HomeMy WebLinkAboutResolution No. 2026-40 | Resolution Modifying Hearing Officer's Decision | Adopted 06/15/2026
RESOLUTION NO. 2026-40
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY DENYING THE APPEAL OF THE
ADMINISTRATIVE HEARING OFFICER'S DECISION
REGARDING BUSINESS LICENSE NO. 16606725 AND
TOBACCO RETAILER'S PERMIT ISSUED TO THE ROCK
ZONE, LOCATED AT 1323 FIRST STREET, GILROY,
CALIFORNIA, ADOPTING THE FINDINGS OF THE
ADMINISTRATIVE HEARING OFFICER, AND
MODIFYING THE HEARING OFFICER’S DECISION TO
INCREASE THE PERIOD OF TOBACCO PRODUCT
RETAILING PROHIBITION AND SUSPENSION OF THE
TOBACCO RETAILER'S PERMIT FROM SIX (6) MONTHS
TO TWELVE (12) MONTHS
WHEREAS, Gilroy Municipal Code Section 13.45 authorizes the City to initiate proceedings to
suspend, revoke, or modify a business license where the Chief of Police determines that
violations of the Gilroy City Code or any other law have occurred in connection with the
operation of the business; and
WHEREAS, Chapter 13, Article VIII of the Gilroy Municipal Code regulates Tobacco Retailer
Permits and authorizes suspension, revocation, and enforcement actions to protect the
public health, safety, and welfare; and
WHEREAS, the City initiated administrative proceedings against The Rock Zone (the
“Licensee/Permittee”), located at 1323 First Street, Gilroy, California, concerning
Business License No. 16606725 and related Tobacco Retailer's Permit issued to Account
No. 16606725; and
WHEREAS, pursuant to Resolution No. 97-17, Administrative Hearing Officer Alan Seltzer
conducted evidentiary hearings on April 3, 2026, and April 17, 2026, received testimony
under oath, admitted documentary evidence, considered post-hearing submissions, and
thereafter issued a written Administrative Decision dated April 28, 2026; and
WHEREAS, the Administrative Hearing Officer found that substantial evidence existed
demonstrating violations involving tobacco products and business operations occurring at
the premises and further determined that administrative sanctions were warranted; and
WHEREAS, the Administrative Hearing Officer carefully considered the evidence and arguments
presented by both the City and the Licensee/Permittee, including arguments regarding the
legality of products, applicability of state law exemptions, evidentiary objections, and the
appropriate scope of administrative remedies; and
WHEREAS, the Administrative Hearing Officer determined that revocation of the business
license was not warranted and instead imposed a penalty as follows: “The Rock Zone’s
business license shall be modified so that it may not sell any “tobacco product” as that term
is defined in GMC Sec. 13.66 for six months from the effective date of this Decision. The
Rock Zone’s current Regulatory Permit similarly shall be modified to prohibit the sale of
tobacco products for the same period.”; and
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Resolution No. 2026-40
Appeal Hearing Decision – The Rock Zone
City Council Regular Meeting | June 15, 2026
Page 2 of 6
WHEREAS, the Licensee/Permittee timely appealed the Administrative Hearing Officer's
decision to the City Council pursuant to Resolution No. 97-17; and
WHEREAS, on June 1, 2026, the City Council conducted an appeal hearing pursuant to
Resolution No. 97-17, reviewed the administrative record, considered the Hearing Officer's
decision, considered the written appeal and arguments of the parties, and received oral
argument; and
WHEREAS, pursuant to Section VII of Resolution No. 97-17, the City Council may adopt, reject,
or modify the Hearing Officer's decision.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF
GILROY DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:
SECTION 1. RECITALS
The foregoing recitals are true and correct and are incorporated herein by this reference.
SECTION 2. FINDINGS REGARDING THE APPEAL.
The City Council finds that:
A. The administrative proceedings were conducted in accordance with Resolution No. 97-17
and afforded appellant due process, including notice, opportunity to present oral and
written testimony and evidence, representation by legal counsel, and the opportunity to
submit written and oral arguments.
B. The Administrative Hearing Officer thoroughly evaluated the evidence presented by both
parties and exercised independent judgment in rendering the Administrative Decision.
C. Substantial evidence exists within the administrative record supporting the findings and
conclusions reached by the Administrative Hearing Officer.
D. The Administrative Hearing Officer appropriately considered the appellant's defenses and
objections, including arguments regarding product classifications, alleged exemptions
under state law, evidentiary issues, and the propriety of administrative penalties.
SECTION 3. FINDINGS SUPPORTING MODIFICATION OF THE DECISION.
The City Council further finds that modification of the Administrative Hearing Officer's decision
is warranted as follows:
A. The administrative record reflects multiple enforcement actions occurring over an extended
period of time involving unlawful tobacco-related products and other violations identified
by law enforcement and regulatory agencies.
B. The evidence presented during the administrative proceedings demonstrated repeated
compliance concerns rather than an isolated incident.
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Resolution No. 2026-40
Appeal Hearing Decision – The Rock Zone
City Council Regular Meeting | June 15, 2026
Page 3 of 6
C. The sale or offering for sale of prohibited items, including controlled substances, for an
extended period of time and the offering for sale of flavored tobacco products in violation
of requirements of State law reflect a significant level of noncompliance with applicable
tobacco regulations.
D. Protection of the public health, safety, and welfare is a fundamental purpose of the City's
Tobacco Retailer Permit program, and a longer suspension period is necessary to promote
future compliance and deter similar conduct.
E. A twelve (12) month suspension more appropriately reflects the seriousness and duration
of the violations established in the administrative record while remaining proportionate to
the facts of this case.
F. The City Council recognizes that the Administrative Hearing Officer declined to revoke
the business license and instead fashioned a remedy allowing the business to continue
operating as a lawful non-tobacco retailer. The Council agrees with that determination and
finds that complete revocation of the business license is not necessary at this time.
G. However, with respect to the length of the modifications of the Business License and the
Tobacco Retailer's Permit, the City Council, after weighing all of the relevant factors
concludes that the modifications of the Business License and the Tobacco Retailer’s Permit
for a period of twelve (12) months more appropriately balances the City's interest in
protecting public health and enforcing tobacco regulations with the business's continued
ability to operate lawfully as a non-tobacco retail establishment.
SECTION 4. DENIAL OF APPEAL.
The appeal filed by The Rock Zone and Adel Ammari is hereby DENIED.
SECTION 5. ADOPTION OF HEARING OFFICER'S FINDINGS.
Except as expressly modified herein, the City Council adopts and incorporates the findings,
conclusions, and determinations contained in the Administrative Hearing Officer's April
28, 2026, Administrative Decision as though fully set forth herein.
SECTION 6. MODIFICATION OF ADMINISTRATIVE DECISION.
The Administrative Hearing Officer's decision is modified solely as follows:
A. The Business License No. 16606725 (Account No. 16606725) is modified to prohibit
selling any “tobacco product” as that term is defined in Gilroy City Code 13.66, at the
premises located at 1323 First Street, Gilroy, California, for a period of twelve (12) months
from the effective date of this resolution.
B. The Tobacco Retailer’s Permit (Regulatory Permit) issued to The Rock Zone ATML Inc
for Account No. 16606725 is hereby modified to be suspended for the same twelve (12)
month period from the effective date of this resolution. During the suspension period, said
Permit shall confer no authority to sell any tobacco product as defined in GMC § 13.66,
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Resolution No. 2026-40
Appeal Hearing Decision – The Rock Zone
City Council Regular Meeting | June 15, 2026
Page 4 of 6
and The Rock Zone ATML Inc shall not sell or offer for sale any such tobacco product at
the above-referenced premises.
C. During the aforementioned 12-month suspension period, The Rock Zone shall not engage
in the retail sale, offer for sale, display for sale, distribution, or furnishing of any tobacco
product, tobacco paraphernalia, electronic smoking device, nicotine product, or any other
product requiring a Tobacco Retailer's Permit under the Gilroy Municipal Code.
D. Nothing in this Resolution shall prohibit the continued operation of the business as a lawful
non-tobacco retailer, provided the business remains in compliance with all applicable
federal, state, and local laws and regulations.
E. Upon the expiration of the twelve (12) months, and provided that no further violations have
occurred, Business License No. 16606725 and the Tobacco Retailer’s Permit (Regulatory
Permit) shall automatically revert to their unmodified terms (if they are still in effect, and
have not expired or otherwise been canceled), authorizing the retail sale of tobacco
products in accordance with applicable law, provided the Licensee/Permittee has renewed
the Business License and the Tobacco Retailer’s Permit as required by Gilroy City Code.
F. The Licensee/Permittee shall, within five (5) business days of the effective date of this
resolution, remove or conspicuously cover all tobacco product displays, signage, and
advertising at the premises that may indicate the availability of tobacco products for
purchase. Failure to comply with the terms of this Order may result in further enforcement
action, including but not limited to revocation of Business License No. 16606725 and/or
the Tobacco Retailer's Permit.
SECTION 7. EFFECTIVE DATE
This Resolution shall become effective immediately upon adoption.
SECTION 8. IMPLEMENTATION
The City Administrator, City Attorney, Finance Director, Police Chief, and all other appropriate
City officials are authorized and directed to take all actions necessary to implement this resolution.
PASSED, APPROVED, AND ADOPTED this 15th day of June 2026, by the following roll call
vote:
AYES: COUNCIL MEMBERS: BRACCO, CLINE, FUGAZZI,
MARQUES, RAMIREZ, BOZZO
NOES: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILTON
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Resolution No. 2026-40
Appeal Hearing Decision – The Rock Zone
City Council Regular Meeting | June 15, 2026
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APPROVED:
________________________________
Greg Bozzo, Mayor
ATTEST:
Kim Mancera, City Clerk
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Resolution No. 2026-40
Appeal Hearing Decision – The Rock Zone
City Council Regular Meeting | June 15, 2026
Page 6 of 6
CERTIFICATE OF THE CLERK
I, KIM MANCERA, City Clerk of the City of Gilroy, do hereby certify that the attached
Resolution No. 2026-40 is an original resolution, or true and correct copy of a City Resolution,
duly adopted by the Council of the City of Gilroy at a Regular Meeting held Monday, June 15,
2026, with a quorum present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this Wednesday, June 17, 2026.
____________________________________
Kim Mancera
City Clerk of the City of Gilroy
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