A-038-2023(A) - Retail Sale by Delivery of Medicinal Cannabis

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

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

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

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

A-038-2023(A) - Retail Sale by Delivery of Medicinal Cannabis

The proposed amendment will allow the City of Garden Grove to be in compliance with the provisions of SB 1186. The proposed amendment will also include additional reasonable regulations intended to continue to protect the public health, safety and welfare of the community.

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

The following is a summary of the state regulations:

1. Deliveries of cannabis goods shall be performed by an employee who is at least 21 years old and is directly employed by a licensed retailer.
2. Deliveries of cannabis goods shall be made in person during specified hours of operation in which the delivery employee may not engage in any activities except for cannabis goods delivery and necessary rest, fuel, or vehicle repair stops.
3. Delivery employees shall return to the licensed premises if they have any unsold cannabis goods.
4. Delivery employees shall, carry a copy of the retailer's current license, a copy of the QR Code certificate issued by the Department of Cannabis Control, the employee's government-issued identification, and an identification badge provided by the employer.
5. Delivery employees shall confirm the identity and age of the delivery customer.
6. An unlicensed third party, intermediary business, broker, or any other business or entity, may not be used to sell cannabis goods to a customer. However, a technology platform may be used to facilitate the sale and delivery of cannabis goods, subject to specific restrictions.
7. Delivery employees may only deliver cannabis goods to a physical address in California.
8. Delivery employees shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency, to a K-12 school, day care center, or youth center.
9. A vehicle used in the delivery of cannabis goods shall not have any marking or other indications on the exterior that may indicate that cannabis goods are located within the vehicle and the cannabis goods shall not be visible to the public.
10. Cannabis goods shall be stored in a secure, fully enclosed trunk that cannot be accessed from inside the vehicle, or in a secured area or compartment within the interior of the vehicle.
11. Cannabis goods shall not be in an unattended motor vehicle unless the motor vehicle is locked and equipped with an active vehicle alarm system.
12. The vehicle shall be outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of the delivery vehicle and recording a history of all locations traveled.
13. Upon request, a licensed retailer shall provide the vehicle's make, model, color, Vehicle Identification Number, license plate number and Department of Motor Vehicles registration information.
14. Vehicles used to deliver cannabis goods may be stopped and inspected by the Department of Cannabis Control at any licensed premises or during delivery.
15. Delivery employees may only carry cannabis goods in the delivery vehicle with a value not to exceed $10,000 and for one licensed retailer only at any time.
16. Delivery employees may only carry cannabis goods in the delivery vehicle and may only perform deliveries for one licensed retailer at a time.
17. Before leaving the licensed premises, the delivery employee must have a delivery inventory ledger of all cannabis goods provided to the delivery employee.
18. The inventory log must include all stops, and the log must be turned in to the licensed retailer when the delivery employee returns to the licensed premises.
19. Prior to arrival at any delivery location, the licensed retailer must have received a delivery request from the customer and provided the delivery request receipt to the delivery employee electronically or in hard copy.
20. If a delivery employee does not have any delivery requests to be performed for a 30-minute period, the delivery employee shall return to the licensed premises. Upon returning to the licensed premises, all undelivered cannabis goods shall be returned to the licensed retailer's inventory and recorded.
21. Delivery employees shall not consume cannabis during deliveries.
22. While making deliveries of cannabis goods, a licensed retailer's delivery employee shall only travel from the retailer's licensed premises to the delivery address, from one delivery address to another delivery address, or from a delivery address back to the retailer's licensed premises.

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

• Delivery of medicinal cannabis is allowed to medicinal cannabis patients or their primary caregivers by a medicinal cannabis business from a fixed location outside of the City only.
• Medicinal cannabis businesses engaging in the retail sale by delivery of medicinal cannabis within the City shall be subject to the following requirements:
• Shall obtain and maintain a City of Garden Grove business tax certificate.
• Shall maintain an active M-license (medicinal license) issued by the State of California and all applicable permits and/or licenses required by the local jurisdiction in which the business is located.
• Shall comply with all applicable regulations of the California Department of Cannabis Control.
• Shall not deliver adult-use cannabis, cannabis accessories, and/or branded merchandise.
• Deliveries shall be performed by a delivery employee who is directly employed by the medicinal cannabis business.
• Shall maintain an accurate list of its delivery employees and shall provide the list to the City upon request.
• Delivery employees shall carry and immediately provide upon request by the City or any law enforcement officer the following:  a copy of the current business tax certificate, a copy of the license issued by the State Department of Cannabis Control, a copy of the QR Code certificate issued by the State Department of Cannabis Control, the employee's government issued identification, an identification badge, delivery inventory ledgers, all delivery receipts for cannabis goods carried in the delivery vehicle, or any deliveries that have already been made to customers, and a log of all stops from the time the employee left the employer's premises.
• Shall not carry cannabis goods value in excess of $5,000 in the delivery vehicle.
• Shall not deliver to a physical address that is not located on publicly owned land, on land or in a building leased by a public agency, a school providing instruction in kindergarten or any grades one through twelve, a day care center, or youth center.
• Shall only deliver to individuals who are at least 18 years of age and possesses a valid physician's recommendation and identification.
• Shall maintain a list of all vehicles, including vehicles' make, model, year, color, license plate number, vehicle identification number (VIN) and Department of Motor Vehicles registration information, along with proof of current automobile liability insurance.
• Shall utilize delivery vehicles that are unmarked.
• Shall deliver using a vehicle that is outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of the delivery vehicle and recording a history of all locations traveled to by the delivery employee.

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

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

General Requirements

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

General Development Standards

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

In requiring a maximum 50% hardscape in the front yard setback, the Municipal Code exempts driveway parking from that requirement, as said parking is required in other sections of the Code.  With the proposed Amendment, the language will now specify that driveways required for exterior parking, and the respective sizes for each driveway, are exempt from the maximum front yard hardscape requirements.  Until the proposed Amendment, the Municipal Code has not specified the required driveway area, in terms of square feet, that can be exempted from the maximum hardscape percentage.  The driveway area that can be exempted is the same size of garage that the driveway is intended to lead to.  The revised language also identifies that only those driveways that lead to a garage, or a legally converted garage, can be exempted from the maximum hardscape requirements.  For multiple-family developments, where there is often a shared drive aisle, the front yard hardscape percentage is limited to a maximum of 50%, exclusive of any driveway or walkway necessary to access the site.  Chapter 9.12 (Multifamily Development Standards) will therefore not make any exceptions for driveway parking.  This is consistent with the typical pattern of multifamily developments with a shared driveway, and no driveway parking.

Landscaping- General Provisions

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

Landscaping Requirements

In an effort to keep landscape maintenance costs to a minimum, more property owners are installing artificial turf.  The Municipal Code allows artificial turf, as it is similar in appearance to live grass.  Code Enforcement has encountered numerous artificial turf installations that do not abide by manufactures’ specifications.  Incorrectly installed turf can pose a hazard, and can also prevent proper drainage during rainstorms.  Incorrectly installed, and poorly maintained, artificial turf also does not mimic the appearance of live grass, counter to the intent of the Municipal Code. Currently, the use of artificial turf as a substitute landscaping material is implemented with similar regulations across all zones.  Any changes to the requirements for artificial turf will need to be revised across all residential, commercial, industrial, and mixed-use zones.  Therefore, the proposed amendments would amend Section 9.08.040.060 (Landscaping Requirements) of Chapter 9.08 (Single-Family Residential Development Standards), Section 9.12.040.090 (Landscaping Requirements) of Chapter 9.12 (Multifamily Residential Development Standards), Section 9.16.040.070 (Landscaping Requirements) of Chapter 9.16 (Commercial, Office Professional, Industrial, and Open Space Development Standards), and Section 9.18.120.030 (Landscaping Requirements) of Chapter 9.18 (Mixed Use Regulations and Development Standards). The proposed Amendment to the language of the artificial turf regulations will add language to guide the installation of artificial turf.  Specifically, the proposed modification to the artificial turf requirements clarify what type of turf is required, how it shall be installed, what type of base layer is required, and guide the proper maintenance of said turf.  If adhered to, the proposed language can help ensure artificial turf is installed safely, and that its appearance is long-lasting.

Environmental Review

A-038-2023(A) - Retail Sale by Delivery of Medicinal Cannabis

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

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

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

It is recommended that the City Council:

• Conduct a Public Hearing;

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

• Introduce and conduct the first reading of an Ordinance approving Amendment No. A-038-2023(B), a zoning text amendment to update portions of Chapters 9.08, 9.12, 9.16, and 9.18 (Single-Family Residential Development Standards, Multifamily Residential Development Standards, Commercial, Office Professional, Industrial, and Open Space Development Standards, and Mixed Use Regulations and Development Standards, respectively) of Title 9 of the City of Garden Grove Municipal Code to specify standards for the screening of mechanical equipment within an exterior equipment enclosure in residential zones; to clarify how the maximum permitted hardscape coverage in the front yard setback in residential, commercial, industrial, and open space zones is calculated; and to update the standards for artificial turf in all zones.

By:    Mary Martinez, Urban Planner; and

By:    Priit Kaskla, AICP, Associate Planner