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9 (01)Some people who received this message don't often get email from tjames@cagrocers.com. Learn why this is important Date:3/3/2026 10:10:27 AM From:"Tim James" tjames@CAGrocers.com To: "Ashleigh Aitken" AAitken@anaheim.net, "Carlos A. Leon" CLeon@anaheim.net, "Ryan Balius" RBalius@anaheim.net, "Natalie Rubalcava" NRubalcava@anaheim.net, "Norma C. Kurtz" NKurtz@anaheim.net, "Kristen Maahs" KMaahs@anaheim.net, "Natalie Meeks" NMeeks@anaheim.net Cc:"City Clerk" cityclerk@anaheim.net, "Public Comment" publiccomment@anaheim.net Subject:[EXTERNAL] Self-checkout Regulation - 3/3 Agenda Attachment:Anaheim SCO LTR 3-3.pdf;CBA Analysis - Anaheim.pdf; Warning: This email originated from outside the City of Anaheim. Do not click links or open attachme nts unle ss you recognize the sender and are expecting the message. Mayor and Councilme mbe rs, Please acce pt the attache d letter and document re garding Se l f -che ckout re gul ati on on the 3/3 age nda. Re ach out w i th any que sti ons or f or additi onal i nformati on. Thank you for your considerati on. Ti m Ti mothy Jame s Di re ctor, Local Gove rnme nt and Enterprise Ri sk Cal i forni a Groce rs Association 916-448-3545 March 3, 2026 The Honorable Ashleigh Aitken Mayor, City of Anaheim 200 S Anaheim Boulevard Anaheim, CA 92805 RE: Self-checkout Requirements Dear Mayor Aitken, On behalf of the Anaheim grocery industry, I write with genuine concern with both the process and the policy of regulating self-checkout (SCO) for grocers in Anaheim. We are shocked the Council would consider moving forward with regulation of grocer s with no contact or discussion with grocers by the Mayor, Councilmembers or city staff. Deciding policy direction with no input from the businesses you intend to regulate should be considered irresponsible. I hope you agree that even if disagreements exist it is vital that all voices be recognized and heard before government acts. Real-world experience and data shows regulating SCO has no impact on the intended results claimed by advocates. SCO regulation to this point has only burdened its operation, both technically and legally, to the point of forcing its removal. This puts Anaheim brick-and-mortar grocers at a competitive disadvantage to more convenient options like neighboring grocers and on-line grocery options. Due to the lack of contact or discussion with Anaheim grocers and the significant impact of this policy to existing and future Anaheim grocers we ask the Council provide no direction to develop an ordinance until Anaheim grocers have been made fully aware and given the opportunity to share data and impacts regarding SCO regulation. Employee safety is grocer’s highest concern. This is why there are clear and strict company policies for employees to not engage when retail theft or similar situations arise. There are also multiple layers of state law that protects employees and requires grocers to regularly plan, prevent, train and implement safety plans for all threats in the workplace. Retail theft at SCO is minimal to non-existent in most grocery stores. The reality of retail theft is thieves simply walk the items out of the front door bypassing all checkouts. SCO stations are equipped with multiple layers of technology to prevent retail theft, which includes hiding or improperly scanning items. It is also important to recognize the passage of Proposition 36 along with partnerships between law enforcement and retailers has had significant impact on the amount of theft at grocery stores. The staff report includes a comparison of recent SCO regulations, but left out the most significant piece. In mid-2025 UFCW and its members ratified a new Collective Bargaining Agreement (CBA) across all of Southern California that regulates SCO (Attached). This agreement addresses the same points advocates of an ordinance seek to regulate. This begs the question of what is so unique or dangerous about the City of Anaheim from all other Southern California jurisdictions that UFCW demands significantly more SCO regulation here. Furthermore, it disrupts the value and purpose of an employee and employer agreement ratified in a CBA for a municipality to override its contents. If anything, Anaheim should be focused on supporting the contents of a CBA agreement, not erasing them. March 3, 2026 Mayor Ashleigh Aitken PAGE 2 Convenience has become one of the top decision points for where consumers purchase their groceries. Consumers are choosing in significant numbers grocery purchasing options that best fit their lifestyle – meaning most convenient. For brick-and-mortar grocers this means offering consumer demanded convenience to stay competitive. Data shows that 83% of consumers have used SCO in the last six months, Gen Z and Millennial consumers overwhelmingly prefer SCO and the number of total consumers who prefer SCO is rising at 5% a year. This data makes two important points – it is consumers who want and demand SCO and brick-and-mortar grocers needs SCO as a viable option to stay competitive. Any artificial barriers to Anaheim brick-and-mortar grocers offering SCO options negatively impacts that stores sustainability. The regulation of SCO at grocery is a layered and impactful issue. The Council has not received a clear or full view of SCO operation and regulation impacts, especially with no outreach to Anaheim grocers. The Council moving forward or making any level of commitment at this time is both unfair and unwise. We ask you refrain from pursuing SCO regulation at this time until critical data and real-world impacts are understood and the regulated business es have been engaged and provided a reasonable opportunity to be heard. We appreciate your consideration and look forward to discussing SCO further in partnership with Anaheim . Sincerely, Tim James Director, Local Government Relations California Grocers Association cc: Councilmembers, Anaheim City Council Self-Checkout UFCW CBA Analysis Provision UFCW Collective Bargaining Agreement (CBA) (effective July 2025) Staffing Ratio None Dedicated Employee Requirement Yes - may be assigned to perform incidental work in the general vicinity of that self-checkout bank or operate a full- service check stand to respond to a customer's request when no more than one customer is using that self-checkout bank. Staffed Lane Required Yes - During the hours of 8:00 am - 7:00 pm, if any self- checkout lane is available for use by customers, the Employer will schedule at least one (1) full-service checkout lane to be open and available for use by customers. Item Limit Yes - All stores with self-check will have signage that states that self-check should be limited to orders of about fifteen (15) items. Restricted Items at SCO None. State of CA already restricts sales of alcohol at SCO. Covered Establishments All grocers with Collective Bargaining Agreements Enforcement Mechanism Formal grievance process per CBA Penalties Penalties per CBA Right to Cure None – not needed Implementation Period July 2025 Public Signage None – not needed Anti-Retaliation Yes – Per Collective Bargaining Agreement State Preemption Clause Yes – State and Local allowance for CBA exemption from the law Source: UFCW Grocery Contracts 2025 Ratification Handout https://www.ufcw770.org/grocerycontracts