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Councilmember Pentin inquired regarding the State program for diversion. Assistant City Attorney Seto stated the State program does not have fines or community service, it is related to distribution rather than possession. Mayor Thorne clarified there would not be restrictions on menthol cigarettes in tobacco stores. Assistant City Attorney Seto noted other communities have tobacco stores, however they are more limited in what they can sell. They do not prohibit menthol cigarettes. Mayor Thorne expressed concern that the proposed restrictions would be in conflict with State laws. Assistant City Attorney Seto reported the proposed SB 793 restricts the sale of flavored tobacco products however it did not pass in the last legislative session. The State's restrictions would preempt the City's recommendation and this would be the first preliminary local step. In response to Councilmember Narum, Assistant City Attorney Seto stated the City Manager would prepare the administrative process and the City Council would always have discretion over the comprehensive program. Councilmember Narum spoke regarding non -conforming uses. Assistant City Attorney Seto stated the use runs with the land and if there is an abandonment for 90 days, the City would not allow for the use to reopen. The sites will be able to conduct maintenance and this would not be considered an abandonment. Councilmember Narum spoke regarding wholesalers and distributors. Assistant City Attorney Seto stated they are exempt as they are not making direct retail sales. They are allowed to continue to sell to other wholesalers and distributors, even if there was an outright ban on these type of products. Mayor Thorne clarified the City has no authority to restrict the tobacco industry. Councilmember Brown referred to an email submitted that proposed ordinance license suspension or revocation or fines. Assistant City Attorney Seto stated the proposed amendments would delegate authority to the City Manager to impose penalties, including fines, suspensions, and revocations. City Manager Fialho stated the intent is to mirror Dublin and Livermore in regard to warnings, fines, and revocation. This would be the intent of the administrative policy. Councilmember Brown disagreed with the affluent parents concept. Assistant City Attorney Seto reported low-priced items serve as an entry level price point for youth and does make it more available at lower prices. Less availability of lower price point items would mean less exposure to youth. Councilmember Brown stated she does not see a finite ending to the restrictions, including the 1000- foot buffer and grandfathered, tobacco retailers and tobacco stores. Assistant City Attorney Seto stated that as long as they are selling tobacco legally, the stores are in conformance. Councilmember Testa inquired as to the recent sting operations. City Manager Fialho stated the sting operation was a combination of both retailers and tobacco stores. The second sting operation involved 2 of the 4 tobacco stores, which were the same 2 who had failed previously. Mayor Thorne opened the public hearing. Caitlan Dainas expressed her concerns regarding retailers who are targeting children for their tobacco related products. She provided several examples and spoke regarding the health impacts of tobacco and vaping by youth. City Council Minutes Page 9 of 14 February 18, 2020