Resolution No. 6752361
RESOLUTION NO. 6752
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS, ADOPTING CERTAIN
FEES RELATING TO THE LICENSING, PERMITTING, AND REGULATION OF MASSAGE
ESTABLISHMENTS AND OPERATORS THEREOF PURSUANT TO CHAPTER 15A OF THE
CYPRESS MUNICIPAL CODE
WHEREAS, pursuant to the provisions of the California Constitution, the laws of the State
of California, the City of Cypress Charter, and City ordinances, the City of Cypress is authorized
to adopt and implement rates, fees and charges for certain municipal services and for cost
recovery purposes, provided that the same do not exceed the estimated reasonable cost of
providing such services; and
WHEREAS, at a public hearing held on October 14, 2019, the City Council introduced for
first reading, by title only, and considered the adoption of Ordinance No. 1177 relating to the
regulation of massage establishments and their owners and managers in the City and conducted
a duly noticed public hearing on that same date ("Massage Establishment Ordinance'); and
WHEREAS, if adopted, the Massage Establishment Ordinance requires that all massage
establishments to acquire a massage establishment license; and
WHEREAS, if adopted, the Massage Establishment Ordinance requires that each owner
and manager of a massage establishment acquire an operator permit; and
WHEREAS, if adopted, the Massage Establishment Ordinance permits the City to collect
fees for the purpose of paying for the costs of reviewing, investigating, and processing massage
establishment license and operator permit (as defined in the Massage Establishment Ordinance)
applications, including any appeals under the Massage Establishment Ordinance; and
WHEREAS, the reviewing, investigating, and processing of massage establishment
license/operator permit applications can be lengthy and involve significant City staff time; and
WHEREAS, the City has duly analyzed the costs of reviewing, investigating, and
processing massage establishment license/operator permit applications and has determined that
a deposit -based fee is the appropriate mechanism by which the City could fully recover its
reasonable costs thereof due to the time and costs required to review, investigate and process
applications; and
WHEREAS, the City has estimated the reasonable costs of reviewing, investigating, and
processing massage establishment license/operator permit applications as provided in
Attachment A of this Resolution; and
WHEREAS, the City Council now desires to adopt a deposit -based fee relating to the
reviewing, investigating, and processing massage establishment license and operator permit
applications, as provided in Attachment B of this Resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CYPRESS, CALIFORNIA,
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The recitals set forth above are true and correct and incorporated herein
by this reference.
SECTION 2. Unless provided otherwise, the terms in this Resolution shall have the
same meaning as those terms are set forth in Ordinance No. 1177.
SECTION 3. Based upon the foregoing, the City Council hereby adopts the deposit -
based fees, including its related procedures, as provided in Attachment B of this Resolution.
SECTION 4. This Resolution is exempt from the requirements of the California
Environmental Quality Act (CEQA) because: (1) it is not a "project' under CEQA Guidelines §
15378(b)(2) in that it constitutes general policy and procedure making; (2) it is not a "project'
under CEQA Guidelines § 15378(b)(4) as it merely creates a governmental funding mechanism
or constitutes governmental fiscal activities and do not involve any commitment to any specific
project which may result in a potentially significant physical impact on the environment; (3) it is
not a "project' under CEQA Guidelines § 15378(b)(5) in that it has no potential to result in a
physical change to the environment, either directly or indirectly, and (4) in the alternative, it is
exempt from CEQA pursuant to CEQA Guidelines § 15060(c)(2), since the activity will not result
in direct or reasonably foreseeable indirect physical change in the environment, and §
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15061(b)(3), since it can be seen with certainty that there is no possibility that this Resolution will
have a significant effect on the environment, because it merely adopts licensing and permitting
and appeals fees related to Chapter 15A of the Cypress Municipal Code.
SECTION 5. The fees adopted by this Resolution shall be effective on the same date as
the effective date of Ordinance No. 1177.
SECTION 6. The City Clerk shall certify to the passage and adoption of this Resolution
and enter it into the book of original Resolutions.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Cypress at a
regular meeting held on the 14th day of October 2019.
MAYOR OF T E CITY ? YPRESS
ATTEST:
i 4 VW ]�Akz
CIT LERK OF THEI CITY OF CYPRESS
STATE OF CALIFORNIA)
COUNTY OF ORANGE ) SS
1, Alisha Farnell, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the
foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the
14th day of October 2019; by the following roll call vote:
AYES: 5 COUNCIL MEMBERS: Morales, Peat, Yarc, Johnson and Berry
NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
a
—IT CLERK OFT E CITY OF CYPRESS
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Attachment A
Analysis and Estimate of Deposit -based Fees for
Massage Establishment Licenses and Operator Permits Pursuant to Chapter 15A of the
Cypress Municipal Code
1. Costs of Massage Establishment License and Operator Permit
In order to own and operate/manage a massage establishment, applicants must submit the
following applications:
• Massage Establishment License application
• Owner's Operator Permit application
• Manager's Operator Permit application (as applicable)
The activities reviewing, investigating, and processing relating to the massage establishment
license application and the owner's operator permit application are the same. The Cypress Police
Department ("Police Department") therefore estimates that the time and cost required to review,
investigate, and process both the massage establishment license and the owner's operator permit
applications are as follows:
Estimated Time
to Review
Both Massage
Establishment
Hourly Rate
Estimated Cost
(Est. Time X Hourly Rate)
License and
Operator Permit
Police Officer 23 hours
$50.00/hour
$1150.00
Police Sergeant 3 hours
$63.33/hour
$190.00
Police Commander 2 hours
$80.00/hour
$160.00
Total:
$1,500.00
The Police Department estimates that the time and cost required to review, investigate, and
process each manager's operator permit application will be substantially similar to the massage
establishment license and the owner's operator permit applications.
The Police Department further estimates that the time and cost required to review, investigate,
and process massage establishment licenses and operator permits renewal applications to be
the same as those described above for new applications.
2. Costs of Appeals pursuant to Section 15A-21 of the Cypress Municipal Code
The estimated cost of appeals pursuant to Section 15A-21 of the Cypress Municipal Code is
$1,500.00.
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Attachment B
Deposit -based Fees for
Massage Establishment License and
Operator Permit Applications
Pursuant to Chapter 15A of the Cypress Municipal Code
Applicants shall pay for the City's actual costs of reviewing, investigating, and processing of
massage establishment licenses and operator permits pursuant to Chapter 15A of the Cypress
Municipal Code. Applicants shall therefore deposit with the City a deposit -based fee as follows:
• Initial Fee Deposit for each Massage Establishment License/Owner's Operator Permit:
$1,500.00.
• Initial Fee Deposit for each Manager's Operator Permit: $1,500.00.
• Initial Fee Deposit for renewals of each Massage Establishment License/Owner's
Operator Permit: $1,500.00.
• Initial Fee Deposit for renewals of each Manager's Operator Permit: $1,500.00.
Appellants filing an appeal pursuant to Section 15A-21 of the Cypress Municipal Code shall pay
for the City's actual costs of such appeals. Appellants shall therefore deposit with the City a
deposit based fee as follows:
• Initial Fee Deposit for appeals pursuant to Section 15A-21 of the Cypress Municipal
Code: $1,500.00.
In the event that the funds in any of the above-mentioned initial fee deposits are depleted, the
Applicant/Appellant shall be required to supplement the deposit to pay for the City's additional
actual costs (e.g., additional actual costs relating to each additional manager's operator permit).
In the case of the massage establishment license and operator permits, the supplemental deposit
amount shall be in an amount as determined by the Chief of Police or his or her designee.
In the case of appeals pursuant to Section 15A-21 of the Cypress Municipal Code, the
supplemental deposit amount shall be in an amount as determined by the City Clerk or his or her
designee.
If there are funds still remaining in a deposit, including any supplemental deposits, after the
completion of reviewing, investigating, and processing of an Applicant's massage establishment
license and/or operator permit or after the conclusion of an appeal hearing pursuant to Section
15A-21 of the Cypress Municipal Code, the City shall remit such funds to the Applicant or
Appellant, as applicable.
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