Fountain Valley council debates possible rule on cashless retail after Newport Beach example

Director Smith told the council the Newport Beach mailing prompted a review of a possible local ordinance and noted the city has "about 2,750 businesses, brick and mortar businesses" that could be affected. Smith said staff does not know how many Fountain Valley businesses refuse cash and recommended a broader survey of the business community before moving forward.

Councilmembers gave mixed reactions. Councilmember Harper said she did not want the city to take on unnecessary regulation and compared the idea to prior short-term rental problems, warning that ordinances can produce unintended consequences. "This is really, to me, a non issue as far as crafting and creating an ordinance," she said, urging caution.

Other councilmembers said they favored protecting access to cash for customers and keeping businesses "business friendly." One councilmember said she liked Newport Beach's approach and would "like for us to adopt it," while others said the city should first survey local businesses and consider exceptions (for counterfeit risk or high-value transactions). Mayor Ted Buie and Vice Mayor Keneen signaled they were not ready to adopt an ordinance at this time.

Staff framed the next step as advisory: if council wants to proceed, staff will return with a draft ordinance and a recommendation for a public hearing. The council did not take a vote to place an ordinance on a future agenda and instead left direction to staff unresolved, asking for more information and outreach to local merchants.