Agenda packet, first session — Garden Grove City Council, March 10, 2026 (part 2 of 2)

Promote development of ADUs by
providing written information at the City’s
planning counter and on the City’s website,
including development of an information
packet to market ADU construction.

Monitor ADU permit applications and
approvals (including the affordability of
constructed ADUs) through the Housing
Element Annual Progress Report process;
if, at the midpoint of the planning period,
targets identified in the Housing Element
are not met, identify and implement
additional incentives or other strategies, as
appropriate, to ensure adequate sites
during the planning period.

Prepare ADU design
templates, promotion
materials, and information
packet within one year of
Housing Element adoption;
annually monitor ADU
construction and
affordability; in 2025,
evaluate progress compared
to projections. If targets are
not being achieved,
implement new strategies in
a timely manner (i.e., within
approximately six months)
to encourage ADU
development.
6th Cycle Completed
Efforts to prepare updated
APRs to include correct
number of ADUs is ongoing.

The City has continued to
implement its pre-approved
ADU program, ADU Go!.

These are pre-reviewed, pre-
approved, code-compliant
ADU construction plans that
can be obtained online for
free. The ADU Go Program
helps the City meet strategic
housing plan goals to create
diverse housing options
throughout the City by
encouraging the
construction of ADUs. The
ADU Go Program aims to
significantly reduce pre-
construction costs for
property owners looking to
build an ADU. A process is
in place to allow customers
to submit new ADU
applications that utilize a pre-
approved ADU plan, and for
customers to submit their
own plans to become pre-
approved.

To promote the
development of ADUs,
Other https://ggcity.org/planning/adu-go
129
Program 10: Density Bonus
Review the existing density bonus
ordinance that establishes procedures to
ensure compliance and consistency with
Government Code §65400 and §65915,
including revisions of density bonus
provisions for units that are for lower-
income households, very low-income
households, persons and families of
moderate income, and senior housing.

Evaluate the density bonus procedural
requirements to ensure financial feasibility
to facilitate affordable housing
development and provide flexibility.

Promote the use of density bonus
incentives and provide technical
assistance to developers in utilizing density
bonus for maximize feasibility and meet
local housing needs.

Evaluate the current Density
Bonus ordinance within one
year of Housing Element
adoption; adopt a new
Density Bonus Ordinance by
the end of 2022; and
provide ongoing promotion
of the density bonus
incentives and ongoing
technical assistance.
6th Cycle Continuous
Focused zoning
amendments adopted in
2022, in part, established
updated review and
approval procedures for
Density Bonus Housing
Applications ensuring
compliance and consistency
with State Density Bonus
Law. Additionally, the City
has retained a consultant to
update the Density Bonus
Application and other
associated documents. The
Consultant will also manage
and monitor existing and
new Density Bonus projects
and agreements. Planning
Services Division and
Neighborhood Improvement
Division staff provide
technical assistance to
developers. City staff is
currently in the process of
further updating its
municipal code regulations
and applications to ensure
consistency and compliance
with recent State laws.

The City regularly interfaces
with housing developers
and informs them of
Other 1 https://ecode360.com/42535161#42535203
Program 11: Inclusionary
Housing Ordinance
Evaluate and consider adopting an
inclusionary housing ordinance requiring
residential rental housing developments to
include a specified percentage of
affordable units as a condition of
development.

Conduct an economic feasibility study to
determine: 1) what percentage of units are
required to be affordable, 2) whether the
inclusionary housing ordinance, if enacted,
would unduly constrain or discouraging the
private market development of housing in
the City, and 3) determine if a payment of
an in-lieu fee or provision of affordable
offsite units in another project could be
implemented as an option.

Conduct an economic
feasibility analysis within
four years of Housing
Element adoption; if an
inclusionary housing
ordinance is determined to
be economically feasible for
Garden Grove and will
positively impact production
of affordable housing, adopt
an inclusionary housing
ordinance by 2027.
6th Cycle In Progress
Efforts to evaluate,
consider, and study the
economic feasibility of an
Inclusionary Housing
Ordinance are ongoing.

Other None
130
Program 12: Mixed-Use
Development
Technical Support. Facilitate the
development of residential units in mixed-
use areas by providing technical support to
facilitate lot consolidation, financial
assistance (where feasible), and
streamlined permit processing. The City
will establish specific and objective criteria
for mixed-use site plan reviews and will
target development densities as estimated
in the Housing Element.

Strategic Partnerships. Play a proactive
role in development of mixed-use areas by
pursuing strategic partnerships with
developers, lenders, and property owners
to ensure the development of housing at
appropriate densities and the inclusion of
affordable housing units.

Annually Monitor Development Relating to
the Provision of Housing Affordable to
Lower-Income Households. Establish a
protocol to annually monitor development
interest, inquiries, and progress towards
mixed-use development and affordable
housing creation by specific RHNA income
categories. Periodically re-evaluate
approach and progress. Should monitoring
reveal a shortfall in residential and
affordable residential uses in mixed use
developments, the City will commit to
developing additional actions as
necessary, including, but not limited to
2021-2029 6th Cycle Continuous
In 2022, the City adopted
objective development
standards for residential and
mixed-use developments
(that include at least 2/3
residential). The City is
actively encouraging new
developments in mixed-use
zones. Incentive programs,
including Density Bonuses,
further encourage the
development of affordable
housing as a part of mixed-
use developments. Density
bonus projects, which
typically exceed realistic
capacity densities estimated
in the Housing Element,
have become more
prevalent in mixed-use
zones. City Staff has
established strong
relationships with
developers that specialize in
mixed-use developments
that include affordable
residential units. The
Community Development
Department continues to
educate the public on
various development
processes and procedures
to help facilitate, provide
Other 1 None
Program 13: Special Needs
Housing
Periodically evaluate emergency shelter
development & siting standards based on
existing needs & development interest &
as warranted, re-evaluate & make
appropriate changes to facilitate
development of emergency shelters.

Prioritize projects that include special
needs housing or housing for
extremely/very low-income households in
development application review process.

Refer residents to Regional Center of
Orange County for housing & services
available for persons with developmental
disabilities. Provide information on services
on City’s website. As available, City will
pursue State & federal monies for direct
support of housing construction &
rehabilitation specifically targeted for
housing for persons with disabilities.

Encourage developers to include
Extremely Low Income units with wrap-
around services for homeless. Garden
Grove’s Permanent Supportive Housing
Program is designed to increase &
preserve supply of supportive housing for
extremely low-income. This program
produces affordable housing through
acquisition & rehabilitation of existing units,
as well as construction of new units.

Additionally, City implemented Homeless
Emergency Assistance & Rental Transition
(HEART) Program & Mainstream &
Ongoing; update
Development Code by the
end of 2022
6th Cycle Continuous
The City continues to re-
evaluate and make
appropriate changes to its
development standards, to
facilitate the development of
emergency shelters. In
2022, the City adopted an
ordinance to allow Low-
Barrier Navigation Centers
as a permitted use by right
within the City’s Emergency
Shelter Overlay Zone, to
comply with State housing
law.

The City implemented the
Homeless Emergency
Assistance and Rental
Transition (HEART)
Program, which provides
tenant-based rental
assistance and supportive
services to extremely low-
income individuals who are
homeless or at-risk of
homelessness. In CY 2025,
the City assisted 36
households (85 individuals)
through the HEART
Program .

In partnership with Fountain
Valley, Westminster, and
Other 1 None
131
Program 14: Parking
Standards
Standards Review. Review parking
standards and modify only as needed
within the Municipal Code and the relevant
specific plans. Parking standards should
facilitate and encourage a variety of
housing types, including affordable lower-
income housing, and should not constrain
development.

Reducing Parking. Continue using
available procedures for reducing parking
based on proximity to transit corridors,
mixed-use projects along commercial
corridors, projects near community facilities
(shopping, schools, recreation, etc.),
projects with a variety of unit types, and
projects for seniors, disabled persons, and
other special needs households that
typically have lower parking demands.

Parking Solutions. Identify parking
management strategies and tools to
minimize parking impacts in residential
neighborhoods, including, but not limited to
approaches that increase parking supply,
use existing parking facilities more
efficiently, address variable demand,
reduce parking demand, respond to
spillover impacts, and parking
management and design.

Ongoing; update Municipal
Code standards specific to
parking within four years of
Housing Element adoption
6th Cycle Continuous
Parking reductions, and
parking management policy
discussions are ongoing.

Additionally, the City
implements parking
standards in compliance
with enacted state laws,
including, but not limited to,
AB 2097, AB 1308, and
density bonus law.

Other 1 https://ecode360.com/42528178
Program 15: Water and
Sewer Service Providers
Within 30 days of Housing Element
adoption, deliver the Garden Grove
Housing Element to all providers of sewer
and water service within the City.
30 Days 6th Cycle Completed
Completed. The 2021-2029
Garden Grove Housing
Element was delivered to all
providers of sewer and
water service within the City.

Other 1 https://ggcity.org/sites/default/files/gghe2021 2029.pdf
Program 16: Objective
Design Standards
Adopt objective design and development
standards amending residential
development standards under Title 9 (Land
Use) of the Garden Grove Municipal Code.

By the end of 2022 6th Cycle Completed
Completed. Focused Zoning
Amendments, including
objective development
standards for housing
developments was
approved by City Council in
2022.

Other 1 https://ecode360.com/42528178
132
Program 17: Zoning Code
Update
Modify Single-Family Residential
Development Standards to codify existing
policies for single-family residential
improvements, not expressly written in the
Municipal Code, aimed at addressing
impacts on city infrastructure, and on-site
and on-street parking, to provide clearer
and more objective direction to developers
and property owners, and to conform
zoning regulations regarding transitional
and supportive housing to existing State
law.

Modify Multi-Family Residential
Development Standards to ensure all
development standards in the Municipal
Code that are applicable to multifamily
housing development projects in the R-2
(Limited Multiple Residential) and R-3
(Multiple Family Residential) zones, are
objective and in compliance with State
housing laws.

Modify Mixed Use Regulations and
Development Standards to ensure all
development standards in the Municipal
Code that are applicable to multifamily
housing development projects and certain
new mixed use projects (with at least two
thirds residential) in the mixed use zones,
are objective and in compliance with State
housing law.

By the end of 2022 6th Cycle Completed
Completed. Focused Zoning
Amendments, including
objective development
standards for housing
developments was
approved by City Council in
2022.

Other 1 https://ecode360.com/42528178
Program 18: Affirmatively
Further Fair Housing
Promote AFFH opportunities & housing for
all, including persons protected by Fair
Employment & Housing Act & other
State/federal law.

Promote federal/State/local laws regarding
AFFH. Retain multilingual
resources/information on City website,
social media, newspapers, & physical
locations.

Provide yearly AFFH presentations to City
Council, summarizing AFFH metrics.

Direct homebuyers/owners with real estate
documents containing restrictions based
on race, religion, or other characteristics,
to Clerk-Recorder to remove discriminatory
language.

Target Fair Housing information, services,
& workshops in neighborhoods with
disproportionate housing
needs/displacement risks.

Ensure all applications are
considered/reviewed/approved without
prejudice to proposed residents,
contingent on application’s compliance
with entitlement requirements.

Pursue funding & target neighborhoods of
concentrated poverty for investments
identified in Environmental Justice
Element. Ensure funding reflects needs of
lower-opportunity neighborhoods.

Implement Analysis of Impediments to Fair
Housing Choice & HUD Consolidated Plan.

Annually monitor building/sales activity in
Ongoing; expand access to
multilingual informational
material on fair housing to
be made available at public
counters, libraries, other
community locations, & on
the City’s website within two
years; assess fair housing
issues as part of the
regional Analysis of
Impediments to Fair
Housing Choice; & address
any identified impediments
in Garden Grove within one
year.

ACTION 1: Four times per
year. 2021-2029 Metrics:

Four times per year as part
of fair housing workshops
by the Fair Housing Council
of OC & other housing
related events. Conduct at
least one workshop in both
Spanish & /or Vietnamese &
provide translation services
available at other
workshops.

ACTION 2: 2021-2029.
2021-2029 Metrics: Conduct
presentation once a year.
6th Cycle Continuous
Continues to promote
affirmatively further fair
housing opportunities for all
persons, with a focus on
disseminating fair housing
outreach information &
notices of services to
neighborhoods in DACs &/or
low resource areas.

Resources & information,
included on website, are
provided in multiple
languages. Fair housing
workshops by Fair Housing
Council of OC & by staff are
continuously conducted
each year providing
information regarding, local,
State & Federal housing
laws & programs to public.

Staff regularly provides
presentations & updates to
City Council, & public, on
fair housing, & housing
program & development
metrics.

As requests are received by
property owners to remove
discriminatory language
from property deeds,
covenants, & other real
Other 1 None
133
Program 19: Homeless
Housing Needs
Consistent with the Consolidated Plan,
address the needs of at-risk and homeless
individuals and families through assistance
to non-profits serving the homeless
population.

Provide emergency/transitional housing or
homeless services to 250 extremely low
income or at-risk clients annually (1,750
persons total).

Continue to support local organizations
that provide emergency resources and
provide opportunities for service
expansion.

Continue to participate in regional efforts
to address homelessness, and support
additional bridge housing, access centers,
and other homeless services offered in the
region.

Continue to allow emergency shelters as a
permitted use (by right) in the Emergency
Shelter Housing Overlay Zone within the
Light Industrial (M-1) zone, subject to
those conditions and standards consistent
with State law. As part of the annual
General Plan report, identify any new
shelters that have been constructed in the
City.

Allow Low Barrier Navigation Centers
2021 to 2029, with code
amendments to include low-
barrier navigation centers by
the end of 2022
6th Cycle Continuous
The City of Garden Grove
Consolidated Plan is a
planning document that
identifies and develops a
strategy to address critical
housing and community
development needs that can
be addressed through
federal funding sources,
including Community
Development Block Grant
(CDBG), HOME Investment
Partnerships (HOME), and
Emergency Solutions
Grants (ESG). The
Consolidated Plan identifies
strategies to support local
organizations that provide
emergency resources and
provide opportunities for
service expansion.

In CY 2025, the City re-
implemented the
Emergency Solutions Grant
Program for literally
homeless or at-risk
individuals through our ESG
allocation. During CY 2025,
the program has provided
wrap-around services to
over 180 homeless or at-risk
individuals.

Persons 1 https://ggcity.org/sites/default/files/2020-
2025-con-plan.pdf
Program 20: Healthy and
Sustainable Living
Environments
Continue implementation of environmental
conservation plans and policies that foster
multi-modal transportation systems, reduce
greenhouse gas emissions, implement
Low Impact Development standards,
promote water conservation, and
encourage habitat conservation.

Promote environmentally sustainable
building practices that provide cost savings
to homeowners and developers, including
advertising utility rebate, weatherization,
and energy audit programs through private
utilities and the State.

Provide informational material at the
Planning and Building and Safety
Division’s counter and on the City website
from Southern California Edison and
others that detail energy conservation
measures for new and existing buildings,
the benefits of the Green Building Code,
and resources to assist lower-income
households with energy-related expenses.

Continue to enforce the State energy
standards of the California Green Building
Code.

Target housing units within 1,000 feet of
freeways, railways, major arterials, and
distribution centers, to encourage building
design strategies to limit air pollution,
Ongoing, Update energy
conservation information
within 1 year
6th Cycle Continuous
All new housing
development projects must
comply with all applicable
energy use, and green
building standards of the
latest applicable Building
Codes. Additionally, all new
developments must
incorporate all current and
applicable LID standards,
California Green Building
Code energy standards,
landscape water efficiency
standards, water quality
management plan
requirement for on-site
water treatment, and must
comply with CEQA
requirements. Additionally,
development projects are
evaluated for consistency
with the City’s
Environmental Justice
Element, and where
feasible, implement building
design strategies to limit air
pollution.

Other 1
https://ecode360.com/42536854
https://ggcity.org/sites/default/files/EnvJustic
eElementF.pdf
134
Program 21: Replacement
of Units on Sites
Pursuant to Government Code Section
65583.2(g)(3), require the replacement of
units affordable to the same or lower
income level as a condition of any
development on a nonvacant site identified
in the Housing Element consistent with
those requirements set forth in
Government Code section 65915(c)(3).

Replacement requirements shall be
required for sites identified in the inventory
that currently have residential uses, or
within the past five years have had
residential uses that have been vacated or
demolished, and:

Where subject to a recorded covenant,
ordinance, or law that restricts rents to
levels affordable to persons and families of
low or very low-income; or
Subject to any other form of rent or price
control through a public entity’s valid
exercise of its police power; or
Occupied by low or very low-income
households. For the purpose of this
program “previous five years” is based on
the date the application for development
was submitted.

Ongoing 6th Cycle Completed
Completed. City has
developed "Replacement
Unit Determination"
application, and
implementation procedure in
compliance with
Government Code Section
65583.2(g)(3). As
applicable, the Replacement
Unit procedure requires the
replacement of "protected
units", right of first refusal,
and relocation benefits.

Other 1 https://ggcity.org/sites/default/files/2021-
06/rudform.pdf
Program 22: Affordable
Housing Overlay
Study and, if shown to be appropriate for
Garden Grove, adopt an Affordable
Housing Overlay. Assess any constraints
such an ordinance might have on
residential development in the City and
modify accordingly.

Consult with for-profit and nonprofit
developers to determine an appropriate
mix of incomes that make development
feasible in Garden Grove.

Consider targeting mixed use corridors and
zones with higher residential density
maximums as potential areas for an
Affordable Housing Overlay.

The Overlay regulations should be additive
to any established base zone and also be
complementary with other affordable
housing programs, including the Density
Bonus Ordinance and the Inclusionary
Housing Ordinance.

Within four years of Housing
Element adoption, conduct
an analysis to determine if
an Affordable Housing
Overlay is appropriate for
Garden Grove; if an
Affordable Housing Overlay
has been deemed
appropriate for the City,
adopt an ordinance by
2026.
6th Cycle In Progress
Efforts to evaluate,
consider, and study the
feasibility of an Affordable
Housing Overlay are
ongoing.

Other None
Program 23: Reasonable
Accommodation
Prepare Reasonable Accommodation
application and related promotional
materials advertising the availability of the
process.

Formalize the Reasonable
Accommodation application
and prepare related
materials within one year of
adoption of the Housing
Element. Prepare marketing
materials to promote the
Reasonable
Accommodation process
within one year and after
process is completed.
6th Cycle Completed
Hardship Exemption and
Justification of Partial
Compliance application are
available on City website.

Preparation of the
Reasonable
Accommodation Application
is complete, and posted to
City website. Distribution of
promotional materials is
continuous. Updates to
handouts are prepared on
an as-needed basis.

Other 1
https://ggcity.org/sites/default/files/gg-
reasonable-accommodation-form-template-
form.pdf
Program 24: SB9 Unit
Housing Development
On January 25, 2022, the City adopted an
SB 9 Ordinance establishing regulations
pertaining to two-unit residential
developments and urban lot splits in single-
family residential zones in the City,
pursuant to Senate Bill 9 (SB9)
Ongoing 6th Cycle Continuous
The City has adopted
applications and procedures
to facilitate the development
of SB 9 projects. Updates to
those applications and
procedures are ongoing,
based on changes to SB 9
State law.

Other 1 https://ecode360.com/42535001
135
Program 25: Fair Housing
Services
Continue to comply with all State and
federal fair housing requirements when
implementing housing programs or
delivering housing-related services.

Consistent with the Consolidated Plan,
provide fair housing services to Garden
Grove residents. Serve 1,010 persons
annually with general housing/fair housing
issues (8,080 persons total over eight
years).

Continue to assist households through the
Fair Housing Council of Orange County,
providing fair housing services and
educational programs concerning fair
housing issues. Refer fair housing
complaints to the Fair Housing Council and
continue to provide funding support.

Refer residents involved in housing-related
civil disputes such as landlord/tenant
disputes and housing discrimination
complaints to the California Department of
Fair Employment and Housing and the Fair
Housing Council of Orange County.

Ongoing 6th Cycle Continuous
The City enforces State and
Federal fair housing laws.

To achieve fair housing
goals, Garden Grove is
contracted with a fair
housing service provider to
provide information,
mediation, and referrals to
residents.

Additionally, the City also
collaborates with other
Orange County
municipalities and the
County of Orange to
complete a comprehensive
Regional Assessment of
Fair Housing. Included in
promoting fair housing, the
City will continue to work
toward providing and
maintaining equal housing
opportunities for special
needs residents.

The City annually provides
approximately 2,100
Housing Choice Vouchers to
eligible households.

Persons 2100 None
136
137
138
Jurisdiction Garden Grove ANNUAL ELEMENT PROGRESS REPORT Reporting
Period 2025
(Jan. 1 - Dec.
31) Housing Element Implementation
Period 6th Cycle 10/15/2021 - 10/15/2029
Description of
Commercial
Development Bonus
Commercial Development Bonus
Date Approved
3 4
APN Street AddressProject Name+
Local
Jurisdiction
Tracking ID+
Very Low
Income
Low
Income
Moderate
Income
Above Moderate
Income
Description of
Commercial
Development Bonus
Commercial Development Bonus
Date Approved
Summary Row: Start Data Entry Below
Units Constructed as Part of Agreement
Commercial Development Bonus Approved pursuant to GC Section 65915.7 Table E
Note: "+" indicates an optional field
Project Identifier
1 2
Cells in grey contain auto-calculation
formulas
(CCR Title 25 §6202)
139
140
Jurisdiction Garden Grove ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Period 2025
(Jan. 1 - Dec.
31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning Period 6th Cycle 10/15/2021 - 10/15/2029
The description should adequately document
how each unit complies with subsection (c) of
Government Code Section 65583.1+.

For detailed reporting requirements, see the
chcklist here:

Extremely Low-
Income+
Very Low-
Income+ Low-Income+ TOTAL UNITS+
Extremely Low-
Income+
Very Low-
Income+ Low-Income+
TOTAL
UNITS+
https://www.hcd.ca.gov/community-
development/docs/adequate-sites-checklist.pdf
Rehabilitation Activity
Preservation of Units At-Risk
11 11
Acquisition of Units 8 9 17
Mobilehome Park Preservation
Total Units by Income 8 9 11 28
Table F
Please note this table is optional: The jurisdiction can use this table to report units that have been substantially rehabilitated, converted from non-affordable to affordable by acquisition, and preserved, including mobilehome park preservation, consistent with the standards set forth in Government Code section 65583.1, subdivision (c). Please note, motel, hotel, hostel rooms or other structures that are converted from non-residential to residential units pursuant to Government Code section 65583.1(c)(1)(D) are considered net-new housing units and must be reported in Table A2 and not reported in Table F.

Activity Type
Units that Do Not Count Towards RHNA+
Listed for Informational Purposes Only
Units that Count Towards RHNA +
Note - Because the statutory requirements severely limit what can be counted, please contact HCD at [email protected] and we will unlock the form which enable you to populate these fields.

Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1(c) 141
Jurisdiction Garden Grove ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an
optional field
Reporting
Period 2025 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning
Period 6th Cycle 10/15/2021 - 10/15/2029
Notes
2 3 6
Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID
Unit
Category
(2 to 4,5+)
Tenure
R=Renter
Very Low-
Income Deed
Restricted
Very Low-
Income
Non Deed
Restricted
Low- Income Deed
Restricted
Low- Income
Non Deed
Restricted
Moderate-
Income Deed
Restricted
Moderate-
Income Non
Deed
Restricted
Above
Moderate-
Income
Total Moderate Income
Units Converted from
Above Moderate
Date
Converted Notes
Summary Row: Start Data Entry Below 17 0 0 0 0 0 0 17
231-471-31, 231-471-32, 231-471-33, 231-471-34, 231-471-35, 231-471-36, 231-471-37, 231-471-38, 231-471-39, 231-471-40, 231-471-41, 231-471-42, 231-471-43, 231-471-44, 231-471-4512131, 12132, 12141, 12142, 12161, 12162, 12171, 12172, 12181, 12182, 12201, 12202, 12211, 12212, 12222 Tamerlan DrOrchard Grove Tamerlane Project 5+ R 17 17 12/1/2025 8 of the 17 units converted are for
extremely low income, but there is no
column option for extremely low income
Table F2
Above Moderate Income Units Converted to Moderate Income Pursuant to Government Code section 65400.2 For up to 25 percent of a jurisdiction’s moderate-income regional housing need allocation, the planning agency may include the number of units in an existing multifamily building that were converted to deed-restricted rental housing for moderate-income households by the imposition of affordability covenants and restrictions for the unit. Before adding information to this table, please ensure housing developments meet the requirements described in Government Code 65400.2(b). 5 Project Identifier Unit Types
1 4
Affordability by Household Incomes After Conversion Units credited toward Moderate Income RHNA
142
Jurisdiction Garden Grove
Reporting
Period 2025
(Jan. 1 - Dec.
31)
Period 6th Cycle 10/15/2021 - 10/15/2029ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation
2 3 4
APN Street AddressProject Name+
Local
Jurisdiction
Tracking ID+
Realistic
Capacity
Identified in the
Housing
Element
Entity to whom the site
transferred Intended Use for Site
09017135 11277 Garden
Grove Blvd 100 Leased to Multiple Tenants Professional Office 09909115 13052 Century Blvd 11 Leased to Multiple Tenants Commercial 09015457 11391 Acacia Pkwy 214 Leased to Tenant Senior Care Facility 1 Summary Row: Start Data Entry Below
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Table G
Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of Project Identifier
element sites inventory contains a site which is or was owned by the reporting jurisdiction, and has been sold, leased, or otherwise disposed of during the reporting
year.
143
Jurisdiction Garden Grove Note: "+" indicates an optional field Reporting
Period 2025
(Jan. 1 - Dec.
31)
Cells in grey contain auto-calculation
formulas
Designation Size Notes
1 2 3 4 5 6 7
APN Street Address/Intersection Existing Use Number of
Units
Surplus
Designation
Parcel Size (in
acres) Notes
NOTE: This table must contain an inventory of
ALL surplus/excess lands the reporting
jurisdiction owns
Summary Row: Start Data Entry Below
Parcel Identifier

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Table H
Locally Owned Surplus Sites
144
Jurisdiction Garden Grove ANNUAL ELEMENT PROGRESS REPORT Reporting
Period 2025
(Jan. 1 - Dec.
31) Housing Element Implementation
Planning
Period 6th Cycle 10/15/2021 - 10/15/2029
Project Type Date
Units
(Beds/Student
Capacity) Granted
Notes
2 3 5 6
APN Street AddressProject Name+
Local
Jurisdiction
Tracking ID+
Unit Category
(SH - Student Housing)Date
Very Low-
Income Deed
Restricted
Very Low-
Income Non
Deed
Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
Moderate-
Income Deed
Restricted
Moderate-
Income Non
Deed
Restricted
Above
Moderate-
Income
Total Additional
Beds Created Due
to Density Bonus
Notes
Summary Row: Start Data Entry Below
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Table J
Student housing development for lower income students for which was granted a density bonus pursuant to subparagraph (F) of paragraph (1) of subdivision (b) of Section 65915 Project Identifier Units (Beds/Student Capacity) Approved 1 4
NOTE: STUDENT HOUSING WITH DENSITY BONUS
ONLY. This table only needs to be completed if there
were student housing projects WITH a density bonus
approved pursuant to Government Code65915(b)(1)(F)
145
Jurisdiction Garden Grove ANNUAL ELEMENT PROGRESS REPORT Reporting Period 2025 (Jan. 1 - Dec. 31)
Planning Period 6th Cycle 10/15/2021 - 10/15/2029
NoDoes the Jurisdiction have a local tenant preference policy? If the jurisdiction has a local tenant preference policy, provide a link to the jurisdiction's webpage containing authorizing local ordinance and supporting materials.

Notes
Table K
Tenant Preference Policy
Local governments are required to inform HCD about any local tenant preference ordinance the local government maintains when the jurisdiction submits their annual progress report on housing approvals and production, per Government Code 7061 (SB 649, 2022, Cortese). Effective January 1, 2023, local governments adopting a tenant preference are required to create a webpage on their internet website containing authorizing local ordinance and supporting materials, no more than 90 days after the ordinance becomes operational. 146
Jurisdiction Garden Grove Note: "+" indicates an optional field Reporting
Period 2025
(Jan. 1 - Dec.
31)
Cells in grey contain auto-calculation
formulas
Size Notes
3 4
APN Street Address/Intersection Date of
Designation
Designation
Level
Historic Site
Period
Areas of
Significance
Parcel Size (in
acres) Notes
Summary Row:

Historical Resources
Parcel Identifier
1 Designation
2 NOTE: This table needs to be completed with any sites within your jurisdiction that were newly added to a National, State, or Local register of historic places within the reporting year. If none, leave blank.

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Table L
147
Item 84/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Patricia Song
Dept:

City Manager Dept: Finance
Date: 3/10/2026

Subject: Receive and file warrants. (Action Item)

OBJECTIVE

For the City Council to receive and file the warrants.

BACKGROUND/DISCUSSION

Attached are the warrants recommended to be received and filed.

FINANCIAL IMPACT

Items listed in the warrants are budgeted.

RECOMMENDATION

It is recommended that the City Council:
 Receive and file the warrants.

ATTACHMENT(S)

1. 02132026

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Item 81/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Ursula Luna-Reynosa
Dept:

City Manager Dept: Economic Development and
Housing

Date: 3/10/2026

Subject: Adoption of Resolutions confirming Amendment No. 1 to the Fiscal Year 2025– 26 Advisory Board Report, approving modifications to the activities for Fiscal Year 2025-26, and confirming the Fiscal Year 2026-27 Annual Report, and levying assessments for the Garden Grove Tourism Improvement District. (Action Item)

OBJECTIVE

For the City Council to conduct a public hearing on Amendment No. 1 to the Fiscal Year 2025– 26 Advisory Board Report (“Annual Report”) of the Garden Grove Tourism Improvement District (“GGTID”) Advisory Board , approving modifications to the activities for Fiscal Year 2025-26, and the proposed Fiscal Year 2026 –27 assessments; receive the report from the City Clerk regarding any protests received; adopt a Resolution confirming Amendment No. 1 to the Fiscal Year 2025–26 Annual Report and approving modifications and the activities for Fiscal Year 2025 -26; and adopt a Resolution confirming the Fiscal Year 2026 –27 Annual Report and levying assessments for Fiscal Year 2026–27.

BACKGROUND

The proposed amendment to the Fiscal Year 2025–26 GGTID Advisory Board Annual Report includes the addition of transit services as an eligible activity and clarifies the associated funding source. The amendment supports visitor mobility within the Grove District by improving connectivity between hotels and key destinations, reducing vehicle reliance, and enhancing overall visitor access and satisfaction. These enhancements strengthen hotel competitiveness and support increased tourism spending within the City.

On February 24, 2026, the City Council approved Amendment No. 1 to the Fiscal Year 2025– 26 Annual Report and the Fiscal Year 2026 –27 GGTID Advisory Board Annual Report and Budget and declared its intent to levy assessments for Fiscal Year 2026 –27. This item conducts the duly noticed public hearing and cons iders confirmation of the amendment and levy of assessments for Fiscal Year 2026–27.

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The GGTID was established by the City Council in accordance with the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Section 36500 et seq. (the "Law") through the adoption of Resolution No. 9009 -10 on August 24, 2010, and Ordinance No. 2782 on October 26, 2010. The purpose of the GGTID is to provide revenue to defray the costs of advertising and marketing efforts designed to increase overnight stays in the GGTID, construction and maintenance of improvements in the GGTID, and other services, activities, and programs that promote and encourage tourism within the GGTID, which benefit the operators of hotels paying assessments through the promotion of scenic, recreational, cultural, and other attractions.

The GGTID includes the hotels along Harbor Boulevard from the northern boundary within the City to Garden Grove Boulevard. It is divided into two (2) separate benefit zones:

 Tier I includes the hotels north of Lampson Avenue, which are subject to an assessment of up to 2.5% of gross rent charged per room occupancy per night.

There are currently nine (9) hotels in Tier I.

 Tier II encompasses those hotels south of Lampson Avenue, which are subject to an assessment of up to 0.5% of gross rent charged per room occupancy per night. There is currently one hotel in Tier II, The Great Wolf Lodge Southern California.

Pursuant to the Law and the Ordinance, the City Council is required annually to:

1) Approve the Annual Report (as recommended by the Advisory Board or with modifications);
2) Adopt a resolution of intention to levy the assessment and set a date for the public hearing;
3) Conduct the duly noticed public hearing;
4) Following consideration of any protests, adopt a resolution confirming the Annual Report and levying the assessment.

DISCUSSION

Annual Report Amendment for FY 25-26

In accordance with Ordinance No. 2782, the Board of Directors of the Garden Grove Tourism Promotion Corporation (GGTPC) serves as the Advisory Board. Pursuant to the Ordinance and the Law, the Advisory Board is required to submit an annual report to the City. The annual report is required to include the following:

 Any proposed changes in the boundaries of the GGTID or in any of the benefit zones;

 A description of the improvements and activities to be provided for the upcoming fiscal year;

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 An estimate of the cost of providing the improvements and the activities for that fiscal year;

 The recommended method and bas is of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year;

 The amount of any surplus or deficit revenues to be carried over from a previous fiscal year; and

 The amount of any contributions to be made from sources other than the assessments levied.

The Annual Report serves as the basis for the levying of assessments each year. The Annual Report for Fiscal Year 2025-26 was approved by the City Council on April 22, 2025, with the adoption of Resolution No. 9906 -25, and it was confirmed by the City Council on May 13, 2025, with the adoption of Resolution No. 9920-25. Amendments to the report and activities approved for the District follow the same procedures as the annual approvals.

Amendment No. 1 to the 2025-26 Report adds Transit Services as a new activity. The Garden Grove Hotel Transit Shuttle System is an approved, district -wide program serving approximately 3,600 Grove District hotel rooms. The program is funded primarily through guest-generated assessments, with a portion of the GGTID budget covering the remaining, uncaptured operating costs. The GGTID will administer and manage the transit operator contract. The shuttle will pr ovide direct connectivity between Grove District hotels, the Anaheim Convention Center, and key resort destinations, improving guest mobility and market competitiveness. Expected outcomes include stronger convention room -night capture, improved occupancy, enhanced rate integrity, and measurable revenue performance across participating properties.

Levying of Assessment for Fiscal Year 2026-27

The Advisory Board has approved and recommended the Fiscal Year 2026-27 Annual Report for City Council considerati on, which contains a proposed budget for use of the anticipated assessment revenues for the year. No changes are proposed (i) to the boundaries of the GGTID, (ii) in the GGTID improvements and activities authorized by Resolution No. 9009-10 and Ordinance No. 2782, or (iii) in the amount of the annual assessment or the method and basis for levying the assessment. The Advisory Board is recommending that the annual assessments for Fiscal Year 2026-27 continue to be two and one-half percent (2.5%) of the gross rent charged by the Operator per room occupancy per night for all transient occupancies for each visitor accommodation facility in Tier I, and (ii) one-half percent (0.5%) of the gross rent charged by the Operator per room occupancy per night for all transient occupancies for each visitor accommodation facility in Tier II.

On February 22, 2011, the City Council approved an agreement with the Anaheim/Orange County Visitor & Convention Bureau ("VCB") (currently known as “Visit Anaheim”), pursuant to which, approximately 80% of the GGTID assessment revenue collected is allocated to the VCB to fund collective tourism marketing efforts or retained by the City for future Harbor 173
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Boulevard median improvements and a future transit system. The remaining (approximately 20%) of the GGTID assessment is allocated to fund specific improvements along Harbor Boulevard and other tourism promotion activities in Garden Grove in accordance with the budget included in the Annual Report. These funds are administered by the GGTPC pursuant to an agreement with the GGTPC approved by the City Council on September 27, 2011.

Before the annual assessment can be levied for Fiscal Year 2026 -27, the City Council must conduct a Public Hearing to hear and consider all protests against the proposed assessments and the amended activities provided in the Annual Report. Notice of the Public Hearing in the form of the Resolutions of Intention adopted at the February 24, 2026, City Council meeting was published at least ten days before the hearing and mailed to each visitor accommodation facility subject to the proposed assessment in accordance with the Law.

After the Public Hearing, the City Council may take one of the following actions:

1) Terminate proceedings if written protests are received from the owners of the businesses in the GGTID that will pay fifty percent (50%) or more of the assessments proposed to be levied (a “majority protest”). If a majority protest is received, no further proceedings to levy the proposed assessment may be taken for a period of one (1) year from the date of the finding of a majority protest by the City Council. If the majority protest is against the furnishing of a specified type or types of improvement or a ctivity within the area, those types of improvements or activities must be eliminated.

2) Order changes in any of the matters provided in the Annual Report, including changes in the proposed assessments and/or the proposed improvements and activities to be funded with the revenues derived from the levy of assessments.

If changes are ordered, notice and a new public hearing will be required before the City Council may adopt a Resolution confirming the Annual Report as modified and levying the assessment.

3) Adopt the proposed Resolutions confirming Amendment No. 1 to the Fiscal Year 2025-26 Annual Report and confirming the Fiscal Year 2026 -27 Annual Report and levying the assessment on those visitor accommodation facilities within the boundaries of the GGTID, commencing July 1, 2026, and continuing through June 30, 2027.

FINANCIAL IMPACT

The proposed Fiscal Year 2026–27 budget and the Fiscal Year 2025–26 amendment have no impact on the City’s General Fund. It is estimated that the GGTID will generate approximately $2.6 million in revenue for Fiscal Year 2026-27. These funds will be dedicated to supporting local tourism promotion efforts. The majority of the revenue will be administered by Visit Anaheim and the GGTPC. Any administrative costs incurred by the City in connection with the GGTID will be reimbursed from assessment revenues, up to a certain cap established.

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RECOMMENDATION

It is recommended that the City Council:
 Conduct a public hearing regarding Amendment No. 1 to the Fiscal Year 2025-26 Annual Report and the proposed annual levy of assessment for Fiscal Year 2026-27;
 Receive the report from the City Clerk regarding any protests received; and  Adopt the Resolutions confirming Amendment No. 1 to the Fiscal Year 2025- 26 Annual Report and levying the assessment for the Garden Grove Tourism Improvement District for Fiscal Year 2026-27, assuming there is not a majority protest.

By: Henry Surjono, Administrative Analyst

ATTACHMENT(S)

1. Resolution Confirming Amendment No.1 - FY 2025-26

2. Resolution Confirming Annual Report and Levy Assessments - FY 2026-27

3. GGTID Advisory Board Report - Amendment No.1 FY 2025-26

4. GGTID Advisory Board Report - FY 2025-26

5. GGTID Advisory Board Report - FY 2026-27

6. Visit Anaheim Advisory Board Report - FY 2026-27

7. Visit Anaheim Advisory Board Powerpoint Presentation

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GARDEN GROVE CITY COUNCIL

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE CONFIRMING AMENDMENT NO. 1 TO THE FISCAL YEAR 2025-26 ANNUAL REPORT

OF THE GARDEN GROVE TOURISM IMPROVEMENT DISTRICT ADVISORY BOARD AND APPROVING MODIFICATIONS TO THE ACTIVITIES FOR FISCAL YEAR 2025-26

WHEREAS, the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Section 36500 et seq., (the “Law”) authorizes cities to establish parking and business improvement areas for the purpose of funding certain improvements and activities, including the promotion of tourism, through assessments upon the businesses that benefit from those improvements and activities and to levy an assessment upon businesses within a parking and business improvement area, which is in addition to any assessments, fees, charges, or taxes imposed in the City;

WHEREAS, the Garden Grove Tourism Improvement District (GGTID) was established October 26, 2010, by City Council adoption of Ordinance No. 2782; and

WHEREAS, in accordance with Section 36533 of the Law, the GGTID Advisory Board has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council, Amendment No. 1 to the Fiscal Year 2025-26 Annual Report in connection with the proposed modification to the activities for Fiscal Year 2025-26 (the “Amendment to the Annual Report”): and

WHEREAS, on February 24, 2026 , the City Counci l Adopted Resolution No. 9956-26 approving the Amendment to the Annual Report and declaring its intention to approve modifications to the activities for Fiscal Year 2025-26; and

WHEREAS, Pursuant to the law on March 10, 2026, the City Council conducted a public hearing concerning Amendment No. 1 to the Fiscal Year 2025 -26 Annual Report at the Community Meeting Center, located at 11300 Stanford Avenue, Garden Grove, California; and

WHEREAS, the City Council has heard and considered all protests, both written and oral, and herby determines there was not a majority protest within the meaning of Section 36525 of the Law.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GARDEN GROVE HEREBY RESOLVES, DETERMINES, AND FINDS AS FOLLOWS:

SECTION 1. The recitals set forth herein are true and correct.

SECTION 2. The City Council confirms its adoption of the Garden Grove City Council Resolution No. 9956-26 approving Amendment No. 1 to the Fiscal Year 2025-26 as described in the report, as originally approved on February 24, 2026.

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Garden Grove City Council
Resolution No.

Page 2 ends

SECTION 3. The boundaries of the GGTID generally include certain real property within that area of Garden Grove fronting, bordering, or near Harbor Boulevard from the City of Anaheim to Garden Grove Boulevard. The GGTID is divided into two (2) separate zones: (1) Tier 1, which includes that real property within the GGTID north of Lampson Avenue, and (2) Tier II, which includes that real property within the GGTID south of Lampson Avenue. A map showing the precise are a and boundaries of the GGTID and the two benefit zones is on file with the Garden Grove City Clerk;

SECTION 4. In accordance with the Annual Report, the annual assessments of Fiscal Year 2025-26 shall continue to be two and one-half percent (2.5%) of the gross rent charged by the operator per room occupancy per night for all Transient Occupancies for each Visitor Accommodation Facility in Tier 1 and one-half percent (0.5%) of the gross rent charged by the operator per room occupancy per night for all Transient Occupancies for each Visitor Accommodation Facility in Tier II; and

SECTION 5. Pursuant to the Parking and Business Improvement Area Law of 1989, the adoption of this Resolution shall constitute the approval of modifications of the activities to be funded with the revenues from the levy of assessments on those visitor accommodation facilities within the boundaries of the Garden Grove Tourism Improvement District (GGTID) for the 2025-26 Fiscal Year, commencing on July 1, 2025, through June 30, 2026.

Adopted on this 10th day of March 2026.
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GARDEN GROVE CITY COUNCIL
RESOLUTION NO.

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

CONFIRMING THE ANNUAL REPORT OF THE GARDEN GROVE TOURISM

IMPROVEMENT DISTRICT ADVISORY BOARD AND LEVY ASSESSMENTS FOR FISCAL YEAR 2026-27 FOR THE GARDEN GROVE TOURISM IMPROVEMENT DISTRICT

WHEREAS, the Garden Grove Tourism Improvement District (GGTID) was established October 26, 2010, by City Council adoption of Ordinance No. 2782; and WHEREAS, in accordance with Section 36533 of the Law, the GGTID Advisory Board has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council, a report in connection with the proposed levy of an assessment against visitor accommodation facilities within the GGTID (the “Annual Report”): and

WHEREAS, on February 24, 2026, the City Cou ncil Adopted Resolution No. 9955-26 approving the Annual Report and declaring its intention to levy assessments for Fiscal Year 2026-27 (the “Annual Report”)

WHEREAS, Pursuant to the law on March 10, 2026, the City Council conducted a public hearing concerning the Annual Report and levy of assessment for the GGTID for Fiscal Year 2026-27 at the Community Meeting Center, located at 11300 Stanford Avenue, Garden Grove, California; and

WHEREAS, the City Council has heard and considered all protests, both written and oral, and herby determines there was not a majority protest within the meaning of Section 36525 of the Law.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GARDEN GROVE HEREBY RESOLVES, DETERMINES, AND FINDS AS FOLLOWS:

SECTION 1. The recitals set forth herein are true and correct.

SECTION 2. The City Council confirms its adoption of the Garden Grove City Council Resolution No. 9955 -26 approving the Annual report, which describes the boundaries of the GGTID and identifies the assessment to be levied and collected to 178
Garden Grove City Council
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pay the costs of improvements and activities described in the report, as originally approved on February 24, 2026.

SECTION 3. The boundaries of the GGTID generally include certain real property within that area of Garden Grove fronting, bordering, or near Harbor Boulevard from the City of Anaheim to Garden Grove Boulevard. The GGTID is divided into two (2) separate zones: (1) Tier 1, which includes that real property within the GGTID north of Lampson Avenue, and (2) Tier II, which includes that real property within the GGTID south of Lampson Av enue. A map showing the precise area and boundaries of the GGTID and the two benefit zones is on file with the Garden Grove City Clerk;

SECTION 4. In accordance with the Annual Report, the annual assessments of Fiscal Year 2026-27 shall continue to be two and one-half percent (2.5%) of the gross rent charged by the operator per room occupancy per night for all Transient Occupancies for each Visitor Accommodation Facility in Tier 1 and one -half percent (0.5%) of the gross rent charged by the operator per ro om occupancy per night for all Transient Occupancies for each Visitor Accommodation Facility in Tier II; and

SECTION 5. Pursuant to the Parking and Business Improvement Area Law of 1989, the adoption of this Resolution shall constitute the levy of assessments on those visitor accommodation facilities within the boundaries of the Garden Grove Tourism Improvement District (GGTID) for the 2026-27 Fiscal Year, commencing on July 1, 2026, through June 30, 2027.

Adopted on this 10th day of March 2026.
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AMENDMENT NO.1 TO

GARDEN GROVE TOURISM IMPROVEMENT DISTRICT

ADVISORY BOARD REPORT
Fiscal Year 2025–2026
Prepared in accordance with the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code § 36500 et seq.)

This Amendment updates the Garden Grove Tourism Improvement District (GGTID) Advisory Board Report for Fiscal Year 2025–2026 to clarify the funding source for transit- related expenditures and to add transit services as an eligible and proposed activity for the fiscal year. All other provisions of the adopted Advisory Board Report remain unchanged.

Budget Clarification and Funding Source Amendment
The FY 2025–2026 GGTID budget is amended to clarify that up to $600,000 may be allocated for transit-related purposes will be from the City-retained portion of GGTID assessment revenues designated for transit or transportation systems.

Pursuant to the GGTID enabling ordinance and the agreement governing the administration and distribution of GGTID assessment revenues, a portion of the assessment is retained by the City for transit or transportation systems that benefit Visitor Accommodation Facilities within the GGTID. This amendment does not increase the total GGTID budget, change assessment rates, or modify the method or basis of levying the assessment. The amendment solely aligns the funding source with the allowable and intended use of transit- designated revenues.

Amendment to Proposed Activities for Fiscal Year 2025-2026 Transit Services
The GGTID improvements and activities to be provided may include transit or transportation services that directly benefit Visitor Accommodation Facilities within the GGTID. Transit services are intended to support tourism, enhance visitor mobility, and improve access to regional destinations.

Transit services may be used to:
• Provide transportation options that reduce reliance on personal vehicles and alleviate congestion along key corridors within and adjacent to the GGTID. • Enhance the visitor experience by improving connectivity between hotels and nearby attractions, destinations, and activity centers.
• Support the long-term economic competitiveness of the Garden Grove Resort District by increasing accessibility, encouraging longer stays, and promoting visitor spending.

In the event that a Visitor Accommodation Facility elects not to participate in the primary GGTID-sponsored transit program, the GGTID may allocate a proportional share of transit- related funds toward alternative transportation services that provide comparable mobility benefits within the District, consistent with the purposes of the District and the Parking and Business Improvement Area Law of 1989. Except as expressly amended herein, all other provisions of the Garden Grove Tourism Improvement District Advisory Board Report for Fiscal Year 2025–2026 remain unchanged and in full force and effect. 180

GARDEN GROVE TOURISM IMPROVEMENT DISTRICT

ADVISORY BOARD REPORT
Fiscal Year 2025–2026
Prepared in accordance with the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code § 36500 et seq.)

The Garden Grove Tourism Improvement District (GGTID) was established by the Garden Grove City Council in accordance with the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code section 36500 et seq. (referred to as the “Law”), through the adoption of Resolution No. 9009-10 on August 24, 2010, and Ordinance No. 2782 on October 26, 2010.

The purpose of the GGTID is to provide revenue to defray the costs of advertising and marketing efforts designed to increase overnight stays in the GGTID, for construction and for maintenance of improvements in the GGTID. It will also provide other services, activities, and programs that promote and encourage tourism within the GGTID, which will benefit the Operators of Visitor Accommodation Facilities paying assessments through the promotion of scenic, recreational, cultural, and other attractions.

Pursuant to Ordinance No. 2782, the Board of Directors of the Garden Grove Tourism Promotion Corporation, a California non-profit mutual benefit corporation, serves as the GGTID Advisory Board. In accordance with Ordinance No. 2782 and California Streets and Highways Code Section 36533, the Advisory Board is required to annually prepare and submit to the City, a report for the upcoming fiscal year, which is required to contain the following:

1. Any proposed changes in the boundaries of the GGTID or the benefit zones within the GGTID.

2. The GGTID improvements and activities to be provided in the upcoming fiscal year from GGTID assessment revenues and/or any other contributions from sources other than GGTID assessment revenues.

3. An estimate of the cost of providing the GGTID improvements and the activities for the upcoming fiscal year.

4. The method and basis of levying the assessment in sufficient detail to allow each Visitor Accommodation Facility to estimate the amount of the assessment to be levied against the Visitor Accommodation Facility for the fiscal year, and any proposed changes to the method and basis of levying the assessment.

5. The amount of any surplus or deficit revenues to be carried over from the previous fiscal year.

6. The amount of any contributions to the GGTID to be made from sources other than assessments levied against the Visitor Accommodation Facilities.

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1. CHANGES TO BOUNDARIES AND BENEFIT ZONES
No Changes to Boundaries Proposed
The GGTID boundaries encompass certain real property in Garden Grove generally fronting or near Harbor Boulevard, from the northern boundary of the City to Garden Grove Boulevard. The GGTID includes two (2) benefit zones:
• Tier I: All real property within the GGTID north of Lampson Avenue. • Tier II: All real property within the GGTID south of Lampson Avenue.

A map of the GGTID and its two benefit zones is on file with the Garden Grove City Clerk.

No changes to these boundaries or benefit zones are proposed for Fiscal Year 2025–2026.

2. PROPOSED ACTIVITIES FOR FISCAL YEAR 2025–2026
The GGTID improvements and activities to be provided (funded by GGTID assessment revenues and other possible contributions) include:

1. Development of a New Destination Website
o Creation of a dynamic online platform showcasing Grove District hotel offerings, renovations, dining, entertainment, and transportation. o Designed to convert digital interest into overnight bookings, increase occupancy rates, and drive visitor spending.
o Serves as a centralized hub for marketing campaigns, partnerships, and strategic branding efforts.

2. Foods of Garden Grove LIVE 2025
o Building on the success of the 2024 event, this culinary festival will feature local restaurants, diverse cultural showcases, chef demonstrations, influencer meetups, and interactive tastings.
o Enhanced digital integration with AI-powered promotions and real-time audience engagement.
o Aims to raise regional awareness, support local businesses, and highlight Garden Grove’s vibrant food scene.

3. Maintenance Activities
o Ongoing maintenance of sidewalks, landscaping, bus shelters, and palm tree lighting--particularly along Harbor Boulevard between Chapman Avenue and Garden Grove Boulevard.
o Enhancements intended to maintain a clean, attractive environment that encourages visitor engagement.

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4. Private Security
o Implementation of private security measures to bolster safety throughout the Grove District.
o Emphasizes improved public perception, visitor confidence, and overall district security.

5. Trade Mission
o Promotion of Garden Grove in emerging domestic and international markets to elevate the City’s profile as a premier tourist destination. o Focuses on increasing visitor arrivals, boosting hotel occupancy, and driving regional economic growth.

6. Garden Grove Chamber of Commerce Tourism Initiatives o Continued strategic partnership with the Garden Grove Chamber of Commerce to bolster marketing and promotional efforts.
o Utilizes Chamber-hosted events, business development programs, and advocacy efforts to expand the GGTID’s visibility.

3. ESTIMATED COSTS OF IMPROVEMENTS AND ACTIVITIES
In accordance with a 2011 agreement between the City of Garden Grove and the Visitors Convention Bureau (VCB), approximately 80% of the net GGTID assessment revenues (2.0% of the total 2.5% assessment in Tier I, and 0.4% of the total 0.5% assessment in Tier II) is allocated to Visit Anaheim for marketing and promotion benefitting Visitor Accommodation Facilities in the “Anaheim Resort District.” For Fiscal Year 2025–2026, the City retains 0.5% of gross room rent charged per occupied room night for transit or transportation systems that benefit the GGTID.

GGTID Budget for FY 2025–2026
The GGTID Budget FY 2025–2026 identifies the following estimated revenues and expenses:

Revenues
• FY 2025–2026 Estimated Revenue: $733,000
• FY 2024–2025 Carry Over: $115,000
• Total FY 2025–2026 Revenue: $848,000

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GGTID FY 2025–2026 Expenses
Category % of Total Budget (USD)

1. Marketing
A. Website 9.6% $81,408
B. Foods of Garden Grove 3.3% $27,984

2. Tourism Missions 4.0% $33,920

3. Chamber and Sponsorships 6.0% $50,880

4. Private Security 30.0% $254,400

5. Harbor Blvd. Maintenance / Utilities / Repairs 33.0% $279,840

6. Condominium Management Contract 2.1% $17,808

7. City Administrative Fees (Per Agreement) 3.0% $25,440

8. Administrative/Accounting/Auditing (Per Agreement) 4.0% $33,920

9. GGTID Reserve 5.0% $42,400
100% $848,000

4. METHOD AND BASIS FOR LEVYING THE ASSESSMENT
No Changes to Assessment Rate or Method
The annual assessments will remain at:
• Tier I: Two and one-half percent (2.5%) of the gross rent charged by the Operator per room per night.
• Tier II: One-half percent (0.5%) of the gross rent charged by the Operator per room per night.

Assessments continue to be collected monthly, at the same time and in the same manner as the City’s Hotel Visitors Tax, pursuant to Chapter 12 of Title 3 of the Garden Grove Municipal Code.

5. PRIOR YEAR SURPLUS OR DEFICIT
It is estimated that $115,000 in surplus assessment revenues will be carried over from Fiscal Year 2024–2025. These funds will be used to finance GGTID improvements and activities in Fiscal Year 2025–2026 as outlined in the budget above.

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6. OTHER CONTRIBUTIONS
No additional contributions to the GGTID from outside sources are anticipated for Fiscal Year 2025–2026.
2024–2025 Garden Grove Tourism Improvement District Accomplishments For Fiscal Year 2024–2025, the Garden Grove Tourism Improvement District (GGTID) strategically allocated marketing funds to enhance the Grove District with a focus on promoting tourism, supporting local businesses, and improving community infrastructure.

Below is a breakdown of key initiatives and allocations:

1. Marketing
o $28,413 was allocated for general marketing efforts, including promotional materials, targeted advertising campaigns, and related outreach designed to attract visitors and boost overnight stays.

2. Website
o $28,413 was specifically invested in developing a dedicated Website to showcase the Grove District’s attractions, accommodations, and dining. o In March 2025, the Garden Grove Tourist Promotion Corporation (GGTPC) selected Unbiazed to design and develop this modern, fully responsive Website that follows best practices in tourism marketing and user experience.

3. Foods of Garden Grove LIVE 2024
o $27,984 supported the City’s signature culinary event celebrating local restaurants and diverse cultural experiences.
o Leveraging AI-generated captions and geo-targeted campaigns, the event saw a 250% increase in social media engagement and over 50,000 digital impressions, with 4,000+ attendees.

4. Tourism Missions
o $33,900 was allocated to promote Garden Grove in targeted domestic and international markets. Unused funds from FY 2024–2025 (due to a canceled trade mission) were reallocated to landscaping and security.

5. Chamber and Sponsorships
o $50,088 was dedicated to partnerships with the Garden Grove Chamber of Commerce and other sponsorship initiatives, fostering broader business relationships and regional marketing opportunities.

6. Private Security Enhancement
o $254,400 was funded to enhanced private security within the Grove District, strengthening safety, visitor confidence, and overall commercial vitality.

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GARDEN GROVE TOURISM IMPROVEMENT DISTRICT

ADVISORY BOARD REPORT
Fiscal Year 2026–2027
Prepared in accordance with the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code § 36500 et seq.)

1. Any proposed changes in the boundaries of the GGTID or the benefit zones within the GGTID.

2. The GGTID improvements and activities to be provided in the upcoming fiscal year from GGTID assessment revenues and/or any other contributions from sources other than GGTID assessment revenues.

3. An estimate of the cost of providing the GGTID improvements and the activities for the upcoming fiscal year.

5. The amount of any surplus or deficit revenues to be carried over from the previous fiscal year.

6. The amount of any contributions to the GGTID to be made from sources other than assessments levied against the Visitor Accommodation Facilities. 186

A map of the GGTID and its two benefit zones is on file with the Garden Grove City Clerk.

No changes to these boundaries or benefit zones are proposed for Fiscal Year 2026–2027.

2. PROPOSED ACTIVITIES FOR FISCAL YEAR 2026–2027
The GGTID improvements and activities to be provided (funded by GGTID assessment revenues and other possible contributions) include:

1. Maintenance of Destination Website
o Maintaining a dynamic online platform showcasing Grove District hotel offerings, renovations, dining, entertainment, and transportation. o Designed to convert digital interest into overnight bookings, increase occupancy rates, and drive visitor spending.
o Serves as a centralized hub for marketing campaigns, partnerships, and s
trategic branding efforts.

2. Foods of Garden Grove LIVE 2026
o Building on the success of the 2025 event, this culinary festival will feature local restaurants, diverse cultural showcases, chef demonstrations, influencer meetups, and interactive tastings.
o Enhanced digital integration with AI-powered promotions and real-time audience engagement.
o Aims to raise regional awareness, support local businesses, and highlight Garden Grove’s vibrant food scene.

3. Maintenance Activities
o Ongoing maintenance of sidewalks, landscaping, bus shelters, and palm tree lighting, particularly along Harbor Boulevard between Chapman Avenue and Garden Grove Boulevard.
o Enhancements intended to maintain a clean, attractive environment that e
ncourages visitor engagement.
o Additional streetscape and landscaping enhancements may be supported through other City funding sources or grant programs that benefit the GGTID. 187

7. Transit Services
o Provide visitor-serving transportation options that reduce reliance on personal vehicles and alleviate congestion along key corridors within and adjacent to the GGTID.
o Transit services may be funded through City-retained transit-designated GGTID revenues and other available transportation funding sources, as authorized by the City Council.
o In the event that a Visitor Accommodation Facility elects not to participate in the primary GGTID -sponsored transit program, the GGTID may allocate a proportional share o f transit -related funds toward alternative transportation services that provide comparable mobility benefits within the District, consistent with the purposes of the District and the Parking and Business Improvement Area Law of 1989.

8. Harbor Revitalization
o The City of Garden Grove will pursue grant funding through the U.S. Economic Development Administration (EDA) to enhance streetscape improvements, lighting, and ongoing maintenance along Harbor Boulevard. o Any use of GGTID funds for Harbor Boulevard revitalization or as matching funds for grant programs would be subject to the availability of funds, future C
ity Council approval and consistency with the purposes of the GGTID. o HHarbor revitalization may be funded through City-retained, street-designated GGTID revenues, as authorized by the City Council.

3. ESTIMATED COSTS OF IMPROVEMENTS AND ACTIVITIES
In accordance with a 2011 agreement between the City of Garden Grove and the Visitors Convention Bureau (VCB), approximately 80% of the net GGTID assessment revenues (2.0% of the total 2.5% assessment in Tier I, and 0.4% of the total 0.5% assessment in Tier II) is allocated to Visit Anaheim for marketing and promotion benefitting Visitor 188
Accommodation Facilities in the “Anaheim Resort District.” For Fiscal Year 2026–2027, the City retains 0.5% of gross room rent charged per occupied room night for transit or transportation systems that benefit the GGTID.

GGTID Budget for FY 2026–2027
The GGTID Budget FY 2026–2027 identifies the following estimated revenues, funds and expenses:
$ 747,660
$ 117,300
$ 600,000
• FY 2026–2027 Estimated Revenue:
• FY 2025–2026 Revenue Carry Over:
• Transit Fund:
• Street Fund: $301,964
• Total FY 2026–2027 Budget: $1,766,924
GGTID FY 2026–2027 Expenses
Category % of Total Budget (USD)

1. Ma rketing
A. Website 4.8% $85,000
B. Foods of Garden Grove 1.6% $28,544

2. T
ourism Missions 2.0% $34,598

3. Ch
amber and Sponsorships 2.9% $51,898

4. P
rivate Security 14.7% $259,488

5. Harbor Blvd. Maintenance / Utilities / Repairs 33.1% $585,437

6. C
ondominium Management Contract 1.0% $18,164

7. C
ity Administrative Fees (Per Agreement) 1.5% $25,949

8. Administrative/Accounting/Auditing (Per Agreement) 2.0% $34,598

9. Transit Services 34.0% $600,000

10. GGTID Reserve 2.4% $43,248
100% $1,766,924

4. METHOD AND BASIS FOR LEVYING THE ASSESSMENT
No Changes to Assessment Rate or Method
The annual assessments will remain at:
• Tier I: Two and one-half percent (2.5%) of the gross rent charged by the Operator per room per night.
189
• Tier II: One-half percent (0.5%) of the gross rent charged by the Operator per room per night.

Assessments continue to be collected monthly, at the same time and in the same manner as the City’s Hotel Visitors Tax, pursuant to Chapter 12 of Title 3 of the Garden Grove Municipal Code.

5. PRIOR YEAR SURPLUS OR DEFICIT
It is estimated that $117,300 in surplus assessment revenues will be carried over from Fiscal Year 2025–2026. These funds will be used to finance GGTID improvements and activities in Fiscal Year 2026–2027 as outlined in the budget above.

6. OTHER CONTRIBUTIONS
No additional contributions to the GGTID from outside sources are anticipated for Fiscal Year 2026–2027.

2025–2026 Garden Grove Tourism Improvement District Accomplishments

For Fiscal Year 2025–2026, the Garden Grove Tourism Improvement District (GGTID) strategically allocated marketing funds to enhance the Grove District with a focus on promoting tourism, supporting local businesses, and improving community infrastructure.

Below is a breakdown of key initiatives and allocations:

3. Foods of Garden Grove LIVE 2025
o $27,984 supported the City’s signature culinary event celebrating local restaurants and diverse cultural experiences.
o Leveraging AI-generated captions and geo-targeted campaigns, the event saw a 250% increase in social media engagement and over 50,000 digital impressions, with 4,000+ attendees.

4. Tourism Missions
o $33,900 was allocated to promote Garden Grove in targeted domestic and international markets.

5. Chamber and Sponsorships
o $50,880 was dedicated to partnerships with the Garden Grove Chamber of Commerce and other sponsorship initiatives, fostering broader business relationships and regional marketing opportunities.

6. Private Security Enhancement
o $254,400 was funded to enhance private security within the Grove District, strengthening safety, visitor confidence, and overall commercial vitality.

7. Utilities, Repairs, and Landscaping
o $279,840 was used for infrastructure maintenance, including tree trimming, irrigation upgrades, and streetscape improvements along Harbor Boulevard and Chapman Avenue.
190
Greg Blodgett
Economic Development Deputy Director
2024/2025 GGTID Visit Anaheim Annual Report – City of Garden Grove City Council Recap Feb 24, 2026

As we reflect on another year of progress, the Garden Grove Tourism Improvement District (GGTID) continues to demonstrate the strength and resilience of the TID investment model. Through its longstanding partnership with Visit Anaheim, the District remains focused on driving measurable economic impact for Garden Grove’s hotel, local businesses and other stakeholders. Even amid evolving market conditions and increasing regional competition, this collaboration has sustained Garden Grove’s visibility and competitiveness within the Southern California tourism and convention landscape, delivering consistent value and positioning the destination for continued growth.

Through an integrated marketing platform that includes direct sales, advertising, trade show participation, digital campaigns, public relations, and social media engagement, Visit Anaheim continues to drive incremental visitation, expand market share, and support long-term demand growth.

Convention and meetings initiatives supported by TID funds delivered exceptional performance, exceeding Board-approved booking goals and securing high-profile events that will generate significant economic impact through 2030. Complementing these efforts, marketing and communications programs produced substantial returns, with advertising investments yielding measurable revenue and engagement. Signature initiatives such as the 100 Days ’Til Summer campaign and the Imaginagency public relations program drove incremental room nights and visitor spending across hotels, restaurants, and attractions, while innovative content marketing and digital activations reached millions of prospective travelers in both domestic and international markets.

Together, these results reflect a disciplined, data-driven strategy designed to maximize TID investment, strengthen hotel performance, and reinforce Garden Grove’s position as a dynamic and competitive destination within the global tourism economy.

Garden Grove’s proximity to the world-class Disneyland Resort and the Anaheim Convention Center continues to be a strategic advantage, amplified through a coordinated and data-driven partnership with Visit Anaheim. By aligning focused group sales deployment with layered domestic and international marketing initiatives, the District has strengthened demand generation across key segments. These efforts have supported higher-value bookings, optimized occupancy, enhanced rate performance, and reinforced Garden Grove’s long-term positioning within a highly competitive resort and meetings marketplace.

191
Key Accomplishments and Impacts
In FY 2024–2025 alone, Visit Anaheim’s initiatives delivered outstanding performance, including:
• 630.1K room nights booked tied to convention sales and group travel with 949.5K requested attendees.
196 million digital impressions generated across consumer and group market campaigns generating 111.7 million in trackable destination revenue for Anaheim and Garden Grove combined. • 1.5 million Website visitors representing a 31% year over-year-growth, driving direct bookings. • Over 3,080 travel trade agent engagement, significantly elevating global awareness.

These initiatives contributed directly to compressed market demand, meaning higher occupancy and stronger ADR for Garden Grove hotels during key citywide and regional events.

Hotel Industry Confidence and Continued Support
The ongoing engagement and active participation of Garden Grove’s hotel operators reflect continued confidence in Visit Anaheim’s strategic leadership and execution. Hotel partners consistently cite measurable returns from coordinated sales and marketing initiatives and have reaffirmed their support for sustaining, and strengthening this collaborative partnership.

Visit Anaheim’s disciplined strategic planning, robust market intelligence, and established national brand presence enable Garden Grove hotels to compete at a scale far beyond what could be achieved independently. This strength-in-partnership model continues to position the GGTID effectively within an increasingly competitive hospitality landscape, driving visibility, demand, and long-term market resilience.

192
Strategic Budget Visit Anaheim Overview: FY 2026–2027

For FY 2026–2027, the GGTID budget is strategically focused on high-impact programs and performance- driven initiatives implemented in partnership with Visit Anaheim. The investment categories below reflect targeted allocations designed to drive measurable outcomes and maximize return on investment:

GGTID/Visit Anaheim FY 2026–2027 Budget Overview

Category Allocation Description

1. Marketing
Expenses

$681,000
Covers advertising, promotions, collateral production, and associated staffing costs. Supports broad awareness campaigns across key leisure and group segments.

2. Tourism
Development

$238,000
Includes international representation, sales missions, consumer marketing efforts, trade shows, meetings and conferences, travel trade association fees, and other tourism-facing initiatives.

3. Convention Sales

$626,000
Dedicated to attracting meetings and conventions through client events, sales missions, familiarization tours, partnerships, promotional exhibits, and sales travel efforts.

4. Destination
Services

$115,000
Enhances the visitor and event planner experience through dues and registration fees, client servicing tools, promotional materials, and welcome collateral.

5. Business
Intelligence $63,000 Supports data analytics, market research, and staffing to inform pricing strategies, campaign performance, and demand forecasting.

6. Operations &
Administration

$264,000
Covers administrative functions including staffing, general operations, compliance, financial reporting, and overhead necessary for effective program execution.
🔹🔹🔹🔹 Total FY 2026–2027 Budget: $1,987,000

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Looking Ahead for 2026–2027
As we look ahead, Visit Anaheim remains focused on proactively addressing external challenges while advancing strategic initiatives designed to strengthen visitation, increase destination awareness, and support long-term industry sustainability. Despite headwinds including declines in international travel, inflation, and broader geopolitical pressures, Visit Anaheim continues to pivot, deploying targeted investments, and launching high-impact programs to position Anaheim and Garden Grove for continued growth in 2026 and beyond as follows:

• Advancing new demand-driving initiatives, including a second iteration of the 100 Days ‘Til Summer campaign, securing the return of the Savannah Bananas, and launching the Stand Up, Chow Down Comedy and Culinary Festival in 2026.
• Strengthening the meetings and conventions pipeline by securing the ConferenceDirect CDX Annual Meeting in 2026—one of five major industry events booked in Anaheim through 2030, collectively bringing more than 20,000 meeting and travel professionals to the destination. • Celebrating the launch of the Anaheim Tourism Improvement District (ATID) Hotel Workforce Housing Program, a first-of-its-kind hospitality workforce initiative, while strategically reallocating $2.2M annually to support Anaheim TID hotel employees.
• Preparing to launch a new brand identity in 2026, informed by stakeholder and community input, to reflect Anaheim’s ongoing evolution and future growth

To provide context and support for the proposed FY 2026–2027 GGTID budget allocations, the following section highlights key results from Visit Anaheim’s FY 2024/2025 Annual Report. This report details the performance outcomes and strategic initiatives executed in support of Anaheim and Garden Grove and the broader Orange County tourism ecosystem.

Although the GGTID operates on a July–June fiscal cycle and Visit Anaheim reports KPIs on a calendar- year basis (January–December), the CY 2025 performance results directly support and align with the strategic priorities and investment framework outlined for the upcoming fiscal year.

Collectively, these results demonstrate measurable return on investment generated through our partnership with Visit Anaheim, spanning convention and meetings sales, leisure marketing, international market development, digital engagement, and sports tourism. The performance metrics and initiatives summarized in the following pages illustrate how Visit Anaheim continues to elevate Garden Grove’s brand presence, stimulate hotel demand, and reinforce our competitive positioning within the regional and national tourism marketplace.

Please see the following pages for a comprehensive summary of Visit Anaheim’s 2024/2025 Annual GGTID Report as it relates specifically to Garden Grove Tourism Improvement District performance and accomplishments.

194
July 2024 -June 2025
Garden Grove
Visit Anaheim’s Impact on
195
Agenda

GARDEN GROVE CITY COUNCIL MEETING
• Executive Summary
• FY 2024/2025 Results
• Destination Visitor Information
• Business Intelligence - Fiscal 2024
• Marketing and Communications
• Tourism
• Workforce Development
• Financial Information
• Key 2024-2025 Highlights
196

GARDEN GROVE CITY COUNCIL MEETING
CONVENTION SALES RESULTS:

MEETING SALES RESULTS: TOURISM RESULTS:

FY 2024/2025 Convention, Meeting & Tourism Results
197
Destination Visitor Information
198

GARDEN GROVE CITY COUNCIL MEETING
Economic Impacts – Garden Grove
2024
$769M

VISITOR SPEND
(+1.3% YoY)

3.26 VISITOR VOLUME
(+0.6% YoY)
$1.09B

TOTAL ECONOMIC IMPACT
(+1% YoY)
199
Business Intelligence -
Fiscal 2024
200

GARDEN GROVE CITY COUNCIL MEETING

1. Hampton Inn & Suites Anaheim - Garden Grove

2. Hilton Garden Inn Anaheim/Garden Grove

3. Homewood Suites by Hilton Anaheim-Main Gate Area

4. Anaheim Marriott Suites

5. Embassy Suites by Hilton, Anaheim South

6. Hyatt Regency Orange County

7. Residence Inn Anaheim Resort Area

8. Sheraton Garden Grove-Anaheim South Hotel

9. Delta Hotels by Marriott Anaheim Garden Grove

10.Great Wolf Lodge Resort
10 Garden Grove TID Hotels
Data Source: Simpleview, brought to you by Visit Anaheim BI Team on May 2, 2025 201
11 CITYWIDES
*IMPACTING GG
30% OF TOTAL CITYWIDES
248,698
*ROOM NIGHTS
$723M
*ECONOMIC IMPACT

GARDEN GROVE CITY COUNCIL MEETING
Citywides Consumed and Impacting Garden Grove
July 1, 2024 – June 30, 2025
362,000
*ATTENDEES
Data Source: Simpleview, brought to you by Visit Anaheim BI Team on February 27, 2026

COMBINED DESTINATION IMPACT
(ANAHEIM & GARDEN GROVE)
*Over 3,000 on Peak
202

GARDEN GROVE CITY COUNCIL MEETING
Data Source: Symphony, brought to you by Visit Anaheim BI Team on February 27, 2026 Citywide Event Impact for Garden Grove
July 1, 2024 – June 30, 2025
*Citywide Events = Events that have greater than or equal to 1,000 peak rooms. *As of February 27, 2026
203
Marketing &
Communications
204

GARDEN GROVE CITY COUNCIL MEETING
Visit Anaheim delivered strong economic results while using budget dollars efficiently. A $2.18M budget generated more than $111.7M in visitor spending, 196M impressions resulting in 838,975 observed visits.*
Leisure marketing campaigns drove visitation and spending.

Campaigns such as Here We Go and 100 Days ‘’til Summer
reached a broad audience and generated 110.6M views,
618,000 observed visits, and nearly $30M in hotel revenue.

Luxury campaign attracted higher -value visitors.

The Greatest Luxury of All campaign generated $12M in
accommodations revenue alone, with performance improving as targeting became more focused.

Meetings and Conventions marketing built future business.

A $233,000 investment generated 1,829 qualified business leads, supporting future group bookings for Anaheim.

Marketing Highlights & Impact
FY 2024-2025
*Observed visits are actual trips people made to the destination, identified using anonymous mobile location data — not estimates or projections.

Source: Tourism Economics
Visit Anaheim’s owned channels helped convert interest
into visits.

Website traffic increased 31%, email engagement remained strong, and 6,141 visitors enrolled in the Digital Savings Pass, encouraging spending at local hotels, restaurants, and attractions.

As travel demand shifted and certain travel periods
softened, Visit Anaheim adjusted its strategy to maintain visibility while maximizing economic return. Overall, the organization improved efficiency and delivered measurable benefits across leisure, luxury, and meetings and
conventions demonstrating responsible use of ATID and
GGTID funds and supporting Anaheim’s long-term growth.
205

GARDEN GROVE CITY COUNCIL MEETING
206

GARDEN GROVE CITY COUNCIL MEETING
207
Garden Grove
Direct Marketing Impact

GARDEN GROVE CITY COUNCIL MEETING
208

GARDEN GROVE CITY COUNCIL MEETING
Leisure Campaign
Garden Grove Paid Digital Advertising Impact
FY 2024-2025
Leisure Campaign: Paid Digital Advertising Impact
To better understand Garden Grove specific impact from Visit Anaheim’s leisure paid digital advertising campaign Here We Go, a measurement area was established across Garden Grove ZIP codes. This expanded measurement captured visitation and visitor spending, providing a clearer view of how digital media drove visitation and economic activity in Garden Grove.

Garden Grove Results (July 2024 – June 2025)
• $11.76 million in incremental visitor spending generated by visitors reached through digital advertising
• 85,600+ ad-messaged visitors traveled to Garden Grove ZIP codes during this period
• Top feeder markets: Los Angeles (largest) and San Francisco, reinforcing strong nearby drive and short-haul air markets
209

GARDEN GROVE CITY COUNCIL MEETING
Visitation & Impact Highlights
• Retail was the largest spending category, accounting for roughly 30% of measured visitor spend, demonstrating strong support for local businesses. • Accommodations represented a meaningful share of total spending, reflecting sustained overnight visitation tied to the campaign. • Average transaction values indicate quality visitor activity, with lodging transactions averaging in the $200+ range and retail purchases averaging $40–$80.
• Spending patterns show a balanced mix of day visitors and overnight guests, extending economic benefits beyond hotels to neighborhood retail and services.

Key Takeaway
Paid marketing delivered sustained, incremental visitation and diversified visitor spending in Garden Grove, demonstrating both short-term demand generation and longer-term economic impact beyond the core campaign footprint.

Leisure Campaign
Garden Grove Paid Digital Advertising Impact
FY 2024-2025
210
• Grove
Top Performing Garden Grove Zip Codes
ZIP Features Visitor
Spend Visitors
% Area
Visitor
Spend
Yield Per
Visitor
92843 Garden Grove $3,295,600 23,535 42.8% $140
92840 Garden Grove $2,310,000 18,201 30.0% $126
92844 Garden Grove $1,001,000 12,265 13.0% $81
Top Performing Garden Grove Zip Codes
ZIP Features Visitor
Spend Visitors
% Area
Visitor
Spend
Yield Per
Visitor
92840 Garden Grove $3,302,813 22,853 81.3% $141
92844 Garden Grove $94,063 4,438 9.7% $88
92845 Garden Grove $361,563 4,308 8.9% $83
Garden Grove Measurement Area by Top Performing Zip Codes Source: Epsilon NEI Campaign Results Report
July - Dec 2024 Jan - June 2025
211

GARDEN GROVE CITY COUNCIL MEETING
Luxury Campaign: Paid Digital Advertising Impact
While The Greatest Luxury of Allcampaign focused on promoting the destination’s AAA Four-Diamond hotel properties, this expanded measurement area shows the campaign also generated incremental visitation and visitor spending in Garden Grove.

Garden Grove Results (July 2024 – June 2025)
• $3.8 million in incremental visitor spending generated by ad- messaged travelers
• 28,100+ visitors traveled to Garden Grove ZIP codes after seeing the ads
• Top feeder markets: Los Angeles (largest) and San Francisco, reinforcing strong nearby drive and short-haul air markets Luxury Campaign
Garden Grove Paid Digital Advertising Impact
212

GARDEN GROVE CITY COUNCIL MEETING
Visitation & Spending Highlights
• Accommodations accounted for 24% of total measured spending across both periods, supporting overnight stays
• Average accommodation transaction ranged from $228–$275 • Retail and Grocery/Specialty spending represented ~30% of total spend, the largest category
• Average retail and grocery transactions ranged from $41–$81 Key Takeaway
Although the campaign was designed to promote the destination’s affluent AAA Four-Diamond properties, paid digital marketing delivered sustained, incremental visitation and diversified visitor spending in Garden Grove.

Consistent with the leisure campaign, this program produced economic returns for local hotels and businesses extending beyond the campaign’s primary focus.

Luxury Campaign
Garden Grove Paid Digital Advertising Impact
213
July - Dec 2024
Top Perform ing Garden Grove Zip Codes
ZIP Features Visitor
Spend Visitors
% Area
Visitor
Spend
Yield Per
Visitor
92843 Garden Grove $745,179 3,826 42.1% $195
92840 Garden Grove $592,004 3,378 33.5% $175
92844 Garden Grove $206,945 1,918 11.7% $108
Jan - June 2025
Top Perform ing Garden Grove Zip Codes
ZIP Features Visitor
Spend Visitors
% Area
Visitor
Spend
Yield Per
Visitor
92840 Garden Grove $1,588,656 10,668 67.7% $168
92844 Garden Grove $204,950 2,476 8.7% $82
92845 Garden Grove $201,194 2,056 8.6% $97
Garden Grove Measurement Area by Top Performing Zip Codes 214
4,783,132

TOTAL IMPRESSIONS
4,336,085

MEDIA IMPRESSIONS

GARDEN GROVE CITY COUNCIL MEETING
Total Communications Impressions
July 2024 – June 2025
447,047

SOCIAL MEDIA IMPRESSIONS
215

GARDEN GROVE CITY COUNCIL MEETING
Organic Social Media Content
24 total organic posts generated 261,770
impressions and 6,449 engagements
during the reporting period.

Locations featured include Great Wolf
Lodge, SteelCraft Garden Grove, and the
overall destination.

Great Wolf Lodge was featured
prominently in Imaginagent Series on Visit
Anaheim’s Instagram and TikTok channels.
216

GARDEN GROVE CITY COUNCIL MEETING
Social Media Ads
Boosted Imaginagent Series content dedicated to Great Wolf Lodge on Visit Anaheim’s Instagram account, resulting in 154,677 impressions and 2,207 engagements.

Content: https://www.instagram.com/reel/DOW892qktC_/?hl=en.

One influencer visit resulting in 30,600 impressions
and multiple pieces of content across
@LightTravelsFaster Instagram account.

Influencer Partnership
217

GARDEN GROVE CITY COUNCIL MEETING
• Foods of Garden Grovepress release added to VAwebsitePress Releases FAMs Paul Chai (Australian writer) stayed at the Hyatt Regency OC inOct. ‘24 Media
Coverage
•2024 Food of Garden Grove
• Culture OC = 3,000 impressions
•Luxury Escape's DREAM magazine featured Hyatt Regency OCin feature •2025 Strawberry Festival= 4,199,605 impressions
• NBC – Festival Feature
• NBC – Things to Do
• LAist – Things to Do
• Mommy Poppins – Things to Do
•Imaginagency = 1,333,480 impressions
• Tamron Hall Show = 454,617 impressions
• Broadcast to 45 markets throughout the US
• Ad Age = 329,067
• TrendHunter = 549,796
218

GARDEN GROVE CITY COUNCIL MEETING
219
Tourism
220

GARDEN GROVE CITY COUNCIL MEETING
Tourism Programs
Tourism Campaign Results
Consumer Promotions via Travel Trade

94.7 M 208.1K
Impressions Room nights

42.3 M 52.4 M 140.3K 67.8K
Domestic International Domestic International Destination Webinars and Training
878 agents
In Mexico, Korea, Japan, Australia, New Zealand,
UK, China, India
Familiarization Tours
16 In-market FAM Groups
Tour Operators, Travel Agencies, Travel Trade Media, Influencers from Canada, Mexico, Australia, UK, New Zealand, Thailand 221

GARDEN GROVE CITY COUNCIL MEETING
Consumer Campaigns Co-op Programs with Travel Trade Partners ॓͝ധ͸σΟζ χ͘ͷ
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5-A037587706-omote-UT507-S.indd 1 2025/04/14 11:46
222

GARDEN GROVE CITY COUNCIL MEETING
Visit California Sales Missions
in Canada, Mexico, UK, Germany, France
Travel Trade Expos & Trade Shows
SYTA (Student Youth Travel Association)
Go West Summit
Brand USA/Visit USA Events in Canada,
Australia, New Zealand, UK
Visit Anaheim International Representation
Mexico - Australia - New Zealand
UK (Starting May 2025)
Targeting Asia through Visit California International Offices & Receptive Tour Operators Travel Trade Engagement
3080 Travel Sellers
Tour Operators, Travel Agents, Travel Influencers
Visit Anaheim Sales Missions
with Anaheim & Garden Grove Partners
Western Canada + Mexico Road Shows
Disney Days - Australia + New Zealand
IPW Visit Anaheim booth + Club Anaheim client
event
Tourism Programs
223
Hospitality Career
Development
224
Cultivating a future workforce for our
industry and destination.

Garden Grove USD High Schools
• Los Amigos High School
• Santiago High School
• Garden Grove High School
• Bolsa Grande High School
• Rancho Alamitos High School
• La Quinta High School
• Hare High School

GARDEN GROVE CITY COUNCIL MEETING
225

GARDEN GROVE CITY COUNCIL MEETING
Visit Anaheim Staff Volunteer Program
226
Financial Information
227

GARDEN GROVE CITY COUNCIL MEETING
Garden Grove TID Budget
FY 2024-2025

VISIT ANAHEIM
Garden Grove TID Budget
2024 - 2025
MARKETING EXPENSE SUMMARY / $4.3M CONVENTION SALES EXPENSE SUMMARY / $5.9M Advertising Exhibition
Promotion Attend
Collateral Solicitation & Travel /Convention
Salaries & Related Costs Solicitation & Travel / Meetings Marketing Coordinator* (NEW) Salaries & Related Costs
Marketing Specialist* (NEW) Manager, Meeting Sales, Southwest* (NEW) Manager, Convention Sales & Business Dev.* (NEW)
Specialist, Site Manager* (NEW)
Total Marketing Expense @ 11% 481,000$ Total Convention Sales Expense @ 11% 660,000$ TOURISM EXPENSE SUMMARY / $2.8M DESTINATION SALES & SERVICES / $1.4M 157,000$ International Representation SPORTS DEVELOPMENT / $900K 100,000$ Sales Missions BUSINESS INTELLIGENCE / $700K 78,000$
Tradeshows, Programs Total Sales (Services, Sports & BI) Expense @ 11% 335,000$ Consumer Events
Salaries & Related Costs RESTRICTED FUNDS BUY-DOWN / $2,500,000 @ 11% 280,000$ Manager, Tourism Development* (NEW)
Total Tourism Sales Expense @ 11% 313,000$ *NEW HIRES PLANNED FOR 2024 Total Expenses for Sales & Marketing 2,069,000$
228
Marketing:
$566K - 28%
Communications:
$181K - 9%
Tourism: $242K - 12%
Convention Sales:
$566K - 28%
Destination Services &
Events: $106K - 5%
Business Intelligence: $68K - 4%
Operations: $271K - 14%

REVENUE

GARDEN GROVE CITY COUNCIL MEETING
GGTID Budgeted Revenue July 2025 – June 2026
$2,000,000

TOTAL EXPENSE
229

GARDEN GROVE CITY COUNCIL MEETING
Garden Grove TID Budget
2025-2026
MARKETING EXPENSE SUMMARY / $7.5M CONVENTION SALES EXPENSE SUMMARY / $7.5M Advertising Client Events
Promotion Client Subsidies
Collateral Convention Dues
Salaries & Related Costs Partnerships & Promo
Total Marketing Expense @ 8% 566,000$ Exhibition Attend
COMMUNICATIONS EXPENSE SUMMARY / $2.4M Solicitation & Travel-Convention Vendor Support Solicitation & Travel-Meetings
Media Relations Salaries & Related Costs
Social Media Relations Total Convention Sales Expense @ 8% 566,000$ Industry Relations
Salaries & Related Costs DESTINATION SERVICES & EVENTS / $1.4M Total Communications Expense @ 8% 181,000$ Attend & Dues Client Experience
TOURISM EXPENSE SUMMARY / $3.2M Promotions
International Representation Salaries & Related Costs
Sales Missions Total Destination Services & Events Expense @ 8% 106,000$ Tradeshows & Programs
Consumer Efforts BUSINESS INTELLIGENCE / $900K
Meetings & Conferences Research
Distribution & Fulfillment Salaries & Related Costs
Local Travel & Promotion Total Business Intelligence Expense @ 8% 68,000$ Trade Associations
Salaries & Related Costs OPERATIONS / $3.6M
Total Tourism Expense @ 8% 242,000$ Applicable administration expenses @ 8% 271,000$ Total Expenses 2,000,000$

VISIT ANAHEIM

GARDEN GROVE TID BUDGET
2025-2026
230

GARDEN GROVE CITY COUNCIL MEETING
Key Highlights 2024/25
• $2.5M Marketing Campaign
• Tradeshow Booth
• Shift of international funding to Domestic
• Meeting Momentum Program
• Confirmed Industry Events
231
Adjourn
232
Item 74/2026

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Samuel Kim
Dept:

City Manager Dept: Public Works
Date: 3/10/2026

Subject: Award a contract to Duffy General Engineering Inc., for the Lampson Avenue and Knott Street Storm Drain Improvements Project, City Project No. CP- 1414000. (Cost:$787,400)(Action Item)

OBJECTIVE

For City Council to award a contract to Duffy General Engineering Inc. , for the Lampson Avenue and Knott Street Storm Drain Improvements Project, City Project No. CP-1414000.

BACKGROUND

Lampson Storm Drain from Knott Street to Western Avenue drains a significant watershed.

The majority of the storm drain is constructed of reinforced concrete pipe (RCP); however, a 55 linear-foot segment located within the intersection of Knott Street and Lampson Avenue was constructed using two 48-inch diameter corrugated metal pipes (CMPs).

The existing CMPs have been in service more than 60 years. Due to their age, the bottoms of the pipes have corroded, weakening their structural integrity. This de terioration has resulted in the progressive collapse of the pipe walls by overlying pavement and vehicular traffic. The Public Works Department has repaired the sinking road surface several times, and in the process has identified an urgent need to replace the CMPs with RCP.

DISCUSSION

The project consists of offsetting a water main to provide the necessary clearance from the proposed storm drain, removing the corroded CMPs and replacing them with a single 48-inch diameter reinforced concrete pipe, resto ration of traffic striping, and installation of traffic loops.

Staff solicited bids for this project pursuant to Municipal Code Section 2.50.100. Two (2) qualified bids were received at the City Clerk's Office by 11:00 a.m. on February 25, 2026.

The lowes t qualified contractor was Duffy General Engineering Inc., with a total bid of $787,400. This bid amount is within the current project budget. The licenses and references 233
Item 74/2026

Page 2 of 2 ends

of the contractor have been reviewed and verified by staff, and all other documentation is in order.

The anticipated contract schedule is as follows:

Award contract - March 10, 2026
Begin construction (estimated) - April 20, 2026
Complete construction (estimated) - June 30, 2026

FINANCIAL IMPACT

The Lampson Avenue and Knott Street Storm Drain Improvements Project is included in the Fiscal Year 2026-27 adopted Capital Improvement Plan budget and is funded by Gas Tax SB1 funds. The timeline for this project was shifted forward to address emerging needs for storm drain repairs. Funding allocated for the FY26 -27 project budget will be appropriated during the current fiscal year to accommodate for these changes.

RECOMMENDATION

It is recommended that the City Council:

 Award a contract to Duffy General Engineering Inc., in the amount of $787,400 for the Lampson Avenue and Knott Street Storm Drain Improvements Project, City Project No. CP-1414000;
 Authorize the Finance Director, or designee, to appropriate a total of $787,400 from the Gas Tax SB1 fund (208); and
 Authorize the City Manager, or designee, to execute an agreement with Duffy General Engineering Inc. , and make minor modifications as appropriate thereto, on behalf of the City.

By: Nick Hsieh, P.E., Associate Engineer

ATTACHMENT(S)

1. Bid Summary

2. Agreement

234

ATTACHMENT 1

CITY OF GARDEN GROVE

PUBLIC WORKS DEPARTMENT

ENGINEERING DIVISION

BID SUMMARY SHEET

FOR

LAMPSON AVE AND KNOTT ST STORM DRAIN IMPROVEMENTS PROJECT CITY PROJECT NO. CP-1414000

BID OPENING: DATE: February 25, 2025 TIME: 11:00 A.M.

ENGINEER’S ESTIMATE: $ 799,400.00

Bidder’s Name Total Bid % Under/Over
Engrs. Est
Duffy General Engineering Inc., Menifee $787,400.00 1.5% Under Ramona, Inc., Baldwin Park $860,500.00 7.64% Over

235
-35-

C O N S T R U C T I O N A G R E E M E N T

DUFFY GENERAL ENGINEERING INC.

THIS AGREEMENT is made this 10th day of March, 2026 by the CITY OF GARDEN GROVE, a municipal corporation, ("CITY"), and Duffy General Engineering Inc. , hereinafter referred to as ("CONTRACTOR").

RECITALS:

The following recitals are a substantive part of this Agreement:

1. This Agreement is entered into pursuant to Garden Grove City Council Authorization dated March 10 , 2026.

2. CITY desires to utilize the se rvices of CONTRACTOR to furnish material, equipment, and labor for the LAMPSON AVENUE AND KNOTT STREET STORM DRAIN IMPROVEMENTS PROJECT, CITY PROJECT NO. CP - 1414000

3. CONTRACTOR is qualified by virtue of experience, training, e ducation, and expertise to accomplish services.

AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:

5.1 General Conditions. CONTRACTOR certifies and agrees that all the terms, condition s and obligations of the Contract Documents as hereinafter define d, the location of the job site, and the conditions under which the work is to be performe d have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR'S investigation of all such matters and is in no way relying upon any opinions or repr esentations of CITY. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents including the Notice Inviting Bids, Special Instructions to Bidders, if any, Plans, Specifications, and CONTRACTOR's Proposal, are inco rporated in this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its subcontractors, if any, wil l be and are bound by any and all of said Contract Documents insofar as they relate i n any part or in any way, directly or indirectly, to the work covered by this Contract.

"Project" as used herein defines the entire scope of the work covered by all the Contract Documents. Anything mentioned in the Specifications and not in dicated in the Plans, or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of discrepancy in the Plans or Specifications, the matter shall be immediately submitted to CITY’S Engineer, witho ut whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTR ACTOR'S own risk and expense. The decision of the Engineer shall be final.

236
SECTION 5 - AGREEMENT (Continued)
-36-

5.2 Materials and Labor. CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR'S own expense, all labo r and materials necessary, except such as are mentioned in the Specifications to be furnished by the CITY, to construct and complete the project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, CITY may settle such claims by making demand upon the surety to this Agreement. In the event of the failure or refusal of the surety to satisfy said claim s, CITY may settle them directl y and deduct the amount of payments from the Contract price and any amounts due to CONTRAC TOR. In the event CITY receives a stop notice from any laborer or material suppli er alleging non-payment by CONTRACTOR, CITY shall be entitled to deduct all of its costs a nd expenses incurred relating thereto, including but not limited to administrative and legal fees.

5.3 Project. The PROJECT is described as: L A M P S O N A V E N U E A N D K N O T T S T R E E T STORM DRAIN IMPROVEMENTS PROJECT, CITY PROJECT NO. CP - 1414000

5.4 Plans and Specifications. The work to be done is shown in a set of detailed Plans and Specifications entitled: LAMPSON AVENUE AND KNOTT STREET STORM DRAIN IMPROVEMENTS PROJECT, CITY PROJECT NO. CP - 1414000. Said Plans and Specifications and any revision, amendments or addenda thereto are attached hereto and incorporated herein as part of this Contract and referred to by reference. The work to be done must also be in accordance with the General Provisions, St andard Specifications and Standard Plans of the CITY, which are also incorporated her ein and referred to by, reference.

5.5 Time of Commencement and Completion. CONTRACTOR shall have ten (10) working days from the award of the Contract to execute the Contract and supply the CITY with all the documents and information required by the Instructions to B idders and the other Contract Documents, including but not limited to, the necessary bonds and insurance certificates and endorsements. Once the CITY receives the executed contract and all of the other properly drafted and executed documents and information, i t m a y i s s u e a N o t i c e t o Proceed to the CONTRACTOR. If CONTRACTOR refuses or fails to p rovide the required documents and information within the ten (10) city working days, the CITY may then rescind the award of the Contract and then award the Contract to the ne xt lowest responsive and responsible bidder.

The Contract time shall commence on April 20, 2026 per the Notice to Proceed issued by the City and the CONTRACTOR agrees to submit shop drawings within fourteen (14) calendar days. Further, upon receipt of the Notice to Proceed, the CONTRACTO R shall diligently prosecute the work within 40 (Forty) working days to completion as required per the plans and specifications excluding delays caused or authorized by the CITY as set forth in Sections 5.7, 5.8 and 5.9 hereof.

5.6 Time is of the Essence. Time is of the essence of this Contract.

Contractor shall have fourteen (14) calendar days f rom the award of the Contract t o execute the Contract and supply CITY with all of the documents and information required by the Instruction to Bidders and the other Contract Documents, including but not limited to, the necessary bonds and insurance certificates and endorsements. Once the CITY receives the executed Contract and all of the other properly drafted and exe cuted documents and information, it may issue a Notice to Proceed to the CONTRACTOR . If CONTRACTOR refuses or fails to execute the Contract or refuses or fails to provide the required documents and information within the fourteen (14) calendar days, the CIT Y may then rescind the 237
SECTION 5 - AGREEMENT (Continued)
-37-

award of the Contract and then award the Contract to the next l owest responsible and responsive bidder.

As required by the Contract Documents, CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples, and do all other thi ngs necessary and incidental to the prosecution of CONTRACTOR'S work in conformance with an approved construction progress schedule. CONTRACTOR shall coordinate the work covered by this Contract with that of all other CONTRACTORs, subcontractors and of the CITY, in a manner that will facilitate the efficient complet ion of the entire work in accor dance with Section 5.5 herein.

CITY shall have complete control of the premises on which the work is to be performed and shall have the right to decide the time or order in which the various portions of the work shall be installed or the priority of the work of other subcontractor s, and, in general, all matters representing the timely and orderly conduct of the work of CONTRACTOR on the premises.

5.7 Excusable Delays. CONTRACTOR shall be excused for any delay in the prosecution or completion of the Project caused by acts of God; inclement weat her; damages caused by fire or other casualty for which CONTRACTOR is not responsible; any act of negligence or default of CITY; failure of CITY to make timely payments to CONTRACTOR; late delivery of materials required by this CONTRACT to be furnished by CITY; co mbined action of the workers in no way caused by or resulting from default or collus ion on the part of CONTRACTOR; a lockout by CITY; or any other delays unforeseen by CONTRACTOR and beyond CONTRACTOR'S reasonable control.

CITY shall extend the time fixed in Section 5.5 herein for comp letion of the Project by the number of days CONTRACTOR has thus been delayed, provided that CONTRACTOR presents a written request to CITY for such time extension with in fifteen (15) days of the commencement of such delay and CITY finds that the delay is justified. CITY'S decision will be conclusive on the parties to this Contract. Failure to file such request within the time allowed shall be deemed a waiver of the claim by CONTRACTOR.

No claims by CONTRACTOR for additional compensation or damages for delays will be allowed unless CONTRACTOR satisfies CITY that such delays were unavoidable and not the result of any action or inaction of CONTRACTOR and that CON TRACTOR took all available measures to mitigate such damages. Extensions of time and extra compensation as a result of incurring undisclosed utilities would be determi ned in accordance with SPECIAL PROVISIONS and Section 7-4 of the Standard Specificatio n s f o r P u b l i c W o r k s Construction 2024 Edition (GREEN BOOK). The CITY’S decision wi ll be conclusive on all parties to this Contract.

5.8 Extra Work. The Contract price includes compensation for all work perform ed by CONTRACTOR, unless CONTRACTOR obtains a written change order si gned by a designated representative of CITY specifying the exact nature o f the extra work and the amount of extra compensation to be paid all as more particularl y set forth in Section 5.9 hereof.

CITY shall extend the time fixed in Section 5.5 for completion of the Project by the number of days reasonably required for CONTRACTOR to perform the extra work, as determined by CITY’S Engineer. The decision of the Engineer shall be final.

5.9 Changes in Project.

238
SECTION 5 - AGREEMENT (Continued)
-38-

5.9.1 CITY may at any time, without notice to any surety, by written order designated or indicated to be a change order, make any change in the work wit hin the general scope of the Contract, including but not limited to changes:
a. In the Specifications (including drawings and designs); b. In the time, method or manner of performance of the work; c. In the CITY -furnished facilities, equipment, materials, services or site; or d. Directing acceleration in the performance of the work.

If CONTRACTOR believes that the written order issued as part of this Section 5.9.1 has caused an increase in costs or time, the CONTRACTOR shall s ubmit a written request for equitable adjustment to the CITY that includes a detailed cost breakdown and time impact analysis in sufficient detail to allow the CITY to analyze the request.

Said notice shall be submitted via certified mail within twenty (20) days of the CONTRACTOR’S receipt of the written order. CONTRACTOR’S failur e to submit the written request for equitable adjustment within the required twenty (20) days shall constitute a waiver of any potential change order or claim for said alleged change.

The CITY shall review CONTRACTOR’S request and shall provide a written response within thirty (30) days of receipt of the request either approving or denying the request.

5.9.2 A change may also be any other conflict, difficulty or issue w hich the CONTRACTOR believes caused any change to the CONTRACTOR’S costs o r project schedule, provided CONTRACTOR gives the CITY written no tice and a request for equitable adjustment that includes a detailed cost breakdown and time impact analysis in sufficient detail to allow the CITY to analy ze the request. The notice shall also state the date the CONTRACTOR became aware of the issue, circumstances and source of the issue and that CONTRACTOR regar ds the issue as a change order. Said written notice shall be delivered to t he CITY via certified mail within twenty (20) days of CONTRACTOR’S first notice of th e issue.

CONTRACTOR’S failure to submit the notice, which includes the w ritten request for equitable adjustment within the required twenty (20) days s hall constitute a waiver of ant potential change order or claim for said alleged change. The CITY shall review CONTRACTOR’S request and shall provide a written r esponse within thirty (30) days of receipt of the request either approving or denying the request.

5.9.3 Except as provided in this Section 5.9, no order, statement o r conduct of the CITY or its representatives shall be treated as a change under this Section 5.9 or entitle CONTRACTOR to an equitable adjustment.

5.9.4 Except for claims based on defective specifications, no claim for any change under paragraph 5.9.1 or 5.9.2 above shall be allowed for any work performed more than 20 days before the CONTRACTOR gives written notice as required in paragraphs

5.9.1 and 5.9.2. In the case of defective specifications for w h i c h t h e C I T Y i s responsible, the equitable adjustment shall include any increas ed direct cost CONTRACTOR reasonably incurred in attempting to comply with tho se defective specifications.

5.9.5 If CONTRACTOR intends to assert a claim for an equitable adjus tment under this Section 5.9, it must, within thirty (30) days after receipt of a denial of a request for equitable adjustment under paragraphs 5.9.1 and 5.9.2, submit a written statement 239
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to the CITY setting forth the general nature and monetary exten t of such claim.

The CITY may extend the 30-day period. CONTRACTOR’S failure to submit the notice of a claim, within the required thirty (30) days shall constitute a waiver of the claim by the CONTRACTOR.

5.9.6 No claim by CONTRACTOR for an equitable adjustment shall be al lowed if made after final payment under this Agreement.

5.9.7 CONTRACTOR hereby agrees to make any and all changes, furnish the materials and perform the work that CITY ma y require without nullifying t his Contract.

CONTRACTOR shall adhere strictly to the Plans and Specification s unless a change there from is authorized in writing by the CITY. Under n o condition shall CONTRACTOR make any changes to the Project, either in additions o r deductions, without the written order of the CITY and the CITY shall not pay for any extra charges made by CONTRACTOR that have not been agreed upon in advance in writing by the CITY. CONTRACTOR shall submit immedi ately to the CITY written copies of its firm's cost or credit proposal for c hange in the work.

Disputed work shall be performed as ordered in writing by the CITY and the proper cost or credit breakdowns therefor shall be submitted without d elay by CONTRACTOR to CITY.

5.10 Liquidated Damages for Delay. The parties agree that if the total work called for under this Contract, in all parts and requirements, is not completed within the time specified in Section 5.5 herein, plus the allowance made for delays or exten sions authorized under Sections 5.7, 5.8 and 5.9 herein, the CITY will sustain damage which would be extremely difficult and impractical to ascertain. The parties therefor agree that CONTRACTOR will pay to CITY the sum of Two Thousand Dollars ($2,000.00) per day for each and every calendar day during which completion of the Project is so delay ed. CONTRACTOR agrees to pay such liquidated damages and further agrees that CITY may offset the amount of liquidated damages from any monies due or that may become due C ONTRACTOR under the Contract.

5.11 Contract Price and Method of Payment. CITY agrees to pay and the CONTRACTOR agrees to accept as full consideration for the faithful performance of this Contract, subject to any subsequent additions or deductions as provided in approved change orders, the sum of Seven Hundred Eighty Seven Thousand, Four Hundred Dollars and Zero Cents ($ 787,400.00) as itemized in the bid proposal.

Progress payments shall be made to the CONTRACTOR on a monthly basis for each successive month as the work progresses. The CONTRACTOR shall be paid such sum as will bring the total payments received since the commencement of the work up to ninety-five percent (95%) of the value of the work completed, less all previous payments, provided that the CONTRACTOR submits the request for payment prior to the end of the day required to meet the payment schedule. The CITY will retain five percent ( 5%) of the amount of each such progress estimate and material cost until 30 days after the recordation of the Notice of Completion.

Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the CITY’S Engineer, stating that th e work for which payment is demanded has been performed in accordance with the terms of the Contract. Partial payments of the Contract price shall not be considered as an acceptance of any part of the work.
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5.12 Substitution of Securities in Lieu of Retention of Funds. Pursuant to California Public Works Contract Code § 22300, the CONTRACTOR will be entitled to post approved securities with the CITY or an approved financial institution i n order to have the CITY release funds retained by the CITY to ensure performance of the Contract. CONTRACTOR shall be required to execute an addendum to this Contract together with escrow instructions and any other documents in order to effect this substitution.

5.13 Completion. Within 10 days after the contract completion date of the Proj ect, CONTRACTOR shall file with the CITY’S Engineer its affidavit st ating that all workers and persons employed, all firms supplying materials, and all subcon tractors upon the Project have been paid in full, and that there are no claims outstanding against the Project for either labor or material, except those certain items, if any, to be se t forth in an affidavit covering disputed claims, or items in connection with Stop Notices which have been filed under the provisions of the statutes of the State of California. CITY ma y require affidavits or certificates of payment and/or releases from any subcontractor, laborer or material supplier.

5.14 CONTRACTOR 's Employees Compensation

5.14.1 General Prevailing Rate. CITY has ascertained CONTRACTOR shall comply with all applicable requirements of Division 2, Part 7, Chapter 1 of the California Labor Code and all applicable federal requirements r especting the payment of prevailing wages. If there is a difference between t he minimum wage rates predetermined by the Secretary of Labor and the prevailin g wage rates determined by the Director of the Department of Industrial Rela tions (DIR) for similar classifications of labor, the CONTRACTOR and its Subcon tractors shall pay not less than the higher wage rate. The DIR will not accept lower State wage rates not specifically included in the Federal minimum wage det erminations. This includes "helper" (or other classifications based on hours of e xperience) or any other classification not appearing in the Federal Wage determin ations. Where Federal wage determinations do not contain the State wage rate determination otherwise available for use by the CONTRACTOR and Subcontractor s, the CONTRACTOR and its Subcontractors shall pay not less than the F ederal Minimum wage rate which most closely approximates the duties of the employees in question."

5.14.2 Forfeiture for Violation. CONTRACTOR shall, as a penalty to the CITY, forfeit one hundred dollars ($100.00) for each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or any subcontractor under it) less than the prevailing rate of per diem wages as set by the Direct or of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California.

5.14.3 Apprentices. Section 1777.5, 1777.6 and 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices is applicable to this Contract and the CONTRACTOR shall comply therewith; provided, h owever, that this requirement shall not apply if and/or to the extent that t he Contract of the general CONTRACTOR, or the contracts of specialty contractors n ot bidding for work through a general or prime contractor involve less than thirty thousand dollars ($30,000.00).
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5.14.4 Workday. In the performance of this Contract, not more than eight (8) hours shall constitute a day's work, and CONTRACTOR shall not r equire more than eight (8) hours of labor in a day from any person employed by him hereunder except as provided in paragraph (5.14.2) above. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Sections 1810 et seq.) of the Labor Code of the State of California and shall forfeit to the CITY as a penalty, the s um of twenty-five Dollars ($25.00) for each worker employed in the execution of t his Contract by CONTRACTOR or any subcontractor for each calendar day during wh ich any worker is required or permitted to labor more than eight (8) ho urs in any one calendar day and forty (40) hours in any one week in violation of said Article.

CONTRACTOR shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by CONTRACTOR in connection with the Project.

5.14.5 Record of Wages: Inspection. CONTRACTOR agrees to maintain accurate payroll records showing the name, address, social security number, work classification, straight-time and overtime hours worked each da y and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed by it in connection with the Project and agrees to require that each of its subcontractors does the same. The applicable CONTR ACTOR or subcontractor or its agent having authority over such matters shall certify all payroll records as accurate. CONTRACTOR further agrees that its payrol l records and those of its subcontractors shall be available to the employee or employee's representative, the Division of Labor Standards Enforcement, an d the Division of Apprenticeship Standards and shall comply with all of the provisions of Labor Code Section 1776, in general. CONTRACTOR shall comply with all of the provisions of Labor Code Section 1776, and shall submit payroll records to th e Labor Commissioner pursuant to Labor Code section 1771.4(a)(3). The CONTRACTOR shall submit copies of certified payroll reports and cancelled checks f or l a bo r s, every two weeks to the Engineer. Certified payroll and cancel led checks submittals are due one month after start of construction and ev ery two weeks thereafter. If the certified payroll and cancelle d checks are not submitted, the CONTRACTOR will be notified that compliance is required within five (5) working days or contract work must cease. The CITY will not be responsible for any delay or acceleration charges or any incurred costs or damages as a result of the work stoppage due to CONTRACTOR’s failure to comply. Work shall be ceased in an orderly, safe fashion with all vehicle access restored. Should this not occur, CITY will correct the deficiencies and deduct the cost from funds du e to the CONTRACTOR. In addition, no progress payment shall be made until the copies of certified payroll reports and cancelled checks are submitted.

5.14.6 Contractor Registration. CONTRACTOR and its subcontractors must be registered with the California Department of Industrial Relations pursuant to Labor Code Section 1725.5. This Agreement shall not be effective unti l CONTRACTOR provides proof of registration to the CITY.

5.14.7 Posting of Job Site Notices. CONTRACTOR shall comply with the job site notices posting requirements established by the Labor Commissioner pursuant to Title 8, California Code of Regulations Section 16461(e) or oth er regulation promulgated pursuant to Labor Code Section 1771.4(a) (2). 242
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5.14.8 Notice of DIR Compliance Monitoring and Enforcement. Pursuant to Labor Code Section 1771.4, this Project is subject to compliance moni toring and enforcement by the California Department of Industrial Relations.

5.15 Surety Bonds. CONTRACTOR shall, prior to entering into performance of this Agreement, furnish a performance bond, on the CITY's bond form in the amount of one hundred percent (100%) of the Contract price, to guarantee the faithful performance of the work, and a payment bond, on the CITY's form in the amount of o ne hundred percent (100%) of the Contract price, to guarantee payment of all claim s for labor and materials furnished. Bonds submitted on any form other than the CITY's f orm will be rejected. The required bonds shall be from a surety licensed to do business in the State of California and with a current A.M. Best's rating of A-, VII. This Contract sh all not become effective until such bonds are supplied and approved by the CITY."

5.16 Insurance.

5.16.1 COMMENCEMENT OF WORK. CONTRACTOR shall not commence work under this Agreement until all certificates and endorsemen ts have been received and approved by the CITY. All insurance required by t his Agreement shall contain a statement of obligation on the part of the carr ier to notify the city of any material change, cancellation, or termination at least thirty (30) days in advance. A waiver of subrogation shall be provided by the insurer for each policy waiving subrogation against CITY, its officers, officials, emp loyees, agents, and volunteers for this contract and all public agencie s from whom permits will be obtained and their directors, officers, agents, and employees, as determined by the CITY, Claims made and modified occurrence policies shall not be accepted for any policy. All Subcontractors shall be required to provi de and maintain the same insurances as required of CONTRACTOR unde r this contract. CONTRACTOR shall be required to collect and maintain all required insurances from all Subcontractors.

5.16.2 CONTRACTOR is aware of the provisions of Section 3700 of the La bor Code, which requires every employer to be insured against liability for Workers’ Compensation or undertake self-insurance in accordance with the provisions of that Code, and will comply with such provisions before commenci ng the performance of the work of this Contract.

5.16.3 CONTRACTOR and all Subcontractors shall carry workers' compensation insurance for the protection of its employees during the progress of the work. The insurer shall waive its rights of subrogation against the CITY, its officers, officials, employees, agents, and volunteers for this contract and all pub lic agencies from whom permits will be obtained and their directors, officers, ag ents, and employees, as determined by the CITY, and shall issue a waiver of subrogation.

5.16.4 Before CONTRACTOR performs any work at, or prepares or delivers materials to, the site of construction, CONTRACTOR shall furnish:

Additional Insured Endorsements, ongoing and products-completed operations, for the Commercial General Liability policy , including mobile equipment and not excluding XCU. Endorsements shall designate CITY, its officers, officials, employees, agents, and volunteers for this contract and all public agencies from whom permits will be obtained and their di rectors, officers, 243
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agents, and employees, as determined by the CITY, as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR. CONTRACTOR shall provide to CITY proof of insuranc e and endorsement forms that conform to CITY’s requirements, as appro ved by the CITY. ( Form CG 20 26 07 04 & Form CG 20 37 07 04 or equivalent) ( Claims made and modified occurrence policies are not acceptable; Insurance companies must be acceptable to CITY and have a minimum A.M. Be st Guide rating of A-, class VII or better, as approved by CITY).

An Additional Insured Endorsement for an Automobile Liability policy and shall designate CITY, its officers, officials, employees, agents, and volunteers for this contract and all public agencies from whom permits will be obta ined and their directors, officers, agents, and employees, as determined by th e CITY, as additional insureds for automobiles owned, leased, hired, or bo rrowed by the CONTRACTOR. CONTRACTOR shall provide to CITY proof of insuranc e and endorsement forms that conform to CITY’s requirements, as appro ved by the C I T Y . (Form CA 20 48 02 99 or equivalent) ( Claims made and modified occurrence policies are not acceptable; Insurance companies must be acceptable to CITY and have a minimum A.M. Best Guide rating of A-, class VII or better, as approved by CITY).

In the event any of CONTRACTOR’S underlying policies do not me et policy limits as required here in, CONTRACTOR shall provide the schedu le of underlying polices for a follows form excess liability p o l i c y , s t a t e t h a t t h e excess policy follows form on the insurance certificate, and an additional insured endorsement for the excess liability policy designating CITY, its officers, officials, employees, agents, and volunteers for this contract and all pub lic agencies from whom permits will be obtained and their directors, officers, ag ents, and employees, as determined by the CITY, as additional insureds. ( Claims made and modified occurrence policies are not acceptable; Insurance companies must be acceptable to CITY and have a minimum A.M. Best Guide r ating of A-, class VII or better, as approved by CITY).

For any claims related to this Project, the CONTRACTOR’s insura nce coverage shall be primary insurance as respects CITY, its officers, offi cials, employees, agents, and volunteers for this contract and all public agencie s from whom permits will be obtained and their directors, officers, agents, and employees, as determined by the CITY. Any insurance or self-insurance maintained by the CITY, its officers, officials, employees, agents, and volunteers for this contract and all public agencies from whom permits will be obtained and their di rectors, officers, agents, and employees, as determined by the CITY, shall be exce ss of the CONTRACTOR’s insurance and not contribute with it.

5.16.5 Before CONTRACTOR performs any work at, or prepares or delive rs materials to, the site of construction, CONTRACTOR shall furnish:

CONTRACTOR shall maintain all of the foregoing insurance cove rage in force until the work under this Contract is fully completed. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of CITY by CONTRACTOR under Section 5.17 of this Contract. Not withstanding nor diminishing the obligations of CONTRACTOR with respect to t he foregoing, CONTRACTOR shall subscribe for and maintain in full force and e ffect during the 244
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life of this Contract, the following insurance in amounts not less than the amounts specified and issued by a company admitted and licensed in California and having a Best's Guide Rating of A-Class VII or better (claims made and modified occurrence policies are not acceptable):

Workers’ Compensation As required by the State of
California.

Employer’s Liability

Not less than $1,000,000 per
accident for bodily injury or disease.

Commercial General Liability
(including on-going operations, products
- completed operations, and mobile
equipment, and not excluding XCU)

Not less than $5,000,000 per
occurrence for bodily injury,
personal injury and property
damage.

Automobile Liability, for all automobiles
including non-owned and hired vehicles
Not less than $2,000,000 combined
single limit for bodily injury and
property damage.

Follows Form Excess Liability

Required for any underlying policy
that does not meet the underlying
policy limits required herein.

If contractor maintains higher insurance limits than the minimu ms shown above, CONTRACTOR shall provide coverage for the higher limits otherwi se maintained by the CONTRACTOR.

CITY or its representatives shall at all times have the right to inspect and receive a certified copy of all said policies of insurance, including certificates and endorsements at CONTRACTORS sole cost and expense. CONTRACTOR shall pay the pr emiums on the insurance hereinabove required.

5.17 Risk and Indemnification. All work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone.

CONTRACTOR agrees to save, indemnify and keep the CITY, its Off icers, Agents, Employees, Engineers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their directors, Officers, Agents and Employees harmless against any and all liability, claims, judgments, costs and dem ands, including demands arising from injuries or death of persons (CONTRACTOR'S employe es included) and damage to property, arising directly or indirectly out of the o bligations herein undertaken or out of the operations conducted by CONTRACTOR, save and except claims or litigation arising through the sole negligence or sole willful misconduct of CITY and will make good to reimburse CITY for any expenditures, including reasonable attor neys' fees CITY may incur by reason of such matters, and if requested by CITY, will defen d any such suits at the sole cost and expense of CONTRACTOR.

5.18 Termination.

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This Contract may be terminated in whole or in part in writing b y t h e C I T Y i n t h e event of substantial failure by the CONTRACTOR to fulfill its o bligations under this Agreement, or it may be terminated by the CITY for its convenience in the manner provided for in subsections A and B below. If termination for default or convenience is effected by the CITY, an equitable adjustment in the price provided for in this Contract shall be made, but ( 1) no amount shall be allowed for anticipated profit on unperformed services or other work, and ( 2) any payment due to the CONTRACTOR at the time of termination may be adjusted to cover any additional costs to the CITY because of the CONTRACTOR'S default. Upon receipt of a termina tion action, the CONTRACTOR shall (1) promptly discontinue all affected work (unless the no tice directs otherwise), and (2) deliver or otherwise make available to the CITY all data, drawings, spe cifications, reports, estimates, summaries and such other information and materials as may have been accumulated by the CONTRACTOR in performing this Contract whether completed or in process. Upon termination, the CITY may take over the work and may award another party an agre ement to complete the work under this Contract.

A. Termination for Default.

If the CONTRACTOR refuses or fails to prosecute the work or any separable part thereof with such diligence as will ensure its completion withi n the time specified herein, or any authorized extension thereof, or fails to perform the work in a manner required by the Contract Documents and/or industry standards, or fails to complete such work within such time as required under the Contract Documents or, if the CONTRACTOR should be ad judged as bankrupt, or is otherwise deemed insolvent by CITY based on good cause and is u nable to proceed with the work, or if the CONTRACTOR should make a general assignment for the b enefit of creditors, or if a receiver should be appointed on account of insolvency, or if th e CONTRACTOR files a petition to take advantage of any debtor’s act, or should any subcontractor violate any of the provisions of the Contract Documents, or if the CONTRACTOR should persistently or repeatedly refuse or fail, except in cases for which an authorized extension of time is provided, to supply enough properly skilled workers or proper materials to complete the work in the time sp ecified, or if the CONTRACTOR should fail to make prompt payment to subcontractors for materi al or labor, or if the CONTRACTOR should persistently disregard laws, or instructions given by CITY, or if the CONTRACTOR otherwise substantially fails to fulfill its obligations under the Contract Documents, CITY may, without prejudice to any other right or remedy, serve written notice upon the CON TRACTOR and Sureties of CITY’s intention to terminate the CONTRACTOR’s performance under the c ontract. Said notice shall contain the reasons for such intention to terminate the CONTRAC TOR’s performance under the contract, and unless, within ten (10) days after the service of such notice, such violations cease and/or satisfactory arrangements for the corrections thereof ha ve been made, the CITY may terminate CONTRACTOR’s performance under the contract and the C ONTRACTOR shall not be entitled to receive any further payment until the work is completed.

In the event of any such termination, CITY shall serve written notice thereof upon the Surety and CONTRACTOR, and the Surety shall have the right to t ake over and perform the contract. However, if the Surety, within five (5) days after th e service of a notice of termination, does not give CITY written notice of its intention to take over and perform the contract, and if it serves such notice of its intent to take over and perform the contract and does not begin performance thereof within fifteen (15) days from the date of serving said notice, CITY may take over the work and prosecute the same to completion by contract or by any other method it may deem advisable for the account and at the expense of the CONTRACTOR, and the Suret ies and/or CONTRACTOR shall be liable to CITY for any excess cost or other damage inc urred by CITY thereby. If the Surety assumes the CONTRACTOR’s terminated work, it shall take the CON TRACTOR’s place in all respects for that part and shall be paid by CITY for all work p erformed by it in accordance with the terms of the Contract Documents. If the Surety assumes the enti re contract, all money due the 246
SECTION 5 - AGREEMENT (Continued)
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CONTRACTOR at the time of its default shall be payable to the S urety as the work progresses, subject to the terms of the contract.

CONTRACTOR hereby consents to assigning to CITY and/or CITY’s r eplacement contractor all subcontracts and other agreements of any and all subcontractors and/or suppliers that may be on the worksite and/or may be necessary to complete the work in the event of Termination for Default or Termination for Convenience, as set forth below. CONTRACTOR agrees to obtain, by way of a subcontract provision, the consent of each and every s ubcontractor and/or supplier for such assignment prior to the commencement of each such subcontractor’s and/or supplier’s work on the PROJECT.

In the event of such termination, the CONTRACTOR will be paid t he actual amount due based on unit prices or lump sums Bid and the quantity of w ork completed at the time of termination, less damages caused to CITY by acts of the CONTRAC TOR causing the termination, including but not limited to, all costs to CITY arising from pr ofessional services and attorneys' fees and all costs generated to insure or bond the work of substitut ed CONTRACTORS or subcontractors utilized to complete the work, such excess shall be paid to the CONTRACTOR. If such costs exceed the unpaid balance, the CONTRACTOR shall pay the difference to CITY promptly upon demand. On failure of the CONTRACTOR to pay, the Surety shall pay on demand by CITY. Any portion of such difference not paid by the CONTRACTOR or Surety within thirty (30) days following the mailing of a demand for such costs shall earn int erest at the maximum rate authorized by California law.

The CONTRACTOR and CITY agree that nothing in this section is i ntended to be or is a prevailing party clause as it pertains to attorney’s fees.

The foregoing provisions are in addition to and not in limitati on of any other rights or remedies under law or in equity available to CITY.

If it is later determined by CITY that the CONTRACTOR had an ex cusable reason for not performing, such as a fire, flood, or other event which was not the fault of or was beyond the control of the CONTRACTOR, CITY, after setting up a new perform ance schedule, may allow the CONTRACTOR to continue work, or treat the termination as a term ination for convenience, and the rights and obligations of the parties shall be the same as if t he termination had been issued for the convenience of CITY.

B. Termination for Convenience.

CITY may terminate the CONTRACTOR’s performance under the contr act, either in whole or in part, at its own discretion or when conditions enco untered during the work make it impossible or impracticable to proceed, or when CITY is prevent ed from proceeding with the contract by act of God, by law, or by official action of a publ ic authority, or upon a determination that such termination is in the best interest and convenience of CIT Y, or whenever CITY is prohibited from completing the work for any reason. CITY shall provide no less than ten (10) days written notice of its intent to terminate the Contract for convenience and shall provide the CONTRACTOR with consultation with CITY prior to termination.

1. Upon receipt of such written notice of termination, the CON TRACTOR shall:

a. Stop Work as specified in the written notice;

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b. Terminate all orders and Subcontractors except as necessary to complete Work which is not terminated;

c. If directed in writing by CITY to do so, assign all right, t itle and interest in subcontracts and materials in progress, in which ca se CITY will have the right at its discretion to settle, or pay an y or all claims arising out of the termination of such Subcontractors, b ut in no event shall recovery by any CONTRACTOR include lost profits for uncompleted portions of Work;

d. Deliver or otherwise make available to CITY all data, Drawin gs, Specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONTRACTOR in performing this Contract whether completed or in process;

e. Settle outstanding liabilities and claims with the approval of CITY;

f. Complete performance of such part of the work as has not bee n terminated; and

g. Take such other actions as may be necessary, or as may be directed by CITY for the protection and preservation of the Pro ject and/or property related to the contract.

2. Upon receipt of CITY’s written notice of termination for co nvenience, and within a period of 30 to 60 days, as determined by the Engi neer at the time of termination, the CONTRACTOR shall submit to the Engineer a Termination Proposal which shall include, but is not limited to, the CONTRACTOR’s estimated costs to be incurred by the CONTRACTOR as a result of the termination for convenience, and as allowed by the Contract Documents, including all documentation to support such costs; the status of the Work at time of terminati on; the status of termination of the CONTRACTOR’s subcontractor(s) and supplier(s) agreement(s) including the amount of each said agreement, amount paid under each agreement up to the date of termination, and the amount that currently remains due and owing under each agreement for work completed as of the date of termination, if any; a list, certified as to quantity and quality, of termination inve ntory not previously disposed of, excludi ng items authorized for disposit ion by the Engineer; and any other information and/or documentation as required by the CITY.

Upon receipt of the CITY’s written notice of termination for convenience, the CONTRACTOR shall submit to the Engineer a request for final payment, pursuant to the requirements set for th in the contract. Such request shall be submitted promptly, but no late r than sixty (60) days from the effective date of termination.

3. The final payment to the CONTRACTOR after termination for convenience shall be limited to amounts due and owing under the contract at time of termination, including the following:

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a. Any actual costs incurred by the CONTRACTOR for restocking charges;

b. The agreed upon price of protecting the work in any manner, if any, as directed by CITY;

c. The cost of settling and paying claims arising out of the te rmination of the work under subcontract agreements or orders with CITY’s approval, as specified above, exclusive of the of the amounts p aid or payable on account of goods delivered or work furnished by subcontractor prior to the effective date of the termination; and

d. The contract price allocable to the portion of the work prop erly performed or goods supplied by the CONTRACTOR as of the date of termination, as determined in accordance with the Contract Documents, reduced by any sum s previously paid to the
CONTRACTOR.

4. CITY shall have the right to withhold any portion or the wh ole of the final payment under this provision in the event there are any outstanding claims for compensation asserted by CITY against th e CONTRACTOR, or by any third party against CITY which arises out of the CONTRACTOR’s work.

5.18.1 This Contract may be terminated in whole or in part in writing by the CITY for its convenience, provided that the CONTRACTOR is given (1) not less than ten (10) calendar days written notice (delivered by certified mail, return receipt requested) of intent to terminate, and (2) an opportunity for c onsultation with the terminating party prior to termination.

5.18.2 If termination for default or convenience is effected by the C ITY, an equitable adjustment in the price provided for in this Contract shall be made, but (1) no amount shall be allowed for anticipated profit on unperformed s ervices or other work, and (2) any payment due to the CONTRACTOR at the time of termination may be adjusted to cover any additional costs to the CITY becau se of the CONTRACTOR'S default.

5.18.3 Upon receipt of a termination action under paragraph (5.18.1) or (5.18.2) above, the CONTRACTOR shall (1) promptly discontinue all affected work (unless the notice directs otherwise), and (2) deliver or otherwise make av ailable to the CITY all data, drawings, specifications, reports, estimates, summari es and such other information and materials as may have been accumulated by the C ONTRACTOR in performing this Contract whether completed or in process.

5.18.4 Upon termination under paragraphs (5.18.1) and (5.18.2) above, the CITY may take over the work and may award another party an agreement to complete the work under this Contract.

5.19 Warranty. The CONTRACTOR agrees to perform all work under this Contract i n accordance with the CITY’s designs, drawings and specifications. 249
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The CONTRACTOR guarantees for a period of one (1) year from th e date of the notice of completion of the work that the completed work is free from all defects due to faulty materials, equipment or workmanship and that he shall promptly make whatever adjustments or corrections which may be necessary to cure any defects, including repairs or any damage to other parts of the system resulting from such def ects. The CITY shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections or o ther work made necessary by such defects, the CITY may do so and charge the CO NTRACTOR the cost incurred. The performance bond shall remain in full force and effect through the guarantee period.

The CONTRACTOR'S obligations under this clause are in addition to the CONTRACTOR'S other express or implied assurances of this Contract or state law and in no way diminish any other rights that the CITY may have against the CONTRACTOR for faulty materials, equipment or work.

5.20 Attorneys' Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Contract, each shall bear its own attorneys' fees , costs and necessary disbursements. Notwithstanding the foregoing, if any action is brought against the CONTRACTOR or any subcontractor to enforce a Stop Notice or Notice to Withhold, which named the CITY as a party to said action, the CITY shall be entitled to reasonable attorneys' fees, costs and necessary disbursements arising out of the defe nse of such action by the CITY. The CITY shall be entitled to deduct its costs for any Stop Notice filed, whether court action is involved or not.

5.21 Notices. Any notice required or permitted under this Contract may be g iven by ordinary mail at the address set forth below. Any party whose address changes shall notify the other party in writing.

TO CITY: TO CONTRACTOR:

City of Garden Grove. Duffy General Engineering Inc.

Public Works Department Attention: Nick Duffy
Attention: Nick Hsieh 31544 Millcreek Dr.
11222 Acacia Parkway Menifee, CA 92584
Garden Grove, CA 92842 (951) 378-7334
(714) 741-5180
(714) 741-5578 Fax

[SIGNATURES ON NEXT PAGE]

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IN WITNESS THEREOF, these parties have executed this Construction Agreement on the day and year shown below.

Date: "CITY"

CITY OF GARDEN GROVE

B y :

Lisa L. Kim
City Manager
ATTEST:

City Clerk

Date:
"CONTRACTOR"

Duffy General Engineering Inc.

CONTRACTOR'S State License No. 1118574
(Expiration Date: 03/31/2028

CONTRACTOR'S DIR No.1001154440
Attached Copy of your DIR Certificate.

B y :

Title: Nick Duffy, Secretary

Date:

APPROVED AS TO FORM:

______________________________
Garden Grove City Attorney
If CONTRACTOR is a corporation, a Corporate
Resolution and/or Corporate Seal is required.

Date___________________________

251

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FAITHFUL PERFORMANCE BOND
Bond No.

Premium

NOTICE: TO WHOM IT MAY CONCERN: those we, ,
,
as Principal, and
as Surety, are held and firmly bound unto the City of Garden Grove, (CITY) in the sum of

Lawful money of the United States, for the payment of which we bind heirs, our executors, administrators, successors, and ourselves jointly and severally.

That the Surety's office is located at ,
telephone no. ; the Surety is licensed to do business in the State of California; and the California Insurance Agent's License No., address, and telephone no. are as follows:

License No.:

Address:

Telephone No.:

That the following clause must be completed if, in fact, a non -resident agent for the Surety is a party to the transaction:

Name of non-resident agent:

Non-resident agent's office address:

Telephone No.:

THE CONDITION OF THIS OBLIGATION IS SUCH, that:

1. The Principal has agreed entered into a contract attached he reto, dated the day of , 20 , with the CITY OF GARDEN GROVE for LAMPSON AVENUE AND KNOTT STREET STORM DRAIN IMPROVEMENTS PROJECT, CITY PROJECT NO. CP - 1414000.

2. If the Principal shall well and truly perform, or cause to b e performed, each and all of the requirements and obligations of the contract to be performed by the Principal, as set forth in the contract, then this bond shall be null and void; otherwise, it shall remain in full force and effect.

In the event that suit is instituted to recover on this bond, t he Surety will pay reasonable attorneys' fees.

3. Further, the Surety, for value received, hereby stipulates a nd agrees that no change, extension of time, alteration, or modification of the contract documents or of work performed shall in any way affect its obligation on this bond, and it does hereby waive notice of any change, extension of time, alteration, or modification of the contract documents, or of work to be performed. 252

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FAITHFUL PERFORMANCE BOND (Continues)

Executed this day of , 20___

Principal Principal

B y :

Surety

B y :

Attorney-in-Fact

California Resident Agent

B y :

Non-resident Agent - Attorney-in-Fact

STATE OF CALIFORNIA )
)
COUNTY OF ) ss.

On this day of , 20 , bef ore me, a Notary Public in and for said County, residing therein, duly commissioned and sworn, personally appeared known to me to be the Attorney-in-Fact of the , of (Corporation)
, and acknowledged that it executed the attached bond to the (State)
City of Garden Grove as such Attorney-in-Fact and as the free a ct and deed of the corporation, and that the bond was executed on behalf of the corporation by authority of its Board of Directors.

IN WITNESS WHEREOF, I have herewith set my hand and affixed my Official Seal, the day and year in this certificate first above written.

(Acknowledgment by Non-
resident Agent as Attorney-
in-Fact must be attached.)
Notary Public in and for said County and State
My Commission expires:
253

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LABOR AND MATERIAL BOND
Bond No.

Premium
NOTICE: TO WHOM IT MAY CONCERN: those we,
,
as Principal, and , as Surety,
are held and firmly bound unto the City of Garden Grove, California ("CITY") in the sum of ____ Dollars ($ ), lawful money of the United States, for the payment of the sum, we bind heirs, our executor s, administrators, successors, and ourselves jointly and severally.

That the Surety's office is located at ,
telephone no. ; the Surety is licensed to do busines s in the State of California; and the California Insurance Agent's License No., address, and telephone no. are as follows:

License No.:

Address:

Telephone No.:

That the following clause must be completed if, in fact, a non -resident agent for the Surety is a party to the transaction:

Name of non-resident agent:

Non-resident agent's office address:

Telephone No.:

THE CONDITION OF THIS OBLIGATION IS SUCH, that:

1. The Principal has entered into a contract attached hereto, d ated day of ________________, 20 , with the CITY OF GARDEN GROVE LAMPSON AVENUE AND KNOTT STREET STORM DRAIN IMPROVEMENTS PROJECT, CITY PROJECT NO. CP - 1414000.

2. If the Principal, its heirs, executors, administrators, succ essors, or assigns, or subcontractors, shall fail to pay for any materials, provisions, provender, or other supplies or teams, implements, or machinery used in, upon, for, or about, the performance of the improvement, or for any work or labor thereon of any kind, or for amounts due under the Unemployment Insurance Code with respect to work or labor, and provided that the claimant shall have complied with the provision of the code, the Surety or Sureties will pay for same in the amoun t not exceeding the sum specified in this bond; otherwise, the above obligation shall be void. In case suit is brought upon this bond, the Surety will pay reasonable attorneys' fees.

3. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or modification of the contract documents, or of wo rk performed, shall in any way affect its obligation on this bond, and it does hereby waive no tice of any change, extension of time, alteration, or modification of the contract documents, or of work to be performed. 254

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LABOR AND MATERIAL BOND (Continues)

4. This bond shall inure to the benefit of any and all persons, companies, and corporations entitled to the claims under Civil Code 3181 et seq., so as to give a ri ght of action to them or their assignees in any suit brought upon this bond.

Executed this day of , 20 .

Principal Principal

B y :

Surety

B y :

Attorney-in-Fact

California Resident Agent

B y :

Non-resident Agent - Attorney-in-Fact

STATE OF CALIFORNIA )
)
COUNTY OF ) ss.

On this day of , 20 , bef ore me, a Notary Public in and for said County and State, personally appeared
known to me to be the Attorney-in-Fact of
the , of (Corporation)
, and acknowledged that it executed the attached bond to the (State)
City of Garden Grove as such Attorney-in-Fact and as the free a ct and deed of the corporation, and that the bond was executed on behalf of the corporation by authority of its Board of Directors.

IN WITNESS WHEREOF, I have herewith set my hand and affixed my Official Seal, the day and year in this certificate first above written.

(Acknowledgment by Non-
resident Agent as Attorney-
in-Fact must be attached.)
Notary Public in and for said County and State
My Commission expires:
255

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ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION This Escrow Agreement is made and entered into by and between whose address is ,
hereinafter called "owner", ,
whose address is ,
hereinafter called "contractor", ,
and , whose address
is ,
hereinafter called "escrow agent."
For the consideration hereinafter set forth, the owner, contrac tor, and escrow agent agree as follows:
(1) Pursuant to Section 22300 of the Public Contract Code of th e State of California, the contractor has the option to deposit securities with the escrow agent as a substitute for retention earnings required to be withheld by the owner pursuant to the c onstruction contract entered into between the owner and contractor for in the amount of _ dated (hereafter referred to as the "contract"). Alternatively, on written request of the contractor, the owner shall make payments of the retention earnings directly to the escrow agent. When the contractor deposits the securities as a substitute for the contract earnings, the escrow agent shall notify the owner within ten days of the deposit. The market value of the securities at the time of the substitution shall be at least eq ual to the cash amount then required to be withheld as retention under the terms of the contract betwee n the owner and contractor.

S e c u r i t i e s s h a l l b e h e l d i n t h e n a m e o f t h e , and shall designate the contractor as the beneficial owner.
(2) The owner shall make progress payments to the contractor fo r those funds which otherwise would be withheld from progress payments pursuant to the contract provision, provided that the escrow agent holds securities in the form and amount specified above. (3) When the owner makes payment of retentions earned directly to the escrow agent, the escrow agent shall hold them for the benefit of the contrac tor until such time as the escrow created under this contract is terminated. The contractor may direct the investment of the payments into securities. All terms and conditions of this agreement an d the rights and responsibilities of the parties shall be equally applicable and binding when the owner pays the escrow agent directly. (4) The contractor shall be responsible for paying all fees for the expenses incurred by the escrow agent in administering the escrow account. These ex penses and payment terms shall be determined by the contractor and escrow agent.
(5) The interest earned on the securities or the money market a ccounts held in escrow and all interest on the interest shall be the sole account of c ontractor and shall be subject to withdrawal by contractor at any time and from time to time without notice to the owner. (6) The contractor shall have the right to withdraw all or any part of the principal in the escrow account only by written notice to the escrow agent accom panied by written authorization from the owner to the escrow agent that the owner consents to t he withdrawal of the amount sought to be withdrawn by contractor.
(7) The owner shall have a right to draw upon the securities in the event of default by the contractor. Upon two days' written notice to the escrow agent from the owner of the default, the 256

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escrow agent shall immediately convert the securities to cash a nd shall distribute the cash as instructed by the owner.
(8) Upon receipt of written notification from the owner certify ing that the contract is final and complete, and that the contractor has complied with all req uirements and procedures applicable to the contract, the escrow agent shall release to the contract or all securities and interest on deposit less escrow fees and charges of the escrow account. The escrow shall be closed immediately upon disbursement of all moneys and securities on deposit and payment of fees and charges. (9) The escrow agent shall rely on the written notifications fr om the owner and the contractor pursuant to Sections (1) to (8), inclusive, of this agreement and the owner and contractor shall hold the escrow agent harmless from the escrow agent's re lease, conversion, and disbursement of the securities and interest as set forth above. (10) The names of the persons who are authorized to give writte n notice or to receive written notice on behalf of the owner and on behalf of the cont ractor in connection with the foregoing, and exemplars of their respective signatures are as follows:

On behalf of the owner: On behalf of the contractor:

Title Title

Name Name

Signature Signature

Address Address

257

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On behalf of the escrow agent:

Title Title

Name Name

Signature Signature

Address Address

At the time the escrow account is opened, the owner and contrac tor shall deliver to the escrow agent a fully executed counterpart of this Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement by their proper officers on the date first set forth above.

Owner/Contractor Dated:

Title/Title

Approved as to Form
City Attorney
258

259
Item 82/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Lizabeth Vasquez
Dept:

City Manager Dept: City Clerk
Date: 3/10/2026

Subject: Second Reading and Adoption of Ordinance No. 2974 adding Chapter 6.50 to Title 6 of the Garden Grove Municipal Code restricting the sale and distribution of nitrous oxide products, entitled:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE ADDING CHAPTER 6.50 TO TITLE 6 OF THE GARDEN GROVE MUNICIPAL CODE RESTRICTING THE SALE AND DISTRIBUTION OF NITROUS OXIDE PRODUCTS.. (Action Item)

Attached for second reading is Ordinance No. 2974 recommended for adoption.

ATTACHMENT(S)

1. Ordinance No. 2974

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4905-1307-8160, v. 1
ORDINANCE NO. 2974

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE ADDING CHAPTER 6.50 TO TITLE 6 OF THE GARDEN GROVE MUNICIPAL CODE RESTRICTING

THE SALE AND DISTRIBUTION OF NITROUS OXIDE PRODUCTS

City Attorney Summary

This Ordinance enacts restrictions on the sale and distribution of nitrous oxide products. There will be specific exemptions to the nitrous oxide products restrictions such as when contained within a food product for use as a propellant or for use in medical or dental practices.

WHEREAS, California Constitution, Article XI, Section 7, authorizes the City of Garden Grove (“City”) to adopt and enforce local police, sanitary, and other ordinances and regulations that are not in conflict with general laws; and

WHEREAS, California Health & Safety Code section 101450 empowers the City Council to take measures necessary to preserve and protect public health, including adopting ordinances, regulations, and orders that are not in conflict with general laws; and

WHEREAS, California courts in Cohen v. Board of Supervisors, (1985) 40 Cal.3d 277, Bravo Vending v. City of Rancho Mirage, (1993) 16 Cal.App.4th 383, and Prime Gas v. City of Sacramento, (2010) 184 Cal.App.4th 697, have affirmed the power of local jurisdictions to regulate business activity to protect public health and safety and in order to discourage violations of law; and

WHEREAS, Nitrous Oxide is an odorless, colorless chemical that can be inhaled for legitimate purposes associated with medical or dental procedures in a clinical setting, and is legitimately used for industrial purposes and as a propellant for food products; and

WHEREAS, Nitrous Oxide is also subject to recreational misuse and abuse, in part, because it is easy to purchase from retail vendors and relatively inexpensive; and

WHEREAS, the recreational misuse and abuse of Nitrous Oxide can cause permanent vitamin deficiencies in the blood, and can cause long-term neurological effects, including paralysis and death; and

WHEREAS, the incidence of Nitrous Oxide recreational misuse and abuse has been on the rise both within Orange County and internationally over the past decade, with multiple medical studies noting significant increases in recreational misuse in the past five years, as well as a broader medical understanding of the long-term hematological and neurological impacts of Nitrous Oxide misuse and abuse; and

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WHEREAS, Nitrous Oxide recreational misuse and abuse has been associated with multiple traffic incidents and criminal incidents throughout Orange County in the past several years; and

WHEREAS, the City of Garden Grove does not currently regulate the sale of Nitrous Oxide and finds and declares that in the absence of local regulation, Nitrous Oxide remains subject to significant risk of misuse and abuse through sale to individuals who intend to misuse or abuse the product; and

WHEREAS, the City of Garden Grove desires to regulate the sale of Nitrous Oxide in order to preserve and protect public health and to dissuade sellers of Nitrous Oxide products from selling to individuals which they know or have reason to know intend to use the products for illegal purposes (i.e., recreational ingestion and/or inhalation); and

WHEREAS, the City Council is committed to safeguarding the health and well- being of its residents by ensuring that products available for sale do not pose undue health risks.

NOW, THEREFORE, The City Council of the City of Garden Grove hereby ordains as follows:

SECTION 1. The City Council finds that the above recitals are true and correct and incorporated herein by this reference.

SECTION 2. Chapter 6.50 is added to Title 6 of the Garden Grove Municipal Code to read as follows:

Chapter 6.50

Nitrous Oxide

§ 6.50.010 Authority and Purpose.

This article is enacted pursuant to the City’s police powers to protect the public safety, health and welfare. The express purpose of this article is to protect the public health and safety by eliminating retail access for recreational use of nitrous oxide, a dangerous gas that is illicitly used as an intoxicant.

§ 6.50.020 Definitions.

Words and phrases used in this chapter that are not specifically defined in this section shall be interpreted so as to give them the meaning they have in common usage and to give this chapter its most reasonable application. The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning.

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"Device" means any cartridge, compressed gas cylinder, apparatus, container, balloon, attachment, nozzle, or other object used to contain, dispense or administer nitrous oxide.

''Nitrous oxide" means the colorless nonflammable gas sometimes identified as N20, which is sometimes used in aerosols and sometimes used as an anesthetic, and which, when inhaled, produces loss of sensibility to pain, often preceded by exhilaration and laughter and often used as an anesthetic in dentistry. Nitrous oxide is often informally or colloquially referred to as "laughing gas," ''NOX," "galaxy gas," "whippits," amongst others.

"Person" means any individual or legal entity however constituted or organized.

"Wholesale capacity" means sale of or distribution of nitrous oxide or a device to dispense nitrous oxide to a person that will use nitrous oxide or the device in service or products for resale. Examples include, but are not limited to, commercial sale of dentistry supplies to dentists or dentistry offices, commercial sale of devices for the use in food production or in a commercial kitchen, and/or commercial sale of nitrous oxide for the purpose of producing food products for commercial sale (e.g., whipped cream canisters).

§ 6.50.030 Prohibition on Sale or Distribution of Nitrous Oxide.

Except as otherwise authorized by law or allowed under this chapter, it is unlawful for any person to sell, offer, distribute, display for sale, or otherwise provide to any person nitrous oxide, a device to dispense or administer nitrous oxide, or any device that contains any quantity of nitrous oxide.

§ 6.50.040 Exceptions to Prohibition.

This article does not apply to the sale, distribution, or other manner of providing nitrous oxide, or a device containing nitrous oxide, in the following circumstances:

A. If the nitrous oxide is labeled and marketed as food-grade and is contained within a food product for use as a propellant or preservative.

B. If the nitrous oxide or device is being sold, offered, or distributed in a wholesale capacity. This exemption only applies if the wholesaler does not know or have reason to know that the recipient intends to use the nitrous oxide or device in violation of section 6.50.030.

C. If the nitrous oxide or device is specifically designed, marketed, and safety- labeled for industrial use exclusively for automotive purposes, it must be utilized at a licensed automotive facility approved by the California Bureau of Automotive Repair.

D. If the nitrous oxide is being sold, offered or distributed specifically for the purpose of providing medical or dental care, by or at the direction and under 263
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the supervision of, a medical or dental practitioner licensed by the State of California and in accordance with all applicable rules and regulations.

E. If the nitrous oxide or device is being sold, offered, distributed, or dispensed by a pharmacist, pharmacist intern, or pharmacy as defined by California Business & Professions Code §§ 4030, 4036, and 4037, as maybe amended, in the course of their duties as a pharmacist or pharmacist intern, or wholesalers licensed by the Board of Pharmacy.

F. Or any other circumstances exempted under law.

Notwithstanding the foregoing, any sale or distribution of nitrous oxide, any device designed to dispense or administer nitrous oxide, or a device containing any quantity of nitrous oxide shall comply with all requirements of California Penal Code sections 381b through 381e.

§ 6.50.050 Violations and Penalties.

A. Misdemeanor. A violation of this chapter is a misdemeanor and shall be punished pursuant to Chapter 1.04 of this Code.

B. Administrative Citation. Any person violating any provision of this Section may be subject to an administrative citation pursuant to Chapter 1.22 of this Code.

C. Nonexclusive Remedies and Penalties. Punishment under this section shall not preclude any other remedies, penalties or procedures that the City may have to address violations of this chapter or as otherwise provided by law.

Violations of this Chapter are hereby declared to be public nuisances.

SECTION 3. Severability Clause. If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional.

SECTION 4. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause a certified copy of this Ordinance to be published or posted within fifteen (15) days after this Ordinance is passed and adopted, as required by law.

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

MAYOR

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Ordinance No. 2974

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ATTEST:

_______________________________

CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS:

CITY OF GARDEN GROVE )

I, LIZABETH VASQUEZ, City Clerk of the City of Garden Grove, do hereby certify that the foregoing Ordinance was introduced for first reading and passed to second reading on February 24, 2026 with a vote as follows:

AYES: COUNCIL MEMBERS: (7) NGUYEN, TRAN, DOVINH, MUÑETON

ARESTEGUI, BRIETIGAM, KLOPFENSTEIN
NOES: COUNCIL MEMBERS: (0) NONE
ABSENT: COUNCIL MEMBERS: (0) NONE

265

Garden Grove City CouncilMarch 10, 2026

Garden Grove City Council
March 10, 2026