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9 City Council
Supplemental Report
From: Andrew Binder, Police Chief
Meeting Date: December 1, 2025
Item Number: 14
Report #:2511-5586
TITLE
SUPPLEMENTAL REPORT - FIRST READING: Adoption of an ordinance to Amend Chapters 4.54 and 4.56 of the Palo Alto Municipal Code to Amend the Regulation of Massage Establishments and Hot Tub/Sauna Establishments as Recommended by the Policy & Services Committee; and Adoption of a Resolution to Amend the Administrative Penalty Schedule to Amend Related Penalties; CEQA status - not a project.
RECOMMENDATION
Staff recommend that the City Council adopt this updated ordinance (Attachment A to this Supplemental Memo) and the resolution amending the administrative penalty schedule as originally published for this item.
BACKGROUND
Since this item was published, City staff have done additional outreach to massage establishments in the City. After gathering feedback, staff propose the following minor changes to the ordinance as first published to address aspects of the ordinance that may inadvertently impact combined massage and hot tub establishments. Staff’s objective is to support and strengthen reputable businesses while ensuring that the updated code does not impose undue restrictions.
SUMMARY OF AMENDMENTS
1. Hours of Operation
The original ordinance required all massage establishments to close between 10:00 p.m. and 8:00 a.m. While a 10:00 p.m. closing time for massage services is standard in most jurisdictions, we recommend revising the language to allow non-massage services to continue past 10:00 p.m., provided all massage services conclude by that time and any other applicable business hour laws are followed. Additionally, staff recommend reinstating a more limited exemption process for massage establishments to extend their hours. Existing law allows massage establishments with at least one year of operation to extend their hours no later than 2 a.m. or open as early as 6 a.m. upon a showing of good cause to the Police Department. Staff propose
Item No. 14. Page 2 of 3
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9 narrowing this exemption for businesses with a track record of 10 years in operation to extend their hours no later than midnight or open no earlier than 6 a.m.
2. Posting of Price List
The original ordinance required all services and prices to be displayed in a public area. In recognition of a combination of massage and non-massage (hot tub) offerings and variable pricing (e.g., based on time, day, or holiday), we have revised the ordinance to require only that massage service prices be posted, with an allowance for price variability.
3. Main Entry Door
We have amended the ordinance to permit one or more entry doors leading directly to the reception and waiting area, rather than limiting establishments to a single entry. This change is intended to prevent patron entry from inconspicuous or rear entrances while allowing flexibility in business layout.
4. Locking of Interior Doors
The updated language now allows exceptions to the prohibition on locking interior doors. Hot tub rooms, private offices, storage rooms, and equipment rooms are now exempt from this requirement.
5. Beds and Soft Mattresses
The revised ordinance permits soft mattresses in hot tub rooms, recognizing their role in patron safety and comfort.
6. Alcohol Service
Massage establishments are not allowed to serve or sell alcohol. For businesses that are also a hot tub/sauna establishment, the revised ordinance clarifies that the restriction does not apply to the non-massage areas of the establishment. Alcohol service is still subject to other laws, including California Alcohol Beverage Control as may be applicable.
7. Sandal/Flip Flop Requirement
Staff have updated the requirement to state that sandals or flip flops must be provided to patrons if they are offered use of shower facilities. This replaces the previous language, which prohibited patrons from using shower facilities unless wearing slip-resistant sandals or flip flops.
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9 These amendments aim to balance the integrity and intent of the municipal code with the operational realities of respected local businesses. We appreciate the input from stakeholders and remain committed to fostering a supportive regulatory environment.
ATTACHMENT
Attachment A – Revised Ordinance Amending Chapter 4.54 (“Massage Establishments”) and Chapter 4.56 (Hot Tub/Sauna Establishments) of Title 4 (Business Licenses and Regulations).
Ordinance text that has been updated since this item was originally published is printed in blue.
APPROVED BY:
Andrew Binder, Chief of Police