HomeMy WebLinkAbout55D - RESO OPER COMM CANNABISREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
NOVEMBER 21, 2017
TITLE:
ADOPT A RESOLUTION TO AUTHORIZE
THE CITY MANAGER TO ISSUE LETTERS
OF OPERATIONAL STATUS FOR EXISTING
PERMITTED COMMERCIAL CANNABIS
BUSINESSES AND TO EXECUTE
OPERATING AGREEMENTS FOR
COMMERCIAL CANNABIS BUSINESSES
{STRATEGIC PLAN NO. 4,3)
T
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
❑ As Recommended
❑ As Amended
❑ Ordinance on 1s' Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Adopt a resolution authorizing the City Manager to issue letters of operational status for the
existing permitted commercial cannabis businesses operating in Santa Ana and to execute
operating agreements for existing and future commercial cannabis businesses.
DISCUSSION
Beginning January 1, 2018, the State of California will issue temporary commercial cannabis
operating licenses to existing, permitted commercial cannabis businesses operating legally in
local jurisdictions. It is our understanding that the State issued temporary permits will only be
valid for 120 days while the State processes applications in accordance with Prop 64. In order to
qualify for a temporary operating license, the commercial cannabis business must be able to
produce a letter of operational status issued by the local jurisdiction to indicate that the business
is permitted and operating in good standing. The proposed resolution authorizes the City
Manager to issue operational status letters for the permitted medical marijuana
collectives/cooperatives that are currently in operation to allow them to begin selling cannabis for
adult -use upon issuance of a temporary license from the State.
Pursuant to Chapter 40, all existing medical marijuana collectives/cooperatives that wish to sell
adult -use cannabis, as well as any new commercial cannabis business seeking to operate in
Santa Ana, must enter into an operating agreement with the City. The agreement will specify
terms for local hiring and sourcing, community benefits plans, and fees. The proposed resolution
also authorizes the City Manager to enter into these agreements for the medical marijuana
collectives/cooperatives so they may sell cannabis for adult use, as well as any new commercial
cannabis retail stores allowed pursuant to Chapter 40.
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Resolution to Authorize the City Manager to Issue Operational Status Letters and to Execute
Operating Agreements with Commercial Cannabis Businesses
November 21, 2017
Page 2
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #4 - City Financial Stability,
Objective #3 (achieve a structurally balanced budget with appropriate reserve levels).
FISCAL IMPACT
There is no fiscal impact associated with this action.
Candida Neal, AICP
Acting Executive Director
Planning & Building Agency
AP: rb
S:RFCA\2017\11-21-17\Commercial Cannabis CM Letter and Auth RFCA
Exhibit: 1. Resolution
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LS 11.21.17
RESOLUTION NO. 2017-xxx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA TO ACCEPT APPLICATIONS FOR
ADULT -USE CANNABIS RETAIL OPERATIONS AND
AUTHORIZING THE CITY MANAGER TO ISSUE
OPERATIONAL LETTERS TO THE STATE FOR ANY
APPLICANT THAT MEETS ALL CONDITIONS SET
FORTH HEREIN AND TO EXECUTE ADULT -USE
CANNABIS RETAILER OPERATING AGREEMENTS
WHEREAS, the City has adopted an ordinance to permit certain adult -use
cannabis retail uses in the City's M1 and M2 zones; and
WHEREAS, the State is developing a permitting process and intends to issue
temporary operating permits if a City deems an applicant to be operational; and
WHEREAS, the City has decided to permit adult -use cannabis retail uses at all
existing, legally operating medical cannabis collectives/cooperatives where such
operators are not in violation of any laws and have paid all fees and taxes.
WHEREAS, pursuant to Chapter 40 of the Santa Ana Municipal Code, all
existing medical marijuana collectives/cooperatives that wish to sell adult -use
cannabis, as well as any new Adult -Use cannabis retail business seeking to operate in
Santa Ana, must enter into an operating agreement with the City. The agreement will
specify terms and conditions including local hiring and sourcing, community benefit
plans, and fees.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA
DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares asfollows:
A. The City Manager is authorized, but not required, to accept applications
for adult -use cannabis retail operations in advance of the effective date
of the Ordinance.
B. The City Manager is authorized, but not required, to issue operational
letters to the State for any applicant who files an application for a permit
under the Ordinance so long as the applicant meets all of the following
conditions:
Resolution No. 2017-xxx
55D-3 Page 1 of 3
1. The applicant has been engaged in legal cannabis operations in
accordance with the Santa Ana Municipal Code in an M1 or M2
zone in the City by December 14, 2017.
2. The applicant has no outstanding violations of any Santa Ana
Municipal Code or State law.
3. The applicant has paid and is not delinquent in paying any City or
State fees or taxes.
4. The applicant has executed an Adult -Use Cannabis Retailer
Operating Agreement with the City.
C. The City Manager is hereby authorized to enter into and execute the
Adult -Use Cannabis Retailer Operating Agreement(s) for the existing
medical marijuana collectives/cooperatives that wish to sell Adult -Use
cannabis, as well as any new Adult -Use cannabis retail business in
accordance with Chapter 40.
Section 2. This Resolution shall take effect immediately upon its adoption by
the City Council and the Clerk of the Council shall attest to and certify the vote
adopting this Resolution.
ADOPTED this day of November, 2017.
APPROVED AS TO FORM:
By:C.1
Lisa Storck
Assistant City Attorney
AYES: Councilmembers:
NOES: Councilmembers:
ABSTAIN: Councilmembers:
NOT PRESENT: Councilmembers:
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Miguel A. Pulido
Mayor
Resolution No. 2017-xxx
Page 2 of 3
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2017-xxx to be the original resolution adopted by the City Council of the
City of Santa Ana on .2017.
Date:
Clerk of the Council
City of Santa Ana
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Resolution No. 2017-xxx
Page 3 of 3
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