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Ms. Seto said staff looked at some of the advertisement that is used for psychic businesses. On most of the advertisements for the larger national psychic hotlines there is a disclaimer, stating the customer must be 18 years of age or have their parents' permission. The smaller ads or more localized ads do not show the disclaimer. She contacted other cities; they did not have any information regarding this issue. Staff therefore believes the national hotline psychics were doing it more for protection, for itself and for the customer. Mayor Tarver believed the proper place for this type of business is in a planned unit development non-residential zone in the City. Ms. Seto said staff has given its best recommendation where their uses are permissible, given what the practioners, other cities, and the community have said at the meetings: Mayor Tarver understood there are certain businesses that can or cannot go downtown. Are these businesses going to complain because they are not allowed downtown? Ms. Seto said the businesses on that list are non-compatible downtown uses, but the extrasensory consultants are stating that they run their business much in the same way as an office runs. Therefore the issue of non-compatibility is hard to determine. Mayor Tarver did not understand how the psychics can make an argument in court stating the City is not allowing them flee speech. He did not care if the businesses were in the City of Pleasanton, but they should operate in non-residential area. Mr. Roush said all Councils are faced with this difficulty, whether it is in context of the extrasensory consultant business or an adult book store business. The struggle is with the United States and California Supreme Courts' decisions on this area; they take away the local governments' discretion in these areas. Staff has tried to lay out the areas and restrictions that it thinks has the best chance of surviving a legal challenge. If Council decides to limit areas where these uses can locate, staff will do its best to uphold Council's wish. Certainly if the area is more restricted than what is proposed staff would do its best to uphold this in court, should it be challenged. Staff would be more comfortable, however, if Council introduced an ordinance something similar to what is being proposed. Ms. Michelotti said the City has made a concerted effort to allow these businesses in certain areas under a conditional use permit. She asked if it was possible to make this a permitted use with restrictions and would this hold up to legal challenge. She was told it probably would not. She asked staff to explain the conditional use permit process. Ms. Seto said the conditional use permit process is typically used in situations where it is expected that the use will have impacts on the community that need to be addressed through individualized conditions. In the extrasensory context the requirements will be set up in advance where staff has already addressed what it perceives will be the impacts. If the impacts are Pleasanton City Council 19 12/01/98 Minutes