Item Coversheet

Agenda Item - 3.a.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:Scott C. Stiles

From:Kingsley Okereke
Dept.:City Manager 

Dept.: Finance 
Subject:For City Council to consider an appeal of a denial for a Firework Stand Permit. (Action Item)Date:6/12/2018

OBJECTIVE

For the City Council to consider the appeal of a denial of a Firework Stand Permit for CDA Slammers FC.

BACKGROUND

Firework Stand Permit applications are reviewed to determine if the applicant(s) are eligible organizations, per Garden Grove Municipal Code section 5.28.020(B).

 

Garden Grove Municipal Code section 5.28.020(B) states:

 

B.     Only federally certified non-profit tax exempt organizations located within the City limits and primarily benefiting the Garden Grove community are eligible to receive temporary fireworks stand permits. Applicants for temporary fireworks stands shall provide to the City documentation that establishes, to the reasonable satisfaction of the City, compliance with these requirements.

DISCUSSION

On May 21st, the City of Garden Grove received a Firework Stand Permit application from CDA Slammers FC. Upon review of the required documents, the City initially noted that their IRS 501(c)(3) charitable organization Determination Letter issued by the Internal Revenue Service (IRS) displays a Cerritos, CA address. A confirmation search on the IRS’s website also displays the organization as having a Cerritos, CA address. The organization does not have a physical headquarters or location in Garden Grove.  They were determined to not be located within the City limits, one of the eligibility requirements.

 

Additional research and review of CDA Slammers FC’s website does not display Garden Grove as one of the cities they service with organized teams (Refer to attached document).  The cities listed on their website are Cerritos, Diamond Bar, Fullerton, Huntington Beach, Orange, South Bay, and Whittier.  The organization does not provide a Garden Grove based program. Further research indicates that the specific applicant, Isaac Santos, is one of the 27 coaches for the Huntington Beach program. He does reside in Garden Grove.

 

A list of fields on their website for all the other cities they service, including the Huntington Beach teams, does not show a Garden Grove field.

 

An additional part of a Firework Stand permit application requires an applicant to state how the organization benefits the Garden Grove Community. The organization's statement states: ‘There are multiple families that live in Garden Grove area and most of them are not able to afford to travel outside the United States. This will give a player the opportunity of a lifetime.’ (Refer to attachment).  This statement does not show evidence of their organization primarily benefitting the Garden Grove community. 

 

The Firework Stand Permit application also requires the applicant to list three methods of how funds raised by the retail sales of fireworks will be used. They listed: 1) Airfare outside of the US for 18 players and 2 coaches 2) Hotel accommodations outside the US for 18 players and 2 coaches 3) Travel Expenses. The three methods they listed do not show that their intent is to put the funds raised back into the program by using them for items that primarily benefit the Garden Grove Community, such as uniforms, equipment, and supplies.

 

Additional information provided on their Appeal Hearing Request form states how CDA Slammers FC ‘represents multiple cities in Orange County’. It goes on to state ‘players and families are from all over Orange County’ and that they have ‘… over 100+ boys and girls teams’ (Refer to attachment).  While 12 of the 19 players for one of their 100 teams reside in Garden Grove, this does not make it a Garden Grove based organization primarily benefitting the Garden Grove community.

 

Based on the fact that CDA Slammers FC is not located in Garden Grove, they do not run a team based in Garden Grove, their list of teams benefit other cities besides Garden Grove, and the stated use for the funds they could raise would not go back into primarily benefitting the Garden Grove community, it was determined they did not meet the eligibility requirements as per Garden Grove Municipal Code section 5.28.020(B).

FINANCIAL IMPACT

None.
RECOMMENDATION

It is recommended that the City Council:

 

  • Deny CDA Slammers FC’s appeal for a Firework Stand Permit.

 

 

By:  Corinne Hoffman, Business Tax Supervisor




ATTACHMENTS:
DescriptionUpload DateTypeFile Name
CDA Slammer's Website with list of cities6/4/2018Backup MaterialCDA_SLAMMERS_WEBSITE_HOME_PAGE_W_LIST_OF_CITIES.pdf
CDA Slammers Fireworks Stand Permit App7/25/2018Cover Memo6-12-18_CDA_SLAMMERS_FIREWORK_STAND_PERMIT_APPLICATION_Redacted.pdf
CDA Slammer's Appeal form6/4/2018Backup MaterialCDA_SLAMMERS_APPEAL_FORM.pdf
DENIAL EMAIL6/4/2018Backup MaterialCDA_SLAMMERS_DENIAL_EMAIL.pdf