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BACKGROUND On July 17, 2018, the City Council adopted an Urgency (Interim) Ordinance No. 2182 ("Ordinance") that prohibits new or expanding massage establishments within the Downtown Specific Plan (DSP) area. The Ordinance is in effect for a period of 45 days. Both the July 17, 2018, City Council agenda report and Ordinance 2182 are attached to this report, as Attachments 2 and 3, respectively. State law provides that an urgency interim ordinance may be extended for a period of 22 months and 15 days after notice and a public hearing. State law also provides that, before such an extension may take place, the City Council must issue a written report describing the measures taken to alleviate the condition which lead to the adoption of the ordinance. DISCUSSION Public Comment After the Ordinance was adopted, several owners of existing massage establishments and technicians contacted staff and expressed concern that the Ordinance unfairly targets the massage industry and other massage establishment owners in good standing. Additionally, since some massages are provided in conjunction with medical treatment, establishment owners expressed concern about limiting personal services to the second floor on Main Street since those seeking medical treatment may find it challenging to access a second floor suite. The massage establishment owners also expressed that the Ordinance does not support expansion of small businesses downtown, particularly when many establishment owners and technicians have secured professional training above the minimum requirements, and provide a valuable service to many downtown patrons and visitors. Further, some felt that the Ordinance should not be tied to the efforts of the DSP update. Written correspondence received specifically for this item is attached to this report as Attachment 4. The Pleasanton Downtown Association's (PDA) Board is anticipated to review and provide a position on the Ordinance. Any written communication from the PDA Board will be provided to the City Council upon receipt. In response to the concerns expressed by existing massage businesses, staff recommends the interim ordinance be revised from the version adopted on July 17, to allow massage establishments to apply to have more than three massage technicians at any one time, through a minor conditional use permit (MCUP). The MCUP requirement is consistent with that which currently exists in the Zoning Ordinance for massage establishments with four or more technicians. Physical expansion or discretionary modification of the building space would still be prohibited under the interim ordinance. Ten-day Report As required by State law, the City Council is required to issue a written report ten days prior to the expiration of the interim ordinance or any extension, describing the measures taken to alleviate the condition which led to the adoption of the ordinance. This agenda report and discussion herein is in response to this requirement. Page 2 of 3