ALISO VIEJO CALIFORNIA ENACTED PURSUANT TO CALIFORNIA

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1 Agenda Item 11-1 City of Aliso Viejo 144' CITY COUNCIL AGENDA ITEM Ailt OF ALISO L/ F raz l 44, yo DATE: September 7, 2016 c/iufornv TO: FROM: Mayor and City Council City Attorney SUBJECT: AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF ALISO VIEJO CALIFORNIA ENACTED PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTIONS AND 65858; A TEMPORARY MORATORIUM ON THE ESTABLISHMENT OF MASSAGE BUSINESSES IN THE CITY PENDING STUDY AND THE PREPARATION OF AN UPDATE TO THE CITY' S MUNICIPAL AND ZONING CODE RECOMMENDED ACTION Staff recommends the City entitled: Council adopt the Ordinance, enclosed as Attachment 1, AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALISO VIEJO, CALIFORNIA, ENACTED PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTIONS AND 65858; A TEMPORARY MORATORIUM ON THE ESTABLISHMENT OF MASSAGE BUSINESSES IN THE CITY PENDING STUDY AND THE PREPARATION OF AN UPDATE TO THE CITY' S MUNICIPAL AND ZONING CODE BACKGROUND In 2008, the California Legislature passed Senate Bill 731 with the support of the massage industry. Senate Bill 731 placed significant limitations on cities and counties with regard to their ability to license and regulate massage therapists and massage businesses. All local regulation of massage businesses were superseded by the law that took effect in September The bill created a non- profit organization, the California Massage Therapy and practitioners. Council ( CAMTC), to issue licenses to massage therapists Following the passage of Senate Bill 731, the California Legislature realized the serious, unintended consequences of the law on cities throughout California, including Southern California. With little to no city regulation of massage businesses, California cities

2 Agenda Item 11-2 Massage Establishment Moratorium City Council Page 2 experienced an increase in the number of massage businesses 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.) As a result, the California Legislature passed Assembly Bill 1147 to restore some regulatory authority to the cities. Assembly Bill 1147 went into effect on. January 1, 2015, and provides the cities with much greater freedom to regulate massage establishments. Government Code Sections and allows the City Council to adopt an interim ordinance to protect the public safety, health, and welfare. The regulation of massage businesses is vital to the public health, safety, and welfare, as evidenced by public accounts of illicit activity alleged at various massage establishments. Before adopting a new ordinance to regulate massage businesses, however, City Staff requires time to study the issue in depth in order to determine the best way to serve all interests while protecting the public health, safety, and welfare. While this study is being conducted and a new ordinance is being prepared, it is critical that a moratorium be established in accordance with Government Code Sections and DISCUSSION The City's current regulatory scheme regarding massage establishments is provided in Aliso Viejo Municipal Code Chapter City staff recommends bringing the City's massage regulations into conformance with Assembly Bill 1147, which restores the City' s authority to regulate massage businesses. In order to ensure the protection of the public health, safety, and welfare, City staff requires time to study the effects of these 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 initial 45- day period to allow the City to study this issue in more depth. After the 45-day moratorium expires, the City Council may, after notice and hearing, extend the urgency ordinance for an additional period of time, after a public notice and hearing. FISCAL IMPACT Approval of this item will not result in net city cost ( discretionary general. funding).

3 A. I v em City Manager Agenda Item 11-3 Massage Establishment Moratorium City Council Page 3 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. CONCLUSION Staff recommends that the City Council adopt an Interim Urgency Ordinance of the City of Aliso Viejo enacted pursuant to Government Code Sections and 65858, temporarily prohibiting the establishment of massage businesses pending study and adoption of regulatory and zoning standards. Because this Ordinance is an urgency ordinance, its passage requires a four-fifths vote of the City Council. Prepared by: o/ Scott C. Smith City Attorney APPROVED FOR SUBMITTAL TO THE CITY COUNCIL Attachments: 1) Proposed Interim Urgency Ordinance

4 Agenda Item 11-4 ORDINANCE NO. AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALISO VIEJO, CALIFORNIA, ENACTED PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTIONS AND 65858; A TEMPORARY MORATORIUM ON THE ESTABLISHMENT OF MASSAGE BUSINESSES PENDING STUDY 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 Flourishes Under State Law," PublicCEO, Powerless While Illicit Massage Parlor Activity 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 Governor signed into law. AB 1147 went into effect on January 1, 2015, in response to widespread criticism of Senate Bill 731; and 1147, which the WHEREAS, 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, 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 \

5 Agenda Item 11-5 WHEREAS, per Government Code Sections and 65858, the City Council may adopt an interim urgency ordinance to protect the public safety, health, and welfare from an event, occurrence, or set of circumstances; and WHEREAS, City staff requires time to gather data about the adverse impacts of massage establishments and to research, study, and consider ways to possibly amend the City's regulatory process and the Aliso Viejo Municipal Code to reduce potential illegalities occurring at massage establishments; and WHEREAS, City staff, the Sheriff's Department, and the City Attorney' s office are conducting research into the possible and likely impacts of further regulating massage establishments in the City in order to mitigate adverse impacts; and WHEREAS, City staff is gathering factual data regarding the adverse impacts experienced by other cities that permit massage establishments. This information is currently being processed as a tool to draft provisions for regulating massage parlors in the City; and WHEREAS, as a result, the City Council desires to institute a forty-five ( 45) day moratorium to allow staff and the City Council the opportunity to research and select the best course of action for the City's citizens and the community at large. 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. SECTION 3. The Aliso Viejo City Council hereby finds and determines that the change in regulatory authority created by the passage of Assembly Bill 1147, 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 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 \

6 Agenda Item 11-6 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 is adopted under the provisions of Government Code Sections and 65858, and shall take effect immediately upon its passage by a four-fifths vote of the City Council. This Ordinance shall remain in effect for forty-five 45) 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. PASSED, APPROVED and ADOPTED this 7th day of September, ATTEST: Mike Munzing Mayor Mitzi Ortiz, MMC City Clerk APPROVED AS TO FORM: Scott C. Smith City Attorney \

7 Agenda Item 11-7 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 7th day of September 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mitzi Ortiz, MMC City Clerk \