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A•2018.253 <br />INSURAIVi:;I W)11'RECOUI[IF D <br />WCIiK C41r1Y PRtiCE ED OPERATING AGREEMENT FOR <br />CLERK OF COUNCIL <br />n'rr NOV 0 % 2016 CANNABIS TESTING FACtLITYILABORATORY <br />0 : V40) a <br />7 csq,cu p�rf' is Operating Agreement ("AGREEMENT") is dated epfi�2'6 201E between <br />the City of Santa Ana, a charter city and municipal corporation ("CITY") and Me4>l"1 <br />a 4&%k�� is ("OPERATOR"), collectively referred to as "the Parties". This <br />AGREEMENT s al� effective on the date that OPERATOR is issued a Regulatory <br />Safety Permit by CITY for the operation of a cannabis testing facility/laboratory business <br />conducting cannabis testing and/or laboratory services in whole or in part of its operations <br />transacted and carried -on by OPERATOR at the following subject property location, <br />`b I t t o � t Santa Ana, California Via, <br />1. Public Benefit. <br />A. Intent. The purpose of this Operating AGREEMENT is to collect fees for the <br />operation of a cannabis testing facility/laboratory and to provide fees for mitigation options to <br />be used by CITY to compensate for impacts to CITY services, residents, and/or businesses <br />as set forth in Santa Ana Municipal Code Chapter 40. The Parties agree that this <br />AGREEMENT confers substantial private benefits on OPERATOR which should be <br />balanced by commensurate public benefits. As part of the cannabis Regulatory Safety <br />Permit process, OPERATOR agrees to enter into this AGREEMENT. OPERATOR <br />acknowledges that CITY and OPERATOR have had extensive negotiations and <br />proceedings prior to entering into this AGREEMENT. OPERATOR has elected to execute <br />this AGREEMENT as it provides OPERATOR with important economic benefits. <br />Accordingly, the Parties intend to provide consideration to the public to balance the private <br />benefits conferred on OPERATOR by providing mitigation measures to the public and to pay <br />for CITY services as a result of the operating agreement fees collected. <br />B. Local Hiring and Sourcing. OPERATOR agrees to use its reasonable efforts to <br />hire qualified City of Santa Ana residents living in Santa Ana to work at its cannabis testing <br />facility/laboratory business. OPERATOR shall also use reasonable efforts to retain the <br />services of qualified contractors and suppliers who are located in the City of Santa Ana or <br />who employ a significant number of City of Santa Ana residents. OPERATOR shall make a <br />good faith effort to advertise on various social media sites, at local job fairs, and through <br />public agencies and organizations. <br />C. Community Benefit and Sustainable Business Practices Plan. OPERATOR <br />agrees to submit a Community Benefit and Sustainable Business Practices Plan ("Plan") to <br />CITY that is hereby attached and incorporated into this AGREEMENT as ("EXHIBIT A"). <br />Said Plan shall detail OPERATOR's experience working with community -based groups <br />such as school districts, college districts, city or county agencies, non-profit organizations, <br />artist or downtown groups. The Plan shall also include a description of OPERATOR's <br />efforts for recruiting and hiring local persons and businesses. Said Plan must also outline <br />commitments by OPERATOR to engage its staff in community service events or programs <br />in the City of Santa Ana. Plan must also outline and address sustainable business <br />practices. OPERATOR shall adequately document that it has met the Plan's obligations <br />1 <br />