I should clarify that of the required documents on the CFD application, there are two items that look similar but are not:
2) Any regulatory or business license, or licenses, required by local government.
5) A license granted by the duly constituted licensing authority of any city, county or city and county.
#2 says ANY and may not apply to everyone. In my city this is a "Business License". Mine was $30.
#5 says license and in my city is called a "Firearms license". This one is essentially required as indicated here:
http://oag.ca.gov/firearms/dlrfaqs#1G. I'm not sure what option 1 means "In the form prescribed by the Attorney General". But options 2 and 3 mean you have to get a letter that says "Valid for Retail Sales of Firearms" or a letter from similar authority that says no such license exists. I ended up with "option" 2 from my local police and was free.