PROPOSED
Packet Pg. 1070 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Personnel
The following table depicts the personnel assigned by division within the Public Works Department:
Description FY 2023-24 FY 2024-25 FY 2024-25 FY 2025-26 Increase FY 2026-27 Increase Actual Adopted Amended Proposed (Decrease) Proposed (Decrease) F/T 37.00 37.00 37.00 39.00 2.00 39.00 -
Public Works - Engineering P/T 2.40 2.40 2.40 2.40 - 2.40 - Total 39.40 39.40 39.40 41.40 2.00 41.40 -
F/T 16.00 16.00 16.00 17.00 1.00 17.00 -
Streets P/T 2.40 2.40 2.40 2.50 0.10 2.50 -
Total 18.40 18.40 18.40 19.50 1.10 19.50 -
F/T 15.00 15.00 15.00 15.00 - 15.00 -
ET/USA Locate P/T - - - - - - -
Total 15.00 15.00 15.00 15.00 - 15.00 -
F/T 9.00 9.00 9.00 9.00 - 9.00 -
P/T - - - - - - -
Redding Municipal Utility
Administration
Total 9.00 9.00 9.00 9.00 - 9.00 -
F/T 21.00 21.00 21.00 21.00 - 21.00 -
Fleet P/T - - - - - - -
Total 21.00 21.00 21.00 21.00 - 21.00 -
F/T 1.00 1.00 1.00 1.00 - 1.00 -
Parking P/T - - - - - - -
Total 1.00 1.00 1.00 1.00 - 1.00 -
F/T 31.00 31.00 31.00 32.00 1.00 32.00 -
Water Utility P/T 2.88 2.88 2.88 3.50 0.62 3.50 -
Total 33.88 33.88 33.88 35.50 1.62 35.50 -
F/T 43.00 43.00 43.00 49.00 6.00 49.00 -
Wastewater Utility P/T 1.44 1.44 1.44 1.50 0.06 1.50 -
Total 44.44 44.44 44.44 50.50 6.06 50.50 -
F/T 80.00 84.00 84.00 83.00 (1.00) 83.00 -
Solid Waste Utility P/T 0.96 0.96 0.96 2.00 1.04 2.00 - Total 80.96 84.96 84.96 85.00 0.04 85.00 -
F/T 6.00 8.00 8.00 7.00 (1.00) 7.00 -
Storm Drain Utility P/T 1.44 1.44 1.44 2.25 0.81 2.25 - Total 7.44 9.44 9.44 9.25 (0.19) 9.25 -
F/T 13.00 13.00 13.00 13.00 - 13.00 -
West Central Landfill P/T - - - - - - -
Total 13.00 13.00 13.00 13.00 - 13.00 -
F/T 272.00 278.00 278.00 286.00 8.00 286.00 -
Total P/T 11.52 11.52 11.52 14.15 2.63 14.15 -
Total 283.52 289.52 289.52 300.15 10.63 300.15 -
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 239
PROPOSED
Packet Pg. 1071 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Significant Issues
Storm Drain Utility
The Storm Drain utility continues to realize an increasing deterioration to the storm drain system with insufficient resources to maintain and replace the system as necessary. Unlike the other utilities, the Storm Drain utility is exempt from Proposition 218 requirements and therefore any proposed increase in rates is designated a special tax and subject to two thirds voter approval.
Consequently, the rate has not changed since inception in 1994. In addition, unfunded State-mandated storm water quality related requirements are increasing, adding to demands that are a struggle to meet with current resources. This proposed budget includes funding contributions from the other municipal utilities in proportion to their impact on the storm drain system.
Transient issues continue to affect the Utility with a significant amount of trash impacting the waterways, causing flooding, and damaging infrastructure.
No new positions are request for this budget.
Water
Increasing state regulations regarding ground water management and water conservation will require additional resources and affect the Utility’s revenues and expenditures in this budget cycle and into the future. The State Water Board has developed efficient water use targets that will require the City to set an annual water budget as Californians “make water conservation a way of life.” Aging infrastructure replacement continues to be a priority to reduce the number and impact of water main breaks.
One new Public Works Maintenance Worker is requested in Division 6104, Water Distribution, in FY 25-26 to assist in routine maintenance of the distribution system, including fire hydrants and valves.
Wastewater
The Wastewater utility is facing multiple challenges including aging infrastructure, substantial infiltration and inflow of groundwater (I&I), and regulation changes directly affecting biosolids disposal and laboratory operations, including the requirement to sample for Per and Polyfluoroalkyl Substances (PFAS), potentially requiring additional treatment process for removal. Chemical availability and increased costs are significant challenges facing the utility. The addition of the Pyrolysis system as well as the planned introduction of Food Waste Codigestion at the Clear Creek Treatment Plant are significant investments and have added many additional pieces of equipment, increasing the maintenance burden on staff. These issues increase operation, maintenance and treatment costs due to significant repairs, software investments, enhanced training requirements, dramatically increased workload in the laboratories, and increase the City’s exposure to regulatory penalties and third-party lawsuits. With the past developments, additional lift stations have been added to the system that require routine maintenance.
One Plant Mechanic position is requested to Clear Creek Wastewater Treatment Plant, in FY 25-26 to maintain new and existing equipment between both the Stillwater and Clear Creek Wastewater Treatment Plants. One Laboratory Technician position is requested to Clear Creek Wastewater Treatment Plant Laboratory in FY 25-26 to assist with the regulatory requirements of the Environmental Laboratory Accreditation Program (ELAP) standards and National Pollutant Discharge Elimination System (NPDES) permits of both treatment plants. One Wastewater Collections Lead Worker is requested to the Collections System Division in FY 25-26 to assist with maintenance, lift stations, and repair of sewer trunk-lines.
Electrical Technicians (ET)
A new Electrical Technician position is requested for FY 25-26 to assist all other ET’s with Supervisory Control and Data Acquisition (SCADA) development and maintenance for both the Water and Wastewater Utilities, the Laboratory Information Management Systems (LIMS) as well and work closely with our IT department to maintain peak cybersecurity protection for both Utilities. The position will also assist in development of new policies and procedures for water and wastewater divisions communication networks, SCADA systems, and operations to meet Critical Infrastructure Security and Resilience regulatory requirements provided by Cybersecurity and Infrastructure Security gency (CISA) per future state and federal (i.e. EPA) requirements.
USA Locate
No new positions are request for this budget.
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 240
PROPOSED
Packet Pg. 1072 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Solid Waste Utility
The Solid Waste Utility (Utility) is facing significant challenges relating to space constraints, aging equipment, the increasing cost of equipment replacement, capital outlay, rising personnel costs, rising disposal costs associated with household hazardous waste, increased tonnage and the increase of diversion requirements that are a result of adopted legislation. Staff continues to implement tasks and activities to meet the requirements of SB1383 which include: mandated collection, processing, and diversion of organic waste, edible food recovery, organic product procurement, additional reporting requirements, Mandatory Commercial and Multi-Family Residential Recycling, continued education, outreach and enforcement. Additionally, compliance activities with the State Water Board’s Trash Amendment has resource implications as well. During this budget cycle the Utility will be need to acquire equipment to process source separated food waste so that it can be received at the Clear Creek Waste Water Treatment Plant and included in the pyrolysis process to generate additional renewable gas, green energy and biochar. The Utility will also fund a multi-million-dollar upgrade to the Materials Recovery Facility (grant funded) that will introduce automation, greater efficiency, and increase sorting productivity.
Solid Waste is not be requesting any additional positions this budget cycle.
Fleet Maintenance
The significant issues for Fleet Maintenance include: the increasing number of vehicles requiring maintenance, increasing costs related to parts, tires and steel, parts availability, and preparing the shop and mechanics for transitioning to zero emission vehicles and equipment.
Fleet Maintenance is not be requesting any additional positions this budget cycle.
Engineering
The most significant and continuing issue facing the Division is an increase in workload associated with programmed large utility, impact fee, and grant funded infrastructure projects and meeting growing regulatory mandates (NPDES Construction Permit, MS4 Permit, Department of Industrial Relations (DIR) labor compliance, and more). This division continues to face difficulty recruiting and retaining professional engineers to deliver the Capital Improvement Program.
In FY 2025-26 Engineering is requesting two Associate Engineers to support capital project delivery. The proposed Capital Improvement Plan contemplates considerable increases in both the number and value of projects over the City’s next 5-year Capital Improvement Plan. The Division needs additional production design engineers to successfully accomplish this goal.
The City will continue to utilize consultant services on either the design and construction phases to manage peak delivery schedules and additional projects not yet contemplated or that may arise due to emergencies.
Streets Division
The preservation of City streets continues to be the biggest challenge as funding remains limited and the City’s pavement condition has reached a modern-day low. This is a challenge facing most cities as the State and Federal governments continue to debate existing infrastructure maintenance needs. With the passage of SB1, additional funding has allowed us to maintain, but not improve upon, the current poor pavement conditions. The City continues to aggressively pursue and leverage grant funding to provide street infrastructure improvements. To accomplish a more efficient management of the system with the current resources, one associate engineer position is being requested in FY 25-26 as the division currently has no associate engineers.
Parking Division
The Parking Division previously relied on the General Fund to ensure minimum maintenance and enforcement. With the implementation of the Downtown Parking Strategy in early 2023, the City has begun evaluating parking supply and demand for both on-street parking and long-term off-street parking lots along with identifying potential maintenance issues with the new pay station and application based revenue system. The Employee Parking Permit program established with new parking strategy may identify a demand for additional employee permits to be issued furthering the need for reallocation of long-term off-street parking lot spaces within the overall downtown parking needs assessment. Enforcement continues to remain a critical aspect of meeting the target parking occupancy rate of 85% while at the same time realizing user compliance at a level (estimated at 50%) rending the parking division self-sufficient from a cost perspective.
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 241
PROPOSED
Packet Pg. 1073 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Citywide Traffic Impact Fee (TIF) Program
The cost of improvements continues to escalate beyond revenue collected and several projects will be deferred until sufficient revenue is received. An update to the fee program is expected in FY 25/26.
Dana Traffic Impact Fee Program
The majority of this service area is built out with very few parcels left to develop. This fee is not currently being collected.
Staff will work to monitor traffic service levels and develop projects to mitigate any deficiencies. No significant issues exist for this fund.
North Redding Traffic Benefit District (NRTBD)
Significant transportation infrastructure challenges remain in this project area. Consequently, very little large development has occurred. The City will need to re-address the infrastructure financing plan with the dissolution of the redevelopment agencies in California as tax increment revenues, in addition to NRTBD funds, were expected to fund the infrastructure needs. An update of the fee program is expected in FY 25/26.
Capital Improvement Program Overview (2 Year)
Storm Drain Utility
Capital Projects – 2025-26
• Replace aging and failing pipes - $500,000
Capital Projects – 2026-27
• Replace aging and failing pipes - $500,000
Water Utility
Capital Projects – 2025-26
• Replace aging and failing pipes - $11,500,000
• Cypress Pump Station - $3,500,000
• North Willis Area Water Line Replacement Ph. 1 - $7,100,000 Capital Projects – 2026-27
• Replace aging and failing pipes - $7,000,000
• Pump House 1 Replacement - $72,000,000
• Pump Station 3 & 4 Upgrades - $1,000,000
Wastewater Utility
Capital Projects – 2025-26
• Replace aging and failing pipes - $6,000,000
• Co-Digestion Bio Gas - $12,600,000
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 242
PROPOSED
Packet Pg. 1074 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City • Lake Redding Interceptor 1 - $5,300,000
Capital Projects – 2026-27
• Replace aging and failing pipes - $8,000,000
• Westside Interceptor - $15,300,000
• Magnolia Phase II - $13,100,000
Solid Waste Utility
Capital Projects – 2025-26
• Replace worn out waste wheelers (carts), containers, and drop boxes and purchase additional receptacles for California mandated commercial recycling and organics recycling - $500,000 • Litter Abatement Program, which includes funding to Community Service Officers and a Code Enforcement Officer, shopping cart return program, transfer station fees for disposing of waste collected, Big Belly trash compacting receptacles, access denial, and portable toilet rentals for placement in strategic areas around the City - $600,000 • Purchase trash capture devices to prevent trash and debris from entering the storm drain and going in the waterways - $110,000
• Support of local community special events - $5,200
Capital Projects – 2026-27
• Replace worn out waste wheelers (carts), containers, and drop boxes and purchase additional receptacles for California mandated commercial recycling and organics recycling - $500,000 • Litter Abatement Program, which includes funding to Community Service Officers and a Code Enforcement Officer, shopping cart return program, transfer station fees for disposing of waste collected, Big Belly trash compacting receptacles, access denial, and portable toilet rentals for placement in strategic areas around the City - $650,000 • Repair the crane that is used to adjust loads in the transfer trailers prior to hauling material to the Landfill - $95,000 • Remodel of Drivers Marshalling room - $250,000
• Purchase trash capture devices to prevent trash and debris from entering the storm drain and going in the waterways - $110,000
• Support of local community special events - $5,200
Fleet
Capital Projects – 2025-26
• No new projects are contemplated for this fiscal year.
Capital Projects – 2026-27
• No new projects are contemplated for this fiscal year.
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 243
PROPOSED
Packet Pg. 1075 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Streets
Capital Projects – 2025-26 • ADA Curb Ramps - $200,000 • Traffic Calming - $50,000 • Pavement Maintenance - $4,500,000 • Sidewalk Replacement - $250,000 Capital Projects – 2026-27 • ADA Curb Ramps - $200,000 • Traffic Calming - $50,000 • Pavement Maintenance - $4,500,000 • Sidewalk Replacement - $250,000 Parking Division
Capital Projects – 2025-26 • None
Capital Projects – 2026-27 • None
Citywide Traffic Impact Fee (TIF) Program
Capital Projects – 2025-26 • Traffic Calming - $200,000 • Shasta View North - $1,100,000 • Churn Creek/Victor/Rancho Roundabout Project Development - $200,000 Capital Projects – 2026-27 • Traffic Calming - $200,000 • Churn Creek/Victor/Rancho Roundabout Project Development - $200,000 Dana Traffic Impact Fee Program
Capital Projects – 2025-26 • Canby Road Widening Project Development - $25,000 Capital Projects – 2026-27 • Canby Road Widening Project Construction - $270,000 City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 244
PROPOSED
Packet Pg. 1076 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City North Redding Traffic Impact Fee Program
Capital Projects – 2025-26
• None, pending Impact Fee Update
Capital Projects – 2026-27
• None, pending Impact Fee Update
Five-Year Financial Plans
Storm Drain
The following tables illustrate the projected operating and capital fund balances:
Storm Drain Utility Rate Fund FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Beginning Balance $ 1,996,278 $ 1,796,356 $ 1,517,065 $ 1,678,385 $ 1,786,443 Revenues 2,344,420 2,398,980 2,678,380 2,728,712 2,780,209 Expenses* (2,394,342) (2,528,271) (2,367,060) (2,470,654) (2,579,062) Transfers to Rolling Stock (150,000) (150,000) (150,000) (150,000) (150,000) Net Income (199,922) (279,291) 108,058 108,058 51,147
Ending Balance $ 1,796,356 $ 1,517,065 $ 1,786,443 $ 1,786,443 $ 1,837,590 Storm Drain Utility Connection Fee Fund FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Beginning Balance $ 3,368,666 $ 3,360,666 $ 3,352,666 $ 3,344,666 $ 3,336,666 Interest Revenue 0 0 0 0 0
Expenses (8,000) (8,000) (8,000) (8,000) (8,000)
Net Income (8,000) (8,000) (800) (8,000) (8,000)
Ending Balance $ 3,360,666 $ 3,352,666 $ 3,344,666 $ 3,336,666 $ 3,328,666 Water Utility
The following tables illustrate the projected operating and capital fund balances:
Water Utility Unrestricted Rate Cash FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Beginning Balance* $ 35,028,734 $ 29,427,702 $ 30,389,648 $ 29,595,544 $ 30,895,745 Revenues 32,829,930 35,112,290 40,423,225 42,271,519 44,197,797 Expenses** (38,230,962) (33,750,344) (40,687,329) (40,756,318) (46,444,476) Transfers to Rolling Stock (200,000) (400,000) (530,000) (215,000) (340,000) Net Income (5,601,032) 961,946 (794,104) 1,300,201 (2,586,679) Ending Balance $ 29,427,702 $ 30,389,648 $ 29,595,544 $ 30,895,745 $ 28,309,065 City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 245
PROPOSED
Packet Pg. 1077 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Water Utility Connection Fee Fund FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Beginning Balance $ 4,047,384 $ 5,523,367 $ 6,048,385 $ 5,400,576 $ 1,942,037 Revenues 1,630,660 1,684,980 1,577,616 1,612,537 1,628,385 Expenses** (154,677) (1,159,961) (2,225,425) (5,071,076) (2,176,920) Net Income 1,475,983 525,019 (647,809) (3,458,539) (548,535) Ending Balance $ 5,523,367 $ 6,048,385 $ 5,400,576 $ 1,942,037 $ 1,393,501 Solid Waste Utility
The following tables illustrate the projected operating and capital fund balances:
Solid Waste Fund FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Beginning Balance $ 5,940,513 $ 7,658,317 $ 7,336,264 $ 6,256,534 $ 6,397,204 Revenues 31,308,480 32,412,270 34,158,090 35,356,240 36,591,790 Expenses (29,590,676) (31,034,323) (31,737,820) (32,715,570) (33,840,180) Transfers 0 (1,700,000) (3,500,000) (2,500,000) (2,000,000) Net Income 1,717,804 (322,053) (1,079,730) 140,670 751,610 Ending Balance $ 7,658,317 $ 7,336,264 $ 6,256,534 $ 6,397,204 $ 7,148,814 Wastewater Utility
The following tables illustrate the projected operating and capital fund balances:
Wastewater Utility Rate Fund FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Beginning Balance $ 11,765,323 $ 3,946,537 $ 2,139,803 $ 831,828 $ 2,735,658 Revenues 39,382,710 41,130,160 42,996,798 44,868,775 46,890,269 Expenses* (46,901,496) (42,636,894) (42,504,773) (39,564,945) (40,278,733) Transfers to Rolling Stock (300,000) (300,000) (300,000) (400,000) (300,000) Transfers to Disinfection Holding Account 0 0 (1,500,000) (3,000,000) (4,500,000) Net Income (7,818,786) (1,806,734) (1,307,974) 1,903,830 1,811,497 Ending Balance $ 3,946,537 $ 2,139,803 $ 831,828 $ 2,735,658 $ 4,547,155 Wastewater Utility Connection Fee Fund FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Beginning Balance $ 119,073 $ 0 $ 0 $ 0 $ 0
Revenues 1,805,230 1,866,770 1,893,720 1,935,450 1,954,401 Expenses (1,924,303) (1,866,770) (1,893,720) (1,935,450) (1,954,401) Net Income (119,073) 0 0 0 0
Ending Balance $ 0 $ 0 $ 0 $ 0 $ 0
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 246
PROPOSED
Packet Pg. 1078 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Performance Measures and Workload Indicators
Storm Drain Utility
The Storm Drain Utility is responsible for the maintenance of ditches, culverts, pipes, catch basins, and outfalls, and capital improvements needed to maintain or upgrade the existing facilities. The overall conveyance system is comprised of both public and private segments. The Storm Drain Utility responds to the needs of the public component of the overall conveyance system.
The miles of channels shown are for both public and private segments. The miles of Storm Drain Pipe and number of Inlets and Outfalls show only the public facilities.
2023-24 2024-25 2025-26 2026-27
Workload Indicators Actual Estimated Projected Projected Miles of Storm Drain Pipe 191 192 194 196
Miles of Ditches/Channels 200 200 200 200
Miles of Ditches/Channels Cleaned 4.3 4.5 4.5 4.5
Percentage of Maintained Ditches/Channels to be Inspected Annually 100% 100% 100% 100% Percentage of Inspected Ditches/Channels to be Maintained Annually 3% 3% 3% 3% Number of Inlets 7,020 7,022 7,030 7,035
Percentage of Inlets Inspected Annually 25% 25% 25% 25% Percentage of Inspected Inlets Requiring Maintenance/Cleaning 5% 5% 5% 5% Percentage of Inlets Cleaned/Maintained Annually 2% 2% 2% 2% Number of Outfalls 1,340 1,344 1,350 1,360
Percentage of Outfalls Inspected Annually 25% 25% 25% 25% Percentage of Inspected Outfalls Requiring Maintenance/Cleaning 20% 20% 20% 20% Percentage of Inspected Outfalls Cleaned/Maintained Annually 3% 3% 3% 3% Number of Storm Drain Markers Installed 43 43 43 43
Water Utility
The Water Utility provides domestic water and fire flows to the community and parts of Shasta County outside the City limits.
Water sources are the Sacramento River, Trinity/Whiskeytown Lake via the Spring Creek Conduit, and groundwater wells.
Performance indicators are as follows:
2023-24 2024-25 2025-26 2026-27
WORKLOAD AND PERFORMANCE MEASURES Actual Estimated Projected Projected Number of customers/services 31,730 31,888 32,047 32,207 Net Annual New Services 104 158 159 160
% Annual Growth Rate 1.0% 0.50% 0.5% 0.5%
Quantity of water produced (acre feet) 23,948 24,050 24,100 24,250 Percentage of days water quality met standards 100% 100% 100% 100% No. of service orders completed and recorded via Vertex 3,250 3,266 3,282 3,298 No. of work orders completed and recorded via Cartegraph 3,709 3,727 3,746 3,765 Miles of water mains 564 565 566 568
Miles of substandard mains 42 42 42 42
Number of main & water service failures/disruptions per year 194 245 250 250 Miles of water mains receiving uni-directional flushing 25 25 25 25 Number of isolation valves exercised 534 591 735 800
Number of customer meters/boxes repaired or replaced 219 234 220 220 Services per employee 1,028 1,054 1,060 1,065
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 247
PROPOSED
Packet Pg. 1079 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Wastewater Utility
The Wastewater Utility consists of the domestic and industrial sewage collection, treatment, and disposal facilities serving the City. This system includes over 430 miles of interceptor and trunk sewers, 18 sewer lift stations, and two advanced secondary wastewater treatment plants with effluent filtration.
2023-24 2024-25 2025-26 2026-27
WORKLOAD AND PERFORMANCE MEASURES Actual Estimated Projected Projected No. of Residential HEs 33,140 33,549 33,884 34,233
No. of Commercial/Industrial HEs 10,171 9,218 9,310 9,403 No. of Other Hes * 363 347 372 784
Total HEs Served 43,674 43,114 43,566 44,420
% Annual Growth Rate 1.0% 0.90% 1.0% 1.0%
Clear Creek Plant MGD** Dry Flow 6 6 6 6
Stillwater Plant MGD Dry Flow 2 2 2 2
Total Peak Flows (MG) *** 53 53 53 53
Total GPD **** Dry Flow per Total HEs 203 188 201 200
Miles of Sewer Main 436 445 436 437
Total FTE Utility Staff 40 43 46 46
Total HEs Served per Total Staff 1,093 1,003 1,076 1,087 * 1 HE = household equivalent = 240 gpd
** MGD = million gallons per day.
*** Total Peak flows are calculated by the largest peak hour influent flow (MG=million gallons) into the CCWWTP and SWWTP.
Dry Flow is calculated for months of July, August, and September. **** GDP = gallons per day
Solid Waste Utility
The Solid Waste Utility includes residential, commercial, industrial, and construction waste collection for the entire City of Redding including general trash (gray cart), recycling (blue cart), and green waste (green cart) services. This service includes management of refuse truck routes, Redding Transfer Station and Material Recovery Center, and the West Central Landfill.
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 248
PROPOSED
Packet Pg. 1080 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City 2023-24 2024-25 2025-26 2026-27
Workload Indicators Actual Estimated Projected Projected Solid Waste Collection - - - -
# Waste Wheelers 454,150 475,881 478,261 480,652
# Dumpsters 56,134 58,036 58,326 58,618
# Collections - Drop Boxes/Trash 3,060 3,153 3,169 3,185 # Collections - Compactors/Trash 1,384 1,429 1,436 1,444 # Collections - Drop Boxes/Compactors/Recycling 1,743 1,687 1,695 1,704 Waste at Transfer Station - - - -
City Trucks (Tons) 61,923 61,201 61,507 61,814
City Self-Haul (Tons) 14,398 13,449 13,516 13,584
Non-City Self-Haul (Tons) 11,781 10,989 11,044 11,099
Recycling Trash (Tons) 1,683 1,150 1,156 1,162
City Sweeper (Tons) 1,019 1,151 1,156 1,162
Compost Trash (Tons) 117 87 88 88
Mattress Trash (Tons) 12 19 19 19
Total Waste Collected (Tons) 90,932 88,045 88,485 88,928 Diverted Waste (Tons) 28,206 29,081 29,226 29,372
Waste at Landfill - - - -
City Waste Buried (Tons) 102,454 102,046 102,556 103,069 Non City Waste Buried (Tons) 62,432 60,140 60,441 60,743 Total Waste Buried (Tons) 164,886 162,186 162,997 163,812 Recyclables - - - -
Recyclables Sales (Tons) 7,998 9,628 9,676 9,724
Recyclables Sales (Revenue) 486,224 913,903 918,472 923,065 Mixed Recycling to Recycling Industries (Tons) 763 1,008 1,013 1,018 Compost Sales (Yards) 958 1,402 1,409 1,416
Compost Sales (Tons) 508 743 747 751
Compost Sales (Revenue 24,885 21,773 21,882 21,991
Compost Donated / No Charge (Tons) 165 840 844 848
Fines Sales (Tons) 1,595 2,175 2,186 2,197
Fines Sales (Revenue) 38,998 53,179 53,445 53,712
Fines Donated / No Charge (Tons) - 1 1 1
Overs / No Charge (Tons) 521 563 566 569
Green Waste Contract (Tons) 9,072 9,663 9,712 9,760
Green Waste Contract (Expense) (281,245) -299,567 (301,065) (302,570) Mattress Recycling (Tons) 290 235 236 237
Land Applied (Tons) - 1,603 1,611 1,619
Number of Vehicle Trips - - - -
Total to Transfer Facility 118,034 117,780 118,369 118,961 Total Self-Haul to Transfer Facility 97,112 95,256 95,732 96,211 Total To Landfill 41,107 41,363 41,569 41,777
Total Self-Haul to Landfill 29,616 28,721 28,865 29,009 City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 249
PROPOSED
Packet Pg. 1081 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Fleet Maintenance
The Fleet Division provides fleet maintenance for the entire City’s rolling stock, including over 925 pieces of equipment (cars, pick-ups, heavy-duty trucks, wheel loaders, paving equipment, fire equipment, generators, and fork lifts.). 2023-24 2024-25 2025-26 2026-27
Workload Indicators Actual Estimated Projected Projected Repair Orders (All) 5,368 5,318 5,345 5,371
Number - City Units 950 975 980 985
Special Equipment Training 6 6 6 6
Supervisory Training Classes 2 2 2 2
Streets Division
The Streets Division provides day-to-day maintenance of the City’s roadway transportation network. 2023-24 2024-25 2025-26 2026-27
Workload and Performance Measures Actual Estimated Projected Projected Miles of Streets Maintained 449.82 455 459 463
Number of Traffic Signals 91 91 92 93
Lane Miles of Streets Resurfaced 7.1 10 15 15
Miles of Alleys Maintained 12.66 12.66 12.66 12.66
Number of Barricades 404 40 406 406
Parking Division
The Parking Division manages parking in the Downtown area of Redding. 2023-24 2024-25 2025-26 2026-27
Workload and Performance Measures Actual Estimated Projected Projected Number of Parking Lots (includes leased lots) 8 4 3 3
Number of Paystations 48 50 50 50
Engineering Division
The Engineering Division provides engineering, survey, and environmental planning support for the City’s capital improvement program and private development program.
2023-24 2024-25 2025-26 2026-27
Workload and Performance Measures Actual Estimated Projected Projected Subdivision Parcel Maps 7 3 4 4
Subdivision Final Maps 1 5 2 2
Lots Recorded 39 212 90 90
Easement Records 20 34 25 25
Encroachment Permits 280 307 325 325
Value of Projects Advertised for Bid $48,000,000 $25,000,000 $133,000,000 $66,000,000 Number of Projects Advertised for Bid 16 27 22 14
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 250
PROPOSED
Packet Pg. 1082 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Unmet Needs
Storm Drain Utility
1. Increased maintenance funding for rolling stock, facility replacements, upgrades, and transient issues.
2. Funding for capital projects that relate to maintenance of the existing system, emergency repairs, and major flood events. There is currently minimal funding identified for these work tasks.
3. Funding to construct and maintain trash capture projects to satisfy MS4 permit requirements.
Wastewater Utility
1. Significant increases in processes and equipment at the Clear Creek Wastewater Treatment Plant are currently under construction. Once the Pyrolysis, and food waste receiving, methane capture, and cogeneration processes are completed, combined, they will create a significant burden of operations by the 27-28 budget cycle. Additional staff are needed in order to operate and maintain these new processes.
2. Increased flows from existing infrastructure, new construction and Inflow and Infiltration are resulting in operational challenges within the collection system. New developments are extending into outlying areas requiring new lift stations to convey sewage to the existing system. Access to greenbelt areas for maintenance issues continue to be a challenge. Additional operations staff for the Collection System will be needed to maintain the desired level of service.
Water Utility
1. Replacement of Pump Station 1 is currently underway with the planning, design, and permitting process almost complete. The cost estimate has increased significantly and the Water Utility is exploring funding options with State and Federal funding sources including grants and low-interest loans. The Water Utility will need approximately $60 million in additional funding.
2. Staffing levels within the water department have not increased on a level appropriate to the growth of the system.
Several routine maintenance programs were established years ago to help assure the longevity and serviceability of the distribution system. Additional staff are needed in order to address some of these deferred maintenance issues including fire hydrants and valves. One new Water Distribution Public Works Maintenance Worker position is being added in FY 25-26 but there is still a need for additional staff.
Solid Waste Utility
1. State legislation (SB1383) requiring the diversion and recycling of organics is in full implementation. Currently, there are very limited options available for the recycling of food waste. Staff has implemented the inclusion of food waste as a feedstock into the composting operation and is hauling source separated food waste to an out of town facility.
With the Clear Creek Waste Water Treatment Plant pyrolysis project in operation, the next step in addressing food waste is equipment to process food waste into a slurry so it can be included in co-digestion at the treatment plant. The estimated cost for a project providing a permanent facility for food waste processing is $10,273,600. Staff is looking for a less costly and interim solution as well as possible ways to finance this type of project.
2. Due to space constraints at the Solid Waste Transfer and Recycling Facility, staff proposed and the City Council adopted a Facility Master Plan that identified options for expanding the current facility. One of the options to provide needed space for continued growth and expansion was to move the Marshalling Room, employee parking for drivers, and truck parking to the City owned property on the West side of Abernathy Lane, directly across from the current location. The estimated cost of this expansion is $9,812,400.
3. Due to the increase in use and volume of materials and material types brought to the HHW and DropOff Recycling Facility, additional space is needed in order to process and store materials and provide a sufficient amount of space for customers to unload materials. The estimate for this project is $2,000,000.
4. Leaves are considered organic material and can be added to the compost operation if they are not commingled in a street sweeper which would introduce oils and other products with them that makes them not fit for composting. A separate leaf collection process would allow for the diversion of leaves during the fall season. The estimated cost of a specialized vehicle for leaf collection activities is $150,000.
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 251
PROPOSED
Packet Pg. 1083 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Fleet Maintenance
1. Since the time the Fleet Shop was designed and built, the size of some of the equipment the City has acquired is larger in size and barely fits under the roll-up doors for entry in to the Shop. Raising the height of the Shop doors would allow easier access and limit the chance of accidentally striking the doors and causing damage. The estimated cost of the project is $ 50,000.
Streets Division
1. Street maintenance continues to be the major challenge for the Streets Division. The Pavement Management Program (PMP) classifies the condition of the various street segments and provides a rating. The current backlog of pavement needs totals over $100 million in order to bring the entire system to a “very good” rating of 75 out of a 100 scale. That backlog is expected to grow to over $110.88 million by 2026 if no other resources are allocated. The current pavement condition index system wide is rated a 49 with residential and collector streets falling in the “poor” category. To maintain the current rating, an investment of $3.6 million annually is needed. The adopted budget allocates an average of $5.0 million per year investment in overlay. It is estimated that over $14.4 million per year is needed to bring the entire system to an ideal rating that would only require minor maintenance to preserve.
2. Pedestrian facilities are experiencing deterioration and need continual repair and replacement. There are many gaps in the system that need new sidewalk and other enhancements. Americans with Disabilities Act (ADA) compliance for curb ramps and connectivity with no additional revenue adds significant costs to all street work capital projects.
This diminishes the funds available for pavement maintenance.
Parking Division
1. Parking Lot Repaving - $30,000
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 252
PROPOSED
Packet Pg. 1084 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
PROPOSED
Packet Pg. 1085 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City This page left intentionally blank.
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PROPOSED
Packet Pg. 1086 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
APPENDIX
Table of Contents
Glossary/Acronyms.......................................................................................................................257 Fund Descriptions .........................................................................................................................264 Budget Policies .............................................................................................................................269 Redding Bus Authority .................................................................................................................291 Redding Housing Authority..........................................................................................................299 Continuum of Care........................................................................................................................303 West Central Landfill....................................................................................................................305 Index .............................................................................................................................................307 City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 255
PROPOSED
Packet Pg. 1087 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City This page left intentionally blank.
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PROPOSED
Packet Pg. 1088 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Glossary/Acronyms
ACCOUNTS
The account segment contains accounts for assets, liabilities, fund balance, revenues and expenses.
Accounts are identified in the 38-didigt accounting code structure as the third segment, which is seven digits, e.g. 000-0000-XXXXXXX-00000-000000000-000-000000. To identify the various types of accounts included in this segment you can look at the first digit in the account segment: 1 indicates Assets, 2 indicates liabilities and fund balances (specifically begin in 29), 3 indicates revenues, 4-9 indicate expenses. Expenses are where budget is typically enforced and has subsets within the 4-9 to identify different types of expenditures accounts. 4 indicates personnel accounts, 5 indicates O&M accounts, 6 indicates special use type accounts, 7 indicates capital outlay accounts, 8 indicates Federal Energy Regulatory Commission (FERC) accounts, which are exclusively used by the Electric Department for tracking and reporting to FERC. 9 indicates debt and subscription-based information technology arrangements (SBITA).
ACCRUAL BASIS OF ACCOUNTING
A method of accounting that recognizes the financial effect of transactions, events, and interfund activities when they occur, regardless of the timing of related cash flows.
A/D
Assessment District
ADOPTED BUDGET
The appropriations as they were original adopted by the City Council before any amendments were made to the budget.
APPROPRIATION
A legal authorization by the City Council to make expenditures and to incur obligations for specific purposes. An appropriation is limited in amount and the time when it may be expended.
BASE BUDGET
An estimate of the minimum resources required to maintain the current level of services, assuming no change in service demands.
BPPM
Budget Policies and Procedures Manual for the City of Redding.
BUDGET DOCUMENT
The instrument used by the City Manager to present a comprehensive financial program to the City Council.
BUDGET MESSAGE
A general discussion of the adopted budget as presented in writing by the City Manager to the City Council.
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PROPOSED
Packet Pg. 1089 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
BUDGET ACCOUNTS
Accounts used to enter the adopted annual operating budget into the subsidiary ledgers as part of the management control process.
BUDGET CONTROL
The control or management of the City=s resources in accordance with the adopted budget as amended by the City Council for the purpose of keeping expenditures within the limitations of available appropriations and available revenues.
CAPITAL BUDGET
Funds that are used to account for financial resources used for major capital improvements projects.
CAPITAL IMPROVEMENT PLAN
The document prepared on an annual basis that outlines what major capital projects and equipment will be purchased for a five-year period.
CAPITAL OUTLAY
Land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, plant, plant improvements, projects, infrastructure, and all other tangible or intangible assets that have initial useful lives extending beyond one year and cost more than $5,000.
CAPITAL PROJECT
A permanent physical addition to the City’s assets including the design, construction and/or purchase of lands, buildings, facilities or major renovations. Capital projects do not include the direct purchase of equipment vehicles or machinery, unless part of a larger project.
CARB
California Air Resource Board
CASH BASIS OF ACCOUNTING
Basis of accounting that recognizes transactions or events when related cash amounts are received or disbursed.
CDBG
Community Development Block Grant
CERTIFICATE OF PARTICIPATION
A certificate which represents a proportionate participation in a tax-exempt lease agreement in which the lessee is a public entity. Rental payments are annually appropriated by the lessee.
CHARGES FOR SERVICES
Monies the City receives as payment for services provided, such as water, sewer, solid waste, and building permits.
COSTS
The amount of money or other consideration exchanged for property or services.
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PROPOSED
Packet Pg. 1090 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
COST ALLOCATION REIMBURSEMENT
Charges assessed to enterprise funds for providing them administrative services, i.e., personnel services, finance services, attorney services etc.
CVB
Convention and Visitors Bureau
DEBT SERVICE
The sum of all the interest payments in a period plus the dollar amounts of any bonds scheduled to mature in the period.
DEPARTMENT
A sub-unit of the City representing a functional grouping of services provided, such as Police, Fire, Public Works, and Development Services.
DIVISION
A sub-unit of a department representing a specific grouping of activities within a department, such as Administration, Operations, or Services. In the 38-digit accounting code structure, the division is identified by the second four-digit number, e.g. 000-XXXX-0000000-00000-0000000000-000-000000.
ENCUMBRANCES
An obligation of the City related to unperformed (executory) contracts for goods and services.
ENTERPRISE FUNDS
Funds established to account for operations that are operated as private business enterprises from user charges that support City services such as Water, Convention Center, Airport, Electric, Wastewater, and Solid Waste.
FISCAL YEAR
A 12-month period to which the annual operating budget applies and at the end of which the City determines its financial position and the results of its operations. The City defines the fiscal year as 12- month period from July 1 to June 30.
FUND
A fiscal and accounting entity with a self-balancing set of accounts, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restriction, or limitation. Fund is identified in the 38-digit accounting code structure as the first three digits, e.g., XXX-0000-0000000-00000-0000000000-000-000000.
FUTURE
Future account string is an unused series in the chart of accounts that is reserved for future uses and/or needs for tracking accounting information with a new segment. Futures are identified in the 38-digit accounting code structure as the last six digits, e.g., 000-0000-0000000-00000-0000000000-000- XXXXXX.
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PROPOSED
Packet Pg. 1091 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
GENERAL FUND
The fund used to account for all financial resources except those required to be accounted for in another fund. Primary source of monies come from local property and sales taxes that are used to pay for general City Services.
GENERAL GOVERNMENT
The administrative departments of the City, including the City Council, City Clerk, City Treasurer, City Manager, City Attorney, Administrative Services, and Personnel.
GOAL
The desired result of accomplishments within a given time frame
GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA)
An association of public finance professions founded in 1906 as the Municipal Finance Officer Association. The GFOA has played a major role in the development and promotion of GAAP for state and local government since its inception and has sponsored the Certificate of Achievement for Excellence in Financial Reporting Program since 1946.
HUD
Housing and Urban Development. The federal agency which oversees most community development and housing activities in which the city receives funding from the federal government.
IMPACT FEES
Fees charged to developers to cover, in whole or in part, the anticipated cost of improvements that will be necessary as a result of the development (e.g., parks, sidewalks).
IN LIEU PROPERTY TAXES
A payment that a “property owner” not subject to taxation makes to a government to compensate it for services that the “property owner” receives that normally are financed through property taxes. An example of a “property owner” would be the Electric Utility Fund.
INTERFUND TRANSFER
Monies that are transferred from one fund to another fund as an accounting procedure. Interfunds are identified in the 38-digit accounting code structure as the sixth three digits, e.g., 000-0000-0000000- 00000-0000000000-XXX-000000.
INTERNAL SERVICE FUNDS
Funds which account for goods and services provided by on City department to another City department.
Information Systems, Records Management, Risk Management, and Building Maintenance represent departments which are funded this way.
LOCAL TAXES
Monies the City receives from taxes levied and/or collected locally, primarily property, sales, and transient occupancy taxes.
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PROPOSED
Packet Pg. 1092 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
LOW- AND MODERATE-INCOME HOUSING ASSET FUND (LMIHAF)
A fund created pursuant to California Assembly Bill No. 1484 (Community Redevelopment) to be used in accordance with applicable housing-related provisions of the Community Redevelopment Law.
MODIFIED ACCRUAL BASIS OF ACCOUNTING
Basis of accounting according to which (a) revenues are recognized in the accounting periods in which they become available and measurable and (b) expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term debt and certain similar accrued obligations, which be recognized when due.
NON-DEPARTMENTAL EXPENDITURES
Operating expenditures that are City-wide and/or multi-departmental in nature.
NPDES
National Pollutant Discharge Elimination System
OBJECTIVE
The necessary steps that need to be accomplished to achieve a desired goal.
OTHER REVENUE
Monies not classified elsewhere, including miscellaneous revenue.
OPERATING BUDGET
Materials, supplies, and personnel costs for City services and activities conducted yearly.
PERFORMANCE MEASURES
Commonly used term for service efforts and accomplishments reporting.
PROGRAM
Program is a segment in the chart of accounts that is designed to allow tracking of expense and revenues across multiple segments of the chart of accounts and ability for consolidated reporting. Programs are identified in the 38-digit accounting code structure as the fourth five digits, e.g., 000-0000-0000000- XXXXX-0000000000-000-000000.
PROJECT
Project is a segment of the chart of accounts which ties the general ledger to the Oracle project ledger.
This string of the chart of accounts can be used with revenues and expenses to help track and reconcile project ledger activities. Projects are identified in the 38-digit accounting code structure as the fifth ten digits, e.g., 000-0000-0000000-00000-XXXXXXXXXX-00000-000-000000.
PUBLIC EMPLOYEES RETIREMENT SYSTEM – PERS
A state or local governmental entity entrusted with administering one or more pension plans.
RABA
Redding Area Bus Authority.
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PROPOSED
Packet Pg. 1093 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City RCAC
Redding Community Access Corporation
REU
Redding Electric Utility
RMU
Redding Municipal Utilities includes Solid Waste, Wastewater, Water, and Storm Drainage utilities.
RRA
Redding Redevelopment Agency.
REVENUES
The total amount of funds received in the current year from taxes, fees, charges, grants, contributions, permits, licenses, etc.
SHASCOM: Shasta Area Communication Agency. This is the county wide area dispatch agency.
SPECIAL ASSESSMENT FUNDS
Revenues generated through the formation of an assessment district for the financing of public improvements or services to benefit properties against which assessments are levied, such as assessment for street construction or flood control.
SPECIAL REVENUE FUNDS
Funds used to account for the proceeds of specific revenue sources that legally are restricted to expenditures for specific purposes like funds from Community Development Block Grants (CDBG), gas tax, and other Federal and State funds granted for specific community programs.
TMBID
Tourism Marketing Business Improvement District
TOT
Transient Occupancy Tax
TRUST AND AGENCY FUNDS
Monies which are held in trust by the City and whose use is restricted to the specific purpose for which the funds were received, such as park development funds and developer contributions.
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PROPOSED
Packet Pg. 1094 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
ORGANIZATION OF FUNDS WITH RESPONSIBLE DEPARTMENTS
General Fund
General Government
•City Council
•City Clerk
•City Manager
•City Attorney
•Financial Services
•Non-Departmental
•Personnel
•Fire
•Police
Developmental Services
•Permit Center
•Building
•Planning
Public Works
•Engineering
•Streets
Community Services
•Parks
•Recreation
•Midtown Mall
Animal Regulation (City Manager)
Code Enforcement (City Attorney)
Debt Service (Finance))
Special Revenue Funds
Finance
•Dedicated Public Safety Tax - Prop 172
•Rolling Stock
Public Works
•Parking
•Gas Tax - Street Improvement
•Local Transportation
•Special Development Fund
•Traffic Impact Fees
•Transport Grants
Housing
•Redding Housing Authority
•Housing & Community Development
Community Services
•Main & Branch Libraries
•Landscape Maintenance District
•Special Development Fund
•Parks & Development in Lieu Fees
•Parks Grants
Special Development Fund - Fire Facilities
(Fire)
Asset Seizure (Police)
Enterprise Funds
Redding Electric Utility
Community Services
•Convention Center
Public Works
•Airport
•RABA
•Storm Drains
•Solid Waste
•Water
•Wastewater
Internal Service Funds
Information Technology
•General Information Services (GIS)
•Communications
•IT
Public Works
•Fleet
•ET USA Locate
•RMU Administration
City Clerk
•Records Management
•Reprographics
Community Services
•Building Maintenance
•Marketing/Communications/PR
Personnel
•Employer Services
•Volunteer Services
•Risk Management
•Employee Benefits - Payroll
•Employee Benefit Group Insurance
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PROPOSED
Packet Pg. 1095 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
GOVERNMENTAL FUND DESCRIPTIONS
General Fund
The General Fund accounts for all financial resources of a governmental unit that are not legally required to be accounted for in another fund.
Special Revenue Funds
These funds account for the proceeds derived from specific revenue so8urces that re legally restricted to expenditures for specified purposes.
The City has the following Special Revenue Funds
Parking Fund - This fund was established to account for the receipts of parking-related revenues and expenditures.
Rolling Stock Replacement Fund – Established to account for funds designated for rolling stock and equipment replacement.
Gas Tax Street Improvement Fund – Established to record State and Federal Funds that are restricted to the construction and maintenance of the city’s street system. The Funds are transferred to the General Fund after the appropriate expenditures are made in the General Fund.
Local Transportation Fund – Established to record local transportation revenues that are restricted for maintenance of the street system of the city. The Funds are transferred to the General Fund after the appropriate expenditures are made in the General Fund.
Library Fund – Established to account for revenues and expenditures associated with the Library in Shasta County
Community Development Fund - This fund was established to account for programs financed by Community Development Block Grant Funds, HOME Grant Funds, and State/Local Grant Funds and Successor Housing Agency Funds.
Public Safety Fund - This fund was established to account for approximately $272,500 annually received from the State for Public Safety.
Special Development Fund - This fund was established to account for receipts and disbursements of development funds. Financing is provided by construction fees paid by developers and grants that are specific to assist with development. Expenditures are restricted by element.
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PROPOSED
Packet Pg. 1096 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Enterprise Funds
Enterprise funds account for operation: a) financed and operated in a manner similar to a private business enterprise. The intent of a governing body is that the cost of providing goods or services be financed primarily through user charges; and b) where the governing body has decided that periodic determination of revenues earned and expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.
The City has the following Enterprise Funds:
Airport Fund - This fund was established to account for the operations of the City’s airports.
Electric Utility Fund – This fund was established to account for the operations of the City’s electric utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.
Water Utility Fund – This fund was established to account for the operations of the City’s water utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.
Wastewater Utility Fund – This fund was established to account for the operations of the City’s wastewater utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.
Storm Drainage Utility Fund- This fund was established to account for the operations of the City’s storm drainage utility, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.
Solid Waste Fund - This fund was established to account for the operations of the City’s solid waste collection and disposal services, a self-supporting activity which renders a service on a user-charge basis to residents and businesses.
Tourism/Convention Fund - This fund was established to account for the operations of the Convention Center and Visitors Bureau.
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PROPOSED
Packet Pg. 1097 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Internal Service Funds
Used to finance and account for special activities and services performed by a designated department for other departments within the same governmental unit on a cost reimbursement basis.
The City has the following Internal Service Funds:
Fleet Maintenance Fund - This fund was established to account for all motorized and communications equipment utilization by City departments.
Information Technology and Geographic Information Fund - This fund was established to account for 1) the data processing activities utilized by all City departments, and 2) maintaining the City’s geographic information system.
Marketing/Communications/PR Fund - This fund was established to account for Marketing, Communications, and PR services utilized by all City departments.
Risk Management Fund - This fund was established to account for the self-insurance activities of the City associated with general liability and workers compensation.
Building Maintenance Fund - This fund was established to account for the day-to-day maintenance of buildings, including janitorial, air conditioning, gardening and upkeep.
Records Management - This fund was established to account for the cost associated with maintaining the City’s records system.
Employer Services - This fund was established to account for employment related costs such as union negotiations and hiring costs.
Communications- This fund was established to account for costs associated with maintaining the city’s telephone and radio systems.
Reprographics - This fund was established to account for the costs associated with printing, mailing, sorting, and delivery of main and in-house documents.
Volunteer Services - This fund was established to account for costs associated with the City’s volunteer worker program.
Employee Benefits Payroll - This fund was established to accumulate the City’s various payroll taxes and benefits, and then disburses them to the appropriate vendors and agencies.
Employee Benefits Group Insurance - This fund was established to account for the self-insurance activities of the City associated with medical, dental, prescription drug and vision care of the City employees, retirees and dependents.
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PROPOSED
Packet Pg. 1098 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Redding Municipal Utilities Administration - This fund was established to account for the administration unit over the City Utilities, except Electric. It also accounts for the cost of electrical technician services and the USA/Locate services of the City.
Customer Services – This fund was established to track the costs associated with providing customer service for City Utilities, including Electric, Water, Wastewater and Solid Waste services.
Field Services – This fund was established to capture the costs related to performing field service activities for the City’s Electric and Water departments.
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PROPOSED
Packet Pg. 1099 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City This page left intentionally blank.
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PROPOSED
Packet Pg. 1100 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City BUDGET
POLICIES
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PROPOSED
Packet Pg. 1101 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
APPROPRIATION TRANSFER OF FUNDS 87-319 401 10/20/87 1
BACKGROUND
At the Council meeting of September 29, 1987, the City Council considered a proposal to authorize the City Manager to administratively transfer budget appropriations. This proposal was referred to staff by Council and further information was requested.
PURPOSE
The goal of the Administrative Transfer is to use the Budget document as a management plan by which to control expenditures and obligations of the City in advance.
POLICY
1. The City Council does hereby authorize the City Manager to administratively transfer appropriations
2. Appropriations shall be transferred only for purposes previously approved by the City Council
3. Appropriations shall not be transferred between Funds
4. Appropriations shall not be transferred between departments
5. Appropriations of up to $5,000 may be transferred to effect an emergency repair or replacement of equipment (amended 12/5/89).
6. The number of positions authorized by the City Council shall not be changed administratively.
PROCEDURE
The procedure for utilizing the Appropriation Transfer Request is provided in the City of Redding Budget Policies and Procedures Manual.
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PROPOSED
Packet Pg. 1102 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
GENERAL BUDGET GOALS 90-160 402 04/03/90 1
BACKGROUND
The City of Redding maintains a Budget for Operating, Debt Service, and Capital Improvements in accordance with the laws of the State of California.
PURPOSE
To establish purposes for utilizing a Budget, as follows:
1. Maintain the fiscal integrity of the City’s operating, debt service, and capital improvement budgets in order to provide services and to construct and maintain public facilities, streets, and utilities.
2. Maintain a responsible and prudent fiscal condition and high bond rating to minimize long-term interest expense when financing capital improvements with an ongoing, systematic bonding program.
3. Prepare and refine written goals and policies to facilitate preparation of financing, spending, and performance plans for the City.
4. Coordinate decision-making for the capital improvement budget with the operating budget to make effective use of the City’s limited resources for operating and maintaining facilities.
5. Prepare budget data for elected officials in a form that will facilitate budget decisions.
6. Prepare and evaluate activity performance plans that relate to financing and spending plans in the City budget.
7. Encourage citizen involvement in the budget decision-making process through public hearings and informal meetings.
POLICY
The City will adhere to purposes stated for utilizing a Budget.
PROCEDURE
Specific procedures to achieve the purposes stated above are provided in the City of Redding Budget Policies and Procedures Manual.
Amended April 15, 2008, by Resolution No. 2008-35
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 271
PROPOSED
Packet Pg. 1103 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
BUDGET FINANCING GOALS 90-160 403 04/03/90 1
BACKGROUND
To develop a Budget, several specific assumptions need to be stated to facilitate the financing of the Budget.
PURPOSE
To establish the financing assumptions for the development of the Budget.
POLICY
It is the policy of the City Council of the City of Redding:
1. To finance essential City services which have a city-wide benefit in the budget with revenue sources which are generated from a broad base (i.e., property taxes, State and Federal Aid, assessments, and franchise fees); finance responsive services with dedicated revenue and user fees which directly relate to the level of service provided; and minimize General Fund financing assistance to those responsive service activities which have a common-good community benefit but cannot totally finance expenses with user fees.
2. To minimize the need for property tax financing by controlling costs and by seeking alternative financing for City services which focus on user fees for responsive services and by the upgrading and/or enhancement of the property tax base.
3. To refine exiting assessment financing formulas and user fee rate structures to more accurately charge the costs of service provided to the benefitting property owners and customers served.
4. To support Federal and State legislation that provides property tax relief and direct aid to cities, without reliance on regressive forms of taxation, while striving to eliminate funding of regional and State responsibilities at the local level. Oppose legislation which imposes local service mandates without Federal, State, or regional funding.
5. To direct resources to finance services provided by the City and to minimize support for services primarily and appropriately financed by other levels of government.
Amended April 15, 2008, by Resolution No. 2008-35
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 272
PROPOSED
Packet Pg. 1104 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
BUDGET SERVICE LEVEL GOALS 90-160 404 04/03/90 18
BACKGROUND
To develop a Budget, several specific assumptions need to be stated to facilitate the budget development process.
PURPOSE
To facilitate the budget development process by establishing base-level procedures for the development of the Budget.
POLICY
It is the policy of the City Council of the City of Redding:
1. That budget decisions to increase service levels or add a new program will be financed with either a new revenue source, rate adjustment, or by a deliberate reduction in, or elimination of, existing services.
2. That decisions to reduce service levels or eliminate programs will be based on city-wide priorities and needs when revenue sources are inadequate to maintain existing services at current program levels.
3. To maintain programming flexibility to address priority user needs based on historical usage and demographic trends within service areas, if a service is provided at many facilities throughout the city and a service-level reduction is necessary.
4. To incorporate self-reliance in both day-to-day operation of the City and the development of its long-range plans. A self-reliant City makes greater use of its own resources, takes care of its own, and creates its own opportunities for a better life. More specifically, “self-reliance” should:
o Encourage community involvement;
o Foster economic development to enhance the tax base and retain and create employment opportunities;
o Strengthen our neighborhoods through service delivery and cooperation with neighborhood groups; and
o Strengthen City government as an organization dedicated to serving the people of Redding.
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 273
PROPOSED
Packet Pg. 1105 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
BUDGET SERVICE LEVEL GOALS 90-160 404 04/03/90 18
5. To avoid duplication of services with other units of government and seek joint-use opportunities for public facilities with both governmental units and non-profit organizations when effective service delivery can be provided at less cost or no cost to the City.
6. To recognize that City employees are City government’s most valuable asset and that, as such, their concerns, participation, and morale are crucial to delivering high quality, efficient services to the residents and taxpayers of Redding.
7. To employ good management practices when planning for service delivery by including in budget requests money to pursue activities, such as:
o Office automation and computer applications that increase productivity; o Equipment modernization;
o Work-hour simplification;
o Risk management/employee safety;
o Preventative maintenance;
o Energy conservation;
o Life-cycle costing and purchasing of equipment;
o Lease-purchase options for high-cost equipment purchases which reduce operating expenses;
o Performance planning, reporting, and evaluation;
o Employee training; and
o Competitive bidding for services.
8. To modernize the physical and organizational structure of the City departments and offices to facilitate better management of resources. Create an environment which encourages innovative problem-solving and pursuit of opportunities to improve service delivery within existing budgets.
Amended April 15, 2008, by Resolution No. 2008-35
2 City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 274
PROPOSED
Packet Pg. 1106 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
ADOPTION OF THE BIENNIAL BUDGET 90-160 405 04/03/90 1
BACKGROUND
In accordance with State Law, the City has no legal obligation to adopt a comprehensive financial plan.
However, good business practice and sound financial prudence would indicate that the City of Redding adopt a comprehensive financial plan on at least a biennial basis.
The comprehensive financial plan for the City of Redding is composed of spending, financing, and performance plans for three types of budgets: operating, debt service, and capital improvement. All budgets must be sound: the spending plan (expenditures and transfers out) must equal or be less than the financing plan (revenues, transfers in, and use of fund balance).
PURPOSE
To establish a biennial comprehensive financial plan.
POLICY
It is the policy of the City Council of the City of Redding:
That the City Manager shall propose to City Council at least every other year prior to the beginning of the fiscal year a comprehensive financial plan for the next fiscal year or two fiscal years (July 1 to June 30).
After considering the City Manager’s recommendations, the Mayor and City Council shall adopt the budget.
Amended April 15, 2008, by Resolution No. 2008-35
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 275
PROPOSED
Packet Pg. 1107 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
BUDGET AMENDMENTS POLICY 90-160 406 04/03/90 1
BACKGROUND
From time to time, the Budget may need adjustment to respond or meet changing conditions or circumstances. This is accomplished by amending the Budget, either administratively by the City Manager or by the City Council upon the recommendation of the City Manager.
PURPOSE
To amend the Budget as may be required during the fiscal year.
POLICY
It is the policy of the City Council of the City of Redding:
1. Budgeted appropriations may be increased, decreased, or have the purpose for which they are provided changed by Council resolution.
2. The City Manager may move by appropriation transfer part or all of any unencumbered appropriation balance within a department, agency, or authority. Upon the recommendation of the City Manager, Council may by resolution transfer part or all of any unencumbered appropriation balance from one department, agency, or authority to another.
3. If the City Manager reports to Council that the revenue available will be insufficient to meet the amount appropriated, the Mayor and City Council shall take such actions as they deem necessary to prevent or minimize any deficit, and for that purpose they may reduce by resolution one or more appropriations.
Amended April 15, 2008, by Resolution No. 2008-35
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 276
PROPOSED
Packet Pg. 1108 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
REBUDGET OF PRIOR YEAR
APPROPRIATIONS 91-275 409 07/16/91 1
BACKGROUND
The City of Redding adopts a Budget at the beginning of each budget cycle. Certain items budgeted in the prior year are rebudgeted as a carryover. These items are difficult to identify for numerous reasons, and each year a certain number are overlooked in the budget process. This policy would authorize the City Manager to routinely carry over items previously approved, but not rebudgeted.
PURPOSE
This policy would authorize the City Manager to rebudget previously approved and budgeted items in accordance with Council guidelines.
POLICY
It is the policy of the City Council of the City of Redding to authorize the City Manager to rebudget certain items as follows:
1. The item(s) was previously considered and budgeted by Council Resolution.
2. The item(s) was not rebudgeted through the adoption of the Budget or by Exhibit A of the Resolution adopting the Budget.
3. The amount of the appropriation does not change, nor does the amount of the funding source change.
4. There is no impact upon fund reserves.
5. The purpose for which the item(s) was rebudgeted does not change.
In the event the item(s) does not meet these conditions, it must be approved by the City Council and may not be rebudgeted as part of this policy.
PROCEDURE
The procedure for utilizing the Rebudget of Prior Year Appropriations is provided in the City of Redding Budget Policies and Procedures Manual.
Amended April 15, 2008, by Resolution No. 2008-35
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 277
PROPOSED
Packet Pg. 1109 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
FISCAL IMPACT STATEMENTS 92-50 411 2/4/92 1
BACKGROUND
Many actions taken by the City government have a fiscal impact, either positive or negative, and yet these impacts have not in the past always been formally evaluated. Projects may be undertaken, commissions established, studies assigned to staff, and workload otherwise affected without an attempt to measure the effect such action may have on the City financially. While this is not atypical of cities— and governments generally—a more responsible posture, generating greater accountability to the public we serve, would be to require more measurement or estimate of financial impact of every major action we take or consider.
PURPOSE
The purpose of this policy is to ensure a higher level of responsibility, accountability, and fiscal integrity for the City government by requiring a fiscal impact statement to accompany every major proposal considered by the City Council.
POLICY
It is the policy of the Redding City Council to require the preparation of a fiscal impact statement to accompany every major proposal to be considered by the City Council. Affected by this policy would be:
1. The best available estimate of the capital outlay cost of projects;
2. The best available estimate of operating costs of capital projects, extended over ten years;
3. The operating cost (and revenues) of newly proposed programs;
4. The cost of servicing commissions;
5. Estimates of the cost of employee compensation packages being negotiated or otherwise considered, including benefits;
6. Operating costs (and realistic labor savings, if anticipated) of equipment proposed for acquisition.
PROCEDURE
No prescribed and uniform format of such statements will fit all situations, and so none is prescribed.
The form of the statement should be tailored, however, to provide the City Council with the basic information necessary to reach a sound decision.
It is anticipated that during the transitional period (the first year or two this policy is in effect), the City Council will be evaluating currently-existing programs with the objective of determining areas in which program costs that have developed over the years may no longer be justified.
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 278
PROPOSED
Packet Pg. 1110 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
ESTABLISHMENT OF LONG-RANGE
FINANCIAL PLANS AND UNRESERVED
CASH BALANCE 92-110 412 03/17/92 1
BACKGROUND
Fiscal stability is an important factor to any city. The budget decisions made today will have an impact on the City’s future in not only what is accomplished, but what resources are available in the future.
Being concerned with only making ends meet this year, with little planning about what the future will hold is shortsighted. Many governments become too shortsighted with their budget process, which causes crisis for them down the road. The decisions made today could have a profound impact on the City’s future.
PURPOSE
Just as a city must look ahead at land use needs, it must also forecast its financial needs in order to avoid serious deficiencies or over-commitments to programs and projects. Establishing a long-range financial plan and minimum reserve levels will assist in accomplishing the City’s goal and objectives and provide for orderly provisions of services to the citizens of Redding.
POLICY
It is the policy of the City Council of the City of Redding:
1. To prepare long-range financial plans for each of the City’s major funds and update those plans at least biennially.
2. To maintain at a minimum an estimated ten percent of projected expenditures unreserved cash balance at year end throughout the long-range financial plan.
3. When approval of additional appropriations is requested of Council the effect on the long-range financial plan should be considered.
4. A requested appropriation that would cause the estimated end of year cash reserve in any year of the long-range financial plan to drop below ten percent needs to be submitted with a plan to insure the fiscal stability of the major fund’s financial position.
5. During the budget process, the City Council will evaluate the cash balance to determine if adequate levels of cash are maintained based on the economic conditions of the area or other circumstances.
Amended April 15, 2008, by Resolution No. 2008-35
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 279
PROPOSED
Packet Pg. 1111 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
ROLLING STOCK REPLACEMENT
FUND 95-178 416 08-01-95 1
BACKGROUND
The City has established a Rolling Stock Replacement Fund to accumulate resources to purchase rolling stock (i.e., vehicles and related equipment). The purpose of establishing the Rolling Stock Replacement Fund was to manage rolling stock resources in the most efficient manner possible. To provide departments with the mechanism to manage their rolling stock the City needs to establish a formal policy regarding appropriation of funds for rolling stock.
PURPOSE
This policy would authorize department heads, with the City Manager’s approval, to transfer funds accumulated in the Rolling Stock Replacement Fund to the originating division’s budget where the funds could be expended for rolling stock.
POLICY
The City of Redding has established a Rolling Stock Replacement Fund to accumulate resources to purchase rolling stock. The Rolling Stock Replacement Fund shall accumulate resources from the sale of rolling stock, interest earnings and cash transfers from the various divisions of the City. All cash transfers to the Rolling Stock Replacement Fund need Council approval either in the annual budget or by amendment to the budget. A separate accounting of each division’s transfers in, sale of rolling stock, interest earnings and transfers out will be maintained for the Rolling Stock Replacement Fund.
No rolling stock will be purchased in the Rolling Stock Replacement Fund. To purchase rolling stock, cash will be transferred from the Rolling Stock Replacement Fund to the originating division’s budget.
All cash transfers to the Rolling Stock Replacement Fund, along with revenue generated from the sale of rolling stock and interest earnings, may be transferred back to the originating division’s budget and expended for rolling stock in that division at the request of the department director. Council approval for the appropriation of funds is not necessary if the division’s request does not exceed the cash accumulated in the Rolling Stock Replacement Fund.
PROCEDURE
Transfers from the Rolling Stock Replacement Fund to the originating division’s budget via an appropriation transfer request (reference Council Policy 401).
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 280
PROPOSED
Packet Pg. 1112 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
SUPPLEMENTAL
BUDGET APPROPRIATIONS 96-051 417 03-19-96 1
BACKGROUND
Departments are authorized to make expenditures up to the amount appropriated by the City Council. If expenditures are anticipated to exceed the amount appropriated, departments must seek a supplemental appropriation from the City Council. There are times, however, when additional expenditures result in an equivalent amount of additional revenues (examples include donations, grants, and mutual aid to other jurisdictions that are reimbursable). In these instances, there is no net impact to the City’s budget.
Under these circumstances, it would be more efficient for the City Manager to amend the budget so long as the increase in expenditures will not exceed the amount of revenue to be generated.
PURPOSE
The purpose of this policy is to authorize the City Manager to amend the budget in those instances where an increase in expenditures will be completely offset by the amount of revenue to be generated as a result of that increase.
POLICY
It is the policy of the City Council of the City of Redding to authorize the City Manager to amend the budget in those instances where an increase in expenditures will be completely offset by the amount of revenue to be generated as a result of that increase.
PROCEDURE
Budget amendments such as those described above shall be approved in the same manner as Appropriation Transfer Requests (reference Council Policy 401).
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 281
PROPOSED
Packet Pg. 1113 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
APPROPRIATION TRANSFERS
BETWEEN YEARS 99-94 420 7/1/99 1
BACKGROUND
Departments have been authorized to make expenditures up to the amount appropriated by the City Council. If expenditures are anticipated to exceed the amount appropriated usually the department must seek a supplemental appropriation from the City Council. Now that the City has adopted a two-year budget there may be times when it would be beneficial for a department to move an appropriation from the first year to the second year or to move an appropriation from the second year to the first year of the two-year budget. In these instances, there is no net impact to the City’s budget.
PURPOSE
To allow department directors to manage their budget in the most efficient and effective way, the following policy would authorize the department heads, with the City Manager’s approval, to transfer appropriations between years of an adopted two-year budget.
POLICY
It is the policy of the City Council of the City of Redding to authorize the department heads, with the City Manager’s approval, to administratively transfer appropriations between years of an adopted twoyear budget. The following conditions shall be met for all administrative transfers between years:
1. Appropriations shall be transferred only for purposes previously approved by the City Council.
2. Appropriations shall not be transferred between funds.
3. Appropriations shall not be transferred between departments.
4. The number of positions authorized by the City Council shall not be changed administratively.
PROCEDURE
Appropriation transfers such as those described above shall be approved in the same manner as Appropriation Transfer Requests (reference Council Policy 401).
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 282
PROPOSED
Packet Pg. 1114 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
RESERVE BALANCES IN
INTERNAL SERVICE FUNDS 99-94 421 7/1/99 1
BACKGROUND
The City of Redding has established internal service funds to provide a useful means of accounting where it is advantageous to centralize the provision of certain goods and services provided to City departments and divisions. An internal service fund should provide services to other departments and divisions on a cost-reimbursement basis.
PURPOSE
Internal service funds are used to account for services provided on a cost-reimbursement basis (i.e., without profit or loss). Thus surpluses in an internal service fund may be an indication that other departments and divisions were over charged for the goods or services they received. To insure departments and divisions are not over charged by internal service funds for goods and services received, the City has implemented the following policy:
POLICY
Internal service funds cash reserves will be reviewed by the Finance Division after the end of a fiscal year. Finance will journal voucher cash reserves in excess of 5.0% in internal service funds back to the originating division or department unless one of the following conditions applies:
1. The excess cash does not exceed $20,000.
2. A justification for retaining the excess balance has been included in the budget issues and approved by the City Manager.
3. A justification separate from the budget process has been presented to and approved by the City Manager.
4. The fund is a self-insurance fund. Self-insurance funds have been established to account for potential risks and payments are not treated on a cash reimbursement basis. In the self insurance funds cash will be returned to the originating divisions when retained earnings is in excess of expected potential liabilities, as determined by the Finance Division and approved by the City Manager, plus a 5% reserve of current appropriations for unexpected expenditures. When funds in a self-insurance fund exceed the above criteria, cash shall be refunded to the originating divisions unless conditions 1, 2 or 3 above applies.
The adjustment to cash reserves shall not cause a deficit fund balance in any fund, unless the deficit is a result of depreciation and future assets will be replaced by contributions from other funds.
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 283
PROPOSED
Packet Pg. 1115 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
EQUIPMENT REPLACEMENT FUND 2001-103 422 7/1/01 1
BACKGROUND
The City has established a Replacement Fund to accumulate resources to purchase certain equipment.
The purpose of establishing the Equipment Replacement Fund is to manage equipment resources in the most efficient manner possible. In order to provide departments with the mechanism to manage their equipment and accumulate resources to replace certain equipment, the City needs to establish a formal policy regarding appropriation of funds for equipment.
PURPOSE
This policy would authorize department heads, with the City Manager’s approval, to transfer funds accumulated in the Equipment Replacement Fund to the originating division’s budget where the funds could be expended for equipment.
POLICY
The City of Redding has established an Equipment Replacement Fund to accumulate resources to purchase equipment. The Equipment Replacement Fund shall accumulate resources, interest earnings and cash transfers from the various divisions of the City. All cash transfers to the Equipment Replacement Fund need Council approval either in the annual budget or by amendment to the budget.
A separate accounting of each division’s transfers in, interest earnings and transfers out will be maintained for the Equipment Replacement Fund.
No equipment will be purchased directly from the Equipment Replacement Fund. In order to purchase equipment, cash will be transferred from the Equipment Replacement Fund to the originating division’s budget. All cash transfers to the Equipment Replacement Fund, along with interest earnings, may be transferred back to the originating division’s budget and expended for equipment in that division at the request of the department director. Council approval for the appropriation of funds is not necessary if the division’s request does not exceed cash accumulated in the Equipment Replacement Fund.
PROCEDURE
Transfers from the Equipment Replacement Fund to the originating division’s budget via an appropriation transfer request (reference Council Policy 401).
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 284
PROPOSED
Packet Pg. 1116 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
TRANSFERS BETWEEN FUNDS 2003-164 423 10-21-03 1
BACKGROUND
The City has established a Contingency Reserve Fund to segregate funds for future expenditures contained
in the General Fund’s Ten-Year Plan or other purposes as approved by the City Council. A key responsibility of city government is to manage resources as efficiently and effectively as possible. To assist in managing the resources of the General Fund and the Contingency Reserve Fund effectively and efficiently there may be times when it would be beneficial to make transfers between these two funds. In these instances there would be no net impact to the City’s budget or Ten-Year Plan.
PURPOSE
To allow City staff to manage City resources in the most efficient and effective way, the following policy would authorize the Finance Officer, with the City Manager’s approval, to make transfers between the General Fund and the Contingency Reserve Fund.
POLICY
It is the policy of the City Council of the City of Redding to authorize the Finance Officer, with the City Manager’s approval, to administratively make transfers between the General Fund and the Contingency Reserve Fund. The following conditions shall be met for all administrative transfers between these funds:
1. Transfers shall only be for purposes previously approved by the City Council in the General Fund’s Ten-Year Plan or other purposes as approved by the City Council.
2. There shall be no net effect on the General Fund’s Ten-Year Plan or the City’s overall budget.
3. There shall be no net change in appropriations.
PROCEDURE
Transfers such as those described above shall be approved in the same manner as Appropriation Transfer Requests (reference Council Policy 401).
Amended on June 1, 2004, by Resolution No. 04-87
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 285
PROPOSED
Packet Pg. 1117 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
DEBT POLICY 08-36 426 04/15/08 1
SHORT-TERM OPERATING DEBT POLICY
The expenses associated with the day-to-day operations of the City will be covered by current revenues.
However, because the City receives the majority of its property tax revenues and a substantial portion of its sales tax revenue at two (2) times during the year and other revenues may fluctuate during the year, the City may experience temporary cash shortfalls. In order to finance these temporary cash shortfalls, the City may incur short-term operating debt [typically, tax and revenue anticipation notes (TRANs)].
The amount of the short-term operating debt will be based on cash flow projections for the fiscal year and will comply with applicable Federal and State regulations. Operating revenues will be pledged to repay the debt, which will generally be repaid within fifteen months or less. The costs of such borrowings will be minimized to the greatest extent possible.
LONG-TERM CAPITAL DEBT POLICY
The long-term capital debt policy sets the parameters for issuing debt and provides guidance in the timing and structuring of long-term debt commitments. This policy does not apply to the following types of transactions and situations: land-based financings (typically, assessment districts); debt issued by the redevelopment agency; payroll related liabilities (e.g., pension plans and other post employment benefits); landfill closure and postclosure related liabilities; and risk management related liabilities.
The City will consider the issuance of long-term obligations under the following conditions:
1. The City will use debt financing only for capital improvement projects and equipment purchases, and generally under the following circumstances:
a. When the project is or will be included in the City's budget. b. When the project is not included in the City's budget but it is an emerging need whose timing was not anticipated during the budget preparation cycle, the planned financing of the project had not been completed during the budget cycle, or it is a project mandated immediately by State or Federal requirements.
c. When the project's useful life, or the projected service life of the equipment, will be equal to or exceed the term of the financing.
d. When there are revenues sufficient to service the debt, whether from project revenues or other revenues sources.
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 286
PROPOSED
Packet Pg. 1118 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
DEBT POLICY 08-36 426 04/15/08 1
e. When the repayment of the debt can be demonstrated by being included in a current long-range financial plan for all funds affected.
2. The following criteria will be used to evaluate pay-as-you-go versus long-term debt financing in funding capital improvements and equipment:
a. Factors which favor pay-as-you-go:
(1) Current revenues and adequate fund balances are available. (2) Project phasing is feasible.
(3) Debt levels would adversely affect the City's credit rating. (4) Market conditions are unstable or present difficulties in marketing. b. Factors which favor long-term financing:
(1) Current revenues and fund balance are not adequate to pay for the capital improvements or equipment.
(2) Projected revenues available for debt service are considered sufficient and reliable so that long-term financing can be marketed with an appropriate credit rating.
(3) The project for which financing is being considered is of the type that will allow the City to maintain an appropriate credit rating.
(4) Market conditions present favorable interest rates and demand for municipal financings.
(5) A project is mandated by State or Federal requirements and current revenues and fund balances are insufficient to pay project costs. (6) A project is immediately required to meet or relieve capacity needs. (7) The life of the project or asset financed is three years or longer. 2 City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 287
PROPOSED
Packet Pg. 1119 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
DEBT POLICY 08-36 426 04/15/08 1
3. The following will be considered in evaluating appropriate debt levels:
a. General Fund supported debt service will generally not exceed 10% of total budgeted expenditures, without specific City Council approval to exceed the 10% limitation. b. The General Fund may be used to provide back-up liquidity to improve the viability of a self-supported debt issue (excluding land-based or redevelopment agency financings), but only if the General Fund is not exposed to significant risk of loss of assets or impairment of liquidity. This evaluation of risk will consider such things as the following:
(1) Volatility and collectibility of the revenue source identified for repayment of the debt.
(2) The likelihood the General Fund would be reimbursed within one year for any payments it could need to make in its role as back-up guarantor.
4. The City will follow all State and Federal regulations and requirements regarding bond provisions, issuance, taxation and disclosure.
5. The adoption of resolutions of intent will be considered whenever a bond issuance is contemplated to increase the flexibility related to funding costs related to the project (e.g., project development costs, architectural costs, studies, etc.).
6. Typically the costs incurred by the City, such as bond counsel, underwriter fees, financial advisor fees, printing, underwriters' discount, will be charged to the bond issue to the extent allowable by law. Project design and construction costs, to the extent included in the project financing plan and allowable by law, should be reimbursed from bond proceeds.
7. The City may seek credit enhancements, such as letters of credit or insurance, when beneficial or cost-effective.
8. The City will monitor compliance with bond covenants and adhere to Federal arbitrage regulations. Any instances of noncompliance will be reported to the City Council.
9. The City will seek to maintain or improve its current bond rating and will not ordinarily consider long-term debt that, through its issuance, would cause the City's bond rating to be lowered.
3 City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 288
PROPOSED
Packet Pg. 1120 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING BIENNIAL BUDGET
FISCAL YEARS ENDING JUNE 30, 2026 AND 2027
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
SUBJECT RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE PAGE
DEBT POLICY 08-36 426 04/15/08 1
10. The City will maintain good communications with bond rating agencies about its financial condition and will follow a policy of full disclosure in every financial report and bond prospectus (Official Statement).
11. The City may obtain financing through a competitive basis or negotiated basis. If the City uses a negotiated financing, the City will perform steps necessary to ensure that the negotiated financing is competitive with similar current-long term financings.
12. The City will select financial advisors and/or underwriters on a competitive basis; these advisors may be retained for up to seven years to provide continuity and allow them to develop an understanding of the City's needs. Trustees and/or paying agents will be selected by competitive bid.
13. Interfund borrowing will be considered to finance projects on a case-by-case basis, only when sufficient funds are available to meet projected future expenditures in the fund making the loan. Interfund borrowing may be used when it would reduce costs of interest, debt issuance, and/or provide other benefits to the City.
14. The term of long-term debt instruments will not exceed the legal life of the asset or thirty years, whichever is less.
15. Bond proceeds will be invested in accordance with the provisions of the bond indenture.
Funds set aside for debt service will only be used for that purpose.
16. Refundings will be considered to reduce interest costs, principal outstanding, or to eliminate restrictive debt covenants. Pooled financings with other government agencies will be considered, as appropriate.
4 City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 289
PROPOSED
Packet Pg. 1121 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City This page intentionally left blank.
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 290
PROPOSED
Packet Pg. 1122 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
REDDING AREA BUS AUTHORITY
FY 2025-26 PROPOSED BUDGET
EXPENSES
2022-23 2023-24
2024-25 2024-25 Inflation
Adj. Budget Adopted Amended + (-) Factor
490XXXX
Administrative Costs
414,600 $ 820,242 $ 895,147 $ 863,400 $ (31,747) $ 863,400 $ (31,747) $ 5.00% Transit Manager, Transportation Planner, Executive Assistant, Account Clerk, Management Analyst, and support from the following: City Clerk, City Finance, City Treasurer, City Attorney, City Manager/RABA Executive Officer and Police
5035001 Security Contracts 181,600 $ 155,200 $ 127,020 $ 131,930 $ 4,910 $ 194,000 $ 66,980 $ 5.00% Security Contract - Downtown Passenger Terminal, New contract under review as of Jan 2025 5037501 Professional Services/Consultant 25,000 $ 85,000 $ 525,000 $ 175,000 $ (350,000) $ -$ (525,000) $ 5.00% Consultation Services 5040002 Annual Audit Fees 27,000 $ -$ 12,000 $ 12,000 $ -$ 11,310 $ (690) $ 5.00% Annual Finance Audit Fees 5040005 Mosquito Abatement Fees -$ -$ 110 $ 110 $ -$ 100 $ (10) $ 3.00% Mosquito Abatement Fees 5040052 Miscellaneous Contracts 5,000 $ 48,800 $ 45,000 $ 45,000 $ -$ 1,500 $ (43,500) $ 3.00% Pest Control 5040108 HVAC Maintenance Contract 50,000 $ -$ 18,600 $ 18,600 $ -$ 18,360 $ (240) $ 5.00% HVAC 5040186 Commission Expense 4,710 $ 4,710 $ 4,900 $ 4,900 $ 3.00% Token Transit Commision 5045001 Landscape Maintenance 65,000 $ 5,000 $ 5,000 $ 5,000 $ -$ 5,000 $ -$ 5.00% Landscape 5077501 Vehicle Fuel/Lubricant 300,000 $ 888,000 $ 888,000 $ 888,000 $ -$ 1,023,000 $ 135,000 $ 5.00% Vehicle Fuel/Lubricant 5080001 Electric Vehicle Charging 100 $ 150 $ 150 $ -$ -$ (150) $ 0.00% Electric Vehicle Charging 5082501 Vehicle Repair/Maintenance -$ 33,300 $ 2,500 $ 2,500 $ -$ 3,000 $ 500 $ 5.00% Vehicle Repair/Maintenance 5082507 Vehicle Repairs & Maintenance - Demand Response -$ -$ 2,000 $ 2,000 $ -$ 17,100 $ 15,100 $ 5.00% Vehicle Repairs & Maintenance - Cutaways 5082508 Vehicle Repairs & Maintenance - Fixed Route 78,600 $ -$ 3,500 $ 3,500 $ -$ 35,100 $ 31,600 $ 5.00% Vehicle Repairs & Maintenance - Fixed Route 5085001 Vehicle Tires & Tubes -$ 68,400 $ 94,000 $ 94,000 $ -$ 98,700 $ 4,700 $ 5.00% Vehicle Tires & Tubes 5085701 Bank Service Fees 2,500 $ 2,500 $ 2,600 $ 2,600 $ 3.00% Bank Fees 5090001 Vehicle Parts & Supplies 312,000 $ 306,000 $ 306,000 $ -$ 285,340 $ (20,660) $ 5.00% Vehicle Parts and Supplies 5095001 Utility Expense 80,000 $ 81,600 $ 81,600 $ -$ 101,860 $ 20,260 $ 5.00% Maintenance Facility and Downtown Passenger Terminal Utilities 5110001 Communication Expense 76,700 $ 25,000 $ 25,000 $ -$ 97,490 $ 72,490 $ 5.00% Communications (AT&T, Airespring, Radio, Wifi, Mobile) 5110006 Phones - Communications -$ 14,000 $ 14,000 $ -$ -$ (14,000) $ 5.00% Phones (AT&T) 5110007 Mobile Data Communications -$ 17,000 $ 17,000 $ -$ -$ (17,000) $ 5.00% Mobile Data Communications for Revenue Fleet (WIFI) 5110010 Telephone / Radio -$ 27,530 $ 27,530 $ -$ -$ (27,530) $ 0.00% Communications (Radio) 5110012 DSL Line - Downtown Tran. Center -$ 12,300 $ 12,300 $ -$ -$ (12,300) $ 5.00% DSL Line - Downtown Passenger Terminal 5110021 Communication - Cellular -$ 1,700 $ 1,700 $ -$ -$ (1,700) $ 5.00% Staff Cell Phones and Stipend (5) 5112501 Purchased Transportation 35,000 $ 4,880,000 $ 6,848,800 $ 6,418,600 $ (430,200) $ 7,815,450 $ 966,650 $ 5.00% MTM and DHCL Operating Cost per contract 5122501 Printing & Reproduction 15,450 $ 32,000 $ 23,000 $ 23,000 $ -$ 24,200 $ 1,200 $ 5.00% Route maps, transit brochures, passes, etc. 5125001 Operating Materials & Supplies 61,800 $ 28,100 $ 28,800 $ 28,800 $ -$ 55,370 $ 26,570 $ 5.00% General operating materials and supplies 5132501 Software 2,000 $ 151,800 $ 198,748 $ 198,748 $ -$ 310,000 $ 111,252 $ 5.00% Real-Time application and vehicle location TSP (Service fee every 2 years per contract), Wireless data for CradlePoint routers, transit scheduling software, Via paratransit software and all associated transit technology
5132506 Subscription Based IT Agreements Non-Asset 11,300 $ -$ -$ -$ -$ 73,500 $ 73,500 $ 5.00% Subscription Based IT Agreements Non-Asset 5137501 Permit Fees 16,500 $ 2,100 $ 2,200 $ 2,200 $ -$ 2,400 $ 200 $ 3.00% NPDES fees for permits and monitoring 5160001 Advertising/Promotions 5,000 $ 112,500 $ 110,000 $ 110,000 $ -$ 47,500 $ (62,500) $ 3.00% Marketing/media advertising-newspaper/radio/TV & Policy No. 127, Donation Policy 5165001 Books/Dues/Subscriptions 16,700 $ 18,500 $ 18,500 $ -$ 15,000 $ (3,500) $ 3.00% Dues for transit organizations, subscriptions, etc. 5170001 Insurance Expense 64,900 $ 73,290 $ 73,290 $ -$ 79,400 $ 6,110 $ 5.00% Liability, Facilities and Vehicles 5180001 Other Allowances 2,060 $ 2,880 $ 2,880 $ -$ 1,080 $ (1,800) $ 5.00% Allowance for Board member - 6 meetings 5257501 Building Repair/Maintenance 7,000 $ 58,820 $ 58,820 $ -$ 61,770 $ 2,950 $ 5.00% Building repairs--windows, minor repairs, etc. 5265001 Civic Center Rent -$ 16,500 $ 16,500 $ -$ -$ (16,500) $ 0.00% Relocated RABA staff to RABA facilities 5277501 Travel Expenses 20,000 $ 20,000 $ 30,494 $ 10,494 $ 11,100 $ (8,900) $ 0.00% Travel for conferences/seminars 5320001 Environmental Compliance -$ 200 $ 200 $ -$ 2,060 $ 1,860 $ 3.00% Environmental Compliance 5335001 Employee Training -$ 10,500 $ 25,000 $ 14,500 $ 15,000 $ 4,500 $ 5.00% Staff Training 5037518 Contracted Services - Vanpool -$ 100,000 $ 100,000 $ 100,000 $ -$ 100,000 $ -$ 0.00% Contracted with Enterprise, Funded by SB125 and STA, Moved to 5037518 6490901 Passthrough Account (State Operating Grant Activities) -$ 65,500 $ 65,500 $ -$ -$ 0.00% Passthrough for ShastaConnect Services 5037552 Mobility Program 25,000 $ 249,873 $ 249,873 $ - $ 200,000 $ (49,873) $ 0.00% Uber/Lyft, Volunteer Transportation, Bird, Taxi, Bikeshare. Funded by LCTOP and SB125 5900011 Cost Allocation Plan 61,120 $ 48,090 $ 49,530 $ 49,530 $ -$ 315,690 $ 266,160 $ 3.00% Interdepartmental charges/City allocation support 5900061 Fix Charge - Information Systems 46,400 $ 110,350 $ 85,610 $ 85,610 $ -$ 88,570 $ 2,960 $ 3.00% Support needed to run computer, equipment and phone 5900071 Fix Charge - Printing 7,220 $ 5,000 $ 10,570 $ 10,570 $ -$ 12,510 $ 1,940 $ 3.00% Provides brochures/informational material, Based on usage 5900081 Fix Charge - Fleet 2,990 $ 1,130 $ 1,150 $ 1,250 $ 100 $ (1,150) $ 5.00% We don't use Fleet's service anymore 5900091 Fix Charge - Risk Mgmt. 11,020 $ 14,620 $ 15,190 $ 15,190 $ -$ 17,490 $ 2,300 $ 3.00% Claims/Insurance 5900101 Fix Charge - Records Mgmt. 3,350 $ 1,800 $ 1,660 $ 1,820 $ 160 $ 4,480 $ 2,820 $ 3.00% Based on usage 5900111 Fix Charge - Communications 41,430 $ 66,930 $ 68,070 $ 68,070 $ -$ 45,970 $ (22,100) $ 3.00% Based on number of radios/telephones 5900141 Fix Charge - NPDES 13,970 $ 15,510 $ 16,290 $ 16,290 $ -$ 17,770 $ 1,480 $ 3.00% Municipal/Industrial Permit Compliance 5900151 Fix Charge - GIS 2,860 $ 520 $ 860 $ 860 $ -$ 74,510 $ 73,650 $ 3.00% Based on usage 5900161 Fix Charge - Volunteer 310 $ 490 $ 450 $ 450 $ -$ 700 $ 250 $ 3.00% Overhead charge for other divisions 5900171 Fix Charge - Personnel 1,910 $ 3,440 $ 2,900 $ 2,900 $ -$ 2,000 $ (900) $ 3.00% Based on usage 5900181 Communication/Marketing/PR 6,590 $ 6,200 $ 6,410 $ 6,410 $ -$ 11,390 $ 4,980 $ 3.00% Based on usage 5010001 Variable Charge - Mail 1,090 $ 1,130 $ 1,150 $ 1,150 $ -$ 1,210 $ 60 $ 3.00% Postage, interoffice 1,673,160 $ 8,290,112 $ 11,190,608 $ 10,416,035 $ (774,573) $ 12,168,880 $ 1,043,772 $ 1,090,115 $ 781,800 $ 3,674,000 $ 5,493,006 $ 1,819,006 $ 5,693,550 $ 2,019,550 $ 2,763,275 $ 9,071,912 $ 14,864,608 $ 15,909,041 $ 1,044,433 $ 17,862,430 $ 2,997,822 $ 36% 41% Combined Fare Box Ratio (Including FTA and Non State funds) Capital Outlay See Long-Term Capital Plan
TOTAL EXPENSES
ACCOUNTS
EXPLANATION Expenses
City Interdepartmental Charges
Total Operating Expenses
2025-26 2024-25 + (-)
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 291 PROPOSED Packet Pg. 1123
Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City of
REDDING AREA BUS AUTHORITY
FY 2025-26 PROPOSED BUDGET
REVENUES
2021-22 2023-24 2024-25 2024-25 Inflation
Budgeted Adopted Amended + (-) Factor
3140101 Passenger/Fixed Route 491,000 $ 578,000 $ 419,100 $ 378,800 $ (40,300) $ 421,000 $ 1,900 $ 5.00% Fixed Route Fare Revenues 3140102 Fare Cards 120,000 $ - $ - $ 40,300 $ 40,300 $ 8,000 $ 8,000 $ 3.00% Fare Cards (2HR, 1DAY, 7DAY, 30DAY) 3140200 Passenger Fares - Demand Response 69,600 $ 65,500 $ 65,500 $ - $ 108,652 $ 43,152 $ 5.00% Demand Response Fare Revenues 3140301 Rural Service (Burney Express) 11,900 $ 19,400 $ 19,400 $ - $ - $ (19,400) $ 2.00% Route 299X Fare Revenues 3140500 Charter Service 21,420 $ 200 $ 5,000 $ 5,000 $ - $ 9,000 $ 4,000 $ 5.00% Charter & Shuttle Services 3140600 Advertising - Bus Stops 1,224 $ 93,800 $ 22,800 $ 22,800 $ - $ 21,900 $ (900) $ 2.50% Bus Shelter Advertising 3140601 Advertising - Buses 5,100 $ - $ 60,000 $ 60,000 $ - $ 73,500 $ 13,500 $ 2.50% Bus Wrap Advertising 3741007 Sale of Property 3,000 $ 6,000 $ 6,000 $ - $ 6,200 $ 200 $ 2.00% Sale of Rolling Stock and Misc. Items 3744011 LCFS Revenue 236,775 $ 3,000 $ 3,000 $ 1,000 $ (2,000) $ 3,000 $ - $ 20.00% Low Carbon Fuel Standard Credit Sales 3520003 Real Estate Rentals 390,000 $ 73,290 $ 15,000 $ 15,000 $ - $ 18,000 $ 3,000 $ 2.00% Ellis street lease, Parking Lot Lease 3931019 Greyhound/FlixBus Rents 1,000,000 $ 33,000 $ 10,800 $ 10,800 $ - $ 11,016 $ 216 $ 0.00% FlixBus Rent of Bays 7 and 8 3991001 Investment Income 13,000 $ 6,500 $ 6,500 $ - $ 5,000 $ (1,500) $ 2.00% Interest from Cash Accounts 3791001 Miscellaneous Revenue 1,325,333 $ - $ 62,285 $ 62,285 $ - $ 30,100 $ (32,185) $ 2.00% Miscellaneous Revenue (FlixBus commission, TNC Access for All) 3791046 Vending Machine 1,500,000 $ - $ 5,200 $ 5,200 $ - $ 4,500 $ (700) $ 2.00% Vending Machine Commission at Downtown Passenger Terminal and Maintenance Facility
3140106 Amtrak Revenue (1,374,963) $ - $ 392,145 $ 392,145 $ 0 $ 400,000 $ 7,855 $ 0.00% Amtrak Contract (RC-135) & San Joaquin JPA MOU (RC-133) 3604602 FTA 5307 Operating (50% Local Match) 2,000,000 $ 2,000,000 $ 1,951,560 $ (48,440) $ 3,049,383 $ 1,049,383 $ 0.00% FTA Urbanized Area Formula Grants for Redding Urbanized Area 3625607 SB125 State Operating - $ 2,780,000 $ 2,780,000 $ - $ 2,355,000 $ (425,000) $ 0.00% CalSTA SB 125 Transit Program (passthrough SRTA) 3604603 FTA 5311(f) Operating (44.47% Local Match) - $ 281,200 $ 281,200 $ - $ 288,900 $ 7,700 $ 0.00% FTA Intercity Bus Program (passthrough Caltrans) 3604601 FTA 5311 Operating (44.47% Local Match) - $ - $ 539,052 $ 539,052 $ 530,000 $ 530,000 $ 0.00% FTA Formula Grants for Rural Areas (passthrough Caltrans) 3604604 Federal (5310) - Discretionary 220,922 $ - $ - $ - $ - $ - $ 0.00% Enhanced Mobility of Seniors & Individuals with Disabilities 3625606 LCTOP State Operating Grant 165,000 $ 499,873 $ 499,873 $ - $ 487,277 $ (12,596) $ 2.50% Low Carbon Transit Operations Program 3625602 TDA Operation - Allocation (STA) 4,115,300 $ 2,744,826 $ 2,744,826 $ (0) $ 1,916,248 $ (828,578) $ 2.50% State Transit Assistance of Transportation Development Act (allocated by SRTA) 3625605 LTF/TDA State Operating Grant - $ - $ - $ - $ 386,258 $ 386,258 $ 2.50% Local Transportation Fund, Article 4 of Transportation Development Act (allocated by SRTA)
3625601 STA Reserve - Per request 200,000 $ - $ - $ - $ - $ - $ 0.00% State Transit Assistance (SRTA Reserve) 3625601 Planning and Service Area 2 (Older American) - $ 22,889 $ 22,889 $ - $ 7,546 $ (15,343) $ 0.00% Older American Act for free senior rides. 3632608 SGR Operating (Preventative Maintenance) - $ 347,400 $ 347,400 $ - $ 300,000 $ (47,400) $ 2.50% State of Good Repair (State) 3604602 CRP & CMAQ - $ 157,005 $ 157,005 $ - $ - $ (157,005) $ 0.00% Carbon Reduction Program & Congestion Mitigation and Air Quality Program (FHWA to be flexed to FTA)
3601910 CDBG - $ - $ - $ - $ - $ - $ 0.00% Community Development Block Grant 3625601 Rural Transit Assistance Program - $ 1,500 $ 1,500 $ - $ 1,500 $ - $ 0.00% Travel and Training Reimbursement (Scholoarship program, passthrough
CALACT)
TBD State Transit Funds - $ - $ - $ - $ - $ 750,000 $ 750,000 $ 0.00% FTA Formula Grants for Rural Areas (Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (CRRSAA) and American Rescure Plan Act (ARPA) awarded to the County and redirected to RABA (passthrough Caltrans)) 3,800,119 $ 8,290,082 $ 9,927,423 $ 10,416,035 $ 488,612 $ 11,191,980 $ 1,264,558 $ 3611602 FTA 5307 Capital - $ - $ - $ - $ 1,945,074 $ 1,945,074 $ Federal funds for capital purchases inc.: Vehicles, IT, Facility, Etc. Requires 20% local Match
3632605 SB 125 State Capital - $ - $ 3,524,000 $ 3,741,062 $ 217,062 $ 2,906,338 $ (617,662) $ CalSTA SB 125 Transit Program (passthrough SRTA) 3611605 FTA 5339a Capital 352,000 $ 138,000 $ - $ 1,601,944 $ 1,601,944 $ 489,429 $ 489,429 $ FTA Buses and Bus Facilities Program. Requires 20% Local Match 3632602 LCTOP State Capital - $ - $ 100,000 $ 100,000 $ - $ - $ (100,000) $ Low Carbon Transit Operations Program 3632603 SGR Capital - $ - $ 50,000 $ 50,000 $ - $ 352,713 $ 302,713 $ State of Good Repair (State) 1,444,538 $ 781,800 $ 3,674,000 $ 5,493,006 $ 1,819,006 $ 5,693,554 $ 2,019,554 $ 5,244,657 $ 9,071,882 $ 13,601,423 $ 15,909,041 $ 2,307,618 $ 16,885,534 $ 3,284,112 $ TOTAL REVENUES
ACCOUNTS
EXPLANATION
Revenues
TOTAL OPERATING REVENUE
Capital Outlay
TOTAL CAPITAL REVENUE
2024-25 2025-26 + (-)
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 292 PROPOSED Packet Pg. 1124
Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City of
REDDING AREA BUS AUTHORITY
FY 2024-2025 to 2030-2031 PROPOSED 7-Year Plan
SUMMARY
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 Adopted Projected Projected Projected Projected Projected Projected Projected Passenger Fares - Fixed Route 578,000 $ 378,800 $ 421,000 $ 442,100 $ 464,300 $ 487,600 $ 512,000 $ 564,500 $ Passenger Fares - Demand Response 69,600 $ 65,500 $ 108,652 $ 114,100 $ 119,900 $ 125,900 $ 132,200 $ 145,900 $ Passenger Fares - Burney Express 11,900 $ 19,400 $ - $ - $ - $ - $ - $ - $ Charter 200 $ 5,000 $ 9,000 $ 9,500 $ 10,000 $ 10,500 $ 11,100 $ 12,300 $ Other Fare Revenue (Adv./Lease/Vend./Misc.) 206,090 $ 575,230 $ 568,216 $ 552,036 $ 556,340 $ 560,740 $ 565,440 $ 575,800 $ Other Revenue (Interest) 13,000 $ 6,500 $ 5,000 $ 5,100 $ 5,300 $ 5,500 $ 5,700 $ 6,100 $ Beach Bus 25,370 $ - $ - $ - $ - $ - $ - $ - $
Shasta County (Burney Express/5311 JPA) 684,700 $ - $ - $ - $ - $ - $ - $ - $ FTA - 5307 Operating & CRP 2,000,000 $ 2,108,565 $ 3,049,383 $ 2,703,523 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ FTA 5311 Operating, 5311 (f), RTAP - $ 821,752 $ 1,570,400 $ 1,570,400 $ 820,400 $ 820,400 $ 820,400 $ 820,400 $ Federal (5310) 220,922 $ - $ - $ - $ - $ - $ - $ - $
STA Reserve, LCTOP Operating 365,000 $ 499,873 $ 487,277 $ 499,460 $ - $ - $ - $ - $ TDA - Operating 4,115,300 $ 2,744,826 $ 2,302,506 $ 3,213,450 $ 6,076,722 $ 8,480,110 $ 8,482,840 $ 9,704,830 $ FTA - Capital (5307/5339/5339c) 138,000 $ 1,601,944 $ 2,434,503 $ 1,891,200 $ 3,607,200 $ 5,140,800 $ 1,603,200 $ 2,419,200 $ TDA - Capital 244,722 $ - $ - $ - $ 689,850 $ 1,047,653 $ 136,375 $ 222,522 $ Other - SGR/LCTOP Capital/SB125 Operating &
Capital/Misc Grants
399,078 $ 7,041,351 $ 5,921,597 $ 5,639,606 $ 2,831,999 $ 1,356,050 $ 903,425 $ 1,027,278 $ TOTAL REVENUES 9,071,882 $ 15,868,741 $ 16,877,534 $ 16,640,475 $ 17,182,010 $ 20,035,253 $ 15,172,680 $ 17,498,830 $ Administrative Costs 820,242 $ 863,400 $ 863,400 $ 900,530 $ 945,560 $ 992,840 $ 1,042,480 $ 1,149,330 $ Purchased Transportation (Transdev Contract) - $ - $ - $ - $ - $ - $ - $ - $ Vehicle Expenses (Fuel, Tires, Repair and Supplies) 1,043,600 $ 1,063,460 $ 1,206,660 $ 1,267,210 $ 1,330,800 $ 1,397,600 $ 1,467,700 $ 1,618,600 $ Marketing/Advertising/Promotions 64,900 $ 73,290 $ 79,400 $ 83,370 $ 87,600 $ 92,000 $ 96,600 $ 106,600 $ Other Operating Expenses 6,087,290 $ 8,156,935 $ 9,428,340 $ 8,913,300 $ 9,043,190 $ 9,494,830 $ 9,969,000 $ 10,989,400 $ City Interdepartmental Charges (Fixed Charges) 274,080 $ 258,950 $ 591,080 $ 618,790 $ 284,610 $ 293,230 $ 302,100 $ 320,700 $ Total Operating 8,290,112 $ 10,416,035 $ 12,168,880 $ 11,783,200 $ 11,691,760 $ 12,270,500 $ 12,877,880 $ 14,184,630 $ CAPITAL OUTLAY 781,800 $ 5,493,006 $ 5,693,550 $ 4,852,260 $ 4,809,000 $ 6,726,000 $ 2,304,000 $ 3,324,000 $ TOTAL EXPENSES 9,071,912 $ 15,909,041 $ 17,862,430 $ 16,635,460 $ 16,500,760 $ 18,996,500 $ 15,181,880 $ 17,508,630 $ Cells in pink is above average
Combined Fare Box Ratio (Including 5307)- As Proposed 43.3% 36.1% 41.1% 39.6% 34.1% 32.8% 31.5% 29.1% SRTA Required Farebox Ratio 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% Revenue $ to meet the Farebox Ratio Target 376,827 $ 536,375 $ 722,464 $ 654,144 $ 607,924 $ 660,835 $ 716,342 $ 835,395 $
ACCOUNTS
REVENUES
EXPENSES
Operating
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 293 PROPOSED Packet Pg. 1125
Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City of
REDDING AREA BUS AUTHORITY
FY 2025-26 to 2031-32 PROPOSED 7-YEAR PLAN
EXPENSES
2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 Inflation Projected Projected Projected Projected Projected Projected Projected Projected Factor 490XXXX Administrative Costs 895,147 $ 863,400 $ 900,530 $ 945,560 $ 992,840 $ 1,042,480 $ 1,094,600 $ 1,149,330 $ 5.0% Transit Manager, Transportation Planner, Executive Assistant, Account Clerk, Management Analyst, and support from the following: City Clerk, City Finance, City Treasurer, City Attorney, City Manager/RABA Executive Officer and Police
5035001 Security Contracts 127,020 $ 194,000 $ 203,700 $ 213,900 $ 224,600 $ 235,900 $ 247,700 $ 260,100 $ 5.0% Security Contract - Downtown Passenger Terminal, New contract under review as of Jan 2025
5037501 Professional Services/Consultant 525,000 $ - $ - $ - $ - $ - $ - $ - $ 5.0% Consultation Services 5040002 Annual Audit Fees 12,000 $ 11,310 $ 11,890 $ 12,500 $ 13,200 $ 13,900 $ 14,600 $ 15,400 $ 5.0% Annual Finance Audit Fees 5040005 Mosquito Abatement Fees 110 $ 100 $ 110 $ 200 $ 300 $ 400 $ 500 $ 600 $ 3.0% Mosquito Abatement Fees 5040052 Miscellaneous Contracts 45,000 $ 1,500 $ 1,600 $ 1,700 $ 1,800 $ 1,900 $ 2,000 $ 2,100 $ 5.0% Pest Control 5040108 HVAC Maintenance Contract 18,600 $ 18,360 $ 19,300 $ 20,300 $ 21,400 $ 22,500 $ 23,700 $ 24,900 $ 5.0% HVAC 5040186 Commission Expense 4,900 $ 5,100 $ 5,300 $ 5,500 $ 5,700 $ 5,900 $ 6,100 $ 3.0% Token Transit Commision 5045001 Landscape Maintenance 5,000 $ 5,000 $ 5,300 $ 5,600 $ 5,900 $ 6,200 $ 6,600 $ 7,000 $ 5.0% Landscape 5077501 Vehicle Fuel/Lubricant 888,000 $ 1,023,000 $ 1,074,150 $ 1,127,900 $ 1,184,300 $ 1,243,600 $ 1,305,800 $ 1,371,100 $ 5.0% Vehicle Fuel/Lubricant 5080001 Electric Vehicle Charging 150 $ - $ - $ - $ - $ Electric Vehicle Charging 5082501 Vehicle Repair/Maintenance 2,500 $ 3,000 $ 3,200 $ 3,400 $ 3,600 $ 3,800 $ 4,000 $ 4,200 $ 5.0% Vehicle Repair/Maintenance 5082507 Vehicle Repairs & Maintenance - Demand Response 2,000 $ 17,100 $ 18,000 $ 18,900 $ 19,900 $ 20,900 $ 22,000 $ 23,100 $ 5.0% Vehicle Repairs & Maintenance - Cutaways 5082508 Vehicle Repairs & Maintenance - Fixed Route 3,500 $ 35,100 $ 36,860 $ 38,800 $ 40,800 $ 42,900 $ 45,100 $ 47,400 $ 5.0% Vehicle Repairs & Maintenance - Fixed Route 5085001 Vehicle Tires & Tubes 94,000 $ 98,700 $ 103,700 $ 108,900 $ 114,400 $ 120,200 $ 126,300 $ 132,700 $ 5.0% Vehicle Tires & Tubes 5087501 Bank Service Fees 2,600 $ 2,700 $ 2,800 $ 2,900 $ 3,000 $ 3,100 $ 3,200 $ 3.0% Bank Fees 5090001 Vehicle Parts & Supplies 306,000 $ 285,340 $ 299,610 $ 314,600 $ 330,400 $ 347,000 $ 364,400 $ 382,700 $ 5.0% Vehicle Parts and Supplies 5095001 Utility Expense 81,600 $ 101,860 $ 106,960 $ 112,400 $ 118,100 $ 124,100 $ 130,400 $ 137,000 $ 5.0% Maintenance Facility and Downtown Passenger Terminal Utilities 5110001 Communication Expense 25,000 $ 97,490 $ 102,370 $ 107,500 $ 112,900 $ 118,600 $ 124,600 $ 130,900 $ 5.0% Communications (AT&T, Airespring, Radio, Wifi, Mobile) 5112501 Purchased Transportation 6,848,800 $ 7,815,450 $ 7,235,690 $ 7,597,500 $ 7,977,400 $ 8,376,300 $ 8,795,200 $ 9,235,000 $ 5.0% MTM and DHCL Operating Cost per contract 5122501 Printing & Reproduction 23,000 $ 24,200 $ 25,500 $ 26,800 $ 28,200 $ 29,700 $ 31,200 $ 32,800 $ 5.0% Route maps, transit brochures, passes, etc. 5125001 Operating Materials & Supplies 28,800 $ 55,370 $ 58,140 $ 61,100 $ 64,200 $ 67,500 $ 70,900 $ 74,500 $ 5.0% General operating materials and supplies 5132501 Software 198,748 $ 310,000 $ 325,500 $ 341,800 $ 358,900 $ 376,900 $ 395,800 $ 415,600 $ 5.0% Real-Time application and vehicle location TSP (Service fee every 2 years per contract), Wireless data for CradlePoint routers, transit scheduling software, Via paratransit software and all associated transit technology
5132506 Subscription Based IT Agreements Non-Asset 73,500 $ 77,200 $ 81,100 $ 85,200 $ 89,500 $ 94,000 $ 98,700 $ 5.0% Subscription Based IT Agreements Non-Asset 5137501 Permit Fees 2,200 $ 2,400 $ 2,500 $ 2,600 $ 2,700 $ 2,800 $ 2,900 $ 3,000 $ 3.0% NPDES fees for permits and monitoring 5160001 Advertising/Promotions 110,000 $ 47,500 $ 49,000 $ 50,500 $ 52,100 $ 53,700 $ 55,400 $ 57,100 $ 3.0% Marketing/media advertising-newspaper/radio/TV & Policy No. 127, Donation Policy
5165001 Books/Dues/Subscriptions 18,500 $ 15,000 $ 15,500 $ 16,000 $ 16,500 $ 17,000 $ 17,600 $ 18,200 $ 3.0% Dues for transit organizations, subscriptions, etc. 5170001 Insurance Expense 73,290 $ 79,400 $ 83,370 $ 87,600 $ 92,000 $ 96,600 $ 101,500 $ 106,600 $ 5.0% Liability, Facilities and Vehicles 5180001 Other Allowances 2,880 $ 1,080 $ 1,200 $ 1,300 $ 1,400 $ 1,500 $ 1,600 $ 1,700 $ 3.0% Allowance for Board member - 6 meetings 5257501 Building Repair/Maintenance 58,820 $ 61,770 $ 64,900 $ 68,200 $ 71,700 $ 75,300 $ 79,100 $ 83,100 $ 5.0% Building repairs--windows, minor repairs, etc. 5265001 Civic Center Rent 16,500 $ - $ - $ - $ - $ - $ - $ - $ 0.0% Relocated RABA staff to RABA facilities 5277501 Travel Expenses 20,000 $ 11,100 $ 11,700 $ 12,300 $ 13,000 $ 13,700 $ 14,400 $ 15,200 $ 5.0% Travel for conferences/seminars 5320001 Environmental Compliance 200 $ 2,060 $ 2,130 $ 2,200 $ 2,300 $ 2,400 $ 2,500 $ 2,600 $ 3.0% Environmental Compliance 5335001 Employee Training 10,500 $ 15,000 $ 15,750 $ 16,600 $ 17,500 $ 18,400 $ 19,400 $ 20,400 $ 5.0% Staff Training 5037518 Contracted Services - Vanpool 100,000 $ 100,000 $ 100,000 $ - $ - $ - $ 0.0% Contracted with Enterprise, Funded by SB125 and STA, Moved to 5037518 6490901 Passthrough Account (State Operating Grant Activities) 65,500 $ - $ - $ - $ - $ - $ - $ 0.0% Passthrough for ShastaConnect Services 5010001 Variable Charge - Mail 1,150 $ 1,210 $ 1,250 $ 1,290 $ 1,330 $ 1,400 $ 1,500 $ 1,600 $ 3.0% Postage, interoffice 5037552 Mobility Program 249,873 $ 200,000 $ 200,000 $ 0.0% Uber/Lyft, Volunteer Transportation, Bird, Taxi, Bikeshare. Funded by LCTOP and SB125
Total Operating/Materials 10,931,918 $ 11,577,800 $ 11,164,410 $ 11,407,150 $ 11,977,270 $ 12,575,780 $ 13,204,300 $ 13,863,930 $ 5900011 Cost Allocation Plan 49,530 $ 315,690 $ 325,160 $ 54,490 $ 56,130 $ 57,820 $ 59,560 $ 61,350 $ 3.0% Interdepartmental charges/City allocation support 5900061 Fix Charge - Information Systems 85,610 $ 88,570 $ 89,070 $ 94,180 $ 97,010 $ 99,930 $ 102,930 $ 106,020 $ 3.0% Support needed to run computer, equipment and phone 5900071 Fix Charge - Printing 10,570 $ 12,510 $ 15,980 $ 11,630 $ 11,980 $ 12,340 $ 12,720 $ 13,110 $ 3.0% Provides brochures/informational material, Based on usage 5900091 Fix Charge - Risk Mgmt. 15,190 $ 17,490 $ 19,330 $ 16,710 $ 17,220 $ 17,740 $ 18,280 $ 18,830 $ 3.0% Claims/Insurance 5900101 Fix Charge - Records Mgmt. 1,660 $ 4,480 $ 4,470 $ 1,830 $ 1,890 $ 1,950 $ 2,010 $ 2,080 $ 3.0% Based on usage 5900111 Fix Charge - Communications 68,070 $ 45,970 $ 50,310 $ 74,880 $ 77,130 $ 79,450 $ 81,840 $ 84,300 $ 3.0% Based on number of radios/telephones 5900141 Fix Charge - NPDES 16,290 $ 17,770 $ 18,360 $ 17,920 $ 18,460 $ 19,020 $ 19,600 $ 20,190 $ 3.0% Municipal/Industrial Permit Compliance 5900151 Fix Charge - GIS 860 $ 74,510 $ 80,090 $ 950 $ 980 $ 1,010 $ 1,050 $ 1,090 $ 3.0% Based on usage 5900161 Fix Charge - Volunteer 450 $ 700 $ 480 $ 500 $ 520 $ 540 $ 560 $ 580 $ 3.0% Overhead charge for other divisions 5900171 Fix Charge - Personnel 2,900 $ 2,000 $ 2,910 $ 3,190 $ 3,290 $ 3,390 $ 3,500 $ 3,610 $ 3.0% Based on usage 5900181 Communication/Marketing/PR 6,410 $ 11,390 $ 12,840 $ 7,060 $ 7,280 $ 7,500 $ 7,730 $ 7,970 $ 3.0% Based on usage Total Interdepartmental 258,690 $ 591,080 $ 618,790 $ 284,610 $ 293,230 $ 302,100 $ 311,270 $ 320,700 $ 11,190,608 $ 12,168,880 $ 11,783,200 $ 11,691,760 $ 12,270,500 $ 12,877,880 $ 13,515,570 $ 14,184,630 $ 3,674,000 $ 5,693,550 $ 4,852,260 $ 4,809,000 $ 6,726,000 $ 2,304,000 $ 6,726,000 $ 3,324,000 $ 14,864,608 $ 17,862,430 $ 16,635,460 $ 16,500,760 $ 18,996,500 $ 15,181,880 $ 20,241,570 $ 17,508,630 $ See Long-Term Capital Plan
TOTAL EXPENSES
Operating/Materials
Capital Outlay
ACCOUNTS
EXPLANATION
Expenses
Total Operating Expenses
Administrative
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 294 PROPOSED Packet Pg. 1126
Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City of
REDDING AREA BUS AUTHORITY
FY 2025-2026 to 2031-2032 PROPOSED 7-YEAR PLAN REVENUE
2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 Projected Projected Projected Projected Projected Projected Projected Projected Projected Increase 3140101 Passenger/Fixed Route 419,100 $ 421,000 $ 442,100 $ 464,300 $ 487,600 $ 512,000 $ 537,600 $ 564,500 $ 5.0% Fixed Route Fare Revenues 3140102 Fare Cards 8,000 $ 8,300 $ 8,600 $ 8,900 $ 9,200 $ 9,500 $ 9,800 $ 3.0% Fare Cards (2HR, 1DAY, 7DAY, 30DAY) 3140200 Passenger Fares - Demand Response 65,500 $ 108,652 $ 114,100 $ 119,900 $ 125,900 $ 132,200 $ 138,900 $ 145,900 $ 5.0% Demand Response Fare Revenues 3140500 Charter Service 5,000 $ 9,000 $ 9,500 $ 10,000 $ 10,500 $ 11,100 $ 11,700 $ 12,300 $ 5.0% Charter & Shuttle Services 3140600 Advertising - Bus Stops 22,800 $ 21,900 $ 21,900 $ 22,500 $ 23,100 $ 23,700 $ 24,300 $ 25,000 $ 2.5% Bus Shelter Advertising 3140601 Advertising - Buses 60,000 $ 73,500 $ 73,500 $ 75,400 $ 77,300 $ 79,300 $ 81,300 $ 83,400 $ 2.5% Bus Wrap Advertising 3741007 Sale of Property 6,000 $ 6,200 $ 6,400 $ 6,600 $ 6,800 $ 7,000 $ 7,200 $ 7,400 $ 2.0% Sale of Rolling Stock and Misc. Items 3744011 LCFS Revenue 3,000 $ 3,000 $ 3,600 $ 4,400 $ 5,300 $ 6,400 $ 7,700 $ 9,300 $ 20.0% Low Carbon Fuel Standard Credit Sales 3520003 Real Estate Rentals 15,000 $ 18,000 $ - $ - $ - $ - $ - $ - $ 2.0% Ellis street lease, Parking Lot Lease 3931019 Greyhound/FlixBus Rents 10,800 $ 11,016 $ 11,236 $ 11,240 $ 11,240 $ 11,240 $ 11,300 $ 11,300 $ 0.0% FlixBus Rent of Bays 7 and 8 3991001 Investment Income 6,500 $ 5,000 $ 5,100 $ 5,300 $ 5,500 $ 5,700 $ 5,900 $ 6,100 $ 2.0% Interest from Cash Accounts 3791001 Miscellaneous Revenue 62,285 $ 30,100 $ 30,800 $ 31,500 $ 32,200 $ 32,900 $ 33,600 $ 34,300 $ 2.0% Miscellaneous Revenue (FlixBus commission, TNC Access for All) 3791046 Vending Machine 5,200 $ 4,500 $ 4,600 $ 4,700 $ 4,800 $ 4,900 $ 5,000 $ 5,100 $ 2.0% Vending Machine Commission at Downtown Passenger Terminal and Maintenance Facility
3140106 Amtrak Revenue 392,145 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 0.0% Amtrak Contract (RC-135) & San Joaquin JPA MOU (RC-133) Total 1,092,730 $ 1,119,868 $ 1,131,136 $ 1,164,440 $ 1,199,140 $ 1,235,640 $ 1,274,000 $ 1,314,400 $ 3604602 FTA 5307 Operating (50% Local Match) 2,000,000 $ 3,049,383 $ 2,703,523 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 0.0% FTA Urbanized Area Formula Grants for Redding Urbanized Area 3625607 SB125 State Operating 2,780,000 $ 2,355,000 $ 2,355,000 $ 1,985,503 $ 485,503 $ - $ - $ - $ 0.0% CalSTA SB 125 Transit Program (passthrough SRTA) 3604603 FTA 5311(f) Operating (44.47% Local Match) 281,200 $ 288,900 $ 288,900 $ 288,900 $ 288,900 $ 288,900 $ 288,900 $ 288,900 $ 0.0% FTA Intercity Bus Program (passthrough Caltrans) 3604601 FTA 5311 Operating (44.47% Local Match) 530,000 $ 530,000 $ 530,000 $ 530,000 $ 530,000 $ 530,000 $ 530,000 $ 0.0% FTA Formula Grants for Rural Areas (passthrough Caltrans) 3625606 LCTOP State Operating Grant 499,873 $ 487,277 $ 499,460 $ - $ - $ - $ - $ 2.5% Low Carbon Transit Operations Program 3625602 TDA Operation - Allocation (STA) 2,744,826 $ 1,916,248 $ 2,813,450 $ 2,883,790 $ 2,955,890 $ 3,029,790 $ 3,105,540 $ 3,183,180 $ 2.5% State Transit Assistance of Transportation Development Act (allocated by SRTA) 3625605 LTF/TDA State Operating Grant - $ 386,258 $ 400,000 $ 2,503,082 $ 4,476,568 $ 5,453,050 $ 5,968,150 $ 6,521,650 $ 2.5% Local Transportation Fund, Article 4 of Transportation Development Act (allocated by SRTA)
3625601 STA Reserve - Per request - $ - $ - $ - $ - $ - $ - $ 0.0% State Transit Assistance (SRTA Reserve) 3625601 Planning and Service Area 2 (Older American) 22,889 $ 7,546 $ 7,546 $ 7,546 $ - $ - $ - $ - $ 0.0% Older American Act for free senior rides. 3632608 SGR Operating (Preventative Maintenance) 347,400 $ 300,000 $ 316,000 $ 327,000 $ 333,000 $ 339,000 $ 347,480 $ 345,000 $ 2.5% State of Good Repair (State) 3604602 CRP & CMAQ 157,005 $ - $ - $ - $ - $ 0.0%
Carbon Reduction Program & Congestion Mitigation and Air Quality Program (FHWA to be flexed to FTA)
3625601 Rural Transit Assistance Program 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 0.0% Travel and Training Reimbursement (Scholoarship program, passthrough CALACT) 3604603 FTA 5311 Operating (0% Local Match) - $ 984,114 $ - $ - $ - $ - $ 0.0% FTA Formula Grants for Rural Areas (Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (CRRSAA) and American Rescure Plan Act (ARPA) awarded to the County and redirected to RABA (passthrough Caltrans)) TBD State Transit Funds - $ 750,000 $ 750,000 $ - $ - $ - $ - $ 0.0% FTA Formula Grants for Rural Areas (Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (CRRSAA) and American Rescure Plan Act (ARPA) awarded to the County and redirected to RABA (passthrough Caltrans)) Total 9,373,745 $ 11,056,226 $ 10,665,379 $ 10,527,320 $ 11,071,360 $ 11,642,240 $ 12,241,570 $ 12,870,230 $ 3611602 FTA 5307 Capital - $ 1,945,074 $ 1,891,200 $ - $ - $ - $ - $ - $ Federal funds for capital purchases inc.: Vehicles, IT, Facility, Etc. Requires 20% local Match
3632605 SB 125 State Capital 3,524,000 $ 2,906,338 $ 2,961,060 $ - $ - $ - $ - $ - $ CalSTA SB 125 Transit Program (passthrough SRTA) 3611605 FTA 5339a Capital - $ 489,429 $ - $ 3,607,200 $ 5,140,800 $ 1,603,200 $ 5,140,800 $ 2,419,200 $ FTA Buses and Bus Facilities Program. Requires 20% Local Match TBD TDA Capital - $ - $ - $ 689,850 $ 1,047,653 $ 136,375 $ 992,554 $ 222,522 $ TDA/LTF or STA funds to cover match portion of FTA grants 3632602 LCTOP State Capital 100,000 $ - $ - $ 511,950 $ 537,548 $ 564,425 $ 592,646 $ 622,278 $ Low Carbon Transit Operations Program 3632603 SGR Capital 50,000 $ 352,713 $ - $ - $ - $ - $ - $ 60,000 $ State of Good Repair (State) 3632602 Low Carbon Transit Operations Program (LCTOP) - $ - $ - $ - $ - $ - $ - $ - $ State of Good Repair/ Low Carbon Transit Operations Program Total 3,674,000 $ 5,693,554 $ 4,852,260 $ 4,809,000 $ 6,726,000 $ 2,304,000 $ 6,726,000 $ 3,324,000 $ 14,140,475 $ 17,869,648 $ 16,648,775 $ 16,500,760 $ 18,996,500 $ 15,181,880 $ 20,241,570 $ 17,508,630 $
EXPLANATION
ACCOUNTS
Operating Revenue (Grant)
Capital Revenue
Local Revenue
TOTAL REVENUES
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 295 PROPOSED Packet Pg. 1127
Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City of Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-2032 Number 3 2 2 2 2 0 3 2
Cost 2,987,476 $ F 2,250,554 $ F 2,364,000 $ F 2,484,000 $ F 2,610,000 $ F - $ 4,320,000 $ F 3,024,000 $ F Number 5 7 0 5 4 2 2 0
Cost 1,740,000 $ F 2,562,000 $ F - $ F 2,025,000 $ F 3,816,000 $ F 2,004,000 $ F 2,106,000 $ F - $ - $ - $ 2,188,260 $ - $ - $ - $ - $ - $
- $ 320,000 $ - $ - $ - $ - $ - $ - $
1 51,000 $ F - $ - $ - $ - $ - $ - $
100,000 $ - $ - $ - $ - $ - $ - $ - $
665,530 $ 510,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ Total Capital Costs $5,493,006 $5,693,554 $4,852,260 $4,809,000 $6,726,000 $2,304,000 $6,726,000 $3,324,000 -$ $1,945,074 1,891,200 $ -$ -$ -$ -$ -$
1,601,944 $ 489,429 $ 3,607,200 $ 5,140,800 $ 1,603,200 $ 5,140,800 $ 2,419,200 $ -$ - $ -$ -$ -$ - - -
-$ - $ -$ 689,850 $ 1,047,653 $ 136,375 $ 992,554 $ 222,522 $ LCTOP 100,000 $ - $ -$ 511,950 $ 537,548 $ 564,425 $ 592,646 $ 622,278 $ SGR 50,000 $ 352,713 $ -$ -$ -$ -$ -$ 60,000 $
-$ - $ -$ -$ -$ -$ -$ -$
5310 Federal -$ -$ -$ -$ -$ -$ -$
SB125 3,741,062 $ 2,906,338 $ 2,961,060 $ -$ -$ -$ -$ -$ Total Capital Revenues $5,493,006 $5,693,554 $4,852,260 $4,809,000 $6,726,000 $2,304,000 $6,726,000 $3,324,000 24-25 25-26 26-27 27-28 28-29 29-30 30-31 31-32
Fixed Route Bus 598,000 $ 822,360 $ 864,000 $ 908,000 $ 954,000 $ 1,002,000 $ 1,053,000 $ 1,106,000 $ Electric Bus 1,438,000 $ 1,590,600 $ 1,671,000 $ 1,755,000 $ 1,843,000 $ 1,936,000 $ 2,033,000 $ 2,135,000 $ Hybrid Bus 937,884 $ 1,125,277 $ 1,182,000 $ 1,242,000 $ 1,305,000 $ 1,371,000 $ 1,440,000 $ 1,512,000 $ Gasoline Cutaways 224,000 $ 236,000 $ 248,000 $ 261,000 $ 275,000 $ 289,000 $ 304,000 $ 320,000 $ Electric Vans 348,000 $ 366,000 $ 385,000 $ 405,000 $ 426,000 $ 448,000 $ 471,000 $ 495,000 $ Planning Grant, Clean California, FHWA
5339 Federal (Bus & Fac.)
5307 Federal (Capital Asst.)
Capital Item Cost
5339c Federal (Low/No)
Capital Funds (TDA)
Fare Equipment Cost
Cost
Replacement Vans
Miscellaneous Capital Projects Cost
Fund Source
Property Expansion Cost
Long-Term Capital Plan
Redding Area Bus Authority
Electric Vehicle Chargers Cost
Capital Expense Item
Purchase Buses
Support Vehicles
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 296 PROPOSED Packet Pg. 1128
Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City of
REDDING HOUSING AUTHORITY
ORGANIZATION CHART
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 297
PROPOSED
Packet Pg. 1129 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City This page left intentionally blank.
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 298
PROPOSED
Packet Pg. 1130 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
HOUSING AUTHORITY OF THE CITY OF REDDING
Overview
The Housing Authority of the City of Redding (RHA) administers the Section 8 Housing Choice Voucher (HCV) Program, a federal grant program funded through and administered by the United States Department of Housing and Urban Development (HUD). The HCV program is the federal government’s major program for assisting very low-income households, the elderly, and persons with disabilities to afford decent, safe and sanitary housing in the private market.
The RHA’s grant revenue from HUD consists of the following: HCV administrative fees, Housing Assistance Payments (HAP), and Family Self-Sufficiency (FSS) Coordinator funding. These funds are directly deposited each month into the RHA’s bank account based on a budget developed by HUD. In addition to the direct revenue received from HUD, RHA also receives HCV program fraud recovery revenue from current and previous program participants that are repaying assistance for which they were not entitled.
Projected funding for 2025-26 and 2026-27 budget years are conservatively forecasted based on projected HAP costs and the number of annual months leased. Program rules do not allow Housing Authorities to over-lease or overspend their allocated budget. Over-leasing occurs when actual annual unit months leased exceeds the total number of allocated baseline units. The current baseline units allocated to the RHA under its current Annual Contributions Contract is 1672. This number is comprised of 1,577 of traditional HCVs and 95 Veteran’s Affairs Supportive Housing Vouchers (VASH). In addition to these vouchers, two special purpose allocations are administered by the RHA; 75 in Mainstream Vouchers and 47 Emergency Housing Vouchers (EHV). The maximum annual unit months leased is 21,528 (18,924 for standard vouchers, 1,140 for VASH, 900 for Mainstream Vouchers and 564 for EHV). Although HUD allocates a specific number of vouchers to the RHA, the RHA may only lease up as many as can be supported by the annual budget provided by HUD.
Description FY 2023-24 FY 2024-25 FY 2024-25 FY 2025-26 Increase FY 2026-27 Increase Actual Adopted Amended* Proposed (Decrease) Proposed (Decrease) Redding Housing Authority $ 15,222,984 $ 14,804,404 $ 14,929,604 $ 16,482,549 $ 1,552,945 $ 15,532,602 $ (949,947) Total $ 15,222,984 $ 14,804,404 $ 14,929,604 $ 16,482,549 $ 1,552,945 $ 15,532,602 $ (949,947) The following table displays the Division’s budget divided into four main expenditure groups.
Materials,
Division Supplies & Capital Debt
Personnel Services Outlay Service Total
FY 2026-27 Proposed $ 1,957,490 $ 455,652 $ 13,119,460 - $ 15,532,602 FY 2025-26 Proposed 1,667,910 898,919 13,915,720 - 16,482,549 FY 2024-25 Amended 1,727,070 400,330 12,802,204 - 14,929,604 Redding Housing Authority
FY 2023-24 Actual 1,462,094 429,774 13,331,115 - 15,222,984 FY 2026-27 Proposed $ 1,957,490 $ 455,652 $ 13,119,460 - $ 15,532,602 FY 2025-26 Proposed $ 1,667,910 $ 898,919 $ 13,915,720 - $ 16,482,549 FY 2024-25 Amended $ 1,727,070 $ 400,330 $ 12,802,204 - $ 14,929,604 Total
FY 2023-24 Actual $ 1,462,094 $ 429,774 $ 13,331,115 - $ 15,222,984 City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 299
PROPOSED
Packet Pg. 1131 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Personnel
The Housing Division employees are shared between HCD and the Redding Housing Authority and presently include 19.5 fulltime equivalents (FTEs) budgeted for FY 2025-26 and FY 2026-27. The FY 2024-25 budget provided for 18.48 FTEs.
The following table displays the Housing Division’s staffing for full-time and part-time employees.
Description FY 2023-24 FY 2024-25 FY 2024-25 FY 2025-26 Increase FY 2026-27 Increase Actual Adopted Amended Proposed (Decrease) Proposed (Decrease) F/T 19.00 18.00 19.00 19.00 - 19.00 -
Housing Division P/T 0.48 0.48 0.48 0.50 0.02 0.50 -
Total 19.48 18.48 19.48 19.50 0.02 19.50 -
F/T 19.00 18.00 19.00 19.00 - 19.00 -
Total P/T 0.48 0.48 0.48 0.50 0.02 0.50 -
Total 19.48 18.48 19.48 19.50 0.02 19.50 -
Capital Outlay
Capital expenditures for RHA primarily consist of HAP to households on the HCV program. The number of households which the RHA may aid is determined by HUD, and the HAP expenditures are reimbursed accordingly. Given the projection of available funding, expected program activity and the average cost per unit, it is anticipated that 19,673-unit lease months will be realized during the 2025-26 fiscal year (18,319 HCV units, 900 Mainstream Units, and 454 EHV units). The 2026-27 fiscal year is anticipated to have 18,426-unit lease months realized (17,486 HCV Units, 900 Mainstream Units, and 40 EHV Units).
The requested Capital Outlay Budget of $13,915,720 for FY 2025-26 reflects an increase of $1,187,826 from the adopted FY 2024-25 budget of $12,767,894. This increase accounts for the increased per unit cost of the HCV, MS, and EHV programs.
The requested Capital Outlay Budget of $13,119,460 reflects a decrease of $796,260. Due to the rising per unit costs, the Redding Housing Authority is projecting a downward trend in the number of HCV unit lease months we will be able to realize.
Additionally, the Emergency Housing Voucher program is scheduled to conclude in FY 2026-27, causing a decrease in the expenses associated with this program.
Significant Issues
The administrative revenue projections for FY 2025-26 and FY 2026-27 are based on a per-voucher administrative reimbursement rate (pro-ration) of 0.89, this is the same per unit factor as utilized in the FY 2024-25 budget. With rising per unit costs, the Housing Authority will be unable to support as many vouchers as it has historically. The decreased voucher capacity directly impacts the fund’s ability to recuperate administrative fees. It is anticipated that the Housing Authority will be utilizing reserve funding to cover administrative expenses in the presented two-year budget. However, as classic pension employees retire and their positions are forfeited to attrition, we anticipate relief in the form of personnel savings over the next two years.
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 300
PROPOSED
Packet Pg. 1132 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Performance Measures and Workload Indicators
2023-24 2024-25 2025-26 2026-27
Workload Indicators Actual Estimated Projected Projected Fair Housing Referrals 72 54 65 65
Family Self-Sufficiency Participants 33 23 50 50
HAP Contracts Leased (Annual) 19,539 19,460 19631 18319 HCV Landlords 250 237 320 320
Inspections Completed 1,434 1,346 1,450 1,450
New Leases 274 352 240 240
Project-Based Voucher Units Leased 248 303 336 365
Reexaminations/Interims Completed 2,559 2,779 2,500 2,500 Terminations 237 266 250 250
Vouchers Issued 336 343 300 300
Unmet Needs
The Redding Housing Authority presently is not anticipating any unmet needs.
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 301
PROPOSED
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PROPOSED
Packet Pg. 1134 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CONTINUUM OF CARE
Overview
The Continuum of Care (COC) Program is designed to promote communitywide commitment to the goal of ending homelessness; provide funding for efforts by nonprofit providers, and state and local governments to quickly rehouse homeless individuals and families. The City of Redding is located within the area of the NorCal COC of which represents Shasta, Lassen, Plumas, Sierra, Siskiyou, Del Norte and Modoc Counties. Each County has representatives of relevant local organizations such as local officials, service provider agencies, formerly homeless individuals, and advocates that form the local COC organization, call the NorCal COC Advisory Boards (Advisory Board). Each County’s Advisory Board elects one member to represent their County as the Executive Board, which is the decision-making body for the NorCal COC.
On August 15, 2023, the City Council authorized the City of Redding to serve as the Administrative Entity (AE) following Shasta County Health and Human Services’ notice that it would no longer fulfill this role. On September 19, 2023, the City Council confirmed the City of Redding's interim authorization to serve as the AE for the NorCal COC for a two-year period.
As part of its responsibilities, the City will act as a pass-through agency for specific grant funds received from the State of California. In the fiscal year 2023-24, the NorCal COC had an amended budget of $6,436,670 due to the City's receipt of Housing Homeless Assistance Program grant funds. In the fiscal year 2024-25, the NorCal COC's amended budget was reduced to $5,377,920, reflecting a decrease of $1,058,750 from the previous year. This reduction is attributed to the expenditure of grant funds.
On May 20, 2025, City Council approved staff to send a letter to the NorCal COC, notifying them that the City’s role as AE will terminate December 31, 2025. Expense estimates reflect the estimated administrative costs to run the COC program from July to December 2025. The FY 2025-26 budget requests $131,790 for administrative expenses. Any remaining grant funds will be carried forward administratively to fulfill contract obligations at the close of the current fiscal year. Should any grant funds remain at the close of the City’s involvement as the AE, the funds will be transferred to the new AE. In the unlikely event that a new AE is not identified, the City will hold funds until direction is provided by the NorCal COC Executive Board.
Description FY 2023-24 FY 2024-25 FY 2024-25 FY 2025-26 Increase FY 2026-27 Increase Actual Adopted Amended* Proposed (Decrease) Proposed (Decrease) Continuum of Care $ 792,501 - $ 5,377,920 $ 131,790 $ (5,246,130) - $ (131,790) Total $ 792,501 - $ 5,377,920 $ 131,790 $ (5,246,130) - $ (131,790) The following table displays the Division’s budget divided into four main expenditure groups.
Materials,
Division Supplies & Capital Debt
Personnel Services Outlay Service Total
FY 2025-26 Proposed - - $ 131,790 - $ 131,790
Continuum of Care FY 2024-25 Amended - - 5,377,920 - 5,377,920 FY 2023-24 Actual - - 792,501 - 792,501
FY 2025-26 Proposed - - $ 131,790 - $ 131,790
Total FY 2024-25 Amended - - $ 5,377,920 - $ 5,377,920
FY 2023-24 Actual - - $ 792,501 - $ 792,501
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 303
PROPOSED
Packet Pg. 1135 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City This page left intentionally blank.
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 304
PROPOSED
Packet Pg. 1136 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
WEST CENTRAL LANDFILL
Overview
The West Central Landfill is owned by the county of Shasta. The City of Redding is responsible for daily operations of the landfill. This arrangement was started in 1989. Funding for the landfill is provided by fees collected for the disposal of waste (Tipping fees). The decision-making body for the Landfill is the Solid Waste Disposal Committee. The Committee is made up of the County Executive Officer (CEO) for Shasta County, the City Manager (CM) for City of Redding, and a member-at-large who is jointly appointed to the committee by the CEO and CM.
The budget for West Central landfill is approved Annually by the Solid Waste Disposal Committee. Tipping Fees are set annually based on the projected operating expenses for the year. The landfill is fully funded by tipping fees and no additional funding is provided by the City or County.
Description FY 2023-24 FY 2024-25 FY 2024-25 FY 2025-26 Increase FY 2026-27 Increase Actual Adopted Amended* Proposed (Decrease) Proposed (Decrease) West Central Landfill $ 3,442,455 $ 4,247,710 $ 5,512,510 $ 3,349,128 $ (2,163,382) $ 3,318,254 $ (30,874) Total $ 3,442,455 $ 4,247,710 $ 5,512,510 $ 3,349,128 $ (2,163,382) $ 3,318,254 $ (30,874) The following table displays the Division’s budget divided into four main expenditure groups.
Materials,
Division Supplies & Capital Debt
Personnel Services Outlay Service Total
FY 2026-27 Proposed $ 1,798,084 $ 1,520,170 - - $ 3,318,254 FY 2025-26 Proposed 1,762,328 1,466,800 120,000 - 3,349,128 FY 2024-25 Amended 1,822,490 1,435,360 2,245,700 8,960 5,512,510 West Central Landfill
FY 2023-24 Actual 1,701,972 1,263,878 476,126 480 3,442,455 FY 2026-27 Proposed $ 1,798,084 $ 1,520,170 - - $ 3,318,254 FY 2025-26 Proposed $ 1,762,328 $ 1,466,800 $ 120,000 - $ 3,349,128 FY 2024-25 Amended $ 1,822,490 $ 1,435,360 $ 2,245,700 $ 8,960 $ 5,512,510 Total
FY 2023-24 Actual $ 1,701,972 $ 1,263,878 $ 476,126 $ 480 $ 3,442,455 City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 305
PROPOSED
Packet Pg. 1137 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Personnel
The West Central Landfill employees are shared between Solid Waste Utility and the West Central Landfill and presently include 13 full-time equivalents (FTEs) budgeted for FY 2025-26 and FY 2026-27 The following table displays the West Central Landfill staffing for full-time and part-time employees.
Description FY 2023-24 FY 2024-25 FY 2024-25 FY 2025-26 Increase FY 2026-27 Increase Actual Adopted Amended Proposed (Decrease) Proposed (Decrease) F/T 13.00 13.00 13.00 13.00 - 13.00 -
West Central Landfill P/T - - - - - - -
Total 13.00 13.00 13.00 13.00 - 13.00 -
F/T 13.00 13.00 13.00 13.00 - 13.00 -
Total P/T - - - - - - -
Total 13.00 13.00 13.00 13.00 - 13.00 -
Significant Issues
West Central Landfill's significant issues are included in Solid Waste Utility's significant issues listed under the Public Works Department overview section.
Unmet Needs
West Central Landfill's unmet needs are included in Solid Waste Utility's unmet needs listed under the Public Works Department overview section.
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 306
PROPOSED
Packet Pg. 1138 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City INDEX
Airports.............................................................................................................................185 Appendix ..........................................................................................................................253 Budget Development Calendar...........................................................................................11 Budget Message..................................................................................................................15 Budget Policies.................................................................................................................269 Budget Resolution ................................................................................................................3 Budget Users Guide..............................................................................................................6 City Attorney’s Office ......................................................................................................171 City Clerk’s Office ...........................................................................................................165 City Council......................................................................................................................153 City Manager’s Office ......................................................................................................155 City Treasurer’s Office .....................................................................................................159 Community Services Department.......................................................................................97 Comparative Fund Summary - All Funds ..........................................................................31 Comparative Summary of Estimated Revenues .................................................................56 Comparative Summary of Expenditure Programs - All Funds...........................................70 Development Services Department ..................................................................................111 Electric Department..........................................................................................................121 Expenditures and Revenues per Resident...........................................................................39 Finance .............................................................................................................................159 Fire Department................................................................................................................141 Fund Descriptions.............................................................................................................264 General Fund Ten-Year Financial Plan..............................................................................43 General Fund Source and Use Graphs................................................................................37 General Government.........................................................................................................151 Glossary/Acronyms ..........................................................................................................257 History and Locale of the City of Redding........................................................................ 89 Housing and Community Development ...........................................................................179 Index .................................................................................................................................307 Information Technology Department ...............................................................................193 Mission Statement ..............................................................................................................12 Municipal Officials...............................................................................................................4 Non-Departmental ............................................................................................................177 City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 307
PROPOSED
Packet Pg. 1139 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City Organization Chart (City of Redding)..................................................................................5 Personnel Department ......................................................................................................203 Police Department ............................................................................................................213 Public Works ....................................................................................................................223 Redding Area Bus Authority ............................................................................................289 Redding Housing Authority .............................................................................................297 Sales Tax - Where it Goes ..................................................................................................41 Statement of Estimated Revenues ......................................................................................58 Summary of Authorized Full-Time Positions ....................................................................72 Summary of Capital Projects..............................................................................................85 Summary of Cost Allocation Charges and In-Lieu Property Taxes (PILOT)....................75 Summary of Expenditure Programs - All Funds ................................................................67 Summary of Fund Transfers...............................................................................................74 Summary of Internal Service Fund Charges.......................................................................78 Summary of Long-Term Debt ............................................................................................81 Table of Contents.................................................................................................................1 City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 308
PROPOSED
Packet Pg. 1140 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City This page intentionally left blank.
City of Redding Biennial Budget - Fiscal Years Ending June 30, 2026 and 2027 309
PROPOSED
Packet Pg. 1141 Attachment: 2025-27 COR Biennial Budget Proposed Draft (Hard Copies to Council) (9.1(c)--Consider Resolution adopting and approving City
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Offer an Ordinance amending Redding Municipal Code Title 6 (Business Taxes, Licenses, and Regulation), Chapter 6.13 (Redding Municipal Code Tobacco-Oriented Retailing) adopting a Tobacco-Oriented Retail license for first reading by title only, waive the full reading;
(2) Authorize the City Attorney to prepare a summary ordinance and the City Clerk to publish the same in accordance with law; and
(3) Find that the adoption of this ordinance is exempt from environmental review pursuant to California Environmental Quality Act guidelines 15060(c)(2) and 15061(b)(3) and further find that the passage of this ordinance will have no foreseeable direct or indirect physical change in the environment.
Fiscal Impact
If the new ordinance is adopted, all Tobacco-Oriented Retailers will be required to pay a fee of $4,828.27 - the fee is based on Code Enforcement administering the Tobacco-Oriented Retailer Program and that there are 29 vape/smoke shops that will be classified as Tobacco-Oriented Retailers. As proposed, Code Enforcement staff would include one full-time Neighborhood Preservation Officer and a half-time Administrative Assistant. The fee could increase or decrease if the number of Tobacco-Oriented Retailers is found to be more or less than 29.
Alternative Action
The City Council (Council) may choose not to adopt an ordinance regulating Tobacco-Oriented Retailers or the Council may direct staff to edit the licensing ordinance to incorporate licensing all tobacco retailers. This will significantly drop the fee for the program to $1,176.63 since it is spread out over approximately 119 retailers. The Council may also provide alternate direction to staff.
MEETING DATE: June 17, 2025
ITEM NO. 9.1(d)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.1(d)--Consider adopting a tobacco-oriented retailer ordinance.
Jason Gibilisco, Management
Assistant to the City Manager
Packet Pg. 1142
Report to Redding City Council June 12, 2025
Re: 9.1(d)--Consider adopting a tobacco-oriented retailer ordinance Page 2 Background/Analysis
On March 18, 2025, staff presented the Council with background information on previous tobacco retail items, including the Council's most recent direction from September 17, 2025, Council meeting and the fees associated with operating a tobacco retail program through both the City of Redding Police Department and Code Enforcement Division. At that meeting, the Council directed staff to return with a licensing ordinance that includes location restrictions and capacity limit for smoke and vape shops.
Staff worked with Code Enforcement and the City Attorney’s Office to create a draft tobacco retailing ordinance (Draft Ordinance) that was specific to creating a license requirement for vape and smoke shops. In addition to creating the draft ordinance staff also added location restrictions and capacity limit for smoke and vape shops. Staff has confirmed adding these restrictions does not require an update to the zoning code and can be accomplished via the ordinance.
Under the draft ordinance, all Tobacco-Oriented Retailers will be required to obtain a license unless they meet at least three out of seven exemption criteria. These criteria are designed to exclude general tobacco retailers such as gas stations, convenience stores, supermarkets, golf courses and other similar stores from the definition of “Tobacco-Oriented Retailer.” They include:
1. Businesses that have contracts with tobacco manufactures;
2. Businesses that have gas pumps and sell gas;
3. Businesses that have licenses to sell beer and wine or liquor;
4. Businesses who have ownership rights to the property;
5. Businesses that have a minimum gross sales of non-tobacco products in excess of 75 percent;
6. Businesses that include a pharmacy on site; and
7. Businesses whose primary use is a golf course.
To create this definition and establish the criteria, staff met with various business owners to learn the differences in their stores compared to smoke and vape shops. Staff also attempted to meet with smoke and vape shop staff but they were not interested in discussions.
In the City of Redding (City) there are approximately 29 Tobacco-Oriented Retailers. Staff determined that the capacity limit for Tobacco-Oriented Businesses is 20 and recommends reducing the total number of Tobacco-Oriented Retailers respectively. Current Tobacco-Oriented Retailers will be allowed to continue to operate as long as they submit a complete and accurate Tobacco-Oriented Retail application and pay the required fee within 60 days of ordinance adoption.
New Tobacco-Oriented Retailers will not be permitted to operate within 1,000 feet of a youthoriented facility following the adoption of the draft ordinance. A youth-oriented facility includes schools providing instruction of any grades Kindergarten through grade 12, public library, public parks, and other similar youth-oriented facilities that are primarily used to host recreation and social activities to youth.
Packet Pg. 1143
Report to Redding City Council June 12, 2025
Re: 9.1(d)--Consider adopting a tobacco-oriented retailer ordinance Page 3 The final distance requirement of the draft ordinance restricts new Tobacco-Oriented Retailers to operate within 500 feet of an existing Tobacco-Oriented Retailers. The distance requirements for both youth-oriented facilities and existing Tobacco-Oriented Retailers will only come into effect once the total number of Tobacco-Oriented Retailers drops under 20, affecting only new Tobacco-Oriented Retailers that seek to operate following adoption of the draft ordnance.
The draft ordinance allows for enforcement, inspections, and education to all tobacco retailers not just Tobacco-Oriented Retailers. All retailers will be subject to inspections; retainment of purchase invoices for tobacco products for staff review; there will be no sale of flavored tobacco products; and no tobacco products to be sold to a person under the age of 21. This allows for the City to investigate complaints on retailers that are not classified as Tobacco-Oriented Retailers and hold all tobacco retailers accountable.
Pending adoption of the ordinance, staff will bring back a resolution for adoption of a TobaccoOriented Retailer licensing program and a resolution for adoption of administrative fines.
Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.
Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
^Draft Ordinance
^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance Staff Report from September 17, 2024
Staff Report from March 18, 2025
Packet Pg. 1144
DRAFT NEW ORDINANCE
ORDINANCE NO. ______
AN ORDINANCE OF THE CITY OF REDDING AMENDING TITLE 6
(BUSINESS TAXES, LICENSES AND REGULATIONS) OF THE
REDDING MUNICIPAL CODE BY ADDING CHAPTER 6.13 (TOBACCOOREIENTED RETAILING), RELATING TO THE REGULATION OF
TOBACCO RETAILERS
Section 1. Redding Municipal Code Title 6 (Business Taxes, Licenses and Regulations) is amended to read as follows:
Title 6 – BUSINESS TAXES, LICENSES AND REGULATIONS
Chapter 6.13
6.13.010 Legislative findings.
A. State law prohibits the sale or furnishing of cigarettes, tobacco products and smoking paraphernalia to persons under 21 years of age except active duty military personnel who are 18 years of age or older (California Penal Code § 308).
B. State law requires that tobacco retailers check the identification of tobacco purchasers who reasonably appear to be under 21 years of age (California Business & Professions Code § 22956) and provides procedures for using persons under 21 years of age to conduct onsite compliance checks of tobacco retailers (California Business & Professions Code § 22952).
C. State law requires that tobacco retailers post a conspicuous notice at each point of sale stating that selling tobacco products to anyone under 21 years of age is illegal (California Business & Professions Code § 22952, California Penal Code § 308).
D. State law prohibits the sale or display of cigarettes through a self-service display and prohibits public access to cigarettes without the assistance of a clerk (California Business & Professions Code § 22962).
E. State law prohibits the sale of "bidis" (a type of hand-rolled filterless cigarette) except at those businesses that prohibit the presence of minors (California Penal Code § 308.1).
F. State law prohibits the manufacture, distribution, or sale of cigarettes in packages of less than 20 and prohibits the manufacture, distribution, or sale of "roll-your-own" tobacco in packages containing less than six-tenths of an ounce of tobacco (California Penal Code § 308.3).
Packet Pg. 1145 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) G. State law prohibits public school students from smoking or using tobacco products while on campus, while attending school-sponsored activities, or while under the supervision or control of school district employees (California Education Code § 48901(a)).
H. In 2023, 41.2% of surveyed Shasta County high school students reported having previously used tobacco, the highest level of tobacco use recorded in the state (2023 California Youth Tobacco Survey).
I. In 2023, 31.6% of surveyed Shasta County high school students stated that they vape to relax or relieve stress and anxiety (2023 California Youth Tobacco Survey).
J. In 2023, 16.8% of surveyed Shasta County high school students reported currently using tobacco products (including vapes, cigarettes, cigars, little cigars and cigarillos, smokeless tobacco, heated tobacco products, hookah and nicotine pouches) (2023 California Youth Tobacco Survey).
K. In 2023, Shasta County had the highest level of current tobacco use by high school students in the State (2023 California Youth Tobacco Survey).
L. In 2023, 63.2% of currently vaping high school students reported that they believed it was easy to obtain vapes and cigarettes from stores (2023 California Youth Tobacco Survey).
M. In 2023, 32.6% of surveyed Shasta County students reported buying vapes, pods, or e-liquid directly from a tobacco or smoke shop (2023 California Youth Tobacco Survey).
N. In 2023, 23.4% of surveyed Shasta County students under the age of 18 reported asking someone to buy them a vape, pod or e-liquid (2023 California Youth Tobacco Survey).
O. The city has a substantial interest in promoting compliance with federal, state, and local laws intended to regulate tobacco sales and use; in discouraging the illegal purchase of tobacco products by persons under 21 years of age; in promoting compliance with laws prohibiting sales of cigarettes and tobacco products to persons under 21 years of age; and in protecting youth and underserved populations from the harms of tobacco use. California courts in Cohen v. Board of Supervisors (Cal. 1985) 40 Cal.3d 277, Bravo Vending v. City of Rancho Mirage (4
th Dist. 1993) 16 Cal.App.4th 383, and Prime Gas v. City of Sacramento (3rd Dist. 2010) 184 Cal.App.4th 697, have affirmed the power of local jurisdictions to regulate business activity in order to discourage violations of law. State law authorizes local tobacco retailer licensing laws to provide for the suspension or revocation of the local tobacco retailer license for any violation of a state tobacco control law (California Business & Professions Code § 22971.3).
P. Requiring a Tobacco-Oriented Retailer license will not unduly burden legitimate business activities of retailers who sell or distribute cigarettes or other tobacco products to adults. It will, however, allow the city to regulate the operation of lawful businesses to discourage violations of federal, state, and local tobacco-related laws.
Packet Pg. 1146 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) Q. In 2024, the Redding Police Department conducted 41 undercover decoy operations using underage individuals to attempt to purchase tobacco products. Of these, five businesses unlawfully sold tobacco products to minors—and all five were Tobacco-Oriented Retailers.
This indicates a disproportionate rate of noncompliance among Tobacco-Oriented Retail businesses and highlights the need for enhanced local oversight and stricter regulations specific to this category of retailers.
R. In 2024, the California Department of Tax and Fee Administration conducted inspections of seven Tobacco-Oriented Retail businesses within the city. All seven were found to be in violation of state law. Documented violations included attempted sales of illegally imported tobacco products, the unlawful sale of cannabis products, and the confirmed presence of flavored tobacco products prohibited under state law. This pattern of noncompliance underscores the necessity for enhanced local regulation and enforcement of Tobacco-Oriented Retailers.
S. In 2025, the California Department of Tax and Fee Administration conducted inspections of six Tobacco-Oriented Retailers within the city. All six Tobacco-Oriented Retailers were found to be in violation of state laws or regulations. Violations included the possession of illegal tobacco products, operating without a valid state tobacco license, offering self-service access to tobacco products, selling untaxed cigarettes, and failing to maintain required invoices onsite.
These findings demonstrate a continued and widespread pattern of noncompliance among Tobacco-Oriented Retailers and further support the need for robust local oversight and regulation.
T. General Tobacco Retailers subject to inspections within the city who have significant investment in their businesses such as ownership of the real property on which their businesses are located, contracts with tobacco manufacturers, licenses to sell alcohol, or substantial nontobacco-related sales have generally been found to be more compliant with state laws and regulations.
U. Law enforcement has encountered difficulty enforcing state laws and regulations relating to tobacco sales in the city due to the transient nature of many Tobacco-Oriented Retailers that lack significant investment in their business property or operations, are able to quickly and easily relocate to other locations in the city under different business names, and have little to lose when circumventing state and local regulations, causing harm to the community and undermining established safeguards.
V. By excluding businesses that meet certain operational and regulatory benchmarks, such as those with contracts with tobacco manufacturers, established relationships with alcohol licensing bodies, and permanent business operations, this regulatory program seeks to ensure that only businesses that are committed to lawful and responsible retail practices are designated as Tobacco-Oriented Retail businesses eligible for licensure under this ordinance.
W. During public comment at previous City Council meetings on tobacco, multiple local business owners testified to significant differences in operational practices between general tobacco retailers and Tobacco-Oriented Retailers. Specifically, general retailers reported proactive Packet Pg. 1147 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) compliance efforts, including the purchase and use of ID verification software and refusal to carry banned tobacco or drug-related products. These practices contrast with the perceived lax compliance and product offerings of Tobacco-Oriented Retailers, suggesting a need for heightened regulation of Tobacco-Oriented Retailers.
X. Public testimony further indicated that Tobacco-Oriented Retailers often lease rather than own their business premises and operate with lower financial and regulatory investment compared to general tobacco retailers such as gas stations and convenience stores. Because it is easier and cheaper for some Tobacco-Oriented Retailers to open and move locations, they can avoid accountability and enforcement by quickly relocating or changing their business name. These characteristics support the imposition of a local licensing requirement to ensure that TobaccoOriented Retailers have a meaningful stake in their ongoing lawful operation within the city.
6.13.020 Purpose
It is the intent of the city, in enacting this Chapter, to ensure compliance with the business standards and practices of the city, 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 and nicotine products to youth. This Chapter is not intended 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.
6.13.030 Definitions
(1) "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 whom 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. (2) "City" means the City of Redding.
(3) "City Manager" means the manager of the city as appointed by the City Council in accordance with the City's Municipal Code, or the city manager's designee. (4) "Department" means any city division or department charged with enforcement or administration of the provisions of this Chapter.
(5) "Director" means Chief of Police or the director of the Department of Development Services, the director's designee, or such other director as may be designated by the City Manager to administer the provisions of this Chapter.
(6) "Flavored tobacco product" means any tobacco product that imparts one or more of the following:
Packet Pg. 1148 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) (A)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
(B) A heating, cooling, or numbing sensation distinguishable by an ordinary consumer during the consumption of such tobacco product.
(7) "General Tobacco Retailer" means any person who sells, offers for sale, or does or offers to exchange for any form of consideration tobacco products or tobacco paraphernalia. This definition shall be without regard to the quantity of tobacco, tobacco products, or tobacco paraphernalia sold, offered for sale, exchanged, or offered for exchange. By definition, all Tobacco-Oriented Retailers are General Tobacco Retailers. (8) "General Tobacco Retailing" means engaging in any of those activities of a General Tobacco Retailer. This definition shall be without regard to the quantity of tobacco, tobacco products, or tobacco paraphernalia sold, offered for sale, exchanged, or offered for exchange.
(9) “Golf Course” means a business in which all or a portion of land on which the business is operated is used for the playing of golf. This shall include pitch-and-putt courses but shall not include stand-alone driving ranges or, miniature golf courses. A golf course may include a snack bar, pro shop and/or restaurant.
(10) “Lapse” means the cessation or expiration of a Tobacco-Oriented Retail license due to the failure to renew it within the required time frame or the loss of eligibility for the Tobacco-Oriented Retail license. A Tobacco-Oriented Retail license is considered lapsed if the licensee does not complete the necessary steps to renew or maintain the TobaccoOriented Retail license, resulting in the license no longer being valid or active. This does not include situations in which the license is temporarily suspended. (11) "License" means a Tobacco-Oriented Retail license issued by the city pursuant to this Chapter.
(12) "Licensee" means any proprietor holding a Tobacco-Oriented Retail license issued by the city pursuant to this Chapter.
(13) "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. (14) "Owner" means any of the following:
Packet Pg. 1149 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) (A)A person with sole or aggregate ownership in the Tobacco-Oriented Retail business applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance;
(B) The chief executive officer of a nonprofit, Tobacco-Oriented Retailer business, or other entity;
(C) A member of the board of directors of a nonprofit, Tobacco-Oriented Retailer business, or other entity;
(D)The trustee(s) and all persons who have control of the trust and/or the TobaccoOriented Retailer business that is held in trust; (E) An individual who participates in the direction, control, or management of the person applying for a license. Such an individual includes, but is not limited to, any of the following:
a. A general partner of a Tobacco-Oriented Retailer business that is organized as a partnership;
b. Anonymous member manager or managing member of a TobaccoOriented Retail business that is organized as a limited liability company; c. An officer or director of a Tobacco-Oriented Retailer that is organized as a corporation;
d. Any individual who assumes responsibility for the license. (15) “Permanent Revocation” means permanent invalidation of a Tobacco-Oriented Retailer license, which results in the license holder being prohibited from operating as a TobaccoOriented Retailer at the licensed location. This action is final and not subject to reinstatement unless specifically authorized after a successful appeal. Once a TobaccoOriented Retail license is permanently revoked, the licensee is no longer eligible to operate under that license at the location, and no further renewal or reissuance of the license will be allowed unless new application requirements are met. (16) "Person" means any individual, firm, partnership, joint venture, limited liability company, nonprofit organization, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, trustee, syndicate, state, county, city, municipality, district, or other political subdivision of the state, or any other group or combination acting as a unit.
(17) "Pharmacy" means any retail establishment in which the profession of pharmacy is practiced by a pharmacist licensed by the State of California in accordance with the Business and Professions Code and where prescription pharmaceuticals are offered for Packet Pg. 1150 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) sale, regardless of whether the retail establishment sells other retail goods in addition to prescription pharmaceuticals.
(18) "Proprietor" means a person with an ownership or managerial interest in a business. A managerial interest shall be deemed to exist when a person can or does have or shares ultimate control over the day-to-day operations of a business. (19) “Retailer” means a person who engages in this state in the sale of cigarettes or tobacco products directly to the public from a retail location. Retailer includes a person who operates vending machines from which cigarettes or tobacco products are sold in this state. (20) "Sale" or "sell" means any transfer, exchange, barter, gift, offer for sale, or distribution for a commercial purpose, in any manner or by any means whatsoever. (21) "Self-service display" means the open display or storage of tobacco products or tobacco paraphernalia in a manner that is physically accessible in any way to the general public without the assistance of the tobacco retailer or the tobacco retailer's agent or employee and without a direct person-to-person transfer between a member of the public and the tobacco retailer or tobacco retailer's agent or employee. A vending machine is a form of self-service display.
(22) “Temporary Suspension” means temporary cessation of a Tobacco-Oriented Retailer license, during which the retailer is prohibited from operating their business for a specified period of time. This suspension is typically imposed as a penalty for noncompliance with applicable laws or regulations and can be lifted once the licensee has met all requirements for reinstatement. A temporary suspension does not result in the permanent loss of the license, and the retailer may resume business once the suspension period ends or the license has been reinstated.
(23) “Tobacco-Oriented Retail Business” means any retail business that sells tobacco, tobacco products, and/or tobacco paraphernalia, including but not limited to cigarettes, cigars, pipe tobacco, electronic cigarettes, vaping devices, and/or any components, parts, or accessories related to these items. This includes specific language or symbolism relating to tobacco retailing such as business names, advertising, products, logos, or promotions.
All Tobacco-Oriented Retail businesses are General Tobacco Retail businesses. Businesses that meet at least 3 of the 7 criteria below are NOT Tobacco-Oriented Retailer businesses:
1. Businesses that have contracts with tobacco manufacturers;
2. Businesses that have gas pumps and sell gas;
3. Businesses that have active, in good standing, licenses to sell beer and wine or liquor licenses issued by the Alcohol Beverage Control.
4. Businesses with owners who have ownership rights in the property where the tobacco products are being sold, as reflected on the County Assessment records; Packet Pg. 1151 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance)
5. Businesses that have minimum gross sales of non-tobacco products in excess of seventy-five percent (75%);
6. Businesses that include a pharmacy on site; and
7. Businesses whose primary use is a golf course as permitted by the City’s Zoning Code.
(24) “Tobacco-Oriented Retailer” means any person who engages in the activities of a Tobacco-Oriented Retail Business. This definition shall be without regard to the quantity of tobacco, tobacco products, or tobacco paraphernalia sold, offered for sale, exchanged, or offered for exchange.
(25) “Tobacco-Oriented retailing” means engaging in any of those activities of a TobaccoOriented retailer. This definition shall be without regard to the quantity of tobacco, tobacco products, or tobacco paraphernalia sold, offered for sale, exchanged, or offered for exchange.
(26) "Tobacco paraphernalia" means cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette rolling machines, and any other item designed for the smoking, preparation, storing, or consumption of tobacco products. (27) "Tobacco Product" means any of the following:
(A) A product containing, made, or derived from tobacco or nicotine that is intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, including, but not limited to, cigarettes, cigars, little cigars, chewing tobacco, pipe tobacco, or snuff. (B) An electronic device that delivers nicotine or other vaporized liquids to the person inhaling from the device, including, but not limited to, an electronic cigarette, cigar, pipe, or hookah.
(C) Any component, part, or accessory of a tobacco product, whether or not sold separately.
“Tobacco product” does not include a product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes where the product is marketed and sold solely for such an approved purpose by this Chapter.
(28) "Youth-oriented facility" means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities.
Packet Pg. 1152 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) Part 2 – GENERAL PROVISIONS
6.13.030 Tobacco-Oriented Retail license required.
It shall be unlawful for any person to engage in Tobacco-Oriented Retailing unless under and by authority of a valid, unexpired, unsuspended, unrevoked Tobacco Retailer License issued pursuant to this Chapter for each location at which tobacco retailing is to occur.
6.13.040 Operating Regulations and Conditions
A. Operating regulations and conditions.
(1) The provisions of this section shall constitute terms and conditions applicable to each Tobacco-Oriented Retail license issued by the Director. (2) The provisions of this section shall also constitute operating regulations that are applicable to each holder of a Tobacco-Oriented Retail license issued pursuant to this Chapter.
(3) It shall be unlawful for any person or entity engaged in the retail sale of tobacco products, regardless of the nature of the business or whether they are licensed under this Chapter, to violate any provision of this Chapter.
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 or not issued, it shall be a violation of this Chapter for an owner, licensee, or any of the licensee’s or owner’s agents or employees, to violate any local, state, or federal law applicable to tobacco products, tobacco accessories, or tobacco retailing.
C. Display of License.
Each Tobacco-Oriented Retailer license shall be prominently displayed in a publicly visible location at the licensed location.
D. Minimum Legal Sales Age.
No person engaged in tobacco retailing shall sell a tobacco product to a person under twenty-one years of age except to active duty military personnel who are 18 years of age or older pursuant to California Penal Code § 308.
E. Self-Service Displays Prohibited.
Tobacco Retailing by means of a self-service display is prohibited.
Packet Pg. 1153 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) F. 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.
G. Business License.
In addition to the Tobacco-Oriented Retail license, any Tobacco-Oriented Retailer must have a valid business license as required by Title 6.
H. Limits on eligibility for a Tobacco-Oriented Retailer license. (1) No Tobacco-Oriented Retailer shall be located within one thousand feet of a school providing instruction in kindergarten or any grade levels one through twelve, public park, public library, or youth-oriented facility, as measured in a straight line between the boundary lines of the parcel of the school, park, library, or youth-oriented facility and the boundary lines of the parcel of the License applicant's proposed business location.
(2) No license may be issued to authorize Tobacco-Oriented retailing at a location which is within five hundred feet of a location occupied by another Tobacco-Oriented Retailer, as measured in a straight line between the boundary lines of the parcel of an existing Tobacco-Oriented Retailer's business location and the boundary lines of the parcel of the license applicant's proposed business location.
(3) The maximum number of Tobacco-Oriented Retailers’ licenses allowed in the City of Redding at any time is 20.
(4) Notwithstanding subsections 1 through 3 of this section, a Tobacco-Oriented Retailer operating lawfully on the date the ordinance codified in this Chapter is adopted that would otherwise be eligible for a Tobacco-Oriented Retailer license for the location for which a license is sought may receive or renew a license for that location so long as all of the following conditions are met:
A. A complete and accurate application is submitted to the city within 60 days of the date this ordinance is adopted;
B. The license is timely obtained, maintained, and renewed without lapse or permanent revocation (as opposed to temporary suspension); C. The Tobacco-Oriented Retailer has not experienced a business closure of 60 or more consecutive days to include the 30-day period immediately preceding the effective date of this ordinance;
D. The Tobacco-Oriented Retailer maintains the right to operate the business under all other applicable laws;
Packet Pg. 1154 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) E. The Tobacco-Oriented Retailer does not substantially change the business premises or business operation within 60 days of the date the ordinance codified in this Chapter is adopted. A substantial change to the business operation includes, but is not limited to, the transferring of a location:
(1) To a new proprietor(s) in an arm’s length transaction; or (2) For which a significant purpose is avoiding the licensing requirements of this Chapter.
F. If the City determines that a Tobacco-Oriented Retailer has substantially changed their business premises or operation and the Tobacco-Oriented Retailer disputes this determination, the Tobacco-Oriented Retailer bears the burden of proving to the Department by a preponderance of evidence that such change(s) do not constitute a substantial change.
I. Compliance inspection.
The Director, the Chief of Police and any city official charged with enforcing the provisions of this Code shall have the power and authority to enter any business engaging in general tobacco retailing during regular business hours to inspect the premises and to determine compliance with the provisions of this Chapter.
(1) Should any inspection reveal noncompliance with any of the provisions of this Chapter and should reinspection be needed to determine compliance, the cost of any such reinspection shall be billed to the owner of the premises, the operator of the business engaging in tobacco retailing, and/or the holder of the Tobacco-Oriented Retailing license in the amount set forth in the schedule of fees established by resolution of the City Council. (2) A tobacco retailer shall retain purchase invoices for all cigarettes or tobacco products the retailer purchased for a period of four years. The records shall be kept at the retail location.
Invoices shall be made available upon request during normal business hours for review, inspection, and copying by the Department or by a law enforcement agency. Any retailer found in violation of these requirements or any person who fails, refuses, or neglects to retain or make available invoices for inspection and copying in accordance with this section shall be subject to penalties pursuant to this Chapter. (3) A tobacco retailer shall retain sales receipts or records for all transactions for a period of four years. The records shall be kept at the retail location. These records shall be made available upon request during normal business hours for review, inspection, and copying by the Department or by a law enforcement agency. Any retailer found in violation of these requirements or any person who fails, refuses, or neglects to retain or make available these records for inspection and copying in accordance with this section shall be subject to penalties pursuant to this Chapter.
Packet Pg. 1155 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) J. Flavored Tobacco Products.
(1) It shall be unlawful for any tobacco retailer to sell any flavored tobacco product. (2) Presumptive Flavored Tobacco Product. There shall be a rebuttable presumption that a tobacco product is a flavored tobacco product if a tobacco retailer, manufacturer, or any employee or agent of a tobacco retailer or manufacturer has taken action directed to consumers that would be reasonably expected to cause consumers to believe the tobacco product is a flavored tobacco product. Any communication by or on behalf of the manufacturer or retailer of a tobacco product that such tobacco product imparts a taste or odor other than the taste or odor of tobacco, and/or that imparts a heating, cooling, or numbing sensation, constitutes presumptive evidence that the tobacco product is a flavored tobacco product. This includes but is not limited to public statements that a product is flavored, such as describing the product as "chill," "ice," "fresh," "arctic," "sweet," "spicy," or "frost."
H. Other legal duties.
(1) Each Tobacco-Oriented Retailer shall:
A. Comply with all applicable laws and ordinances governing the sale of any tobacco products or tobacco paraphernalia;
B. Comply with all conditions imposed by the Director as part of the tobacco retail license; and
C. Comply with all conditions imposed by any other permit or license required for a business engaging in tobacco retailing.
(2) Each Tobacco-Oriented Retailer, and any other person(s) responsible for the operation of the business engaging in tobacco retailing, excluding the city, its agents, officers and employees, shall be jointly and severally liable for:
A. Any violation of this Chapter;
B. Any violation of the terms of the Tobacco-Oriented Retail license; C. Any violation of any other license or permit required for the business engaging in tobacco retailing; and
D. Any violation of any other applicable law that arises out of the sale of tobacco products or tobacco paraphernalia.
I. Indemnification agreement required.
Packet Pg. 1156 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) Any tobacco retailer applying for a Tobacco-Oriented Retail license under this Chapter shall agree to fully indemnify, defend and hold harmless the city, its officers, employees and agents for all claims, losses, or liabilities that arise out of the issuance or use of the Tobacco-Oriented Retail license, or that arise out of any sale, distribution, transfer or use of tobacco products or tobacco paraphernalia, in a form approved by the City Attorney's Office.
6.13.050 Application Procedure for Tobacco-Oriented Retailer A. An application for a Tobacco-Oriented Retailer’s license shall be submitted in the name of each owner or proprietor proposing to conduct retail tobacco sales and shall be signed by each owner or 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 issued 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 or maintaining a Tobacco-Oriented Retailer’s license any status or right to act as a Tobacco-Oriented Retailer in contravention of any provision of law.
C. Applicant submissions shall contain the following information:
(1) The name, address, and telephone number of each owner and proprietor of the business seeking a license.
(2) The business name, address, and telephone number of the location for which a license is sought.
(3) The name and mailing address authorized by each owner and proprietor to receive all communications and notices required by, authorized by, or related to the enforcement of this Chapter.
(4) Proof that the business and location for which a Tobacco-Oriented Retailer’s license is sought has been issued all necessary state and municipal licenses for the sale of tobacco products.
(5) Listing of all prior issuances, suspensions, and/or revocations of Tobacco-Oriented Retail licenses for each named proprietor or owner of the business and the dates of each action pursuant to this Chapter.
(6) Listing of dates and locations for all prior violations of local, state, or federal law governing the sale of tobacco products or California Health and Safety Code section 11351, as amended from time to time, by each named proprietor or owner occurring within the previous five years.
(7) A statement by the applicant that the contents of the application are complete, true, and correct. Any person who signs a statement pursuant to this subdivision that Packet Pg. 1157 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) asserts the truth of any material matter that he or she knows to be false is guilty of a misdemeanor punishable by imprisonment of up to one year in the county jail, or a fine of not more than one thousand dollars ($1,000), or both the imprisonment and the fine.
(8) A statement by the applicant that they are the owner, proprietor, or authorized agent of the Tobacco-Oriented Retail business for which the license is sought pursuant to this Chapter.
(9) 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
D. A licensed Tobacco-Oriented Retailer or applicant shall inform the Department in writing of any change in the information submitted on an application for a tobacco-oriented retailer’s license within ten business days of a change.
6.13.060 License issuance or denial.
Upon the receipt of a complete application and the license fee required by this Chapter, the City shall issue a license unless substantial evidence demonstrates that one or more of the following bases for denial exists:
A. The information presented in the application is inaccurate or false. Intentionally supplying inaccurate or false information shall be a violation of this Chapter.
B. The application seeks authorization for Tobacco-Oriented Retailing at a location for which this Chapter prohibits issuance of Tobacco-Oriented Retailer licenses. However, this subparagraph shall not constitute a basis for denial of a license if the applicant submits a timely and complete application for a license within 60 days of the adoption of this ordinance that provides documentation to the City that clearly and convincingly demonstrates that the business was operational at the time of this ordinance’s adoption and meets the requirements of 6.13.040, subdivision (H)(4).
C. The application seeks authorization for tobacco-oriented retailing for a proprietor to whom this Chapter prohibits a license to be issued.
D. The application seeks authorization for tobacco-oriented retailing that is prohibited pursuant to this Chapter; that is unlawful pursuant to this Code, including without limitation, the zoning ordinance, building code, or business license tax ordinance; or that is unlawful pursuant to any other law.
E. The retailer, or if the retailer is not an individual, any person controlling the retailer or retail business, has previously been issued a license that is suspended or revoked by the Department for violation of any of the provisions of this Chapter.
Packet Pg. 1158 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) F. The application is for a license or renewal of a license for a retail location that is the same retail location as that of a retailer whose license was revoked or is subject to revocation proceedings for violation of any of the provisions of this division, unless:
(1) It has been more than five years since a previous license for the retail location was revoked.
(2) The person applying for the license provides the Department with documentation demonstrating that the applicant has acquired or is acquiring the premises or business in an arm's length transaction.
G. The retailer, or if the retailer is not an individual, any person controlling the retailer or retail business, has been convicted of a felony pursuant to Section 30473 or 30480 of the Revenue and Taxation Code.
6.13.070 License renewal and expiration.
A Tobacco-Oriented Retailer’s license is invalid if the appropriate fee has not been timely paid in full, the application is incomplete, or the term of the license has expired. The term of a TobaccoOriented Retailer license is one year. Each Tobacco-Oriented Retailer shall apply for renewal of their Tobacco-Oriented Retailer’s license and submit the license renewal fee no later than thirty days prior to expiration of the current license but no earlier than 60 days prior to the expiration of the current license. A licensee who submits an incomplete application may resubmit the application for renewal as long as the current license does not lapse. A Tobacco-Oriented Retailer that fails to timely submit a renewal application and fee is ineligible for license renewal; however, a timely and complete application for renewal shall toll the existing license until the renewal application is approved or denied by the city. A license that has been revoked, or is subject to revocation proceedings, shall not be renewed.
6.13.080 Licenses nontransferable.
A. A Tobacco-Oriented Retailer’s license may not be transferred from one person to another or from one location to another. A new Tobacco-Oriented Retailer’s license is required whenever a tobacco retailing location has a change in proprietor(s) or owners or a change in location.
B. 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 a location unless the location has been transferred to new proprietor(s) or owner(s) in an arm’s length transaction.
6.13.090 License conveys a limited, conditional privilege.
Nothing in this Chapter shall be construed to grant any person obtaining or maintaining a TobaccoOriented Retailer’s license any status or right other than the limited conditional privilege to act as a Tobacco-Oriented Retailer at the location in the city identified on the face of the license.
Packet Pg. 1159 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance)
6.13.100 Fee for license.
The fee to issue or to renew a Tobacco-Oriented Retailer’s license shall be established by resolution of the City Council, which may be amended as needed at the City Council’s discretion.
The fee shall be calculated so as to recover the cost of administration and enforcement of this Chapter including, but not limited to, issuances of licenses, administration of the license program, retailer education, inspection and compliance checks of Tobacco-Oriented Retailing businesses, documentation of violations, representation of the City at Board hearings, prosecution of violators, and other enforcement measures 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.
6.13.110 Suspension or revocation of license.
A. In addition to any other penalty authorized by law, a Tobacco-Oriented Retailer’s license shall be suspended or revoked if any court of competent jurisdiction determines, or the Department finds based upon a preponderance of the evidence that the licensee, or any of the licensee’s agents, employees, or Tobacco-Oriented Retailer locations, has violated any of the requirements, conditions, or prohibitions of this Chapter or has pleaded guilty, "no contest" or its equivalent, or admitted to a violation of any law applicable to the licensee in violation of this Chapter. Action taken by the director with respect to the suspension, modification, or revocation of a Tobacco-Oriented Retail license shall be final and conclusive. Any licensee aggrieved by the suspension, modification or revocation of a Tobacco-Oriented Retail license may obtain review of such decision by appeal to the city manager or the city manager’s designee. (1) Upon a finding by the Department of a first violation of this Chapter at a location within any five-year period, the license shall be suspended for fourteen days.
(2) Upon a finding by the Department of a second violation of this Chapter at a location within any five-year period, the license shall be suspended for 30 days.
(3) Upon a finding by the Department of a third violation of this Chapter at a location within any five-year period, the license shall be revoked. (4) Owners of Tobacco-Oriented Retail businesses at more than one location are subject to increased penalties upon second and subsequent violations of this Chapter regardless of the business location where the earlier violation occurred.
B. A Tobacco-Oriented Retailer’s license shall be revoked if the Department finds, after the licensee is afforded notice and an opportunity to be heard, that information contained in Packet Pg. 1160 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) the license application, including supplemental information, if any, is false in any material respect.
C. A Tobacco-Oriented Retailer’s license shall be revoked if the Department finds, after providing the licensee with notice and an opportunity to be heard, that one or more of the grounds for denial of a license pursuant to this Chapter existed at the time the application was made or at any point before the license was issued.
D. A licensee for whom a license suspension is in effect must remove all tobacco products and tobacco paraphernalia from the sales floor at the address that appears on the suspended or revoked license. Violation of this subsection or engaging in tobacco retailing while the license suspension is in effect shall result in a permanent revocation of the Tobacco-Oriented Retail License.
E. The suspension or revocation shall become effective immediately following notice of suspension or revocation from the Department, unless the holder of the license files an appeal in accordance with this Chapter. If such an appeal is filed, the suspension or revocation shall not become final until the appeal is resolved by a final decision of the city manager or his designee, or withdrawal of the appeal.
6.13.120 Appeal of Suspension or Revocation.
A. A decision of the Department to suspend or revoke a license is appealable to the City Manager or his designee and any appeal must be filed in writing with the City Manager within ten days of mailing of the Department’s decision.
B. If such an appeal is timely made, it shall stay enforcement of the appealed action.
C. The decision by the City Manager or his designee shall be the final decision of the City.
6.13.130 Additional remedies.
A. The remedies provided by this Chapter are cumulative and in addition to any other remedies available at law or in equity, including, without limitation those remedies established in Title 1.
B. Violations of this Chapter are subject to a civil action brought by the city, punishable by an administrative penalty not less than one thousand dollars per violation.
C. Subsequent violations of this Chapter are subject to increased administrative penalty amounts.
D. Violations of this Chapter may, in the discretion of the City Attorney, be prosecuted as infractions or misdemeanors when the interests of justice so require. The city may recover reasonable attorneys' fees and costs of suit in any civil action brought by the City Attorney to remedy any violation of this Chapter.
Packet Pg. 1161 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) E. In addition to any other remedy or abatement authority allowed by law, the Director may take reasonable measures to enforce the suspension or revocation of a license. Such measures may include, but are not limited to, posting notices on the property which state tobacco products are not to be sold or purchased until the conclusion of the suspension, or requiring all tobacco products to be removed from the property during the suspension or revocation period. Removal of notices posted pursuant to this section shall, constitute a misdemeanor violation of this Chapter.
F. Violations of this Chapter are hereby declared to be public nuisances and subject to abatement by the city.
G. For the purposes of the civil remedies provided in this Chapter:
(1) Each day on which tobacco products or tobacco accessories are offered for sale in violation of this Chapter shall constitute a separate violation of this Chapter; and (2) Each individual retail tobacco product and each individual retail item of tobacco accessories that is distributed, sold, or offered for sale in violation of this Chapter shall constitute a separate violation of this Chapter.
H. 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 by an employee shall be considered an act of the tobacco retailer.
Section 2. Severability. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of remaining portions of the ordinances.
The City Council of the City of Redding hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases may be held invalid or unconstitutional.
Section 3. The passage of this ordinance is not a “project” according to the definition in the California Environmental Quality Act, and therefore is not subject to the provisions requiring environmental review.
Section 4. This Ordinance shall take effect thirty (30) days after the date of its adoption, and the City Clerk shall certify to the adoption thereof and cause publication according to law.
Packet Pg. 1162 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) I HEREBY CERTIFY that the foregoing ordinance was introduced and read by the City Council of the City of Redding at a regular meeting on the 17th day of June, 2025, and was duly adopted at a regular meeting on the ___ day of _______, 2025, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
___________________________________
JACK MUNNS, Mayor
ATTEST: FORM APPROVED:
______________________________ ___________________________________ SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney DATE ATTESTED: ____________, 2025
Packet Pg. 1163 Attachment: ^Draft Ordinance (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) December 2020
www.publichealthlawcenter.org/caltobacco
Introduction
This Comprehensive Tobacco Retailer
Licensing Ordinance was prepared to assist
California cities and counties interested in
establishing or strengthening a local tobacco
retailer licensing (“TRL”) program and further
regulating the tobacco retail environment.
Communities adopt TRL laws to ensure
compliance with local business standards,
reduce youth access to tobacco products, limit
the negative public health and equity impacts
associated with tobacco use, and enforce
local, state, and federal tobacco control laws.
The Public Health Law Center revised and
updated this 2020 model ordinance, which
was originally developed by ChangeLab
Solutions and released in 2018. The Center
acknowledges the excellent work done by
ChangeLab Solutions in creating the original
ordinance. This revised model ordinance takes
a comprehensive approach to regulating the
sale of tobacco products and the tobacco retail
environment. It builds on core provisions such
as requiring a local tobacco retailer license by
incorporating several innovative policy options.
It also reflects changes to state and federal
tobacco control laws such as Tobacco 21 and the
federal Food and Drug Administration’s (“FDA”)
Deeming Rule that expands the FDA’s regulatory
COMPREHENSIVE TOBACCO
RETAILER LICENSING ORDINANCE
Packet Pg. 1164 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 2 authority to all tobacco products. The model ordinance offers cities and counties a variety of options to tailor this policy to meet the needs of their communities.* The model ordinance is based on an independent and objective analysis of the relevant law, evidence, and available data. Readers should consider all the evidence and decide for themselves which approach is appropriate for their local jurisdiction.
Customizing the Ordinance
Context boxes are included throughout the ordinance to explain some key provisions. These boxes are not meant to be included in any final ordinance. A city wishing to adopt all or part of this ordinance should keep this in mind and remove the context boxes.
In some instances, blanks (such as [ _____________ ] ) prompt you to customize the language to fit your community’s needs. In other instances, the ordinance offers you a choice of options (such as [ choice one/choice two ]). Some options are followed by a comment that describes the legal provisions in more detail. A degree of customization is always necessary to make sure the ordinance is consistent with a community’s existing laws. Such customization also ensures that communities are using this model ordinance to address local needs and engender health equity.
Tips for Using This Model Ordinance
The best possible world is one without the death and health harms associated with commercial tobacco use.†
Communities differ on their readiness and willingness to adopt certain tobacco control policies that are intended to help make that world a reality. Accordingly, this model ordinance represents a balance between state and federal minimum standards, best public health policy practices, and practicality for city governments in California. This model ordinance contains several policy components that communities may or may not choose to adopt at this time that may go beyond minimum state and federal requirements. * This model ordinance uses “community” as shorthand for a group of people who will be impacted, either directly or indirectly, by a proposed changemaking strategy. People in a community (1) are in a particular geographic area, like a neighborhood or jurisdiction, and/or (2) share a common identity or characteristic. † The Public Health Law Center recognizes that traditional and commercial tobacco are different in the ways they are planted, grown, harvested, and used. Traditional tobacco is and has been used in sacred ways by Indigenous communities and tribes for centuries. Comparatively, commercial tobacco is manufactured with chemical additives for recreational use and profit, resulting in disease and death. For more information, visit: http://www.keepitsacred.itcmi.org.
When the word “tobacco” is used throughout this document, a commercial context is implied and intended.
December 2020
Packet Pg. 1165 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 3 While the Public Health Law Center does not lobby, advocate, or directly represent communities, we can provide assistance through our publications and referrals to experts in the field. Education, stakeholder and community engagement, and a strong advocacy plan are key steps in the adoption of effective tobacco control policies. If a community is unaware of the resources available to it for engaging the community and developing an advocacy plan, or if a city is considering adopting an ordinance and is interested in learning about the range of resources available, please contact the Public Health Law Center. If you have any questions about this ordinance, you can reach us at www.publichealthlawcenter.org.
This publication was prepared by the Public Health Law Center, a nonprofit organization that provides information and legal technical assistance on issues related to public health. The Center does not provide legal representation or advice. The information in this document should not be considered legal advice. This model ordinance was made possible by funds received from Grant Number 19-10229 with the California Department of Public Health, California Tobacco Control Program, and the American Lung Association in California.
December 2020
Packet Pg. 1166 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 4 AN ORDINANCE OF THE [ city/county ] OF
[ insert jurisdiction name ] REGULATING TOBACCO PRODUCT
SALES, REQUIRING THE LICENSURE OF TOBACCO RETAILERS, AND AMENDING THE [ Insert Jurisdiction Name ] MUNICIPAL CODE The [ city council of the city/board of supervisors of the county ] of [ insert jurisdiction name ] does ordain as follows:
Note
This is introductory boilerplate language that should be adapted to the conventional form used in the jurisdiction.
SECTION I. [ See Appendix A: Findings ]
Note
The findings section is part of the ordinance and legislative record, but it usually does not become codified in the municipal code. An ordinance based on this model ordinance should include findings of fact — data, statistics, relevant epidemiological information, for instance — that support the purposes of this ordinance, as well as any legal precedent that directly supports the ordinance.
In addition to serving an educational purpose and building support for the ordinance, the findings can also serve a legal purpose. If the ordinance is challenged in court, the findings are an admissible record of the factual determinations made by the legislative body when considering the ordinance.
Courts will generally defer to legislative determinations of factual issues, which often influence legal conclusions. A list of findings supporting this model ordinance appears in “Appendix A: Findings.” Jurisdictions may select findings from that list to insert here, along with additional findings on local or regional conditions, outcomes, and issues that help make the case for the law.
SECTION II. [ article/section ] of the County/City Code is hereby amended to read as follows:
Sec. [ ____ (*1) ]. DEFINITIONS. The following words and phrases, whenever used in this [ article/chapter ], shall have the meanings defined in this section unless the context clearly requires otherwise:
December 2020
Packet Pg. 1167 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 5 (A) “Arm’s Length Transaction” means a sale in good faith and for valuable consideration that reflects the fair market value between two informed and willing parties, neither of which is under any compulsion to participate in the transaction. (B) “Cannabis” has the meaning set forth in California Business and Professions Code Section 26001, as that section may be amended from time to time. (C) “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. (D) “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.
(E) “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.
(F) “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. (G) “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.
(H) “Compliance checks” means systems the department uses to investigate and ensure that tobacco retailers are following and complying with the requirements of this [ article/ 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.
(I) “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.
December 2020
Packet Pg. 1168 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 6 (J) “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. (K) “Department” means [ insert department name ] and any agency or person designated by the Department to enforce or administer the provisions of this [ article/chapter ]. (L) “Electronic smoking device” means any device that may be used to deliver any 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 and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act. (M) “Flavored Tobacco Product” means any tobacco product that contains a taste or smell, other than the taste or smell of tobacco, that is distinguishable by an ordinary consumer either prior to, or during the consumption of, a tobacco product, including, but not limited to, any taste or smell relating to fruit, menthol, mint, wintergreen, chocolate, cocoa, vanilla, honey, molasses, or any candy, dessert, alcoholic beverage, herb, or spice. (N) “Full Retail Price” means the price listed 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, plus all applicable taxes and fees if such taxes and fees are not included in the listed price. (O) “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.
(P) “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. (Q) “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.
December 2020
Packet Pg. 1169 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 7 (R) “Person” means any natural person, partnership, cooperative association, corporation, personal representative, receiver, trustee, assignee, or any other legal entity. (S) “Pharmacy” means any retail establishment in which the profession of pharmacy is practiced 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.
(T) “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.
(U) “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.
(V) “Sale” or “Sell” means any transfer, exchange, barter, gift, offer for sale, or distribution for a commercial purpose, in any manner or by any means whatsoever. (W) “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 selfservice display. (X) “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. (Y) “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, chewing tobacco, snuff, or snus;
December 2020
Packet Pg. 1170 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 8 (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 the U.S. Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act.
Note
Both the definition of “electronic smoking device” and “tobacco product” in this model include substances that go into an electronic smoking device regardless of whether they contain nicotine. In a jurisdiction that already regulates the commercial sale of cannabis products, these definitions might result in an overlapping and possibly confusing regulatory regime where certain products are covered by both the tobacco and cannabis laws. The Center can provide additional language to exclude regulated cannabis products under a TRL. (Z) “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. (AA) “Tobacco Retailing” means engaging in the activities of a tobacco retailer. (AB)“Youth-Oriented Facility” means a parcel in the [ city/county ] 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 temporarily for community recreation, even though it may be used for other purposes;
December 2020
Packet Pg. 1171 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 9 (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]];
Sec. [ ____ (*2) ]. 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/county ] without first obtaining and maintaining a valid tobacco retailer’s license for each location at which tobacco retailing is to occur. Tobacco retailing without a valid tobacco retailer’s license is a nuisance as a matter of law. (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 [ article/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 [ article/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 governmentissued 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 [ article/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/county ].
December 2020
Packet Pg. 1172 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 10 Sec. [ ____ (*3) ]. SALE OF FLAVORED TOBACCO PRODUCTS
PROHIBITED.
(A) FLAVORED TOBACCO PRODUCT SALES PROHIBITED. It shall be unlawful for any tobacco retailer to sell any flavored tobacco product.
(B) PRESUMPTIVE FLAVORED TOBACCO PRODUCT. A public statement or claim made or disseminated by the manufacturer of a tobacco product, or by any person authorized or permitted by the manufacturer to make or disseminate public statements concerning such tobacco product, that such tobacco product has a taste or smell other than tobacco shall constitute presumptive evidence that the tobacco product is a flavored tobacco product.
Sec. [ ____ (*4) ]. 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. (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; (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 December 2020
Packet Pg. 1173 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 11 (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 price that is less than [ $X.00 ] per package of 20 cigarettes, including all applicable taxes and fees;
(2) Little cigars at a price that is less than [ $X.00 ] per package of little cigars, including all applicable taxes and fees; or
(3) Cigars at a price that is less [ $X.00 ] per cigar, including all applicable taxes and fees.
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.
Note
Indexing minimum prices to inflation is an efficient policy that does not require decisionmakers to amend the TRL annually to keep up with prevailing prices. Jurisdictions in California have pegged the prices to the nearest U.S. Bureau of Labor Statistics statistical area, and the language here is broad enough that a jurisdiction can take that approach or determine another effective way to adjust the prices over time.
Sec. [ ____ (*5) ]. 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. (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. No license may issue, and no existing license may be renewed, to authorize tobacco retailing in a pharmacy.
December 2020
Packet Pg. 1174 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 12 (D) PROXIMITY TO YOUTH-ORIENTED FACILITIES. No license may issue, and no existing license may be renewed, to authorize tobacco retailing within [ 1000 ] feet of a youthoriented 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 license may issue, and no existing license may be renewed, to authorize tobacco retailing within [ 1000 ] feet of a tobacco retailer location already licensed pursuant to this [ article/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 license may issue, and no existing license may be renewed, to authorize tobacco retailing within [ 1000 ] 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.
Note
The three proximity limitations above would prohibit tobacco retailing within a certain distance of relevant businesses and facilities with no grandfathering of existing licensed retailers. As a result, retail licenses for locations that do not meet these proximity limitations would not be renewable after expiring. Issuing a tobacco retail license is a privilege, not a right, and jurisdictions have the authority to grant or deny tobacco retailer licenses.
Accordingly, it would be unlikely for a tobacco retailer to successfully argue that refusing to renew their license is a violation of the constitutional guarantee against taking property without due process. To deal with potential “takings” claims, some jurisdictions have created a hearing process for affected businesses where they can make hardship arguments and ask for additional time to sell prohibited products, allowing for some more flexibility on a caseby-case basis and under extraordinary circumstances. (G) POPULATION AND DENSITY. The issuing of tobacco retailer licenses is limited as follows:
(1) The total number of tobacco retailer licenses within the [ city/county ] shall be limited to one for each [ 2,500 ] inhabitants of the [ city/county ].
December 2020
Packet Pg. 1175 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 13 (2) For the purposes of this subsection, the total population of the [ city/county ] 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).
Sec. [ ____ (*6) ]. 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 [ article/chapter ], contrary to any other law, or on the basis of false or misleading information shall be revoked pursuant to Section [ ____(*13) (c) ] of this [ article/chapter ]. Nothing in this [ article/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 shall contain the following information:
(1) The name, address, and telephone number of each proprietor of the business seeking a license.
(2) The business name, address, and telephone number of the location for which a license is 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 [ article/chapter ].
(4) Proof that the location for which a tobacco retailer’s license is sought has been issued all necessary state licenses 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 [ article/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.
December 2020
Packet Pg. 1176 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 14 (6) A signed affidavit affirming that the proprietor has not sold and will not sell any tobacco product without a license required by this [ article/chapter ]. (7) Such other information as the Department deems necessary for the administration or enforcement of this [ article/chapter ] as specified on the application form required by this section.
(D) 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.
Sec. [ ____ (*7) ]. LICENSE ISSUANCE OR DENIAL.
(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 [ article/chapter ], the Department may approve or deny the application for a license, or it may delay action for a reasonable period of time to complete any investigation of the application or 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:
(1) The information presented in the application is inaccurate or false. Intentionally supplying inaccurate or false information shall be a violation of this [ article/chapter ]; (2) The application seeks authorization for tobacco retailing at a location for which this [ article/chapter ] prohibits a licensed to be issued;
(3) The application seeks authorization for tobacco retailing for a proprietor to whom this [ article/chapter ] prohibits a license to be issued; or (4) The application seeks authorization for tobacco retailing in a manner that is prohibited pursuant to this [ article/chapter ], that is unlawful pursuant to any other [ article/chapter ] of this Code, or that is unlawful pursuant to any other law. (5) Any other 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 [ article/chapter ] and other laws relating to the sale of tobacco products.
December 2020
Packet Pg. 1177 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 15 Sec. [ ____ (*8) ]. LICENSE RENEWAL AND EXPIRATION.
(A) RENEWAL OF LICENSE. 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 [ 1 year ]. Each tobacco retailer shall apply for the renewal of their tobacco retailer’s license and submit the license fee no later than [ 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 Section [ ____ (*6) ].
Sec. [ ____ (*9) ]. LICENSES NOT TRANSFERABLE, 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 retailing location has a change in proprietors. (B) PAST VIOLATIONS. Notwithstanding any other provision of this [ article/chapter ], prior violations at a location shall continue to be counted against a location and license ineligibility periods shall continue to apply to a location unless:
(1) the location has been transferred to new proprietor(s) in an arm’s length transaction; and (2) the new proprietor(s) provide the [ city/county ] with clear and convincing evidence that the new proprietor(s) have acquired the location in an arm’s length transaction.
Sec. [ ____ (*10) ]. LICENSE CONVEYS A LIMITED, CONDITIONAL PRIVILEGE.
Nothing in this [ article/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/County ] identified on the face of the permit. Nothing in this [ article/chapter ] shall be construed to render inapplicable, supersede, or apply in lieu of, any other provision of applicable law.
Sec. [ ____ (*11) ]. 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/board of supervisors ]. The fee shall be calculated so as to recover the total cost of administration and enforcement of this [ article/chapter ], including, but not limited to, issuing a license, administering the license program, retailer education, December 2020
Packet Pg. 1178 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 16 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 [ article/ 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.
Note
The California Constitution places some limits on how much a jurisdiction can charge in a fee, deeming excessive fees to be taxes that require a vote of the people. Nonetheless, without a referendum, it is lawful to impose a fee on applicants in an amount sufficient to offset the reasonable regulatory cost of the entire tobacco retailer enforcement program of the locality.
Sinclair Paint Co. v. Board of Equalization, 15 Cal. 4th 866 (1997); Griffith v. City of Santa Cruz, 207 Cal. App. 4th 982 (2012).
The license fee can incorporate the cost of enforcing all tobacco laws related to tobacco retailing because a violation of any tobacco-related law is a basis for suspension of a license. The Public Health Law Center can provide further information on some of the factors to consider when calculating a reasonable license fee.
Sec. [ ____ (*12) ]. COMPLIANCE MONITORING.
(A) Compliance with this [ article/chapter ] shall be monitored by the Department. In addition, the [ City/County ] may designate additional persons to monitor compliance with this [ article/chapter ]. All licensed premises must be open to inspection by [ city/ county ] staff or designated persons during regular business hours. (B) The Department shall inspect each tobacco retailer at least [ 3 ] times per 12 month period to ensure compliance with this [ article/chapter ].
Note
Subsection (b) allows for the inspection of licensed premises to check for any violations of this ordinance or other tobacco control laws. For example, some inspections might focus on pricing or flavored product violations, but preferably inspectors would be able to review compliance with all applicable laws during the inspections. For more information on challenges and case studies in enforcing TRL requirements please contact the Center.
December 2020
Packet Pg. 1179 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 17 (C) The [ city/county ] will conduct at least [ one ] compliance check 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.
Note
This underage sales compliance provision requires a minimum of one check per year, but jurisdictions might choose to require more frequent compliance checks to ensure consistent compliance.
(D) Nothing in this section shall create a right of action in any licensee or other person against the [ city/county ] or its agents.
Sec. [ ____ (*13) ]. SUSPENSION OR REVOCATION OF LICENSE. (A) SUSPENSION OR REVOCATION OF LICENSE FOR VIOLATION. In addition to any other penalty authorized by law, a tobacco retailer’s license shall be suspended or revoked if the Department finds, based on a preponderance of the evidence, after the licensee is afforded notice and an opportunity to be heard, that the licensee, or any of the licensee’s agents or employees, have violated any of the requirements, conditions, or prohibitions of this [ article/chapter ]; such violation is determined by any court of competent jurisdiction; or the licensee has pleaded guilty, “no contest” or its equivalent, or admitted to a violation of any law designated in Section [ ____(*2) ] above. (1) Upon a finding by the Department of a first violation of this [ article/chapter ] at a location, the license shall be suspended for [ 30 ] days. (2) Upon a finding by the Department of a second violation of this [ article/chapter ] at a location within any [ 5 ]-year period, the license shall be suspended for [ 90 ] days. (3) Upon a finding by the Department of a third violation of this [ article/chapter ] at a location within any [ 5 ] year period, the license shall be suspended for [ 1 ] year. (4) Upon a finding by the Department of four or more violations of this [ article/chapter ] at a location within any [ 5 ] year period, the license shall be revoked. (B) APPEAL OF SUSPENSION OR REVOCATION. A decision of the Department to suspend or revoke a license is appealable to [ the name of appellate agency, panel, or person (for December 2020
Packet Pg. 1180 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 18 example, Board of Supervisors, city manager, or director of the health department) ] and any appeal must be filed in writing with [ the name of the agency, panel, or person to receive the notice (for example, Board of Supervisors) ] within 10 days of mailing of the Department’s decision. If such an appeal is timely made, it shall stay enforcement of the appealed action. An appeal to [ the name of appellate agency, panel, or person ] is not available for a revocation made pursuant to subsection (c) below. (C) 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 Section [ ____(*7) ] existed at the time application was made or at any time before the license issued. The decision by the Department shall be the final decision of the [ city/county ].
Sec. [ ____ (*14) ]. TOBACCO RETAILING WITHOUT A VALID LICENSE. (A) INELIGIBLE FOR LICENSE. In addition to any other penalty authorized by law, if the Department finds, or if a court of competent jurisdiction determines, 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 license, 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 license as follows:
(1) After a first violation of this section at a location, no new license may issue for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until [ 30 ] days have passed from the date of the violation.
(2) After a second violation of this section at a location within any [ 5 year ] period, no new license may issue for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until [ 90 ] 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 [ 5 year ] period, no new license may issue for the person or the location (unless ownership of the business at the location has been transferred in an arm’s length transaction), until [ 5 ] years have passed from the date of the violation.
Sec. [ ____ (*15) ]. ADDITIONAL REMEDIES.
(A) The remedies provided by this [ article/chapter ] are cumulative and in addition to any other remedies available at law or in equity.
December 2020
Packet Pg. 1181 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 19 (B) Whenever evidence of a violation of this [ article/chapter ] is obtained in any part through the participation of a person under the age of 18 years, such a person shall not be required to appear or give testimony in any civil or administrative process brought to enforce this [ article/chapter ] and the alleged violation shall be adjudicated based upon the sufficiency and persuasiveness of the evidence presented. (C) Violations of this [ article/chapter ] are subject to a civil action brought by the [ district attorney ] or the [ county counsel ], punishable by a civil fine not less than [ $250 ] and not exceeding [ $1,000 ] per violation.
(D) Violations of this [ article/chapter ] may, in the discretion of the [ district attorney/county counsel ], be prosecuted as infractions or misdemeanors when the interests of justice so require.
(E) Violations of this [ article/chapter ] are hereby declared to be public nuisances. (F) In addition to other remedies provided by this [ article/chapter ] or by other law, any violation of this [ article/chapter ] may be remedied by a civil action brought by the [ district attorney/county counsel ], including administrative or judicial nuisance abatement proceedings, civil code enforcement proceedings, and suits for injunctive relief. (G) Tobacco products offered for sale in violation of this [ article/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 [ article/chapter ]. The decision by the Department may be appealed pursuant to the procedures set forth in Section [ ____(*13)(b) ]. 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 the filing of a lawsuit or, if such a suit is filed, after judgment in that suit becomes final. (H) For the purposes of the civil remedies provided in this [ article/chapter ]:
(1) Each day on which a tobacco product is distributed, sold, or offered for sale in violation of this [ article/chapter ] shall constitute a separate violation of this [ article/chapter ]; and
(2) Each individual tobacco product that is distributed, sold, or offered for sale in violation of this [ article/chapter ] shall constitute a separate violation of this [ article/chapter ].
December 2020
Packet Pg. 1182 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 20 (I) 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 by an employee shall be considered an act of the tobacco retailer.
Sec. [ ____ (*16) ]. EXCEPTIONS.
(A) Nothing in this [ article/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.
(B) Nothing in this [ article/chapter ] shall be construed to penalize the purchase, use, or possession of a tobacco product by any person not engaged in tobacco retailing.
Sec. [ ____ (*17) ]. CONSTRUCTION & SEVERABILITY. It is the intent of the [ board of supervisors/city council ] of [ county/city ] 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 [ article/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 [ article/chapter ], or its application to any other person or circumstance. The [ board of supervisors/city council ] of [ jurisdiction ] 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.
Sec. [ ____ (*18) ]. PUBLIC RECORDS. All information provided to the Department by a licensee or license applicant pursuant to this [ article/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 III. EFFECTIVE DATE. This Ordinance shall take effect and be in force from and after [ 30 days after date of enactment ]; provided, however, that Section [ ____(*3) ] shall not take effect until [ 6 months after date of enactment ].
December 2020
Packet Pg. 1183 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 21 Appendix A: Findings.
The [ city council of the city/board of supervisors of the county ] of [ insert jurisdiction name ] hereby finds and declares as follows:
WHEREAS, the [ city council/board of supervisors ] 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 council/board of supervisors ], 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 tobacco use the nation’s leading cause of preventable death;2
WHEREAS, the World Health Organization (WHO) estimates that 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 years of age are projected to die prematurely from a smoking-related illness;2 WHEREAS, tobacco use is the number one cause of preventable death in California137 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
{ 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, tobacco use among priority populations in California contributes to health disparities and creates significant barriers to health equity, as evidenced by the following:
{ 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
December 2020
Packet Pg. 1184 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 22 { 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
[ insert local data if available ]
WHEREAS, despite the state’s efforts to limit youth access to 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 tobacco;9
{ Disparities in 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;2 { 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
[ insert local data if available ]
WHEREAS, the tobacco industry encourages youth and young adult 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 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 December 2020
Packet Pg. 1185 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 23 { The tobacco industry spends an estimated $496 million annually to market tobacco products to California residents;139
WHEREAS, California retailers continue to sell 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
[ insert local data if available ]
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/board of supervisors ] to regulate the operation of lawful businesses to discourage violations of federal, state, and local 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 $523,084 in sales per store;143 { Systematic scientific reviews indicate that merchant compliance with youth tobacco sales laws reduces the rate of tobacco use among adolescents;26,27 { Studies found increased retailer compliance and reduced tobacco sales to youth following implementation and active enforcement of youth 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; December 2020
Packet Pg. 1186 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 24 WHEREAS, in 2018, more than 86% of tobacco retailers in California sold flavored noncigarette 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 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 tobacco26,148,149 and that these products help establish 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, 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 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 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 tobacco use, as evidenced by the following:
December 2020
Packet Pg. 1187 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 25 { 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, the availability of inexpensive tobacco products leads to increased tobacco use as evidenced by more than 100 academic studies that conclusively show that when tobacco products are made more expensive, fewer people use tobacco, fewer initiate tobacco use, and more people quit tobacco use;2,48-51,53-58
WHEREAS, research has also consistently shown that increases in cigarettes prices will result in less smoking across various sociodemographic populations;165 WHEREAS, a systematic review by the U.S. Community Preventive Services Task Force found that a 20% price increase would reduce demand for cigarettes by approximately 10.4%, the prevalence of adult tobacco use by 3.6%, and initiation of tobacco use by young people by 8.6%;49 WHEREAS, unequal price increases across different types of tobacco products lead to substitution from one product to another;56,58
WHEREAS, youth are particularly responsive to changes in tobacco prices,26,52,54,166 and evidence suggests that tobacco companies deliberately target youth with price reductions;26,51,64-66,167 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
December 2020
Packet Pg. 1188 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 26 WHEREAS, tobacco companies spend considerably to decrease the price of their products in order to counter state and local 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 multiplepackage 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
WHEREAS, although federal and state law ban the sale of individual cigarettes,78,173 neither federal nor California state laws restrict the sale of individual little cigars and cigars; WHEREAS, many retailers sell little cigars and cigars individually, making them more affordable and appealing to youth.79 Additionally:
{ 78.3% of California tobacco retailers sell a popular brand of youth-friendly cigars for less than $1.00;79
{ Between 2012 and 2016, annual sales of cigarillos increased by 78% overall and by 155% for “concept-flavored” (e.g., Jazz) cigarillos;174
WHEREAS, a 10% increase in cigar prices has been associated with decreased cigar sales175,176 and may significantly reduce cigar use among youth;177
WHEREAS, neither federal nor California state laws set a minimum price for tobacco products; WHEREAS, minimum price markups and related laws in other states have been shown to be effective at increasing the price of cigarettes but may remain vulnerable to price manipulation by the tobacco industry without attention to coupons and discounts;82 WHEREAS, studies have estimated that if price discounts were prohibited across the United States, the number of people who smoke would decrease by more than 13%;68 the impact of a $10 federal minimum floor price for cigarettes could reduce the number of packs sold in the United States by 5.7billion per year and prompt more than 10million smokers to quit;55 and that a state-level minimum floor price law designed to raise the average price of cigarette December 2020
Packet Pg. 1189 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 27 packs by just under $2.00 could decrease the prevalence of cigarette use and consumption by by more than 4% and reduce income-based smoking disparities in California;86 WHEREAS, by selling tobacco products, pharmacies reinforce positive social perceptions of smoking, convey tacit approval of 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, 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 lowincome 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 cannabisrelated flavor descriptors and these retailers were more prevalent in school neighborhoods with lower median income;190
WHEREAS, both youth and adult tobacco users are more likely to also use cannabis;191,192 December 2020
Packet Pg. 1190 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 28 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 tobacco in the commercial 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 tobacco access laws unless such laws are actively enforced through retailer compliance checks paired with meaningful penalties on business owners for violations;195 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/board of supervisors ] 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, the [ city council/board of supervisors ] has a substantial interest in protecting youth and underserved populations from the harms of tobacco use; and WHEREAS, the [ city council/board of supervisors ] 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 [ Insert jurisdiction name ] in order to protect the health, safety, and welfare of our residents;
NOW THEREFORE, it is the intent of the [ city council/board of supervisors ], in enacting this ordinance, to ensure compliance with the business standards and practices of the [ city/ county ] 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.
December 2020
Packet Pg. 1191 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 29 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: 10.3390/ijerph17062146. 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%20Document%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/ResearchandEvaluation/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 Oversight Committee. 2018. Available at: https://www.cdph.ca.gov/Programs/CCDPHP/DCDIC/CTCB/CDPH%20Document%20Library/TEROC/MasterPlan/TEROCMasterPlan2018-2020.pdf. 14 California Tobacco Control Program. Story of Inequity. 2019; http://tobaccofreeca.com/story-of-inequity. Accessed May 22, 2020.
15 Cal. Bus. & Prof. Code § 22972(a).
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Packet Pg. 1192 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 30 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.
24 The American Lung Association in California Center for Tobacco Policy and Organizing. Local Tobacco Policies in the Retail Environment. 2017.
25 The American Lung Association in California Center for Tobacco Policy and Organizing. Tobacco Retailer Licensing is Effective. 2018.
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).
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 Nonmenthol Cigarettes in a National Sample of Young Adult Cigarette Smokers. Nicotine Tob Res. 2018;20(9):1062-1068. doi: 10.1093/ntr/ntx181.
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Packet Pg. 1193 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 31 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/PeerReviewofScientificInformationandAssessments/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/CommitteesMeetingMaterials/TobaccoProductsScientificAdvisoryCommittee/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. 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: https://www.thecommunityguide.org/findings/tobacco-use-interventions-increase-unit-price-tobacco.
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Packet Pg. 1194 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 32 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:
http://tobaccopolicycenter.org/wp-content/uploads/2017/11/153.pdf. 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: 10.1371/journal.pone.0230364. 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.
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. 62 Federal Trade Commission. Cigarette Report for 2018. 2019. Available at: https://www.ftc.gov/reports/federal-trade-commission-cigarette-report-2018-smokeless-tobacco-report-2018. 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: 10.2105/ajph.92.6.908. 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.
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Packet Pg. 1195 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 33 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.
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/ResearchandEvaluation/SurveyInstrumentsTrainingManualsAndProtocols/CaliforniaTobaccoRetailSurveillanceStudt2017-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/ResearchandEvaluation/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/tobaccocontrol-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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Packet Pg. 1196 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 34 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:
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99 Finan LJ, Lipperman-Kreda S, Abadi M, et al. Tobacco outlet density and adolescents’ cigarette smoking: a meta-analysis. Tob Control. 2019;28:27-33. 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. 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.
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Packet Pg. 1197 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 35 108 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:
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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. 2018;27(e1):e19-e24. 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.addbeh.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: https://sanfranciscotobaccofreeproject.org/wp-content/uploads/Retail-Density-CaseStudy-1.27.16-FINAL-to-TFP.pdf. 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 Tobacco Control Research Initiative. 2016. Available at: https://cpb-us-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: https://news.delaware.gov/2014/03/18/attorneys-general-call-on-retail-pharmacies-to-stop-selling-tobacco-products. 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. 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).
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Packet Pg. 1198 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 36 124 Food and Drug Administration. Report to Congress — Progress and Effectiveness of the Implementation of the Family Smoking 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].
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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. 135 Kurti MK, von Lampe K, Thompkins DE. The illegal cigarette market in a socioeconomically deprived inner-city area:
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140 California Tobacco Control Program. California Tobacco Facts and Figures 2016. Sacramento, CA: California Department of Public Health. 2016.
141 Kann L, McManus T, Harris WA, et al. Youth Risk Behavior Surveillance — United States, 2017. MMWR Surveill Summ. 2018;67(8):1-114 and Supplementary Tables 52-93. doi: 10.15585/mmwr.ss6708a1. 142 Burrows, D.S. “Estimated Change in Industry Trend Following Federal Excise Tax Increase.” UCSF Library Truth Tobacco Industry Documents. Date Mod. Industry, Apr. 17, 2012: https://www.industrydocumentslibrary.ucsf.edu/tobacco/ docs/nnnw0084. Accessed May 12, 2020.
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Packet Pg. 1199 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 37 143 National Association of Convenience Stores. U.S. Convenience Store Count. Available at: https://www.convenience. org/Research/FactSheets/ScopeofIndustry/IndustryStoreCount; Statista. In-store merchandise sales of convenience stores in the United States in 2018, by product category. Available at: https://www.statista.com/statistics/308783/usconvenience-stores-in-store-merchandise-sales-by-category (Cigarettes + Other Tobacco Products Sales = $81.056 billion).
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: http://www.publichealthlawcenter.org/sites/default/files/resources/tclc-syn-retailer-2010.pdf. 145 Institute of Medicine. Public Health Implications of Raising the Minimum Age of Legal Access to Tobacco Products. Washington, DC: The National Academies Press. 2015. Available at: https://www.nap.edu/catalog/18997/public-health-implications-of-raising-the-minimum-age-of-legal-access-to-tobacco-products. 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 Community Survey Results-all counties. 2016. Available at: https://www.cdph.ca.gov/Programs/CCDPHP/DCDIC/CTCB/ CDPH%20Document%20Library/ResearchandEvaluation/Reports/HSHCTechnicalReport2016.pdf. 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.
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: 10.1093/ntr/nts093. 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/jamanetworkopen.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 targeting 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: 10.5888/pcd16.180614. 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.
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Packet Pg. 1200 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 38 159 National Cancer Institute. Cigar Smoking and Cancer. 2020; https://www.cancer.gov/about-cancer/causes-prevention/risk/tobacco/cigars-fact-sheet. Accessed May 12, 2020. 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. 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. Available at: 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/tobaccocontrol-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.
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Packet Pg. 1201 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented www.publichealthlawcenter.org/caltobacco Comprehensive Tobacco Retailer Licensing Ordinance 39 177 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. 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: 10.1016/j.pmedr.2020.101064. 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, Schleicher 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: 10.1016/j.addbeh.2017.08.009. 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.
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Packet Pg. 1202 Attachment: ^Public Health Law Center's Comprehensive Tobacco Retailer Licensing Ordinance (9.1(d)--Consider adopting a tobacco-oriented
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Accept the report on tobacco retailing and provide direction to staff regarding next steps.
Fiscal Impact
There is no fiscal impact with accepting the report. If the City Council (Council) would like to pursue drafting an ordinance on tobacco retailing, there would be associated staff time costs.
Currently, the Redding Police Department (RPD) is running decoy operations through a grant.
The grant consists of five operations a year with each operation consisting of 10-12 retailer visits per operation - revenue received per operation is $1,500.
If the Council pursues a Tobacco Retail License (TRL) Program that is to be managed and enforced by Code Enforcement, staff would need to further examine cost recovery of the program. In TRL programs, the costs of education, inspections, and enforcement are funded by the cost of the license, and can be supplemented with grants. The cost of the license could fund a full time Code Enforcement position and even an administrative position to process the licenses.
Further examination would be required.
Alternative Action
The Council could choose to not accept the report.
Background/Analysis
On February 6, 2024, staff presented to the Council a report regarding what California (State) laws are in place and what other jurisdictions are doing in regards to tobacco enforcement. Staff presented a broad scope of what the majority of State jurisdictions are doing in regards to tobacco enforcement and specifically what the jurisdictions are doing in Shasta County. The MEETING DATE: September 17, 2024
ITEM NO. 9.1(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.1(a)--Consider report regarding tobacco retailing in the City of Redding.
Jason Gibilisco, Management
Assistant to the City Manager
Packet Pg. 1203 Packet Pg. 260 Attachment: Staff Report from September 17, 2024 (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) Report to Redding City Council September 12, 2024
Re: 9.1(a)--Accept Report and Provide Direction Regarding Tobacco Retailing Page 2 Council accepted the report and advised staff to further canvas State municipalities to determine what is and is not working regarding tobacco enforcement, retailer density, how youth are targeted, and any other information as it relates to tobacco retailers.
Since the previous meeting, the 2023 California Youth Tobacco Use Survey (survey) was released for Shasta County and there is new legislation, that, if signed by the Governor, will increase the fine for selling a tobacco product to youth. The survey was released in March 2024, and shows Shasta County has the highest rate of tobacco ever used by youth in the State of California at 41.2 percenti. The report shows that one in three Shasta County Youth report being able to purchase tobacco directly form a tobacco retaileri. On average, students reported first using tobacco at age 13 and 82.2 percent of students who have used tobacco reported trying vapes as their first tobacco producti.
Potential new tobacco enforcement legislation has moved forward to Governor Newsom for consideration. Senate Bill (SB) 2021 supplements the existing fine that can be issued to an individual who knowingly sells a tobacco product to a person under 21 years of age. This new bill allows for a fine to be issued to the retailing businesses or corporation. The fine amount that can be issued to the business for knowingly selling to a youth is punishable by a fine of $500 for the first offense, $1,000 for the second offense, and $5,000 for the third offense.
The California Department of Tax and Fee Administration (CDTFA) requires all retailers who sell cigarettes, or tobacco products, to obtain a cigarette and tobacco retailer's license. The CDTFA defines a tobacco product on their website as:
• “any product containing, made, or derived from tobacco or nicotine that is intended for human consumption;”
• “Any electronic smoking or vaping device that delivers nicotine or other vaporized liquids;” and
• “Any component, part, or accessory of tobacco product, whether or not sold separately.” Data Collection and Benchmarking
Staff analyzed 48 various jurisdictions throughout the State on what types of tobacco ordinances and enforcement other jurisdictions have in place. Staff specifically asked jurisdictions if they have a tobacco ordinance, if they enforce their tobacco ordinance, and if the ordinance is working. Staff also viewed each jurisdiction’s municipal code for specifications on tobacco related ordinances. Staff analyzed if a TRL is required, how many tobacco retailers are in the jurisdiction, what are the associated fees, population, penalties, and what specific ordinances are in place. Staff did not hear back from some jurisdictions through phone or email which resulted in reviewing online ordinances and information.
Of the 48 jurisdictions that were analyzed, 28 of them require retailers to have a local TRL. As of October 2023, at least 226 municipalities in California require a TRL to sell tobacco products.
Jurisdictions that require a TRL, required them to be renewed annually, allow them to have local control, and enforcement capabilities of the tobacco retailers in their jurisdiction. This allows the jurisdiction to set any additional requirements such as limits on how many retailers are operating in their jurisdiction and general oversight. It makes enforcement more effective and efficient and gives local governments the ability to intervene when needed. Many jurisdictions have set their ordinances to go above and beyond of what the federal and state law requires.
Staff found several jurisdictions have adopted tobacco ordinances but currently have no funding for their tobacco program or for enforcement. These jurisdictions are Butte County, Oroville, Packet Pg. 1204 Packet Pg. 261 Attachment: Staff Report from September 17, 2024 (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) Report to Redding City Council September 12, 2024
Re: 9.1(a)--Accept Report and Provide Direction Regarding Tobacco Retailing Page 3 Hollister, San Benito County, Arroyo Grande, and Merced County. The Cities of Anderson, Santa Rosa, and Vallejo, stated that they are in the process of working on updating or creating a TRL program.
The City of Benicia was found to have the most restrictive requirements for tobacco retailers.
Followed by Sonoma County and Sonoma County cities such as Petaluma, Sebastopol, Windsor, and Sonoma. These jurisdictions require each tobacco retailer to hold a TRL, implemented density requirements (with some no longer issuing TRLs due to being over density), proximity requirements to youth areas, distance/proximity requirements to other tobacco retailers, no selling of flavored tobacco, no tobacco retailing at pharmacies, minimum pricing requirements, and some even banning the sale of electronic cigarettes or vaping products.
There was a wide array of specific ordinances that have been implemented throughout the State.
The various ordinances in place include:
Proximity Requirement to a Youth Sensitive Area
Jurisdictions have set requirements for tobacco retailers operating near youth sensitive facilities. Youth sensitive facilities mainly include, schools, parks, libraries, day cares, playgrounds, and ultimately, specific areas defined by the jurisdiction. Jurisdictions set prohibitions for tobacco retailers near schools because of the belief that children are more likely to experiment with tobacco products when tobacco retailers are near youth areas.
Setting distance restrictions near youth areas may assist with reducing youth smoking rates. There are 16 jurisdictions that have set a distance requirement for tobacco retailers near youth sensitive areas. The distance set by the jurisdictions analyzed ranges from 300 feet to 1,000 feet.
Proximity Requirements Near Existing Tobacco Retailers
There are 10 jurisdictions that have requirements for no new tobacco retailers to operate within a specific proximity to other tobacco retailers. This requirement prevents the over concentration of tobacco retailers within particular neighborhoods and how close they can operate from one another. The overconcentration of tobacco retailers may affect youth smoking behaviors and youth access to tobacco products. The distance set by the jurisdictions analyzed ranges from 500 feet to 1,000 feet.
Tobacco Retailers per Population Density or Cap on the Amount of Tobacco Retailers Jurisdictions have imposed requirements for tobacco retailers based on the local population. Jurisdictions have based this requirement off of the State’s ability to limit the number of alcohol licenses. Greater tobacco density may lead to higher smoking rates. In the jurisdictions analyzed, 12 jurisdictions have adopted an ordinance based off the population. The jurisdictions analyzed had various densities adopted that include one tobacco retailer for every 1,500 residents (one jurisdiction), 1,750 residents (one jurisdiction), 2,000 residents (four jurisdictions), and 2,500 residents (three jurisdictions).
This sets local capacity of tobacco retailers based on the number of residents. If population increases then the number of tobacco retailers can be increased. The City of Sonoma has a set capacity of 15 retailers, and Nevada City has a set limit of five. The City of Oroville requires a use permit from planning and has a density requirement of one for every 4,000 residents for significant tobacco retailers which has been reached.
Packet Pg. 1205 Packet Pg. 262 Attachment: Staff Report from September 17, 2024 (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) Report to Redding City Council September 12, 2024
Re: 9.1(a)--Accept Report and Provide Direction Regarding Tobacco Retailing Page 4 No Selling of Flavored Tobacco
With the passing of SB 793, effective January 1, 2023, flavored tobacco or tobacco product flavor enhancers are now illegal to sell, offer for sale, or possess with the intent to sell or offer for sale in the State with a few exceptions. Flavored tobacco is considered a starter product for youth that assists with long term tobacco use. There are countless flavors that range from Cotton Candy, Cherry Crush, Pop Tart, Banana Blast, Wintergreen, and many more. There are 17 jurisdictions that were analyzed that have an ordinance that prohibits the sale of flavored tobacco with some going above and beyond SB 793 and banning all flavored tobacco. In communications with jurisdictions, flavored tobacco products are still being found, mainly at significant tobacco retailers such as smoke shops.
No Sale of Electric Smoking Devices (ESDs)/ Vapes
Electronic Cigarettes are also known as e-cigarettes, vapes, or e-vaporizers, and are battery operated devices used to deliver nicotine, flavorings, and other chemicals into the body in an aerosol form rather than smoke. The majority of ESDs or vapes are widely used for flavors. Following the ban on flavored tobacco, jurisdictions noticed that tobacco companies are finding ways to circumvent the flavor ban and are calling products by the names of colors such as “Blue.” Blue could mean that its flavor is blue raspberry or blueberry. ESDs are also what the youth are using in higher rates. The State’s flavor ban does leave room for interpretation on what is and is not considered flavored tobacco.
Jurisdictions have decided to go one step further and prohibit the sale of all ESDs for this reason. Since the majority of ESDs are flavored, jurisdictions reported minimal impacts to prohibiting the sale of ESDs. The Environmental Protection Agency classifies ESDs as hazardous waste due to their lithium batteries and nicotine in the liquid. There are seven jurisdictions analyzed that have prohibited the sale of ESDs.
No Selling of Tobacco at Pharmacies
Jurisdictions have restricted pharmacies from selling tobacco and tobacco related products. This ordinance is based off pharmacies being a place people go to for health care and medicine. It can send a mixed message about their safety because it is where people purchase healthcare products. There are 11 jurisdictions analyzed that have an ordinance in place prohibiting the sale of tobacco products at pharmacies.
Minimum Package Pricing/ Quantity Requirements/ No Free Samples or Discounts Jurisdictions have imposed minimum pricing requirements and minimum packaging requirements. The implementation of pricing requirements is that if tobacco products are priced higher, then they are likely to be unaffordable by youth. Higher prices make products less appealing and can make people use tobacco products less. Minimum packing requirements is thought to have the same logic. Cigarettes are already required to be sold in packs of 20 but cigars can be sold in singles. Some examples analyzed include:
minimum price for a pack of cigarettes to be no lower than $7 or $10; little cigars to be sold in packs of five or more and to be priced no less than $7; and smokeless tobacco to be no less than $10. Jurisdictions that have imposed minimum pricing and packaging ordinances have also imposed discount restrictions to back up the minimum pricing Packet Pg. 1206 Packet Pg. 263 Attachment: Staff Report from September 17, 2024 (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) Report to Redding City Council September 12, 2024
Re: 9.1(a)--Accept Report and Provide Direction Regarding Tobacco Retailing Page 5 requirement. Coupons and free samples are prohibited under State law. Six jurisdictions analyzed have requirements on tobacco pricing and quantity packaging requirements.
Smoke Free Multi-Family Housing
Jurisdictions have set no smoking requirements for multi-family housing. This restriction is in place to protect residents from second hand smoke, minimize fire risk, and provide overall quality of life to residents. The restriction includes no smoking in the building and in common areas with a designated smoking area away from the building or any units.
There are nine jurisdictions that were analyzed that have created an ordinance prohibiting smoking in multi-family housing.
Other Regulations Found
• Tobacco retailer must obtain a use permit through the jurisdiction’s planning department to operate within a certain distance to a youth facility; • No significant tobacco retailers. A significant tobacco retailer can be defined as their primary purpose is to sell tobacco and tobacco related products; • No significant tobacco retailers to operate within a certain distance to residential property;
• No deliveries of tobacco products to be made by employees or by private delivery drivers;
• No placing tobacco products or advertising within 5 feet of candy, snacks, and nonalcoholic beverages;
• No advertising of tobacco products within 500 feet of a youth sensitive area; and • No advertising of tobacco products on windows or advertising to be seen from outside the establishment.
Majority of all jurisdictions analyzed that have imposed tobacco retailing restrictions allowed legally operating tobacco retailers to continue to operate post adoption of their ordinance as long as the tobacco retailer was in good standing. This included businesses that were within required distances to youth facilities and within proximity to other tobacco retailers, and if a TRL cap was initiated. Some offered grace periods such as San Jose, to sell off flavored tobacco which was prior to the State banning flavored tobacco. Santa Maria required pharmacies to immediately stop selling tobacco and San Luis Obispo County immediately required businesses to cease selling ESDs. Further break down of ordinances and analysis can be found on the attached Tobacco Retailer Regulation Comparison spreadsheet.
What is and is not working
The Council directed staff to follow up on what is and is not working. The jurisdictions that are successfully running a TRL program, provide education, inspections, and enforcement, feel like their ordinance is working to prevent youth access to tobacco products. If the jurisdiction has a density limit, it prevents the over density of more tobacco retailers from operating. Jurisdictions feel that to be able to back up enforcement with fines and TRL suspension and revocation assist greatly in preventing retailers from being a bad actor. Fines allow the jurisdiction to immediately issue a citation for when violations are found such as a business selling flavored tobacco. If a business continues to sell flavored tobacco a jurisdiction can then issue a second citation and can suspend their TRL or work towards full revocation. Many jurisdictions expressed the use of discretion when deciding on the level of enforcement to be issued. It was reported that Packet Pg. 1207 Packet Pg. 264 Attachment: Staff Report from September 17, 2024 (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) Report to Redding City Council September 12, 2024
Re: 9.1(a)--Accept Report and Provide Direction Regarding Tobacco Retailing Page 6 suspension and revocation of TRL can be stronger than fines but having all available options is best.
The City of San Jose operates a decoy program and issues a citation amount of $2,500 for selling to a youth. The San Jose City Code Enforcement Inspector felt like the fine amount should be higher due to one business being fined twice for selling to a decoy on two different occasions.
The City of San Jose has smaller fine amounts for other violations such as selling flavored tobacco. Other cities have set fine amounts up to $5,000, and include suspension and revocation of the stores’ TRL. A TRL suspension could have a higher business impact over a smaller fine amount on a business because the store physically has to remove all tobacco products from their store shelfs for a certain amount of time. Sonoma County has the ability to suspend a TRL and issue a citation. Some jurisdictions are able to suspend a TRL for any violation of their Tobacco Retail Ordinance. Jurisdictions with higher fines, suspensions and revocation of TRL are able to effectively enforce tobacco restrictions to ensure retailers are always in compliance.
In the study that was performed, 2021 State of Tobacco Control: California Local Gradesii, for a TRL ordinance to be successful in reducing the sale of tobacco to minors it should include:
• A sufficient fee for the TRL to cover administration and enforcement efforts; • Permission to sell tobacco through an annual license that must be renewed annually; • Include provisions against any state laws in ordinance; and • Financial deterrent that includes fines, penalties, suspensions and revocation of the license.
In the report Tobacco Retailer Licensing is Effective, 41 jurisdictions were analyzed in 2018 and determined that youth sales rates dropped following the adoption of a strong tobacco retailer licensing ordinance. This was determined from youth purchase surveys administered by local agencies. The report indicates that a TRL alone will not decrease youth access but with enforcement and education regarding the local regulations will always be needed. Six of the jurisdictions that were analyzed were included this report (Davis, Elk Grove, Grass Valley, Oroville, San Luis Obispo County, and Woodland).
City of Redding (City) Tobacco Retailer Landscape
In the City there are 119 tobacco retailers. Staff worked with the County of Shasta and the State to obtain the actual amount of tobacco retailers to include sole proprietors, husband and wife coowners, and domestic partners. The below table shows the number of store types that hold a CDTFA issued tobacco retailers license:
Redding Tobacco Retailers
Gas Station 39
Smoke Shop/ Significant Tobacco Retailers 29
Small Market/ Convenience Store 25
Liquor Store 8
Pharmacy 8
Super Market 7
Golf Course 2
Winery 1
Staff worked with the City’s Information and Technology Department’s Geographic Information System personnel to map all tobacco retailer adresses and compare their distance to youth Packet Pg. 1208 Packet Pg. 265 Attachment: Staff Report from September 17, 2024 (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) Report to Redding City Council September 12, 2024
Re: 9.1(a)--Accept Report and Provide Direction Regarding Tobacco Retailing Page 7 sensitive locations, and their distance to other tobacco retailers. Staff defined youth sensitive locations as the same as in the City’s cannabis ordinance which includes schools, parks, and child care facilities. Of these stores there are 20 youth sensitive areas that are located within 1,000 feet of a tobacco retailer. There are 100 tobacco retailers that are located within 500 feet of another tobacco retailer. The population density is one tobacco retailer for every 787 residents.
Local Enforcement
RPD received a grant earlier this year to perform decoy operations. RPD receives $1,500 per operation and must perform five operations a year with each operation requiring 10-12 retailer visits. To date, RPD has performed three tobacco decoy operations that included 41 decoy attempt purchases of tobacco. In all, five sales were made by a youth decoy. One tobacco retailer sold to a decoy twice on two different operations. The four stores are smoke shops and would be considered a significant tobacco retailer. Of these four store stores, two are located within 500 feet of another tobacco retailer and none are located within 1,000 feet of a youth sensitive area.
In June of 2024 the CDTFA was in in the City doing inspections with Shasta County’s Tobacco Compliance Specialist and RPD. Their mission was to ensure tobacco retailers were properly licensed through the State and have all proper invoices for their products dating back to a year.
They are also able to confiscate illegally imported tobacco and cannabis products. They are unable to confiscate flavored tobacco which falls under the California Department of Public Health (CDPH) and they did not perform underage decoy purchases. They inspected seven tobacco retailers in Redding and found violations at all seven of the retailers. The violations range from confiscation of illegally imported products, confiscation of cannabis products, and confirmation of flavored tobacco. The seven stores inspected were all smoke shops. Two of these stores were issued a citation and the total amount of confiscated illegal products exceeded $9,000. Three of these seven retailers sold to a minor as part of RPDs decoy operations earlier this year.
The Food and Drug Administration (FDA) performs random and unannounced decoy operations and has their inspection logs publicly available on their website. From January 1, 2022, to July 16, 2024, there was one sale to a decoy out of 22 attempts. Their follow up procedure for a decoy sale is to send a warning letter, then after another confirmed sale, the FDA can follow up with civil penalties, injunctions, and criminal prosecution. The confirmed sale to a decoy was made at a smoke shop or significant tobacco retailer.
How Kids are Targeted
Kids are targeted by tobacco companies in several different ways. The largest is advertising. The U.S. Centers for Disease Control and Prevention reported that cigarette and smokeless tobacco companies spent $8.2 billion in 2019 on advertising and promotional expensesiii. This includes incentives to retailers by tobacco companies to offer price discounts, promotions, and stocking certain brands. Lower prices and discounts are more appealing to lower income residents and more appealing to youth. Tobacco products such as a pack of three small cigars can be found for $1.19 in the City.
The advertising of tobacco products includes how they are packaged. The packaging of tobacco products is made and designed similar to candy products. This can make it very appealing to youth. The placement of tobacco products and advertising are typically placed near candy, soft drinks, and adjacent to the cash register in places likely to be seen by youth. Advertisements can also be strategically placed outside to be seen by youth passing by.
Packet Pg. 1209 Packet Pg. 266 Attachment: Staff Report from September 17, 2024 (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) Report to Redding City Council September 12, 2024
Re: 9.1(a)--Accept Report and Provide Direction Regarding Tobacco Retailing Page 8 Flavors and ESDs are also more appealing to youth. Flavors can hide the distinct tobacco flavor and can make products easier to inhale. Flavored tobacco products have been banned in the State but flavored products are still being found in stores. ESDs come in a variety of designs, relatively low in price, easily concealable, and have high nicotine content that can make it very addicting to users.
Next Steps
If the Council would like to move forward with any potential tobacco retail ordinance and/ or TRL program, staff can further analyze and prepare an ordinance to bring back to the Council at a future date for possible adoption. This process will include necessary outreach with stakeholders, work with the City Attorney’s Office and any other necessary departments.
Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.
Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” Attachments
^Tobacco Staff Report February 6, 2024
^Tobacco Retailer Licensing is Effective September 2018 ^California Youth Tobacco Survey-Shasta County Data
California Youth Tobacco Survey 2023 Annual Report
^Jurisdictional Data
i Clodfelter, R., Dutra, L. M., Bradfield, B., Russell, S., Levine, B., & von Jaglinsky, A. (2023). Annual results report for the California Youth Tobacco Survey 2023. RTI International. ii County Grades. (2021). https://www.lung.org/getmedia/3b258a14-f355-42d0-9cac-18901c1802eb/state-oftobacco-control-california-local-grades.pdf iii CDC. (2018, May 4). Tobacco Industry Marketing. Centers for Disease Control and Prevention. https://www.cdc.gov/tobacco/data_statistics/fact_sheets/tobacco_industry/marketing/index.htm Packet Pg. 1210 Packet Pg. 267 Attachment: Staff Report from September 17, 2024 (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Accept the report on tobacco retailing and provide direction to staff regarding next steps.
Fiscal Impact
There is no fiscal impact with accepting this report. If the City Council (Council) would like to alter the former Council’s September 2024 previous direction to staff which was to create a Tobacco Retail License (TRL) ordinance specific to vape/smoke shops there would be associated staff time costs with updating the ordinance.
The Redding Police Department (RPD) has received two tobacco use prevention related grants.
The first grant is with the County of Shasta to perform decoy operations through March 15, 2026. The grant consists of five operations a year with each operation consisting of 10 to 12 retailer visits per operation – revenue received per operation is $1,500. The second grant is through the California Department of Justice that provides $630,569 through October 31, 2027.
This grant funds police officers to administer and conduct enforcement operations that include retail inspections, decoy operations, shoulder tap, undercover buys, and retailer education.
Alternative Action
The Council could choose to not accept the report or move forward with implementation of a TRL or provide other direction.
MEETING DATE: March 18, 2025
ITEM NO. 9.1(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.1(c)--Consider accepting report regarding tobacco retailing in the City of Redding.
Jason Gibilisco, Management
Assistant to the City Manager
Packet Pg. 1211 Attachment: Staff Report from March 18, 2025 (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) Report to Redding City Council March 12, 2025
Re: 9.1(c)--Accept Report and Provide Direction Regarding Tobacco Retailing Page 2 Background/Analysis
On February 6, 2024, staff presented a report to the Council outlining current California laws and tobacco enforcement practices in various jurisdictions, including Shasta County. The Council accepted the report and directed staff to conduct further research on tobacco enforcement practices in other California municipalities and determine what is and is not working regarding tobacco enforcement, and any other information as it relates to tobacco retailers.
Staff canvased the municipalities for information related to tobacco retailers and returned to Council on September 17, 2024 to present this information. Staff analyzed 48 jurisdictions with 28 of them requiring retailers to have a local TRL. This is in addition to the state license that is required by the California Department of Tax and Fee Administration for any retailers who sell tobacco products. The cost of the state license is $265 and must be renewed annually. It is intended to prevent retailers from selling unregulated tobacco products.
Municipalities that require a TRL also require an annual fee in concert with the TRL, and allows for local control, and enforcement capabilities over tobacco retailers in their jurisdiction. Many jurisdictions have set their ordinances to go above and beyond what the federal and state law requires. Jurisdictions that are successfully running a TRL program also provide education, inspections, and enforcement to their tobacco retailers.
The Council accepted the September 17, 2024 staff report on tobacco retailing and directed staff to return with a TRL ordinance for vape and smoke shops, and include fee options to fund enforcement through both code enforcement and law enforcement, for consideration at a future Council meeting.
Following the September 17, 2024 meeting, staff worked on both a TRL ordinance specific to vape and smoke shops and worked on fee options to fund the TRL program. The TRL ordinance specific to vape and smoke shops is still under review and not ready to be presented at this time.
The options to oversee the TRL program could be either RPD or Redding Code Enforcement (RCE).
If the Council would like to pursue implementing a TRL program, the fee for the TRL will vary depending on the overseeing department; RPD or RCE. The fee will also vary depending if it is vape/smoke shop only, or for all tobacco retailers. It was noted at the September 17, 2024 Council meeting, that there are 29 vape/smoke shops and 119 tobacco retailers in the City of Redding.
RPDs identified resource needs to oversee a TRL program would be one full-time Police Officer position and a half-time Sergeant position. RPD is currently receiving funding through the above-mentioned grant for tobacco use prevention related enforcement and education activities.
RCE’s identified resource needs to run the TRL program would be one full-time Neighborhood Preservation Officer and a half-time Admin Assistant. The following are the estimated costs for RPD and RCE to successfully cover administration and enforcement efforts based on their identified needs to run a TRL program based off the number of tobacco retailers.
Packet Pg. 1212 Attachment: Staff Report from March 18, 2025 (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance) Report to Redding City Council March 12, 2025
Re: 9.1(c)--Accept Report and Provide Direction Regarding Tobacco Retailing Page 3 Redding Police
Department
Cost of a Full-time
Police Officer and halftime Sergeant
Estimated Cost of TRL
for Vape/ Smoke shops
only (29)
Estimated Cost
of TRL for all
Tobacco
Retailers (119)
$379,000 $13,068.96 $3,184.87
Redding Code
Enforcement
Cost of a Full-time
Neighborhood
Preservation Officer and
half-time Admin
Assistant
Estimated Cost of TRL
for Vape/ Smoke shops
only (29)
Estimated Cost
of TRL for all
Tobacco
Retailers (119)
$140,020 $4,828.27 $1,176.63
The TRL program costs are significantly reduced if requiring all tobacco retailers to be licensed versus the vape/smoke shops only. TRL program costs are even further reduced with RCE overseeing the program. The cost of the TRL covers staff time costs to run the TRL program and includes education, inspections, and enforcement for tobacco retailers. Of course the cost could be further reduced if the Council wanted to lower the amount of oversight or wished to subsidize the activity with the General Fund.
At the February 18, 2025, Council meeting, agenda item 12, the Council directed staff to bring back the TRL item for further direction. If the Council would like to move forward with altering the previously directed tobacco retail ordinance for vape/smoke shops, staff can further analyze and update the ordinance to bring back to the Council at a future date for possible adoption. This process will include necessary outreach with stakeholders, work with the City Attorney’s Office and any other necessary departments.
Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.
Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” Attachments
^Tobacco Staff Report February 6, 2024
^Staff Report City Council 9-17-24
^Jurisdictional Data
Tobacco Retailer Licensing is Effective September 2018
California Youth Tobacco Survey-Shasta County Data
California Youth Tobacco Survey 2023 Annual Report
Packet Pg. 1213 Attachment: Staff Report from March 18, 2025 (9.1(d)--Consider adopting a tobacco-oriented retailer ordinance)
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following for the City of Redding Police Department (RPD):
(1) Extend the lateral signing incentive for an additional 18 months, with a tiered structure based on prior sworn law enforcement experience: officers with 1 to 2 years of experience will receive a $20,000 bonus; those with 2 to 5 years of experience will receive $40,000; and those with more than 5 years of experience will receive $60,000. The incentive will continue to be disbursed in three installments: 25 percent upon hire; 50 percent upon successful completion of RPD’s training program; and the remaining 25 percent upon successful completion of the probationary period. A contract requiring a three-year commitment to RPD will remain in effect, and lateral officers who voluntarily separate before fulfilling the full term will be required to repay the incentive on a prorated basis; and
(2) Authorize the City Manager to cancel the incentive, without City Council approval, due to unforeseen issues, such as budget reductions.
Fiscal Impact
The cost of the hiring incentive will be paid through the existing Redding Police Department’s (RPD) budget. The cost of the incentive will be funded by existing salary savings from open policer officer positions. Hiring a lateral officer is considerably less than a police recruit (academy) position as the total cost differential is estimated to be approximately $109,100 per officer.
Alternative Action
The City Council (Council) could choose not to extend the hiring incentive for lateral police officers and provide staff with alternative direction. Not extending the hiring incentives may impact RPD’s ability to recruit qualified applicants to fill vacant police officer positions.
MEETING DATE: June 17, 2025
ITEM NO. 9.9(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.9(b)--Consider extending the Lateral Signing Incentive for the Redding Police Department.
Brian Barner, Chief of Police
Packet Pg. 1214
Report to Redding City Council June 11, 2025
Re: 9.9(b)--Lateral Signing Bonus Page 2
Background/Analysis
On March 15, 2022, the Council approved increasing the lateral signing bonus from $10,000 to $40,000 for police officer positions to help address staffing shortages within RPD. This provided RPD with a significant recruitment advantage and the ability to attract very well qualified lateral police officers to RPD. On September 5, 2023, recognizing the continued need for experienced officers, the Council extended this incentive for an additional 18 months. This decision came at a time when RPD was experiencing significant staffing challenges due to retirements, resignations, and injuries.
Hiring lateral police officers provides a strategic advantage for RPD. These officers bring prior law enforcement experience, require shorter training periods with Field Training Officers (FTOs), and ultimately result in substantial cost savings. In contrast, the estimated cost of hiring and training a police recruit, including academy tuition, salary, benefits, meal and lodging stipend, uniform allowance, and ammunition, totals approximately $81,550. This figure does not include the extended field training time before a recruit is certified as a solo officer.
Currently, lateral officers are averaging nine weeks in field training, compared to seventeen to twenty weeks for police recruits. That additional time represents a period during which police recruits need more field training time. This additional field training includes a field training officer being paired with the officer in training, making them unavailable for staffing a patrol beat, thereby reducing patrol coverage and increasing costs. The average price of the FTO’s salary and benefits for just eight additional weeks is $27,550. Therefore, the total cost differential between hiring a lateral officer versus a recruit is estimated to be approximately $109,100 per officer.
Since the signing bonus program began in March 2022, RPD has hired 29 lateral officers, with the most recent hire in May 2024. Of those, 21 officers are still employed with RPD, demonstrating a strong retention rate and return on investment. During that same period, RPD hired 17 police recruits, with 14 completing the program.
In total, RPD has saved more than $500,000 by hiring lateral officers in lieu of recruits, based solely on training-related costs. These savings have been critical during times of fiscal constraint.
A comparative analysis of agency incentives from 2023 to 2025 shows that most law enforcement agencies continue to rely on financial bonuses to attract qualified candidates. The following table displays what agencies bonuses were in 2023 and what they are in 2025. 2023 2025 Notes
Chico Police Department $40,000 $50,000 "Seeking City Council approval" Shasta County Sheriff’s Office $15,000 $15,000
Paradise Police Department $40,000 $40,000
Eureka Police Department $20,000 $50,000 From June 2024, "limited time offer" Vacaville Police Department $20,000 $20,000
Palo Alto Police Department $25,000 unavailable
San Mateo Police Department $30,000 $30,000
Alameda Police Department $75,000 $75,000
Oakland Police Department $50,000 unavailable
Packet Pg. 1215
Report to Redding City Council June 11, 2025
Re: 9.9(b)--Lateral Signing Bonus Page 3
Scotts Valley Police Department $40,000 $40,000
Yuba City Police Department $45,000 $45,000
Maintaining a competitive incentive allows the City of Redding (City) to remain viable in a highly competitive hiring environment. As RPD anticipates further vacancies due to retirements and injuries, continuing the signing bonus program will ensure the department remains staffed with experienced, fully trained officers while simultaneously reducing onboarding costs.
Currently, four positions remain vacant, and RPD remains vulnerable to additional losses from anticipated retirements. When lateral officers are hired with the signing bonus, the lateral is required to sign a contract agreeing to a three-year commitment to RPD. Officers who voluntarily separate before completing the full term must repay a prorated portion of the incentive, further protecting the City’s investment.
Extending the lateral signing bonus is not only a fiscally responsible decision but a strategic necessity for sustaining public safety in the City. This investment continues to yield highperforming, experienced officers while significantly reducing costs and mitigating the risks associated with long training timelines and uncertain recruit success rates.
Environmental Review
This item is not a project as defined by the California Environmental Quality Act, therefore, no further action is required at this time.
Council Priority/City Manager Goals
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” Packet Pg. 1216