Rancho Palos Verdes City Council
   

MEMORANDUM

TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS

FROM: CITY MANAGER

DATE: NOVEMBER 19, 2002

SUBJECT: ESTABLISHMENT OF MASSAGE TECHNICIAN EXAMINATION FEE AND MASSAGE FACILITY INSPECTION FEE

Staff Coordinator: Gina Park, Senior Administrative Analyst

RECOMMENDATION

Approve Resolution No. _____approving the establishment of two fees to offset the Cityís costs to process business permits for establishments offering massage services and for massage technicians.

BACKGROUND

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. On November 5th the City Council introduced Ordinance No. 384, as amended, to 1) eliminate any ambiguity regarding which specified professionals or State licensed professionals are exempted by Section 7.54.040; 2) introduce a hardship waiver procedure that allows the City Manager to waive required physical requirements for massage facilities under specific circumstances for existing businesses that provide massage services as a secondary service; and 3) authorize verification of applicant qualifications to perform massage services by administering written/practical examinations.

In addition, the Council approved entering into an agreement with the Los Angeles County Department of Health Services to administer the examinations for prospective massage technicians as well as conduct health and safety inspections of massage establishments on behalf of the City. These County services to be provided on behalf of the City fulfill regulation requirements for massage establishments and technicians. The Countyís fees for health and safety services are established each fiscal year to reflect the Countyís direct costs. Until further notice, the County will bill the City $203 for each massage facility inspection and $130 for each massage technician examination that is administered to an applicant for a massage business permit.

DISCUSSION

To offset the Cityís costs to process applications for business permits for massage technicians and for businesses that provide massage services, staff proposes the establishment of two new fees to be charged to prospective business license applicants:

1) Massage Facility Inspection Fee of $229 annually and 2) Massage Technician Examination Fee of $156 per examination. The fee breakdown is as follows:

Massage Facility Inspection Fee

County Inspection Service Fee $203
City staff time-Finance Dept $10.94 (15 min. at $43.77/hr (incl overhead)
City staff time-City Managerís Office $14.65 (15 min. at $58.62/hr (incl overhead)
Total: ~ $229.00

Massage Technician Examination Fee

County Examination Service Fee $130
City staff time- Finance Dept $10.94 (15 min. at $43.77/hr (incl overhead)
City staff time- City Managerís Office $14.65 (15 min. at $58.62/hr (incl overhead)
Total: ~ $156.00

Staff estimates a total of 30 minutes of staff time will be necessary to help facilitate the County Health Service Department approval process for each business license applicant. City Finance Department staff will be responsible for providing guidelines to prospective applicants, accepting and processing the application and appropriate fees, issuing the RPV business license, and processing payments to the County. City Managerís Office staff will be responsible for notifying the County of new applications for massage technician examinations and massage establishment inspections, tracking applications through the approval process, reviewing written results of inspections and examinations, reviewing County invoices for payment, and responding to applicant inquiries.

To establish the proposed new service fees, City Council is asked to hold a public hearing. Staff published two notices of public hearing on November 9th and November 16th in the Palos Verdes Peninsula News regarding the two new fees.

FISCAL IMPACT

Should Council approve staff recommendations, the Massage Facility Inspection Fee of $229 annually and the Massage Technician Examination Fee of $156 per examination will become effective immediately. The proposed fees are anticipated to offset the costs that will be incurred by the City in processing applications for permits for massage technicians and for businesses that provide massage services. It should be noted that the proposed fees are separate from any business license taxes that are required by the City.

PREPARED BY

Gina Park
Sr. Administrative Analyst

APPROVED BY

Les Evans
City Manager

Attachments:

RESOLUTION NO. 2002-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES APPROVING THE ESTABLISHMENT OF
FEES TO OFFSET THE CITYíS COSTS TO PROCESS BUSINESS PERMITS
FOR ESTABLISHMENTS OFFERING MASSAGE SERVICES AND
FOR MASSAGE TECHNICIANS

THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES RESOLVE AS FOLLOWS:

    1. Pursuant to Chapter 5 of the Rancho Palos Verdes Municipal Code and Ordinance No. 373 and Ordinance No. 284, the City established a comprehensive regulatory scheme to license massage establishments and massage technicians providing massage services within the Cityís borders.
    2. The City has authorized the Los Angeles County Department of Health Services to administer the examinations of prospective massage technicians and to conduct health and safety inspections of massage establishments offering massage services within the City. The County will bill the City for services rendered. The Los Angeles County Department of Health Services charges the City a fee of $203 for the inspection of each massage establishment and a fee of $130 for each examination administered to an applicant for a massage technician business permit.
    3. As set forth in the staff repot that was prepared regarding this item, approximately thirty minutes of City staff time (fifteen minutes of staff time in the Cityís Finance Department and fifteen minutes of staff time in the City Managerís Office) will be necessary to facilitate the business license application process, at a combined total rate of $102.39 per hour, or $26.00 for thirty minutes of total staff time. City staff will be responsible for providing guidelines to prospective applicants, notifying the County of new applications for massage technicians examinations and massage establishment inspections, tracking applications, reviewing written results of inspections and examinations, reviewing and processing County invoices for payment, and issuing business licenses. The $26.00, which offsets the cost to the City of having City staff facilitate the application process, then will be added to the amount that the County charges the City to perform inspections of massage establishments and to administer examinations to massage technicians resulting in the total fees that are approved by this Resolution of $229.00 and $156.00, respectively.
    4. The establishment of two new fees to be charged to prospective business license applicants, will offset the Cityís costs to process applications for business permits for massage technicians and for businesses that provide massage services and will not generate additional revenue to the City.
    5. The City Clerk caused notice of the public hearing on the adoption of the two proposed new fees to be published in the Palos Verdes Peninsula News on November 7, 2002 and November 16, 2002.
    6. The City Council held a hearing on the adoption of the two proposed new fees on November 19, 2002. At the public hearing, the City Council heard and considered all testimony that was presented regarding the two new proposed fees.

Section 1: Based on the foregoing, the City Council hereby approves the establishment of two new fees to offset the Cityís costs to process applications for business permits. For establishments offering massage services, the amount of the application fee is $229.00. For massage technicians, the amount of the application fee is $156.00. The City Council hereby directs the City Clerk to add these two new fees to the table that sets forth the other fees that have been approved by the City Council.

PASSED, APPROVED and ADOPTED this 19th 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 the above Resolution No. 2002- was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on November 19, 2002.

______________________________
City Clerk