Rancho Palos Verdes City Council
   

TO: HONORABLE MAYOR AND COUNCILMEMBERS

FROM: CITY MANAGER

DATE: OCTOBER 7, 2003

SUBJECT: ESTABLISHMENT OF FEES ASSOCIATED WITH REGULATORY BUSINESS PERMITS AND ENFORCEMENT OF REGULATIONS GOVERNING MASSAGE ESTABLISHMENTS AND MASSAGE TECHNICIANS

RECOMMENDATION

Approve Resolution No. _____ establishing fees for regulatory business permits and related enforcement of regulations governing massage establishments and massage technicians.

INTRODUCTION

In compliance with the California Government Code (Sections 66016 and 66018), the City Council is to hold a public hearing for the establishment of new fees.

BACKGROUND

To staff’s knowledge, historically, the City relied on the County of Los Angeles to issue regulatory permits for massage establishments and massage technicians before the City issued a City business license. In 2001, the County of Los Angeles raised the issue that City Municipal Code Chapter 5.08 governing massage establishments and massage technicians was outdated and was no longer consistent with the County’s Code and, therefore, the County would not accept business permit applications on behalf of the City.

To address that problem, on February 19, 2002, the City Council adopted by reference the Los Angeles County Code provisions governing massage establishments and massage technicians, as amended (Ordinance No. 373). Afterwards, City staff began working with the County to set up the necessary administrative details of the business regulatory permit process, which requires, but is not limited to, a criminal background investigation of all new applicants by the County Sheriff’s Department, facility inspection or the administration of a massage technician skills examination by the County Health Services Department, a public hearing for all massage establishments before the County Business License Commission, and planning review of new massage establishments.

On November 5, 2002 the City Council approved the agreement with the Los Angeles County Department of Health Services to administer the skill examinations for prospective massage technicians as well as to conduct health and safety inspections of massage establishments on behalf of the City. In addition, the City adopted health examination and facility inspection fees to recover the City’s expense for the County’s services.

DISCUSSION

The City’s original intention was to delegate the review and issuance of regulatory business permits for massage technicians and massage establishments to the County of Los Angeles. However, after several discussions with the County to establish the above-mentioned administrative details of the regulatory permit process, City staff concluded that the City and its customers would be better served if the City coordinated the processing of regulatory permits in-house instead of delegating the responsibility to the County. Staff feels the County’s involvement would create an inefficient system and unreasonable burden to Rancho Palos Verdes applicants in terms of higher than average fee payments, additional paperwork, and longer turn around time for application review.

Therefore, City staff proposes the City Manager’s Office to be responsible for coordinating the regulatory business permit process. This evening, the Council also is considering an ordinance to repeal the County regulations and procedures previously adopted by reference and in their place establish a comprehensive regulatory scheme applicable to all massage establishments and massage technicians doing business within the City. This new regulatory scheme will require the City to establish fees to offset the City’s expenses for processing applications for regulatory permits.

Since there are an estimated two or three massage establishments and a dozen massage technicians within the City’s jurisdiction, staff anticipates the additional workload to be minimal. The regulatory business permit review process would involve the following steps:

Massage Technician Permit Massage Establishment Permit Agency Tasked

Criminal investigation Criminal investigation County Sheriff

Skills examination Facility health inspection County Health

Planning review City Planning

Building inspection, as necessary City Building

After obtaining approval from each agency department, the City’s Finance department will issue a regulatory business permit and a City business license.

In order to proceed, staff requests that Council consider adopting the following three new fees to offset the City’s expense for processing applications for regulatory permits for massage establishments and massage technicians:

1) Planning Review Fee--$14.00

City Planning staff will review the zoning and parking criteria for a massage establishment regulatory business permit at a fee of $14.00 based upon approximately 15 minutes of staff time at a rate of $57.06/hr including overhead.

2) Administrative Handling Fee--$14.00

City Manager’s Office staff will process and coordinate application review at a fee of $14.00 based upon approximately 15 minutes of staff time at a rate of $54.75/hr including overhead.

3) Background Investigation Fee--$60.00

The County Sheriff’s Department will coordinate the criminal background investigation on each new applicant and under the current Sheriff’s service contract the charge will be $60.00 per hour. The County Sheriff estimates one hour for each investigation.

These new fees are in addition to the previously established Massage Facility Inspection Fee of $229 and the Massage Technician Examination Fee of $156.

To establish the proposed new fees, City Council is asked to hold a public hearing. Staff published two notices of the public hearing on September 18, 2003 and September 25, 2003 in the Palos Verdes Peninsula News.

FISCAL IMPACT

Should Council approve staff recommendation, the Planning Review Fee of $14, Administrative Handling Fee of $14 and Background Investigation Fee of $60 will become effective immediately. The proposed fees are anticipated to offset the City’s expenses that will be incurred in processing applications for regulatory business permits for massage technicians and for businesses that provide massage services; the new fees will not generate additional revenue to the City.

It should be noted that the proposed fees are separate from any business license taxes that are required by the City.

Respectfully submitted: Approved by:

Gina Park Les Evans

Assistant to the City Manager City Manager

Attachment: Resolution

RESOLUTION 2003-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ESTABLISHING FEES FOR REGULATORY BUSINESS PERMITS AND RELATED ENFORCEMENT FOR MASSAGE ESTABLISHMENTS AND MASSAGE TECHNICIANS

 

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

    1. Pursuant to Title 5 of the Rancho Palos Verdes Municipal Code and Ordinance No. ___ adopted concurrently herewith, the City established a comprehensive regulatory scheme to license massage establishments and massage technicians providing massage services within the City’s borders (the "Regulations").
    2. The Regulations require the City to conduct certain investigations and to administer a business regulatory permitting scheme for massage technicians and massage service establishments operating within the City. Pursuant to its police powers, the City desires to establish and implement a fee schedule to off-set its costs to conduct said investigations and to administer the business regulatory permitting process.
    3. The Regulations envision the following regulatory process: the County Sheriff Department, City administration and City planning staff will review and process business regulatory permits for massage technicians and massage service establishments in accordance with the procedures set forth in Ordinance No. ___. The County Sheriff Department will coordinate the criminal background investigation on each new applicant and will charge the City $60.00 per hour, per investigation. To offset the City’s expense, the City will charge a fee of $60.00 per hour to each applicant for the Sheriff’s services. City administration staff will coordinate the application review process at a fee of $14 per application based upon approximately 15 minutes of staff time at an hourly rate of $54.75. City planning staff will review the zoning and parking criteria for a massage service business permit for a fee of $14 per application based on 15 minutes of staff time at an hourly rate of $57.06.
    4. The establishment of new fees to be charged to prospective massage business permit applicants will offset the City’s costs to process applications and will not generate additional revenue to the City.
    5. The City Clerk caused notice of the public hearing on the adoption of the proposed new fees to be duly published in the Palos Verdes Peninsula News on September 18, 2003 and September 25, 2003.
    6. The City Council held a public hearing on the adoption of the proposed new fees on October 7, 2003. At the public hearing, the City Council heard and considered all testimony that was presented regarding the new proposed fees.

Section 1: Based on the foregoing, the City Council hereby establishes the fees set forth in Exhibit "A" attached hereto to offset the City’s costs to investigate and process applications for regulatory business permits and to enforce regulations governing massage establishments and massage technicians operating within the City. The City Council hereby directs the City Clerk to add these three new fees to the table that sets forth the other fees that have been approved by the City Council.

Section 2: The City Clerk shall certify to the passage, approval, and adoption of this resolution, and shall cause this resolution and her certification to be entered in the Book of Resolutions of the City Council of the City.

PASSED, APPROVED and ADOPTED this 7th day of October 2003.

_____________________________

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. 2003- XX was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on October 7, 2003.

______________________________

City Clerk