City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2026-00160 1/13/2026
Grant: Authorization to accept grant award for the California Department of Justice (CA DOJ) 2025/26 Tobacco Grant Program
File ID: 2026-00160
Location: Citywide
Recommendation: Adopt a Resolution: authorizing the City Manager or designee to: 1) accept state grant funding in an amount up to $884,021 from the California Department of Justice (CA DOJ) 2025/26 Tobacco Grant Program; 2) approve the CA DOJ Memorandum of Understanding (MOU) for award acceptance; 3) establish the CA DOJ Tobacco Grant project (G21009000); 4) establish revenue and expenditure budgets in G21009000 in the amount of $884,021 in the Operating Grant Fund (Fund 2702); and 5) accept all eligible CA DOJ Tobacco Grant Program grant related expenditures based on the grant duration of November 21, 2025, through June 30, 2029.
Contact: Peter Lemos, Code & Housing Enforcement Chief, (916) 808-8183, [email protected], Community Development Department Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
3-DOJ Award Letter
4-DOJ Memorandum of Understanding
Description/Analysis
Issue Detail: The California Department of Justice (CA DOJ) released their annual Tobacco Grant program on April 21, 2025. The Community Development Department (CDD) received approval to submit a Request for Proposal (RFP) for funding a 36-month period of performance grant. The City was awarded in the amount of $884,021 and CDD will be the lead department jointly working with the City Attorney’s Office.
The City of Sacramento Code Compliance Division, in collaboration with the City Attorney’s Office, proposed a comprehensive tobacco enforcement project aimed at reducing illegal sales of flavored tobacco products and tobacco products to underage individuals. The proposal included retailer
File ID: 2026-00160 1/13/2026
inspections, undercover purchases, and targeted education efforts for retailers and enforcement officers. Grant funds will be used to support employee labor costs, purchase buy money, cover operational expenses such as fuel, and acquire surveillance technology capable of live monitoring, recording, and securely storing audio/video evidence. Code will serve as the lead department in all field operations, with legal and logistical support provided by the City Attorney’s Office, as needed.
This coordinated effort will focus on high-risk areas across the city, particularly locations near schools and youth-centered spaces, to address the public health risk posed by unlawful tobacco access and ensure strong enforcement of local and state laws.
Policy Considerations: The recommendation in this report is in accordance with Resolution 2025- 0162, Section 11, that requires City Council approval to establish an operating grant over $250,000 and when the grantor requires Council action as a condition of funding the grant. CA DOJ requires all grant applicants to seek a resolution from their governing body to accept the grant.
Economic Impacts: None.
Environmental Considerations: Not applicable.
Sustainability: None.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The City is the awarded agency for the DOJ Tobacco Grant Program for the FY2025/26 grant cycle. CDD is requesting City Council approval to accept the grant award, approve the CA DOJ MOU, establish operating grant project (G21009000), and establish revenue and expenditure budget in project G21009000 for $884,021. This grant funding will positively impact the City’s ability to provide increased services related to tobacco compliance.
Financial Considerations: The approval and adoption of the attached Resolution will not impact the General Fund, nor are there any obligations on the part of the City for matching funds. Grant funds will be used to support employee labor costs, purchase buy money, cover operational expenses such as fuel, and acquire surveillance technology capable of live monitoring, recording, and securely storing audio/video evidence. Staff is recommending the CA DOJ Tobacco Grant project (G21009000) be established with revenue and expenditure budgets in the amount of $884,021 in the Operating Grant Fund (Fund 2702).
Local Business Enterprise (LBE): Not applicable.
Resolution January 13, 2026 Page 1
of 2
RESOLUTION NO.
Adopted by the Sacramento City Council
January 13, 2026
GRANT: THE CALIFORNIA DEPARTMENT OF JUSTICE (CA DOJ) 2025/26
TOBACCO GRANT PROGRAM
BACKGROUND
A. The California DOJ (CA DOJ) released their annual Tobacco Grant Program application period on April 21, 2025. This program provides approximately $ 28.5 million in available grant funding to support local enforcement efforts to reduce illegal retail sales and marketing tobacco products to minors and youth.
B. The California Healthcare, Research and Prevention Tobacco Tax Act of 2016 (Proposition 56) funding helps promote a healthier California by reducing illegal retail sales and marketing of cigarettes and tobacco products, including e -cigarettes, to minors.
C. The Tobacco Grant Program is administered by the Office of the Attorney General.
Since its inception in 2017, the Tobacco Grant Program has distributed approximately $212 million in grant funding through a competitive process.
D. On June 17, 2025, Community Development Department (CDD) received Council authorization to apply for the CA DOJ 2025/26 Tobacco Grant Program under resolution 2025-0175.
E. On June 20, 2025, CDD submitted a proposal which included a scope of work related to: retailer inspections, undercover purchases, and targeted education efforts for retailers and enfor cement officers . Grant funds will be used to support employee labor costs, purchase buy money, cover operational expenses such as fuel, and acquire surveillance technology capable of live monitoring, recording, and securely storing audio/video evidence.
F. On November 20, 2025, CDD received the award letter from the CA DOJ awarding the City a grant award in the amount of $884,021 under Award # DOJ -PROP56- 2025-26-1-043.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1.
Accept grant funding in an amount up to $884,021 from the CA DOJ for the 2025/26 Resolution January 13, 2026 Page 2
of 2
Tobacco Grant Program for the 36 -month grant project period of November 21, 2025, through June 30, 2029.
SECTION 2.
The City Manager or the City Manager’s designee is hereby authorized and directed, on behalf of the City, to execute the grant documents and to submit all documents including, without limitation, contracts, amendments, extensions, and payment requests as appropriate to accept the funds and comply with conditions of the grant.
SECTION 3.
The CA DOJ Tobacco Grant (G21009000) is hereby established with an active date of November 21, 2025.
SECTION 4.
The City Manager or the City Manager’s designee is authorized to establish the revenue and expenditure budgets in G2100900 0 in the amount of $884,021 in the Operating Grant Fund (Fund 2702).
SECTION 5.
Grant funds received hereunder shall not be used to supplant ongoing expenditures of the City.
Rob Bonta
A ttorney General
D IVISION OF OPERATIONS
OFFICE OF FISCAL SERVICES
GRANT SERVICES BRANCH
TOBACCO GRANT PROGRAM
P.O. Box 160187
Sacramento, CA 95816-0187
E-Mail Address: [email protected]
November 20, 2025
Michael Jasso, Assistant City Manager
Sacramento, City of
300 Richards Blvd, 3rd Floor
Sacramento, CA 95811
Re: Tobacco Grant Award Notification Fiscal Year 2025-26 (RFP: DOJ-PROP56-2025-26-1) Dear: Michael Jasso
Congratulations! On behalf of the California Department of Justice (DOJ), Tobacco Grant Program, I am pleased to inform you that your agency’s grant application for the fiscal year 2025-26 grant cycle has been approved for grant funds authorized under the California Healthcare, Research and Prevention Tobacco Tax Act of 2016. The total amount of your agency’s grant award is $884,021 under Award # DOJ-PROP56-2025-26-1-043.
The Tobacco Grant Program award process is highly competitive, and for the 2025-26 grant cycle, the Department received approximately $50 million in requests. As noted in the application materials, grant funding prioritized support for local retailer enforcement including prosecution and task force collaboration. Consequently, some awards were approved with modifications to align with these funding priorities and because of limited funds. Attached is a Summary of the Award and Budget Detail outlining the funding provided along with any modifications applied.
To accept the 2025-26 grant award, please complete and return a signed copy of your Letter of Intent (see template and instructions attached) by email within 15 calendar days of the date of this letter. This letter will affirm one of the following:
1. Your agency will seek a resolution from the governing body to accept the award (if your agency has a governing body)
2. Your agency has a governing body but does not require a resolution to accept the award, OR
3. No governing body exists and therefore no resolution is required.
Please email the signed Letter of Intent as noted above to [email protected] with the subject line including the name of your agency: “FY 25-26_Letter of
November 20, 2025
Intent_Sacramento, City of.” Upon receipt of this information, DOJ will provide your agency with additional documents for execution/use (e.g., Memorandum of Understanding, Governing Body Resolution template, Grantee Handbook, etc.). These documents will contain more information about the process for reimbursement and other important details. Activities for reimbursement under this grant may commence on or after the date of this letter, depending upon your selected start date.
Should you have any questions regarding this letter or the required follow up information, please email [email protected].
Sincerely,
JENNIFER IVERY JOHNSON
Manager, Grant Services Branch
For ROB BONTA
Attorney General
Attachments:
Letter of Intent
Summary of Award
Budget Detail
Tobacco Grant ProgramGrant Services Branch – Local AssistanceDivision of OperationsCity of Sacramento DOJ-PROP56-2025-26-1-043
MEMORANDUM OF UNDERSTANDINGPURPOSEThis Memorandum of Understanding (“MOU”) is entered into by the Department of Justice (“DOJ”) and the City of Sacramento (“Grantee”), for the purpose of disbursing grant funds to Grantee for reimbursement of expenditures in compliance with the California Code of Regulations and the Fiscal Year 2025-26 Grantee Handbook.Commencing January 1, 2023, the California Code of Regulations, Title 11, Division 1, Chapter 5: Department of Justice Tobacco Grant Program (“TGP Regulations”) shall govern the policies and procedures of the Tobacco Grant Program.The TGP Regulations, Request for Proposals, Grantee Handbook (dated April 2025), and Summary of Award document are hereby incorporated by reference into this MOU. Grantee will expend funds for the purposes identified in the approved Summary of Award document. Reimbursements are to be funded under the California Healthcare, Research and Prevention Tobacco Tax Act of 2016, approved by the voters as Proposition 56.COST REIMBURSEMENTDOJ agrees to reimburse Grantee in arrears, for Grantee’s actual expenditures in performing the project or scope of work included in the approved Summary of Award document. Reimbursements for line items in the approved Budget Detail will be made upon receipt of invoices from Grantee and approval of the invoices by DOJ, in accordance with the reimbursement procedures set forth in the TGP Regulations and Grantee Handbook. BUDGET CONTINGENCY CLAUSEIt is mutually agreed, if the Budget Act of the current fiscal year and/or any subsequent years covered under the MOU does not appropriate sufficient funds, the MOU shall be of no further force and effect. In the event this situation occurs, DOJ shall have no liability to reimburse/pay any funds to Grantee, or to furnish any other considerations under this MOU. As well, Grantee shall not be obligated to continue performing the provisions of this MOU, for which the Grantee would have been reimbursed. If funding for any fiscal year is reduced or deleted in the Budget Act for purposes of this MOU, DOJ shall have the option to either cancel this MOU with no liability occurring to DOJ or offer an addendum to the Grantee to reflect the reduced amount.
City of Sacramento DOJ-PROP56-2025-26-1-043
PROJECT BREACH-TERMINATIONFailure of a Grantee to comply with this MOU or the TGP Regulations shall be treated by DOJ as a breach of contract. If an act of noncompliance occurs, DOJ may take actions described within the TGP Regulations, including termination. DOJ may terminate this MOU and be relieved of any obligation to disburse grant funds to Grantee should Grantee fail to perform the scope of work at the time and in the manner provided in this MOU. MISCELLANEOUS PROVISIONS Addendum – No addendum or variation of the terms of this MOU is valid unless made in writing and signed by the duly authorized representatives of the parties.Assignment – This MOU is not assignable by Grantee in whole or in part.Indemnification – Grantee agrees to indemnify and hold harmless DOJ, its officers, agents and employees from all claims, liabilities, or losses in connection with the performance of this MOU. Certifications – Grantee certifies that it does not receive funding from a manufacturer, distributor, or advertiser of Cigarettes or Tobacco Products. Grantee further certifies that grant funds will not supplant existing state or local funds dedicated for the same purpose. TERMSGrant Duration: 11/21/2025 – 6/30/2029 Award Amount Category of Expenditure Budget FY 2025-2026 Budget FY 2026-2027 BudgetFY 2027-2028 BudgetFY 2028-2029Personnel Services $181,497 $277,093 $283,375 $93,962Operating Expenses and Equipment$6,000 $0 $0 $0 Administrative Costs (Not to Exceed 5%)$9,374 $13,854 $14,168 $4,698 TOTAL AWARD AMOUNT $884,021The time limit for reimbursements against this award ends 6/30/2029. Requests for reimbursement received after 7/15/2029 cannot be considered by DOJ. GRANTEE CONTACT INFORMATION Peter Lemos, Code and Housing Enforcement Chief City of Sacramento300 Richards Blvd, 3rd Floor, Sacramento, CA 95811 916-808-8183 [email protected] AUTHORIZATION DOJ and Grantee, by their duly authorized officials, have executed this MOU on the respective dates indicated below. This MOU and any future addendums shall be e-mailed to City of Sacramento DOJ-PROP56-2025-26-1-043
[email protected], care of the Division of Operations, Local Assistance Unit, Tobacco Grant Program, and will become fully executed upon completion of signatures from all parties. GRANTEE AUTHORIZATIONS___________________________________ ___________________NAME: Peter LemosDateTitle: Code and Housing Enforcement ChiefAgency: City of Sacramento___________________________________ ___________________NAME: Tom PaceDateTitle: Community Development DirectorAgency: City of Sacramento___________________________________ ___________________NAME: Michael JassoDateTitle: Assistant City ManagerAgency: City of SacramentoApproved to Form: ___________________________________ ___________________NAME: Andre Martin DateTitle: Deputy City AttorneyAgency: City of SacramentoDOJ AUTHORIZATIONS______________________________ ___________________DOJ GRANT MANAGERDateDivision of OperationsCalifornia Department of Justice___________________________________ ___________________DOJ FISCAL DIRECTORDateDivision of OperationsCalifornia Department of Justice__________________________________ ___________________DOJ CHIEF OF OPERATIONSDateDivision of OperationsCalifornia Department of Justice 12/17/2025
12/19/2025
Tobacco Grant ProgramGRANT SERVICES BRANCH – LOCAL ASSISTANCEDIVISION OF OPERATIONS 11/19/2025 Page 1 of 4
TOBACCO GRANT SUMMARY OF AWARDDOJ-PROP56-2025-26-1-043This Summary of Award document will be used by the Tobacco Grant Program when determining whether an activity or expense claimed was approved for funding and is reimbursable. Activities other than those presented here may not be reimbursable. A Grant Modification may be necessary for material deviations. Please consult with your Grant Program Officer beforeengaging in any activity beyond this scope or if you have questions about the scope of the activities and budget allowability.By signing the Memorandum of Understanding, your agency agrees to the commitments outlined below and this document becomes part of the Grant Agreement.AWARD SUMMARYAward Amount: $884,021Requested Amount:$884,021Removed from Award:Youth Decoy costs shifted to Code Enforcement Officers line itemReduced Line Items:NoneOther Changes or Stipulations: Decoy-based operations NOT approved without law enforcement involvement.IMPORTANT PROVISIONS FOR ALL GRANTEESI.Enforcement Activitiesa.Authorized- If enforcement activities were proposed, onlyactivities that target retailers for illegal sales/marketing of tobacco products were approved. It is expected that the flavor ban will be enforced within one or more enforcement activities.b.Unauthorized- Community or school patrols, or other enforcement actions related to tobacco use and possession, are notpermitted.II.Educational Activitiesa.Authorized– Retailer and/or officer educational activities on tobacco laws and ordinances, if included, are authorized as noted below. 11/19/2025 Page 2 of 4
b. Unauthorized – School or community education efforts, including media campaigns, are not permitted as part of this award. All educational efforts should be directed to retailers and/or officers. III.Removed Personnel or Other Itemsa. If specific personnel or other items were removed and not funded, they cannot be reinstated during the grant term. IV. Reduced Line Items a. If a specific line item was reduced, the intention was to not fully fund it or the activities it represents. V.Mileage/Fuela. Budgets that include mileage or fuel were amended to include both together in one line item for flexibility and the type of backup documentation available. Mileage is limited to the state rate in effect at the time of travel. VI. Equipment a. All equipment items must be purchased during the first year of the project as noted on the Budget Detail. Their awarding is intended to support project goals and be used to support grant activities throughout the grant term. Please reference the Tobacco Grant Program Grantee Handbook for more information regarding allowable costs. GOALS AND ACTIVITIES Per year, 317 retailers will be inspected. Additional details regarding these inspections: o The City of Sacramento inspects all 317 licensed tobacco retailers annually. Trained Code Enforcement Officers verify compliance with state and local laws, including age restrictions, license display, signage, and flavored product bans. Underage decoy operations may be used to support enforcement. Violations are recorded in the City's database, with follow-up actions such as administrative penalties, notices of violation, or license referrals issued as appropriate. Re-inspections are conducted to ensure continued compliance and corrective action. Per year, 12 undercover buy operations will be conducted (other than minor decoy or shoulder tap). Per year, 36 retailers will be targeted through these operations. Additional details regarding these undercover operations:
11/19/2025 Page 3 of 4
o Undercover buys (not using minors as decoys) will target illegal tobacco sales using a systematic, legally sound approach. Retailers are selected randomly or based on complaints, past violations, tips, proximity to schools/parks, online sales, and safety. A dedicated team conducts covert operations with officer oversight, admin support, and immediate response to violations. Safety protocols include real-time monitoring, emergency procedures, and post-operation review. Follow-up includes citations, education, license actions, reporting, and SOP review. These efforts aim to reduce illegal access, especially in vulnerable communities. o Per year, 317 retailers will receive educational materials. Per year, 317 retailers will receive on-site education. Additional details regarding these retailer education activities: o The City of Sacramento Code Enforcement Division employs a proactive, education-focused strategy to promote retailer compliance with state and local tobacco laws. Grant funding will enhance outreach through twice-yearly site visits, during which staff provide STAKE Act decals, signage, and guidance on flavored product bans, licensing, and age restrictions. Retailers receive quarterly newsletters, printed and digital mailers, and access to a compliance website with up-to-date laws and permit requirements. In-person training offers a non-enforcement setting for questions and walkthroughs. Staff also provide training materials for store employees and operate the "Ask the Chief" portal for public and retailer inquiries. These tools aim to prevent violations and reduce youth tobacco access. Per year, 15 enforcement officers will receive education about tobacco laws and ordinances. Additional details regarding these officer education activities: o The City of Sacramento will conduct two annual training sessions for Code Enforcement officers covering state tobacco laws, local ordinances, and enforcement protocols. Topics include minor decoy operations, undercover buys, inspections, and violation handling. Training will feature legal updates from the City Attorney's Office, case studies, and scenario-based exercises to ensure consistency and officer safety. Refresher modules and new law briefings will be integrated into ongoing staff development. Attendance will be tracked and materials archived for future use and onboarding. The City has and intends to continue to cite and prosecute violators of state tobacco laws and Sacramento City ordinances. This includes but is not limited to representing the City on appeals for code violations with hearing officers, as well as initiating and defending against civil lawsuits pertaining to tobacco enforcement and regulation. 11/19/2025 Page 4 of 4
PARTNERING AGENCIES – NOT APPLICABLEPlease notify your Grant Program Officer of any proposed changes to partnering agencies, particularly if they are included within your budget.