Garden Grove City Council
February 14, 2023

SCHEDULE IV

CITY OF GARDEN GROVE

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting)
(In Thousands)
2013 2014 2015
Revenues:

Taxes 77,231$ 80,010$ 81,823$
Licenses and permits 1,128 1,405 1,139 Fines, forfeitures and penalties 2,960 2,755 2,629 Investment earnings 1,800 1,780 1,546 Charges for current services 10,084 10,267 9,528 From other agencies 13,324 12,857 15,945 Other revenues 3,332 1,991 2,079
Total revenues 109,859 111,065 114,689
Expenditures
Current:

Fire 20,447 20,143 21,672
Police 45,478 47,027 49,389
Traffic safety 2,595 3,105 3,102
Public right of way 5,730 5,662 6,886 Drainage - - -
Community buildings 3,082 3,086 3,408 Community services 4,453 4,562 4,793 Economic development - - 1,944 Parks and greenbelts 1,927 2,019 2,247 Community planning and
development 7,761 8,156 7,359
Municipal support 6,797 7,215 7,600 Capital outlay 10,366 14,956 9,032
Debt service:

Principal retirement 1,939 2,036 1,937 Interest 1,383 1,280 1,199
Total expenditures 111,958 119,247 120,568
Excess (deficiency) of revenues
over (under) expenditures (2,099) (8,182) (5,879) Other financing sources (uses):

Transfers in 1,239 3,232 7,761
Transfers out (1,139) (1,181) (3,558) Issuance of debt - - -
Proceeds of debt - - -
Gain/(Loss) on sale of capital
assets - 1,307 22
Contribution to Housing
Authority - - -
Extraordinary Gain/(Loss) - - - Payment to bond escrow agent - - - Total other financing
sources (uses) 100 3,358 4,225
Special Item
Net change in fund balances (1,999)$ (4,824)$ (1,654)$ Debt service as a percentage of
noncapital expenditures 3.3% 3.2% 2.8%
Source: Finance Department, City of Garden Grove
Fiscal Year
154

2016 2017 2018 2019 2020 2021 2022
92,268$ 98,042$ 103,090$ 114,078$ 119,853$ 118,044$ 150,869$ 1,554 1,687 2,005 2,645 2,647 2,419 2,763 2,222 2,622 3,134 2,850 3,157 2,859 2,546 1,285 1,275 1,846 4,344 6,402 793 (4,594) 9,943 10,041 11,945 15,122 11,180 11,670 13,301 15,991 11,640 12,047 13,599 17,884 47,729 45,322 11,071 3,847 4,193 3,940 4,386 3,003 3,494 134,334 129,154 138,260 156,578 165,509 186,517 213,701 23,195 23,707 25,067 24,483 27,975 28,470 26,975 51,942 53,168 56,128 56,282 64,770 68,032 71,121 2,959 4,215 3,925 4,282 4,471 4,997 5,663 7,515 7,257 7,197 7,107 7,155 17,543 19,057 - - 66 - - - - 3,317 3,185 3,421 3,007 2,781 3,164 3,713 5,470 4,852 4,687 4,855 5,333 4,839 5,767 2,333 2,757 3,099 3,212 2,950 2,609 3,592 2,217 1,939 2,325 2,300 2,057 2,607 2,952

7,229 6,497 7,982 7,124 8,130 10,588 11,095 8,012 7,903 7,626 9,353 8,467 8,684 9,011 7,371 6,754 10,938 13,635 14,021 - - 2,097 3,342 573 580 495 494 592 939 1,184 1,087 1,064 1,137 1,112 1,094 124,596 126,760 134,121 137,284 149,742 153,139 160,632 9,738 2,394 4,139 19,294 15,767 33,378 53,069 11,783 1,396 2,826 1,403 4,380 1,346 2,275 (11,683) (1,296) (1,253) (1,303) (7,357) (629) (1,448) 25,962 - - - - - - - - - - - - - 1,735 4,965 - - 874 - - - - - - - - - - - - - - - - (17,462) - - - - - - 10,335 5,065 1,573 100 (2,103) 717 827 30,029 - -
20,073$ 7,459$ 35,741$ 19,394$ 13,664$ 34,095$ 53,896$

2.6% 3.8% 1.3% 1.3% 1.2% 1.1% 1.1%

Fiscal Year
155

Business Transient Motor
Fiscal Sales Property Franchise Operation Occupancy Vehicle Year Tax Tax Tax Tax Tax Tax Total
2013 19,804,727 35,145,142 2,506,722 4,809,344 14,447,817 90,025 76,803,777 2014 20,285,111 35,286,424 2,483,878 4,953,958 16,442,817 74,506 79,526,694 2015 19,251,431 36,972,309 2,532,706 5,228,239 17,216,510 71,970 81,273,165

2016 22,051,778 40,574,176 2,577,292 5,636,389 20,897,283 70,518 91,807,436 2017 21,792,872 42,113,373 2,532,462 5,781,098 25,121,419 79,429 97,420,653 2018 20,736,558 47,032,917 2,408,395 6,251,994 25,982,696 92,789 102,505,349 2019 29,371,450 49,355,823 2,404,867 5,945,451 26,285,461 84,911 113,447,963 2020 43,122,113 50,764,849 2,414,897 5,595,421 18,277,467 138,627 120,313,374 2021 49,305,114 55,004,385 2,331,476 3,534,201 7,136,525 128,205 117,439,906 2022 59,702,605 59,508,746 2,538,622 5,489,432 24,508,840 199,254 151,947,499 Source: Finance Department, City of Garden Grove

SCHEDULE V

CITY OF GARDEN GROVE

GENERAL GOVERNMENT MAJOR TAX REVENUES BY SOURCE

LAST TEN FISCAL YEARS
156

City Successor Agency
Fiscal Year Taxable Taxable Total
Ended Assessed Assessed Direct Tax
June 30 Secured Unsecured Value Secured 1 Unsecured 1 Value 1 Rate
2013 9,580,743 303,685 9,884,428 2,720,784 271,370 2,992,154 1.074% 2014 9,933,103 308,944 10,242,047 2,785,756 295,259 3,081,015 1.140% 2015 10,538,784 356,435 10,895,219 2,897,658 328,394 3,226,052 1.145% 2016 10,568,876 234,280 10,803,156 3,070,910 317,449 3,388,359 1.151% 2017 12,226,724 364,776 12,591,500 3,579,711 363,489 3,943,200 1.150% 2018 12,873,943 335,785 13,209,728 3,797,471 366,576 4,164,047 1.189% 2019 12,373,687 263,636 12,637,323 3,801,697 361,772 4,163,469 1.183% 2020 13,000,870 232,485 13,233,355 3,913,862 391,616 4,305,478 1.184% 2021 14,167,631 252,597 14,420,228 4,270,427 468,777 4,739,204 1.185% 2022 15,071,294 278,284 15,349,578 4,359,480 446,933 4,806,413 1.189% 1 The Redevelopment Agency was dissolved in February 2012.

The Successor Agency was created to close out the Redevelopment Agency.

Source: Orange County Assessor's Office/HdL Coren & Cone

NOTE:

In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

SCHEDULE VI

CITY OF GARDEN GROVE

ASSESSED VALUE AND ESTIMATED ACTUAL VALUES OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
(In Thousands)
157

Metropolitan Sanitation
Fiscal Basic City Water Orange and School
Year Levy Paramedic District County Water Services Other Total 2013 1.0000 0.07000 0.00350 - - - - 1.07350 2014 1.0000 0.07000 0.00350 - - 0.06602 - 1.13952 2015 1.0000 0.07000 0.00350 - - 0.07163 - 1.14513 2016 1.0000 0.07000 0.00350 - - 0.07748 - 1.15098 2017 1.0000 0.07000 0.00350 - - 0.07603 - 1.14953 2018 1.0000 0.08000 0.00350 - - 0.10599 - 1.18949 2019 1.0000 0.08000 0.00350 - - 0.09900 - 1.18250 2020 1.0000 0.08000 0.00350 - - 0.10022 - 1.18372 2021 1.0000 0.08000 0.00350 - - 0.10137 - 1.18487 2022 1.0000 0.08000 0.00350 - - 0.10527 - 1.18877 Section 135.

Source: Orange County Tax Rates Book
Property tax in California is levied in accordance with Article 13A of the State Constitution at $1 per $100 county-wide assessed valuations plus other voter approved debt. Rates shown above are $100 of assessed valuation. The one percent is allocated pursuant to State law to the appropriate units of local government.

SCHEDULE VII

CITY OF GARDEN GROVE

PROPERTY TAX RATES

DIRECT AND OVERLAPPING GOVERNMENTS

LAST TEN FISCAL YEARS
Assessed values are expressed as 100% of "full value" as prescribed by California Revenue and Taxation Code 158

Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
GWGG LLC 243,436,738$ 1.25%
Investel Harbor Resorts LLC 133,529,116 0.68%
Landmark Hotel LLC 85,973,917 0.44%
Rexford Industrial Realty LP 78,781,333 0.40%
House Foods Holding USA INC 35,534,706 0.18%
TNA Distributions LLC 60,311,809 0.31%
SPS Techonolgies LLC 2,808,874 0.01%
New Age Brookhurst LLC 56,728,104 0.29%
Park Grove Fee Owner LLC 54,909,472 0.28%
Khanna Enterprises Limited 51,000,940 0.26%
Chatham Rigg LLC 33,248,490 0.26%
Landmark Marriott Suites 96,590,256 0.76%
American Lodging 55,212,639 0.43%
Newage Garden Grove 41,754,998 0.33%
Car Noa GGT 35,411,511 0.28%
Ohi Resort Hotels 40,196,781 0.31%
Walton CWCA Garden Grove 54,378,992 0.43%
Swedlow Inc. 25,280,557 0.20%
MPT of Garden Grove Hospital 25,128,544 0.20%
BB Promenade 25,571,348 0.20%
803,015,009$ 4.10% 432,774,116$ 3.40%
Source: Hdl Coren & Cone The City of Garden Grove Top Ten Property Taxpayers

SCHEDULE VIII

CITY OF GARDEN GROVE

PRINCIPAL PROPERTY TAX PAYERS

CURRENT YEAR AND TEN YEARS AGO
2022 2012
159

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City Percent Ratio of Ratio of
Tax of Total Tax Delinquent
Rate Total Current Current Delinquent Total Collections Outstanding Taxes Fiscal (Per Tax Tax Taxes Tax Tax to Total Delinquent to Total Year $100) Levied Collections Collected Collections Collections Tax Levy Taxes Tax Levy 2013 0.0030 19,080,983 18,555,697 97.2 339,959 18,895,656 99.0 264,446 1.4% 2014 0.0030 20,112,895 19,256,287 95.7 281,184 19,537,471 97.1 231,857 1.2% 2015 0.0025 21,411,687 20,704,013 96.7 237,945 20,941,958 97.8 230,751 1.1% 2016 0.0025 22,611,366 21,721,987 96.1 213,997 21,935,984 97.0 517,198 2.3% 2017 0.0025 23,155,878 22,914,391 99.0 206,984 23,121,375 99.9 326,133 1.4% 2018 0.0025 26,376,092 25,752,153 97.6 174,164 25,926,316 98.3 134,739 0.5% 2019 0.0025 26,866,637 26,606,288 99.0 202,200 26,808,488 99.8 176,785 0.7% 2020 0.0025 28,019,537 27,164,413 96.9 567,147 27,731,560 99.0 248,420 0.9% 2021 0.0025 30,281,268 26,169,198 86.4 3,616,591 29,785,789 98.4 197,557 0.7% 2022 0.0025 31,282,250 30,586,260 97.8 305,759 30,892,019 98.8 220,514 0.7% Source: Orange County Property Tax Ledger
Finance Department, City of Garden Grove

SCHEDULE IX

CITY OF GARDEN GROVE

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
In implementing Article XIIIa of the State Constitution, the Revenue and Taxation Code provides for a single Basic Tax Rate Levy for County/City/School/Special Districts and other rates necessary to retire bonded and other indebtedness. 160

Fiscal Year Certificates Lease Tax Total
Ended of Participation Revenue RDA 2008 Allocation Capital Governmental June 30 2002 1 Bonds 2 Bonds 3
Bonds 4 Loans 5 6 Leases 7
Activities
2013 18,410,000 - - - 6,345,613 1,371,910 26,127,523 2014 17,830,000 - - - 5,276,879 817,516 23,924,395 2015 17,210,000 - - - 4,128,913 812,176 22,151,089 2016 - 25,568,492 - - 2,895,399 546,422 29,010,313 2017 - 25,104,126 - - 69,826 622,676 25,796,628 2018 - 24,624,760 - - 23,732 589,293 25,237,785 2019 - 24,120,394 - - - 373,317 24,493,711 2020 - 23,601,028 - - - 229,928 23,830,956 2021 - 23,056,662 - - - 113,963 23,170,625 2022 - 22,487,297 - - - 167,990 22,655,287 1 2
3 4
5 6
7 8
9 10
11 Source: Finance Department, City of Garden Grove

SCHEDULE X

CITY OF GARDEN GROVE

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
Governmental Activities
The City refunded the 2002 COP in 2015 with the 2015A Lease Revenue Bonds and upsized with additional issuance of approximately $8,500,000.

The former Redevelopment Agency entered into a subordinate note purchase agreement in the amount of $2,015,000 in June 2008 to refund a note issued to Katella Cottages. After dissolution, this liability is the responsibility of the State of California. Since dissolution in February 2012, the RDA 2008 Bonds (above) no longer report the Katella Cottages Loan.

The City refunded the $52,325,000 tax allocation bonds in 2003.

The former Redevelopment Agency borrowed $32,000,000 from Union Bank in 2008. After dissolution this liability is the responsibility of the State of California. Since dissolution in February 2012, Loans (above) no longer report the Union Bank loan.

The Housing Authority refunded the $9,010,000 HUD Section 108 loan, of which $7,660,000 borrowed from HUD in 2008 was paid off in fiscal year 2015-2016.

The City entered into various capital leases for energy retrofitting, mail machines, copiers, and telephones.

The City issued $16,625,000 Water Revenue Bond in 2010.

The City issued $21,845,000 Sewer COP in 2006; and refunded the 2006 Sewer COPs in 2017. 1993 COP was issued to finance acquisition of real property by the Garden Grove Housing Authority.

These ratios are calculated using personal income and population for the prior calendar year. 161

Water Sewer Total Total Percentage Debt
Revenue Revenue Certificates of Business-type Primary of Personal Per Bonds 8 COP 9 Participation 10
Activities Government Income 11 Capita 11
26,826,738 20,298,745 - 47,125,483 73,253,006 0.16% 423 25,382,945 19,769,567 - 45,152,512 69,076,907 0.15% 397 23,884,150 19,220,388 - 43,104,538 65,255,627 0.13% 373 20,775,000 18,365,000 - 39,140,000 68,150,313 0.14% 384 19,571,107 16,740,627 - 36,311,734 62,108,362 0.12% 352 18,039,382 16,148,171 - 34,187,553 59,425,338 0.11% 336 16,381,152 15,535,716 - 31,916,868 56,410,579 0.10% 322 14,667,922 14,908,260 - 29,576,182 53,407,138 0.09% 306 29,697,566 14,406,843 - 44,104,409 67,275,034 0.11% 390 28,342,104 13,558,347 - 41,900,451 64,555,738 0.10% 379 Business-type Activities
162

SCHEDULE XI

CITY OF GARDEN GROVE
Fiscal Year Lease Tax Percent of
Ended Certificates of Revenue Allocation Assessed Per
June 30 Participation Bonds Bonds Total Value 1
Capita
2013 18,410 - - 18,410 0.14% 106 2014 17,830 - - 17,830 0.13% 102 2015 17,210 - - 17,210 0.12% 98 2016 - 25,568 - 25,568 0.18% 144 2017 - 25,104 - 25,104 0.15% 142 2018 - 24,625 - 24,625 0.14% 139 2019 - 24,120 - 24,120 0.14% 138 2020 - 23,601 - 23,601 0.13% 135 2021 - 23,057 - 23,057 0.12% 134 2022 - 22,487 - 22,487 0.11% 132

Source: Finance Department, City of Garden Grove
1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California.

RATIOS OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS
(In Thousands, except Per Capita)
Outstanding General Bonded Debt
General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none).
163

SCHEDULE XII

CITY OF GARDEN GROVE
2021-22 Assessed Valuation: 19,305,133,053
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2022 % Applicable (1) Debt 6/30/22 Metropolitan Water District 20,175,000 0.569 114,796 Coast Community College District 945,799,424 6.251 59,121,922 North Orange County Joint Community College District 209,339,039 2.294 4,802,238 Rancho Santiago Community College District 196,772,727 6.482 12,754,808 Rancho Santiago Community College District School Facilities Improvement District No. 1 154,720,000 11.112 17,192,486 Garden Grove Unified School District 532,420,000 58.023 308,926,057 Orange Unified School District 277,865,000 1.220 3,389,953 Anaheim Union High School District 256,268,955 0.077 197,327 Huntington Beach Union High School District 163,654,998 1.285 2,102,967 Anaheim School District 253,610,063 0.096 243,466 Magnolia School District 19,498,305 0.222 43,286 Westminster School District 125,314,596 7.254 9,090,321 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 417,979,627
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Orange County General Fund Obligations 376,780,000 2.832 10,670,410 Orange County Pension Obligation Bonds 521,784,000 2.832 14,776,923 Orange County Board of Education General Fund Obligations 11,620,000 2.832 329,078 North Orange Regional Occupation Program Certificates of Participation 8,200,000 0.028 2,296 Coast Community College District General Fund Obligations 1,865,000 6.251 116,581 Coast Community College District Pension Obligation Bonds 1,825,000 6.251 114,081 Orange Unified School District Certificates of Participation 17,195,278 1.220 209,782 Orange Unified School District Benefit Obligations 60,835,000 1.220 742,187 Anaheim Union High School District Certificates of Participation 30,670,000 0.077 23,616 Huntington Beach Union High School District Certificates of Participation 58,406,090 1.285 750,518 Magnolia School District General Fund Obligations 13,010,307 0.222 28,883 Westminster School District Certificates of Participation 29,660,000 7.254 2,151,536 City of Garden Grove General Fund Obligations 22,655,287 100.000 22,655,287 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 52,571,178 OVERLAPPING TAX INCREMENT DEBT (Successor Agencies): 52,590,000 2.174 - 100.000 52,571,178 TOTAL DIRECT DEBT 22,655,287
TOTAL OVERLAPPING DEBT 499,712,693
COMBINED TOTAL DEBT 520,967,693 (2)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.

Ratios to 2021-22 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 2.17%
1 Total Direct Debt
22,655,287

0.12%
2 Combined Total Debt 2.70%
Ratios to Redevelopment Successor Agencies Incremental Valuation 4,372,730,035 Total Overlapping Tax Increment Debt 1.19%

Source: California Municipal Statistics, Inc. / MuniServices, LLC

CITY OF GARDEN GROVE

DIRECT AND OVERLAPPING BONDS AND DEBT
JUNE 30, 2022
164

SCHEDULE XIII

CITY OF GARDEN GROVE

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
Fiscal Year
2013 1 2014 1 2015 2016
Assessed valuation 9,884,428$ 10,242,047$ 10,895,219$ 10,803,156$ Conversion percentage 25% 25% 25% 25%
Adjusted assessed valuation 2,471,107 2,560,512 2,723,805 2,700,789 Debt limit percentage 15% 15% 15% 15%
Debt limit 370,666 384,077 408,571 405,118 Total net debt applicable to limit:

General obligation bonds - - - - Legal debt margin 370,666$ 384,077$ 408,571$ 405,118$ Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0%
1 Source: Finance Department, City of Garden Grove
Orange County Tax Assessor's Office
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.

However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state. 165

Fiscal Year
2017 2018 2019 2020 2021 2022
12,591,500$ 13,209,728$ 12,637,323$ 13,233,355$ 14,420,228$ 15,349,578$ 25% 25% 25% 25% 25% 25%
3,147,875 3,302,432 3,159,331 3,308,339 3,605,057 3,837,395 15% 15% 15% 15% 15% 15%
472,181 495,365 473,900 496,251 540,759 575,609 - - - - - - 472,181$ 495,365$ 473,900$ 496,251$ 540,759$ 575,609$

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
166

Resources
Fiscal Gross Available for
Year Revenue Expenses 1
Debt Service Principal Interest Total Coverage
2013 33,933,081 22,848,625 11,084,456 1,320,000 1,340,727 2,660,727 4.17 2014 35,721,417 22,876,255 12,845,162 1,375,000 1,286,725 2,661,725 4.83 2015 33,573,575 25,146,241 8,427,334 1,430,000 1,225,677 2,655,677 3.17 2016 29,519,804 25,781,906 3,737,898 1,490,000 1,165,202 2,655,202 1.41

2017 32,345,481 26,404,580 5,940,901 1,515,000 861,491 2,376,491 2.50 2018 35,946,867 30,301,866 5,645,001 1,570,000 817,465 2,387,465 2.36 2019 37,832,009 28,891,265 8,940,744 1,600,000 775,290 2,375,290 3.76 2020 39,490,046 31,574,927 7,915,119 1,655,000 724,740 2,379,740 3.33 2021 40,621,520 31,439,166 9,182,354 1,705,000 899,621 2,604,621 3.53 2022 43,256,322 31,628,164 11,628,158 955,000 894,825 1,849,825 6.29 Source: Finance Department, City of Garden Grove
1 2
Debt Service Requirement

SCHEDULE XIV

CITY OF GARDEN GROVE

PLEDGED-REVENUE COVERAGE

LAST TEN FISCAL YEARS
Water Revenue Bonds
In FY 16/17 the City refunded 2006 Sewer COP with the issuance of the Garden Grove Sanity District, Revenue Refunding bonds, Series 2017.

The City entered into a sewer revenue bond agreement on April 1, 2006; the first year's interest was prorated from bond commencement. The debt amortization started in FY09-10 with an annual principal repayment on June 15.

Total operating expense less depreciation and amortization. 167

Resources
Fiscal Gross Available for
Year Revenue Expenses Debt Service Principal 2 Interest 2 Total Coverage
2013 10,302,890 3,645,873 6,657,017 495,000 968,341 1,463,341 4.55 2014 10,361,393 3,264,411 7,096,982 515,000 948,541 1,463,541 4.85 2015 10,242,532 3,814,961 6,427,571 535,000 927,941 1,462,941 4.39 2016 10,521,214 3,880,996 6,640,218 560,000 906,541 1,466,541 4.53

2017 10,356,150 4,424,966 5,931,184 580,000 884,141 1,464,141 4.05 2018 10,641,504 5,009,287 5,632,217 520,000 676,575 1,196,575 4.71 2019 11,951,932 5,152,423 6,799,509 540,000 660,975 1,200,975 5.66 2020 12,673,629 4,993,491 7,680,138 555,000 639,375 1,194,375 6.43 2021 10,868,065 4,113,918 6,754,147 590,000 611,625 1,201,625 5.62 2022 12,025,031 5,958,254 6,066,777 615,000 582,125 1,197,125 5.07 (Continued)
Sewer Revenue Bond
Debt Service Requirement
168

SCHEDULE XIV

CITY OF GARDEN GROVE
PLEDGED-REVENUE COVERAGE (Continued)

LAST TEN FISCAL YEARS
Fiscal Tax
Year Increment 1
Principal Interest Total Coverage
2013 20,003,696 2,020,000 2,320,413 4,340,413 4.61 2014 20,205,156 2,105,000 2,232,756 4,337,756 4.66 2015 20,526,084 2,195,000 2,130,406 4,325,406 4.75 2016 15,837,862 2,360,000 1,526,300 3,886,300 4.08 2017 18,484,197 2,430,000 1,454,450 3,884,450 4.76 2018 17,693,119 2,505,000 1,380,425 3,885,425 4.55 2019 17,445,206 2,380,000 1,295,250 3,675,250 4.75 2020 18,868,786 2,685,000 1,193,950 3,878,950 4.86 2021 11,170,386 2,795,000 1,084,350 3,879,350 2.88 2022 3,301,040 2,905,000 514,225 3,419,225 0.97 Source: Finance Department, City of Garden Grove

2014 Tax Allocation Refunding Bonds
Debt Service Requirement
1 Due to the dissolution of the Redevelopment Agency in February 2012, the Tax Increment is now deposited in the City of Garden Grove RPTTF project area. 169

SCHEDULE XIV

CITY OF GARDEN GROVE
PLEDGED-REVENUE COVERAGE (Continued)

LAST TEN FISCAL YEARS
Fiscal Tax
Year Increment 1
Principal Interest Total Coverage
2012 -
2013 -
2014 -
2015 -
2016 -
2017 18,484,197 1,716,504 1,716,504 10.77
2018 17,693,119 1,652,250 1,652,250 10.71
2019 17,445,206 1,652,250 1,652,250 10.56
2020 18,868,786 1,652,250 1,652,250 11.42
2021 11,170,386 1,900,000 1,614,250 3,514,250 3.18 2022 3,301,040 1,975,000 1,536,750 3,511,750 0.94 Source: Finance Department, City of Garden Grove

2016 Tax Allocation Bonds
Debt Service Requirement
1 Due to the dissolution of the Redevelopment Agency in February 2012, the Tax Increment is now deposited in the City of Garden Grove RPTTF project area. 170

Per
Personal Capita
Fiscal Income Personal Unemployment
Year Population (in thousands) Income Rate
2013 173,075 4,696,862 27,205 7.8% 2014 173,953 4,747,258 27,429 6.5% 2015 174,774 4,924,023 28,307 4.2% 2016 177,303 4,999,605 28,606 4.4% 2017 176,277 5,087,579 28,694 4.8% 2018 176,896 5,243,712 29,747 3.4% 2019 175,155 5,490,131 31,344 3.3% 2020 174,801 5,763,401 32,971 14.9% 2021 172,476 5,972,287 34,627 7.7% 2022 170,526 6,275,992 36,804 3.6% Source: State Employment Development Department
California Department of Finance
Center for Demographic Research / Fullerton.edu / Ycharts.com

SCHEDULE XV

CITY OF GARDEN GROVE

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
171

SCHEDULE XVI

CITY OF GARDEN GROVE

PRINCIPAL EMPLOYERS

CURRENT YEAR AND TEN YEARS AGO
Percent of Percent of
Number of Total Number of Total
Employer Employees Employment Employees Employment
Great Wolf Lodge Southern California 700 0.82%
Air Industries Company 625 0.73% 465 0.60%
Garden Grove Hospital Medical Center 516 0.61%
Hyatt Regency Orange County 424 0.50% 350 0.45%
GKN Aerospace Transparency Systems Inc 409 0.48% 331 0.43% Safran Cabin Inc 350 0.41%
Costco #126 323 0.38% 265 0.34%
Full Clip 310 0.36%
Walmart #4171 272 0.32%
Saint Gobain Performance Plastics Corp. 226 0.27%
Saint Gobain Performance Plastics 363 0.47%
Prime Healthcare Services 516 0.67%
Driessen Aircraft Interior Systems 370 0.48%
Office Max Inc. 360 0.47%
Crystal Cathedral
C&D Zodiac 286 0.37%
NBTY Acquisition, LLC 298 0.39%

Total employment as used above represents the total employment of all employers located within City limits.

Source: Business Tax Division, City of Garden Grove
2022 2012
172

Department 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 City Manager 9 9 9 10 29 29 30 35 33 33 Community Development 58 58 58 53 37 37 35 37 37 31 Community Services 156 157 151 147 146 153 157 116 106 97 Economic Development - - - - - - - - - - Finance 39 40 40 41 38 38 37 36 33 31 Fire 107 109 111 111 106 106 103 - * - * - * Information Technology 20 19 19 19 20 20 20 20 18 17 Personnel 9 9 9 10 11 11 12 12 11 11 Police 275 268 273 272 289 293 263 282 281 260 Public Works 194 195 194 196 198 198 186 184 176 150 Total 867 864 864 859 874 885 843 722 695 630 Full time employees 621 623 633 632 640 641 642 560 538 510 Part time employees 246 241 231 227 234 244 201 162 157 120 Source: Budget Division, City of Garden Grove
* On August 16, 2019 Garden Grove Fire Department transitioned to the Orange County Fire Authority (OCFA).

SCHEDULE XVII

CITY OF GARDEN GROVE

FULL-TIME AND PART-TIME CITY EMPLOYEES

BY DEPARTMENT

LAST TEN FISCAL YEARS
173

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Police:

Arrests Report 6,774 6,423 6,478 5,468 6,358 7,476 6,112 5,436 4,439 4,921 Traffic citations issued 13,815 10,903 9,604 9,890 9,114 11,114 8,598 7,403 3,921 6,264 Fire:

Number of emergency calls 26,739 26,785 26,785 14,627 15,134 15,297 15,142 13,092 * 13,557 * 14,936 * Public Right-of-Way:

Parking citations issued 24,571 25,919 28,017 25,500 27,127 33,797 34,508 28,430 45,931 35,746 Permits issued 406 501 605 546 482 566 563 560 700 757
Community Services:

Number of recreation classes 1,987 2,016 2,416 1,918 1,947 1,701 2,057 1,932 977 1,038 Housing vouchers 2,337 2,337 2,337 2,337 2,337 2,337 2,337 2,337 2,337 2,337 Community Planning and Development
Building permits issued 2,427 2,808 2,041 2,259 2,233 3,066 3,986 3,954 4,723 5,133 Water:

Number of accounts 34,206 33,807 33,834 33,870 33,892 33,893 33,911 34,054 34,150 34,292 Average daily consumption 21,324 22,024 20,391 17,563 17,946 20,249 18,298 18,038 18,669 17,815 (thousands of gallons)
Solid Waste Disposal:

Number of accounts 33,886 34,136 33,658 33,968 33,966 33,786 33,700 33,542 33,213 33,720 Drainage:

Channels cleaned (miles) 5 5 5 5 5 5 5 5 5 5
Municipal Support:

Passports issued 1 673 507 247 N/A N/A N/A N/A N/A N/A N/A Source: City of Garden Grove
1 Passport services discontinued as of July 1, 2015.
* On August 16, 2019 Garden Grove Fire Department transitioned to the Orange County Fire Authority (OCFA).

SCHEDULE XVIII

CITY OF GARDEN GROVE

OPERATING INDICATORS

BY FUNCTION

LAST TEN FISCAL YEARS
174

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Police:

Stations 1 1 1 1 1 1 1 1 1 1 Fire:

Fire stations 7 7 7 7 7 7 7 7 7 * 7 * Public Right-of-Way:

Streets (miles) 305 305 305 305 305 305 305 305 305 305 Community Services:

Parks 16 16 16 19 19 20 19 19 19 19 Park acreage 142 142 142 137 137 140 124 124 124 124 Community centers 2 2 2 2 2 2 9 9 9 9 Water:

Water mains (miles) 433 433 433 433 433 433 433 433 433 433 Number of connections 34,206 34,257 34,294 34,313 34,336 34,347 34,380 34,459 34,447 34,447 Sewage Collection:

Sanitary sewers (miles) 320 320 320 320 320 320 320 320 320 320 Drainage:

Storm drains (miles) 35 35 35 35 35 35 35 35 35 35 Source: City of Garden Grove

* On August 16, 2019 Garden Grove Fire Department transitioned to the Orange County Fire Authority (OCFA). However, the City retains the ownership of the Fire stations and OCFA leases for $1 per year for each facility.

SCHEDULE XIX

CITY OF GARDEN GROVE

CAPITAL ASSETS STATISTICS

BY FUNCTION

LAST TEN FISCAL YEARS
175

INDEPENDENT ACCOUNTANT’S REPORT
The Honorable Mayor and City Council
City of Garden Grove, California
We have performed the procedures enumerated below on the City of Garden Grove, California (City) appropriations limit worksheets for compliance with the requirements of Section 1.5 of Article XIIIB of the California Constitution for the year ended June 30, 2022.

The City is responsible for compliance with Section 1.5 of Article XIIIB of the California Constitution.

The City has agreed to and acknowledged that these procedures are appropriate to meet the intended purpose of evaluating compliance with the requirements of Section 1.5 of Article XIIIB of the California Constitution and the League of California Cities publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines for the year ended June 30, 2022. T his report may not be suitable for any other purpose. T he procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and the associated findings are as follows:

1. We obtained the worksheets referred to above and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote.

Results: No exceptions were noted as a result of our procedures.

2. We recalculated the mathematical computations reflected in the City’s worksheets.

Results: No exceptions were noted as a result of our procedures.

3. We compared the current year information used to determine the current year limit and agreed it to worksheets prepared by the City and to information provided by the State Department of Finance.

Results: No exceptions were noted as a result of our procedures.

4. We compared the amount of the prior year appropriations limit presented in the worksheets to the amount adopted by the City Council for the prior year.

Results: No exceptions were noted as a result of our procedures.

DavisFarr

CERTIFIED PUBLIC ACCOUNTANTS
Davis Farr LLP
18201 Von Karman Avenue I Suite 1100 I Irvine, CA 92612 Main: 949.474.2020 I Fax: 949.263.5520
The Honorable Mayor and City Council
City of Garden Grove, California
Page Two
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively on the worksheets referred to above. A ccordingly, we do not express such an opinion or conclusion . H ad we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the Management of the City of Garden Grove, California and is not intended to be, and should not be, used by anyone other than the specified party.

Irvine, California
January 31, 2023

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Air Quality Improvement Special Revenue Fund Performed
in Accordance with Government Auditing Standard
The Honorable Mayor and City Council
City of Garden Grove, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the City of Garden Grove, California (the City) including the Air Quality Improvement Special Revenue Fund (the Fund) of the City, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements , and have issued our report thereon dated January 31, 2023.

Internal Control over Financial Reporting
In planning and performing our audit of the Fund’s financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s Fund financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Such provisions include those provisions of laws and regulations identified in Assembly Bill 2766 Chapter 1705 [Health and Safety Code Sections 44220 through 44247] (the Guide). However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not

+ DavisFarr

CERTIFIED PUBLIC ACCOUNTANTS
Davis Farr LLP
18201 Von Karman Avenue I Suite 1100 I Irvine, CA 92612 Main: 949.474.2020 I Fax: 949.263.5520
express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards and the Guide in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Irvine, California
January 31, 2023

City Council
City of Garden Grove
Garden Grove, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Garden Grove as of and for the year ended June 30, 2022 and have issued our report thereon dated January 31, 2023. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated May 2, 2022, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City of Garden Grove solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding I ndependence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence under the American Institute of Certified Public Accountants (“AICPA”) independence standards, contained in the Code of Professional Conduct.

We identified independence threats related to proposing adjusting or correcting journal entries detected during the audit and the preparation of the financial statements. We have applied

DavisFarr

CERTIFIED PUBLIC ACCOUNTANTS
Davis Farr LLP
18201 Von Korman Avenue I Suit e 1100 I Irvin e, CA 92612 Main : 949.474.2020 I Fax: 949.263.5520
certain safeguards to reduce the threats to an acceptable level, including having the City’s management review and approve all proposed journal entries and using an independent party within the firm to perform a quality control review of the financial statement s, and obtaining confirmation from the City of Garden Grove’s management that their review of the financial statements included comparing the financial statements and footnotes to the underlying accounting records.

Significant Risks Identified
We are required by the auditing standards to evaluate significant risks. We have identified the following areas for purposes of additional testing:
 The new lease accounting standard, Governmental Accounting Standards Board (GASB) Statement No. 87. As a result, we received the City’s inventory of leases, reviewed a sample of lease agreements, tested the calculations of the lease transactions, and ensured the City’s lease disclosure footnotes are accurate and complete in accordance with the new standard.
 Federal government grant compliance for COVID-19 related grants. As a result, we tested the City’s federal expenditures of COVID-19 related grants for compliance with federal guidelines when performing our single audit procedures. We also evaluated grant revenue for proper revenue recognition in the financial statements.

Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City of Garden Grove is included in Note A to the financial statements. As described in Note A to the financial statements, during the year, the entity changed its method of accounting for leases by adopting Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements are:
 Management’s estimate of amount recorded as claims and liabilities is based on management’s reliance on a third-party claims administrator. We evaluated the key factors and assumptions used to develop the amounts by the third-party claims administrator and determined that it is reasonable in relation to the financial statements taken as a whole and in relation to the applicable opinion units.

 Management’s estimate of transactions related to net pension and OPEB liabilities based on actuarial information. We evaluated the key factors and assumptions used to develop the amounts by the actuary and determined that it is reasonable in relation to the financial statements taken as a whole.
 Management’s determination that certain notes receivable with third parties are fully collectible. We evaluated the key factors and assumptions used to arrive at that determination and determined that it is reasonable in relation to the financial statements taken as a whole.

Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City of Garden Grove’s financial statements relate to the net pension liability and related amounts and the net OPEB liability and related amounts.

Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards also require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. There were no uncorrected misstatements.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. The following material misstatements that we identified as a result of our audit procedures were brought to the attention of, and corrected by, management: adjustments to correct capital assets, adjustments related to the new lease accounting standard, adjustments to correct interest payable, accrued liabilities, compensated absences, other post employment benefit liabilities, and claims payable.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City of Garden Grove’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Representations Requested from Management
We have requested certain written representations from management, which are included in our letter dated January 31, 2023.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Information Included in the Annual Comprehensive Financial Report Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City of Garden Grove’s annual reports, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other inform ation. However, in accordance with such standards, we have read the information and considered whether such information, or the manner of its presentation, was materiality inconsistent with its presentation in the financial statements.

Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

This report is intended solely for the information and use of the City Council of the City of Garden Grove, and management of the City of Garden Grove and is not intended to be and should not be used by anyone other than these specified parties.

Irvine, California
January 31, 2023

City Council
City of Garden Grove, California
In planning and performing our audit of the financial statements of the City of Garden Grove as of and for the year ended June 30, 2022, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over financial reporting.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and therefore, significant deficiencies or material weaknesses may exist that have not been identified. However, as discussed below, we identified certain deficiencies in internal control that we consider to be significant deficiencies.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A reasonable possibility exists when the likelihood of an event occurring is either reasonably possible or probable as defined as follows:
 Reasonably possible. The chance of the future event or events occurring is more than remote but less than likely.
 Probable. The future event or events are likely to occur.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the following issue to conform to that definition:
(1) Accounting Adjustments Recorded During the Audit
During the audit we identified material and immaterial adjustments to correct the accounting records. Adjustments were made to correct capital assets, to correct balances related to the new lease accounting standard, and to correct interest payable, accrued liabilities, compensated absences, other post employment benefit liabilities, and claims payable. The City also identified and recorded adjustments to the records after the year end close was completed. The auditing standards acknowledge that the auditor should not be part of the City’s system of internal controls because adjusting material transactions in the financial statements creates an independence threat and reduces auditor transparency.

DavisFarr

CERTIFIED PUBLIC ACCOUNTANTS
Davis Farr LLP
18201 Von Karman Avenue I Suite 1100 I Irvine, CA 92612 Main: 949.474.2020 I Fax: 949.263.5520
Recommendation
To minimize adjustments identified during the audit, the City should establish procedures to, whenever possible, identify adjustment in the reporting period in which the related transactions occurred. These procedures could include performing a comprehensive review of the year end accounting balances prior to the start of the audit fieldwork.

The purpose of this communication, which is an integral part of our audit, is to describe for management and those charged with governance the scope of our testing of internal control and the results of that testing. Accordingly, this communication is not intended to be and should not be used for any other purpose.

Irvine, California
January 31, 2023

Agenda Item - 5.b.

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM
To: Scott C. Stiles From: Lisa L. Kim
Dept.: City Manager Dept.: Community and Economic
Development
Subject: Adoption of a Resolution to
authorize participation in the
Encampment Resolution
Funding Grant Program.
(Action Item)
Date: 2/14/2023

OBJECTIVE
To request approval of a Resolution to authorize participation in the Encampment Resolution Grant Funding program.

BACKGROUND
A Notification of Funding Availability was issued on December 1, 2022 for the Encampment Resolution Funding Grant Program (ERF-2-R) through the California Interagency Council on Homelessness (CalICH). The CalICH has made available up to $237,301,738 to local agencies in California and the members of the Continuum of Care (CoC) to resolve the experience of unsheltered homelessness for at-risk individuals residing in encampments. This program prioritizes activities that address the safety and wellness of individuals experiencing homelessness within encampments, resolve critical encampment concerns, and transition individuals into interim shelter with clear pathways to permanent housing or directly into permanent housing, using data-informed, non-punitive, low-barrier, person-centered, Housing First, and coordinated approaches.

DISCUSSION
In coordination with the Garden Grove Police Department (GGPD) Special Resource Team, Caltrans and the County of Orange, a joint effort has been established to request and utilize the grant funding to deploy a fencing pilot program and provide homeless resources to individuals experiencing homelessness in these identified encampments areas within the City. The areas are as follows:

1. Site A- Beach and 22 Freeway

2. Site B- Euclid and 22 Freeway

3. Site C- Newhope and 22 Freeway

4. Site D- Haster and 22 Freeway

Summarized below is a preliminary budget of approximately $3.4 million. The proposed Garden Grove Encampment Resolution Program would allocate resources for the Navigation Center operations, additional street outreach support in coordination with the Special Resource Team, County of Orange, and Moving Forward Psychological Institute, augment costs for continuation of the Be Well OC Mobile Response Team, expand the Workforce Activation and Readiness Program, utilize 2-1-1 OC Homeless Management Information System (HMIS) for data collection, and implement the Caltrans Collaborative Fencing Pilot Project. If awarded, the grant program would be administered by the Community and Economic Development Department.

FINANCIAL IMPACT
There is no fiscal impact to the General Fund.

The Encampment Resolution Funding Grant (ERF-2-R) Program does not require a match from the City. The budget summary is as follows:

Encampment Resolution Grant Program
Activities FY 23-24 FY 24-25 FY 25-26
Low-barrier Navigation Center Operations $500,000 $0 $0 Special Resource Team (SRT) $150,000 $150,000 $150,000
Street Outreach – Service Providers (Moving
Forward & PATH) $190,000 $177,500 $12,500
Be Well OC Mobile Response Team $350,000 $100,000 $100,000 Workforce Activation and Readiness Program
(WARP) $60,000 $30,000 $30,000
2-1-1 OC Homeless Management
Information System Data $60,000 $60,000 $60,000
Caltrans Collaborative Project $1,000,000 $50,000 $50,000 Total Cost (FY 23-24, 24-25, 25-26) $3,280,000
Administrative costs (5%) $164,000
Total Requested Amount $3,444,000

RECOMMENDATION
It is recommended that the City Council

Adopt the Resolution to authorize participation in the Encampment Grant Resolution Funding (ERF-2-R) Program by approval of the resolution; Direct the City Manager to finalize preparatoin and submittal of an Encampment Resolution Grant application, and authorize execution of necessary agreements for grant implementation.

By: Christy Le, Homeless Liaison Analyst

•
•

Attachment 1: Resolution

ATTACHMENTS:

Description Upload Date Type File Name
Resolution 2/8/2023 Resolution ERF-2-
R_Resolution._OS_020723._CL_020823.docx

GARDEN GROVE CITY COUNCIL

RESOLUTION NO. XXXX-23

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE TO

AUTHORIZE PARTICIPATION IN THE ENCAMPMENT RESOLUTION FUNDING GRANT PROGRAM (ERF-2-R) WITH THE PROPOSED BUDGET OF $3,444,000 AND AUTHORIZE AGREEMENTS TO IMPLEMENT THE CALTRANS COLLABORATIVE PROJECT.

WHEREAS, the City of Garden Grove desires to undertake a certa in project consistent with the California Interagency Council on Homelessness Encampment Resolution Funding Grant Program (Program) to assist in resolving the experience of unsheltered homelessness for people residing in encampments;

WHEREAS, the City of Garden Grove is eligible to receive funds for the Program made available through the California Interagency Council on Homelessness administered by the California Department of Business, Consumer Services and Housing Agency;

WHEREAS, the City will administer the Program through the Community and Economic Development Department;

WHEREAS, the City desires to be reimbursed from the eli gible funds for operational and administrative tasks;

WHEREAS, it is necessary to grant authorization to participate in the Encampment Resolution Grant Program (ERF-2-R);

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF GARDEN GROVE:

1. Does hereby authorize the City Manager of the City of Garden Grove or his/her designee to approve and execute authorization to participate in the Program, and to execute and submit all other necessary grant documents, including but not limited to applications, agreements, modifications, payment requests, and amendments for the purpose of obtaining funding, that may be necessary for the completion of the 2023 -24, 2024 -25, 2025 -26 Program and implementation of the same in subsequent fiscal years with the proposed budget of $3,444,000.

2. The City Manager or his/her designee is further authorized to execute agreements with Caltrans consistent with the Program.

3. Grant funds received under the Program shall not be used to supplant ongoing law enforcement expenditures.

Resolution No. 6016-21 Page 2

Adopted this __ day of February __ 2023.

Agenda Item - 6.a.

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM
To: Scott C. Stiles From: Lisa L. Kim
Dept.: City Manager Dept.: Community and Economic
Development
Subject: Second reading of Ordinance
No. 2941
Date: 2/14/2023
Attached for second reading is Ordinance No. 2941 recommended for adoption.

ATTACHMENTS:

Description Upload Date Type File Name
Ordinance No. 2941 2/9/2023 Ordinance 2941_GG_ORDINANCE_PUD- 018-2022.pdf

ORDINANCE NO. 2941

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE APPROVING PLANNED UNIT DEVELOPMENT NO. PUD-018-2022 TO ESTABLISH

RESIDENTIAL PLANNED UNIT DEVELOPMENT IMPLEMENTATION PROVISIONS AND STANDARDS OF DEVELOPMENT FOR PROPERTY LOCATED AT 9071, 9081, AND 9091 LAMPSON AVENUE (ASSESSOR’S PARCEL NOS. 133-183-55, 56, 57, AND 58)

CITY ATTORNEY SUMMARY

This Ordinance approves Residential Planned Unit Development No. PUD-018-2022 to establish residential planned unit development zoning regulations applicable to an approximately 1.6 acre site in the City of Garden Grove located at 9071, 9081, and 9091 Lampson Avenue (Assessor’s Parcel Nos. 133-183-55, 56, 57, and 58) in order to permit and facilitate the development of a small lot subdivision residential project consisting of 13 two-story, detached homes and related site improvements on the property.

The subject site is currently zoned R-1 (Single-Family Residential), which will continue to be the base zone. The residential small-lot subdivision project authorized by Planned Unit Development No. PUD-018-2022 shall be implemented through development in compliance with Site Plan No. SP-118-2022 and Tentative Tract Map No. TT-19232, as approved by the Garden Grove City Council on January 24, 2023, and the development standards applicable to small lot subdivisions set forth in Section

9.12.040.060 of the Garden Grove Municipal Code in effect as of August 11, 2022 shall apply to the initial development of the Project.

THE CITY COUNCIL OF THE CITY OF GARDEN GROVE FINDS AND
DETERMINES AS FOLLOWS:

WHEREAS, PLC Garden Grove, LLC, the applicant, submitted a request to develop a 13-unit residential small-lot subdivision project and associated site improvements on a 1.6-acre vacant site, located at 9071, 9081, and 9091 Lampson Avenue, Assessor’s Parcel Nos. 133-183-55, 56, 57, and 58 (the “Property”), which is owned by the applicant; and

WHEREAS, the applicant has requested the following approvals to facilitate the proposed development: (a) adoption of Residential Planned Unit Development No. PUD-018-2022 for the Property to allow and facilitate the development of a small-lot subdivision residential project consisting of 13 two-story, detached homes on the Property; (b) approval of Site Plan No. SP-118-2022 to facilitate development of the 13 two-story, detached homes and associated site improvements; and (c) approval of Tentative Tract Map No. TT-19232 to subdivide the subject Property into 17 separate lots (collectively, the “Project”); and

WHEREAS, the Property has a General Plan Land Use Designation of Low Density Residential and is currently zoned R-1 (Single-Family Residential); and

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Ordinance No. 2941

WHEREAS, Planned Unit Development No. PUD-018-2022 will establish zoning regulations governing the Property and the development of the proposed residential small-lot subdivision project in accordance with Section 9.08.030.020 of the Garden Grove Municipal Code; and

WHEREAS, the implementation provisions and standards of development for Planned Unit Development No. PUD-018-2022 are set forth in Planning Commission Resolution No. 6054-22 and provide that the development standards applicable to small lot subdivisions set forth in Section 9.12.040.060 of the Garden Grove Municipal Code in effect as of August 11, 2022 shall apply to the initial development of the small-lot subdivision project; the base zone shall be R-1 (Single-Family Residential); and the small-lot subdivision project shall be implemented through development in compliance with Site Plan No. SP-118-2022 and Tentative Tract Map No. TT-19232, as approved by the Garden Grove City Council, including all related conditions of approval and/or duly approved amendments thereto; and

WHEREAS, following a public hearing held on December 1, 2022, the Planning Commission adopted Resolution No. 6054-22 recommending that the City Council adopt a Mitigated Negative Declaration for the Project and approve Planned Unit Development No. PUD-018-2022; and

WHEREAS, pursuant to a legal notice, a Public Hearing was held by the City Council on January 24, 2023, and all interested persons were given an opportunity to be heard;

WHEREAS, the City Council gave due and careful consideration to the matter; and

WHEREAS, on January 24, 2023, the City Council adopted Resolution No. 9781- 23, adopting a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Project; and

WHEREAS, on January 24, 2023, the City Council adopted Resolution No. 9782- 23, approving Site Plan No. SP-118-2022 and Tentative Tract Map No. TT-19232, subject to the adoption and effectiveness of this Ordinance; and

WHEREAS, adoption of this Ordinance is consistent with Subdivision (b) of Government Code Section 66300 because approval of the zoning regulations of Planned Unit Development No. PUD-018-2022 will not result in a change to the zoning of the Property to a less intensive use or reduce the intensity of land use under the zoning of the Property as in effect on January 1, 2018; and

WHEREAS, adoption of this Ordinance and implementation of the zoning regulations, provisions, and standards of development of Planned Unit Development No. PUD-018-2022 will not reduce, or require or permit the reduction of, the allowable residential density for any housing element parcel, or allow development of any housing element parcel at, a lower residential density, as defined in

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Government Code Section 65863; therefore, the “no net loss” provis ions of Government Code Section 65863 and Section 9.60.030 of the Garden Grove Municipal Code do not apply; and

WHEREAS, the City Council of the City of Garden Grove hereby makes the following findings regarding Planned Unit Development No. PUD-018-2022:

1. The PUD is internally consistent with the goals, objectives, and elements of the General Plan.

The City’s Land Use Element encourages Planned Unit Developments (PUD).

A Planned Unit Development (PUD) is a precise plan, adopted by ordinance that provides the means for the regulation of buildings, structures and uses of land in order to facilitate the implementation of the General Plan. The PUD will facilitate the development of a 13-unit residential small-lot subdivision project on an approximately 1.6-acre site, with a resulting residential density of 10 dwelling units per acre.

The subject site has a General Plan Land Use designation of LDR, which is intended to create, maintain, and enhance residential areas characterized by detached, single unit structures, and single-family residential neighborhoods that: (i) provide an excellent environment for family life; (ii) preserve residential property values; (iii) provide access to schools, parks, and other community services; and (iv) provide a high-quality architectural design. The LDR land use designation allows for one (1) to 11 dwelling units per acre, or up to 17 dwelling units for the subject site.

The PUD will follow the Small-Lot Subdivision development standards of the Municipal Code for Small-Lot Subdivisions. In addition, the proposed project is consistent with several goals and policies of the General Plan, including:

a. Policy LU-2.2: Strive to provide a diverse mix of housing types, along with uniformly high standards of residential property maintenance to preserve residents’ real estate values and their high quality of life.

The proposed residential small-lot subdivision development will add to the mix of diverse housing types in the immediate neighborhood that is currently improved with multi-family and single-family dwellings. The proposed 13-unit housing project will provide detached, two-story residential dwellings, on a site where maintenance of all common areas, such as the private street, guest parking areas, the common recreation area, and street frontage landscaping, will be the responsibility of a Homeowner’s Association to ensure proper maintenance that preserves the resident’s real estate values. Furthermore, the Project will contribute to meeting the City’s Regional Housing Needs Allocation (RHNA), as well as the Housing Element policies

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b. Policy LU-2.4: Assure that the type and intensity of land use shall be consistent with that of the immediate neighborhood.

The immediate area consists of both multiple-family and single-family dwellings. The proposed 13-unit residential small-lot subdivision project was reviewed and determined to be within the allowed density and in compliance with the development standards of the Municipal Code for small-lot subdivisions and the LDR land use designation in the General Plan, which is 17 units maximum for the 1.6-acre site. Thus, the development is consistent with the type and intensity of land use of the immediate neighborhood.

c. LU-IMP-2B: New development shall be similar in scale to the adjoining residential neighborhood to preserve its character.

The 1.6-acre site is proposed to be improved with a 13-unit small-lot subdivision development, which is within the allowable density pursuant to the LDR General Plan Land Use designation, which is 17 units maximum. The proposed project was reviewed by the City staff and deemed to be within the allowed density and similar in scale to the adjoining residential neighborhood. The proposed design will consist of two-story units, which is compatible with the physical scale of the immediate neighborhood currently improved with multi-family and single-family dwellings ranging from one to two stories. Thus, the Project is similar both in land use intensity and physical scale of the adjoining residential neighborhood.

d. Goal LU-4: The City seeks to develop uses that are compatible with one another.

The proposed two-story small-lot subdivision project is located in a residential neighborhood that is improved with multi-family and single-family dwellings. The properties in the direct vicinity of the project site are zoned R-1 or R-2 (Multiple-Family Residential), and have a LDR or Low Medium Density Residential (LMR) land use designations, respectively. The properties directly to the west are developed with two-story multi-family residential buildings. Thus, the proposed housing project is consistent with the development pattern of the surrounding residential uses.

e. Policy H-3.7: Encourage infill housing development that is compatible in character with established residential neighborhoods.

The 1.6-acre site is vacant and is comprised of four (4) parcels. The project site is located in a neighborhood improved with multi-family and single-family dwellings. As a vacant site that was previously developed with three (3) single-family dwellings, it offers an opportunity for in-fill housing development. The proposed 13-unit small-lot subdivision will

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consist of two-story detached units, which is compatible with the character of the immediate neighborhood. Furthermore, the Project will contribute to meeting the City’s Regional Housing Needs Allocation (RHNA), as well as the Housing Element policies.

2. The location of the buildings, architectural design, and proposed use are compatible with the character of existing residential development in the vicinity, and the Project will be well-integrated into its setting.

The applicant is requesting to construct a 13-unit residential small-lot subdivision project on an approximately 1.6-acre site that abuts R-1 zoned properties developed with single-family dwellings to the north, east, and south across Lampson Avenue, and an R-2 (Multiple-Family Residential) zoned property developed with a multi-family development to the west.

The proposed design consists of 13 small-lot subdivision units on separate lots.

Each residential lot will range from 3,427 to 4,414 square feet and will be improved with a two-story dwelling, an attached two-car garage, a driveway for two (2) parking spaces, a private rear yard, a front yard, and side yards on each side. Each unit can be accessed from its attached garage, or from the public right-of-way via internal 4’ -0” wide internal sidewalks leading to each unit’s front entry that faces the private street. The internal sidewalks also lead to the common recreation area and guest parking spaces throughout the development.

The Project meets or exceeds the setbacks required for small-lot subdivisions by providing a 20’ -0” setback to each unit, a 19’-0” setback to the garages, side setbacks that range from 4’ -0” to 8’-7”, and rear setbacks ranging from 15’-1” to 15’-7”. Five (5) units will be located along the westerly side of the site, four (4) units will be located at the rear of the site along the northerly property line, and four (4) units will be located along the easterly side of the site. A common recreation area improved with play equipment and benches will be located on the east side of the private street. The units and common recreation area face a proposed internal 36’ -0” wide private street that leads from a new drive approach located along the south property line off of Lampson Avenue. The proposed private street will serve as the only vehicular access point to the project site and will provide eight (8) on-street parallel parking spaces on both sides of the street. Each unit is improved with an attached garage and driveway for parking, which have access from the new private street. Four (4) additional visitor guest parking spaces are located toward the rear of the site: two (2) off of each side of the private street. The new drive approach, private street, and parking layout have been designed in accordance with City standards to provide adequate access for trash trucks and emergency vehicles.

The Project proposes two unit plans, Plan 1 and Plan 2. Each unit plan is also provided in two architectural styles: Spanish and Contemporary Spanish. The

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Spanish homes will exhibit enhanced elevations with multi-toned stucco exteriors, varied rooflines, concrete tile roofing, building pop-outs, decorative shutters, arched doorways, decorative tile vents, roof eaves with exposed rafters, decorative window trims, balconies, and Spanish style wall lighting.

The Contemporary Spanish homes will also exhibit enhanced elevations with multi-toned stucco exteriors, varied rooflines, flat concrete tile roofing, and building pop-outs, but updated modern features, such as squared doorways, fascia board at roof rafters, modern window trims, and contemporary wall lighting.

The proposed residential small-lot subdivision development will add to the mix of diverse housing types in the immediate neighborhood that is currently improved with multi-family and single-family dwellings. The proposed project was reviewed by the City staff and deemed to be within the allowed density and similar in scale to the adjoining residential neighborhood. The proposed design will consist of two-story units, which is compatible with the physical scale of the immediate neighborhood currently improved with multi-family and single-family dwellings ranging from one to two stories. Thus, the Project is similar both in land use intensity and physical scale of the adjoining residential neighborhood.

3. The plan will produce a stable and desirable environment and will not cause undue traffic congestion on surrounding streets.

The Project consists of 13 detached two-story small-lot subdivision homes.

Units 1 thru 5 are located along the westerly side of the site, Units 6 thru 9 are located at the rear of the site along the northerly property line, and Units 10 thru 13 are located along the easterly side of the site. The units face a proposed internal, 36’ -0” wide private street leading from a new drive approach located along the south property line off of Lampson Avenue. The proposed private street will provide the only vehicular access point to the project site. Per the Municipal Code, the Project is required to provide 3.75 parking spaces per unit, or 49 spaces. The required parking is to be provided in the form of a two-car garage for each unit, one (1) driveway space located in front of each two-car garage, and the remaining 0.75 parking spaces may be provided along the development’s private street or a designated guest parking area. The Project has been designed to provide two-car garages for each unit, eight (8) guest parallel parking spaces along the private street, and four (4) guest parking spaces in two (2) separate guest parking designated areas. In addition, the Project provides one (1) required space in front of each two-car garage. The total parking will consist of 26 spaces within two-car garages, 12 open guest spaces, and 13 required spaces on the driveways of each garage. Therefore, the total parking provided is 51 spaces, which exceeds the required parking under the Small-Lot Subdivision Code by two (2) spaces.

Moreover, although only one (1) driveway parking space can be used to satisfy the required number of parking spaces, each unit is able to provide two (2)

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parking spaces on the driveway, resulting in an additional 13 parking spaces.

Therefore, the Project is able to provide the required parking for a 13-unit small-lot subdivision project to minimize potential impacts to surrounding streets.

Additionally, as part of the Initial Study/Mitigated Negative Declaration for the Project, a traffic study was prepared for the Project. It was determined that due to the relatively small size of the 13-unit residential subdivision, it would not generate a substantial number of daily or peak-hour vehicle trips to cause undue traffic congestion on the surrounding streets. The City’s Traffic Engineering Division reviewed the report and concurred with the report’s findings. All appropriate conditions of approval have been incorporated to minimize any adverse impacts on surrounding streets. Therefore, the design of the Project complies with the spirit and intent of the Garden Grove Municipal Code for a small-lot subdivision development and will provide for a stable and desirable environment.

4. Provision is made for both public and private open spaces.

Per the Municipal Code requirements for small-lot subdivisions consisting of ten (10) or more units, a minimum of 200 square feet per unit of common recreation area is required for the development. The common recreation area is required to provide minimum dimensions of 30’ -0” when located between two-story buildings and should be located in an area that is accessible to all residents within the subdivision. Based on the number of units proposed, the development is required to provide a common recreation area that is at least 2,600 square feet in area. The Project provides a 2,864 square foot active recreational open space area with minimum dimensions of 35’ -0” that is accessible to the residents within the development. The recreation area features amenities which includes a playground and built-in bench seating.

Additionally, each dwelling unit will provide a 15’-0” by 20’ -0” private recreation area that is conveniently located in the rear yards off of the great room. Conditions of approval will require that all private recreation areas be open and unobstructed from the ground to the sky at all times. Therefore, the proposed Project complies with all recreation requirements of the Municipal Code.

5. Provision is made for the protection and maintenance of private areas reserved for common use.

Through the conditions of approval for the Project, all necessary agreements for the protection and maintenance of private areas reserved for common use will be in place prior to the start of construction and will be required to be adhered to for the life of the Project.

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6. The quality of the Project achieved through the proposed Planned Unit Development zoning is greater than could be achieved under the current zoning.

The subject 1.6-acre site is currently zoned R-1 and has a LDR General Plan Land Use designation. The City’s Zoning Code was recently amended to reduce the acreage for a residential PUD from three (3) acres to one (1) acre. The proposed PUD will establish R-1 as the base zoning for the site, which will be consistent with the site’s LDR General Plan Land Use designation provided that the density does not exceed 11 dwelling units per acre, or 17 units for the subject site. The Project proposes 13 units, which is within density for the LDR General Plan Land Use designation. The PUD zoning will facilitate the development of the small-lot subdivision that would otherwise not be allowed under the current R-1 zoning of the property. Under the R-1 zone, the site would yield fewer units due to the 7,200 square-foot minimum lot size requirement for new single-family lots. Adopting a residential PUD for the site will ensure the development of additional units while maintaining consistency with the density established by the LDR General Plan Land Use designation. In addition, the PUD zoning allows the Project to have an overall quality that is greater than the current zoning as it allows a more integrated design of dwellings within a residential community. Moreover, the proposed development will be an added value to the neighborhood, and will add additional housing units that furthers the goals of the City’s Housing Element.

7. The PUD will promote the public interest, health, and welfare.

The proposed 13-unit residential small-lot subdivision development will promote the public interest, health, and welfare. The proposed project is within the maximum allowable density, is compatible with surrounding uses, is similar in scale to the adjoining neighborhood, and is consistent with the land use type and intensity in the immediate neighborhood. Furthermore, the Project will contribute to meeting the City’s Regional Housing Needs Allocation (RHNA), as well as the Housing Element policies.

8. The subject parcel is physically suitable for the requested PUD designation, compatible with surrounding land uses, and consistent with the General Plan.

The 1.6-acre site is physically suitable for the proposed 13-unit small-lot subdivision development. The small-lot subdivision is allowed under the proposed rezone to PUD with R-1 base zoning. The residential development has been designed per the Municipal Code development standards for small-lot subdivisions. As designed, the site is able to accommodate 13 units, along with the required parking, landscaping, private and common recreation areas, setbacks, and building height. Therefore, the property is sufficient in size to accommodate the proposed development, and complies with all applicable provisions of the City of Garden Grove Municipal Code for small-lot subdivisions.

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The proposed project was designed to comply with all applicable development standards for small-lot subdivisions in existence at the time a complete application was submitted, with the exception of meeting the minimum lot size for a residential PUD. Although approval of a Variance would have previously been required to deviate from the minimum lot size, the City Council amended the prior Code provisions reducing the minimum lot size of a residential PUD from three (3) acres to one (1) acre through the adoption of Ordinance No. 2939, which took effect on November 10, 2022.

The site abuts R-1 zoned properties developed with single-family dwellings to the north, east, and south, across Lampson Avenue, and an R-2 zoned property developed with a multi-family development to the west. The proposed residential small-lot subdivision development will add to the mix of diverse housing types in the immediate neighborhood that is currently improved with multi-family and single-family dwellings. The proposed project was reviewed by the City staff and deemed to be within the allowed density and similar in scale to the adjoining residential neighborhood. The proposed design will consist of two-story units, which is compatible with the physical scale of the immediate neighborhood currently improved with multi-family and single- family dwellings ranging from one to two stories. Thus, the Project is similar both in land use intensity and physical scale of the adjoining residential neighborhood.

The subject site has a General Plan Land Use designation of LDR, which allows for one (1) to 11 dwelling units per acre, or 17 dwelling units for the subject

1.6-acre site. The Project proposes 13 units, which is within the density allowed for the site per the LDR land use designation. Therefore, the subject parcel is physically suitable for the requested PUD designation, compatible with surrounding land uses, and consistent with the General Plan.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GARDEN GROVE DOE S ORDAIN AS FOLLOWS:

Section 1. The above recitals are true and correct.

Section 2. Environmental Review. City Council Resolution No. 9781- 23 adopting a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Project is incorporated herein by reference with the same force and effect as if set forth in full herein.

Section 3. The facts and reasons stated in Planning Commission Resolution No. 6054-22 recommending approval of Planned Unit Development No. PUD-018-2022, a copy of which is on file in the Office of the City Clerk, are hereby incorporated herein by reference with the same force and effect as if set forth in full.

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Section 4 . Planned Unit Development No. PUD- 018-2022 is hereby approved, subject to the implementation provisions and standards of development set forth in Planning Commission Resolution No. 6054-22.

Section 5. The property shown on the map attached hereto is hereby zoned to Residential Planned Unit Development zoning (PUD- 018-2022) with R- 1 (Single-Family Residential) base zoning, as shown thereon. Zone Map part L-10 is amended accordingly.

Section 6 . Severability. If any section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, words, or portions thereof be declared invalid or unconstitutional.

Section 7 . The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect on the date that is thirty (30) days after adoption.

The foregoing Ordinance was passed by the City Council of the City of Garden Grove on the ___ day of ____________.

ATTEST:

MAYOR
_______________________________

DEPUTY CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS:

CITY OF GARDEN GROVE )

I, TERESA POMEROY, City Clerk of the City of Garden Grove, do hereby certify that the foregoing Ordinance was introduced for first reading and passed to second reading on January 24, 2023, with a vote as follows:

AYES: COUNCIL MEMBERS: (7) O’NEILL, TRAN, DOVINH, KLOPFENSTEIN, NGUYEN K., BRIETIGAM, JONES
NOES: COUNCIL MEMBERS: (0) NONE
ABSENT: COUNCIL MEMBERS: (0) NONE

Garden Gove City Council
Ordinance No. 2941

PLANNED UNIT DEVELOPMENT
NO. PUD-018-2022

GARDEN GROVE
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SUBJECT SITE
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LEGEND
D RE-ZONE FROM R-1 TO PUD-018-2022 WITH R-1 BASE ZONE
NOTES
SITE ADDRESS· 9071, 9081, AND 9091 LAMPSON AVENUE
(APN: 133-183-55, 56, 57 & 58)
!000
LlmpsonAve