City of Aliso Viejo CITY COUNCIL AGENDA ITEM

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1 Agenda Item 7-1 City of Aliso Viejo CITY COUNCIL AGENDA ITEM DATE: October 5, ' s-- c o AUSO INC 10. ip x: 111 TO: Mayor and City Council FROM: City Attorney SUBJECT: AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALISO VIEJO, CALIFORNIA, PURSUANT TO GOVERNMENT CODE SECTIONS AND EXTENDING THE TEMPORARY MORATORIUM ON THE ESTABLISHMENT OF MASSAGE BUSINESSES IN THE CITY PENDING THE COMPLETION OF STUDIES AND THE PREPARATION OF AN UPDATE TO THE CITY' S MUNICIPAL AND ZONING CODE RECOMMENDED ACTION Staff recommends the City Council adopt the Ordinance, enclosed as Attachment 1, entitled: AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALISO VIEJO, CALIFORNIA, PURSUANT TO GOVERNMENT CODE SECTIONS AND EXTENDING THE TEMPORARY MORATORIUM ON THE ESTABLISHMENT OF MASSAGE BUSINESSES IN THE CITY PENDING THE COMPLETION OF STUDIES AND THE PREPARATION OF AN UPDATE TO THE CITY' S MUNICIPAL AND ZONING CODE FISCAL IMPACT Approval of this item will not result in net City cost ( discretionary general funding). ENVIRONMENTAL The proposed ordinance is not subject to the California Environmental Quality Act under California Code of Regulations, Title 14, Section 15060, subdivision ( c)( 2), because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment nor under subdivision ( c)( 3) because the activity has no potential for resulting in physical change to the environment, directly or indirectly and so is not a project. The proposed ordinance temporarily ensures that the status quo is maintained \

2 Agenda Item 7-2 Massage Establishment Moratorium Extension City Council Page 2 BACKGROUND On September 7, 2016, the City Counciladopted an interim urgency ordinance Ordinance No ") temporarily prohibiting the issuance of new licenses, other permits or entitlements for massage establishments in the City. Ordinance No , which lasts for 45 days, allows the City to study issues related to massage establishments in the City. The City Council adopted Ordinance No pursuant to Government Code Sections and Those statutes allow cities to adopt interim urgency ordinances when, among other things, there is a current and immediate threat to the public health, safety, or welfare. Ordinance No included findings that the regulation of massage businesses is vital to the public health, safety, and welfare, as evidenced by public accounts of illicit activity alleged at massage establishments in the area. Government Code Sections and allow the City to extend Ordinance No for a period of 10 months and 15 days after notice and hearing. Following a first extension, the statutes allow the City to extend the interim urgency ordinance a second time, for an additional one- year period. The proposed interim urgency ordinance. seeks to extend the moratorium on new massage establishments in the City for 10 months and 15 days. The immediate threat to public health and safety continues to persist from some massage establishments with illicit practices. If the Council extends the moratorium, the City will continue to study the issue of permitting and licensing massage establishments to determine the best way to serve the City and businesses' interests while protecting the public health and safety. DISCUSSION Aliso Viejo Municipal Code Chapter includes the City's current regulatory scheme for massage establishments. Among other things, City staff is working to bring the City's massage regulations into conformance with Assembly Bill 1147, which restored the City' s authority to regulate massage businesses. Staff is also reviewing the recently enacted Assembly Bill 2194, which amends portions of the Massage Therapy Act ( Bus. Prof. Code 4600, et seq.). A report describing the City's activities relating to massage establishments is attached ( Attachment 2). The report describes the actions the City has taken on this matter since the initial 45-day moratorium began. In order to ensure the continued protection of the public health and safety, City staff requires additional time to study the effects of massage establishments on the City and to determine what, if any, new regulations might best serve the City' s interests. This interim urgency ordinance would prohibit the issuance of new licenses or other permits or entitlements for massage establishments for an additional 10 months and 15 days \

3 Agenda Item 7-3 Massage Establishment Moratorium Extension City Council Page 3 CONCLUSION Staff recommends that the City Council adopt an extension of Ordinance No , extending the temporary moratorium on the establishment of massage businesses in the City for 10 months and 15 days. During this period, the City will study the related issues and prepare updates to the City' s municipal and zoning code. Because this Ordinance is an urgency ordinance, its passage requires a four-fifths vote of the City Council. Prepared by: Scott C. Smith City Attorney APPROVED FOR SU: MITTAL TO THE CITY COUNCIL AK% David A.! e City Manager Attachments: 1) Proposed Interim Urgency Ordinance Extending Moratorium 2) Report of City Actions During 45- Day Moratorium \

4 Agenda Item 7-4 ORDINANCE NO. AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALISO VIEJO, CALIFORNIA, PURSUANT TO GOVERNMENT CODE SECTIONS AND EXTENDING THE TEMPORARY MORATORIUM ON THE ESTABLISHMENT OF MASSAGE BUSINESSES IN THE CITY PENDING THE COMPLETION OF STUDIES AND THE PREPARATION OF AN UPDATE TO THE CITY' S MUNICIPAL AND ZONING CODE WHEREAS, Article 11, Section 7 of the California Constitution authorizes the City of Aliso Viejo (" City") to make and enforce within its limits all ordinances and regulations not in conflict with general laws; and WHEREAS, in 2008, the California Legislature passed legislation, Senate Bill 731, which effectively ended most local regulation of massage establishments; and WHEREAS, Senate Bill 731 has been widely criticized by local agencies and other groups for providing massage businesses with unprecedented protection from local zoning and land use authority, and interfering with local law enforcement efforts to close massage businesses allowing prostitution and other illegal activities; and WHEREAS, since the passage of Senate Bill 731, cities throughout California, including the Southern California region, have reported a large increase in the number of massage establishments operating and an uptick of crime, including allegations of illicit sexual activity, prostitution, and human trafficking (" Massage-parlors law leaves California cities feeling powerless over prostitution," AirTalk, Mar. 17, 2014; " Cities Feel Powerless While Illicit Massage Parlor Activity Flourishes Under State Law," PublicCEO, Mar. 24, 2014; " Fountain Valley bans opening of new massage parlors, citing prostitution concerns," The Orange County Register, Feb. 19, 2015; " Modesto massage parlor ordinance aims to combat illicit activity," The Modesto Bee, Jan. 31, 2016; Corona: City Cracks down on illicit massage parlors," The Press Enterprise, Jan. 27, 2016); and WHEREAS, the California Legislature passed Assembly Bill 1147, which the Governor signed into law. AB 1147 went into effect on January 1, 2015, in response to widespread criticism of Senate Bill 731. Assembly Bill 1147 authorizes cities to use zoning and licensing processes to regulate massage establishments by imposing reasonable zoning, business licensing, and health and safety requirements on massage establishments; and WHEREAS, on September 21, 2016, the Gov. Brown signed into law, Assembly Bill 2194, which makes additional changes to the Massage Therapy Act ( Bus. & Prof. Code 4600, et seq.); and \

5 Agenda Item 7-5 WHEREAS, the City Council is concerned about the public health and safety issues associated with massage establishments, including the illicit activity alleged to occur at massage establishments in Orange County and nearby counties, and desires to adopt ordinances that combat those health and safety risks; and WHEREAS, an interim urgency ordinance became necessary to provide City staff time to gather data about the adverse impacts of massage establishments and to research, study, and consider ways to potentially amend the City' s Municipal Code and Zoning Code to reduce illegalities that may occur at massage establishments; and WHEREAS, the City Council adopted Ordinance No on September 7, 2016, to establish. a 45-day temporary moratorium on the establishment of new massage establishments in the City; and WHEREAS, the City has begun studying the issues related to massage establishments, but has not yet finished its study and evaluation; and WHEREAS, Government Code section 65858( a) allows the City Council to extend an interim moratorium ordinance based on immediate threats to public health, safety, and welfare.. The City Council is aware that there are allegations of massage establishments in the region that allow illicit activity to occur; and WHEREAS, City staff, the Sheriff's Department, and the City Attorney's office require additional time to research massage establishments regulation to prevent or stem illicit activities while being mindful of legitimate massage businesses; and WHEREAS, as a result, the City Council desires to extend the current moratorium by an additional ten ( 10) months and fifteen ( 15) days to allow the City to complete studies regarding massage establishment regulations and prepare proposed updates to the City' s Municipal and Zoning Code. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ALISO VIEJO, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. by reference. The above recitals are true and correct and are incorporated herein SECTION 2. The City Council finds that this Ordinance is not a project within the meaning of Section of the State of California Environmental Quality Act ("CEQA") Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly. The City Council further finds, under Title 14 of the California Code of Regulations, section 15061( b)( 3) that this interim urgency ordinance is nonetheless exempt from the requirements of CEQA. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA \

6 Agenda Item 7-6 SECTION 3. The Aliso Viejo City Council hereby finds and determines that the proliferation of massage establishments at locations throughout Orange County, as well as the reports of illicit sexual activity, prostitution, human trafficking, and other disturbances and code enforcement violations experienced by surrounding jurisdictions constitute an immediate threat to the public health, safety and welfare. The approval of additional entitlements for massage establishments under the City's current regulations will further threaten public health, safety, or welfare. The adoption of this Ordinance is therefore necessary for the immediate protection of the public safety, health and welfare. SECTION 4. During the time this Ordinance is in effect, no license, permit, or entitlement shall be issued for the establishment or operation of a " massage establishment," as defined in Assembly Bill SECTION 5. Pursuant to Government Code Section and 65858, this interim urgency ordinance is designed to protect the health, safety, and welfare of the City and its residents and becomes effective immediately upon adoption by a four-fifths 4/5) vote of the City Council. SECTION 6. This Ordinance shall remain in effect for ten ( 10) months and fifteen ( 15) days from its adoption, unless earlier repealed, terminated, or extended. SECTION 7. No less than ten ( 10) days prior to the scheduled expiration of this Ordinance, staff shall issue a report to the City Council on the progress of its study and on determinations for how the City should proceed, insofar as conclusions have been drawn. SECTION 8. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, such invalidity or. unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof. Signatures on following page] \

7 Agenda Item 7-7 SIGNATURE PAGE TO ORDINANCE NO ATTEST: Mike Munzing Mayor Mitzi Ortiz, MMC City Clerk APPROVED AS TO FORM: Scott C. Smith City Attorney \

8 Agenda Item 7-8 STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF ALISO VIEJO ss I, Mitzi Ortiz, MMC City Clerk of the City of Aliso.Viejo, California, do hereby certify that the foregoing Urgency Ordinance was adopted at a regular meeting of the City Council of the City of Aliso Viejo held on the 5th day of October 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Mitzi Ortiz, MMC City Clerk \

9 Agenda Item 7-9 y' { City of Aliso Viejo i CITY COUNCIL DATE: October 5, 2016 TO: Mayor and City Council y 1 OV ALISO it 1 " e' 111 o ' cilifors N ± FROM: Planning Director SUBJECT: REPORT ON MEASURES TAKEN TO ALLEVIATE CONDITIONS RELATING TO THE ADOPTION OF INTERIM URGENCY ORDINANCE NO ESTABLISHING A MORATORIUM ON THE ESTABLISHMENT OF MASSAGE BUSINESSES On September 7, 2016, the City Council adopted Interim Urgency Ordinance No (" Ordinance No "), enacting a forty- five ( 45) day moratorium on the establishment of new massage establishments in the City of Aliso Viejo (" City"). Pursuant to Government Code Section 65858, Ordinance No requires the City to issue a report at least ten ( 10) days prior to the expiration of the ordinance or any extension, describing the measures taken to alleviate the condition( s) which led to the adoption of the initial moratorium. Ordinance No was adopted, in part, due to public reports of illicit activity allegedly occurring at some massage establishments in the area and across the State. Since the enactment of Ordinance No , the City has taken the following actions: 1) The City' s Planning Department (" Department") has started reviewing the City' s existing massage establishment regulations. The Department has started evaluating those regulations in light of recently enacted statutes relating to massage establishments. 2) The Department has also started researching surrounding cities' municipal codes and zoning codes relating to massage establishments to understand how other cities regulate such businesses. 3) The City Attorney' s Office has started reviewing relevant statutes relating to massage establishments, including AB 1147 and the recently enacted AB The City Attorney' s Office has started drafting proposed revisions to the City' s massage establishment regulations to conform to State law \

10 Massage Establishment Moratorium Extension Report to City Council Page 2 4) The City Attorney's Office has prepared a proposed 10- month and 15-day extension of the moratorium relating to massage establishments. Agenda Item 7-10 In light of the complexity of this matter, the City requires additional time to study, in depth, issues related to massage establishment regulations. Should the City extend its moratorium on new massage establishments, the City will continue to evaluate potential changes to the City' s municipal and zoning code regarding massage businesses. The aim of any revised regulations will be to protect the public's health and safety while providing a path for legitimate massage businesses to operate in the City \