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Pi;"dJi IF1"Ji;; ' iwi)T REtlllIREO <br />4irC%RK 10JAY pinocEr i I <br />CLERK �K OF COUNCIL <br />DEC X01 <br />OPERATING AGREEMENT FOR <br />CANNABIS TESTING FACILITY/LABORATORY <br />A-2018.278 <br />50tGtti <br />This Operating Agreement ("AGREEMENT") is dated I 1 /Z l 120115 between <br />the City of Santa Ana, a charter city and municipal corporation ("CITY") and Q& /-,6,;, b6A c,_,1 5,$ <br />a ("OPERATOR"), collectively referred to as "the Parties". This <br />AGREEMENT shall become effective on the date that OPERATOR is issued a Regulatory <br />Safety Permit by CITY for the operation of a cannabis testing facility/laboratory business <br />conducting cannabis testing and/or laboratory services in whole or in part of its operations <br />transacted and carried -on by OPERATOR at the following subject property location, <br />loot C�rk4q« /4� Santa Ana, California -mS- <br />Public Benefit. <br />A. Intent. The purpose of this Operating AGREEMENT is to collect fees for the <br />operation of a cannabis testing facility/laboratory and to provide fees for mitigation options to <br />be used by CITY to compensate for impacts to CITY services, residents, and/or businesses <br />as set forth in Santa Ana Municipal Code Chapter 40. The Parties agree that this <br />AGREEMENT confers substantial private benefits on OPERATOR which should be <br />balanced by commensurate public benefits. As part of the cannabis Regulatory Safety <br />Permit process, OPERATOR agrees to enter 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 as a result of the operating agreement fees collected. <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 cannabis testing <br />facility/laboratory business. OPERATOR shall also use reasonable efforts to retain the <br />services of qualified contractors and suppliers who are located in the City of Santa Ana or <br />who employ a significant number of City of Santa Ana residents. OPERATOR shall make a <br />good faith effort to advertise on various social media sites, at local job fairs, and through <br />public 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 ("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 />and commitments as a condition of renewattextension of this AGREEMENT upon expiration <br />of the initial term and any extensions. <br />Operating Fee Rates for Cannabis Testing Facilities/Laboratories; Payment, <br />