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A-2017-380 <br />INSURANCE NC)-f REQUIRED <br />WORK MAY PROCEED <br />CLERK OF COUNCIL <br />nq"y*yr' JUN 2 5 2019 <br />OPERATING AGREEMENT FOR NON -MEDICINAL. <br />COMMERCIAL. CANNABIS BUSINESSES <br />This Operating Agreement ("AGREEMENT") is dated May 22, 2019, between the City of <br />Santa Ana, a charter city and municipal corporation ("CITY") and Kiki Greens DBA Protected <br />Transport Services ("OPERATOR"), collectively referred to as 'the Parties". This AGREEMENT <br />shall become effective on the date that OPERATOR is Issued a Regulatory Safety Permit by <br />CITY for the operation of a commercial cannabis business conducting distribution services in <br />whole or in part of its operations transacted and carried -tin by OPERATOR at the following <br />subject property location, 1430 E Saint Andrew PI, STE F, Santa Ana, CA 92705. <br />1. Public Benefit. <br />A. Intent. The purpose of this Operating AGREEMENT is to ensure positive <br />community impacts from commercial cannabis business operations through local hiring and <br />local sourcing, community' benefit and sustainable business practices, and the collection of <br />required fees and taxes as applicable for the operation of a commercial cannabis business <br />and to provide mitigation options to be used by CITY to compensate for impacts to CITY <br />services, residents, and/or businesses as set forth in Santa Ana Municipal Code Chapter 40. <br />The Parties agree that this AGREEMENT confers substantial private benefits on <br />OPERATOR which should be balanced by commensurate public benefits. As part of the <br />cannabis Regulatory Safety Permit process, OPERATOR agrees to enter into this <br />AGREEMENT. OPERATOR acknowledges that CITY and OPERATOR have had extensive <br />negotiations and proceedings prior to entering into this AGREEMENT. OPERATOR has <br />elected to execute this AGREEMENT as it provides OPERATOR with important economic <br />benefits, Accordingly, the Parties intend to provide consideration to the public to balance <br />the private benefits conferred on OPERATOR by providing mitigation measures to the public <br />and to pay for CITY services. <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 commercial <br />cannabis businesses. OPERATOR shall also use reasonable efforts to retain the services <br />of qualified contractors and suppliers who are located in the City of Santa Ana or who <br />employ a significant number of City of Santa Ana residents. OPERATOR shall make a good <br />faith effort to advertise on various social media sites, at local job fairs, and through public <br />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 C'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 />