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ORDINANCE NS-2735 AN EMERGENCY ORDINANCE OF THE CITY OF SANTA ANA EXTENDING THE TEMPORARY PROHIBITION ON THE CONSTRUCTION OR ESTABLISHMENT OF ANY NEW HOOKAH PARLOR THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of Santa Ana hereby finds, determines and declares as follows: A. Provisions of the General Plan of the City and Chapter 41 of the Santa Ana Municipal Code do not specifically identify hookah parlors as a land use or designate zoning districts throughout the City where hookah parlors may be permitted. B. For this reason, on February 21, 2006, at a regularly scheduled public meeting the City Council adopted Ordinance No. NS-2707, which established a moratorium on the construction or establishment of a hookah parlor (hereafter "the moratorium ordinance"). On April 3, 2006, the City Council adopted Ordinance No. NS-2709, which extended this moratorium 10 months and 15 day. C. Because of its age, current provisions of the Santa Ana Municipal Code fail to fully take into account the potential impacts associated with the establishment of hookah parlors and fail to address the needs of the City and its residents today and in the future. As such, provisions of the General Plan and the Santa Ana Municipal Code ("the Code") need review, study and possible revision in order to respond to recent concerns relating to the impacts of hookah parlors and the potential establishment of new hookah parlors in the City. D. Given these concerns, the City Council has requested, in adopting this moratorium, that further study be undertaken of the current provisions of the General Plan and Chapter 41 of the Code to classify hookah parlors and determine whether such businesses should be permitted in the City and if so, where, and under what conditions. During this study period, the City has adopted Ordinance No. NS-2729, which regulates the sale of retail tobacco; established an interagency task force to focus on this issue; and evaluated regulatory decisions adopted by other cities in Orange County, California, the United States and Canada. E. Without adoption of this ordinance, properties in the City would quickly receive entitlements to establish hookah parlors despite the fact that the city council has determined that the Code is in need of updating and has directed that a study be done to recommend new standards and revise the Code to address concerns created by hookah parlors. Ordinance No. NS-2735 Page 1 of 5