only one National City smoke shop had 21+ signage and No investigators were carded at smoke shop doors.

Young Adult Tobacco Purchase. San Diego Smoke-Free Project . 2023. Funded by CDPH under contract #20-10005 San Diego Smoke-Free Project measured how often National City tobacco retailers would sell tobacco to underage (18-19 year old) volunteers.

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San Diego Unified Youth Risk Behavior Survey
(RYAS - 2023)
What risks are our high school students taking?
Alcohol, Tobacco & Other Drug Use

31.4% Have used an electronic vapor product (e.g., e-cigarette, vape pipe, hookah pen, JUUL, etc.
22% Drank alcohol during the 30 days before taking the survey

11.6% Report current binge drinking

18.6% Report regular marijuana use
San Diego Unified School District (2023). High School Youth Risk Behavior Surveillance System- San Diego. Retrieved from: https://nccd.cdc.gov/Youthonline/App/Results.aspx? TT=A&OUT=0&SID=HS&QID=QQ&LID=XX&YID=2017&LID2=&YID2=&COL=S&ROW1=N&ROW2=N&HT=QQ&LCT=LL&FS=S1&FR=R1&FG=G1&FA=A1&FI=I1&FP=P1&FSL=S1&FRL=R1&FGL=G1&FAL=A1&FIL=I1&FPL=P1&PV=&TST=False&C1=&C2=&QP=G& DP=1&VA=CI&CS=Y&SYID=&EYID=&SC=DEFAULT&SO=ASC#PageTop Page 287 of 310 Key Concepts
What is a Tobacco
Retail License
Program?

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Tobacco Retail License
(TRL) Programs
A local policy containing a framework of all
laws related to the sale of tobacco
products
Includes a fee to obtain a license to sell
tobacco, which funds all compliance
checks (not tax dollars)
Strong TRLs protect youth

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Benefits of a Comprehensive
Tobacco Retail License Program
Protects the community from illegal sales
Reduces youth access to tobacco
products
Ensures retailers who violate the tobacco
laws are held accountable
Reduces the availability of tobacco
products and advertising
Customizable!
It can be strengthened and improved
ConvenienceStore
Counter Tobacco (n.d). Licensing, Zoning and Retailer Density . Retrieved from: https://countertobacco.org/policy/licensing-andzoning/#:~:text=Another%20benefit%20of%20tobacco%20retailer%20licensing%20programs%20is,the%20total%20number%20of%20retailers%20and%20reduce%20density

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County of San Diego TRL National City has no TRL
Annual compliance checks
Strong penalties for violations including
suspension of TRL
Tobacco Control Resource Program
(HHSA) responsible for enforcement
New retailers within 500 feet of an
existing licensed tobacco retailer are
NOT eligible for a TRL
Cap of 330 TRLs in the Unincorporated
Area
Minimum price and pack requirement
Pharmacies are NOT eligible for a TRL
The annual TRL fee is $730*
San Diego Smoke-Free Project is
organizing a community coalition to
advocate for the adoption of a TRL in
National City.

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Tobacco Retail License ProgramComponents
Fees
Flavors
Compliance
Density
Penalties

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Which Which componentscomponents of a Tobacco Retail License of a Tobacco Retail License couldcould be included in National City’s program? be included in National City’s program? A. Compliance/Enforcement
B. Flavors
C. Density
D. Fees

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Key Concepts
How does a
strong TRL serve
National City
residents?

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National City Public Opinion Poll
Survey Results
N=113
79% Agreed flavored tobacco products often appeal to youth and would support a law that ends the sale of any flavored tobacco product.
88% Agreed that store owners in the community should have a license to sell tobacco products the same way they are licensed to sell alcohol.
86% Agreed a tobacco retail licensing ordinance would reduce tobacco sales to minors in National City.

93% Agreed licensed tobacco retailers who repeatedly violate the law should have their license revoked.

Public Opinion Poll. San Diego Smoke-Free Project . 2023. Funded by CDPH under contract #20-10005 Page 296 of 310 Tobacco Retail License Program for National City
The strongest TRL for
National City would
include the following
components:

Additional
components to
consider:

Strong penalties for
retailers who violate the
law
Retailers required to ask
for ID
National City Police
Department responsible
for enforcement
Cover the costs of
compliance checks with
the license fee amount
Assess all retailers annually
Set a minimum tobacco
price and pack size
Prohibit pharmacies from
having a TRL
Limit the number of
retailers that sell tobacco
Prohibit the sale of ALL
flavored tobacco products
Set distance from youth
sensitive areas

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Manuel Andrade, MA | Senior Prevention Specialist
San Diego Smoke-Free Project
[email protected]
Cynthia Knapp, MPH | Program Manager
SAY San Diego | [email protected]
For questions and additional information,
please contact:

San Diego Smoke-Free Project is a project of SAY San Diego and is funded by CDPH contract #20-10005Page 298 of 310 References
California Tobacco Health Assessment Tool. (April 2024) Stanford School of Health). Retrieved from: California Tobacco Health Assessment Tool. Stanford School of Health) Retrieved from:
https://cthat.org/temp/46f681cc5cd92e951fe8ca1c61083daa/CCHAT_Report_National_City.pdf San Diego Unified School District (2021). High School Youth Risk Behavior Surveillance System- San Diego. Retrieved from: ://www.sandiegounified.org/departments/sexual_health_education/surveillance/youth_risk_behavior_survey Nicotine & Addiction (n.d.). Retrieved from: (https://teen.smokefree.gov/the-risks-of-tobacco/nicotine-addictiSheplayon Shipley. T. (2015, August 19). Explainer: The Nicotine Brain. Retrieved From: California Tobacco Health Assessment Tool. Stanford School of Health) Retrieved from:
https://cthat.org/temp/46f681cc5cd92e951fe8ca1c61083daa/CCHAT_Report_National_City.pdf San Diego Unified School District (2021). High School Youth Risk Behavior Surveillance System- San Diego. Retrieved from: ://www.sandiegounified.org/departments/sexual_health_education/surveillance/youth_risk_behavior_survey Signs Your Teen May Be Vaping (n.d.). Retrieved from: California Tobacco Health Assessment Tool. Stanford School of Health) Retrieved from: https://cthat.org/temp/46f681cc5cd92e951fe8ca1c61083daa/CCHAT_Report_National_City.pdf San Diego Unified School District (2021). High School Youth Risk Behavior Surveillance System- San Diego. Retrieved from: ://www.sandiegounified.org/departments/sexual_health_education/surveillance/youth_risk_behavior_survey Clark O. (2020, November 2)Addiction and Maslow Hierarchy of Needs. Retrieved from: California Tobacco Health Assessment Tool. Stanford School of Health) Retrieved from:
https://cthat.org/temp/46f681cc5cd92e951fe8ca1c61083daa/CCHAT_Report_National_City.pdf San Diego Unified School District (2021). High School Youth Risk Behavior Surveillance System- San Diego. Retrieved from: ://www.sandiegounified.org/departments/sexual_health_education/surveillance/youth_risk_behavior_survey Fenton R. (2022, February 11) Teen who nearly died from lung damage cause by vaping now relies on oxygen 24/7. Retrieved from: California Tobacco Health Assessment Tool. Stanford School of Health) Retrieved from:
https://cthat.org/temp/46f681cc5cd92e951fe8ca1c61083daa/CCHAT_Report_National_City.pdf San Diego Unified School District (2021). High School Youth Risk Behavior Surveillance System- San Diego. Retrieved from: ://www.sandiegounified.org/departments/sexual_health_education/surveillance/youth_risk_behavior_survey) Cost B. (2023, November 9).Doctors use breast implants to save lung transplant patient who nearly died from vaping. Retrieved from: https://nypost.com/2023/11/09/lifestyle/doctors-use-breast-implants-to-save-former-vaper-who-nearly-died/ Shrivastava I. (2024, January 20). North Dakota man, only 22 years old, has DOUBLE LUNG transplant caused by his vaping habit: Can never drink or smoke again and will eventually need another new set of lungs fitted https://www.dailymail.co.uk/news/article-12987853/North-Dakota-man-double-lung-transplant-vaping.html Harmata C. (2019, August 22). 17-Year-Old Boy's Lungs Completely Blocked from Vaping, Doctors Say. Retrieved from: https://people.com/health/17-year-old-boys-lungs-completely-blocked-from-vaping-doctors-say/ San Diego County Communicable Disease Registry. (2021, October 6). Produced by the Epidemiology and Immunization Services Branch. Retrieved from:
https://www.sandiegocounty.gov/content/dam/sdc/hhsa/programs/phs/Epidemiology/EVALI%20Summary.pdf Haglage A. (2020, January 10). Teen's graphic images of vaping damage go viral: 'My lung tissue was just completely destroyed'. Retrieved from: https://www.yahoo.com/lifestyle/teens-graphic-images-of-vaping-damage-goes-viral-my-lung-tissue- was-just-completely-destroyed
City Council Staff Report (2022, September 27). Tobacco Sales: Consider Prohibiting Flavored Tobacco Sales within the City of Chula Vista. Retrieved from: California Tobacco Health Assessment Tool. Stanford School of Health) Retrieved from:
https://cthat.org/temp/46f681cc5cd92e951fe8ca1c61083daa/CCHAT_Report_National_City.pdf San Diego Unified School District (2021). High School Youth Risk Behavior Surveillance System- San Diego. Retrieved from: ://www.sandiegounified.org/departments/sexual_health_education/surveillance/youth_risk_behavior_survey Young Adult Tobacco Purchase. San Diego Smoke-Free Project. (2023). Funded by CDPH under contract #20-10005 San Diego Unified School District. (2023). High School Youth Risk Behavior Surveillance System- San Diego. Retrieved from: California Tobacco Health Assessment Tool. Stanford School of Health) Retrieved from:
https://cthat.org/temp/46f681cc5cd92e951fe8ca1c61083daa/CCHAT_Report_National_City.pdf San Diego Unified School District (2021). High School Youth Risk Behavior Surveillance System- San Diego. Retrieved from: ://www.sandiegounified.org/departments/sexual_health_education/surveillance/youth_risk_behavior_survey Counter Tobacco (n.d.). Licensing, Zoning and Retailer Density. Retrieved from: https://countertobacco.org/policy/licensing-and zoning/#:~:text=Another%20benefit%20of%20tobacco%20retailer%20licensing%20programs%20is,the%20total%20number%20of%20retailers%20and%20reduce%20density Public Opinion Poll. San Diego Smoke-Free Project. 2023. Funded by CDPH under contract #20-10005 Merriam-Webster. (n.d.). Advocacy. In Merriam-Webster.com dictionary. Accessed (April, 13 2021). Retrieved from California Tobacco Health Assessment Tool. Stanford School of Health) Retrieved from:
https://cthat.org/temp/46f681cc5cd92e951fe8ca1c61083daa/CCHAT_Report_National_City.pdf San Diego Unified School District (2021). High School Youth Risk Behavior Surveillance System- San Diego. Retrieved from: ://www.sandiegounified.org/departments/sexual_health_education/surveillance/youth_risk_behavior_surveyPage 299 of 310

AGENDA REPORT

Department: Community Development
Prepared by: Pedro Garcia, Community Development Specialist III Meeting Date: Tuesday, March 4, 2025
Approved by: Benjamin A. Martinez, City Manager

SUBJECT:

Discussion of Amending Chapter 9.60 of the National City Municipal Code to Expand Operating Hours for Store Front Cannabis Retail Facilities.

RECOMMENDATION:

Staff recommends that the City Council consider amending Chapter 9.60 of the National City Municipal Code to expand operating hours for store front cannabis retailers from the current hours to six a.m. to ten p.m., seven days a week, in alignment with California State regulations.

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

In response to a Policy 105 Request by Vice-Mayor Bush following a meeting with Sessions by the Bay, a cannabis consumption lounge, the City Council requested that consideration of modifying hours of operation for licensed cannabis retailers in National City be placed on the Council agenda for discussion and consideration. This request was presented at the February 18, 2025 City Council meeting, where it was voted on and approved for placement on the March 4, 2025 agenda for discussion.

The current National City Municipal Code (NCMC) Section 9.60.250(G) limits operating hours for store front cannabis retailers from nine a.m. to nine p.m. daily. The proposed amendment seeks to expand retail operating hours to six a.m. to ten p.m., consistent with California State law, which allows cannabis retailers to operate within these hours. This change is intended to:

 Align local regulations with State law, promoting consistency for cannabis businesses operating in National City.
 Support economic growth by allowing cannabis retailers to maximize operational hours.  Enhance community safety and compliance by regulating hours uniformly across all licensed cannabis retailers.

This amendment will affect all licensed cannabis retailers operating within National City. It does not increase the nu mber of cannabis licenses or modify any other operational regulations. The amendment strictly pertains to operating hours. Similarly, this amendment does not modify operating hours for non-store front (delivery) retail facilities.

The ordinance proposes to amend NCMC Section 9.60.250(G) to read:

“Operating hours of the Store Front Retailer License shall be limited to the hours of six a.m. through ten p.m., seven days a week.”

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FINANCIAL STATEMENT:

There is no direct financial impact on the City’s General Fund from this ordinance. Indirect economic benefits may be realized through increased sales tax revenue from extended operational hours for cannabis retailers.

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Balanced Budget and Economic Development

ENVIRONMENTAL REVIEW:

This is not a project under CEQA , and is therefore , not subject to environmental review.

CCR15378; PRC 21065.

PUBLIC NOTIFICATION:

The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act

ORDINANCE:

Not Applicable

EXHIBITS:

Exhibit A – Draft Ordinance
Exhibit B – Ordinance Redline

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ORDINANCE NO. 2025 -

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, AMENDING CHAPTER 9.60 "COMMERCIAL CANNABIS ACTIVITY " OF THE NATIONAL

CITY MUNICIPAL CODE TO MODIFY OPERATING HOURS FOR STORE FRONT RETAIL FACILITIES.

WHEREAS, Chapter 9.60 of the National City Municipal Code regulates the cultivation, processing, manufacturing, testing, sale, delivery, distribution, and transportation of cannabis and cannabis products to protect the health, safety, and welfare of the residents of the City of National City (“City”); and

WHEREAS, the regulations of Chapter 9.60 include operating requirements for various types of cannabis businesses, including limitations on operating hours for store front retail facilities; and

WHEREAS, the proposed amendments to Chapter 9.60 of the National City Municipal Code would modify the operating hours for store front retail facilities to expand such hours to 6:00 a.m. to 10:00 p.m., consistent with state law.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, HEREBY ORDAINS AS FOLLOWS:

Section 1: That the City Council hereby amends Chapter 9.60 of the National City Municipal Code, entitled “Commercial Cannabis Activity,” by amending section 9.60.250 to read as follows:

9.60.250 Additional operating requirements for store front retail facilities.

A. Retailers shall verify the age and all necessary documentation of each individual to ensure the customer is not under the age of eighteen years. If the potential customer is eighteen to twenty years old, retailer shall confirm the customer's possession of a valid doctor's recommendation and/or Health and Safety Code Section 11362.71 identification card (medical cannabis card). For adult use or recreational purchases, retailers shall verify that all customers are twenty -one years of age or older for the purchase of cannabis or cannabis products.

1. Access to the premises of a retail licensee/permittee shall be limited to individuals who are at least twenty-one years of age.

2. Notwithstanding Section 9.60.250(A)(1), individuals who are at least eighteen years of age and in possession of a valid physician's recommendation shall be granted access to the premises of a retail licensee/permittee for the sole purpose of purchasing medicinal cannabis consistent with the physician's recommendation.

These documents must also be shown at the point of sale station at the time of

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purchase. Doctor recommendations are not to be obtained or provided at the retail location.

B. Entrances into the retailer shall be locked at all times with entry strictly controlled. A "buzz-in" electronic/mechanical entry system shall be utilized to limit access to and entry to the retailer to separate it from the reception/lobby area.

C. Retailers may have only that quantity of cannabis and cannabis products to meet the daily demand readily available for sale on -site in the retail sales area of the retailer.

Additional product may be stored in a secured, locked area to which customers, vendors, and visitors shall not have access.

D. All restroom facilities shall remain locked and under the control of management.

All individuals granted access to the limited access area shall be at least twenty -one years of age, and if not employed by the retailer, shall be escorted at all ti mes by an employee of the licensee/permittee. A retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the city manager or their designee upon request.

F. Microbusiness Commercial Activity. All cultivation, manufacturing, distribution, and retail activities performed by a licensee under a Type 12 -Microbusiness permit shall occur on the same licensed premises. Areas of the premises for manufacturing and cultivation shall be separated from the distribution and retail areas by a wall and all doors between the areas shall remain closed when not in use.

G. Operating hours of the Store Front Retailer License shall be limited to the hours of six a.m. through ten p.m., seven days a week.

H. Store Front/Retail Security Requirements. All provisions incorporated within Section

9.60.230(M) of this chapter (security requirements), are directly applicable to and binding on all commercial cannabis businesses, including all store front/retail businesses. Uniformed licensed security personnel shall be employed to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities. Security personnel may be allowed to carry firear ms if permitted by San Diego County sheriff's department and authorized by the chief of police.

Section 2: This Ordinance shall take effect and be in force thirty (30) days from the date of its passage, and before the expiration of fifteen (15) days after its passage, it or a summary of it, shall be published once, with the names of the members of the City Council voting for and against the same in the Star News, a newspaper of general circulation published in the County of San Diego, California.

Section 3: The City Clerk shall certify to the adoption of this Ordinance and shall public in accordance with the law.

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INTRODUCED at a regular meeting of the City Council of the City of National City, California, held on this __th day of ______, 2025.

PASSED and ADOPTED this _____ of ________________, 2025.

Ron Morrison, Mayor
ATTEST:

Shelley Chapel, MMC, City Clerk

APPROVED AS TO FORM:

Barry J. Schultz, City Attorney

Page 304 of 310 ends

9.60.250 Additional operating requirements for store front retail facilities.

A. Retailers shall verify the age and all necessary documentation of each individual to ensure the customer is not under the age of eighteen years. If the potential customer is eighteen to twenty years old, retailer shall confirm the customer's possession of a valid doctor's recommendation and/or Health and Safety Code Section 11362.71 identification card (medical cannabis card). For adult use or recreational purchases, retailers shall verify that all customers are twenty-one years of age or older for the purchase of cannabis or cannabis products.

1. Access to the premises of a retail licensee/permittee shall be limited to individuals who are at least twenty-one years of age.

2. Notwithstanding Section 9.60.250(A)(1), individuals who are at least eighteen yea rs of age and in possession of a valid physician's recommendation shall be granted access to the premises of a retail licensee/permittee for the sole purpose of purchasing medicinal cannabis consistent with the physician's recommendation.

3. All individuals seeking access to the commercial cannabis retail business must show their government - issued identification, and, if appropriate, doctor's recommendation of Medical Cannabis card, in order to gain access into the retailer. These documents must also be sh own at the point of sale station at the time of purchase. Doctor recommendations are not to be obtained or provided at the retail location.

B. Entrances into the retailer shall be locked at all times with entry strictly controlled. A "buzz -in" electronic/mechanical entry system shall be utilized to limit access to and entry to the retailer to separate it from the reception/lobby area.

C. Retailers may have only that quantity of cannabis and cannabis products to meet the daily demand readily available for sale on-site in the retail sales area of the retailer. Additional product may be stored in a secured, locked area to which customers, vendors, and visitors shall not have access.

D. All restroom facilities shall remain locked and under the control of mana gement.

E. Limited Access Areas. A retailer shall establish limited-access areas and permit only authorized individuals to enter the limited-access areas. Authorized individuals include individuals employed by the retailer as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area. All individuals granted access to the limited access area shall be at least twenty -one years of age, and if not employed by the retailer, shall be escorted at all times by an employee of the licensee/permittee.

A retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the city manager or their designee u pon request.

Areas of the premises for manufacturing and cultivation shall be separated from the distribution and retail areas by a wall and all doors between the areas shall remain closed when not in use.

G. Operating hours of the Store Front Retailer License shall be limited to the hours of sixnine a.m. through tennine p.m., seven days a week.

H. Store Front/Retail Security Requirements. All provisions incorporated within Section 9.60.230(M) of this chapter (security requirements), are directly applicable to and binding on all commercial cannabis businesses, including all store front/retail businesses. Uniformed licensed security personnel shall be employed to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities. Security personnel may be allowed to carry firearms if permitted by San Diego County sheriff's department and authorized by the chief of police. (Ord. No. 2021-2487, 5-4-2021)

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AGENDA REPORT

Department: Finance
Prepared by: Bruce Foltz, Director of Finance
Meeting Date: Tuesday, March 4, 2025
Approved by: Benjamin A. Martinez, City Manager

SUBJECT:

City Council Expenditure Report: July 2024 through January 2025

RECOMMENDATION:

Receive and File Expenditure Report for the City Council for the period of July 2024 Through January 2025

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

On June 4, 2024 the City Council of the City of National City adopted the Fiscal Year 2025 , operating and capital budget. Within the City’s adopted General Fund budget of $73,572,536, an additional $400,000 was allocated to the City Council ’s total operating budget of $832,684. The adopted budget allocated $100,000 to each of the four Council Districts to support each of the City Councilmembers in providing better customer service to the individual Districts. These funds can be used in any combination towards necessary operating cost and support staff. Along with the additional allocation of resources, the City Council also updated City Council Policy No. 121, which identified the parameters and eligible uses of these funds. These funds may be used to support full or par t-time staffing, professional services, travel, training, and conferences. These funds shall not be used to contribute to or support non -profit or tax -exempt organizations, for political activities, or gifts of public funds. The use of these funds shall be in alignment with the City adopted Strategic Plan and must be used in accordance with the City’s purchasing policy.

All funds will expire at the end of the fiscal year and may not be carried over to subsequent years.

This report, detailed in Exhibit A, encompasses the period of July 1, 2024 through January 31, 2025, and is an analysis of the expenditure s of the Mayor ’s Office and each of the four City Councilmember’s operating budgets. Below is a summary of that report. This table reflects the first seven months of actual expenditures in relation to the adopted budget and the available funds for this fiscal year.

FY 2025 FY 2025 FY 2025 Actual to
Annual July to January Remaining Budget
Total City Council Expenditures Budget Actual Exp. Balance Percentage Councilmembers Salary & Benefits 263,706.00 148,176.87 115,529.13 56% Support Staff Salary & Benefits 363,978.00 237,142.65 126,835.35 65% Operating Expenditures 205,000.00 17,570.58 187,429.42 9% Total 832,684.00 402,890.10 429,793.90 48%

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Exhibit A shows the comparison of actual expenditures to budget for each of the four Council Districts along with the Mayor’s Office. For the first seven months or 7/12th (58%) of the fiscal year completed, total expenditures for this fiscal year are $402,890 compared to the adopted budget of $832,684. Year-to-date expenditures represent 48% of the current year’s budget with a remaining balance of $429,793.

FINANCIAL STATEMENT:

Presented in Exhibit A.

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Balanced Budget and Economic Development

ENVIRONMENTAL REVIEW:

This is not a project under CEQA , and is therefore , not subject to environmental review.

CCR15378; PRC 21065.

PUBLIC NOTIFICATION:

The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act

ORDINANCE:

Not Applicable

EXHIBIT:

Exhibit A – City Council Expenditure Report

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FY 2025 FY 2025 FY 2025 Actual to
Annual July to January Remaining Budget
Mayor Ron Morrison Budget Actual Exp. Balance Percentage Councilmember Salary & Benefits 109,274.00 67,713.12 41,560.88 62% Support Staff Salary & Benefits 123,978.00 68,853.62 55,124.38 56% Operating Expenditures 45,000.00 3,433.14 41,566.86 8% Total 278,252.00 139,999.88 138,252.12 50% FY 2025 FY 2025 FY 2025 Actual to
Annual July to January Remaining Budget
District 1 Luz Molina Budget Actual Exp. Balance Percentage Councilmember Salary & Benefits 38,608.00 19,787.69 18,820.31 51% Support Staff Salary & Benefits 60,000.00 32,058.80 27,941.20 53% Operating Expenditures 40,000.00 1,955.28 38,044.72 5% Total 138,608.00 53,801.77 84,806.23 39% FY 2025 FY 2025 FY 2025 Actual to
Annual July to January Remaining Budget
District 2 Jose Rodriguez Budget Actual Exp. Balance Percentage Councilmember Salary & Benefits 38,608.00 19,787.69 18,820.31 51% Support Staff Salary & Benefits 60,000.00 50,197.45 9,802.55 84% Operating Expenditures 40,000.00 1,267.59 38,732.41 3% Total 138,608.00 71,252.73 67,355.27 51% FY 2025 FY 2025 FY 2025 Actual to
Annual July to January Remaining Budget
District 3 Ditas Yamane Budget Actual Exp. Balance Percentage Councilmember Salary & Benefits 38,608.00 19,348.78 19,259.22 50% Support Staff Salary & Benefits 60,000.00 37,448.61 22,551.39 62% Operating Expenditures 40,000.00 10,475.68 29,524.32 26% Total 138,608.00 67,273.07 71,334.93 49% For the Period July 2024 through January 2025
City Council Actual to Budget Expenditures
FY 2025
Exhibit A

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FY 2025 FY 2025 FY 2025 Actual to
Annual July to January Remaining Budget
District 4 Marcus Bush Budget Actual Exp. Balance Percentage Councilmember Salary & Benefits 38,608.00 21,539.59 17,068.41 56% Support Staff Salary & Benefits 60,000.00 48,584.17 11,415.83 81% Operating Expenditures 40,000.00 438.89 39,561.11 1% Total 138,608.00 70,562.65 68,045.35 51% FY 2025 FY 2025 FY 2025 Actual to
Annual July to January Remaining Budget
Total City Council Expenditures Budget Actual Exp. Balance Percentage Councilmembers Salary & Benefits 263,706.00 148,176.87 115,529.13 56% Support Staff Salary & Benefits 363,978.00 237,142.65 126,835.35 65% Operating Expenditures 205,000.00 17,570.58 187,429.42 9% Total 832,684.00 402,890.10 429,793.90 48%

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CITY COUNCIL ITEM REQUEST
The City Council Item Request Form is for members of the City Council to submit written requests to the City Manager’s Office for inclusion of an item on a future City Council Meeting Agenda. At the meeting where the initial written request is heard, discussion should be limited to whether the item should be added to an agenda and a date, not the merit of the item. A majority vote of the City Council is required for the item to be added to a future City Council Meeting Agenda for action.

Requesting Member of City Council: Council Member Rodriguez Today’s Date: Tuesday, February 25th, 2025
Is this matter considered Time-Sensitive by another entity deadline? Yes

WRITTEN REQUEST
I, Council Member Rodriguez hereby request that the following item be placed on the National City Council meeting agenda for consideration on Tuesday, March 4th 2025. Ordinance attached as part of the request.

Discussion on section 8.32.015 - Restrictions on keeping certain animals, birds and reptiles. Specifically regarding allowing chickens within residential properties larger than 4,000 sq ft.

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National City City CouncilMarch 4, 2025

National City City Council
March 4, 2025