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75C. CONTINUED PUBLIC HEARING — ADOPT ORDINANCE AMENDMENT NO. <br />2018-02 TO AMEND CERTAIN SECTIONS OF CHAPTERS 8, 18, AND 40 OF <br />THE SANTA ANA MUNICIPAL CODE (COMMERCIAL CANNABIS) TO ALLOW <br />COMMERCIAL CANNABIS CULTIVATION, MANUFACTURING, AND <br />DISTRIBUTION ACTIVITIES AND TO AMEND CERTAIN CODE <br />ENFORCEMENT PROCEDURES RELATING TO UTILITY SHUTOFFS <br />{STRATEGIC PLAN NOS. 3, 2; 3, 3; 3, 5; 4, 31 - Planning and Building Agency <br />Legal Notice published in the Orange County Reporter on March 23, 2018. <br />Continued from the April 3, 2018 by a vote of 7-0. <br />Mayor Pro Tem Martinez opened the Hearing. <br />The following spoke on the matter: <br />• Jason Lilly, owner of Kannabis Works, expressed support to approve <br />ordinance and opening of licenses. Opined fees should not only be equitable <br />to bring in revenue, but also serve the community at a reasonable rate, and <br />need to find way to address black market. <br />• Melahaf Rafiei, opined City Council's leadership and vision allowed City of <br />Santa Ana to move forward in commercializing cannabis cultivation, <br />manufacturing, and distribution; and will only make the industry stronger and <br />help the city generate revenue. <br />• Claudio Gallegos, representative for Congressman Lou Correa, expressed <br />support for approval of Cannabis cultivation ordinance, commended City <br />Council dedication to making Santa Ana a leader in the cannabis industry <br />and bringing good businesses to the City. <br />The Hearing closed. <br />Council discussion ensued. <br />Councilmember Benavides, expressed concern that fees may be excessive <br />compared to other cities and asked staff to clarify operational fees and how they <br />make the City of Santa Ana competitive. <br />Councilmember Solorio, expressed support of fees for enforcement, <br />administrative, and youth programs. Opined need for stronger language <br />regarding the type of labor agreements, local hire and sourcing programs, and <br />need to give priority to existing dispensaries. Request staff perform a one-year <br />review to see current number of licenses and revenue generated. Expressed <br />concern possibility of triple taxing businesses. <br />Mayor Pro Tem Martinez noted code enforcement are the ones that shut down <br />illegal operations, need to dedicate three code enforcement staff to this effort, <br />and current state tax on industry at 21 %. <br />CITY COUNCIL MINUTES 14 APRIL 17, 2018 <br />1 OA -14 <br />