Rancho Palos Verdes City Council
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TO:

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: CITY MANAGER AND CITY ATTORNEY

DATE: NOVEMBER 5, 2002

SUBJECT: ORDINANCE AMENDING REGULATIONS APPLICABLE TO THE ISSUANCE OF BUSINESS PERMITS AND THE REGULATION OF MASSAGE ESTABLISHMENTS AND MASSAGE TECHNICIANS OPERATING IN THE CITY AND APPROVING A RESOLUTION AND AN AGREEMENT WITH THE COUNTY OF LOS ANGELES TO PERFORM INSPECTIONS AND ADMINISTER EXAMINATIONS ON BEHALF OF THE CITY

RECOMMENDATION

  1. Introduce Ordinance No. ___ OF THE CITY OF RANCHO PALOS VERDES AMENDING TITLE 5 OF THE RANCHO PALOS VERDES MUNICIPAL CODE BY AMENDING REGULATIONS GOVERNING MASSAGE ESTABLISHMENTS AND MASSAGE TECHNICIANS.
  2. Adopt Resolution No. ___, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DELEGATING THE ADMINISTRATION AND ISSUANCE OF BUSINESS AND REGULATORY PERMITS FOR PROSPECTIVE MASSAGE ESTABLISHMENTS AND MASSAGE TECHNICIANS WITHIN THE CITY LIMITS TO THE COUNTY OF LOS ANGELES.
  3. Approve the proposed Agreement with the County of Los Angeles to authorize the County Department of Health Services to inspect Massage Establishments and Administer Examinations of Prospective Massage Technicians on Behalf of the City.
  4. Authorize Staff to publish Notices of Public Hearing for November 19th Council meeting to adopt a fee schedule to recover costs of County Health Services.

ANALYSIS

On February 19, 2002, the City Council adopted Ordinance No. 373, adopting by reference the Los Angeles County Code provisions governing massage establishments and massage technicians, as amended (the "Ordinance"). The Ordinance became effective March 21, 2002, and establishes a comprehensive regulatory scheme to license massage establishments and massage technicians within the City’s borders. Among other things, the Ordinance sets minimum requirements for all massage facilities, including existing massage establishments, and requires a license for all massage establishments and all massage technicians providing massage services within the City. After adoption of the Ordinance, City staff noted the following concerns: (i) the language regarding the breadth of the exemptions provided by Section 7.54.040 should be clarified; (ii) compliance with the facility requirements set forth in Section 7.54.070 through 7.54.130, inclusive, may impose an undue hardship on some existing establishments that wish to offer massage services, and (iii) add provisions authorizing the City to verify the credentials of massage technicians and to conduct testing in accordance with the County’s current practices. As more fully discussed below, staff proposes Ordinance No. ___ (the "Amendment") to address these concerns.

Exemption

Section 7.54.040 makes the provisions of the Ordinance inapplicable to certain specified persons or businesses licensed to practice their professions by the State of California. These professions include, among others, chiropractors, beauty salons, and cosmetologists. The intent of the provision was to exempt from the City’s licensing procedures only those specified professionals or businesses licensed by the State. The City did not intend to exempt massage technicians employed by such exempt professionals or businesses from the application of the Ordinance unless they too fall within one of the exceptions.

Staff believes the current language in the Ordinance leaves room for interpretation and is concerned that certain exempt business will circumvent the provisions of the Ordinance by hiring unlicensed massage technicians. To close this potential loophole, the Amendment: (i) adds Section 7.54.060, which prohibits any person or business exempted from the Ordinance by Section 7.54.040 from hiring or employing a massage technician who is not licensed under the Ordinance or paramount state law; and (ii) amends the definition of massage technician to clearly encompass a massage technician hired by any person or business that is exempted by Section 7.54.040, unless that person also falls within one of the exemptions. Staff believes these two additions to the Ordinance eliminate any ambiguity regarding the extent of the exemption provided by Section 7.54.040 and will ensure that the legislative intent is effectuated.

Hardship Waiver

Staff also is concerned that enforcement of the Ordinance will work an undue hardship on some existing businesses that seek to offer massage services, such as beauty salons. The Ordinance imposes certain physical requirements on all massage facilities in the City, including requiring massage establishments to provide shower facilities for clients and separate locker rooms and restroom facilities for male and female clients. Many existing facilities, particularly small beauty shops and nail salons that employ only one massage technician, may lack the physical space or the funding to comply with these requirements. Enforcement of Ordinance No. 373 could force such businesses to close.

To avoid potentially depriving these small business owners of their livelihood, the proposed ordinance introduces a hardship waiver procedure that allows the City Manager or the City Manager’s designee to waive compliance with the requirements set forth in Section 7.54.070 through 7.54.130, inclusive, if an applicant demonstrates (by evidence reasonably satisfactory to the City Manager) that the applicant’s facility lacks the physical space to meet the requirements set forth in said sections or that compliance with said requirements would work an undue financial hardship. The City adopted the Ordinance to avoid the potential adverse effects from allowing massage establishments to operate without regulation. The proposed hardship waiver will not undermine this purpose. It merely provides the City with a mechanism to avoid unanticipated negative impacts to legitimate, existing businesses currently operating within the City and to relieve these businesses, under appropriate circumstances, from the undue hardship of complying with certain requirements of the Ordinance. This provision also could be expanded to include new businesses. As currently drafted, the attached ordinance provides that the City Manager’s decisions on hardship applications are final. If the City Council wishes such determinations to be appealed to the City Council, the ordinance can be amended accordingly.

Verification of Credentials

The City is entering into an agreement with the Los Angeles County Department of Health Services to perform certain inspection and examination services in connection with the licensing of massage establishments and technicians. The County’s testing procedures for prospective massage technicians include administering oral and/or written examinations to determine the ability of the applicant to perform massage services. The County indicated that the authority for this testing procedure comes from Section 7.54.240 of the County Code, which the City has adopted by reference. Staff is also concerned that Section 7.54.240 does not contain a provision that expressly authorizes the staff of the Department of Health to administer oral or written examinations to prospective massage technicians. Accordingly, staff is proposing an amendment to this provision of the Code to expressly authorize the administration of oral or written examinations to an applicant for a massage technician license for the purpose of determining the applicant’s qualifications to perform the massage services authorized by the license.

Agreement

Also attached to this report are a resolution and the proposed Agreement between the City and the County of Los Angeles that will authorize the County Department of Health Services to inspect massage establishments and administer examinations to prospective massage technicians on behalf of the City. According to County Health Services, its standard practice is to bill contract cities for services rendered to business license applicants. Staff requested the County to consider billing the business license applicants directly instead of the City. However, the County denied the City’s request. To recover the costs related to County Health Services, staff proposes establishing two new fees: massage establishment health inspection fee and massage technician examination fee. Should Council approve the County Health Services agreement, staff will prepare the appropriate notices for a public hearing on November 19th to formally adopt these new fees.

CONCLUSION

The proposed amendments eliminate a potential ambiguity in the language of Ordinance No. 373, introduce a hardship waiver procedure that will allow the City to avoid unintended impacts without undermining the integrity of the ordinance, and provide the necessary

authority to County personnel who are rendering services for the City to administer practical examinations to applicants for massage technician licenses for the purpose of determining the applicants’ qualifications to perform the massage services.

FISCAL IMPACT

In the past the City’s Finance Department and Planning, Building and Code Enforcement Department provided some assistance in reviewing and processing massage therapy business license applications. This will continue, however City staff will be responsible for additional paperwork and administrative handling of license applications due to the more formal review process adopted under the County’s regulations. The City Manager’s Office will be working with the County Treasurer Tax Collector’s Department to process the business license applications through the City and County departments. Currently, there are approximately a dozen massage related RPV business licenses issued in the City. The City does not foresee this number to significantly increase in the future, so the added workload is expected to be minimal.

The County licensing fee will cover all County services except for the County Health Services Department. With Council’s approval of the County Health Services agreement, staff will prepare notices for a public hearing on November 19th to adopt a fee schedule to recover County Health Service costs associated with massage establishment inspections and technician examinations, as well as the City’s administrative expenses.

ALTERNATIVES

The City Council could give staff direction to expand the provisions of the hardship waiver section beyond existing businesses to include new businesses that wish to offer massage services in addition to the other services that they propose to provide. The City Council could direct that the Ordinance be amended to allow determinations by the City Manager to be appealed to the City Council.

Respectfully submitted,
Les Evans, City Manager Carol Lynch, City Attorney

Attachments:

  1. Draft Ordinance
  2. County Code Amendments Detail
  3. Resolution
  4. Health Services Agreement

ORDINANCE NO. ___

AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES AMENDING TITLE 5 OF THE RANCHO PALOS VERDES MUNICIPAL CODE BY AMENDING REGULATIONS GOVERNING MASSAGE ESTABLISHMENTS AND MASSAGE TECHNICIANS.

THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Title 5 of the Rancho Palos Verdes Municipal Code is hereby amended by adding new Section 5.08.190 to Chapter 5.08 to read as follows:

"5.08.190. Section 7.54.060 of Massage Ordinance amended. Notwithstanding the provisions of Section 5.08.080, the Massage Ordinance is hereby amended by amending Section 7.54.060 thereof to read as follows:

‘Section 7.54.060. Employment of unlicensed massage technicians prohibited.

No licensee or person required by this Part 1 to obtain a license and no person or facility expressly exempted under Section 7.54.040 from the application of this Part 1 shall hire or employ a massage technician unless such massage technician possesses a valid, subsisting license required by Part 2 of this chapter or any paramount state law.’"

Section 2. Title 5 of the Rancho Palos Verdes Municipal Code is hereby amended by adding new Section 5.08.200 to Chapter 5.08 to read as follows:

"5.08.200. Section 7.54.200 of Massage Ordinance amended. Notwithstanding the provisions of Section 5.08.080, the Massage Ordinance is hereby amended by amending Section 7.54.210 thereof to read as follows:

‘Section 7.54.200. Massage technicians defined.

A. As used in Part 1 and Part 2 of this chapter, ‘massage technician’ means any persons, male or female, who administer to any person, for any form of consideration or gratuity, a ‘massage’ or ‘massage services’ as defined in Section 7.54.010 of this chapter. A ‘massage technician’ includes a student at a school of massage who administers a massage or massage services to any person who pays for or gives a gratuity for such, whether the payment or gratuity is to such student or to the school. A ‘massage technician’ also includes any person hired or employed by a person or facility listed in Section 7.54.040 to administer a "massage" or provide "massage services," unless the massage technician also is included within one of the exceptions specified in Section 7.54.040.’"

Section 3. Title 5 of the Rancho Palos Verdes Municipal Code is hereby amended by adding new Section 5.08.210 to Chapter 5.08 to read as follows:

"5.08.210. Section 7.54.196 added to Massage Ordinance. Notwithstanding the provisions of Section 5.08.080, the Massage Ordinance is hereby amended by adding Section 7.54.196 thereto to read as follows:

‘Section 7.54.196. Hardship waiver.

(a) Hardship waiver. Any person subject to the provisions of this Part 1 who provides massage services in connection with a business that was lawfully in existence at that location on February 1, 2002, may apply for a hardship waiver relieving him/her from complying with the facilities requirements set forth in Sections 7.54.070 through 7.54.130, inclusive, under either of the following circumstances:

    1. the facility in question lacks the physical space to comply with the requirements set forth in Sections 7.54.070 through 7.54.130, inclusive; or
    2. compliance with the requirements set forth in Sections 7.54.070 through 7.54.130, inclusive, would cause an undue financial hardship to the applicant.

(b) Application. Requests for a hardship waiver shall be submitted to the City Manager on a form furnished by the City. The application shall be accompanied by a sworn affidavit, together with any supporting documents or materials, demonstrating to the reasonable satisfaction of the City Manager (or the City Manager’s designee) that the facility lacks the physical space to meet the requirements set forth in Sections 7.54.070 through 7.54.130, inclusive, or that compliance with said requirements would cause an undue financial hardship to the applicant.

(c) Findings. The City Manager (or the City Manager’s designee) shall issue the hardship waiver or deny the request within fifteen (15) business days of receipt of the application. The City Manager or his or her designee may issue a hardship waiver if he/she finds that the supporting documentation submitted with the application demonstrates to his or her satisfaction that either: (i) the facility lacks the physical space to meet the requirements set forth in Sections 7.54.070 through 7.54.130, inclusive, or (ii) compliance with the requirements set forth in Sections 7.54.070 through 7.54.130, inclusive, would cause an undue financial hardship to the applicant who is requesting the hardship waiver. The City Manager (or the City Manager’s designee) shall issue a written notice of determination and shall serve such written notice of determination on the person requesting the hardship waiver via certified mail, return receipt requested. If the application is denied, the notice shall set forth the reason(s) for the denial. The determination rendered by the City Manager (or the City Manager’s designee) shall be final.

(d) Duration of Waiver. Any hardship waiver granted pursuant to this Section shall immediately terminate if the facility is sold or ownership of the facility otherwise changes.’"

Section 4. Title 5 of the Rancho Palos Verdes Municipal Code is hereby amended by adding new Section 5.08.220 to Chapter 5.08 to read as follows:

"5.08.220. Section 7.54.240 of Massage Ordinance amended. Notwithstanding the provisions of Section 5.08.080, the Massage Ordinance is hereby amended by amending Section 7.54.240 thereof to read as follows:

‘Section 7.54.240. License – Applicant qualifications – Verification.

A. The applicant shall:

1. Furnish with his/her application a diploma or certificate of graduation from a recognized school wherein the method, profession and work of a massage technician is taught; or

2. Furnish with his/her application a diploma or certificate from a school outside of the state of California which substantially complies with the educational requirements of Section 29025 of the Education Code of this state; or

3. Have had not less than five years’ experience as a practicing massage technician and furnish proof thereof.

B. Any department that has as one of its duties the investigation of this licensed activity or enforcement of this title shall have the right to verify for authenticity the information supplied pursuant to this Section. Such verification may include administering oral or written practical exams to an applicant for a massage technician license for the purpose of determining the applicant’s qualifications to perform the massage services that would be authorized by the license.’"

Section 5. The City Clerk shall cause this Ordinance to be posted in three (3) public places in the City within fifteen (15) days after its passage, in accordance with the provisions of Section 36933 of the Government Code. The City Clerk shall further certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting, to be entered in the Book of Ordinances of the Council of this City.

Section 6. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty-first (31st) day after its passage.

PASSED, APPROVED and ADOPTED this _______ day of _______________, 2002.

_____________________________
Mayor

ATTEST:

___________________________
City Clerk

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF RANCHO PALOS VERDES )

I, JO PURCELL, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Ordinance No. 2002- was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on November 5, 2002.

___________________________
CITY CLERK

County of Los Angeles Code AMENDMENTS as Proposed in the Ordinance (strikethroughs are deletions, bold text are additions)

Title 7 Business Licenses

Chapter 7.54 Massage

7.54.060 Employment of unlicensed massage technicians prohibited.

A No licensee or person required by this Part 1 to obtain a license and no person or facility expressly exempted under Section 7.54.040 from the application of this Part 1 shall not hire or employ a massage technician unless such massage technician possesses a valid, subsisting license required by Part 2 of this chapter or any paramount state law.

7.54.200 Massage technician defined.

  1. As used in Part 1 and Part 2 of this chapter, "massage technician" means any persons, male or female, who administer to any person, for any form of consideration or gratuity, a "massage" or "massage services" as defined in Section 7.54.010 of this chapter. A "massage technician" includes a student at a school of massage who administers a massage or massage services to any person who pays for or gives a gratuity for such, whether the payment or gratuity is to such student or to the school. A "massage technician" also includes any person hired or employed by a person or facility listed in Section 7.54.040 to administer a "massage" or provide "massage services", unless the massage technician also is included within one of the exceptions specified in Section 7.54.040.
  2. As used in this Part "recognized school" means any school or institution of learning, which school or institution of learning has been approved pursuant to Section 29025 of the Education Code of the state of California, and which has for its purpose the teaching of the theory, method, profession, practice or work of a massage technician.

ADDITION

Section 7.54.196 Hardship Waiver.

(a) Hardship waiver. Any person subject to the provisions of this Part 1 who provides massage services in connection with a business that was lawfully in existence at that location on February 1, 2002, may apply for a hardship waiver relieving him/her from complying with the facilities requirements set forth in Sections 7.54.070 through 7.54.130, inclusive, under either of the following circumstances:

    1. the facility in question lacks the physical space to comply with the requirements set forth in Sections 7.54.070 through 7.54.130, inclusive; or
    2. compliance with the requirements set forth in Sections 7.54.070 through 7.54.130, inclusive, would cause an undue financial hardship to the applicant.
  1. Application. Requests for a hardship waiver shall be submitted to the City Manager on a form furnished by the City. The application shall be accompanied by a sworn affidavit, together with any supporting documents or materials, demonstrating to the reasonable satisfaction of the City Manager (or the City Manager’s designee) that the facility lacks the physical space to meet the requirements set forth in Sections 7.54.070 through 7.54.130, inclusive, or that compliance with said requirements would cause an undue financial hardship to the applicant.
  2. Findings. The City Manager (or the City Manager’s designee) shall issue the hardship waiver or deny the request within fifteen (15) business days of receipt of the application. The City Manager or his or her designee may issue a hardship waiver if he/she finds that the supporting documentation submitted with the application demonstrates to his or her satisfaction that either: (i) the facility lacks the physical space to meet the requirements set forth in Sections 7.54.070 through 7.54.130, inclusive, or (ii) compliance with the requirements set forth in Sections 7.54.070 through 7.54.130, inclusive, would cause an undue financial hardship to the applicant who is requesting the hardship waiver. The City Manager (or the City Manager’s designee) shall issue a written notice of determination and shall serve such written notice of determination on the person requesting the hardship waiver via certified mail, return receipt requested. If the application is denied, the notice shall set forth the reason(s) for the denial. The determination rendered by the City Manager (or the City Manager’s designee) shall be final.
  3. Duration of Waiver. Any hardship waiver granted pursuant to this Section shall immediately terminate if the facility is sold or ownership of the facility otherwise changes.’"

7.54.240 License—Applicant Qualifications—Verification

A. The applicant shall:

  1. Furnish with his/her application a diploma or certificate of graduation from a recognized school wherein the method, profession and work of a massage technician is taught; or
  2. Furnish with his/her application a diploma or certificate from a school outside of the state of California which substantially complies with the educational requirements of Section 29025 of the Education Code of this state; or
  3. Have had not less than five years’ experience as a practicing massage technician and furnish proof thereof.

B. Any department which has as one of its duties the investigation of this licensed activity or enforcement of this title shall have the right to verify for authenticity the information supplied pursuant to this Section. Such verification may include administering oral or written practical exams to an applicant for a massage technician license for the purpose of determining the applicant’s qualifications to perform the massage services that would be authorized by the license.

RESOLUTION NO. 2002-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DELEGATING THE ADMINISTRATION AND ISSUANCE OF BUSINESS AND REGULATORY PERMITS FOR PROSPECTIVE MASSAGE ESTABLISHMENTS AND MASSAGE TECHNICIANS WITHIN THE CITY LIMITS TO THE COUNTY OF LOS ANGELES.

WHEREAS, after incorporation in 1973, the City of Rancho Palos Verdes adopted by reference the regulations governing massage establishments and massage technicians, Los Angeles County Ordinance No. 5860 as amended;

WHEREAS, the County subsequently amended its regulations governing massage establishments and massage technicians; however, the City neither adopted these later amendments nor modified the City’s regulations;

WHEREAS, the City historically relied on the County of Los Angeles to issue regulatory permits for massage establishments and technicians before the City issued a City business license pursuant to Chapter 5.04 of the Municipal Code. However, the City has never delegated this authority to the County;

WHEREAS, the City’s main concern is to ensure that massage establishments operate as legitimate businesses and not as fronts for illicit activities;

WHEREAS, on February 19, 2002, the City adopted by reference the ision 1 of Title 7 (General Licensing Procedures) and Chapter 7.54 of ision 2 of Title 7 (Massage) of the Los Angeles County Code and amended the Rancho Palos Verdes Municipal Code in order to regulate massage establishment and massage technician licensing;

WHEREAS, the City wishes to delegate the administration and issuance responsibilities of massage establishment and massage technician business permits/licenses to the Los Angeles County Treasurer Tax Collector and the Los Angeles County Business License Commission;

WHEREAS, under the General Service Agreement with the City, the County of Los Angeles is allowed to provide miscellaneous services, including services provided by the County Treasurer Tax Collector, on an as-needed basis;

WHEREAS, the City hereby requests the Los Angeles County Treasurer Tax Collector Department to provide services in connection with the licensing and issuance of permits for massage establishments and massage technicians;

WHEREAS, mandatory safety inspections, background investigations and fingerprinting are to be performed as part of the massage establishment and massage technician application procedure and will be covered under the current specific service agreement with the County Sheriff’s Department;

WHEREAS, mandatory fire related safety inspections will be covered under the current service agreement with County Fire;

WHEREAS, the City will enter into a separate service agreement with the County of Los Angeles Department of Health Services for the inspection of massage establishments, examination of applicants for massage technician permits and for other public health services related to these establishments and persons providing massage services within its City limits;

WHEREAS, the City’s Planning, Building and Code Enforcement Department will review prospective massage establishment applications in regards to building and safety issues and for zoning;

WHEREAS, the City of Rancho Palos Verdes has determined that the above-described items are in furtherance of the interests of City of Rancho Palos Verdes;

NOW THEREFORE BE IT RESOLVED that the City Council of the City of Rancho Palos Verdes hereby delegates to the County of Los Angeles the issuance of permits/licenses and the administration of business licensing regulations in connection with massage establishments and massage technicians within the City limits of the City of Rancho Palos Verdes.

PASSED, APPROVED AND ADOPTED this 5th day of November 2002.

__________________________
MAYOR

ATTEST:

______________________________
CITY CLERK

State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )

I, Jo Purcell, City Clerk of the City of Rancho Palos Verdes, hereby certify that above Resolution No. 2002-___ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on November 5, 2002.

MASSAGE INSPECTION AND EXAMINATION SERVICES AGREEMENT

THIS AGREEMENT is made and entered into this ____ day of __________, 2002, by and between COUNTY OF LOS ANGELES (hereafter referred to as "County"), and the CITY OF RANCHO PALOS VERDES, (hereafter referred to as "City").

WHEREAS, the California Health and Safety Code provides that the governing bodies of counties and cities shall take measures as may be necessary to preserve and protect the public’s health, including the adoption of ordinances and establishment of fees to support the enforcement of such activities; and

WHEREAS, County’s Board of Supervisors has delegated the authority and responsibility for these measures to County’s Director of Health Services, or his/her authorized designee (hereafter jointly referred to as "Director"); and

WHEREAS, Director has further entrusted his/her Department of Health Services ("DHS") Deputy of Environmental Health to preserve and protect the public’s health by inspecting businesses, including but not limited to, the inspection of massage establishments, and the examination of applicants for massage technician permits, for health purposes throughout the County of Los Angeles; and

WHEREAS, the City adopted by reference ision I of Title 7 and Chapter 7.54 of ision 2 of Title 7 (Massage) of the Los Angeles County Code and amended the City’s Municipal Code for purposes of regulating massage establishments and the issuance of massage technician permits within the City’s corporate limits as of February 19, 2002; and

WHEREAS, the City is desirous of contracting with County for the performance of inspections and examinations, and/or other hereafter described public health inspection services, within its corporate limits by County through its DHS; and

WHEREAS, such a contract is authorized and provided for by the provisions of Section 480 et seq. of the California Health and Safety Code;

NOW, THEREFORE, the parties hereto agree as follows:

1. TERM: This Agreement shall become effective upon the date of approval by County’s Board of Supervisors, and shall continue in full force and effect, to December 31, 2002. Said agreement shall thereafter be automatically renewed for one (1) year terms, for an indefinite period of time, without further action of the parties hereto.

Notwithstanding the provisions of this Paragraph as set forth herein, this Agreement may be canceled or terminated at any time by either party, with or without cause, upon the giving of at least thirty (30) calendar days advance written notice to the other party.

2. DESCRIPTION OF THE DUTIES AND UNDERSTANDING BETWEEN PARTIES:

A. County agrees to provide inspection of massage establishments, examination of applications for massage technician permits, and/or other related public health inspection services as required by City, within the corporate limits of City to the extent and in the matter hereafter set forth.

Such services shall only encompass duties and functions of the types customarily rendered by DHS under the charter of County and the statutes of the State of California.

B. Except for the completion time limits as described in Paragraph C, herein below, the rendition of all services performed hereunder, the standard of performance and other matters incidental to the performance of such services, and the control of personnel so employed, shall remain in County. In the event of dispute between the parties as to the extent of the duties and functions to be rendered hereunder, or the manner of performance of such services, Director shall make the determination of the duties, functions, and services rendered.

County agrees to perform for City such public health services as are authorized by Sections 480 et seq. of the California Health and Safety Code and as required by the County Code and the County’s regulations pertaining to massage establishments and massage technicians, to the extent adopted by the City, and/or other City ordinances relating to public health.

C. County through its DHS, agrees to perform massage establishment inspections and examination of applicants services as follows:

1. Massage Establishment Inspection Services:

a. Upon written notification from City Manager’s Office that a party (i.e., applicant) has applied for a new application for a massage establishment permit within City’s corporate limits, or for an application for the renewal of any such permit, County’s DHS shall inspect the premises sought to be licensed by said applicant, within twenty (20) calendar days, to ascertain if the applicant’s premises is/are in compliance with all applicable health provisions of the laws of the State of California and ordinances of County and City are being met. Such inspections shall include, but not be limited to, all health related provisions set forth in County Code Chapter 7.54 of ision 2 of Title 7 and as adopted and amended by the City. If the applicant’s premises is/are in compliance, or is not in compliance, County’s DHS shall issue a written notification to City Manager’s Office so stating, within an additional ten (10) calendar days. County’s written notification of applicant’s premises not being in compliance shall set forth the applicant’s deficiencies and County shall be required to re-inspect applicant’s premises no more than twice during this time period, when so requested by applicant in writing. If a written notification of compliance is not received by the City Manager’s Office from County’s DHS within ninety (90) calendar days of the applicant’s date of filing the application, or upon DHS having received written notice by the City Manager’s Office of applicant’s application, whichever is greater, and the City Manager’s Office must re-notify County’s DHS to inspect applicant’s premises, then any such additional inspection shall be subject to the fee and payment provision of Paragraph H, herein below.

b. County’s DHS shall within its discretion from time to time, but no less than once every three hundred sixty-five (365) days from the date of the DHS’ issuance of an applicant’s written notification of compliance (i.e., compliance letter), make an inspection of each complying massage establishment, or massage establishment permittee (hereafter "permittee"), located within the City’s corporate limits, for the purposes of determining that all applicable health provisions of the law of the State of California and ordinances of the County and City are met. Such inspections shall include, but not be limited to, all health related provisions set forth in County Code Chapter 7.54 of ision 2 of Title 7 (Massage) as amended by the City. County’s DHS shall notify the City Manager’s Office of any violation of applicable statutes, ordinances, rules, and/or regulations, which any permittee has failed to correct within thirty (30) calendar days after notification of the violation has been given to the permittee by the County’s DHS.

2. Examination of Applicants for Massage Technician Permit(s) Services:

a. Upon written notification from the City Manager’s Office that a party (i.e., applicant) has applied for a massage technician permit within City’s corporate limits, or for an application for the renewal of any such permit, County’s DHS shall prepare and conduct an examination to fairly determine the ability of the applicant to properly perform the work which the applicant would be authorized to do under the massage technician permit being applied for, which shall cover, but not be limited to, the following subject areas: anatomy, hygiene, physiology and the practice and theory of massage, as set forth in Chapter 7.54 of ision 2 of Title 7 (Massage) of the Los Angeles County Code as adopted and amended by the City.

When requested by City, County’s DHS shall notify the City Manager’s Office of the results of these examinations by written notification (e.g., form or letter) within twenty (20) calendar days after the examination is conducted.

b. County’s DHS shall conduct such examination on a continuing basis, as needed, at least once each month as set forth in Section 7.54.240 B of City’s Co

3. For the purpose of performing said functions, County shall furnish and supply all equipment, labor, supervision, and supplies, necessary to provide the level of service to be rendered, hereunder.

Notwithstanding anything herein before contained, it is agreed that in all instances wherein additional forms, stationary notices, supplies and the like, must be issued in the name of the City, the same shall be supplied by City at its cost and expense.

D. City in order to facilitate the performance of services herein, City shall:

1. Agree that County shall have full cooperation and assistance from the City, its officers, employees, and agents.

Prior to the performance by County of services pursuant to this Agreement, City shall provide to County a written list of the inspection of massage establishment services, or public health services, which it requests County to perform and the State and local public health regulations which it requests County to enforce. Any changes in service(s) requested by City should be in writing, and delivered to County thirty (30) calendar days prior to the requested change.

2. Make prompt written notifications to County’s DHS upon the filing of any application for a new massage establishment permit, and/or application for a new massage technician permit, or an application for the renewal of any such permits, within City’s corporate limits.

E. All persons employed in the performance of such duties, functions, and services, for City shall be County employees and no City employee shall be taken over by County, and no person employed hereunder shall have City pension, civil service, or any status or right.

For purposes of performing such duties, functions, and services, and for purpose of giving official status to the performance thereof where necessary, every County officer or employee engaged in the performance of any service hereunder shall be deemed to be an officer or employee of City while performing services for City, which services are within the scope of this Agreement.

F. City shall not be called upon to assume any liability for the direct payment of any salaries, wages, or other compensation for any County personnel performing services hereunder for County, or any liability other than that provided for under this Agreement.

Except as herein otherwise specified, City shall not be liable for compensation or indemnity to any County employees for injury or sickness arising out of his/her employment.

This agreement is subject to either the assumption of liability agreement, which was executed by the parities to this Agreement, and approved by the Board of Supervisors on December 27, 1977, or the Joint Indemnity Agreement, which was approved by the Board of Supervisors on October 8, 1991, whichever of these documents the City has signed later in time and is currently in effect, and is hereby made a part of and incorporated in to this agreement as if set out in full herein.

In event the Board of Supervisors later approves a revised Joint Indemnity Agreement and the City executes the revised agreement, the subsequent agreement as of its effective date shall supersede the agreement previously in effect between the parties hereto.

G. Payment by City to County for Services Performed:

City shall pay the cost for County’s provisions of massage inspection and examination services, and/or the enforcement of City’s Municipal Code Chapter 5.08 and any amendments made thereto, as follows:

1. A rate, or fee, for the inspection of massage establishments of Two Hundred Three Dollars ($203.00) for each inspection. This rate/fee shall include the cost of any subsequent re-inspections of massage establishments previously cited by County for deficiencies, and the costs of all written notices, except for as to be provided for under Paragraph 2, Descriptions of Duties and Understandings between the Parties, subparagraph C(3), herein above.

2. A rate, or fee, for the examination of any applicant for a massage technician permit of One Hundred Thirty Dollars ($130.00) for each examination. This rate/fee shall include the costs of all written notices, except for as to be provided for under Paragraph 2, Descriptions of Duties and Understandings between the Parties, subparagraph C(3), herein above.

City agrees that such rate(s)/fee(s) as described herein, shall be determined by County’s Auditor-Controller in accordance with the policies and procedures established by the Board of Supervisors. Further, the foregoing rate(s)/fee(s) shall be adjusted by County’s Auditor-Controller each fiscal year to reflect the costs of such service in accordance with the policies and procedures for the determination of such rate as adopted by the Board of Supervisors. County shall transmit such adjusted rate/fee for the next fiscal year to City’s City Council by not later than April 1 or each fiscal year, for rate(s)/fee(s) to be effective July 1.

Unless City’s City Council exercises its right to cancel this Agreement pursuant to Paragraph 1, Term, herein above, the rate(s)/fee(s) shall be applicable for the ensuing fiscal year.

a. Payment by City to County for services performed by County’s DHS shall be rendered by City quarterly, upon presentation of a County invoice, in duplicate, for all massage inspection and examination services performed during the previous quarter. Unless disputed by City pursuant to paragraph (b) below, such invoices shall be approved by an authorized representative of the City Manager’s Office and processed for payment no later than thirty (30) calendar days subsequent to presentation.

If such payment is not delivered to County office which is described on said invoice within thirty (30) calendar days after the date of the invoice, County is entitled to recover interest thereon. Said interest shall be at the rate of five percent (5%) per annum of any overdue portion calculated from the last day of the month in which the services were performed. However, the interest herein provided may be waived whenever the Director of Health Services or his/her designee finds late payment excusable by reason of extenuating circumstances.

b. City will review all invoices and report in writing of any discrepancies to the Director of Environmental Health within ten (10) business days. The County shall review the disputed charges and send a written explanation detailing the basis for the charges within ten (10) business days of the receipt of the City’s written report. If the City does not receive from the County a written explanation within the ten (10) business day period, it shall be implied that the County is not disagreeing with City’s dispute of the charges.

c. The County agrees to keep separate records for each City in such manner, as the County Auditor-Controller of the County of Los Angeles shall specify. Such records shall be open for examination by said City during all business hours.

3. CONSTRUCTION: To the extent there are any rights, duties, obligations, or responsibilities enumerated in the recitals or otherwise in this Agreement, they shall be deemed a part of the operative provisions of this Agreement and shall be fully binding upon the parties.

4. ALTERATION OF TERMS: The body of this Agreement, fully expresses all understandings of the parties concerning all matters covered and shall constitute the total Agreement. No addition to, or alteration of, the terms of this Agreement, whether by written or verbal understanding of the parties, their officers, employees or agents, shall be valid and effective unless made in the form of a written amendment to this Agreement which is formally approved and executed by the parties in the same manner as this Agreement.

5. WAIVER: No waiver of any breach of any provision of this Agreement by County shall constitute a waiver of any other breach of such provision. Failure of County to enforce at any time, or from time to time, any provision of this Agreement shall not be construed as a waiver thereof. The remedies herein reserved shall be cumulative and additional to any other remedies in law or equity.

6. SEVERABILITY: If any provision of this Agreement or the application thereof to a person or circumstance is held invalid, the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected thereby.

7. CITY OFFICES: City offices in located at 30940 Hawthorne Boulevard, Rancho Palos Verdes, California, 90275. City’s business telephone number if 310-544-5205 and facsimile number is 310-544-5291. City shall notify County, in writing, of any changes made to its business address, business telephone number and/or fax number as listed herein, at least ten (10) calendar days prior to the effective date(s) thereof.

8. NOTICES: Notices hereunder shall be in writing and may either be delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid, attention to the parties at the address listed below. Director is authorized to execute all notices or demands, which are required or permitted by County under this Agreement. Addresses and parties to be notified may be changed by providing at least ten (10) working days prior written notice to the other party.

a. Notices to County shall be addressed as follows:

1. Department of Health Service
Environmental Health—Executive Office
5050 Commerce Drive
Baldwin Park, CA., 91706-1423
Attn: Director, Environmental Health

2. Department of Health Service
Contracts and Grants ision
313 North Figueroa Street, 6th Floor-East
Los Angeles, Ca., 90012-2659
Attn: Division Chief

b. Notices to City shall be addressed as follows:

1. City of Rancho Palos Verdes
30940 Hawthorne Boulevard
Rancho Palos Verdes, Ca., 90275
Attn: City Manager

IN WITNESS WHEREOF, the Board of Supervisors of the County of Los Angeles has caused this Agreement to be subscribed by its Chairman and the seal of said Board to be affixed thereto and attested by the Clerk of said Board, and City by order of its City Council, has caused this Agreement to be subscribed in its behalf by its duly authorized officer.

COUNTY OF LOS ANGELES

By_______________________________
Chair, Board of Supervisors

CITY OF RANCHO PALOS VERDES

By_______________________________
Mayor

ATTEST:

Violet Varona-Lukens, Executive Officer
of the Board of Supervisors of the
County of Los Angeles

By___________________________

ATTEST:
Jo Purcell, Director of Administrative
Services/City Clerk of the
City of Rancho Palos Verdes

By____________________________

APPROVED AS TO FORM:
Office of the County Counsel
County of Los Angeles

By____________________________

APPROVED AS TO FORM:
Carol Lynch, City Attorney
City of Rancho Palos Verdes

By_____________________________