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Urgency Cannabis Testing Laboratories Ordinance and Ordinance Amendment No. 2018-01 — Allow Commercial Cannabis Testing Laboratories and Resolution to Modify Commercial Cannabis Application Fees March 20, 2018 Page 3 City Council Direction On February 20, 2018, staff presented the proposed ordinance amendments and fee resolution to the City Council. The City Council provided direction on the several items. These items have been addressed in the draft ordinance and/or this Request for Council Action (RFCA), with descriptions and addition information included below. 1. Areas allowed and sensitive land use buffers— Maintain 1,000 -foot buffers from residential land uses/zones in place on November 4, 2014 when Measure BB was adopted. The draft ordinance has been revised to reference residential land uses in place on November 4, 2014 when Measure BB was approved by Santa Ana voters (Exhibit 1). 2. Fee rate and consistency with neighboring jurisdictions — Ensure that the proposed gross receipts fees are fair and consistent with those of surrounding jurisdictions. The proposed gross receipts fee has been reduced from eight (8) to six (6) percent, making Santa Ana equal to or more competitive than other large jurisdictions in California, including Bellflower, Long Beach, Los Angeles, and Oakland (Exhibit 2). 3. Application process and consistency with neighboring jurisdictions — Revise application process to be efficient and not onerous for applicants; ensure process and application fees are consistent with those of surrounding jurisdictions. While legal statewide, cannabis is classified as a controlled substance at the federal level. The City's RSP process ensures the safe handling and operations of cannabis by those owning or operating commercial cannabis businesses in Santa Ana. Moreover, the City's commercial cannabis ordinance requires community involvement, community benefits, and sustainable business practices; the RSP process requires that operators and owners have clean records as a condition of operating a commercial cannabis business and engaging in the Santa Ana community. In addition, the draft ordinance has been revised to allow Phase 1 and Phase 2 applications to be submitted concurrently, saving approximately 60 days of processing time while still recuperating implementation and administration costs. A review of application fees found that Santa Ana's application processing fees are consistent with or below other Southern California jurisdictions that permit commercial cannabis activities. 4. Revenue allocations — Incorporate language in the RFCA to recommend that application and fee revenues be dedicated to administration (one-third), enforcement (one-third), and community services (one-third). 75B-3