G\T Y OF
PISMO BEACH CITY COUNCIL STAFF REPORT
A�syoBt Agenda Item #9.E
Meeting Date: March 4, 2025
TITLE:
Update on Massage Establishment and Massage Therapist Permit Fees RECOMMENDATION:
No action recommended; for information only.
DISCUSSION:
The City of Pismo Beach charges user fees on individuals or groups for the use of City facilities, resources, or services. As part of the City's cost recovery strategy, user fees help fund programs and services that provide a private benefit rather than a direct, citywide benefit. Without appropriate cost recovery, general tax revenues would subsidize private benefits, limiting funds available for essential community-wide services such as public safety and community programs.
The general standard is that individuals or groups who receive a private benefit from a service should pay 100% of cost. However, the City may choose to subsidize certain fees for policy reasons, such as encouraging participation in public programs, ensuring compliance when cost is prohibitive, and promoting access to essential services.
City Council Direction to Reduce Massage Permit Fees to $50 On February 24, 2025, the City Council held a City User Fee Study Session to review the proposed 2025 User Fee Schedule, which has been updated based on input from City staff and through a User Fee Study. Based on public testimony from massage establishments and massage therapists indicating the potential economic hardship posed by the massage therapist licensing fees, the City Council provided direction to staff and the City's consultant regarding reducing both the massage establishment biennial permit fee, which is currently $641 every 2 years, and the massage therapist permit fee, which is currently $607 per permit. These fees help cover the cost for the Police Department and its officers to investigate and review the business and therapist to ensure safe practices according to state and city laws.
The Council directed staff to modify those fees to be $50 for the massage establishment biennial permit fee every two years, and $50 for the massage therapist permit fee.
Because of this significant change, staff will move forward effective immediately to administratively reduce the fee to $50 for each fee. Staff will return to the Council at the March 18, 2025 meeting for final review and adoption of the entire fee schedule. The comprehensive fee schedule is proposed to be effective on July 1, 2025, except the massage licensing fees that would be effective March 18, 2025, per Council approval.
FISCAL IMPACT:
The fiscal impact of reducing the massage establishment biennial permit fee every two years and the massage therapist permit fee is providing a $557 to $591, respectively, General Fund subsidy for police services to investigate and review the safe practices Council Agenda 3-4-2025 9.E-1
according to state and city laws. This General Fund subsidy is roughly equal to $14,000 per year.
ATTACHMENTS:
None
Submitted by: Nadia Feeser, Administrative Services Director City Manager Approval:
Council Agenda 3-4-2025 9.E-2