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BACKGROUND After more than two years, the Downtown Specific Plan Update and work of the Downtown Specific Plan Task Force is nearing completion. Since the November 2018 draft of the Specific Plan was released, staff has received feedback from the public, various interest groups, and City Boards and Commissions. Public correspondence received throughout the comment period is attached (Attachments 1 and 2). At its most recent meeting, held on February 26, 2019, the Task Force reviewed the input received to-date on the draft DSP. In particular, the Task force considered and provided direction on five policy items, including: 1) massage regulations, 2) the active ground-floor overlay, 3) ground-floor residential in commercial and mixed-use districts, 4) land use discrepancies including property owner-initiated requests for change in land use, and 5) development standards (i.e., height and FAR limitations). In providing its direction, and as discussed below, several of the Task Force's most recent decisions were based on comments received during the November and December outreach. The final Task Force meeting is scheduled for April 23, 2019, with Planning Commission and City Council hearings tentatively scheduled from May through July. Going into the final Task Force meeting, staff requests direction from the City Council on the five topic areas discussed by the Task Force at the February meeting. DISCUSSION The following provides a summary and discussion of each of the five topics items being brought to the Council for policy direction. Each topic area includes: a brief background section for context, an overview and discussion of the Task Force's direction up to and including at the February 26 meeting, and a staff recommendation with options for the City Council's consideration. In some cases, staff's recommendation differs from the Task Force's latest thinking. 1. Massage Regulations Background As allowed by State law, the City currently regulates massage establishments and massage technicians in two ways: • Land use-based regulations in the Pleasanton Municipal Code (PMC) Title 18 (the Zoning code), which prescribes zoning districts and land use permitting requirements for massage establishments, which are generally classified as "personal services." • Business permit requirements for massage establishments and practitioners, codified in PMC Chapter 6.24. Under these regulations, permit holders are required to adhere to strict licensing and operating requirements, administered through the Pleasanton Police Department. Based on concerns that arose over massage establishments operating near downtown residential uses, on August 21, 2018, the City Council adopted Urgency Interim Ordinance (No. 2183) prohibiting new massage establishments within the Downtown Page 2 of 15