Agenda, first session — Garden Grove City Council, November 14, 2023 (part 3 of 4)

CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Nov 2, 2023
Report Generated on Nov 2, 2023 9:59:34 AM Page 8
Check Vendor # Vendor Name Issue Date Check Amount
00030639 E04778 BAKER, COLLIN E 11/02/2023 $2,998.54 00030640 E03005 BANKSON, JOHN F 11/02/2023 $4,329.50 00030641 E04645 BARRAZA, RENE 11/02/2023 $4,521.01 00030642 E05041 BARRIOS-ROA, JAYDE D. 11/02/2023 $2,951.06 00030643 E04432 BEHZAD, JOSHUA K 11/02/2023 $2,281.72 00030644 E04951 BELLO, ANGELICA 11/02/2023 $1,869.36 00030645 E03006 BELTHIUS, LISA A 11/02/2023 $92.87 00030646 E04976 BELTHIUS, TYLER E 11/02/2023 $393.34 00030647 E04753 BERENGER, BEAU A 11/02/2023 $4,715.07 00030648 E03296 BERESFORD, EVAN S 11/02/2023 $4,059.18 00030649 E01604 BERLETH, RYAN S 11/02/2023 $2,563.74 00030650 E03443 BLUM, JAMES A 11/02/2023 $2,873.57 00030651 E03363 BOWEN, GENA M 11/02/2023 $2,468.80 00030652 E04767 BOWMAN, TROY F 11/02/2023 $2,966.93 00030653 E04963 BOYENS III, ROBERT 11/02/2023 $2,970.17 00030654 E00946 BRAME, KAREN D 11/02/2023 $2,266.37 00030655 E04803 BRANTNER, BRITTANEE N 11/02/2023 $2,078.63 00030656 E05083 BRITTON, CODY W 11/02/2023 $2,393.82 00030657 E03380 BROWN, JEFFREY A 11/02/2023 $5,532.56 00030658 E03968 BRUNICK, CARISSA L 11/02/2023 $2,293.48 00030659 E05074 BUJANONDA, CHANON 11/02/2023 $2,758.16 00030660 E02031 BURILLO, RICHARD O 11/02/2023 $5,569.93 00030661 E03972 BUSTILLOS, RYAN V 11/02/2023 $3,512.96 00030662 E05077 CAGLE, RONALD L 11/02/2023 $2,078.94 00030663 E03964 CAMARA, DANIEL A 11/02/2023 $2,811.16 00030664 E04074 CAMPOS, JESENIA 11/02/2023 $2,315.67 00030665 E03739 CAPPS, THOMAS A 11/02/2023 $4,781.16 00030666 E05002 CARBALLO, MILTON A 11/02/2023 $2,648.43 00030667 E02372 CENTENO, JUAN C 11/02/2023 $4,749.16 00030668 E03607 CHANG, DAVID Y H 11/02/2023 $2,246.76 00030669 E03481 CHAURAN HAIRGROVE, TAMMY L 11/02/2023 $2,862.06 00030670 E04498 CHEATHAM, JEROME L 11/02/2023 $3,909.26 00030671 E03423 CHOWDHURY, JACINTA F 11/02/2023 $1,946.73 00030672 E04414 CHUNG, RANDY G 11/02/2023 $153.81 00030673 E00003 CIBOSKY, COURTNEY P 11/02/2023 $3,114.18 Server Name: cognos.ggcity.org User Name: victoriac

Page 270 of 434 ends

CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Nov 2, 2023
Report Generated on Nov 2, 2023 9:59:34 AM Page 9
Check Vendor # Vendor Name Issue Date Check Amount
00030674 E04539 CLASBY JR, BRIAN M 11/02/2023 $123.58 00030675 E04872 CORNETT, KRISTINA L 11/02/2023 $1,802.41 00030676 E04832 CORTEZ JR, DARRYL B 11/02/2023 $2,704.80 00030677 E04666 CORTEZ, JULIO C 11/02/2023 $4,299.77 00030678 E01875 COUGHRAN, ADAM B 11/02/2023 $610.62 00030679 E01796 COULTER, GARY L 11/02/2023 $3,315.62 00030680 E04555 CRUZ, REYNA 11/02/2023 $2,072.57 00030681 E01364 DALTON, BRIAN D 11/02/2023 $4,600.86 00030682 E04874 DANG, JOHN 11/02/2023 $1,538.76 00030683 E00126 DANIELEY III, CHARLIE H 11/02/2023 $1,406.97 00030684 E04503 DAVILA, ISAAC 11/02/2023 $3,797.92 00030685 E04431 DE ALMEIDA LOPES, NICHOLAS A 11/02/2023 $5,791.62 00030686 E04731 DE PADUA, TANNER C 11/02/2023 $3,946.33 00030687 E03691 DELGADO JR, JUAN L 11/02/2023 $5,358.55 00030688 E03395 DIX, JENNIFER A 11/02/2023 $2,732.08 00030689 E05088 DOAN, THOMMY 11/02/2023 $2,587.17 00030690 E02313 DOSCHER, RONALD A 11/02/2023 $3,437.24 00030691 E04586 DOVEAS, CHRISTOPHER C 11/02/2023 $127.88 00030692 E04281 DRISCOLL, RUSSELL B 11/02/2023 $2,116.65 00030693 E04844 DUARTE, TAYLOR M 11/02/2023 $2,850.61 00030694 E04720 DUDLEY, BROC D 11/02/2023 $3,328.48 00030695 E03625 EARLE, CHRISTOPHER M 11/02/2023 $3,562.07 00030696 E03740 EL FARRA, AMIR A 11/02/2023 $5,943.64 00030697 E03927 ELHAMI, MICHAEL K 11/02/2023 $3,438.64 00030698 E03933 ELIZONDO, BENJAMIN M 11/02/2023 $11,932.92 00030699 E04016 ELIZONDO, FLOR DE LIS 11/02/2023 $2,429.22 00030700 E01598 ELSOUSOU, HELENA 11/02/2023 $3,080.13 00030701 E02708 ENRIQUEZ, JOHN G 11/02/2023 $947.91 00030702 E05174 ESCOBAR, MARIANA 11/02/2023 $451.61 00030703 E04334 ESCOBEDO, JOSHUA N 11/02/2023 $3,585.22 00030704 E02724 ESTLOW, STEPHEN C 11/02/2023 $3,250.16 00030705 E04358 ESTRADA MONSANTO, MICHELLE N 11/02/2023 $3,667.89 00030706 E04748 FAJARDO, JESUS 11/02/2023 $3,167.99 00030707 E04303 FERREIRA JR, HECTOR 11/02/2023 $2,812.71 00030708 E01663 FERRIN, KORY C 11/02/2023 $16,219.32 Server Name: cognos.ggcity.org User Name: victoriac

Page 271 of 434 ends

CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Nov 2, 2023
Report Generated on Nov 2, 2023 9:59:34 AM Page 10
Check Vendor # Vendor Name Issue Date Check Amount
00030709 E03976 FIGUEREDO, GEORGE R 11/02/2023 $4,674.43 00030710 E04774 FLINN, PATRICIA C 11/02/2023 $3,039.51 00030711 E02887 FOSTER, VICTORIA M 11/02/2023 $1,603.82 00030712 E04033 FRANCISCO, KATHERINE M 11/02/2023 $3,004.38 00030713 E02963 FRANKS, JAMES D 11/02/2023 $3,567.44 00030714 E04747 FRESENIUS, ROBERT D 11/02/2023 $3,351.65 00030715 E00903 FRUTOS, VERONICA 11/02/2023 $2,042.71 00030716 E04729 GARCIA, JOSEPH A 11/02/2023 $2,325.63 00030717 E03086 GARCIA, PETE 11/02/2023 $4,304.99 00030718 E03659 GARNER, AMANDA B 11/02/2023 $2,151.05 00030719 E04351 GERDIN, MICHAEL E 11/02/2023 $3,097.35 00030720 E04542 GIFFORD, ROBERT J 11/02/2023 $3,563.37 00030721 E04658 GIRGENTI, BRIAN C 11/02/2023 $3,401.49 00030722 E04401 GLEASON, SEAN M 11/02/2023 $3,588.14 00030723 E04917 GOMEZ, JESUS 11/02/2023 $2,783.36 00030724 E04863 GONZALEZ JR, GONZALO 11/02/2023 $9,788.67 00030725 E05003 HA, DANNY 11/02/2023 $2,719.23 00030726 E04732 HADDEN, TRAVIS J 11/02/2023 $2,705.05 00030727 E04787 HALEY, KYLE N 11/02/2023 $3,368.37 00030728 E03527 HALLER, TROY 11/02/2023 $6,122.75 00030729 E03402 HEINE, STEVEN H 11/02/2023 $3,989.92 00030730 E05157 HERNANDEZ CALLEROS, SAIRA 11/02/2023 $1,808.07 00030731 E02469 HERRERA, JOSE D 11/02/2023 $3,969.62 00030732 E04244 HINGCO, PINKY C 11/02/2023 $3,857.70 00030733 E03713 HOLLOWAY, WILLIAM T 11/02/2023 $4,726.73 00030734 E04739 HOWARD, JASON A 11/02/2023 $5,160.71 00030735 E04654 HURLEY, KIRK P 11/02/2023 $4,615.20 00030736 E04089 HUTCHINS, DONALD J 11/02/2023 $3,817.11 00030737 E03815 HUYNH, AI KELLY 11/02/2023 $3,190.29 00030738 E03559 HUYNH, THI A 11/02/2023 $3,347.77 00030739 E04915 ITURRALDE, JENNIFER L 11/02/2023 $1,808.07 00030740 E04583 JENSEN, MICHAEL J 11/02/2023 $6,051.82 00030741 E02935 JENSEN, NICKOLAS K 11/02/2023 $5,349.97 00030742 E04587 JIMENEZ JR, EFRAIN A 11/02/2023 $4,744.55 00030743 E04781 JIMENEZ TAVAREZ, SERGIO J 11/02/2023 $2,279.64 Server Name: cognos.ggcity.org User Name: victoriac

Page 272 of 434 ends

CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Nov 2, 2023
Report Generated on Nov 2, 2023 9:59:34 AM Page 11
Check Vendor # Vendor Name Issue Date Check Amount
00030744 E04655 JOHNSON, CODY M 11/02/2023 $2,566.43 00030745 E03368 JOHNSON, JASON L 11/02/2023 $4,456.40 00030746 E03831 JORDAN, GERALD F 11/02/2023 $5,405.92 00030747 E04610 JORDAN, VICTORIA A 11/02/2023 $455.76 00030748 E04444 JULIENNE, PATRICK R 11/02/2023 $3,486.98 00030749 E04460 KAISER, GEORGE R 11/02/2023 $1,240.29 00030750 E04559 KELLEY, KRISTOFER D 11/02/2023 $4,139.50 00030751 E04353 KEUILIAN, SHELBY 11/02/2023 $2,310.82 00030752 E04663 KIM, CHAD B 11/02/2023 $3,117.39 00030753 E04641 KIM, EDWARD K 11/02/2023 $415.50 00030754 E04538 KIMBERLY, ALLYSON L 11/02/2023 $1,814.94 00030755 E03932 KIVLER, ROBERT J 11/02/2023 $3,063.60 00030756 E03389 KOLANO, JOSEPH L 11/02/2023 $3,518.81 00030757 E03294 KOVACS, LEA K 11/02/2023 $3,146.55 00030758 E05000 KOVACS, TIMOTHY M 11/02/2023 $3,136.02 00030759 E04669 KOVACS, TIMOTHY P 11/02/2023 $4,971.34 00030760 E03484 KUNKEL, PETER M 11/02/2023 $3,643.55 00030761 E04804 LADD, LAUREN M 11/02/2023 $3,028.40 00030762 E04857 LANG, MICHAEL J 11/02/2023 $4,023.29 00030763 E03511 LAZENBY, NICHOLAS A 11/02/2023 $3,410.63 00030764 E04877 LE, BAO TINH THI 11/02/2023 $2,112.86 00030765 E04021 LEE, RAPHAEL M 11/02/2023 $3,208.51 00030766 E03488 LEYVA, ERICK 11/02/2023 $4,416.87 00030767 E04541 LINK, DEREK M 11/02/2023 $3,976.27 00030768 E00030 LOERA JR, RAFAEL 11/02/2023 $5,527.68 00030769 E05033 LOFFLER, CHARLES H 11/02/2023 $5,645.57 00030770 E05066 LORD, MARK A 11/02/2023 $4,078.78 00030771 E04581 LOWEN, BRADLEY A 11/02/2023 $3,251.11 00030772 E04761 LUCATERO, JESSE A 11/02/2023 $3,056.89 00030773 E00027 LUKAS, STEVEN W 11/02/2023 $2,374.96 00030774 E04048 LUX, ROBERT D 11/02/2023 $2,367.03 00030775 E03663 LUX, RYAN M 11/02/2023 $3,603.82 00030776 E04772 LY, LINDALINH THU 11/02/2023 $2,299.16 00030777 E04661 MACHUCA, ROBERTO 11/02/2023 $4,488.10 00030778 E03752 MACY, TAYLOR A 11/02/2023 $3,451.82 Server Name: cognos.ggcity.org User Name: victoriac

Page 273 of 434 ends

CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Nov 2, 2023
Report Generated on Nov 2, 2023 9:59:34 AM Page 12
Check Vendor # Vendor Name Issue Date Check Amount
00030779 E04532 MANIACI, GIANLUCA F 11/02/2023 $4,311.82 00030780 E04435 MARCHAND, MATTHEW P 11/02/2023 $3,290.25 00030781 E01359 MARTINEZ JR, MARIO 11/02/2023 $6,175.77 00030782 E04974 MARTINEZ, JUANITA PATRICIA 11/02/2023 $2,779.95 00030783 E02792 MATA, RAQUEL D 11/02/2023 $1,141.16 00030784 E04656 MAZON, JORGE L 11/02/2023 $3,026.37 00030785 E02796 MCFARLANE, MARIA C 11/02/2023 $2,667.47 00030786 E06761 MEEKS, REBECCA S 11/02/2023 $4,372.14 00030787 E03826 MEERS, BRYAN J 11/02/2023 $3,149.85 00030788 E02655 MENDOZA CAMPOS, MELISSA 11/02/2023 $2,952.79 00030789 E03965 MIHALIK, DANNY J 11/02/2023 $3,135.64 00030790 E04865 MORIN, LINDA M 11/02/2023 $3,570.55 00030791 E04352 MORSE, JEREMY N 11/02/2023 $4,465.49 00030792 E01940 MORTON, NATHAN D 11/02/2023 $3,817.13 00030793 E04454 MOSER, MICHAEL A 11/02/2023 $2,024.13 00030794 E03929 MURILLO JR, RAUL 11/02/2023 $4,656.09 00030795 E04626 MURO, JASON M 11/02/2023 $5,276.55 00030796 E04577 MUSCHETTO, PATRICK J 11/02/2023 $2,917.68 00030797 E03422 NADOLSKI, THOMAS R 11/02/2023 $2,095.13 00030798 E05084 NAKANO HITZKE, SARAH V 11/02/2023 $2,825.47 00030799 E04111 NEELY, JACOB J 11/02/2023 $3,348.66 00030800 E05111 NGUYEN, HAU D 11/02/2023 $509.88 00030801 E02813 NGUYEN, TRINA T 11/02/2023 $2,669.37 00030802 E04540 NIKOLIC, ADAM C 11/02/2023 $11,060.84 00030803 E05146 NIZ, IXA N 11/02/2023 $1,877.95 00030804 E05054 NUNEZ, BREANNE S 11/02/2023 $3,507.21 00030805 E03367 OJEISEKHOBA, JOHN O 11/02/2023 $510.79 00030806 E03350 OLIVO, JOSHUA T 11/02/2023 $19,366.17 00030807 E04035 ORTIZ, STEVEN TRUJILLO 11/02/2023 $3,141.25 00030808 E03427 PANELLA, JOSEPH N 11/02/2023 $2,577.91 00030809 E04910 PAQUA, BRANDON J 11/02/2023 $2,384.92 00030810 E01948 PARK, BRANDY J 11/02/2023 $3,458.40 00030811 E02995 PAYAN, CRISTINA V 11/02/2023 $3,419.22 00030812 E00824 PAYAN, LUIS A 11/02/2023 $5,456.12 00030813 E04843 PEREZ, EMMANUEL 11/02/2023 $2,902.41 Server Name: cognos.ggcity.org User Name: victoriac

Page 274 of 434 ends

CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Nov 2, 2023
Report Generated on Nov 2, 2023 9:59:34 AM Page 13
Check Vendor # Vendor Name Issue Date Check Amount
00030814 E00145 PERKINS, JASON S 11/02/2023 $4,325.92 00030815 E04429 PHAM, PHILLIP H 11/02/2023 $3,221.39 00030816 E06938 PLUARD, DOUGLAS A 11/02/2023 $4,431.73 00030817 E03299 POLOPEK, COREY T 11/02/2023 $3,937.47 00030818 E05173 PONCE, GALILEA 11/02/2023 $524.44 00030819 E05050 QUANG, DENNIS 11/02/2023 $2,575.31 00030820 E04788 QUIROZ, LUIS A 11/02/2023 $2,165.14 00030821 E05100 RAABE, MATTHEW A 11/02/2023 $2,387.67 00030822 E03967 RAMIREZ OROZCO, SINDY 11/02/2023 $3,228.79 00030823 E04955 RAMIREZ, KAYLYN C 11/02/2023 $1,734.30 00030824 E03390 RAMIREZ, LUIS F 11/02/2023 $4,105.23 00030825 E05021 RAMIREZ, TERRA M 11/02/2023 $4,001.14 00030826 E04914 RAMOS, RODOLFO B 11/02/2023 $466.18 00030827 E03217 RANEY, JOHN E 11/02/2023 $3,443.84 00030828 E04941 RASMUSSEN, TRENTON L 11/02/2023 $10,992.91 00030829 E04659 REED, THOMAS S 11/02/2023 $2,672.38 00030830 E03486 REYES, RON A 11/02/2023 $3,300.52 00030831 E04911 RICHARDS, BRYANT D 11/02/2023 $2,353.10 00030832 E04437 RICHMOND, RYAN R 11/02/2023 $4,729.80 00030833 E04860 ROCHA, RUDY A 11/02/2023 $1,819.91 00030834 E04738 RODRIGUEZ, DANIEL 11/02/2023 $3,293.39 00030835 E04082 RODRIGUEZ, JENNIFER M 11/02/2023 $3,879.70 00030836 E05001 RODRIGUEZ, RYAN ELIJAH 11/02/2023 $2,286.51 00030837 E04438 ROGERS, CHRISTIN E 11/02/2023 $3,261.98 00030838 E04385 ROJAS, ASHLEY C 11/02/2023 $2,404.63 00030839 E04507 ROMBOUGH, JENNIFER V 11/02/2023 $2,311.81 00030840 E05176 RUFF, KATHERINE 11/02/2023 $562.91 00030841 E04552 RUZIECKI, ERIC T 11/02/2023 $3,708.14 00030842 E02845 SALAZAR, SEAN M 11/02/2023 $18,216.21 00030843 E04845 SALGADO JR., ALFREDO 11/02/2023 $2,638.45 00030844 E03297 SAMOFF, TANYA L 11/02/2023 $2,767.97 00030845 E02646 SANTANA, LINO G 11/02/2023 $8,336.63 00030846 E05086 SEELY, BRITTANY L 11/02/2023 $349.63 00030847 E03035 SEYMOUR, SUSAN A I 11/02/2023 $3,313.12 00030848 E04282 SHELGREN, CHRISTOPHER M 11/02/2023 $5,031.45 Server Name: cognos.ggcity.org User Name: victoriac

Page 275 of 434 ends

CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Nov 2, 2023
Report Generated on Nov 2, 2023 9:59:34 AM Page 14
Check Vendor # Vendor Name Issue Date Check Amount
00030849 E04616 SHIPLEY, AARON T 11/02/2023 $3,755.51 00030850 E02937 SHORROW, NICOLE D 11/02/2023 $4,277.30 00030851 E04864 SILVA, LEVI JOENIEL 11/02/2023 $2,468.57 00030852 E04576 SIMONS, SHAYLEN L 11/02/2023 $3,030.98 00030853 E04934 SLETTVET, HEATHER P 11/02/2023 $3,531.24 00030854 E02587 SOSEBEE, DANNY J 11/02/2023 $2,938.12 00030855 E03563 SPELLMAN, MARSHA D 11/02/2023 $3,022.13 00030856 E04500 STAAL, GAREY D 11/02/2023 $3,824.29 00030857 E03218 STARNES, CHARLES W 11/02/2023 $4,651.31 00030858 E03761 STEPHENSON III, ROBERT M 11/02/2023 $5,438.04 00030859 E04584 STROUD, BRIAN T 11/02/2023 $4,858.29 00030860 E02979 TESSIER, PAUL M 11/02/2023 $3,951.10 00030861 E04449 TRAN, SPENCER T 11/02/2023 $2,828.77 00030862 E05145 VACCARO, CHRISTIAN L 11/02/2023 $524.44 00030863 E02982 VAICARO, VINCENTE J 11/02/2023 $5,157.99 00030864 E05178 VALDEZ, GREGORY N. 11/02/2023 $704.38 00030865 E03053 VALENCIA, EDGAR 11/02/2023 $3,915.17 00030866 E04667 VAUGHN, CALEB I 11/02/2023 $1,751.74 00030867 E04977 VAZQUEZ, BRIAN M 11/02/2023 $393.34 00030868 E04434 VELLANOWETH, KIMBRA S 11/02/2023 $2,364.22 00030869 E04903 VIGIL, DANIEL C 11/02/2023 $2,693.19 00030870 E03022 VU, TUONG-VAN NGUYEN 11/02/2023 $2,550.61 00030871 E04730 VU, TYLER D 11/02/2023 $2,782.58 00030872 E01905 WAINWRIGHT, JONATHAN B 11/02/2023 $3,736.88 00030873 E03220 WARDLE, DENNIS 11/02/2023 $4,069.80 00030874 E03213 WARDLE, SANTA 11/02/2023 $2,017.61 00030875 E04758 WEYKER, CHRYSTAL L 11/02/2023 $2,209.75 00030876 E03305 WIMMER, ROYCE C 11/02/2023 $3,891.70 00030877 E04762 WREN, DANIELLE E 11/02/2023 $2,975.99 00030878 E04763 WRIGHT, SARAH A 11/02/2023 $527.23 00030879 E04856 XU, DUO 11/02/2023 $1,680.31 00030880 E03543 YELENSKY, SHANNON M 11/02/2023 $1,923.35 00030881 E04156 YERGLER, JOHN J 11/02/2023 $5,826.71 00030882 E04722 YNIGUEZ, COLE A 11/02/2023 $3,759.68 00030883 E09942 YOUNG, DAVID C 11/02/2023 $962.91 Server Name: cognos.ggcity.org User Name: victoriac

Page 276 of 434 ends

CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Nov 2, 2023
Report Generated on Nov 2, 2023 9:59:34 AM Page 15
Check Vendor # Vendor Name Issue Date Check Amount
00030884 E01978 ZMIJA, ADAM D 11/02/2023 $4,538.97 00030885 E04517 AGUIRRE, ALFRED J 11/02/2023 $3,386.06 00030886 E01626 AGUIRRE, ANSELMO 11/02/2023 $2,204.58 00030887 E05087 ALVAREZ, CARLOS J 11/02/2023 $1,850.07 00030888 E04631 ANDREI, IOAN 11/02/2023 $1,211.42 00030889 E05113 ARAUJO, ANTONIO 11/02/2023 $802.89 00030890 E04678 BABINSKI IV, SYLVESTER A 11/02/2023 $2,947.61 00030891 E05098 BARNESE, VINCENZO A 11/02/2023 $2,575.66 00030892 E05135 BARNHART, CHARLEY A 11/02/2023 $918.01 00030893 E04336 BECERRA, RODOLPHO M 11/02/2023 $2,329.67 00030894 E04972 BECERRA-SAMANIEGO JR, GABRIEL 11/02/2023 $1,592.32 00030895 E01255 BOS, MICHAEL C 11/02/2023 $2,330.81 00030896 E04650 BUCHLER, RAYMOND A 11/02/2023 $1,763.19 00030897 E05162 CAISEROS, CHRISTIAN 11/02/2023 $1,045.50 00030898 E01584 CANDELARIA, DANIEL J 11/02/2023 $4,403.85 00030899 E04300 CANO, EDGAR A 11/02/2023 $2,906.76 00030900 E03828 CANTRELL, JEFFREY G 11/02/2023 $2,559.01 00030901 E05063 CARRILLO, GEORGE 11/02/2023 $3,378.99 00030902 E03811 CARRISOZA, ALBERT J 11/02/2023 $2,757.34 00030903 E00916 CARTER, PHILLIP J 11/02/2023 $3,567.54 00030904 E04869 CHAVEZ, DAMIAN JESUS 11/02/2023 $816.66 00030905 E04551 CONTRERAS, GABRIELA R 11/02/2023 $2,729.03 00030906 E03518 COTTON, JULIE T 11/02/2023 $1,893.25 00030907 E03807 DE LA ROSA, VINCENT L 11/02/2023 $3,332.14 00030908 E05170 DELGADO REYES, JORGE A 11/02/2023 $672.57 00030909 E03736 DIBAJ, KAMYAR 11/02/2023 $3,606.94 00030910 E05122 DORADO, ANTHONY 11/02/2023 $931.23 00030911 E02515 DUVALL, RICK L 11/02/2023 $2,731.77 00030912 E04514 ESPINOZA, ERIC M 11/02/2023 $3,282.25 00030913 E03733 ESPINOZA, JULIA 11/02/2023 $1,362.65 00030914 E03405 FERNANDEZ, CECELIA A 11/02/2023 $1,336.93 00030915 E04990 FLORES, MITCHELL C 11/02/2023 $1,434.92 00030916 E05064 FOX, LUCAS 11/02/2023 $385.50 00030917 E05037 GAINES, JEFFREY S 11/02/2023 $923.93 00030918 E05010 GALVAN, EDGAR 11/02/2023 $983.26 Server Name: cognos.ggcity.org User Name: victoriac

Page 277 of 434 ends

CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Nov 2, 2023
Report Generated on Nov 2, 2023 9:59:34 AM Page 16
Check Vendor # Vendor Name Issue Date Check Amount
00030919 E04754 GARCIA, ALICIA R 11/02/2023 $1,538.41 00030920 E04677 GIROUARD, CASEY G 11/02/2023 $1,645.53 00030921 E05156 GOMEZ HERNANDEZ, RICARDO 11/02/2023 $978.27 00030922 E04629 GOMEZ, DIANA 11/02/2023 $1,148.78 00030923 E03341 GONZALEZ, JORGE 11/02/2023 $1,291.36 00030924 E03400 GREENE, MICHAEL R 11/02/2023 $2,440.03 00030925 E03685 GUZMAN, JESSE 11/02/2023 $619.54 00030926 E04299 HANSEN, AARON R 11/02/2023 $2,064.54 00030927 E03523 HARO, GLORIA A 11/02/2023 $1,303.87 00030928 E03759 HERNANDEZ, HERMILO 11/02/2023 $0.00 00030929 E04622 HOFER, ALICIA M 11/02/2023 $2,041.54 00030930 E02874 HOLMON III, ALBERT J 11/02/2023 $8,894.47 00030931 E04347 HSIEH, NICOLAS C 11/02/2023 $3,666.62 00030932 E03588 HUYNH, HUY HOA 11/02/2023 $2,466.12 00030933 E04831 ILFELD, MATTHEW D 11/02/2023 $1,769.13 00030934 E01907 JACOT, ROSEMARIE 11/02/2023 $2,392.57 00030935 E04296 JOHNSON, ERIC W 11/02/2023 $1,829.31 00030936 E04979 JURADO, MICHAEL 11/02/2023 $1,379.26 00030937 E04470 KAYLOR, BRENT 11/02/2023 $3,119.97 00030938 E04728 KHALIL, MARK M 11/02/2023 $2,568.39 00030939 E03534 KIM, SAMUEL K 11/02/2023 $4,380.43 00030940 E05115 KOUTSOYANOPULOS, ALDOCHRIS V 11/02/2023 $1,641.90 00030941 E04382 KWIATKOWSKI, BRYAN D 11/02/2023 $1,953.81 00030942 E02852 LADNEY, MARK W 11/02/2023 $2,906.41 00030943 E04769 LAMAS, LEONEL A 11/02/2023 $1,076.67 00030944 E03813 LEWIS, SHAN L 11/02/2023 $3,354.68 00030945 E03301 LEYVA, RAUL 11/02/2023 $4,479.24 00030946 E05065 LOMELI, JONATHAN 11/02/2023 $1,319.56 00030947 E05155 LOPEZ, MOISES 11/02/2023 $1,026.80 00030948 E05006 MARQUEZ, STEVEN ADAM 11/02/2023 $1,422.44 00030949 E05364 MARU, NAVIN B 11/02/2023 $5,335.58 00030950 E04665 MEJIA, DIEGO A 11/02/2023 $2,166.98 00030951 E03493 MENDEZ, RIGOBERTO 11/02/2023 $2,510.50 00030952 E04998 MENDOZA, LAURA 11/02/2023 $1,078.81 00030953 E04724 MOORE, DOUGLAS A 11/02/2023 $2,849.16 Server Name: cognos.ggcity.org User Name: victoriac

Page 278 of 434 ends

CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Nov 2, 2023
Report Generated on Nov 2, 2023 9:59:34 AM Page 17
Check Vendor # Vendor Name Issue Date Check Amount
00030954 E04827 MORELAND, ANDREW J 11/02/2023 $1,679.23 00030955 E04222 MOSS, DANIEL C 11/02/2023 $1,753.64 00030956 E01243 MURRAY JR, WILLIAM E 11/02/2023 $6,983.24 00030957 E04634 NAVARRO, JUAN C 11/02/2023 $3,337.83 00030958 E04969 ORNELLAS, MICHAEL 11/02/2023 $1,674.96 00030959 E03378 ORTIZ, STEVEN T 11/02/2023 $2,624.06 00030960 E04999 ORTUNO, ANIBAL 11/02/2023 $2,073.44 00030961 E05114 PACE, FRANK D 11/02/2023 $923.73 00030962 E03754 PINKSTON, RICHARD L 11/02/2023 $2,641.85 00030963 E05112 POE, HEIDI L 11/02/2023 $2,983.23 00030964 E04567 POWELL, AUSTIN H 11/02/2023 $2,764.56 00030965 E03799 QUIROZ, ROLANDO 11/02/2023 $3,095.96 00030966 E05031 RAMIREZ, AACIN 11/02/2023 $2,089.18 00030967 E04572 REED, MELVIN P 11/02/2023 $2,064.02 00030968 E02058 REYES, DELFRADO C 11/02/2023 $1,356.41 00030969 E04295 ROBLES, RAFAEL 11/02/2023 $2,076.67 00030970 E04563 RODRIGUEZ, ADRIANNA M 11/02/2023 $1,782.88 00030971 E05141 RODRIGUEZ, JOY R 11/02/2023 $921.07 00030972 E05004 RUELAS, SERGIO 11/02/2023 $1,925.50 00030973 E04289 SALDIVAR, RICARDO 11/02/2023 $2,659.76 00030974 E04505 SANTOS, MICHAEL F 11/02/2023 $3,502.01 00030975 E05166 SEVELU, FAASEGA J 11/02/2023 $978.27 00030976 E04836 SOTO, WILLIAM A 11/02/2023 $2,132.96 00030977 E05089 STAIR, DEAN T 11/02/2023 $1,008.79 00030978 E05171 STRAMBEANU, ALEXANDRU E 11/02/2023 $673.01 00030979 E03091 SUDDUTH, STEPHEN D 11/02/2023 $3,058.90 00030980 E01625 TAPIA, LUIS A 11/02/2023 $3,115.51 00030981 E04756 TARIN, ALEXIS P 11/02/2023 $658.83 00030982 E03239 TAUANU U, STEVE J 11/02/2023 $0.00 00030983 E05154 TELLO, ALEJANDRO 11/02/2023 $744.46 00030984 E04773 THURMAN JR, EDWIN O 11/02/2023 $1,097.31 00030985 E08679 THURMAN, RODERICK 11/02/2023 $1,991.90 00030986 E04825 TRUJILLO, JOSEPH E 11/02/2023 $1,848.61 00030987 E02482 UPHUS, MARK P 11/02/2023 $5,431.41 00030988 E03681 VASQUEZ, JOSE A 11/02/2023 $3,982.63 Server Name: cognos.ggcity.org User Name: victoriac

Page 279 of 434 ends

CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Nov 2, 2023
Report Generated on Nov 2, 2023 9:59:34 AM Page 18
Check Vendor # Vendor Name Issue Date Check Amount
00030989 E05136 VASQUEZ, PEDRO 11/02/2023 $1,783.93 00030990 E05134 VEGA, ERIC J 11/02/2023 $918.01 00030991 E02942 VERA, EVARISTO 11/02/2023 $2,050.54 00030992 E03727 VERGARA NEAL, ANA G 11/02/2023 $3,198.79 00030993 E05093 VIRAMONTES, ALEXANDRA 11/02/2023 $2,892.91 00030994 E01580 VU, DAI C 11/02/2023 $4,744.70 00030995 E04362 VU, KHANG L 11/02/2023 $3,900.95 00030996 E04006 WILLIAMS, RICHARD L 11/02/2023 $3,603.39 00030997 E05023 YNIGUEZ, KARISSA N 11/02/2023 $2,630.83 00030998 E05169 ZAMORA, JOEL D 11/02/2023 $1,012.42 00030999 E03436 ZIEGLER, RICK S 11/02/2023 $989.43 00031000 E03917 ALLEN, CHRISTOPHER L 11/02/2023 $77.20 00031001 E04163 AMBRIZ GARCIA, EDWARD D 11/02/2023 $1,558.95 00031002 E04063 BERGER, JAN 11/02/2023 $2,677.99 00031003 E00651 BERMUDEZ, ROBERT P 11/02/2023 $3,618.65 00031004 E03495 BLAS, VICTOR T 11/02/2023 $2,894.39 00031005 E00070 CANNON, TIM P 11/02/2023 $3,538.21 00031006 E04365 DAN, CARINA M 11/02/2023 $2,685.62 00031007 E04440 DAVIS, RYAN H 11/02/2023 $1,689.69 00031008 E03145 DE LA ROSA, FRANK X 11/02/2023 $0.00 00031009 E03051 DIEMERT, RONALD W 11/02/2023 $2,586.46 00031010 E02718 ESCOBAR, CHRIS N 11/02/2023 $4,072.47 00031011 E03688 GLENN, JEREMY J 11/02/2023 $111.09 00031012 E01618 GOMEZ, JOSE 11/02/2023 $2,449.55 00031013 E02701 GONZALEZ, ALEJANDRO 11/02/2023 $6,656.86 00031014 E03763 GRIFFIN, LARRY 11/02/2023 $3,761.48 00031015 E04828 GUERRERO, MICHAEL V 11/02/2023 $2,094.45 00031016 E04018 HAENDIGES, ROBERT A 11/02/2023 $2,303.56 00031017 E03575 HART, RYAN S 11/02/2023 $2,198.70 00031018 E03399 HOWENSTEIN, FRANK D 11/02/2023 $2,874.64 00031019 E03406 HUY, EDWARD A 11/02/2023 $3,234.43 00031020 E03446 JIMENEZ, VIDAL 11/02/2023 $4,096.07 00031021 E04782 JIN, LIYAN 11/02/2023 $2,678.66 00031022 E03254 KIRZHNER, ALLEN G 11/02/2023 $3,291.47 00031023 E03988 LI, REBECCA PIK KWAN 11/02/2023 $4,231.84 Server Name: cognos.ggcity.org User Name: victoriac

Page 280 of 434 ends

CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Nov 2, 2023
Report Generated on Nov 2, 2023 9:59:34 AM Page 19
Check Vendor # Vendor Name Issue Date Check Amount
00031024 E02063 MA AE, DAVID 11/02/2023 $2,266.48 00031025 E03249 MANSON, RAQUEL K 11/02/2023 $3,049.21 00031026 E04837 MARTINEZ, ALFREDO 11/02/2023 $2,166.02 00031027 E02124 MEISLAHN, TYLER 11/02/2023 $2,171.43 00031028 E04403 MONTGOMERY, JESSE K 11/02/2023 $2,420.62 00031029 E03590 MOYA JR, STEVEN J 11/02/2023 $63.32 00031030 E03519 MURAD, BASIL G 11/02/2023 $2,970.43 00031031 E03144 NATLAND, KIRK L 11/02/2023 $1,666.30 00031032 E04291 NGUYEN, DUC TRUNG 11/02/2023 $2,878.26 00031033 E04904 NGUYEN, LISA 11/02/2023 $1,051.51 00031034 E03221 NICOLAE, CORNELIU 11/02/2023 $3,217.80 00031035 E04210 NUNES, BRANDON S 11/02/2023 $2,039.84 00031036 E03923 ORNELAS, ANDREW I 11/02/2023 $2,716.09 00031037 E03582 ORTEGA, DAVID A 11/02/2023 $2,977.66 00031038 E03578 PASILLAS, CELESTINO J 11/02/2023 $3,219.04 00031039 E03170 PEARSON, WILLIAM F 11/02/2023 $2,651.51 00031040 E05161 PIINUU, EVANDEMITRI 11/02/2023 $1,490.27 00031041 E04805 POLIDORI, JESSICA J 11/02/2023 $3,676.11 00031042 E02500 PORRAS, STEPHEN 11/02/2023 $3,434.73 00031043 E07590 RUITENSCHILD, LES A 11/02/2023 $3,465.18 00031044 E03926 RUIZ, JONATHAN 11/02/2023 $3,460.05 00031045 E05165 SANCHEZ, ALLEN J 11/02/2023 $850.17 00031046 E07690 SANTOS, ALEXIS 11/02/2023 $2,217.73 00031047 E07692 SARMIENTO, ADRIAN M 11/02/2023 $3,395.60 00031048 E04956 SON, TOMMY T 11/02/2023 $2,121.91 00031049 E04301 TALAMANTES JR, ALBERT 11/02/2023 $2,441.22 00031050 E04121 TRAN, MINH K 11/02/2023 $2,593.25 00031051 E08881 VALENZUELA, ALEJANDRO N 11/02/2023 $4,188.13 00031052 E01882 VIRAMONTES, JESSE 11/02/2023 $2,669.79 00031053 E04195 WOLLAND, RONALD J 11/02/2023 $2,307.88 00031054 E09940 YERGENSEN, VICTOR K 11/02/2023 $2,347.03 00031055 E09954 ZAVALA, JOHN 11/02/2023 $3,995.19 00031056 E05099 BECK, CRAIG A 11/02/2023 $3,459.92 00031057 E00740 BLODGETT, GREG 11/02/2023 $5,565.02 00031058 E01338 CARRENO, SHAUNA J 11/02/2023 $2,281.77 Server Name: cognos.ggcity.org User Name: victoriac

Page 281 of 434 ends

CITY OF GARDEN GROVE
GGFEFM002 Warrant Register Payroll
Check Dates Nov 2, 2023
Report Generated on Nov 2, 2023 9:59:34 AM Page 20
Check Vendor # Vendor Name Issue Date Check Amount
00031059 E03808 CHENG, ALANA R 11/02/2023 $3,034.08 00031060 E03353 COVARRUBIAS, MONICA 11/02/2023 $3,803.59 00031061 E05102 FLORES CRUZ, LAURA 11/02/2023 $2,054.17 00031062 E03697 GUERRERO, PAUL 11/02/2023 $8,823.38 00031063 E04750 HO, VY D 11/02/2023 $1,978.42 00031064 E04968 HONG, SEUNGBUM 11/02/2023 $1,933.69 00031065 E02612 KLOESS, VILMA C 11/02/2023 $2,938.26 00031066 E01949 LE, IVY 11/02/2023 $2,014.87 00031067 E05092 LE, LINH D 11/02/2023 $2,728.63 00031068 E01280 LE, TAMMY 11/02/2023 $1,775.57 00031069 E03617 LEE, GRACE E 11/02/2023 $3,091.17 00031070 E05159 LUNA-REYNOSA, URSULA 11/02/2023 $6,555.36 00031071 E05180 MEDINA, MELANIE 11/02/2023 $1,275.89 00031072 E05828 MIDDENDORF, LINDA 11/02/2023 $3,716.05 00031073 E02895 MOURE, SVETLANA 11/02/2023 $2,650.73 00031074 E05181 NGUYEN, DAVID 11/02/2023 $785.15 00031075 E03255 NGUYEN, PHUONG VIEN T 11/02/2023 $2,324.29 00031076 E02560 NGUYEN, QUANG 11/02/2023 $2,844.47 00031077 E01286 NGUYEN, TINA T 11/02/2023 $2,247.57 00031078 E03541 PHI, THYANA T 11/02/2023 $3,027.09 00031079 E05106 ROMERO, ALEX 11/02/2023 $1,977.13 00031080 E04408 THRONE, TIMOTHY E 11/02/2023 $2,442.25 00031081 E02543 TO, TANYA L 11/02/2023 $1,765.32 00031082 E01971 TRAN, CUONG K 11/02/2023 $2,505.89 00031083 E02056 TRUONG, ELAINE 11/02/2023 $1,902.41 00031084 E02562 VO, THANH-NGUYEN 11/02/2023 $1,806.72 00031085 E05104 YANG, DANA DAEUN 11/02/2023 $2,257.29 EFT - Total $1,741,405.01
Overall - Total $1,749,792.70
Server Name: cognos.ggcity.org User Name: victoriac

Page 282 of 434 ends

Agenda Item - 5.a.

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM
To: Lisa L. Kim From: Ursula Luna-Reynoso
Dept.: City Manager Dept.: Economic Development & Housing Authority
Subject: Adoption of a Resolution approving an
amendment to the Amended and
Restated Agreement with AAA Oil, Inc.
dba California Fuels and Lubricants.
(Action Item)
Date: 11/14/2023

OBJECTIVE
In 2016 the City Council approved the Amended and Restated Operating Covenant Agreement (the “2016 Agreement”) with AAA Oil, Inc. dba California Fuels and Lubricants (“CFL”), located at 11621 and 11671 Westminster Avenue in Garden Grove (the “Site”). The purpose of this report is to provide information in connection with the City Council's consideration of an Amendment to the 2016 Agreement (the “Amended 2016 Agreement”).

BACKGROUND
CFL was founded in Garden Grove with only 2 employees in September 2004, dedicated to delivering high-quality name brand petroleum products and services. Today, CFL is one of the City’s top ten (10) highest sales tax producers. In August 2013, the City and CFL entered into an Operating Covenant Agreement (the “Original Agreement”) pursuant to which the City agreed to share 50% of all incremental sales tax revenues generated by CFL above those then being generated (establishing an annual sales tax base of $600,000), up to a maximum of $2,000,000, for a period of 10 years. In addition, CFL agreed to hire additional employees, make a $2,000,000 capital investment to expand its business and provide certain operating covenants to ensure CFL remained in Garden Grove.

In 2015, CFL approached the City requesting to renegotiate the Original Agreement to allow CFL to be more competitive in the fuel industry and on May 12, 2015, the City Council directed staff to negotiate an amendment to the Original Agreement with CFL for the Council’s consideration. On January 19, 2016, the City entered into an Amended and Restated Operating Covenant Agreement (the "2016 Agreement") with CFL pursuant to which the annual sales tax base decreased from $600,000 to $200,000 and sales tax revenues above $200,000 were split between the City and CFL according to the following revised structure:

Portion of Annual Sales Tax
Revenues Generated by
Business
Percentage
Retained by City
Percentage
Payable to
Company
First $200,000 100% 0%
Next $1,800,000 30% 70%
Next $1,000,000 40% 60%
Next $2,000,000 50% 50%
Next $2,000,000 45% 55%
Amount in Excess of $7,000,000 35% 65%

CFL has recently approached the City to initiate discussions for revising the Amended Agreement to be more competitive in the fuel industry. On June 16, 2023 the City received a formal request from CFL (Attachment 1).

DISCUSSION
The City desires to create and retain jobs and employment within Garden Grove. The City has the ability to implement AB 562 (codified as Government Code Section 53083), a Statewide economic development tool for the purpose of allowing local jurisdictions to induce economic development for the creation and maintenance of jobs. Pursuant to Section 53083, a report (the "Summary Report") (Attachment 2) has been prepared summarizing key components of the proposed transaction. The Summary Report has been made available to the public as it is posted to the City's website and will remain for the duration of the term of the Amended 2016 Agreement, if approved by the City Council.

Page 283 of 434 ends

Agreement, if approved by the City Council.

The City and CFL are proposing to amend the 2016 Agreement to further encourage CFL to retain its headquarters and business operations within Garden Grove and increase their investment within the community.

The City is proposing to provide financial assistance in the form of an economic development subsidy to CFL as included in the Amended 2016 Agreement (Attachment 3) and further described later in this staff report. As mentioned above, CFL was founded in Garden Grove in September 2004 with only 2 employees. Today, the company employs approximately 80 employees, doubling their employee count from the 2016 Agreement. CFL’s sales have increased by over 350% since 2016, keeping CFL firmly in the top 10 sales tax producers for the City.

The proposed Amended 2016 Agreement makes two primary changes; 1) increases the sales tax base from $200,000 to $312,000 and 2) eliminates the tiered approached established in the 2016 Agreement to a one-tier split of 30% to the City and 70% to CFL for all sales tax revenue generated above $312,000. If CFL continues to perform status quo, the proposed formula will result in increased sales tax revenue to the City. While the 30% City share after the $312,000 base is less than the percentage allowed under the 2016 Agreement, CFL has not achieved that level of sales to date. This Amended 2016 Agreement would provide the opportunity for CFL to grow their business and achieve higher sales. If CFL can achieve those higher sales, a smaller percentage of higher sales achieves more sales tax revenue for the City.

City Benefits

As part of these modifications, CFL would extend the proposed term of the operating covenant by 20 years (from 2036 to 2056) and commit to maintaining its business in Garden Grove as its point-of-sale through June 30, 2056. CFL has estimated that this Amended 2016 Agreement will enable CFL to expand into new markets, invest additional capital dollars in Garden Grove (minimum of an additional $10 million), and hire and retain local employees. CFL anticipates its revenues will increase by over 350% due to increasing sales volume made possible by the Amended 2016 Agreement. Based on CFL projections, the City would receive approximately $267 million in sales tax revenue through 2056. CFL also projects the addition of approximately one hundred (100) new jobs over a period of ten (10) years. New jobs are anticipated to include drivers, dispatchers, logistics office staff, accounting and IT positions. CFL will work closely with the City to prioritize the hiring of Garden Grove residents.

The sale of petroleum products is conducted by a limited number of companies in California all competing for market share. The industry is currently seeing consolidation opportunities. The purpose of the proposed Amended 2016 Agreement is to induce CFL to remain in Garden Grove through 2056, make significant capital investment of its own funds in its business in order to increase the volume of sales in Garden Grove, and increase employment opportunities in Garden Grove. If the anticipated expansion and sales growth occurs as a result of CFL's capital investment, the Amended 2016 Agreement will result in the generation of significant additional sales tax revenues to the City’s General Fund, the creation of additional employment opportunities for residents of the City, the long-term maintenance of the Site in a first class condition, and other tangible and intangible benefits to the City.

FINANCIAL IMPACT
The proposed Amended 2016 Agreement increased the sales tax base from $200,000 to $312,000. While the 30% City share after the increased base is less than the percentage allowed under the 2016 Agreement, CFL has not achieved that level of sales to date. Therefore, there is no negative financial impact to the City if CFL performs status quo. If CFL’s revenue growth projections are realized, the approximately $267 million in sales tax revenues from CFL’s business would be generated through 2056 with approximately $192 million to CFL and the City receiving $75 million under the sales tax sharing structure in the proposed Amended 2016 Agreement. Without the Amended 2016 Agreement, there is a risk that CFL would not realize the opportunity to expand their market share and could choose to relocate in the future, in which case the City would forfeit sales tax revenues attributable to CFL.

RECOMMENDATION
It is recommended that the City Council:

Conduct a Public Hearing;

Adopt the attached Resolution making certain findings and approving the Amended 2016 Agreement with AAA Oil, Inc. dba California Fuels and Lubricants; and

Authorize the City Manager to execute the Amended 2016 Agreement, including any minor modifications as appropriate, and any other pertinent documents necessary to effectuate and/or implement the Agreement on behalf of the City.

Page 284 of 434 ends

•
•
•
ATTACHMENTS:

Description Upload
Date Type File Name
CFL
Request
Letter
11/7/2023 Backup
Material CFL_request_letter_061223.pdf
AB 562
Report 11/7/2023 Backup
Material 11.14.23_Econ_Dev_Subsidy_Summary_Report.docx
Amended
2016
Agreement
11/8/2023 Agreement First_Amendment_to_the_Amended_and_Restated_Operating_Covenant_Agreement_with_AAA_Oil_Final.docx Resolution 11/8/2023 Resolution 11.14.23_Resolution_Approving_Amended_and_Restated_Operating_Covenant_Agreement_AAA_Oil__Inc_final.docx

Page 285 of 434 ends

June 13, 2023

Mrs. Lisa L. Kim
City of Garden Grove
11222 Acacia Parkway
Garden Grove, CA 92840

Subject: Request to amend sales tax revenue agreement

Dear Lisa,
As a follow‐up to our prior meetings, California Fuels and Lubricants (CFL) wishes to formally request an amendment be made to the existing sales tax revenue agreement with the City of Garden Grove. As discussed, CFL has lined out a long‐term strategy focused on a high growth trajectory. The primary targets of this growth will be commercial customers predominant ly in Southern California. The two primary marketers that CFL will compete against on a daily basis, will be SC Fuels in Orange and Amber Resources in Long Beach. Both entities are strong local suppliers and have existing sales tax revenue programs with their host municipalities. In implementing this growth strategy, CFL will be investing heavily in new assets, personnel and back‐office infrastructure.

This new investment will be a strong follow‐up to that which has already been made since 2015 ($12.7mil). CFL is looking for support from the City to assist in this aggressive investment program, through an increase to an 85% share of any and all business over the last three‐year average (2020‐ 2022). This guarantees Garden Grove that the status quo continu es and CFL is supported on the hard‐ fought business that is to come. In essence, the existing agreement only needs to have an amendment added, identifying this new tier. The three‐year average becomes the par 70% CFL share and above that is subject to 85%. Please see the proposed thresholds below:

Schedule to Replace "Exhibit B"
on Operating Covenant Agreement
Dated January 26, 2016

Portion of Quarterly Sales
Tax Revenues Percentage
First $50,000 X 0% = A
Next $300,000 *** X 70% = B
Above $350,001 X 85% = C
*** Based on three‐year average 2020 ‐ 2022

CFL values the relationship it has with the City and this would further galvanize the business partnership that already exists. The City of Garden Grove is CFL’s primary candidate municipality to work together with. Hopefully, this request is well received and there is no need to entertain other options.

Page 286 of 434 ends

~"") Cf:1,~l!79;~f,l~A
~~
Please feel free to contact me if you have any questions. We look forward to our next meeting on June 15th.

S i n c e r e l y ,
Charles McDaniel
C h a r l e s M c D a n i e l
President, California Fuels and Lubricants

Page 287 of 434 ends

City of Garden Grove 1 November 14, 2023

ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083

FOR A SALES TAX SHARING AGREEMENT

BY AND BETWEEN CITY OF GARDEN GROVE
AND AAA OIL, INC. dba CALIFORNIA FUELS AND LUBRICANTS

Pursuant to Government Code Section 53083, the City Council of the City of Garden Grove (“City”) must hold a noticed public hearing and, prior to the public hearing, provide certain information in written form and available to the public and through the City’s website regarding a proposed economic development subsidy to the benefit of the City and AAA Oil, Inc., dba California Fuels and Lubricants (“CFL”). In 2013 the City entered into an Operating Covenant Agreement (“Original Agreement”) with CFL to share sales tax proceeds to induce CFL to make certain working capital improvements and to locate its business in Garden Grove. The Original Agreement was Amended and Restated in 2016 (the “2016 Agreement”) to provide for additional working capital investment, to extend the length of the term, and to revise the method of calculating the sales tax sharing formula. A proposed Amended 2016 Agreement is being considered by the Garden Grove City Council to provide for even more working capital investment, to further extend the length of the term, and to again revise the method of calculating the sales tax sharing formula. Notice was published on the City’s website for a public hearing to be held on November 14, 2023.

The purpose of this report is to provide the information required pursuant to Government Code Section 53083 in regards to the Amended 2016 Agreement. This report shall remain available to the public and posted on the City’s website until the end date of the economic development subsidy, as further described in Number 2 below.

1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy.

The Agreement is with AAA Oil, Inc., dba California Fuels and Lubricants, a California corporation: 11621 and 11671 Westminster Avenue, Garden Grove, CA.

2. The start and end dates and schedule, if applicable, for the economic development subsidy.

The start date of the economic development subsidy began on August 13, 2013, was amended and restated on January 26, 2016 and will again be amended on November 14, 2023, if approved by the City Council, and the end date will be June 30, 2056. The economic development subsidy will be paid quarterly, within 30 days of the end of each quarter.

3. A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.

The economic development subsidy, in all three iterations, is a portion of base sales tax accruing to the City with some formula of tax sharing after the City collects the base threshold.

Original Agreement (2013): City retains $600,000 base and then shares 50% of sales tax proceeds after base is achieved. CFL did not produce sales tax in excess of $600,000 base and therefore no sales tax was ever shared under the Original Agreement.

Page 288 of 434 ends

City of Garden Grove 2 November 14, 2023
2016 Agreement: City retains $200,000 base and then shares sales tax proceeds on a tiered scale as follows:

Portion of Annual Sales Tax Revenues
Generated by Business
Percentage Retained by
City
Percentage Payable to
Company
First $200,000 100% 0%
Next $1,800,000 30% 70%
Next $1,000,000 40% 60%
Next $2,000,000 50% 50%
Next $2,000,000 45% 55%
Amount in Excess of $7,000,000 35% 65%

From 2016 to date, CFL did not bring in sales tax greater than $1.8 million annually and therefore only the 30%/70% tier was utilized to share sales tax proceeds. During this period the City received approximately $3 million in sales tax proceeds while CFL received approximately $3.9 million in sales tax proceeds.

Proposed Amended 2016 Agreement: City retains $312,000 base and then shares sales tax proceeds with 75% going to CFL and the City retaining 25%. Through the term of the proposed amendment (June 30, 2056), it is anticipated that CFL will receive approximately $192.1 million of sales tax proceeds (average $6 million annually).

4. A statement of the public purpose for the economic development subsidy.

CFL delivers high -quality name brand petroleum products and services throughout Southern California and Garden Grove is CFL’s point-of-sale for sales tax purposes. CFL was founded in Garden Grove September 2004 with only 2 employees. CFL is one of the City’s top ten (10) highest sales tax producers.

In exchange for the changes included in the proposed Amended 2016 Agreement, th e term of the operating covenant would be extended for 20 years (from 2036 to 2056) and CFL would agree to continue to keep its business in Garden Grove and designate Garden Grove as its point -of-sale through June 30, 2056. CFL has estimated that this Amended 2016 Agreement will enable CFL to expand into new markets, invest additional capital dollars in Garden Grove (minimum of $10 million) , and hire and retain local employees. CFL anticipates its revenues will increase by over 350% due to increasing sales volume made possible by the Amended 2016 Agreement. Based on CFL projections, the City would receive approximately $266.9 million (present value) in sales tax revenue through 2056.

Page 289 of 434 ends

City of Garden Grove 3 November 14, 2023
sales in Garden Grove, and increase employment opportunities in Garden Grove. If the anticipated expansion and sales growth occurs as a result of CFL's capital investment, the Amended 2016 Agreement will result in the generation of significant additional sales tax revenues to the City’s General Fund, the creation of additional employment opportunities for residents of the City, the long-term maintenance of the Site in a first class condition, and other tangible and intangible benefits to the City.

5. The projected tax revenue to the local agency as a result of the economic development subsidy.

Projections indicate that, over the 30+ year period of the Amended 2016 Agreement, roughly $266.9 million ($8.3 million annual average) in present value dollars of additional sales tax revenue could be received by the City. Of this amount, the City would pay CFL approximately $192.1 million in present value terms.

6. The estimated number of jobs created by the economic development subsidy, broken down by full- time, part-time and temporary positions.

CFL also projects the addition of approximately one hundred (10 0) new jobs over a period of ten (10) years. New jobs are anticipated to include drivers, dispatchers, logistics office staff, accounting and IT positions. CFL will work closely with the City to prioritize the hiring of Garden Grove residents.

Page 290 of 434 ends

-1-

FIRST AMENDMENT TO THE

AMENDED AND RESTATED OPERATING COVENANT AGREEMENT

This Amendment to the Amended and Restated Operating Covenant Agreement ("Agreement"), dated for purposes of identification only as of November 14, 2023, is made and entered into by and between the CITY OF GARDEN GROVE, a California municipal corporation (the "City"), and AAA OIL, INC. , dba California Fuels and Lubricants, a California corporation ("Company"). City and Company are sometimes referred to in this Agreement collectively as "Parties," and individually as a "Party."

RECITALS
A. The Parties previously entered into that certain Operating Covenant Agreement, dated August 13, 2013 (th e “Original Agreement”), as amended by that certain Amended and Restated Operating Covenant Agreement, dated January 26, 2016 (the “2016 Agreement”) pertaining to operations of the Company occupying a portion of that certain real property located at 11621 and 11671 Westminster Avenue in the City of Garden Grove (the "Site "), on which Company currently operates a petroleum products distribution business (the "Business") and which is the current point of sale for the Business for purposes of the Bradley Burns Uniform Local Sales and Use Tax Law (the “Sales and Use Tax Law”). Company's Business is one of the largest sales tax generators in the City.

B. The Parties desire to amend the 2016 Agreement to provide for an additional capital investment in the Business by the Company, to extend the length of the Covenants Consideration Accrual Period and Operating Period, and to revise the method of calculating the Covenants Consideration.

C. Pursuant to the Original Agreement and the 2016 Agreement, Company agreed to invest over ten million dollars ($10,000,000) in working capital for the Business and to expand the scope of the Business's operations. In order to further expand the Business’s operations, Company intends to invest at least ten million dollars ($10 ,000,000) in the Business in addition to the commitment made in the Original Agreement and the 2016 Agreement . Company and City anticipate that Company's expanded Business, as operated in accordance with this Amended 2016 Agreement, will generate additiona l Sales Tax R evenues and will also create significant employment opportunities and other tangible and intangible benefits to the City.

D. The City previously determined that the imposition of certain operating covenants and restrictive cov enants with respect to the Business and the Site constitutes a valid public purpose, and therefore the City desires to extend the term of such operating covenants and restrictive covenants with respect to the Business and the Site and, subject to the terms hereof, Company is willing to enter into and be bound by such operating covenants and restrictive covenants.

E. In consideration for Company’s agreement to be bound by such operating covenants and restrictive covenants , and of the additional Sales Tax Revenues to be paid by the Company for the benefit of the City, which the City would not otherwise realize, and in order to induce the Company to retain the Business in Garden Grove, the City has agreed to make certain

Page 291 of 434 ends

-2-
payments to the Company (referred to herein as " Covenants C onsideration") through June 30 , 2056. The City and the Company agree the amount of each payment required to be made by the City hereunder is a fair exchange for the consideration actually furnished pursuant to this Agreement by Company during each fiscal year of the City in which payment is made, that each payment to be made by the City hereunder has been calculated so that it will not exceed the resources available to make such payment, and further that in no event shall the City be immediately indebted to Company for the aggregate payments herein provided.

F. The purpose and intention of the City in paying the Covenant Consideration is solely to induce Company to make the above-described capital investment in order to expand its Business within the City, and to continue to locate and operate the expanded Business on the Site until at least June 30, 2056, so as to increase the amount of Local Sales Tax Revenues generated in the City, to further the continued maintenance of the Site and the well-being of the citizens at large, and to increase local employment opportunities.

G. The Covenants Consideration to be paid by the City is solely the result of arms - length negotiations by and be tween the City and the Company , and apart from such negotiations and this Agreement, which is the result thereof, is not otherwise required to be provided.

H. The Company anticipates and expects that the Covenants Consideration to be paid by the City pursuant hereto fore seeably will res ult in benefits to the Company in a n amount commensurate with its value at the time of each payment.

NOW THEREFORE, in consideration of the foregoing Recitals that are a substantive part hereof and the covenants herein contained, and in consideration of the terms and conditions of this Agreement, City ad Company agree as follows:

1. Section 1. Definitions. Subsections l. and x. are amended as follows:
l. Covenants Consideration Accrual Period. "Covenants Consideration Accrual Period" means the period commencing on the Effective Date and continuing until and expiring on June 30, 2056 or upon the earlier termination of this Agreement.
x. Operating Period. "Operating Period" means the period commencing on the Effective Date and continuing until and expiring on June 30, 2056 or upon earlier termination of this Agreement.

2. Section 4. Operating Covenants and Restrictive Covenants. Subsection a. is rescinded in its entirety and replaced as follows:
a. Additional Investment to Expand Business . Company hereby covenants and agrees that, between the period that commenced on November 1, 2023 and continuing up and through December 31, 20 33, it will make an Additional Capital Investment of no less than Ten Million Dollars ($10,000,000) for purposes of expanding the Business on the Site, excluding funds spent by Company, if any, on co nstruction and/or development on the Site. Such Additional Capital Investment shall be wholly in addition to the Ten Million Dollar ($10,000,000) investment in the Business required pursuant to the Original Ag reement and 2016 Agreement , which

Page 292 of 434 ends

-3-
Company represents has already been made. Company hereby agrees that it will not allocate or use any Covenant Consideration paid to Company by City for construction and/or development on the Site. Upon request of City, Company shall provide documents evidencing its compliance with this Subsection 4.a.

3. Section 5. Covenants Consideration. Subsections a. and b. are rescinded in their entirety and replaced as follows:
a. Covenants Consideration ; Determined on an Annual Basis . I n consideration of Company's compliance with the Covenants, subject to availability and appropriation by the Garden Grove City Council of sufficient funds, commencing as of January 1, 2024, City agrees to pay Company Covenants Consideration in an amount, calculated as illustrated in Table 1, below, and determined on an annual basis, equal to a portion of all Sales Tax Revenues generated by the Business during each Fiscal Year in excess of Three Hundred Twelve Thousand Dollars ($312 ,000) (the " Annual Covenants Consideration Amount" ). In the event there is insufficient Sales Tax Revenues to trigger the payment of Covenants Consideration in any Fiscal Year, such insufficiency shall not carry forward to any future years.

Table 1
Portion of Annual Sales Tax
Revenues Generated by Business
Percentage Payable to Company as
Covenants Consideration
Amount in Excess of $312,000 75%

b. Covenants Consideration; Quarterly Payments. For each Fiscal Year, the City shall pay the Annual Covenants Consideration Amount to Company in four (4) separate quarterly Covenants Consideration payments corresponding to the amount of Sales Tax Revenues generated during each Quarter of the Fiscal Year (the "Quarterly Payments"). The amount of each Quarterly Payment for the first three (3) quarters of a ny Fiscal Year shall be determined by the City by multiplying (i) the amount of Sales Tax Revenues generated by the Business during the applicable Quarter by (ii) the percentages set forth in Table 2, below (the product of which is referred to herein and in Exhibit "B" as the "Quarterly Covenants Consideration Amount").

Table 2
Portion of Quarterly Sales Tax
Revenues Generated by Business
Percentage Payable to Company as
Covenants Consideration
First $78,000 0%
Amount in Excess of $78,000 75%

Page 293 of 434 ends

-4-
If Sales Tax Revenues for the applicable Quarter are less than or equal to seventy-eight thousand dollars ($78,000), then no Quarterly Payment attributable to such Quarter is due. However, if, and to the extent that, the aggregate sum of the previous Quarterly Payments for the Fiscal Year made by the City exceeds the Annual Covenant Consideration Amount for such Fiscal Year , then the City shall recapture such s um from the Company as provided in Subsection 5.g. More specific computational steps for computing the Annual Covenants Consideration Amount and the amount of the Quarterly Payments are set forth in Exhibit "B," which is attached hereto and incorporated herein by reference. Payment of the Covenants Consideration payment determined by City to be owing to Company for each Quarter shall be made by City within thirty (30) days after the City and/or the sales tax consultant retained by the City verifies that the City has received all Sales Tax Revenues for the applicable Quarter. Company expressly understands that nothing contained in this Agreement shall obligate or otherwise commit City to pay the Covenant Consideration for the applicable period unless and u ntil City receives reasonably satisfactory verification that City has received all Sales Tax Revenues for such period.

4. Exhibit B is rescinded in its entirety and replaced with a new Exhibit B attached hereto and incorporated herein by this reference.

5. Exhibit C is rescinded in its entirety and replaced with a new Exhibit C attached hereto and incorporated herein by this reference.
[SIGNATURES FOLLOW ON NEXT PAGE]

Page 294 of 434 ends

-5-
IN WITNESS WHEREOF , the parties hereto have executed this Agreement on the respective dates set forth below.

CITY:

CITY OF GARDEN GROVE , a municipal
corporation
Dated: __________________, 2023 By:

Lisa L. Kim
City Manager
ATTEST:

City Clerk

APPROVED AS TO FORM:

Omar Sandoval
City Attorney

COMPANY
AAA OIL, INC., a California corporation
Dated: __________________, 2023

By:

Jaime Duenas
President
By:

Efrain Davalos, Jr.

Secretary

CONSENT BY OWNER OF THE SITE
The undersigned hereby represent and warrant that Duenas Management, LLC is the sole, fee simple Owner of the Site described in Exhibit "A" hereto, and that they are the sole owners, members, and officers of Duenas Management, LLC, and hereby consent to the entering into of this Agreement by AAA Oil, Inc. and the recordation of the Memorandum of Agreement against the Site in the official records of the County of Orange.

Dated: __________________, 2023 By: ____________________________________ Jaime Duenas
Dated: __________________, 2023 By: ____________________________________ Rogelio Duenas

Page 295 of 434 ends

1 EXHIBIT "B"

QUARTERLY COVENANTS CONSIDERATION PAYMENTS

COMPUTATIONAL STEPS

Step for Calculating Quarterly Payments for Quarters 1-3 STEP 1: Determine and verify the amount of Sales Tax Revenues for Quarter.

STEP 2: As illustrated in the following table, m ultiply the applicable portion of the Sales Tax Revenues for Quarter by the corresponding percentage and add the resulting amounts together to determine the Quarterly Covenants Consideration Amount.

Portion of Quarterly
Sales Tax Revenues
Percentage
First $78,000 x 0% = A
Amount in Excess of
$78,000
x 75% = B
A+B = Quarterly Covenants
Consideration Amount

STEP 3: If the Quarterly Covenants Consideration Amount is greater than zero, then Quarterly Payment equals the Quarterly Covenants Consideration Amount. [If Quarterly Covenants Consideration Amount > 0, then Quarterly Payment = Quarterly Covenants Consideration Amount]
If the Quarterly Covenants Consideration Amount is zero, then no Quarterly Payment is due.

If Quarterly Covenants Consideration Amount = 0, then Quarterly Payment = 0]

Page 296 of 434 ends

2 Steps for Calculating Quarterly Payments for Quarter 4 STEP 1: Determine and verify the amount of Sales Tax Revenues for the entire Fiscal Year.

STEP 2: As illustrated in the following table, m ultiply the applicable portion of the Sales Tax Revenues for the Fiscal Year by the corresponding percentage and add the resul ting amounts together to determine the Annual Covenants Consideration Amount.

Portion of Quarterly
Sales Tax Revenues
Percentage
First $312,000 x 0% = A
Amount in Excess of
$312,000
x 75% = B
A+B = Annual Covenants
Consideration Amount

STEP 3: Subtract the aggregate sum of the Quarterly Payments from Quarters 1, 2 and 3 from the Annual Covenants Consideration Amount to determine the Quarter 4 Quarterly Covenants Consideration Amount.
[Annual Covenants Consideration Amount – Quarter 1 Quarterly Payment – Quarter 2 Quarterly Payment – Quarter 3 Quarterly Payment = Quarter 4 Quarterly Covenants Consideration Amount]
STEP 5: If the Quarter 4 Quarterly Covenants Consideration Amount is greater than zero, then the Quarter 4 Quarterly Payment equals the Quarter 4 Quarterly Covenants Consideration Amount.
[If Quarter 4 Quarterly Covenants Consideration Amount > 0, then Quarterly Payment = Quarter 4 Quarterly Covenants Consideration Amount]
If the Quarter 4 Quarterly Covenants Consideration Am ount is less than or equal to zero, then (i) no Quarterly Payment is due , and (ii) any Overpayment for Fiscal Year will be recaptured from Company by either invoicing Company or offsetting future Quarterly Payments.1
If Quarter 4 Quarterly Covenants Consideration Amount < 0, then Quarterly Payment = 0]

1 In the event the Sales Tax Revenues for any Fiscal Year are less than Three Hundred Twelve Thousand Dollars ($312,000), resulting in a negative Annual Covenants Consideration Amount, such negative amount is not carried forward to future Fiscal Years . However, if a negative Annual Covenants Consideration Amount results in an Overpayment for the Fiscal Year, the Overpayment shall be recaptured from the Company as described in Step 5.

Page 297 of 434 ends

1 EXHIBIT "C"

MEMORANDUM OF AGREEMENT

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Garden Grove
11222 Acacia Parkway
Garden Grove, California 92840
Attention: City Clerk

This document is exempt from the payment of a recording fee pursuant to Government Code Sections 6103 and 27383.

MEMORANDUM OF AGREEMENT
This MEMORANDUM OF AGREEMENT (the "Memorandum") is entered into as of _______________ by and between the CITY OF GARDEN GROVE, a municipal corporation (the "City"), AAA OIL, INC., dba California Fuels and Lubricants , a California corporation (“Company”), and DUENAS MANAGEMENT, LLC (the "Owner of the Site").

RECITALS
A. The Owner of the Site is the fee simple owner of that certain real property located at 11621 and 11671 Westminster Avenue in the City of Garden Grove (the "Site"). The Site is commonly known as Assessors Parcel Number 100-130-38, and is more particularly described in Exhibit "A" attached hereto and incorporated herein by this reference.

B. The Company owns and operates a petroleum products distribut ion business (the "Business") on the Site, and has a leasehold interest in the Site pursu ant to a lease agreement between the Company and the Owners of the Site.

C. The City and the Company have entered into that certain Amended and Restated Operating Covenant Agreement, dated January 26, 2016 (the "2016 Agreement") and the Amended 2016 Agreement, dated ______________ (collectively, the “Agreement”) , pursuant to which, in exchange for certain Covenants Consideration to be paid by the City, the Company is required to comply with certain specified Covenants affecting the Site for the duration of the Operating Period (which includes the period through and including June 30, 20 56). The Owner of the Site ha s expressly consented to entry into the Agreement by the Company and to execution and recordation of this Memorandum. A copy of the Agreement, a s it may be amended from time to time, is available for review at the Office of the City Clerk of the City.

D. City, Company, and the Owner of the Site desire to execute this Memorandum to provide notice of the existence of the Agreement and all rights and obligations under the Agreement to all appropriately interested persons, including without limitation any and all future

Page 298 of 434 ends

2 owners and/or lessees of the Site or any part thereof or any interest therein, and this Memorandum in no way modifies the provisions of the Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the City , the Company, and the Owner of the Site hereby agree and confirm as follows:

1. Definitions. All capitalized words used herein, unless otherwise defined, shall have the meanings ascribed to them in the Agreement.

2. Effect of Agreement . The Agreement imposes certain Covenants on Company, which pertain to or affect the Site, and which are intended to be equitable servitudes running with the Site for the benefit of, and enforceable by, the City, and binding on upon all persons having any right, title or interest in the Site, or any part thereof, and their heirs, successors, and assigns , as further set forth below, including without limitation the following:
a. Investment to Expand Business. As more specifically set forth in Section 4 of the Agreement, Company is required to make an Additional Capital Investment of no less than Ten Million Dollars ($10,000,000) for purposes of expanding the Business on the Site. b. Operating Covenant; Continuous Operation. As more specifically set forth in Section 4 of the Agreement, Company is required to continuously conduct and operate, or cause to be conducted and operated, the Required Operations on the Site during the entire Operating Period (which means the period commencing on March 1, 2016 and continuing until and expiring on June 30, 2056). “Required Operations” means, collectively, the following on and with respect to the Site: (i) Company retaining and continuing to own a leasehold and/or ownership interest in all or such lesser portion of the Site sufficient to allow the Business to be conducted; (ii) Company’s operation of the Business on the Site; and (iii) Company not transferring or otherwise relocating all or any portion of the retail sales operation or the point of sale as reported to the SBE for the Business to another facility or location outside of the City. Failure of Company to continuously conduct and operate, or cause to be conducted and operated, the Required Operations on the Site during the entire Operating Period shal l entitle City to terminate the Agreement and demand repayment by Company of all previously paid Covenants Consideration in accorda nce with Subsection 6.b. of the Agreement.
c. Designation of Site as Point of Sale. As more specifically set forth in Section 4 of the Agreement, at all times during the Operating Period, Company is required to designate the Site as the point of sale for Sales Tax purposes in all Business and related sales. d. Payment of Taxes. As more specifically set forth in Section 4 of the Agreement, Company is required to pay or cause to be paid any and all taxes applicable to or arising out of Company's operation of the Business and ownership, lease, operation and/or use of the Site and/or equipment and facilities on the Site (including, without limitation, all taxes attributable to sales occurring on the Site), except Company retains its right to protest and contest Cou nty of Orange decisions related to the value of its interest in the Site and/or SBE decisions related to the amount of Sales Tax due; and Company is required to make or cause to be made timely Sales Tax payments to the SBE.

Page 299 of 434 ends

3 e. Maintenance of Site. As more specifically set forth in Section 4 of the Agreement, during the Operating Period, Company is required, at no cost to the City, to keep and maintain, or cause to be kept and maintained, the Site, including all landscaping on the Site and all facilities and equipment pertaining to the Business that are located on the Site, in a first class condition, free from accumulation of debris, weeds, graffiti and waste materials, in good order and repair, and in a safe condition.
f. Compliance With Governmental Requi rements. As more specifically set forth in Section 4 of the Agreement, subject to Company's right to contest the same, Company is required to, at all times, comply with all applicable laws, ordinances, statutes, codes, rules, regulations, orders and decrees of the United States, the State of California, the County of Orange, the City or any other political subdivision in which the Site is located, and of any other political subdivision, agency or instrumentality exercising jurisdiction over the City, the Company, or the Site, including all applicable federal, state and local occupation, safety and health laws, rules, regulations and standards, applicable federal and state labor standards, applicable prevailing wage requirements, the City zoning and developm ent, building, plumbing, mechanical and electrical codes, and all other provisions of the City of Garden Grove and its Municipal Code, and all applicable disabled and handicapped access requirements, including, without the limitation, the Americans With Disability Act, 42 U.S.C. §12101 et seq., Government Code §4450 et seq., and the Unruh Civil Rights Act, Civil Code §51 et seq. (“Governmental Requirements”).

3. Agreement and Memorandum Run with the Site. The Site and Company's interest therein shall be h eld, sold, conveyed, hypothecated, encumbered, used, occupied, leased and improved subject to the Covenants set forth in the Agreement and the provisions of this Memorandum, which are intended to be covenants running with the land and enforceable by the City, and its successors and assigns, as equitable servitudes against the Site for the benefit of the City, and binding on upon all persons having any right, title or interest in the Site, or any part thereof, and their heirs, successors, and assigns. All c ovenants, without regard to technical classification or designation shall be binding for the benefit of City and such covenants shall run in favor of City for the entire period during which such covenants shall be in force and effect, without regard to whether City is or remains an owner of any land or interest therein to which such covenants relate.

4. Provisions. To the extent of any inconsistency between the Agreement and this Memorandum, the Agreement shall control.

5. Successors and Assigns. This Memorandum shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns.

6. Governing Law. This Memorandum shall be governed in accordance with the laws of the State of California.

7. Recordation. City, Company, and the Owner of the Site hereby confirm and acknowledge that this Memorandum shall be recorded in the Official Records of Orange County, California, following execution. Upon recordation of this Memorandum, this Memorandum shall replace that certain Memorandum of Agreement executed by City, Company, Jaime Duenas, and Rogelio Duenas , dated January 26, 2016, and recorded May 12 , 201 6, as document number

Page 300 of 434 ends

4 2016000212465 (the “2016 Memorandum”), and the 2016 Memorandum shall be of no further force and effect.

8. Counterparts. This Memorandum may be executed in counterparts, each of which shall be deemed an original and which together shall constitute a single agreement.

IN WITNESS WHEREOF, the City, the Company, and the Owner of the Site have executed this Memorandum as of the date first written above.

[SIGNATURES FOLLOW ON NEXT PAGE]

Page 301 of 434 ends

5 IN WITNESS WHEREOF, the undersigned have executed this Memorandum of Agreement on the respective dates set forth below.

CITY:

CITY OF GARDEN GROVE , a municipal
corporation

Dated: __________________, 2023
By:

Lisa L. Kim
City Manager
ATTEST:

City Clerk

APPROVED AS TO FORM:

Omar Sandoval
City Attorney

COMPANY
AAA OIL, INC., a California corporation

Dated: __________________, 2023

By: _________________________
Jaime Duenas
President

By: __________________________
Efrain Davalos, Jr.

Secretary

OWNER OF THE SITE
DUENAS MANAGEMENT, LLC, a
California limited liability company

Dated: __________________, 2023

Jaime Duenas, Member

Rogelio Duenas, Member

Page 302 of 434 ends

1 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
) ss.

COUNTY OF ORANGE )

On ___________________ before me, ____________________________________, Notary Public, personally appeared _____________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal

SIGNATURE OF NOTARY PUBLIC

Page 303 of 434 ends

2 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
) ss.

COUNTY OF ORANGE )

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal

SIGNATURE OF NOTARY PUBLIC

Page 304 of 434 ends

3 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
) ss.

COUNTY OF ORANGE )

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal

SIGNATURE OF NOTARY PUBLIC

Page 305 of 434 ends

4 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
) ss.

COUNTY OF ORANGE )

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal

SIGNATURE OF NOTARY PUBLIC

Page 306 of 434 ends

EXHIBIT "A"

LEGAL DESCRIPTION

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT IN THE SOUTH LINE OF SECTION 4, TOWNSHIP 5 SOUTH, RANGE 10 WEST, IN THE RANCHO LAS BOLSAS, AS SHOWN ON A MAP RECORDED IN BOOK 51, PAGE 12 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA, DISTANT THEREON NORTH 89 DEG. 14R45" EAST 351 FEET FROM THE

SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF SAID SECTION AND RUNNING THENCE NORTH 0 DEG. 49' 15" WEST PARALLEL WITH THE WEST LINE OF THE SOUTHEAST QUARTER OF SAID SECTION 4, 495 FEET; THENCE EASTERLY PARALLEL WITH THE SOUTH LINE OF SAID SECTION 4, 529 FEET, MORE OR LESS, TO THE EASTERLY LINE OF THE WEST 20 ACRES, OF THE SOUTH 30 ACRES OF THE SOUTH WEST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION; THENCE SOUTHERLY ALONG SAID EASTERLY LINE 495 FEET TO THE SOUTH LINE OF SAID SECTION; THENCE WESTERLY ALONG SAID SOUTH LINE 529 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.

EXCEPTING THEREFROM THE WEST 320 FEET.

APN: 100-130-38

Page 307 of 434 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE, CALIFORNIA,

APPROVING AN AMENDMENT TO THE AMENDED AND RESTATED OPERATING COVENANT AGREEMENT BETWEEN THE CITY OF GARDEN GROVE AND AAA OIL, INC.

DBA CALIFORNIA FUELS AND LUBRICANTS

THE CITY COUNCIL OF THE CITY OF GARDEN GROVE, CALIFORNIA, DOES HEREBY FIND AS FOLLOWS:

A. AAA Oil, Inc. dba California Fuels and Lubricants (the "Company") owns and operates a petroleum products distribution business (the "Business") in the City of Garden Grove and is one of the City’s largest sales tax generators.

B. On or about August 13, 2013, the City and the Company entered into that certain Operating Covenant Agreement (the “Original Agreement”). Pursuant to the Original Agreement, the Company agreed to be bound by certain operating covenants and restrictive covenants with respect to the Business and the real property on which the Business is located (the "Site"), including, but not limited to, (i) committing to invest no less than two million dollars ($2,000,000) in the Business; (ii) continuously operating the Business on the Site and designating the Site as the point of sale for all of the Business's sales until at least June 30, 2025; (iii) timely paying all taxes; (iv) maintaining the Site in accordance with specified standards; and (v) complying with all applicable laws and other governmental requirements. In consideration for Company’s agreement to be bound by such operating covenants and restrictive covenants, the City agreed to make certain Covenants Consideration payments to the Company over a period of up to ten (10) years, up to a maximum of two million dollars ($2,000,000).

City recognizes that retention of the Business will continue to contribute to the economic vitality of the City, continue to provide additional jobs in the City, continue to expand the City’s tax base, and otherwise improve economic and physical conditions in the City.

C. In order to ensure retention of the Business in Garden Grove for the long term, to facilitate the retention and expansion of jobs in the City, to allow the Company to gain competitiveness within the fuel provision industry, and to incentivize the Company to make significant additional capital investments to expand its Business in the City, the City and the Company amended the Original Agreement to provide for an additional capital investment in the Business by the Company, to extend the length of the Covenants Consideration Accrual Period and Operating Period, and to revise the method of calculating the Covenants Consideration.

Accordingly, the City and the Company entered into that certain Amended and Restated Operating Covenant Agreement (the “2016 Agreement”). Pursuant to the 2016 Agreement, the Company agreed to be bound by certain expanded operating covenants and restrictive covenants with respect to the Business and the Site, including, but not limited to, (i) committing to invest no less than an additional eight million dollars ($8,000,000) to expand the Business in Garden Grove; (ii) continuously operating the Business on the Site and designating the Site as the point of sale for all of the Business's sales until at least June 30, 2036, and agreeing not to solicit or accept economic incentives from other public or private entities to relocate the Business outside of the City during this period; (iii) timely paying all taxes; (iv) maintaining the Site in accordance with specified standards; and (v) complying with all applicable laws and other governmental requirements. In consideration for Company’s agreement to be bound by such

Page 308 of 434 ends

Resolution No. ___

Page 2 ends

operating covenants and restrictive covenants, and of the additional sales tax revenues to be paid by the Company for the benefit of the City, which the City would not otherwise realize, the City agreed to make certain Covenants Consideration payments to the Company in amounts measured by the amount of sales tax revenues generated by the Company’s Business from March 1, 2016 through June 30, 2036, in accordance with the following structure:

Portion of Annual Sales Tax
Revenues Generated by Business
Percentage Retained by
City
Percentage Payable to
Company
First $200,000 100% 0%
Next $1,800,000 30% 70%
Next $1,000,000 40% 60%
Next $2,000,000 50% 50%
Next $2,000,000 45% 55%
Amount in Excess of $7,000,000 35% 65%

The Company was further prohibited from allocating or using any Covenants Consideration paid to Company under the Agreement for construction and/or development on the Site.

D. In order to ensure the growth of the Business in Garden Grove for the long term, to facilitate the retention and expansion of jobs in the City, to allow the Company to gain competitiveness within the fuel provision industry, and increase its market share, the City and the Company desire to amend the 2016 Agreement to extend the length of the Covenants Consideration Accrual Period and Operating Period and to revise the method of calculating the Covenants Consideration.

Accordingly, the City and the Company propose to enter into that certain Amended 2016 Agreement (the “Amended 2016 Agreement”). Pursuant to the proposed Amended 2016 Agreement, the Company would continue to be bound by all covenants and restrictive covenants with respect to the Business and the Site as outlined in the 2016 Agreement with the following additions; (i) committing to invest no less than an additional ten million dollars ($10,000,000) to expand the Business in Garden Grove; (ii) continuously operating the Business on the Site and designating the Site as the point of sale for all of the Business's sales until at least June 30, 2056, and agreeing not to solicit or accept economic incentives from other public or private entities to relocate the Business outside of the City during this period; (iii) timely paying all taxes; (iv) maintaining the Site in accordance with specified standards; and (v) complying with all applicable laws and other governmental requirements. In consideration for Company’s agreement to be bound by such operating covenants and restrictive covenants, and of the additional sales tax revenues to be paid by the Company for the benefit of the City, which the City would not otherwise realize, the City would agree to make certain Covenants Consideration payments to the Company in amounts measured by the amount of sales tax revenues generated by the Company’s Business from January 1, 2024 through June 30, 2056, in accordance with the following structure:

Page 309 of 434 ends

Resolution No. ___

Page 3 ends

Portion of Annual Sales Tax
Revenues Generated by Business
Percentage Retained by
City
Percentage Payable to
Company
First $312,000 100% 0%
Amount in Excess of $312,000 25% 75%

E. The Company has represented to the City that the proposed additional employment growth and investment in, and expansion of, the Company's Business would not be feasible without the Covenants Consideration to be paid by the City pursuant to the Amended 2016 Agreement, and that the Company anticipates and expects that such Covenants Consideration payments foreseeably would result in benefits to the Company in an amount commensurate with their value at the time of each payment.

F. The Company and the City anticipate that Company's expanded Business, as operated in accordance with the Amended 2016 Agreement, would generate additional sales tax revenues to the City, ensure the long-term maintenance of the Site in a first-class condition, and create significant employment opportunities and other tangible and intangible benefits to the City.

G. The City prepared an economic analysis of the proposed Amended 2016 Agreement in accordance with Government Code 53083. A copy of the report (the “Summary Report”) is attached hereto as Exhibit “B” and was made available to the public and on the City’s website prior to the November 14 Public Hearing. The Summary Report describes the Company, describes the start and end dates for the economic development subsidy under the Amended 2016 Agreement, describes the economic development subsidy called for under the Amended 2016 Agreement, including the estimated total amount of the expenditure of public funds as a result of the economic development study, includes a statement of the public purposes for the economic development subsidy under the Amended 2016 Agreement, contains an estimate of the projected tax revenue to the City as a result of the economic development subsidy, and contains an estimate of the number of jobs that will be created by the economic development subsidy under the Amended 2016 Agreement. The Summary Report concludes that, over the more than 30-year term of the Amended 2016 Agreement, it is estimated that the Company will receive an approximately $192 million total subsidy, that the City will receive approximately $75 million in sales tax revenues attributable to the Company’s Business, and that approximately 100 new jobs will be created in Garden Grove as a result of the Amended 2016 Agreement.

H. Prior to approval of the Amended 2016 Agreement, the City made the information required by Government Code Section 53083(a) available in written form and on the City’s website.

I. On November 14, 2023 the City Council held a noticed public hearing regarding the Amended 2016 Agreement and the City’s obligations thereunder to pay the Covenants Consideration as required by Government Code Section 53083(b).

J. The City Council has duly considered the terms of the proposed Amended 2016 Agreement, the Summary Report, the value of the assistance provided by the City pursuant to

Page 310 of 434 ends

Resolution No. ___

Page 4 ends

the Amended 2016 Agreement, the benefits the City will derive from the Amended 2016 Agreement, the report of City Staff, and other evidence and testimony provided at the November 14, 2023 Public Hearing.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GARDEN GROVE, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. The City Council hereby makes the following findings:

A. The recitals set forth above are true and correct and are incorporated herein by reference.

B. The Company's significant capital investment to expand the Business, the conduct and operation of the expanded Business on the Site, the imposition of the operating covenants and restrictive covenants upon the Business and the Site, and the City's payment of the Covenant Consideration in accordance with the proposed Operating Covenant Agreement constitute valid public purposes under Article XVI, Section 6 of the California Constitution as necessary for the economic enhancement of the City and to contribute to the City's general fund that supports services for the health, safety and welfare of the residents of the City.

C. The proposed Amended 2016 Agreement is in the vital and best interest of the City and the welfare of its residents and is in accordance with the public purposes and provisions of applicable state and local laws. Without limiting the foregoing, the Company's expanded Business, as operated in accordance with the Agreement, will generate additional sales tax revenues to the City, will create significant employment opportunities for residents of the City, will ensure proper maintenance of the Site, and will provide other tangible and intangible benefits to the City.

D. The purpose and intention of the City in paying the Covenant Consideration pursuant to the Agreement is solely to induce Company to make a significant capital investment in order to expand its Business within the City, and to continue to locate and operate the expanded Business on the S ite until at least June 30, 2056, so as to increase the amount of sales tax revenues generated in the City, to further the continued maintenance of the Site and the well-being of the citizens at large, and to increase local employment opportunities.

E. The Company's planned working capital investment in the Business and planned expansion of the Company's Business within the City would not be feasible without the Covenants Consideration to be paid by the City pursuant to the Agreement.

F. The benefits provided by the continued operation of the Company's Business on the Site in accordance with the Amended 2016 Agreement will result in substantially more benefits to the City than the costs to the City of providing the Covenants Consideration provided for in the Amended 2016 Agreement.

G. The Covenants Consideration to be paid by the City pursuant to the Amended 2016 Agreement foreseeably will result in benefits to the Company in an amount commensurate with its value at the time of each payment, and the total aggregate amount of the Covenants Consideration payments to be made by the City pursuant

Page 311 of 434 ends

Resolution No. ___

Page 5 ends

to the Amended 2016 Agreement is not anticipated to exceed the minimum additional amount the Company is required to invest to expand the Business within the City pursuant to the Agreement.

H. The amount of each payment required to be made by the City under the Amended 2016 Agreement is a fair exchange for the consideration actually furnished pursuant to the Agreement by the Company during each fiscal year of the City in which payment is made; each payment to be made by the City under the Amended 2016 Agreement has been calculated so t hat it will not exceed the resources available to make such payment; and in no event shall the City be immediately indebted to Company for the aggregate payments provided for pursuant to the Amended 2016 Agreement.

I. The Amended 2016 Agreement does not include or require any activity which may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The Amended 2016 Agreement does not require any change or significant intensification in land use or density and prohibits the Company from allocating or using any Covenant Consideration paid by the City pursuant to the Amended 2016 Agreement for construction and/or development on the Site . The Company is not require d to secure any other discretionary government approvals pursuant to the Agreement that would trigger California Environmental Quality Act (CEQA) review. Therefore, in light of the whole record, it can be seen with certainty that the project has no potential to cause a significant effect on the environment. As such, the City Council finds that approval of the Agreement is exempt from the provisions of CEQA pursuant to CEQA Guidelines Section 15061(b)(3).

SECTION 2. The Amended 2016 Agreement between the City of Garden Grove and AAA Oil, Inc., attached hereto at Exhibit “A”, is hereby approved.

SECTION 3. The City Manager is hereby authorized to execute the Amended 2016 Agreement, the Memorandum of the Amended 2016 Agreement, and any other related attachments, including any minor modifications as appropriate, and any other pertinent documents necessary to effectuate and/or implement the Amended 2016 Agreement.

SECTION 4. The City Manager (or his/her duly authorized representative) is further authorized to implement the Amended 2016 Agreement and take all further actions and execute all documents referenced therein and/or necessary and appropriate to carry out the Amended 2016 Agreement. The City Manager (or his/her duly authorized representative) is hereby authorized to the extent necessary during the implementation of the Amended 2016 Agreement to make technical or minor changes thereto after execution, as necessary to properly implement and carry out the Amended 2016 Agreement, provided the changes shall not in any manner materially affect the rights and obligations of the City.

SECTION 5. The City Clerk shall certify to the adoption of this Resolution.

Adopted this 14th day of November, 2023.

Page 312 of 434 ends

Exhibit "A"

Amended 2016 Agreement

Page 313 of 434 ends

Exhibit "B"

Summary Report

Page 314 of 434 ends

Agenda Item - 5.b.

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM
To: Lisa L. Kim From: Niki Wetzel
Dept.: City Manager Dept.: Community Development
Subject: Introduction and first reading
to consider adopting
Ordinances approving
Amendment No. A-038-
2023(a) and A-038-2023(b)
Date: 11/14/2023

OBJECTIVE
To transmit a recommendation from the Planning Commission to the City Council to adopt a City-initiated zoning text amendment (A-038-2023) to Title 9 (Land Use) of the Garden Grove Municipal Code pertaining to retail sale by delivery of medicinal cannabis [A-038-2023(A)] and development standards for mechanical equipment, maximum hardscape coverage within front yard setbacks, and substitute landscaping [A-038-2023(B)]. The proposed code amendment would update portions of Chapters 9.08, 9.12, 9.16, and 9.18 (Single-Family Residential Development Standards, Multifamily Residential Development Standards, Commercial, Office Professional, Industrial, and Open Space Development Standards, and Mixed Use Regulations and Development Standards, respectively) of Title 9 of the City of Garden Grove Municipal Code to specify standards for the screening of mechanical equipment within an exterior equipment enclosure in residential zones; to clarify how the maximum permitted hardscape coverage in the front yard setback in residential, commercial, industrial, and open space zones is calculated; and to update the standards for artificial turf in all zones. In addition, the proposed code amendment would amend existing provisions of Chapter 9.52 (Cannabis Activities) of Title 9 of the Garden Grove Municipal Code in a manner consistent with the recently enacted Medicinal Cannabis Patients’ Right of Access Act to permit the retail sale by delivery of medicinal cannabis in the City from licensed facilities located outside of the City, subject to specified regulations.

BACKGROUND
A-038-2023(A) - Retail Sale by Delivery of Medicinal Cannabis Senate Bill (SB) 1186 (Chapter 395, Statutes of 2022), known as the Medicinal Cannabis Patients’ Right of Access Act, prohibits local jurisdictions, beginning January 1, 2024, from adopting or enforcing any regulation that prohibits, or has the effect of prohibiting, the retail sale by delivery within the jurisdiction of medicinal cannabis to medicinal cannabis patients or their primary caregivers by licensed medicinal cannabis businesses in a timely

Page 315 of 434 ends

and readily accessible manner, and in types and quantities that are sufficient to meet demand from medicinal cannabis patients within the local jurisdiction. SB 1186 permits local jurisdictions to adopt and enforce reasonable regulations on retail sale by delivery of medicinal cannabis, and does not limit or otherwise affect the ability of a local jurisdiction to adopt and enforce any regulations on commercial cannabis operations other than retail sale by delivery of medicinal cannabis in the local jurisdiction.

A-038-2023(B) - Focused Code Enforcement Zoning Amendment The City’s Code Enforcement team has long served as a tool for maintaining the image, and resolving property maintenance issues across the City. The City Council identified Code Enforcement as a Tier 2 priority this fiscal year, and a related implementation item includes evaluation of the Garden Grove Municipal Code to promote positive property maintenance. Code Enforcement has identified three recurring problem areas in Title 9 of the Municipal Code to reevaluate: the appearance of exterior mechanical equipment (e.g., water heaters) attached to residential units, over-paving of front yards, and the improper installation of artificial turf. The intent of this proposed text Amendment No. A-038- 2023(B) is to make the Municipal Code easier for property owners to understand and implement, and easier for Code Enforcement to regulate.

There are four (4) specific updates to Title 9 of the Municipal Code under this Amendment. Collectively, the updated language will affect all zoning designations of the Municipal Code. The updates are as follows: (1) updating the General Requirements in all residential (R-1, R-2, and R-3) zones, (2) revising the maximum front yard hardscape percentage in all residential (R-1, R-2, and R-3) zones, (3) updating the language pertaining to the maximum front yard hardscape percentage in the landscaping requirements for all residential (R-1, R-2, and R-3) and commercial zones (C-1, C-2, C-3, O-P, O-S, M-1, M-P) zones, and (4) and adding language pertaining to the installation of artificial turf in all zones.

DISCUSSION
A-038-2023(A) - Retail Sale by Delivery of Medicinal Cannabis The proposed amendment will allow the City of Garden Grove to be in compliance with the provisions of SB 1186. The proposed amendment will also include additional reasonable regulations intended to continue to protect the public health, safety and welfare of the community.

The California Department of Cannabis Control regulates the sale and delivery of both adult use and medicinal cannabis and has adopted detailed regulations governing many aspects of cannabis delivery operations. A copy of the pertinent state regulations pertaining to cannabis delivery can be found in Attachment 1.

The following is a summary of the state regulations:

1. Deliveries of cannabis goods shall be performed by an employee who is at least 21 years old and is directly employed by a licensed retailer.

2. Deliveries of cannabis goods shall be made in person during specified hours of operation in which the delivery employee may not engage in any activities except for cannabis goods delivery and necessary rest, fuel, or vehicle repair stops.

3. Delivery employees shall return to the licensed premises if they have any unsold

Page 316 of 434 ends

cannabis goods.

4. Delivery employees shall, carry a copy of the retailer's current license, a copy of the QR Code certificate issued by the Department of Cannabis Control, the employee's government-issued identification, and an identification badge provided by the employer.

5. Delivery employees shall confirm the identity and age of the delivery customer.

6. An unlicensed third party, intermediary business, broker, or any other business or entity, may not be used to sell cannabis goods to a customer. However, a technology platform may be used to facilitate the sale and delivery of cannabis goods, subject to specific restrictions.

7. Delivery employees may only deliver cannabis goods to a physical address in California.

8. Delivery employees shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency, to a K-12 school, day care center, or youth center.

9. A vehicle used in the delivery of cannabis goods shall not have any marking or other indications on the exterior that may indicate that cannabis goods are located within the vehicle and the cannabis goods shall not be visible to the public.

10. Cannabis goods shall be stored in a secure, fully enclosed trunk that cannot be accessed from inside the vehicle, or in a secured area or compartment within the interior of the vehicle.

11. Cannabis goods shall not be in an unattended motor vehicle unless the motor vehicle is locked and equipped with an active vehicle alarm system.

12. The vehicle shall be outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of the delivery vehicle and recording a history of all locations traveled.

13. Upon request, a licensed retailer shall provide the vehicle's make, model, color, Vehicle Identification Number, license plate number and Department of Motor Vehicles registration information.

14. Vehicles used to deliver cannabis goods may be stopped and inspected by the Department of Cannabis Control at any licensed premises or during delivery.

15. Delivery employees may only carry cannabis goods in the delivery vehicle with a value not to exceed $10,000 and for one licensed retailer only at any time.

16. Delivery employees may only carry cannabis goods in the delivery vehicle and may only perform deliveries for one licensed retailer at a time.

17. Before leaving the licensed premises, the delivery employee must have a delivery inventory ledger of all cannabis goods provided to the delivery employee.

18. The inventory log must include all stops, and the log must be turned in to the licensed retailer when the delivery employee returns to the licensed premises.

19. Prior to arrival at any delivery location, the licensed retailer must have received a delivery request from the customer and provided the delivery request receipt to the delivery employee electronically or in hard copy.

20. If a delivery employee does not have any delivery requests to be performed for a 30-minute period, the delivery employee shall return to the licensed premises.

Upon returning to the licensed premises, all undelivered cannabis goods shall be returned to the licensed retailer's inventory and recorded.

21. Delivery employees shall not consume cannabis during deliveries.

22. While making deliveries of cannabis goods, a licensed retailer's delivery

Page 317 of 434 ends

employee shall only travel from the retailer's licensed premises to the delivery address, from one delivery address to another delivery address, or from a delivery address back to the retailer's licensed premises.

The City is proposing restrictions and requirements in addition to the provisions set forth by the Department of Cannabis Control. A summary of the reasonable regulations imposed by the City through the proposed amendment is as follows:

Delivery of medicinal cannabis is allowed to medicinal cannabis patients or their primary caregivers by a medicinal cannabis business from a fixed location outside of the City only.

Medicinal cannabis businesses engaging in the retail sale by delivery of medicinal cannabis within the City shall be subject to the following requirements:

Shall obtain and maintain a City of Garden Grove business tax certificate.

Shall maintain an active M-license (medicinal license) issued by the State of California and all applicable permits and/or licenses required by the local jurisdiction in which the business is located.

Shall comply with all applicable regulations of the California Department of Cannabis Control.

Shall not deliver adult-use cannabis, cannabis accessories, and/or branded merchandise.

Deliveries shall be performed by a delivery employee who is directly employed by the medicinal cannabis business.

Shall maintain an accurate list of its delivery employees and shall provide the list to the City upon request.

Delivery employees shall carry and immediately provide upon request by the City or any law enforcement officer the following: a copy of the current business tax certificate, a copy of the license issued by the State Department of Cannabis Control, a copy of the QR Code certificate issued by the State Department of Cannabis Control, the employee's government issued identification, an identification badge, delivery inventory ledgers, all delivery receipts for cannabis goods carried in the delivery vehicle, or any deliveries that have already been made to customers, and a log of all stops from the time the employee left the employer's premises.

Shall not carry cannabis goods value in excess of $5,000 in the delivery vehicle.

Shall not deliver to a physical address that is not located on publicly owned land, on land or in a building leased by a public agency, a school providing instruction in kindergarten or any grades one through twelve, a day care center, or youth center.

Shall only deliver to individuals who are at least 18 years of age and possesses a valid physician's recommendation and identification.

Shall maintain a list of all vehicles, including vehicles' make, model, year, color, license plate number, vehicle identification number (VIN) and Department of Motor Vehicles registration information, along with proof of current automobile liability insurance.

Shall utilize delivery vehicles that are unmarked.

Shall deliver using a vehicle that is outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of the delivery vehicle and recording a history of all locations traveled to by the delivery employee.

Page 318 of 434 ends

•
•
•
•
•
•
•
•
•
• •
•
•
•
•

The exact proposed changes to the Municipal Code are shown in the draft City Council Ordinance (Exhibit “A”) that is attached to Planning Commission Resolution No. 6071-23.

A-038-2023(B) - Focused Code Enforcement Zoning Amendment

General Requirements
The City has seen an increase in the installation of new heat-pump water heaters, which are substantially larger than tankless heaters. As a result, these new heat pumps are often installed on the exteriors of buildings. Manufacturers’ specifications for this type of equipment typically includes requirements for the equipment to be protected in an enclosure. Code Enforcement has received numerous complaints that the installation of equipment in enclosures to be unsightly. Currently, the Municipal Code provides general requirements pertaining to the installation of mechanical and metering equipment in residential zones. The proposed Amendment would address said requirements in Section 9.08.040.010 (Single-Family Residential – General Requirements) of Chapter 9.08 (Single-Family Residential Development Standards), and Section 9.12.040.010 (Multifamily Residential – General Requirements) of Chapter 9.12 (Multifamily Residential Development Standards). Currently, the Municipal Code does not explicitly address equipment enclosures. The Amendment will allow for equipment enclosures, as required by manufacturer specifications, and requires said enclosures to be painted to match the color of the existing house. The proposed language adds objective language that help disguise mechanical equipment enclosures from being readily viewed from the street or adjacent properties, helping create a more uniform residential neighborhoods.

General Development Standards
With the proliferation of Accessory Dwelling Units (ADUs) and Senate Bill 9 (SB 9) units, which often do not require additional parking per State law, Code Enforcement has received an increase in complaints for both on- and off-street parking. Title 9 of the Garden Grove Municipal Code only regulates parking on private properties. In wanting to maintain attractive residential neighborhoods, the Municipal Code also maintains a maximum of 50% hardscape within the front yard setback. As more property owners replace landscaping with parking, Code Enforcement officers are finding more properties exceed the maximum amount of hardscape, and that enforcing the maximum 50% hardscape area is becoming more challenging. The Municipal Code regulates the maximum amount of hardscape that can be provided in the front yard setback for residential uses. The proposed Amendment clarifies what land area counts toward the maximum hardscape percentage. Specifically, Section 9.08.040.020 (Residential – General Development Standards) of Chapter 9.08 (Single-Family Development Standards) and Section 9.12.040.020 (Residential – General Development Standards) of Chapter 9.12 (Multifamily Development Standards) are proposed to be revised.

In requiring a maximum 50% hardscape in the front yard setback, the Municipal Code exempts driveway parking from that requirement, as said parking is required in other sections of the Code. With the proposed Amendment, the language will now specify that driveways required for exterior parking, and the respective sizes for each driveway, are exempt from the maximum front yard hardscape requirements. Until the proposed Amendment, the Municipal Code has not specified the required driveway area, in terms of square feet, that can be exempted from the maximum hardscape percentage. The

Page 319 of 434 ends

driveway area that can be exempted is the same size of garage that the driveway is intended to lead to. The revised language also identifies that only those driveways that lead to a garage, or a legally converted garage, can be exempted from the maximum hardscape requirements. For multiple-family developments, where there is often a shared drive aisle, the front yard hardscape percentage is limited to a maximum of 50%, exclusive of any driveway or walkway necessary to access the site. Chapter 9.12 (Multifamily Development Standards) will therefore not make any exceptions for driveway parking.

This is consistent with the typical pattern of multifamily developments with a shared driveway, and no driveway parking.

Landscaping- General Provisions
Similar to the aforementioned General Development Standards, the landscaping requirements of the Municipal Code also regulate the maximum amount of hardscape that can be provided in a front yard setback. The proposed Amendment simplifies the calculation of the maximum hardscape percentage. Section 9.08.040.050 (Landscaping – General Provisions) of Chapter 9.08 (Single-Family Residential Development Standards), Section 9.12.040.080 (Landscaping – General Provisions) of Chapter 9.12 (Multifamily Residential Development Standards), and Section 9.16.040.060 (Landscaping – General Provisions) of Chapter 9.16 (Commercial, Office Professional, Industrial, and Open Space Development Standards) are proposed to be revised. The current language in the Municipal Code allows for five-foot (5’-0”) wide walkways to be exempted from the hardscape requirements in residential zones. The Code does not specify how many walkways, or the allowed locations of the walkways that can be exempted from this requirement. This proposed Amendment strikes this allowance in its entirety, leaving a simpler maximum 50% hardscape area. In commercial zones, the 50% maximum requirement will be removed altogether, consistent with other Development Standards of Chapter 9.16 (Commercial, Office Professional, Industrial, and Open Space Development Standards). The amended language of the Landscape General Provisions would be consistent with the previously discussed Residential General Development Standards section of the Municipal Code. The maximum hardscape in the front yard setback will continue to be limited to a maximum of 50 percent.

Landscaping Requirements
In an effort to keep landscape maintenance costs to a minimum, more property owners are installing artificial turf. The Municipal Code allows artificial turf, as it is similar in appearance to live grass. Code Enforcement has encountered numerous artificial turf installations that do not abide by manufactures’ specifications. Incorrectly installed turf can pose a hazard, and can also prevent proper drainage during rainstorms. Incorrectly installed, and poorly maintained, artificial turf also does not mimic the appearance of live grass, counter to the intent of the Municipal Code. Currently, the use of artificial turf as a substitute landscaping material is implemented with similar regulations across all zones.

Any changes to the requirements for artificial turf will need to be revised across all residential, commercial, industrial, and mixed-use zones. Therefore, the proposed amendments would amend Section 9.08.040.060 (Landscaping Requirements) of Chapter

9.08 (Single-Family Residential Development Standards), Section 9.12.040.090 (Landscaping Requirements) of Chapter 9.12 (Multifamily Residential Development Standards), Section 9.16.040.070 (Landscaping Requirements) of Chapter 9.16 (Commercial, Office Professional, Industrial, and Open Space Development Standards), and Section 9.18.120.030 (Landscaping Requirements) of Chapter 9.18 (Mixed Use Regulations and Development Standards). The proposed Amendment to the language of

Page 320 of 434 ends

the artificial turf regulations will add language to guide the installation of artificial turf.

Specifically, the proposed modification to the artificial turf requirements clarify what type of turf is required, how it shall be installed, what type of base layer is required, and guide the proper maintenance of said turf. If adhered to, the proposed language can help ensure artificial turf is installed safely, and that its appearance is long-lasting.

Environmental Review
A-038-2023(A) - Retail Sale by Delivery of Medicinal Cannabis The adoption of an ordinance is not subject to the California Environmental Quality Act (“CEQA”) where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment (CEQA Guidelines Section 15061(b)(3). The proposed ordinance merely implements the provisions of State law governing retail sale of medicinal cannabis and will impose limits and procedural requirements on this activity, which is already permitted by State law. The ordinance will not result in new land uses or authorize new activities that have the potential to significantly affect the environment.

A-038-2023(B) - Focused Code Enforcement Zoning Amendment The operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use, are categorically exempt from CEQA pursuant to CEQA’s Class 1 Categorical exemption (CEQA Guidelines Section 15301). The proposed Amendment will make minor clarifying amendments to existing zoning provisions. The activities stemming from the proposed Amendment are covered by the Class 1 exemption. The proposed Code amendments are also exempt from CEQA pursuant to the “common sense” exemption because it can be seen with certainty there is no possibility they may have a significant impact on the environment (CEQA Guidelines Section 15061(b)(3)).

FINANCIAL IMPACT
None.

RECOMMENDATION
It is recommended that the City Council:

Conduct a Public Hearing;

Introduce and conduct the first reading of an Ordinance approving Amendment No. A-038-2023(A), a zoning text amendment to portions of Chapter 9.52 (Cannabis Activities) of Title 9 of the Garden Grove Municipal Code in a manner consistent with the recently enacted Medicinal Cannabis Patients’ Right of Access Act to permit the retail sale by delivery of medicinal cannabis in the City from licensed facilities located outside of the City, subject to specified regulations;

Introduce and conduct the first reading of an Ordinance approving Amendment No. A-038-2023(B), a zoning text amendment to update portions of Chapters

9.08, 9.12, 9.16, and 9.18 (Single-Family Residential Development Standards,

Page 321 of 434 ends

•
•
•
Multifamily Residential Development Standards, Commercial, Office Professional, Industrial, and Open Space Development Standards, and Mixed Use Regulations and Development Standards, respectively) of Title 9 of the City of Garden Grove Municipal Code to specify standards for the screening of mechanical equipment within an exterior equipment enclosure in residential zones; to clarify how the maximum permitted hardscape coverage in the front yard setback in residential, commercial, industrial, and open space zones is calculated; and to update the standards for artificial turf in all zones.

By: Mary Martinez, Urban Planner; and

By: Priit Kaskla, AICP, Associate Planner
ATTACHMENTS:

Description Upload Date Type File Name
10/19/23 Planning Report 11/9/2023 Backup Material 10-19- 23_agenda_report.pdf
Attach. 1 Dept. of Cannabis
Control Reg. 11/9/2023 Backup Material Attachment_1.pdf Attach. 2 PC Res 6071-23 11/9/2023 Resolution Attachment_2.pdf Attach. 3 Res 6072-23 11/9/2023 Resolution Attachment_3.pdf 10/19/23 Minute Excerpt 11/9/2023 Minutes 10-19-
23_Minute_Excerpt.pdf
Draft Ord A-038-23A 11/9/2023 Ordinance Draft_Ord_A-038-23_A.pdf Draft Ord A-038-23B 11/9/2023 Ordinance Draft_Ord_A-038-23_B.pdf

Page 322 of 434 ends

COMMUNITY DEVELOPMENT DEPARTMENT
P

LANNING STAFF REPORT
AGENDA ITEM NO.: C.1. SITE LOCATION: Citywide
HEARING DATE: October 19, 2023 GENERAL PLAN: N/A
CASE NO.: Amendment No. A-038-2023 ZONE: N/A
APPLICANT: City of Garden Grove APN: N/A
OWNER: N/A CEQA DETERMINATION: Exempt:
15061(b)(3) – Common Sense; and
15301 – Existing Facilities
REQUEST:

A City-initiated zoning text amendment to Title 9 (Land Use) of the Garden Grove M
unicipal Code pertaining to retail sale by delivery of medicinal cannabis [A-038-2023(A)] and development standards for mechanical equipment, maximum hardscape coverage within front yard setbacks, and substitute landscaping [A-038-2023(B)]. The proposed code amendment would update portions of Chapters

9.08, 9.12, 9.16, and 9.18 (Single-Family Residential Development Standards, Multifamily Residential Development Standards, Commercial, Office Professional, Industrial, and Open Space Development Standards, and Mixed Use Regulations and Development Standards, respectively) of Title 9 of the City of Garden Grove Municipal Code to specify standards for the screening of mechanical equipment within an exterior equipment enclosure in residential zones; to clarify how the maximum permitted hardscape coverage in the front yard setback in residential, commercial, industrial, and open space zones is calculated; and to update the standards for artificial turf in all zones. In addition, the proposed code amendment would amend existing provisions of Chapter 9.52 (Cannabis Activities) of Title 9 of the Garden Grove Municipal Code in a manner consistent with the recently enacted Medicinal Cannabis Patients’ Right of Access Act to permit the retail sale by delivery of medicinal cannabis in the City from licensed facilities located outside of the City, subject to specified regulations.

BACKGROUND:

A-038-2023(A) - RETAIL SALE BY DELIVERY OF MEDICINAL CANNABIS On January 26, 2016, the City Council adopted Ordinance No. 2863, adding Chapter

9.5 2 "Cannabis Activities" to Title 9 of the Garden Grove Municipal Code. Chapter

9.52 prohibited the establishment, maintenance, or operation of marijuana dispensaries and related commercial cannabis activities, including the distribution, manufacture, cultivation and delivery of cannabis and/or cannabis products in all zoning districts, planned unit development districts, and specific plan areas in the City.

On November 8, 2016, California voters approved Proposition 64 – the Control, Regulate, and Tax Adult Use of Marijuana Act – legalizing recreational marijuana use

Page 323 of 434 ends

STAFF REPORT FOR PUBLIC HEARING PAGE 2 CASE NO. A-038-2023
for adults 21 or older. Although the measure legalized recreational use of marijuana, it
allowed the City to continue to prohibit marijuana business activities, except that the City could not prohibit adults 21 years or older from cultivating up to six (6) living marijuana plants inside a private residence, or inside an accessory structure that is fully enclosed and securely located at that private residence. In 2017, the City adopted Ordinance No. 2882 approving Amendment No. A-017-2017 amending portions of Chapter 9.52 to conform the City’s Land Use Code by incorporating the changes to State law regarding private cannabis cultivation. The ordinance affirmed continuation of the ban against marijuana business activities, but carved out the private cultivation exception so that the City’s ban could conform to the new measure.

Senate Bill (SB) 1186 (Chapter 395, Statutes of 2022), known as the Medicinal Cannabis Patients’ Right of Access Act, prohibits local jurisdictions, beginning January 1, 2024, from adopting or enforcing any regulation that prohibits, or has the effect of prohibiting, the retail sale by delivery within the jurisdiction of medicinal cannabis to medicinal cannabis patients or their primary caregivers by licensed medicinal cannabis businesses in a timely and readily accessible manner, and in types and quantities that are sufficient to meet demand from medicinal cannabis patients within the local jurisdiction. SB 1186 permits local jurisdictions to adopt and enforce reasonable regulations on retail sale by delivery of medicinal cannabis, and does not limit or otherwise affect the ability of a local jurisdiction to adopt and enforce any regulations on commercial cannabis operations other than retail sale by delivery of medicinal cannabis in the local jurisdiction.

To respond to SB 1186, the City is proposing to amend Chapter 9.52.020 (Cannabis Dispensaries and Delivery Prohibited) of Chapter 9.52 (Cannabis Activities) of Title 9 of the Garden Grove Municipal Code to permit the retail sale by delivery of medicinal cannabis in the City subject to specified regulations in compliance with recent State law changes.

A-038-2023(B) - FOCUSED ZONING AMENDMENT
The City’s Code Enforcement team has long served as a tool for maintaining the image
of the City, helping to resolve property maintenance issues across the City.

The City Council identified Code Enforcement as a Tier 2 priority this fiscal year, and a related implementation item includes evaluation of the Garden Grove Municipal Code to promote positive property maintenance.

Code Enforcement has found that certain property maintenance issues continuously appear across a multitude of properties. Namely, Code Enforcement has identified three recurring problem areas: the appearance of exterior mechanical equipment (e.g., water heaters) attached to residential units, over-paving of front yards, and the improper installation of artificial turf. The intent of this proposed text Amendment is to make the Municipal Code easier for property owners to understand and implement, and easier for Code Enforcement to regulate.

Due to recent changes to State-required energy standards for residential units, many property owners are moving away from tankless water heaters, and installing heat- pump water heaters instead. Tankless heaters are typically wall-mounted, which

Page 324 of 434 ends

STAFF REPORT FOR PUBLIC HEARING PAGE 3 CASE NO. A-038-2023
does not require any floor area for installation. The new heat-pump water heaters ar
e substantially larger than tankless heaters, limiting the ability to locate them inside a residential unit. As a result, these new heat pumps are often installed on the exteriors of buildings. Manufacturers’ specifications for this type of equipment typically includes requirements for the equipment to be located in a protective enclosure. Code Enforcement has received numerous complaints that the installation of equipment in enclosures to be unsightly.

With the proliferation of Accessory Dwelling Units (ADUs), and Senate Bill 9 (SB 9) units, which often do not require additional parking per State law, Code Enforcement has received an increase in complaints regulating parking both on- and off-street.

Title 9 of the Garden Grove Municipal Code does not regulate on-street parking, only parking on private properties. In wanting to keep residential neighborhoods an attractive place to live, the Municipal Code requires a maximum of 50% hardscape within the front yard setback. As more property owners remove landscaping to add parking, Code Enforcement officers are finding more properties do not meet the minimum amount of landscape area, and that enforcing the maximum 50% hardscape area is becoming more challenging.

In an effort to keep landscape maintenance costs to a minimum, particularly water costs associated with irrigation, more property owners are installing artificial turf in lieu of live landscaping. The Municipal Code does allow artificial turf, as it is similar in appearance to live grass. Code Enforcement has encountered numerous artificial turf installations that do not abide by manufactures’ requirements and/or specifications. Incorrectly installed turf can pose a hazard to passerby (e.g., tripping hazard), and can also prevent proper drainage during rainstorms. Incorrectly installed, and poorly maintained, artificial turf also does not mimic the appearance of live grass, counter to the intent of the Municipal Code.

While these problem areas are most prevalent in R-1 (Single-Family Residential) zoned properties, the Municipal Code has similar language across multiple zones.

Revising the Municipal Code text across all zones will help make interpreting the Code simpler, and more readily implementable. This assists home owners to understand the City’s property maintenance requirements, and helps streamline Code Enforcement procedures for these recurring issues.

DISCUSSION:

A-038-2023(A) - RETAIL SALE BY DELIVERY OF MEDICINAL CANNABIS The proposed amendment will allow the City of Garden Grove to be in compliance wi
th the provisions of SB 1186, which require cities to permit the retail sale by delivery of medicinal cannabis within their jurisdictions. The proposed amendment will also include additional reasonable regulations intended to continue to protect the public health, safety and welfare of the community.

Page 325 of 434 ends

STAFF REPORT FOR PUBLIC HEARING PAGE 4 CASE NO. A-038-2023
regulations pertaining to cannabis delivery can be found in A ttachment 1. The fol
lowing is a summary of the state regulations:
 All deliveries of cannabis goods shall be performed by a delivery employee who is at least 21 years old and is directly employed by a licensed retailer.
 All deliveries of cannabis goods shall be made in person during specified hours of operation in which the delivery employee may not engage in any activities except for cannabis goods delivery and necessary rest, fuel, or vehicle repair stops.
 Delivery employees shall return to the licensed premises after making their last delivery of the day if they have any unsold cannabis goods to return to the premises.
 A delivery employee shall, during deliveries, carry a copy of the retailer's current license, a copy of the QR Code certificate issued by the Department of Cannabis Control, the employee's government-issued identification, and an identification badge provided by the employer.  A delivery employee shall confirm the identity and age of the delivery customer.
 An unlicensed third party, intermediary business, broker, or any other business or entity, may not be used to sell cannabis goods to a customer. However, a technology platform may be used to facilitate the sale and delivery of cannabis goods, subject to specific restrictions.  A delivery employee may only deliver cannabis goods to a physical address in California.
 A delivery employee shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency, to a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center.
 A vehicle used in the delivery of cannabis goods shall not have any marking or other indications on the exterior that may indicate that cannabis goods are located within the vehicle and the cannabis goods shall not be visible to the public. Cannabis goods shall be stored in a secure, fully enclosed trunk that cannot be accessed from inside the vehicle, or in a secured area or compartment within the interior of the vehicle. Cannabis goods shall not be in an unattended motor vehicle unless the motor vehicle is locked and equipped with an active vehicle alarm system. The vehicle shall be outfitted with a dedicated Global

Page 326 of 434 ends

STAFF REPORT FOR PUBLIC HEARING PAGE 5 CASE NO. A-038-2023
Positioning System (GPS) device for identifying the geographic location of
the delivery vehicle and recording a history of all locations traveled.  Upon request, a licensed retailer shall provide the vehicle's make, model, color, Vehicle Identification Number, license plate number and Department of Motor Vehicles registration information.
 Vehicles used to deliver cannabis goods may be stopped and inspected by the Department of Cannabis Control at any licensed premises or during delivery.
 A delivery employee may only carry cannabis goods in the delivery vehicle with a value not to exceed $10,000 and for one licensed retailer only at any time.
 A delivery employee may only carry cannabis goods in the delivery vehicle and may only perform deliveries for one licensed retailer at a time.
 Before leaving the licensed premises, the delivery employee must have a delivery inventory ledger of all cannabis goods provided to the delivery employee. The inventory log must include all stops, and the log must be turned in to the licensed retailer when the delivery employee returns to the licensed premises.
 Prior to arrival at any delivery location, the licensed retailer must have received a delivery request from the customer and provided the delivery request receipt to the delivery employee electronically or in hard copy.

 If a delivery employee does not have any delivery requests to be performed for a 30-minute period, the delivery employee shall return to the licensed premises. Upon returning to the licensed premises, all undelivered cannabis goods shall be returned to the licensed retailer's inventory and recorded.
 Delivery employees shall not consume cannabis during deliveries.  While making deliveries of cannabis goods, a licensed retailer's delivery employee shall only travel from the retailer's licensed premises to the delivery address, from one delivery address to another delivery address, or from a delivery address back to the retailer's licensed premises.

Page 327 of 434 ends

STAFF REPORT FOR PUBLIC HEARING PAGE 6 CASE NO. A-038-2023
 D elivery of medicinal cannabis is allowed to medicinal cannabis patients or their primary caregivers by a medicinal cannabis business from a fixed location outside of the City only.
 Medicinal cannabis businesses engaging in the retail sale by delivery of medicinal cannabis within the City shall be subject to the following requirements:
o Shall obtain and maintain a City of Garden Grove business tax certificate.
o Shall maintain an active M-license (medicinal license) issued by the State of California and all applicable permits and/or licenses required by the local jurisdiction in which the business is located. o Shall comply with all applicable regulations of the California Department of Cannabis Control.
o Shall not deliver adult-use cannabis, cannabis accessories, and/or branded merchandise.
o Deliveries shall be performed by a delivery employee who is directly employed by the medicinal cannabis business.
o Shall maintain an accurate list of its delivery employees and shall provide the list to the City upon request.
o Delivery employees shall carry and immediately provide upon request by the City or any law enforcement officer the following:
a copy of the current business tax certificate, a copy of the license issued by the State Department of Cannabis Control, a copy of the QR Code certificate issued by the State Department of Cannabis Control, the employee’s government-issued identification; an identification badge, delivery inventory ledgers, all delivery receipts for cannabis goods carried in the delivery vehicle, or any deliveries that have already been made to customers, and a log of all stops from the time the employee left the employer’s premises. o Shall not carry cannabis goods valued in excess of $5,000 in the delivery vehicle.
o Shall deliver to a physical address that is not located on publicly owned land, on land or in a building leased by a public agency, a school providing instruction in kindergarten or any grades one through twelve, a day care center, or a youth center.
o Shall only deliver to individuals who are at least 18 years of age and possesses a valid physician's recommendation and
identification.

Page 328 of 434 ends

STAFF REPORT FOR PUBLIC HEARING PAGE 7 CASE NO. A-038-2023
o S hall maintain a list of all vehicles, including vehicles’ make, model, year, color, license plate number, vehicle identification number (VIN), and Department of Motor Vehicles registration information, along with proof of current automobile liability insurance.
o Shall utilize delivery vehicles that are unmarked.
o Shall deliver using a vehicle that is outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of the delivery vehicle and recording a history of all locations traveled to by the delivery employee.

The exact proposed changes to the Municipal Code are shown in the draft City Council Ordinance (Exhibit “A”) that is attached to the proposed Planning Commission Resolution No. 6071-23.

A-038-2023(B) - FOCUSED ZONING AMENDMENT
The following discussion summarizes the proposed amendments to the Municipal Code.

These proposed revisions to the existing standards and regulations are intended to maintain the positive character of the City’s residential, commercial, and mixed use areas in support of the City Council’s identification of Code Enforcement as a Tier 2 priority. The specific language is intended to simplify the Code, making it easier for property owners to comply with, and for Code Enforcement officers to enforce. The proposed changes to the Municipal Code are found in the draft City Council Ordinance (Exhibit “A”) that is attached to the proposed Planning Commission Resolution No. 6072-23.

There are four updates to Title 9 of the Municipal Code under this Amendment.

Collectively, the four areas of update will affect all zoning designations of the Municipal Code. The areas that will be updated are as follows: (1) updating the General Requirements in all three residential (R-1, R-2, and R-3) zones, (2) revising the maximum front yard hardscape percentage in all residential (R-1, R-2, and R-3) zones, (3) updating the language pertaining to the maximum front yard hardscape percentage in the landscaping requirements for all three residential (R-1, R-2, and R-3) and the commercial zones (C-1, C-2, C-3, O-P, O-S, M-1, M-P) zones, and (4) and adding language pertaining to the installation of artificial turf in all zones.

General Requirements:

Currently, the Municipal Code provides general requirements pertaining to the install
ation of mechanical equipment and metering equipment in residential zones.

The proposed Amendment would address said requirements in Section 9.08.040.010 (Single-Family Residential – General Requirements) of Chapter 9.08 (Single-Family Residential Development Standards), and Section 9.12.040.010 (Multifamily Residential – General Requirements) of Chapter 9.12 (Multifamily Residential Development Standards).

Page 329 of 434 ends

STAFF REPORT FOR PUBLIC HEARING PAGE 8 CASE NO. A-038-2023
The proposed Amendment would add additional language to address exterior e
nclosures that may be required for exterior equipment. Currently, the Municipal Code does not explicitly address equipment enclosures. The Amendment specifically allows for equipment enclosures, as required by manufacturer specifications, and requires said enclosures to be painted to match the color of the existing house. The intent is to create a more uniform look in residential zoned properties. It would also more closely match the requirements for commercial and mixed-use zone properties, which require all equipment to be screened from view, or placed in equipment enclosures.

While changes to State energy standards may necessitate the location of more efficient equipment on the exterior of residential units, the proposed Amendment would help improve their aesthetic appeal. The proposed language adds objective design standards that help shield mechanical equipment enclosures from being readily viewed from the public right-of-way, or adjacent properties. Requiring enclosures, and their attachments and/or appurtenances, to be painted to match the house, can help disguise the equipment. Furthermore, requiring equipment enclosures to be painted to match the house is consistent with other City requirements for new construction or improvements to match existing buildings.

Residential – General Development Standards:

In addition to the aesthetics, other benefits to limiting front yard hardscaping and requiring landscaping can include ensuring proper drainage of stormwater, energy savings, and ecological benefits. The proposed Amendment clarifies what land area counts toward the maximum hardscape percentage. Specifically, Section

9.08.040.020 (Residential – General Development Standards) of Chapter 9.08 (Single- Family Development Standards) and Section 9.12.040.020 (Residential – General Development Standards) of Chapter 9.12 (Multifamily Development Standards) are proposed to be revised.

With the proposed Amendment, the language defining the maximum front yard hardscaping will be altered. The specific language will now specify that driveways required for exterior parking, and the specific sizes for each driveway based on the size of the garage, are exempt from the maximum front yard hardscape requirements. The Municipal Code currently makes exceptions to the front yard landscape requirements for “standard driveway” areas that are required for parking.

Whereas a “standard driveway” was not previously defined, this proposed Amendment adds specificity to how much driveway area can be exempted from the maximum hardscape percentage.

For multiple-family developments, where there is often a central driveway, the front yard hardscape percentage is limited to a maximum of 50%, exclusive of any driveway or walkway necessary to access the site. Chapter 9.12 (Multifamily Development Standards) will therefore not make any exceptions for driveway parking. This is consistent with the typical pattern of multifamily developments with a shared driveway, and no driveway parking.

Page 330 of 434 ends

STAFF REPORT FOR PUBLIC HEARING PAGE 9 CASE NO. A-038-2023
In requiring a maximum 50% hardscape in the front yard setback, the Municipal Code ex
empts driveway parking from that requirement, as said parking is required in other sections of the Code. In the parking section of the Municipal Code, each garage requires a certain amount of driveway parking. For example, a two-car garage requires 400 square feet of driveway parking. Until the proposed Amendment, the Municipal Code has not specified the required driveway area, in terms of square feet, that can be exempted from the maximum hardscape percentage. The driveway area that can be exempted is the same size of the garage that the driveway is intended to lead to. Additionally, in some cases, properties can also have multiple driveways.

The revised language also identifies the specific driveway location that can be exempted. Only those driveways that lead to a garage, or a legally converted garage, can be exempted from the maximum hardscape requirements.

Landscaping – General Provisions:

Similar to the aforementioned General Development Standards, the landscaping re
quirements of the Municipal Code also regulate the maximum amount of hardscape that can be provided in the front yard setback. The proposed Amendment simplifies the calculation of the maximum hardscape percentage. Section 9.08.040.050 (Landscaping – General Provisions) of Chapter 9.08 (Single-Family Residential Development Standards), Section 9.12.040.080 (Landscaping – General Provisions) of Chapter 9.12 (Multifamily Residential Development Standards), and Section

9.16.040.060 (Landscaping – General Provisions) of Chapter 9.16 (Commercial, Office Professional, Industrial, and Open Space Development Standards) are proposed to be revised.

The current language in the Municipal Code allows for up to a five-foot (5’-0”) wide walkways to be exempted from the hardscape requirements in residential zones. The Code does not specify how many walkways, or the allowed locations of the walkways that can be exempted from this requirement. The Amendment strikes this allowance in its entirety, leaving a simpler maximum 50% hardscape area. In commercial zones, the 50% maximum requirement will be removed altogether, consistent with other Development Standards of Chapter 9.16 (Commercial, Office Professional, Industrial, and Open Space Development Standards).

The amended language of the Landscape General Provisions would be consistent with the aforementioned Residential General Development Standards section of the Municipal Code. The maximum hardscape in the front yard setback will continue to be limited to a maximum of 50%. By limiting, and specifying, the exceptions to the maximum hardscape area, the calculation becomes easier to implement. It is expected that the net amount of landscape versus hardscape will largely stay unchanged Citywide.

Landscaping Requirements:

Currently, the use of artificial turf as a substitute landscaping material is implemented wi
th similar regulations across all zones in the City. Any changes to the requirements for artificial turf will need to be revised across all residential, commercial, industrial, and mixed-use zones. Therefore, the proposed amendments would amend Section

Page 331 of 434 ends

STAFF REPORT FOR PUBLIC HEARING PAGE 10 CASE NO. A-038-2023

9.08.040.060 (Landscaping Requirements) of Chapter 9.08 (Single-Family Residential D
evelopment Standards), Section 9.12.040.090 (Landscaping Requirements) of Chapter 9.12 (Multifamily Residential Development Standards), Section 9.16.040.070 (Landscaping Requirements) of Chapter 9.16 (Commercial, Office Professional, Industrial, and Open Space Development Standards), and Section 9.18.120.030 (Landscaping Requirements) of Chapter 9.18 (Mixed Use Regulations and Development Standards).

The proposed Amendment to the language of the artificial turf regulations will add specific language to guide the installation of artificial turf. Currently, the Municipal Code defers artificial turf installation to manufacturers’ requirements. Compared to when the artificial turf requirements were originally crafted, artificial turf is much more readily available to purchase at home improvement stores and other retailers.

Retail purchases of artificial turf are often absent any guidance from manufacturer or certified landscapers; installing artificial turf is not bound to any proper installation techniques. This Amendment of the Municipal Code can give guidance on how to properly and safely install artificial turf across all zones.

The intent of the artificial turf landscaping is to mimic the look and feel of live grass.

The proposed Amendment is consistent with that same intent. Specifically, the proposed modification to the artificial turf requirements clarify what type of turf is required, how it shall be installed, what type of base layer is required, and guide the proper maintenance of said turf. If adhered to, the proposed language can help ensure artificial turf is installed safely, and that its appearance is long-lasting. This can help limit any hazards related to turf (e.g., uplifting seams or edges), allow proper drainage, and improve the aesthetics of turf installations.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

A-038-2023(A) - RETAIL SALE BY DELIVERY OF MEDICINAL CANNABIS The adoption of an ordinance is not subject to the California Environmental Quality Act (“CEQA”) where it can be seen with certainty that there is no possibility that the a
ctivity in question may have a significant effect on the environment (CEQA Guidelines Section 15061(b)(3). The proposed ordinance merely implements the provisions of State law governing retail sale of medicinal cannabis and will impose limits and procedural requirements on this activity, which is already permitted by State law.

The ordinance will not result in new land uses or authorize new activities that have the potential to significantly affect the environment.

A-0
38-2023(B) - FOCUSED CODE ENFORCEMENT ZONING AMENDMENT
The operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of
existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use, are categorically exempt from CEQA pursuant to CEQA’s Class 1 Categorical exemption. (CEQA Guidelines Section 15301) The proposed Amendment will make minor and clarifying amendments to existing zoning provisions governing enclosures screening mechanical equipment installed on private residential property, the

Page 332 of 434 ends

STAFF REPORT FOR PUBLIC HEARING PAGE 11 CASE NO. A-038-2023
calculation of the maximum amount of hardscape that may be installed in the front yard setback
on private property, and standards for the installation of artificial turf on private property, each of which are activities covered by the Class 1 exemption.

The proposed Code amendments are also exempt from CEQA pursuant to the “common sense” exemption because it can be seen with certainty there is no possibility they may have a significant impact on the environment. (CEQA Guidelines Section 15061(b)(3))
The modified language of the Amendment does not introduce new development standards; the Amendment merely clarifies the way the existing standards of the Code are applied. Therefore, it can be assumed that there is no environmental effect relating to the Amendment.

RECOMMENDATION:

Staff recommends that the Planning Commission:

1. Adopt Resoluti o
n No. 6071-23 recommending that the Garden Grove City
Council approve Amendment No. A-038-2023(A).

2. Adopt Resolution No. 6072-23 recommending that the Garden Grove City Council approve Amendment No. A-038-2023(B).

MARIA PARRA
Planning Services Manager
By: Mary Martinez
Urban Planner
By: Priit Kaskla, AICP
Associate Planner
Attachment 1: Department of Cannabis Control Regulations Pertaining to Retail Sale by De
livery of Medicinal Cannabis
Attachment 2: Resolution No. 6071-23 for Amendment No. A-038-2023(A) Attachment 3: Resolution No. 6072-23 for Amendment No. A-038-2023(B)

Page 333 of 434 ends

'flMk f w.
[/1~~~
'f~)iJL-
Attachment 1
§ 15414. Non-Storefront Retailer.

(a) A non-storefront retailer licensee sh all be authorized to conduct retail sales exclusively by delivery as defined in Business and Professions Code section 26001(o). (b) A complete application for a non-storef ront retailer license shall include all the information required in an application for a retailer license. (c) A non-storefront retailer licensee shall comply with all the requirements applicable to retailer licensees, except for those prov isions related to public access to the licensed premises and the retail area.
(d) The licensed premises of a non-storefront retailer licensee shall be closed to the public.

§ 15415. Delivery Employees.

(a) All deliveries of cannabis goods shall be performed by a delivery employee who is directly employed by a licensed retailer.
(b) Each delivery employee of a licensed retailer shall be at least 21 years of age. (c) All deliveries of cannabis goods shall be made in person. A delivery of cannabis goods shall not be made through the use of an unstaffed vehicle. (d) Deliveries of cannabis goods shall be received by customers only during the hours of operation established by section 15403. Delivery employees shall return to the licensed premises after making their last delivery of the day if they have any unsold cannabis goods to return to the premises.
(e) During the process of delivery, the licensed retailer’s delivery employee may not engage in any activities except for cannabis goods delivery and necessary rest, fuel, or vehicle repair stops.
(f) A delivery employee of a licensed retailer shall, during deliveries, carry a copy of the retailer's current license, a copy of the QR Code certificate issued by the Department, which complies with section 15039, subsection (d), the employee's government-issued identification, and an identification ba dge provided by the employer pursuant to section 15043. A delivery employee shall provide a copy of the retail license, a copy of the QR Code cert ificate, and their employee identification badge to a delivery customer upon request.
(g) Prior to providing cannabis goods to a delivery customer, a delivery employee shall confirm the identity and age of the delivery customer as required by section 15404 and ensure that all cannabis goods sold comply with requirements of section 15413.
(h) A licensed retailer shall maintain an accurate list of the retailer's delivery employees and shall provide the list to the Department upon request.

§ 15415.1. Deliveries Facilitated by Technology Platforms.

(a) A licensed retailer or licensed microbusin ess shall not sell or otherwise transfer any cannabis goods to a customer through the use of an unlicensed third party, intermediary business, broker, or any other business or entity. (b) Notwithstanding subsection (a) of this section, a licensed retailer or licensed microbusiness may contract with a service that provides a technology platform to

Page 334 of 434 ends

Attachment 1
facilitate the sale and delivery of cannabis goods, in accordance with all of the following:
(1) The licensed retailer or licensed microb usiness does not allow for delivery of cannabis goods by the technology platform service provider. (2) The licensed retailer or licensed microbusiness does not share in the profits of the sale of cannabis goods with the technology platform service provider, or otherwise provide for a percentage or portion of the cannabis goods sales to the technology platform service provider.
(3) The licensed retailer or licensed microb usiness shall not advertise or market cannabis goods in conjunction with the technology platform service provider, outside of the technology platform, and shall ensu re that the technology platform service provider does not use the licensed retaile r's or licensed microbusiness's license number or legal business name on any advertisement or marketing that primarily promotes the services of the technology platform.
(4) The licensed retailer or licensed microbusiness shall ensure the following information is provided to customers:
(A) Any cannabis goods advertised or offered for sale on or through the technology platform shall disclose, at a minimu m, the licensed retailer's or licensed microbusiness's legal business name and license number. (B) Customers placing an order for cannabis goods through the technology platform shall be able to easily identify the licensed retailer or licensed microbusiness that each cannabis good is being ordered or purchased from. This information shall be available to the customer prior to the cust omer placing an order or purchasing the cannabis goods.
(5) All required sales invoices and receipts , including any receipts provided to the customer, shall disclose, at a minimum, the licensed retailer's or licensed microbusiness's legal business name and license number. (6) All other delivery, marketing, and adve rtising requirements under this division are complied with.

§ 15416. Delivery to a Physical Address.

(a) A delivery employee may only deliver cannabis goods to a physical address in California.
(b) A delivery employee shall not leave th e State of California while possessing cannabis goods.
(c) A delivery employee shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency.

This prohibition applies to land held in trust by the United States for a tribe or an individual tribal member unless the deliver y is authorized by and consistent with applicable tribal law.
(d) A delivery employee may deliver to any jurisdiction within the State of California provided that such delivery is conducted in compliance with all delivery provisions of this division.
(e) A delivery employee shall not deliver cannabis goods to a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center.

Page 335 of 434 ends

Attachment 1
§ 15417. Delivery Vehicle Requirements.

(a) A licensed retailer's delivery employee, carrying cannabis goods for delivery, shall only travel in an enclosed motor vehicle. Any vehicle used in the delivery of cannabis goods shall be operated by a delivery employee of the licensee. A vehicle used in the delivery of cannabis goods shall not have any marking or other indications on the exterior of the vehicle that may indicate that the delivery employee is carrying cannabis goods for delivery. Only the licensee or an employee of the retailer licensee for whom delivery is being performed shall be in the delivery vehicle. (b) While carrying cannabis goods for delivery, a licensed retailer's delivery employee shall ensure the cannabis goods are not visible to the public. Cannabis goods shall be stored in a secure, fully enclosed trunk that cannot be accessed from inside the vehicle, or in a secured area or compartment within the interior of the vehicle. A “secured area” is defined as an area where solid or locking metal partitions, cages, or high-strength shatterproof acrylic can be used to create a secure compartment in the fully enclosed vehicle. The secured area may be comprised on three sides by any part of the body of the vehicle, provided the parts of the vehicle used for the purposes of this section are shatterproof and are not made of glass. (c) A licensed retailer's delivery employ ee shall not leave cannabis goods in an unattended motor vehicle unless the motor vehicle is locked and equipped with an active vehicle alarm system. Any cannabis goods left in an unattended vehicle must be stored in a container as required in subsection (b). (d) A vehicle used for the delivery of ca nnabis goods shall be outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of the delivery vehicle and recording a history of all locations traveled to by the delivery employee while engaged in delivery. A dedicated GPS device must be owned by the licensee and used for delivery only. The device shall be either permanently or temporarily affixed to the delivery vehicle and shall remain active and inside of the delivery vehicle at all times during delivery. At all times, the licensed retailer shall be able to identify the geograp hic location of all delivery vehicles that are making deliveries for the licensed retailer and document the history of all locations traveled to by a delivery empl oyee while engaged in delivery. A licensed retailer shall provide this information to the Department upon request. The history of all locations traveled to by a delivery employee while engaging in delivery shall be maintained by the licensee for a minimum of 90 days.
(e) Upon request, a licensed retailer shall provide the Department with information regarding any motor vehicle used for the delivery of cannabis goods, including the vehicle's make, model, color, Vehicle Identification Number, license plate number and Department of Motor Vehicles registration information.
(f) Any motor vehicle used by a licensed retailer to deliver cannabis goods is subject to inspection by the Department. Vehicles used to deliver cannabis goods may be stopped and inspected by the Department at any licensed premises or during delivery.

§ 15418. Cannabis Goods Carried During Delivery.

(a) A licensed retailer's delivery employee shall not carry cannabis goods in the delivery vehicle with a value in excess of $10,000 at any time.

Page 336 of 434 ends

Attachment 1
(b) For the purposes of this section, the value of cannabis goods shall be determined using the current retail price of all cannabi s goods carried by, or within the delivery vehicle of, the licensed retailer's delivery employee.
(c) A delivery employee may only carry cannabis goods, cannabis accessories, branded merchandise of any licensee, or promotional materials in the delivery vehicle and may only perform deliveries for one licensed retailer at a time. A delivery employee must depart and return to the same licensed premises before taking possession of any cannabis goods from another licensee to perform deliveries. (d) Before leaving the licensed premises, the licensed retailer's delivery employee must have a delivery inventory ledger of all cannabis goods provided to the licensed retailer's delivery employee. The contents of the delivery inventory ledger must comply with the requirements of section 15049.3. During the delivery trip, as defined in section 15049.3, the delivery employee shall maintain the delivery inventory ledger in hard copy or electronically, the latter of which may be an electronic copy maintained in the track and trace system. The delivery inventory ledger must be updated after each completed delivery to reflect the remaining inventory carried by the delivery employee. The delivery inventory ledger must otherwise be updated in accordance with the requirements of section 15049.3, and then entered into the track and trace system no later than the end of the calendar day on which the delivery trip occurred.
(e) The licensed retailer's delivery employee shall maintain a log that includes all stops from the time the licensed retailer's delivery employee leaves the licensed premises to the time that the licensed retailer's delivery employee returns to the licensed premises, and the reason for each stop. The log shall be turned in to the licensed retailer when the licensed retailer's delivery employee returns to the licensed premises. The licensed retailer must main tain the log as a commercial cannabis activity record as required by this division. The log may be maintained electronically. (f) Prior to arrival at any delivery location, the licensed retailer must have received a delivery request from the customer and provided the delivery request receipt to the licensed retailer's delivery employee electron ically or in hard copy. The delivery request receipt provided to the licensed retailer's delivery employee shall contain all of the information required in section 15420, except for the date and time the delivery was made, and the signature of the customer.
(g) Immediately upon request by the Department or any law enforcement officer, the licensed retailer's delivery employee shall provide:
(1) The delivery inventory ledgers from the time the licensed retailer's delivery employee left the licensed premises up to the time of the request; (2) All delivery request receipts for cannabis goods carried by the delivery employee, in the delivery vehicle, or any deliveries that have already been made to customers; and
(3) The log of all stops from the time th e licensed retailer's delivery employee left the licensed premises up to the time of the request.
(h) If a licensed retailer's delivery employee does not have any delivery requests to be performed for a 30-minute period, the lic ensed retailer's delivery employee shall not make any additional deliveries and shall return to the licensed premises. Required meal breaks shall not count toward the 30-minute period.

Page 337 of 434 ends

Attachment 1
(i) Upon returning to the licensed premises, all undelivered cannabis goods shall be returned to the licensed retailer's inventory and recorded within the track and trace system in accordance with section 15049.3.

§ 15419. Cannabis Consumption During Delivery.

A licensed retailer's delivery employees shall not consume cannabis or cannabis products while delivering cannabis goods to customers.

§ 15420. Delivery Request Receipt.

A licensed retailer shall prepare a hard copy or electronic delivery request receipt for each delivery of cannabis goods.
(a) The delivery request receipt shall contain the following:
(1) The legal business name and license number of the licensed retailer; (2) The first name and employee number of the licensed retailer's delivery employee who delivered the order;
(3) The first name and employee number of the licensed retailer's employee who prepared the order for delivery;
(4) The first name of the customer and a licensed retailer-assigned customer number for the person who requested the delivery;
(5) The date and time the delivery request was made;
(6) The delivery address;
(7) A detailed description of all cannabis goods requested for delivery. The description shall include the weight, volume, or any other accurate measure of the amount of all cannabis goods requested;
(8) The total amount paid for the delivery, including any taxes or fees, the cost of the cannabis goods, and any other charges related to the delivery; and (9) Upon delivery, the date and time the delivery was made, and the handwritten or electronic signature of the customer who received the delivery. (b) At the time of the delivery, the delivery employee of the retailer shall provide the customer who placed the order with a hard or electronic copy of the delivery request receipt. The delivery employee shall retain a hard or electronic copy of the signed delivery request receipt for the licensed retailer's records. (c) For the purposes of this section, an employee number is a distinct number assigned by a licensed retailer to an employee that would allow the licensed retailer to identify the employee in documents or records using the employee number rather than the employee's full name. A licensed retailer shall be able to identify the employee associated with each empl oyee number upon request from the Department.
(d) For the purposes of this section, a customer number is a distinct number assigned by a licensed retailer to a customer that wo uld allow the licensed retailer to identify the customer in documents or records using the customer number rather than the customer's full name. A licensed retailer sh all be able to identify the customer associated with each customer number upon request from the Department.

Page 338 of 434 ends

Attachment 1
§ 15421. Delivery Route.

While making deliveries of cannabis good s, a licensed retailer's delivery employee shall only travel from the retailer's licens ed premises to the delivery address; from one delivery address to another delivery address; or from a delivery address back to the retailer's licensed premises. A delivery em ployee of a licensed retailer shall not deviate from the delivery path described in this section, except for necessary rest, fuel, or vehicle repair stops, or because road conditions make continued use of the route unsafe, impossible, or impracticable.

Page 339 of 434 ends

RESOLUTION NO. 6071-23

A RESOLUTION OF THE PLANNING COMMISSI ON OF THE CITY OF GARDEN GROVE

RECOMMENDING THAT THE CITY COUNCIL APPROVE AMENDMENT
NO. A-038-2023(A), A ZONING TEXT AMENDMENT TO CHAPTER 9.52 (CANNABIS ACTIVITIES) OF TITLE 9 (LAND USE) OF THE GARDEN GROVE MUNICIPAL C O D E T O

PERMIT THE RETAIL SALE BY DELIVERY OF MEDICINAL CANNABIS IN THE C I T Y SUBJECT TO SPECIFIED REGULATIONS IN COMPLIANCE WITH STATE LAW.

B E I T R E S O L V E D t h a t t h e P l a n n i n g C o m m i s s i o n o f t h e C i t y o f G a r d e n G r o v e , i n regular session assembled on October 19, 2023, does hereby recommend that the City Council approve Amendment No. A-038-2023(A) and adopt the draft Ordinance attached hereto as Exhibit “A”.

BE IT FURTHER RESOLVED in the matter of Amendment No. A-038-2023(A), the Planning Commission of the City of Garden Grove does hereby report as follows:

1. The case was initiated by the City of Garden Grove.

2. The City of Garden Grove is proposing a zoning text amendment to Chapter

9.52.020 (Cannabis Dispensaries and Delivery Prohibited) of Chapter 9.52 (Cannabis Activities) of Title 9 of the Garden Grove Municipal Code to permit the retail sale by delivery of medicinal cannabis in the City subject to specified regulations in compliance with State law.

3. The Planning Commission recommends the City Council find that the proposed amendment is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) (It can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment).

4. Pursuant to legal notice, a public hearing was held on October 19, 2023, and all interested persons were given an opportunity to be heard.

5. Report submitted by City staff was reviewed.

6. The Planning Commission gave due and careful consideration to the matter during its meeting of October 19, 2023; and

BE IT FURTHER RESOLVED, FOUND AND DETERMINED that the facts and reasons supporting the conclusion of the Planning Commission are as follows:

FACTS:

On January 26, 2016, the City Council adopted Ordinance No. 2863, adding Chapter

9.52 "Cannabis Activities" to Title 9 of the Garden Grove Municipal Code. Chapter

9.52 prohibited the establishment, maintenance, or operation of marijuana dispensaries and related commercial cannabi s activities, includin g the distribution,

Page 340 of 434 ends

Resolution No. 6071-23 Page 2

manufacture, cultivation and delivery of ca nnabis and/or cannabis products in all zoning districts, planned uni t development districts, and specific plan areas in the City.

On November 8, 2016, California voters approved Proposition 64 – the Control, Regulate, and Tax Adult Use of Marijuana Act – legalizing recreational marijuana use for adults 21 or older. Although th e measure legalized recreational use of marijuana, it allowed the City to continue to prohibit marijuan a business activities, except that the City could not prohibit ad ults 21 years or older from cultivating up to six (6) living marijuana plants inside a private residence, or inside an accessory structure that is fully enclosed and secured located at that private residence. In 2017, the City adopted Ordinance No. 2882 approving Amendment No. A-017-2017 amending portions of Chapter 9.52 to conform the City’s Land Use Code by incorporating the changes to State law regarding private cannabis cultivation. The ordinance affirmed continuation of the ba n against marijuana business activities, but carved out the private cultivation exception so that the City’s ban could conform to the new measure.

Senate Bill (SB) 1186 (Chapter 395, Statutes of 2022), known as the Medicinal Cannabis Patients’ Right of Access Act, prohibits loca l jurisdictions, beginning January 1, 2024, from adopting or enforcing any regulation that prohibits, or has the effect of prohibiting, the retail sale by delivery within the jurisdiction of medicinal cannabis to medicinal cannabis pa tients or their primary caregivers by licensed medicinal cannabis businesses in a timely and readily accessible manner, and in types and quantities that are su fficient to meet demand from medicinal cannabis patients within the local jurisdiction. SB 1186 permits local jurisdictions to adopt and enforce reasonable regulations on retail sale by delivery of medicinal cannabis, and does not limit or otherwise affect the ability of a local jurisdiction to adopt and enforce any regulations on commercial cannabis operations other than retail sale by delivery of medicinal cannabis in the local jurisdiction.

To respond to SB 1186, the City is proposing to amend Chapter 9.52.020 (Cannabis Dispensaries and Delivery Prohibited) of Ch apter 9.52 (Cannabis Ac tivities) of Title 9 of the Garden Grove Municipal Code to permit the retail sale by delivery of medicinal cannabis in the City subject to specified regulations in compliance with recent State law changes.

The proposed amendment will allow the City of Garden Grove to be in compliance with the provisions of SB 1186, which require cities to permit the retail sale by delivery of medicinal cannabis within thei r jurisdictions. The proposed amendment will also include additional reasonable r egulations intended to continue to protect the public health, safety and welfare of the community.

Page 341 of 434 ends

Resolution No. 6071-23 Page 3

The California Department of Cannabis Control regulates the sale and delivery of both adult use and medicinal cannabis and has adopted detailed regulations governing many aspects of cannabis delivery operations. The City is proposing restrictions and requirements in additi on to the provisions enforced by the Department of Cannabis Control.

The proposed amendment does not authorize the establishment of physical premises within the City from which retail sale by delivery of medicinal cannabis is conducted. There are presently more than thirty (30) licensed medicinal cannabis retailers located within a 15 mile radius of the City of Garden Grove from which retail sale by delivery of medicinal cannabi s in the City is or may be available.

Therefore, prohibiting the establishment of physical premises within the City from which retail sale by delivery of medicinal cannabis is conducted will not have the effect of prohibiting the retail sale by delivery of medicinal cannabis to medicinal cannabis patients or their primary caregi vers in a timely and readily accessible manner in types and quantities that are sufficient to meet demand from medicinal cannabis patients who reside in the City.

FINDINGS AND REASONS:

1. The Amendment is internally consistent with the goals, objectives and elements of the City’s General Plan.

The proposed code amendment to Chapter 9.52.020 (Cannabis Dispensaries and Delivery Prohibited) of Chapter 9.52 (Cannabis Activities) of Title 9 of the Garden Grove Municipal Code will affirm continuation of the City’s ban against cannabis activities, but permit and regulate the retail sale by delivery of medicinal cannabis in the City to medicinal cannabis patients or their primary caregivers by licensed medicinal cannabis businesses located outside of the City in a timely and readily accessible manner and in types and quantities that are sufficient to meet demand from medicinal cannabis patients within the City. The proposed amendment will not allow for the establishment or development of new land uses in the City. The General Plan does not contain specific goals or policies pertaining to cannabis-related activities. However, continuing to prohibit cannabis dispensaries in the City, with the limited exception for retail sale by delivery of medicinal cannabis, as required by Senate Bill 1186, is consistent with the City’s General Plan Land Use Element, which encourages compatibility between uses and seeks to protect residential areas from the effects of potentially incompatible uses.

The proposed amendment is also consistent with the crime reduction goals set forth in the General Plan Safety Element by establishing regulations and registration requirements for medici nal cannabis businesses that engage in the retail sale of medicinal cannabis in the City.

2. The Amendment will promote the public interest, health, safety and welfare.

Page 342 of 434 ends

Resolution No. 6071-23 Page 4

The proposed Code Amendment will conform to SB 1186 by continuing to prohibit commercial cannabis activities in the City, but permit and regulate the retail sale by delivery of medicina l cannabis in the City to medicinal cannabis patients or their primary car egivers by licensed medicinal cannabis businesses located outside of the City in a timely and readily accessible manner and in types and quantities that are sufficient to meet demand from medicinal cannabis patients within th e City. The California Department of Cannabis Control regulates the sale and delivery of cannabis and has adopted detailed regulations governing many as pects of cannabis delivery operations.

The proposed code amendment will include restrictions and requirements in addition to the provisions enforced by the Department of Cannabis Control, which will promote the public interest, health, safety, and welfare, such as the requirement for a City business license, the prohibition of adult-use cannabis and cannabis accessories/merchandise deliveries, the restriction of deliveries to physical addresses only not located on public or school properties, the limit of the value of cannabis goods on the delivery vehicles not to exceed $5,000, and the requirement for vehicle delivery logs, registration, and insurance information.

INCORPORATION OF FACTS AND FINDINGS SET FORTH IN STAFF REPORT:

In addition to the foregoing the Planning Commission incorporates herein by this reference, the facts and reasons set forth in the staff report.

BE IT FURTHER RESOLVED that the Planning Commission does conclude:

1. Amendment No. A-038-2023(A) possesses characteristics that would indicate justification of the request in acco rdance with Municipal Code Section

9.32.030.D.1 (Code Amendment).

2. The Planning Commission recommend s that the City Council approve Amendment No. A-038-2023(A) and adopt the amendments to Title 9 reflected in the draft Ordinance attached hereto as Exhibit "A".

Adopted this 19th day of October 2023

ATTEST: /s/ JOSH LINDSAY ___
CHAIR
/s/ JUDITH MOORE _____

RECORDING SECRETARY

STATE OF CALIFORNIA )

Page 343 of 434 ends

Resolution No. 6071-23 Page 5

COUNTY OF ORANGE ) SS:

CITY OF GARDEN GROVE )

I , J U D I T H M O O R E , S e c r e t a r y o f t he City of Garden Grove Planning Commission, do hereby certify that the foregoing Resolution was duly adopted by the Planning Commission of the City of Garden Grove, California, at a meeting held on October 19, 2023, by the following vote:

AYES: COMMISSIONERS: (7) ARBGAST, CUEVA, CUNNINGHAM,

LARICCHIA, LINDSAY, PAREDES, RAMIREZ
NOES: COMMISSIONERS: (0) NONE
ABSENT: COMMISSIONERS: (0) NONE

/s/ JUDITH MOORE

RECORDING SECRETARY

PLEASE NOTE: Any request for court review of this decision must be filed within 90 days of the date this decision was final (See Code of Civil Procedure Section 1094.6).

A decision becomes final if it is not time ly appealed to the City Council. Appeal deadline is November 9, 2023.

Page 344 of 434 ends

RESOLUTION NO. 6072-23

A RESOLUTION OF THE PLANNING COMMISSI ON OF THE CITY OF GARDEN GROVE RECOMMENDING THAT THE CITY COUNCIL APPROVE AMENDMENT NO.

A-038-2023(B), A ZONING TEXT AMENDMENT TO PORTIONS OF CHAPTERS 9.08,

9.12, 9.16, AND 9.18 OF TITLE 9 OF THE CITY OF GARDEN GROVE MUNICIPAL

CODE ESTABLISHING ENHANCED STANDARDS FOR THE SCREENING OF

MECHANICAL EQUIPMENT WITHIN AN EXTERIOR EQUIPMENT ENCLOSURE IN RESIDENTIAL ZONES; CLARIFYING HOW THE MAXIMUM PERMITTED HARDSCAPE

COVERAGE IN THE FRONT YARD SETBACK IN RESIDENTIAL, COMMERCIAL, INDUSTRIAL, AND OPEN SPACE ZONES IS CALCULATED; AND UPDATING THE STANDARDS FOR ARTIFICIAL TURF IN ALL ZONES.

B E I T R E S O L V E D t h a t t h e P l a n n i n g C o m m i s s i o n o f t h e C i t y o f G a r d e n G r o v e , i n regular session assembled on October 19, 2023, does hereby recommend that the City Council approve Amendment No. A-038-2023(B) and adopt the draft Ordinance attached hereto as Exhibit “A”.

BE IT FURTHER RESOLVED in the matter of Amendment No. A-038-2023(B), the Planning Commission of the City of Garden Grove does hereby report as follows:

1. The case was initiated by the City of Garden Grove.

2. The City of Garden Grove is proposing a zoning text amendment to portions of Chapters 9.08, 9.12, 9.16, an d 9.18 (Single-Family Residential Development Standards, Multifamily Residential Development Standards, Commercial, Office Professional, Indu strial, and Open Space Development Standards, and Mixed Use Regulations and Development Standards, respectively) of Title 9 of the City of Garden Grove Municipal Code to specify standards for the screening of mechanic al equipment within an exterior equipment enclosure in residential zones; to clarify how the maximum permitted hardscape coverage in the fr ont yard setback in residential, commercial, industrial, and open space zones is calculated; and to update the standards for artificial turf in all zones.

3. The Planning Commission recommends the City Council find that the proposed Amendment is exempt from the California Environmental Quality Act (“CEQA”), Cal. Pub. Resources Code Section 21000 et seq., pursuant to Sections 15301, Existing Facilities, and 15601(b)(3), Common Sense, of the State CEQA Guidelines (Cal. Code of Regs., Title 14, Sections 15301 and 15601(b)(3)).

4. Pursuant to legal notice, a public hearing was held on October 19, 2023, and all interested persons were given an opportunity to be heard.

5. Report submitted by City staff was reviewed.

Page 345 of 434 ends

Resolution No. 6072-23 Page 2

6. The Planning Commission gave due and careful consideration to the matter during its meeting of October 19, 2023; and

BE IT FURTHER RESOLVED, FOUND AND DETERMINED that the facts and reasons supporting the conclusion of the Planning Commission are as follows:

FACTS:

There are four updates to Title 9 of the Municipal Code under this Amendment.

Collectively, the four areas of update will affect all zoning designations of the Municipal Code. The areas that will be updated are as follows: (1) updating the General Requirements for exterior mechanical equipment in all three residential (R- 1, R-2, and R-3) zones, (2) revising the maximum front yard hardscape percentage in all residential (R-1, R-2, and R-3) zone s, (3) updating the language pertaining to the maximum front yard hardscape percentage in the landscaping requirements for all three residential (R-1, R-2, and R-3) and the commercial zones (C-1, C-2, C-3, O-P, O-S, M-1, M-P) zones, and (4) an d updating the language pertaining to the installation of artificial turf in all zones.

Currently, the Municipal Code provides gen eral requirements pertaining to the installation of mechanical equipment and metering equipment in residential zones.

The proposed Amendment would address said requirements in Section

9.08.040.010 (Single-Family Residential – General Requirements) of Chapter 9.08 (Single-Family Residential Development Standards), and Section 9.12.040.010 (Multifamily Residential – General Requ irements) of Chapter 9.12 (Multifamily Residential Development Standards).

The Municipal Code does not explicitly address equipment enclosures. The Amendment specifically allows for equ ipment enclosures, as required by manufacturer specifications, but requires said enclosures to be painted to match the color of the existing house. The intent i s t o c r e a t e a m o r e u n i f o r m l o o k i n residential zoned properties. The proposed language adds objective design standards that help shield mechanical equipment enclosures from being readily viewed from the public right-of-way, or adjacent properties.

The Municipal Code regulates the maximum amount of hardscape that can be provided in the front yard setback for residen tial uses. The intent is to create a more attractive streetscape, maintaining a certain amount of landscaping in the front yard. The proposed Amendment clarifies what land area counts toward the maximum hardscape percentage. Specifically, Section 9.08.040.020 (Residential – General Development Standards) of Chapter 9.08 (Single-Family Development Standards) and Section 9.12.040.020 (Residential – General Development Standards) of Chapter 9.12 (Multifamily Development Standards) are proposed to be revised.

Page 346 of 434 ends

Resolution No. 6072-23 Page 3

With the proposed Amendment, the language defining the maximum front yard hardscaping will be altered. In the R-1 (Single-Family Residential) zone, the specific language will now specify that driveways required for exterior parking, and the specific sizes for each driveway bas ed on the size of the garage, are exempt from the maximum front yard hardscape requirements. Until the proposed Amendment, the Municipal Code has not specified the required driveway area, in terms of square feet, that can be exempted from the maximum hardscape percentage. In the R-2 and R-3 (Limited Multiple Residential) and R-3 (Multiple- Family Residential) zones, only drivew ays and pedestrian walkways necessary to access the site are excluded from the 50% hardscape area.

Similar to the aforementioned General Development Standards, the landscaping requirements of the Municipal Code reiterate the maximum amount of hardscape that can be provided in the front yard se tback. Section 9.08.040.050 (Landscaping – General Provisions) of Chapter 9.08 (Single-Family Residential Development Standards), Section 9.12.040.080 (Landscaping – General Provisions) of Chapter

9.12 (Multifamily Residential Development Standards), and Section 9.16.040.060 (Landscaping – General Provisions) of Chapter 9.16 (Commercial, Office Professional, Industrial, and Open Space Development Standards) are proposed to be revised.

The maximum hardscape in the front yard setback will continue to be limited to a maximum of 50% in all residential zones. The current language in the Municipal Code allows for a five-foot (5’-0”) wide walkways to be exempted from the hardscape requirements. The exception for walkways will be removed altogether.

In the commercial, industrial, and open space zones, the 50% maximum requirement will be removed altogether, consistent with other Development Standards of Chapter 9.16 (Commercial, Office Professional, Industrial, and Open Space Development Standards).

Currently, the use of artificial turf as a substitute landscaping material is implemented with similar regulations across all zones in the City. Any changes to the requirements for artificial turf w ill need to be revised across all residential, commercial, industrial, and mixed-us e zones. Therefore, the proposed amendments would amend Section 9.08.040.060 (Landscaping Requirements) of Chapter 9.08 (Single-Family Residenti al Development Standards), Section

9.12.040.090 (Landscaping Requirements) of Chapter 9.12 (Multifamily Residential Development Standards), Section 9.16.040.070 (Landscaping Requirements) of Chapter 9.16 (Commercial, Office Professional, Industrial, and Open Space Development Standards), and Section 9.18.120.030 (Landscaping Requirements) of Chapter 9.18 (Mixed Use Regulations and Development Standards).

The proposed Amendment to the language of the artificial turf regulations will add specific language to guide the installation of artificial turf. Currently, the Municipal Code defers artificial turf installation to manufacturers’ requirements. Retail purchases of artificial turf are often ab sent any guidance from manufacturer or

Page 347 of 434 ends

Resolution No. 6072-23 Page 4

certified landscapers. This Amendment of the Municipal Code can give guidance on how to properly and safely install artificial turf across all zones. Specifically, the proposed modification to the ar tificial turf requirements cl arify what type of turf is required, how it shall be installed, what type of base layer is required, and guide the proper maintenance of said turf. If adhered to, the proposed language can help ensure artificial turf is installed safely, and that its appearance is long-lasting.

FINDINGS AND REASONS:

1. The Amendment is internally consistent with the goals, objectives and elements of the City’s General Plan.

The General Plan contains objectives, goal s, policies, and implementation programs that address well-planned commercial areas with a variety of uses, safe and effective design standards, and land use compatibility. One of the many objectives in the City’s General plan is to uphold a high standard of property maintenance across all land uses and zones throughout the City. The proposed Amendment achieves this objective by making M unicipal Code requirements easier to implement, and enforce. In particular, the Amendment is consistent with the following General Plan Goals, Policies, and Implementation Measures:

Goal LU-2 Stable, well-maintained residential neighborhoods in Garden Grove. The proposed Amendment is intended to assist Code Enforcement officers in addressing property maintenance issues throughout th e City. Modifying the Municipal Code to be more readily understood by property owners, and easier for Code Enforcement officers to administer, can help maintain a high standard of property maintenance.

The proposed Amendment addresses current deficiencies in the Code, and clarifies requirements that are persistently difficult for Code Enforcement officers to enforce.

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 Amendments are intended to help Code Enforcement officers in their inspections of property maintenance- related complaints. The modified language makes the Municipal Code easier to interpret and enforce. This can help maintain a high standard of property maintenance. Specifically, the proposed Amendment helps maintain the appearance of mechanical equipment within an exterior equipment enclosure in residential zones; clarify how the ma ximum permitted hardscape coverage in the front yard setback in residential, commercia l, industrial, and open space zones is calculated; and to update the standards for artificial turf in all zones.

LU-IMP-2A Continue to monitor maintenance standards in neighborhoods to maintain high standards of appearance and stability in the neighborhood. T h e City’s Code Enforcement team has received recurrent complaints pertaining to a selection of Municipal Code Standards. This includes standards for mechanical equipment, hardscaping in the front yard setb ack, and artificial turf installations.

Page 348 of 434 ends

Resolution No. 6072-23 Page 5

The proposed Amendment addresses all of these repeat issues. Modifying the standards within the Municipal Code will help simplify the implementation of said standards. The Amendment is intended to clarify the existing provisions in the Code, not to add additional regulations. This will help sustain high standards of property maintenance throughout the City.

Goal LU-18 Preservation of City quality and character through compliance with relevant codes and regulations. The proposed Amendments are intended to help Code Enforcement officers in their inspec tions of property maintenance-related complaints. The modified language makes the Municipal Code easier to interpret and implement, by both property owners an d Code Enforcement officers alike. This can help maintain a high standard of property maintenance.

Policy LU-18.1 Review the Zoning Code and determine which sections are outdated to meet current trends, regulations, adopted community visions, and the General Plan 2030 land use designations, and revise as necessary. The proposed Amendment addresses recent property maintenance trends that the City’s Code Enforcement officers routinely encounter. The subject Municipal Code sections that are consistently cited as difficult to understand or outdated, are proposed to be revised as a part of this Amendment. These modifications can help keep the Municipal Code up-to-date, and more easily understood and implemented.

Goal CD-1 Create a positive and distinctive City image by protecting historic resources, and by strengthening the positive qualities of the City’s overall image and neighborhood identity. The proposed Amendment is intended to assist Code Enforcement address property maintenance issues in various neighborhoods throughout the City. Clarifying the Municipal Code to be easier to interpret and enforce can help maintain a high standard of property maintenance. Properly maintaining property helps strengthen the positive image of the City.

CD-IMP-8A Amend the City’s Zoning Code to incorporate development standards.

The proposed Amendment revises existing development standards for mechanical equipment, maximum permitted hardscape coverage in the front yard setback, and standards for artificial turf installations. The proposed language of the specific Code changes incorporate objective development standards. Codifying development standards can contribute to a more cohesive Citywide aesthetic, and also assist property owners in their maintenance of properties across all zones.

CON-IMP-1C Promote site appropriate, low-water-use, and drought tolerant native plants city-wide. In an effort to reduce water use for irrigation, the Municipal Code allows for the installation of artificial turf as a substitute for live grass lawns. The Amendment keeps in that intent. The prop osed modifications to the artificial turf standards of the Municipal Code helps promot e the proper installation of artificial turf. Adhering to the language of the Amendment will help limit potential hazards, and ensure the proper maintenance of artificial turf areas.

Page 349 of 434 ends

Resolution No. 6072-23 Page 6

2. The Amendment will promote the public interest, health, safety and welfare.

The zoning and development standards proposed in this Amendment promote the public interest, health, safety, and welfare by helping to achieve a high standard of property maintenance. The Development Standards and Landscaping Requirements in the Municipal Code provide regulations th at help maintain public health, safety, and welfare needs of the City.

By maintaining high property maintenance standards, the Municipal Code promotes the public interest by helping keep Garden Grove an attractive place to live. Well- maintained properties and their aesthetic values can increase property values. In addition, the proposed Amendment can help reduce energy costs (e.g., by promoting landscaping), allow for the infiltration of stormwater, and reduce potential hazards (e.g., tripping hazards from improperly installed artificial turf). All of these benefits have the public interest in mind; every property owner can receive these benefits if they adhere to the standards of the Municipal Code.

The proposed Amendment also promotes public health, safety, and welfare. The revised language helps ensure mechanical equipment is installed correctly, according to the manufacturers’ specifications. These specifications are intended to ensure the safe operation of the specific equipment . Additionally, the proposed Amendment intends to promote the proper maintenance of the front yard either through hardscaping or landscaping. Proper maintenance of the front yard in accordance with the Amendment can reduce tripping hazards, facilitate proper stormwater drainage to reduce localized flooding, and reduce energy costs. These benefits all propose the public health, safety, and welfare.

INCORPORATION OF FACTS AND FINDINGS SET FORTH IN STAFF REPORT:

In addition to the foregoing the Planning Commission incorporates herein by this reference, the facts and reasons set forth in the staff report.

BE IT FURTHER RESOLVED that the Planning Commission does conclude:

1. Amendment No. A-038-2023(B) possesses characteristics that would indicate justification of the request in acco rdance with Municipal Code Section

9.32.030.D.1 (Code Amendment).

2. The Planning Commission recommend s that the City Council approve Amendment No. A-038-2023(B) and adopt the amendments to Title 9 reflected in the draft Ordinance attached hereto as Exhibit "A".

Adopted this 19th day of October 2023

Page 350 of 434 ends

Resolution No. 6072-23 Page 7

ATTEST: /s/ JOSH LINDSAY ___
CHAIR
/s/ JUDITH MOORE _____

RECORDING SECRETARY

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS:

CITY OF GARDEN GROVE )

AYES: COMMISSIONERS: (7) ARBGAST, CUEVA, CUNNINGHAM,

LARICCHIA, LINDSAY, PAREDES, RAMIREZ
NOES: COMMISSIONERS: (0) NONE
ABSENT: COMMISSIONERS: (0) NONE

/s/ JUDITH MOORE

RECORDING SECRETARY

PLEASE NOTE: Any request for court review of this decision must be filed within 90 days of the date this decision was final (See Code of Civil Procedure Section 1094.6).

A decision becomes final if it is not time ly appealed to the City Council. Appeal deadline is November 9, 2023.

Page 351 of 434 ends

Planning Commission -1- October 19, 2023

GARDEN GROVE PLANNING COMMISSION
Community Meeting Center
11300 Stanford Avenue, Garden Grove, CA 92840

Draft Meeting Minutes
Thursday, October 19, 2023

CALL TO ORDER: 7:01 p.m.

ROLL CALL:

Commissioner Arbgast
Commissioner Cueva
Commissioner Cunningham
Commissioner Laricchia
Commissioner Lindsay
Commissioner Paredes
Commissioner Ramirez

Absent: Paredes

Commissioner Paredes joined the meeting at 7:02 p.m.

PLEDGE OF ALLEGIANCE: Led by Commissioner Cueva

ORAL COMMUNICATIONS – PUBLIC – None.

October 5, 2023 MINUTES:

Action: Received and filed.

Motion: Arbgast Second: Laricchia

Ayes: (7) Arbgast, Cueva, Cunningham, Laricchia, Lindsay, Paredes, Ramirez
Noes: (0) None

Absent: (0) None

PUBLIC HEARING – AMENDMENT NO. A-0 38-2023, CITY OF GARDEN GROVE,

CITYWIDE

Applicant: CITY OF GARDEN GROVE
Date: October 19, 2023

Request: A City-initiated zoning text amendment to Title 9 (Land Use) of the Garden Grove Municipal Code pertaining to retail sale by delivery of medicinal cannabis and developm ent standards fo r mechanical equipment, maximum hardscape covera ge within front yard setbacks,

Page 352 of 434 ends

Planning Commission -2- October 19, 2023
and substitute landscaping. The proposed code amendment would update portions of Chapters 9.08, 9.12, 9.16, and 9.18 (Single-Family Residential Development Standards, Multifamily Residential Development Standards, Commercial, Office Professional, Industrial, and Open Space Development Standards, and Mixed Use Regulations and Development Standards, respectively) of Title 9 of the City of Garden Grove Municipal Code to specify standards for the screening of mechanical equipment within an exterior equipment enclosure in residential zones; to clarify how the maximum permitted hardscape coverage in the front yard setback in residential, commercial, industrial, and open space zones is calculated; and to update the standards for artificial turf in all zones. In addition, the proposed code amendment would amend existing provisions of Chapter

9.52 (Cannabis Activities) of Title 9 of the Garden Grove Municipal Code in a manner consistent with the re cently enacted Medicinal Cannabis Patients’ Right of Access Act to permit the retail sale by delivery of medicinal cannabis in the City from licensed facilities located outside of the City, subject to specified regulations. The proposed code amendment is exempt from the provisions of the California Environmental Quality Act.

Action: Resolution Nos. 6071-23 (Cannabis) and 6072-23
(Landscape) were approved.

Motion: Arbgast Second: Ramirez

Ayes: (7) Arbgast, Cueva, C unningham, Laricchia Lindsay, Paredes, Ramirez
Noes: (0) None

Absent: (0) None

PRESENTATION - CIVIC CENTER REVITALI ZATION PROJECT UPDATE: Staff gave a brief presentation on the completed tasks, the current status, and the next steps for the Civic Center Revitalization Project.

MATTERS FROM COMMISSIONERS: None.

MATTERS FROM STAFF: Staff mentioned the November 2
nd meeting would be
cancelled, then gave a brief description of the agenda items for the November 16 th, December 7th, and December 21st Planning Commission meetings.

ADJOURNMENT: At 8:02 p.m.

______________________________
Judith Moore
Recording Secretary

Page 353 of 434 ends

Exhibit “A“

ORDINANCE NO. __

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE APPROVING A ZONING TEXT AMENDMENT TO CHAPTER 9.52 OF TITLE 9 OF THE GARDEN GROVE

MUNICIPAL CODE PERTAINING TO RETAIL SALE BY DELIVERY OF MEDICINAL CANNABIS.

City Attorney Summary

This Ordinance amends Chapter 9.52 (Cannabis Activities) of Title 9 (Land Use) of the Garden Grove Municipal Code to permit the retail sale by delivery of medicinal cannabis in the City subject to specified regulations in compliance with State law.

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

WHEREAS, the City of Garden Grove currently prohibits the delivery of medicinal cannabis within the City limits; and
WHEREAS, SB 1186 (Chapter 395, Statutes of 2022), known as the Medicinal Cannabis Patients’ Right of Access Act (“Act”), prohibits local jurisdictions, beginning January 1, 2024, from adopting or enforcing any regulation that prohibits, or has the effect of prohibiting, the retail sale by de livery within the jurisdiction of medicinal cannabis to medicinal cannabi s patients or their primary caregivers by licensed medicinal cannabis businesses in a timely and readily accessible manner, and in types and quantities that are sufficient to me et demand from medicinal cannabis patients within the local jurisdiction ; and
WHEREAS, the Act permits local jurisdictions to adopt and enforce reasonable regulations on retail sale by delivery of medicinal cannabis; and WHEREAS, the Act does not limit or otherwise affect the ability of a local jurisdiction to adopt and enforce any regulations on commercial cannabis operations other than retail sale by delivery of medicinal cannabis in the local jurisdiction; and WHEREAS, Amendment No. A-038-2023(A) was initiated by the City of Garden Grove and includes a zoning text amendment to Chapter 9.52 of the Garden Grove Municipal Code to establish an exception in accordance with the Act to permit and regulate the retail sale by delivery of medicinal cannabis within the City; and WHEREAS, the City Council finds that there are presently more than thirty (30) licensed medicinal cannabis retailers located within a 15 mile radius of the City of Garden Grove from which retail sale by deliv ery of medicinal cannabis in the City is or may be available; therefore, prohibitin g the establishment of physical premises within the City from which retail sale by delivery of medicinal cannabis is conducted will not have the effect of prohibiting the retail sale by delivery of medicinal cannabis to medicinal cannabis patients or their primary caregivers in a timely and readily accessible manner in types and quantities that are sufficient to meet demand from medicinal cannabis patients who reside in the City; and

Page 354 of 434 ends

Ordinance No. _____ Page 2
WHEREAS, the City Council finds that the proposed Ordinance is exempt from the California Environmental Quality Act (“CEQA”), Cal. Pub. Resources Code Section 21000 et seq. pursuant to Section 15061(b )(3) of the State CEQA Guidelines (Cal.

Code of Regs., Title 14, Section 15064(b)(3)) because it can be seen with certainty that there is no possibility that the proposed Ordinance may have a significant effect on the environment.

WHEREAS, following a public hearing held on October 19, 2023, the Garden Grove Planning Commission adopted Resolution No. 6071-23 recommending that the City Council approve Zoning Text Amen dment No. A-038-2023(A) and adopt the proposed Ordinance; and
WHEREAS, a duly noticed public hearing regarding Amendment No. A-038-2023(A) was held by the City Council on ________, 2023 and all interested persons were given an opportunity to be heard; and

WHEREAS, the City Council of the City of Garden Grove gave due and careful consideration to the matter during it s meeting of ___________, 2023, and considered all oral and written testimony presented; and

WHEREAS, the City Council hereby ma kes the following findings regarding Zoning Text Amendment No. A-038-2023(A):

A. Amendment No. A-038-2023(A) is internally consistent with the goals, objectives and elements of the City ’s General Plan as described in the Findings and Reasons of Planning Commission Resolution No. 6071-23.

B. Amendment No. A-038-2023(A) will promote the public interest, health, safety, and welfare as described in th e Findings and Reasons of Planning Commission Resolution No. 6071-23.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GARDEN GROVE DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1: The City Council finds that the above recitals are true and correct.

SECTION 2: Amendment No. A-038-2023(A) is hereby approved pursuant to the findings set forth herein and the facts an d reasons stated in Planning Commission Resolution No. 6071-23 a copy of which is on file in the Office of the City Clerk, and which is incorporated herein by reference with the same force and effect as if set forth in full.

SECTION 3: Subsection (C) of Section 9.52.020 (Cannabis Dispensaries and Delivery Prohibited) of Chapter 9.52 (Cannabis Activities) of Title 9 (Land Use) of the Garden Grove Municipal Code is hereby am ended to read as follows (additions in bold/underline text):

Page 355 of 434 ends

Ordinance No. _____ Page 3
C. Exemptions.

(1) Pursuant and subject to Proposition 64 adopted by the State voters in November 2016, this section shall not prohibit: (1) the possession, planting, cultivation, harvesting, dr ying, or processing of up to six marijuana plants by persons 21 years of age or older inside a private residence, or inside an accessory structure to a private residence located upon the grounds of a private residence that is fully enclosed and secure; or (2) the possession of, or giving away of, the marijuana produced by such plants to persons 21 years of age or older.

(2) (a) Pursuant and subject to SB 1186 (Chapter 395, Statutes of 2022), known as the Medicinal Cannabis Patients’ Right of Access Act, subject to the provisions of this subsection C(2), this section shall not prohibit the retail sale by delivery within the City of medicinal cannabis to medici nal cannabis patients or their primary caregivers by a medicinal cannabis business from a fixed location outside of the City. For purposes of this subsection (C)(2), the terms “medicinal cannabis,” “medicinal cannabis business,” and ”medicinal cannabis patient” shall have the same meaning as defined in Section 26321 of the California Business and Professions Code.

(b) Medicinal cannabis businesses engaging in the retail sale by delivery of medicinal cannabis within the City shall be subject to the following requirements:

(i) Each medicinal cannabis busi ness engaging in the retail sale by delivery of medicinal cannabis in the City shall obtain and maintain a City of Garden Grove business tax certificate pursuant to Title 5 (Business Operation Taxes, Permits and Regulations) of the Garden Grove Municipal Code.

(ii) Each medicinal cannabi s business shall maintain an active M-license issued by th e State of Calif ornia and all applicable permits and/or lic enses required by the local jurisdiction in which the business is located. The business shall submit a copy of any and all of its State and local licenses and permits required for its operation to the City’s Tax Administrator prior to issuance or renewal of a business tax certificate. The business shall notify the City’s Tax Administrator if any applicable State or local license or permit required for its operation expires or is denied, suspended, modified, revoked.

(iii) Each medicinal cannabis business and employee of a medicinal cannabis business engaged in the retail sale by delivery of medicinal cannabis in the City shall at all times comply with all applicable regulations promulgated by the California Department of Cannabis Control, including, but not limited to, the regulations

Page 356 of 434 ends

Ordinance No. _____ Page 4
pertaining to the delivery of canna bis set forth in Cal. Code of Regs., tit. 4, sections 15415 through 15421.

(iv) In accordance with Subsection A above, the retail sale by delivery of adult-use cannabis is prohibited throughout the City.

Only the retail sale by delivery of medicinal cannabis or medicinal cannabis products in the City as required by State law is permitted. A medicinal cannabis business or employee of a medicinal cannabis business shall not sell or offer for sale any cannabis accessories or branded merchandise of any kind concurrently or in conjunction wi th the retail sale of medicinal cannabis or medicinal cannabis products in the City.

(v) All deliveries of medicinal cannabis shall be performed by a delivery employee who is directly employed by the medicinal cannabis business. Each medi cinal cannabis business shall maintain an accurate list of its delivery employees and shall provide the list to the City upon request. Each delivery employee engaging in the retail sale by delivery of medicinal cannabis in the City shall carry during deliveries and immediately provide upon request by the City or any law enforcement officer the following:
a copy of the current business tax certificate issued to the medicinal cannabis business; a copy of the current license or licenses issued to the medical cannabis business by the State Department of Cannabis Control which authorize it to engage in the retail sale of medicinal ca nnabis; a copy of the QR Code certificate issued by the State Department of Cannabis Control; the employee’s government-issued identification; an
identification badge provided by the employer; delivery inventory ledgers from the time the employee left the employer’s premises; all delivery receipts for cannabis goods carried by the delivery employee, in the delivery vehicle, or any deliveries that have already been made to customers; and a log of all stops from the time the employee left the employer’s premises. A delivery employee shall not carry cannabis goods valued in excess of five thousand dollars ($5,000) at any time while engaged in the retail sale by delivery of medicinal cannabis in the City.

(vi) All deliveries of medicina l cannabis must be made to a physical address that is not loca ted on publicly owned land, on land or in a building leased by a public agency, a school providing instruction in kindergarten or any grades one through twelve, a day care center, or a youth center. A licensed retailer shall only sell medicinal cannabis goods to individuals who are at least 18 years of age and possesses a valid physician's recommendation after confirming the customer's age, identity, and physician's recommendation.

Page 357 of 434 ends

Ordinance No. _____ Page 5
(vii) Each medicinal cannabis business shall maintain an accurate list of all vehicles used by its employees to deliver medicinal cannabis in the City, including each vehicles’ make, model, year, color, license plate number, vehicle identification number (VIN), and Department of Motor Vehicles registration information, along with proof of current automobile liability insurance for each such vehicle as required by State law, and shall provide such list and proof of automobile insurance to the City upon request, in the event of any changes, and prior to issuance or renewal of a business tax certificate. Retail sale by delivery of medicinal cannabis in the City may only be conducted using a properly insured vehicle that is identified on the most current list provided to the City and that is outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of the delivery vehicle and recording a history of all locations traveled to by the delivery employee while engaged in delivery, as provided by State law. In accordance with State law, a delivery vehicle shall not have any marking or other indications on the exterior of the vehicle that may indicate that the delivery employee is carrying cannabis goods for delivery.

(c) This Subsection C(2) only authorizes the retail sale by delivery of medicinal cannabis by a lice nsed medical cannabis business from a fixed premises located outside of the City. Nothing in this section shall be construed to permit the establishment of a cannabis dispensary or other physical premises from which retail sale by delivery of medicinal cannabis within the City is conducted.

(d) Nothing in this subsection C(2) is intended to or shall be interpreted to prohibit medicinal cannabis patients or their caregivers from purchasing by delivery sufficient medicinal cannabis to meet their demands in a timely and readily accessible manner.

SECTION 4: If any section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Ordinance is, for any re ason, 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 5: 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 thirty (30) days after adoption or on January 1, 2024, whichever is later.

Page 358 of 434 ends

Exhibit “A“
ORDINANCE NO. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE APPROVING AMENDMENT NO. A-038-2023(B), A ZONING TEXT AMENDMENT TO PORTIONS OF CHAPTERS 9.08, 9.12, 9.16, AND 9.18 OF TITLE 9 OF THE CITY OF GARDEN GROVE

MUNICIPAL CODE ESTABLISHING ENHANCED STANDARDS FOR THE SCREENING OF

MECHANICAL EQUIPMENT WITHIN AN EXTERIOR EQUIPMENT ENCLOSURE IN RESIDENTIAL ZONES; CLARIFYING HOW THE MAXIMUM PERMITTED HARDSCAPE

COVERAGE IN THE FRONT YARD SETBACK IN RESIDENTIAL, COMMERCIAL, INDUSTRIAL, AND OPEN SPACE ZONES IS CALCULATED; AND UPDATING THE STANDARDS FOR ARTIFICIAL TURF IN ALL ZONES.

City Attorney Summary

This Ordinance approves zoning te xt amendments to portions of Chapters

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

WHEREAS, Amendment No. A-038-2023(B) wa s initiated by the City of Garden Grove and is a zoning text amendment to portions of Chapters 9.08, 9.12, 9.16, and

9.18 (Single-Family Residential Develo pment Standards, Multifamily Residential Development Standards, Commercial, Office Professional, Industrial, and Open Space Development Standards, and Mixed Use Regulations and Development Standards, respectively) of Title 9 of the City of Garden Grove Municipal Code establishing enhanced general development standards within residential zones and modified landscaping requirements within all zones;

WHEREAS, following a Pub lic Hearing held on October 19, 2023, the Planning Commission adopted Resolution No. 6072-23 recommending approval of Amendment No. A-038-2023(B);

WHEREAS, pursuant to a legal notice, a Public Hearing regarding the proposed adoption of this Ordinance was held by the City Council on _____________, 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

Page 359 of 434 ends

Garden Grove City Council
Ordinance No.

Page 2 ends

WHEREAS, the City Council hereby incorporates by reference the findings and reasons set forth in Planning Commission Resolution No. 6072-23, and makes the following findings regarding Amendment No. A-038-2023(B):

A. The Amendment is internally consis tent with the goals, objectives and elements of the City’s General Plan.

B. The Amendment will promote the pu blic interest, health, safety and welfare.

WHEREAS, the City Council finds that the proposed Ordinance is exempt from the California Environmental Quality Act (“CEQA”), Cal. Pub. Resources Code Section 21000 et seq. pursuant to Sections 15301, Existing Facilities, and 15601(b)(3), Common Sense, of the State CEQA Guidelines (Cal. Code of Regs., Title 14, Sections 15301 and 15601(b)(3)).

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

SECTION 1: The above recitals are true and correct.

SECTION 2: The facts an d reasons stated in Planning Commission Resolution No. 6072-23 recommending approval of Amendment No. A-038-2023(B), 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.

SECTION 3: Subdivision G of Sectio n 9.08.040.010 (Single-Family Residential – General Requirements) of Chapter 9.08 (Single-Family Residential Development Standards) of Title 9 of the Garden Grove Municipal Code is hereby amended as follows to specify standards for exterior equipment enclosures (deletions shown in strikethrough, additions shown in bold-italics):

G. Mechanical Equipment, Metering Devices. All roof and ground mounted mechanical equipment and metering devices shall be screened from view from either on or off the property.

Ground-mounted mechanical equipment, including, but not limited to, water heaters, heating, cooling or ventilating equipment, swimming pool or spa heaters, pumps or filters, may be permitted to be located in a side yard setback on any property improved with a single-family residence, provided that the equipment is screened from view from all public rights-of-way. If required by manufacturer’s specifications, equipment may be installed within exterior equipment
enclosures. All equipment enclosures, including any flues, accessories, or other appurtenance s, shall be painted to match the main house. If the equipment is to be located between a structure and the property line, an unobstructed path at least three feet wide shall be provided between the equipment and the property line.

Page 360 of 434 ends

Garden Grove City Council
Ordinance No.

Page 3 ends

SECTION 4: Subdivision G of Section 9.12.040.010 (Multifamily Residential – General Requirements) of Chapter 9.12 (Multifamily Residential Development Standards) of Title 9 of the Garden Grove Municipal Code is hereby amended as follows to specify standards for exterior equipment enclosures (deletions shown in strikethrough, additions shown in bold-italics):

G. Mechanical Equipment, Metering Devices—Screening and Location.

1. Except as otherwise required by state law, all roof-mounted and ground-mounted mechanical equipment and metering devices shall be screened from view from the adjacent public rights-of-way, adjacent properties, and on-site uses using one of the following methods for the specific equipment referenced. Exceptions to this screening requirement shall be fire-fighting equipment required by the Fire Department.

a. Roof-mounted: Shall be screened by parapet walls, rooftop architectural features such as a tower equal to the height of the equipment, or low walls surrounding the equipment and shall be painted to match the color of the building materials.

b. Ground-mounted: Shall be screened by densely planted and maintained landscaped hedges or a fence or wall. Ground-mounted equipment shall not exceed the maximum allowable height for a wall, fence, or hedge.

2. Ground-mounted mechanical equipment including, but not limited to, water heaters, heating, coo ling or ventilating equipment, swimming pool or spa heaters, pumps or filters shall not be located within a front yard setback but may be permitted to be located in a rear or side yard setback, provided that the equipment is screened from view from all abutting public rights-of-way and is shielded to achieve the requirements of Garden Grove Municipal Code Chapter

8.47 (Noise Control). If required by manufacturer’s
specifications, equipment may be installed within exterior equipment enclosures. All equipment enclosures, including any flues, accessories, or other appurtenances, shall be painted to match the main house. If the equipment is to be located between a structure and the property line, an unobstructed path at least three feet wide shall be provided between the equipment and the property line.

SECTION 5: Footnote 4 to the R-1 Development Standards Table in Subdivision A of Section 9.08.040.020 (Residential – General Development Standards) of Chapter

9.08 (Single-Family Development Standards) of Title 9 of the Garden Grove Municipal Code is hereby amended as follows to clarify how the maximum permitted hardscape coverage in the front yard setback is calculated (deletions shown in strikethrough, additions shown in bold-italics):

Page 361 of 434 ends

Garden Grove City Council
Ordinance No.

Page 4 ends

R-1 DEVELOPMENT STANDARDS TABLE

Placement R-1
. . . . . .

Maximum front setback coverage (4) 50%
. . . . . .

. . .

4. Hardscape counted toward maximum coverage percentage includes driveways and pedestrian walkways, excepting portions of driveways that directly lead to a private garage, or legally converted garage, in the following amounts: 200 square feet for a one-car garage, 400 square feet for a two-car garage, 600 square feet for a three-car garage, and 800 square feet for a four-car garage (except allowed standard driveway in the front yard).

SECTION 6: Subdivision D of Section 9.08.040.050 (Landscaping – General Provisions) of Chapter 9.08 (Single-Family Residential Developme nt Standards) of Title 9 of the Garden Grove Municipal Code is hereby amended as follows to clarify how the maximum permitted hardscape coverage in the front yard setback is calculated (deletions shown in strikethrough, additions shown in bold-italics):

D. The following regulations are for maximum coverage of hardscape.

1. The maximum permitted hardscape coverage in the front yard setback shall be 50% , inclusive of pedestrian walkways and portions of driveways not excepted pursuant to Section

9.08.040.020. Private sidewalks and walkways are excluded from this 50% so long as they do not exceed a width of five feet.

2. The measurement of the front yard setback shall be from the back of sidewalk or street dedication line. The public parkway area between the curb and sidewalk must be fully landscaped.

SECTION 7: Footnote 3 of Subdivision A of Section 9.12.040.020 (Residential – General Development Standards) of Chapter 9.12 (Multifamily Development Standards) of Title 9 of the Garden Grove Municipal Code is hereby amended as follows to clarify how the maximum permitted hardscape coverage in the front yard setback is calculated (deletions shown in strikethrough, additions shown in bold-italics):

Page 362 of 434 ends

Garden Grove City Council
Ordinance No.

Page 5 ends

R-2 and R-3 Development Standards Table

Placement R-2 (5) R-3 (5)
. . . . . . . . .

Front setback coverage – Maximum (3) 50% 50%
. . . . . . . . .

. . .

3. Hardscape counted towards maximum coverage percentage includes driveways and pedestrian walkways (except allowed standard driveway in the front yard).

SECTION 8: Subdivision D of Section 9.12.040.080 (Landscaping – General Provisions) of Chapter 9.12 (Multifamily Residential Development Standards) of Title 9 of the Garden Grove Municipal Code is hereby amended as follows to clarify how the maximum permitted hardscape coverage in the front yard setback is calculated (deletions shown in strikethrough, additions shown in bold-italics):

D. The following regulations are for maximum coverage of hardscape.

1. The maximum permitted hardscape coverage in the front yard setback shall be 50% , inclusive of driveways and pedestrian walkways. Private sidewalks and walkways are excluded from this 50% so long as they do not exceed a width of five feet.

2. The measurement of the front yard setback shall be from the back of sidewalk or street dedication line. The public parkway area between the curb and sidewalk must be fully landscaped.

SECTION 9: Subdivision D of Section 9.16.040.060 (Landscaping – General Provisions) of Chapter 9.16 (Commercial, Office Professional, Industrial, and Open Space Development Standards) of Title 9 of the Garden Grove Municipal Code is hereby amended as follows to establish stan dards for installation of artificial turf (deletions shown in strikethrough, additions shown in bold-italics):

D. The following regulations are for maximum coverage of hardscape.

1. The maximum permitted hardscape coverage in the front yard setback shall be 50%. Private sidewalks and walkways are excluded from this 50% so long as they do not exceed a width of five feet.

2. The measurement of the front yard setback shall be from the back of sidewalk or street dedication line. The public parkway area between the curb and sidewalk All portions of the front ya rd setback, not covered with approved driveways and walkways, must be fully landscaped, including, but not limited to, the public parkway area between the curb and sidewalk.

Page 363 of 434 ends

Garden Grove City Council
Ordinance No.

Page 6 ends

SECTION 10: Subdivision N of Section 9.08.040.060 (Landscaping Requirements) of Chapter 9.08 (Single-Family Residential Development Standards) of Title 9 of the Garden Grove Municipal Code is hereby amended as follows to establish standards for installation of artificial turf (deletions shown in strikethrough, additions shown in bold-italics):

N. Substitute Landscaping

1. Materials such as crushed ro ck, decomposed granite, redwood chips, pebbles and stone may be used in lieu of live plant materials for up to 30% of the required landscape coverage area. Artificial plants and synthetic groundcovers are prohibited, except where allowed within the R-1 (Single-Family Residential) zone, subject to the following standards:

a. Artificial turf is permitt ed, provided it complies with the following:

i. Artificial turf shall have a minimum eight-year “No Fade” warranty.

ii. Artificial turf shall be installed by a licensed professional and shall be installed pursuant to manufacturer’s requirements, except if the artificial turf is installed by the homeowner. The homeowner shall be required to follow the manufacturer’s specifications for installation.

iii. Artificial turf shall be of a type known as cut pile infill, and shall be installed over a compacted and
porous road base material, and shall be anchored at all edges and seams. Artificial turf may not be layered over concrete or other nonporous surfaces, according to the
manufacturer’s specifications for installation. A proper drainage system shall be installed underneath the turf
to prevent excessive run-off or pooling.

iv. iii. Artificial turf shall be installed and maintained to effectively simulate the appearance of a well-maintained lawn.

The turf shall be maintained in a green fadeless condition and shall be maintained free of weeds, debris, tears, holes, and impressions. An infill medium consisting of clean washed sand or other approved mixture shall be brushed into
the fibers to ensure that the fibers remain in an upright position, and to provide ballast that will help hold the turf in place and provide a cushioning effect.

Page 364 of 434 ends

Garden Grove City Council
Ordinance No.

Page 7 ends

v. iv. The use of indoor or outdoor plastic or nylon carpeting as a replacement of artificial turf or natural turf shall be prohibited. No rubber infill is permitted.

vi. v. Artificial shrubs, flowers, trees, and vines in lieu of living plant material shall be prohibited.

vii. vi. Areas of living plant materi al (i.e., flower beds, tree wells, etc.) shall be included in the overall landscape design when installing artificial turf. Living plant material shall include shrubs, vines, trees, and flowering groundcovers and shall constitute a minimum of 25% of the landscape area.

viii. vii. Artificial turf shall be separated from flower beds by a concrete mow strip, bender board, or other barriers acceptable to the City to prevent intrusion of living plant material into the artificial turf.

ix. viii. Artificial turf in front yards shall be limited to 75% of required landscape area.

SECTION 11: Subdivision N of Section 9.12.040.090 (Landscaping Requirements) of Chapter 9.12 (Multifamily Residential Development Standards) of Title 9 of the Garden Grove Municipal Code is hereby amended as follows to establish standards for installation of artificial turf (deletions shown in strikethrough, additions shown in bold-italics):

N. Substitute Landscaping

Artificial turf is permitted, provided it complies with the following criteria:

a. Artificial turf shall have a minimum eight-year “No Fade” warranty.

b. Artificial turf shall be installed by a licensed professional and shall be installed pursuant to manufacturer’s requirements, except if the artificial turf is installed by the homeowner. The homeowner shall be required to follow the manufacturer’s specifications for installation.

c. Artificial turf shall be of a type known as cut pile infill, and shall be installed over a compacted and porous road

Page 365 of 434 ends

Garden Grove City Council
Ordinance No.

Page 8 ends

base material, and shall be anchored at all edges and
seams. Artificial turf may not be layered over concrete or other nonporous surfaces, according to the
manufacturer’s specifications for installation. A proper drainage system shall be installed underneath the turf
to prevent excessive run-off or pooling.

d.c. Artificial turf shall be installed and maintained to effectively simulate the appearance of a well-maintained lawn. The turf shall be maintained in a green fadeless condition and shall be maintained free of weeds, debris, tears, holes, and
impressions. An infill medium consisting of clean washed sand or other approved mixture shall be brushed into
the fibers to ensure that the fibers remain in an upright position, and to provide ballast that will help hold the turf in place and provide a cushioning effect.

e.d. The use of indoor or outdoor plastic or nylon carpeting as a replacement of artificial turf or natural turf shall be prohibited.

No rubber infill is permitted.

f.e. Artificial shrubs, flowers, trees, and vines in lieu of living plant material shall be prohibited.

g.f. Areas of living plant material (i.e., flower beds, tree wells, etc.) shall be included in the overall landscape design when installing artificial turf. Living plant ma terial shall include shrubs, vines, trees, and flowering groundcovers and shall constitute a minimum of 25% of the landscape area.

h.g. Artificial turf shall be separated from flower beds by a concrete mow strip, bender board, or other barriers acceptable to the City to prevent intrusion of living plant material into the artificial turf.

i.h. Artificial turf in front yards shall be limited to 75% of required landscape area.

SECTION 12: Subdivision N of Section 9.16.040.070 (Landscaping Requirements) of Chapter 9.16 (Commercial, Office Professional, Industrial, and Open Space Development Standards) of Title 9 of the Garden Grove Municipal Code is hereby amended as follows to establish st andards for installation of artificial turf (deletions shown in strikethrough, additions shown in bold-italics):

N. Substitute Landscaping

1. Materials such as crushed ro ck, decomposed granite, redwood chips, pebbles and stone may be used in lieu of live plant materials

Page 366 of 434 ends

Garden Grove City Council
Ordinance No.

Page 9 ends

for up to 30% of the required landscape coverage area. Artificial plants, with the exceptio n of artificial turf, ar e prohibited. Artificial turf shall be allowed within the O-P (Office Professional), C-1 (Neighborhood Commercial), C-2 (Community Commercial), C-3 (Heavy Commercial), M-1 (Limited Industrial), M-P (Industrial Park), and O-S (Open Space) zones, subject to the following standards:

a. Artificial turf is permitt ed, provided it complies with the following:

i. Artificial turf shall have a minimum eight-year “No Fade” warranty.

ii. Artificial turf shall be installed by a licensed professional and shall be installed pursuant to manufacturer’s
requirements, except if the artificial turf is installed by the homeowner. The homeowner shall be required to follow the manufacturer’s specifications for installation.

iv.iii. Artificial turf shall be installed and maintained to effectively simulate the appearance of a well-maintained lawn.

v.iv. The use of indoor or outdoor plastic or nylon carpeting as a replacement of artificial turf or natural turf shall be prohibited. No rubber infill is permitted.

vi.v. Artificial shrubs, flowers, trees, and vines in lieu of living plant material shall be prohibited.

vii.vi. Areas of living plant materi al (i.e., flower beds, tree wells, etc.) shall be included in the overall landscape design when installing artificial turf. Living plant material shall include

Page 367 of 434 ends

Garden Grove City Council
Ordinance No.

Page 10 ends

shrubs, vines, trees, and flowering groundcovers and shall constitute a minimum of 25% of the landscape area.

viii.vii. Artificial turf shall be separated from flower beds by a concrete mow strip, bender board, or other barriers acceptable to the City to prevent intrusion of living plant material into the artificial turf.

ix.viii. Artificial turf in front yards shall be limited to 75% of required landscape area.

SECTION 13: Subdivision E of Section 9.18.120.030 (Landscaping Requirements) of Chapter 9.18 (Mixed Use Regulations and Development Standards) of Title 9 of the Garden Grove Municipal Code is hereby amended as follows to establish standards for installation of artificial turf (deletions shown in strikethrough, additions shown in bold-italics):

E. Artificial Turf. Artificial turf shall be permitted within the front and rear yards and shall comply with the following criteria:

1. Artificial turf shall have a minimum eight-year “No Fade” warranty.

2. Artificial turf shall be installed by a licensed professional and shall be installed pursuant to manufacturer’s requirements.

3. Artificial turf shall be of a type known as cut pile infill, and shall be installed over a compacted and porous road base material, and shall be anchored at all edges and seams.

Artificial turf may not be laye red over concrete or other nonporous surfaces, according to the manufacturer’s
specifications for installation. A proper drainage system shall be installed underneath the turf to prevent excessive run-off or pooling.

4.3. Artificial turf shall be installed and maintained to effectively simulate the appearance of a well- maintained lawn. The turf shall be maintained in a green fadeless condition and shall be maintained free of weeds, debris, tears, holes, and impressions. An infill medium consisting of clean washed sand or other approved mixture shall be brushed into the fibers to ensure that the fibers remain in an upright po sition, and to provide ballast that will help hold the turf in place and provide a cushioning effect.

5.4. The use of indoor or outdoor plastic or nylon carpeting as a replacement of artifici al turf or natural turf shall be prohibited.

Page 368 of 434 ends

Garden Grove City Council
Ordinance No.

Page 11 ends

Artificial shrubs, flowers, trees, and vines in lieu of living plant material shall be prohibited.

6.5. Areas of living plant material (i.e., flower beds, tree wells, etc.) within the front yard, side, rear, and common areas shall be included within the overall landscape design when installing artificial turf. Living plant material shall include shrubs, vines, trees, and flowering groundcovers.

7.6. Artificial turf shall be separated from flowerbeds by a concrete mow strip, bender board, or other barrier acceptable to the City in order to prevent intrusion of living plant material into the artificial turf.

8.7. Three sets of detailed landsca pe and irrigation plans shall be submitted to the planning division for review and approval prior to installation of the artificial turf in order to confirm compliance with the City Code and any valid land use entitlement for the property.

SECTION 14: 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 remainin g 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 15: The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance an d 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 thirty (30) days after adoption.

Page 369 of 434 ends

Agenda Item - 6.a.

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM
To: Lisa L. Kim From: Patricia Song
Dept.: City Manager Dept.: Finance
Subject: Receive and file the Measure
O Citizen's Oversight
Committee Annual Report for
Fiscal Year 2022-23. ( Action
Item)
Date: 11/14/2023

OBJECTIVE
For the City Council to receive and file the Measure O Citizen’s Oversight Committee annual report for Fiscal Year 2022-23 per Resolution No. 9540-19.

BACKGROUND
Resolution No. 9540-19, titled “A Resolution Defining the Composition of the Measure O – Citizens’ Oversight Committee, Purpose, Terms of Office for Committee Members, the Scope of the Committee’s Responsibilities and Other Related Matters” requires a report be presented by the Committee to the City Council annually. This annual report is to summarize the Committee’s activities during the year, and communicate the Committee’s findings in regards to the City’s audited financial information and General Fund budget/CIP plan in regards to the Measure O revenue received and corresponding appropriation within the reporting period.

DISCUSSION
The attached Measure O Citizen’s Oversight Committee Annual Report discussed the following items:

The Committee’s proceedings and activities during Fiscal Year 2022-23 with focuses on:
o Audited Fiscal Year 2021-22 annual financial information; o Amended General Fund’s budget for Fiscal Year 2022-23; and o Mid-year General Fund financial performance for Fiscal Year 2022-23.

The Committee’s findings and recommendations.

The Committee concluded that the audited FY2021-22 financial information reflected the appropriate collection and use of the Measure O – Public Safety and Vital City

Page 370 of 434 ends

•
•
Services tax during the year, and the City’s FY2022-23 General Fund budget protected and maintained the City’s core services.

FINANCIAL IMPACT
There is no fiscal impact to receive and file the Measure O Citizen’s Oversight Committee annual report.

RECOMMENDATION
It is recommended that the City Council:

Receive and file the Measure O Citizen’s Oversight Committee Annual Report for Fiscal Year 2022-23.

ATTACHMENTS:

Description Upload Date Type File Name
Attachment 1 - Measure
O Committee Annual
Report
10/31/2023 Exhibit MeasureO_CommitteeAnnualReport-
2023.pdf

Page 371 of 434 ends

•

Page 1 of 6 ends

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

City Council From: Measure O – Citizen’s
Oversight Committee

Subject: MEASURE O COMMITTEE ANNUAL
REPORT FOR FISCAL YEAR 2022-23
Date:

October 23, 2023

OBJECTIVE

To present to City Council the Measure O Citizen’s Oversight Committee annual report for Fiscal Year 2022-23 per Resolution No. 9540-19.

BACKGROUND

On November 6, 2018, Garden Grove voters passed Ordinance No. 2897, also known as Measure O, imposing a one-cent (1%) transactions and use (sales) tax. The Measure O – Citizen’s Oversight Committee was established on February 26, 2019, to review the City’s annual budget, mid-year budget, and year-end audited financial information in regards to the receipt and use of Measure O funds. Resolution No. 9540-19 requires that an annual report be presented to the City Council communicating the Committee’s activities and to provide a response to the following questions:

 Does the current audited financial information reflect that the Measure O – Public Safety and Vital City Services tax was collected and appropriately spent?

 Does the City’s proposed General Fund annual budget and CIP plan protect and maintain the City’s core services including public safety?

DISCUSSION

Summary of Committee’s Proceedings and Activities for FY 2022-23

 Two Committee meetings were held during FY 2022-23:

October 19, 2022 Meeting

o Reviewed the draft Measure O annual report to City Council for Fiscal Year (FY) 2021-22;
o Reviewed FY 2021-22 unaudited General Fund financial data;

Page 372 of 434 ends

Page 2 of 6 ends

o Reviewed the amended FY2022-23 biennial budget for the General Fund; and
o Discussed other matters including impact of federal interest rate hike to the City, the operating cost and funding source of the Navigation Center, and the public safety spending in relation to the overall General Fund operating budget.

March 6, 2023 Meeting

o Reviewed Chapter 2.02 of the Garden Grove Municipal Code on Code of Ethics for Public Officers and Employees;
o Reviewed FY 2021-22 audited General Fund financial information; o Reviewed FY 2022-23 mid-year General Fund financial performance ; and
o Discussed other matters including the progress of the Central Cities Navigation Center, the development of major hotel projects, and the potential environmental impact of the construction of the public safety facility.

Audited Financial Information for Fiscal Year 2021-22

Staff presented to the Committee FY 2021-22 audited revenue and expenditure of the City’s General Fund. The General Fund as presented in the City’s Annual Comprehensive Financial Report (Financial Report) includes the City’s main operating fund (the General Fund), Economic Development Fund, Tourism Improvement District Funds, Land Sale Proceeds Fund, and Deposits Fund.

Table 1 below summarizes the City’s overall General Fund revenues. In FY2021-22, the City received approximately $28.9 million from the one-cent sales tax from Measure O, which was an increase of $5.6 million from the prior fiscal year.

Table 1 – General Fund Revenues - Audited

Revenue Description
FY 2021-22
($000)
Sales Tax – Bradley-Burns $ 29,860
Measure O 28,910
Property Tax 59,773
Hotel Tax (TOT) 23,421
Other Taxes 5,391
Licenses & Permits 2,705
Fines, Forfeits & Penalties 1,859
Charges for Current Services 7,671
Other 23,804
Total General Fund $ 183,394

Page 373 of 434 ends

Page 3 of 6 ends

Graph 1 – General Fund Revenue by Category

Total General Fund expenditures for the same fiscal year was $134.2 million, of which

70.9% was for public safety. Comparing to the previous fiscal year, expenditure on police safety increased by 2.4 million. Table 2 below summarizes the City’s General Fund audited expenditures for FY 2021-22.

Table 2 – General Fund Expenditures - Audited

Expenditure Category
FY 2021-22
($000) % of Total
Public Safety - Fire $ 26,975 20.1%
Public Safety - Police 68,181 50.8%
Traffic Safety 2,709 2.0%
Public Right of Way 6,781 5.1%
Community Buildings 3,713 2.8%
Parks & Community Services 6,407 4.8%
Community & Economic Dev. 8,916 6.6%
Municipal Support 8,856 6.6%
Debt Service 1,634 1.2%
Total Expenditure $ 134,172 100.0%

Page 374 of 434 ends

Charges for
services

4.2%
Fines, penalties &
forfeitures

1.0%
Licenses & permits

1.5%
General Fund Revenues
Year Ended June 30, 2022
Other

13.0%
Other taxes

2.9% Transient
occupanytaxes

12.8%
Property taxes

32.6%
Sales and use taxes

32.0%

Page 4 of 6 ends

Graph 2 – General Fund Expenditure by Type

Amended General Fund Budget FY 2022-23

The Committee reviewed the City’s amended FY 2022-23 General Fund Budget.

Amended revenue showed a total increase of $11.4 million from the adopted budget.

Sales tax has been realizing growth exceeding the pre-pandemic levels. While high inflation is causing the economy to show signs of slowing down, it does provide for additional tax collection related to higher prices. The City’s revenue consultant increased their previous estimate by 17.2% for FY2022-23. Measure O was expected to bring in $27.1 million to the City for the year.

Property tax also had an upward adjustment of $2.7 million, largely due to the trend of higher prices and more active real estate market in the City.

Transient Occupancy Tax, or hotel tax, was amended to be at 85% level of the City’s pre-pandemic peak based on strong performances during the last quarter of the previous fiscal year.

Other General Fund revenues were maintained at the same level with the adopted amounts.

Page 375 of 434 ends

General Fund Expenditures
YearEndedJune30,2022
Community & economic
development
Municipal support

6.6%

6.6%
Parks & communit
services

4.8%
Community buildings

2.8%
Public right of way

5.1% Traffic safety

2.0%
Debt service

1.2%
Public safety - Fire

20.1%
Public safety - Police

50.8%

Page 5 of 6 ends

Table 3 below is a summary of adopted and amended General Fund revenues for FY2022-23.

Table 3 – Fiscal Year 2022-23 General Fund Budget - Revenue

Revenue Description
Adopted
($000)
Amended
($000)
Sales Tax – Bradley-Burns $ 25,393 $ 29,237 Measure O 22,694 27,133
Property Tax 55,631 58,362
Hotel Tax (TOT) 21,300 22,342
Other Taxes 5,100 5,100
Licenses & Permits 3,000 3,000 Fines, Forfeits & Penalties 2,300 1,800 Charges for Current Services 6,288 5,657 Investment Earnings 570 1,000 Other 3,000 3,012
Total General Fund $ 145,276 $ 156,643

Table 4 below shows adopted and amended expenditure budget by category for FY2022-23.

Table 4 – Fiscal Year 2022-23 General Fund Budget – Operating Expenditure

Expenditures Category
Adopted
($000)
Amended
($000)
Fire $ 31,737 $ 30,917
Police 72,301 76,136
City Manager 3,228 3,501
City Attorney 908 971
Community & Economic Dev. 7,942 9,570 Community Services 4,661 4,944 Finance 3,347 3,570
Human Resources 1,619 1,715
Information Technology 948 999 Public Works 17,359 17,946
Debt Service 1,510 1,510
Total General Fund $ 145,560 $ 151,779

Operating budget for the General Fund increased by $6.2 million in the amended budget to cover a 7 .0% inflation adjustment as well as some mandated costs.

Appropriations for public safety occupied 70.8% of total amended General Fund’s operating budget.

Page 376 of 434 ends

Page 6 of 6 ends

For capital outlays, appropriations increased by $17.4 million, among which $7.0 million were designated for the acquisition of a navigation center, and $8.3 million for the public facilities project, specifically Police Headquarters/Civic Center. The increase in appropriations were necessary to carry out City Council priorities, and was enabled by higher revenues and the one-time pandemic relief funds.

Committee Findings and Recommendations

The Measure O – Citizen’s Oversight Committee has reviewed the audited financial data for FY 2021-22, and budget information for Fiscal Year 2022-23. The Committee concludes the following:

 The audited financial information presented for FY 2021-22 properly reflects the Measure O – Public Safety and Vital City Services tax was collected and appropriately spent.

The City’s amended General Fund FY 2022- 23 budget and five-year Capital Improvement Pl an protect and maintain the City’s core services including public safety.

The Committee recommends staff to continue:

 Review Fiscal Year 2022-23 audited annual financial information and report on Measure O tax revenue collected and expenditures for public safety and other vital services;
 Review General Fund operating budget allocations; and  Update the Committee as needed on Fiscal Year 2023- 24 General Fund revenue and expenditures to ensure an appropriate and transparent financial system is in place to account for the funds generated by the Measure O tax.

Page 377 of 434 ends

Agenda Item - 7.a.

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM
To: Lisa L. Kim From: William E. Murray
Dept.: City Manager Dept.: Public Works
Subject: Authorization of the issuance
of a purchase order to PB
Loader for one (1) new
Police Department Command
Post. (Cost: $1,199,660.40)
(Continued Action Item from
October 24, 2023.)
Date: 11/14/2023

OBJECTIVE
To secure City Council authorization to purchase one (1) new Police Department command post from PB Loader through the Sourcewell competitive bid program, Contract #080521-PBL.

BACKGROUND
The Public Works Department has one (1) Police Department command post that currently meets the City’s guidelines for replacement. Funding for the replacement was approved in the FY 2023-24 Fleet Management Fund's budget. The vehicle being replaced is a 2007 Freightliner LDV command post with 6,100 miles VIN# 4UZAASBV17CX75529. The current command post was acquired through a Urban Area Security Initiative (UASI) grant program.

DISCUSSION
Experience has shown that the City’s buying power is enhanced through joining with other public agencies to purchase fleet vehicles and equipment. Sourcewell nationally solicits, evaluates, and awards contracts through a competitive bid process. As a member of Sourcewell, the City is able to utilize bid awards for equipment purchases. Staff recommends piggybacking on the results of a recent Sourcewell competitive bid program, Contract #080521-PBL. The results deemed PB Loader as the lowest responsive bid.

PB Loader $1,199,660.40*

* This price includes all applicable tax and destination charges.

FINANCIAL IMPACT

Page 378 of 434 ends

The cost of replacing the vehicle is $1,199,660.40 and is included in the the Fleet Management Fund's Fiscal Year 2023-24 budget. There is no impact to the General Fund. The disposition of the surplus equipment will be facilitated by the Police Department through the UASI grant program, requiring the return of the used equipment under code 2 CFR part 200.313.

RECOMMENDATION
It is recommended that the City Council:

Authorize the Finance Director to issue a purchase order in the amount of $1,199,660.40 to PB Loader for the purchase of one (1) new Police Department Command Post.

By: Steve Sudduth, Equipment Maintenance Supervisor ATTACHMENTS:

Description Upload Date Type File Name
PB Loader quote 10/11/2023 Backup Material PB_Loader_command_post_quote.pdf Command post specs 10/11/2023 Backup Material Command_Post_specs.pdf Command post backup
material 10/26/2023 Backup Material Command_post_backup_material.pdf

Page 379 of 434 ends

•

PB Loader Corporation
5778 W. Barstow • Fresno, California 93722-5024 • Telephone (559) 277-7370 • Fax (559) 277-7375 Toll free 800-350-8521 • Web www.pbloader.com

QUOTATION

CITY OF GARDEN GROVE - POLICE DEPARTMENT
GARDEN GROVE, CA DATE: 10/5/2023
SOURCEWELL MEMBER ID # 32278 TERMS: NET 30
PROJECT: 26FT MOBILE COMMAND CENTER
QTY PART NO. DESCRIPTION PRICE EXTENSION

PB LOADER CONTRACT NO. 080521-PBL

SOURCEWELL CONTRACT - LISTED PRICES
26FT MOBILE COMMAND CENTER
1 26FT_MCC $1,225,707.00
10% SOURCEWELL DISOUNT: ($122,571.00)
SUB-TOTAL: $1,103,136.00
SALES TAX (8.75%): $96,524.40
TIRE FEE: $10.50
TOTAL PRICE PER UNIT: $1,199,660.40
NOTES:

NO. 11958R
LDV MOBILE COMMAND CENTER 26’ WALK-IN VAN BODY BUILT ON A FREIGHTLINER MT55 FRONT ENGINE WALK-IN VAN CHASSIS WITH:
• 250" WHEELBASE • 431” OVERALL LENGTH OF APPARATUS • 99” OVERALL APPARATUS WIDTH, RUB RAIL TO RUB RAIL • 142” OVERALL HEIGHT OF APPARATUS (LOADED) • 83” RAW INTERIOR WALKWAY HEIGHT • 81.5’ FINISHED INTERIOR WALKWAY HEIGHT • 312” INTERIOR WALKWAY LENGTH • 96” RAW INTERIOR WIDTH • 87” INTERIOR FINISHED WIDTH • CUMMINS B6.7 260HP @ 2400 RPM DIESEL ENGINE • ALLISON 2200 EVS AUTOMATIC TRANSMISSION WITH PARK PAWL WITH PTO PROVISION • DA-RS-17.5-2 17,500# L-SERIES SINGLE REAR AXLE • 18,000# AIRLINER REAR SUSPENSION • DA-F-10.0-3 10,000# FF1 69.0 KPI/3.50DROP SINGLE FRONT AXLE • 10,000# TAPERLEAF FRONT SUSPENSION • 60 GALLON RECTANGULAR STEEL FUEL TANK - BETWEEN RAILS • MICHELIN 255/70R22.5 16 PLY RADIAL TIRES • MAXION STEEL DISC WHEELS • FEDERAL SIGNAL BACK-UP ALARM MODEL 210331 • US DOT TRIANGLE REFLECTOR KIT WITH THREE (3) TRIANGLES • CLASS III RECEIVER HITCH (BALL MOUNT AND BALL NOT INCLUDED) • REESE BRAKEMAN® IV DIGITAL ELECTRONIC TRAILER BRAKE CONTROL • 7 POLE BLADE STYLE TRAILER CONNECTOR • FRONT FRP BULKHEAD WALL BEHIND FRONT DRIVER AND PASSENGER SEATS. • SAMSUNG FLIP 2 WM65R 65 INCH DIGITAL WHITEBOARD • IRIDIUM 9575 EXTREME DOCKING STATION • RJ-45 CAT6 COMPUTER NETWORK FOR THREE (3) WORKSTATIONS, ONE (1) PRINTER, TWO (2) PASSENGER SEAT AREA, TWO (2) EXTERIOR TO TV COMPARTMENT, TWO (2) IN EXTERIOR INPUT BOX.

1. SEE FULL SPECIFICATOINS FOR FULL DESCRIPTION OF COMMAND CENTER.

2. PAYMENT TERMS ARE 50% DOWN PAYMENT, 50% NET 30.

3. QUOTE IS FIRM FOR 30 DAYS FROM DATE ABOVE.

4. THE QUOTED PRICE DOES NOT INCLUDE ANY APPLICABLE FET.

5. TRAILER HITCH IS RATED FOR 5,000 LBS; HOWEVER, TOWING CAPACITY IS LIMITED TO MAXIMUM VEHICLE GROSS COMBINED WEIGHT RATING (GCWR).

6. FINAL MEASUREMENTS ARE DEPENDENT ON BODY BUILDER, CHASSIS COMPONENTS, AXLES, TIRES, FRAME, SUSPENSION, AND ROOF-MOUNTED EQUIPMENT.

Page 380 of 434 ends

\
\

180 Industrial Drive
Burlington, WI 53105 USA
Phone: 800-558-5986
Fax: (262) 767-2529
Direct: +1 (262) 763-0147
www.ldvusa.com

PRELIMINARY
SPECIFICATIONS FOR:

GARDEN GROVE PD (CA)
(VELOCITY TRUCK CENTER)

MOBILE COMMAND CENTER

LDV PROPOSAL # S36MCC-35686-23

August 21, 2023
SEPTEMBER 15, 2023 REV 1

Page 381 of 434 ends

LDVJ)

CUSTOM SPECIALTY VEHICLES

Page 2 of 25 ends

Garden Grove PD (CA) S36MCC-35686-23 CC REV 1
180 Industrial Drive
Burlington, WI 53105 USA
Phone: 800-558-5986
Fax: (262) 767-2529
Direct: +1 (262) 763-0147
www.ldvusa.com

TABLE OF CONTENTS

PRICING PAGE: .........................................................................................................................................................3 CHASSIS: ...................................................................................................................................................................4 BODY: .........................................................................................................................................................................4 PAINT / GRAPHICS: ..................................................................................................................................................7 DRIVER / PASSENGER CAB AREA: ........................................................................................................................8 WALLS, CEILING AND FLOOR: ................................................................................................................................8 GALLEY: .....................................................................................................................................................................9 SEATING: ...................................................................................................................................................................9 CABINETS: .............................................................................................................................................................. 10 HVAC SYSTEM: ...................................................................................................................................................... 11 AC ELECTRICAL SYSTEM: .................................................................................................................................... 11 DC ELECTRICAL SYSTEM: ................................................................................................................................... 15 EMERGENCY LIGHTING / SIRENS: ...................................................................................................................... 17 AUDIO / VIDEO: ...................................................................................................................................................... 18 MAST AND MAST MOUNTED EQUIPMENT: ........................................................................................................ 20 RADIOS: .................................................................................................................................................................. 21 COMPUTER NETWORK AND EQUIPMENT: ........................................................................................................ 22 MISCELLANEOUS ELECTRONICS: ...................................................................................................................... 23 EXTERIOR STORAGE COMPARTMENTS: ........................................................................................................... 23 MISCELLANEOUS OTHER: ................................................................................................................................... 24

Page 382 of 434 ends

LDVJ)

CUSTOM SPECIALTY VEHICLES

Page 3 of 25 ends

Garden Grove PD (CA) S36MCC-35686-23 CC REV 1
180 Industrial Drive
Burlington, WI 53105 USA
Phone: 800-558-5986
Fax: (262) 767-2529
Direct: +1 (262) 763-0147
www.ldvusa.com

Delivery terms: Ask your Sales Representative.

Payment Terms: 50% down payment, 50% net 30.

Quote is firm for 30 days from specification date.

Quoted price does not include any applicable FET, federal, state or local tax unless specified.

Page 383 of 434 ends

LDVJ)

CUSTOM SPECIALTY VEHICLES
180 Industrial Drive
Burlington, WI 53105 USA
Phone: 800-558-5986
Fax: (262) 763-0156
Direct: +1 (262) 763-0147
www.ldvusa.com

Item Qty

Page 4 of 25 ends

Garden Grove PD (CA) S36MCC-35686-23 CC REV 1

1.00 CHASSIS/BODY DIMENSIONS:
26’ walk-in van
• Wheelbase of chassis: 250"
• Overall length of apparatus: 431"
• Overall apparatus width, rub rail to rub rail: 99"
• Overall height of apparatus (loaded): 142"
• Interior walkway height raw body: 83"
• Interior walkway height finished: 81.5"
• Interior walkway length: 312"
• Interior raw body width: 96"
• Interior finished body width: 87"
Final measurements are dependent on body builder, chassis components, axles, tires, frame, suspension, and roof-mounted equipment.

2.00 CHASSIS:

2.01 1 Customer supplied chassis check in.

Test all chassis equipment before any upgrades are done. - Interior and exterior, structure, locks, lights, electronics, batteries, as applicable. - Chassis fluid levels, batteries

2.02 1 Federal Signal Back-up alarm model 210331.

2.03 1 US DOT triangle reflector kit with three (3) triangles, for compliance with FMCSA regulations.

Includes plastic storage case. Kit will be shipped loose in the vehicle.

2.04 1 Custom fabricated Class III receiver hitch (ball mount and ball not included). Includes:
• Reese Brakeman® IV digital electronic trailer brake control • 7 pole blade style trailer connector.

Note: Trailer hitch is rated for 5,000 lbs; however, towing capacity is limited to maximum vehicle Gross Combined Weight Rating (GCWR).

2.05 1 Stainless steel wheel liners with braided stainless steel valve stem extenders.

2.06 1 Route horizontal exhaust to streetside.

3.00 BODY:

3.01 1 • Load space area shall be 83" high x 96" wide x 26' long all aluminum step van body. • Driver sedan door with slider window, door skin shall be chemically bonded to door frame structure reducing the amount of rivets required. Door shall have continuous stainless steel piano hinge and two (2) nylon straps.
• Passenger sedan door with slider window, door skin shall be chemically bonded to door frame structure reducing the amount of rivets required. Door shall have continuous stainless steel piano hinge and two (2) nylon straps.
• Sedan doors shall have a 0.125" aluminum tread plate step well for 18" skirt depth. • Sedan doors shall have black non-skid tape on all door entry sills. • Sedan doors shall have polished aluminum TriMark flush mounted locking hardware with self - aligning rotary latch and matching key locks. Outside door handles not to exceed 50" from ground.

Page 384 of 434 ends

LDV@

CUSTOM SPECIALTY VEHICLES
180 Industrial Drive
Burlington, WI 53105 USA
Phone: 800-558-5986
Fax: (262) 763-0156
Direct: +1 (262) 763-0147
www.ldvusa.com

Item Qty

Page 5 of 25 ends

Garden Grove PD (CA) S36MCC-35686-23 CC REV 1
• Aluminum alloy double H wall beam, 6005-T5 alloy, 3" x 3" wide at the base, 1.5" wide at the top, 0.125 wall thickness. Studs feature machined wire pass-throughs, and raised adhesive control features on base.
• I-beams shall be chemically bonded to sidewalls eliminating the need for additional rivets.

Buck-rivets will be used to fasten the top, bottom and rub rail. Use of two-sided tape is not acceptable.
• Body shall have 0.125" strain-hardened aluminum alloy 5052-H36 side panels. The upper panels shall be free of rivets allowing for smooth graphics application. • Skirt supports,1.5 x 1.5 x 0.125 angle to reinforce skirt edge and hold bottom edge in a straight line. 0.188 x 1.00" flat braces placed at 4' intervals and riveted to lower wall angle and floor to maintain sidewall skirt rigidity.
• NFPA 1901 embossed 0.125" aluminum tread plate roof attached to 3" x 1 1/2" x 0.125" extruded aluminum roof bows on 16" centers. Bows are 2” skip welded every 12”. Tread plate seams shall be continuous welded. Perimeter of roof shall be chemically sealed . • Lift-up molded fiberglass hood with chrome grill insert. Hood shall have integrated headlamps and turn signal indicators and dual assist gas charged lift shocks. The use of mechanical assist springs is not acceptable.
• Extruded aluminum floor with interlocking planks, 1.88" high x various widths, 0.125" top surface. 6005-T5 alloy and temper. Heavy-duty thick-wall extruded planks fore and aft of all floor cutouts and every 5th plank in all other areas. Planks made of 6005-t5 alloy and temper,

0.250" thick top surface.
• Bright polished front bumper.
• Tinted safety plate glass windshield with driver and passenger sun visors. • Full width 12" deep heavy-duty aluminum rear bumper with center step, painted to match the body.
• Integral cab air conditioning and heating system with dash controls. • Velvac heated remote control rear view mirrors with dash controls. Upper mirror has 62 -sq.in. of flat surface and lower mirror has 30-sq.in. of convex surface. Mirror has a fold-away arm. • Driver seat shall be Seats Inc. Magnum 200 mechanical suspension seat on fixed pedestal.

Seat shall be covered in black cloth and have arm rests, lumbar support, tilt back and 3 -point seat belt.
• Passenger seat shall be black jump seat with 2-point seat belt. • Intermittent windshield wiper/washer with single heavy-duty windshield wiper motor. • Custom front wheel cutouts for tires.
• Aluminum engine box cover with acoustical and thermal insulation. • Acoustical and thermal insulation with heat shield on exterior fire-wall. • Full length skirting. Skirt shall extend 18” down from the bottom of floor extrusions. • All clearance and side marker lights to be LED.
• Standard structural warranty of 5 years or 50,000 miles and standard component warranty of 12 months or 12,000 miles.
• The vehicle shall be fully sanded on all exterior surfaces with no more than 150 grit to assure removal of imperfections in metal surface. All aluminum shall be chemically etched and primed prior to painting. Base body color shall be oven baked and painted to commercial truck standards.

Page 385 of 434 ends

LDV@

CUSTOM SPECIALTY VEHICLES
180 Industrial Drive
Burlington, WI 53105 USA
Phone: 800-558-5986
Fax: (262) 763-0156
Direct: +1 (262) 763-0147
www.ldvusa.com

Item Qty

Page 6 of 25 ends

Garden Grove PD (CA) S36MCC-35686-23 CC REV 1

Note: Specifications are from body manufacturer and are subject to change without notice.

3.02 1 32" wide x 82" high 0.125" aluminum sedan door with 21.5" wide x 25.5" high fixed window.

Door shall have continuous stainless steel piano hinge, two (2) nylon door st raps and an aluminum drip rail.

NOTE:

Interior window covering will be a mini blind.

3.03 3 Exterior heavy-duty knurled aluminum grab handle with chrome plated stanchions, installed at entry door.

3.04 1 Interior heavy-duty knurled aluminum grab handle with chrome plated stanchions, installed at entry door.

3.05 3 Automatic LED courtesy light at entry door.

3.06 1 Courtesy light defeat in Intel-I-Touch™ multiplex control screen. Each entry door courtesy light will be automatically deactivated where the corresponding room has the overhead lighting set to night mode.

3.07 1 Lippert Treadlite 24" wide - single - automatic electric steel entry step mounted under entry door. Product features:
• Automatic LED ground light
• Hold/Cycle switch that allows step to remain extended unless ignition is turned on.

NOTE:

Step light will be tied into courtesy light defeat.

3.08 1 Lippert Treadlite 30" wide - single - automatic electric steel entry step mounted under entry door. Product features:
• Automatic LED ground light
• Hold/Cycle switch that allows step to remain extended unless ignition is turned on.

NOTE:

Step light will be tied into courtesy light defeat.

3.09 1 Whelen Stop/Turn/Tail/Backup light set. Includes two of each of the following:
• Whelen M6FCV4 polished chrome vertical housings for four M6 series lightheads. The fourth light head will be an emergency flasher as specified in the DC Emergency Lighting section. • Whelen M6 series LED arrow shaped amber turn signal, model number M62T. • Whelen M6 series LED brake/tail light heads, model number M62BTT. • Whelen M6 series LED back-up light heads, model number M62BU.

3.10 1 Cast Products LP0004-1-B aluminum license plate mounting frame with LED light.

3.11 1 Entire underside shall be undercoated. Includes floor extrusions, step wells and aluminum compartments.

3.12 1 LDV rear mud flaps. Includes anti-sail brackets when required.

3.13 2 Flat floor slide-out room extension fabricated with a structurally rigid welded aluminum tube design with a fully bonded aluminum shell. During deployment an electronic control system automatically expands the room extension and lowers the floor to flush position.

Features:
• Electric over hydraulic control system programmed to lower the slide out to floor height after full extension.

Page 386 of 434 ends

LDV@

CUSTOM SPECIALTY VEHICLES
180 Industrial Drive
Burlington, WI 53105 USA
Phone: 800-558-5986
Fax: (262) 763-0156
Direct: +1 (262) 763-0147
www.ldvusa.com

Item Qty

Page 7 of 25 ends

Garden Grove PD (CA) S36MCC-35686-23 CC REV 1
• Awning that automatically extends and retracts over the top of the room to protect from weather and debris.
• Full perimeter double rubber bulb seal with an additional seal in the fully extended and fully retracted positions.
• No track or hardware shall be attached to the ceiling of the body.

NOTE:

Slide out up to 96" length x 30" deep (full extension of 26").

3.14 Ignition Interlock to prevent vehicle from starting when any of the external extension devices are deployed.

3.15 4 Flashing warning light for slide out.

NOTE:

Amber LED color.

4.00 PAINT / GRAPHICS:

4.01 Body base color shall be white.

4.02 Body base paint shall be a commercial single stage white color.

4.03 1 4-inch wide reflective stripe on the exterior back and sides of the vehicle.

4.04 1 Custom computer-generated non-reflective vinyl graphics per customer specifications.

Includes up to seventy 8"-10" letters and up to forty-five 3"-6" letters. All lettering can be shaded or outlined.

4.05 5 Custom computer-generated non-reflective vinyl shield. Customer shall supply true vector artwork required to produce shield.

NOTE:

Customer is to supply vector file format artwork (ai, .eps True Vector File) to LDV to produce graphics. LDV will provide printing, material and install of graphics.

5.00 INTERIOR:
• Wall Covering Front/Rear rooms: Chrome carpet
• Wall Covering Middle room: Wilsonart laminate Satin Stainless 483 • Bulkheads - Wilsonart laminate Satin Stainless 483
• Control console cabinet – Black laminate
• Ceiling:
o Center (ductwork) #HAT2-C0111 Charcoal Gray Texture Powder Coated o Outside Silver Mist carpet
• Trim: #HAT2-C0111 Charcoal Gray Texture Powder Coated • Floor Covering: #150 Onyx PVC Flooring
• Office Chairs: Black
• Cabinets: #HAT2-C0111 Charcoal Gray Texture Powder Coated Aluminum • Powdercoat color for slideout valance and interior door panel o #HAT2-C0111 Charcoal Gray Texture Powder Coated
• Vinyl/fabric coverings:
o Seat bottom to be stock Black Vinyl.
o Seat back to be Ultraleather Dwell 570-5635 Basalt back • Counters and Tables: #4879-38 Steel Mesh Laminate with GRAY T-molding Note: Manufacturer reserves the right to substitute equivalent materials.

Page 387 of 434 ends

Garden Grove City CouncilNovember 14, 2023

Garden Grove City Council
November 14, 2023