ORDINANCE NO. 2024-06
AN ORDINANCE OF THE CITY OF VISALIA, CALIFORNIA ADDING
CHAPTER 3.14 (CANNABIS BUSINESS TAX) TO TITLE 3 OF THE
VISALIA MUNICIPAL CODE ESTABLISHING A TAX ON CANNABIS
BUSINESS ACTIVITIES WITHIN THE CITY
WHEREAS, in 1996 California voters approved Proposition 215, that legalized, under state not federal law, the possession and use of cannabis for medical purposes by individuals under designated circumstances; and
WHEREAS, in 2016, California voters approved Proposition 64, the Adult Use of Marijuana Act, which established a system to legalize, control, and regulate the cultivation, processing, manufacture, distribution, testing, and sale of nonmedical marijuana. However, Proposition 64 expressly allowed local agencies, such as the City of Visalia to decide whether to allow commercial marijuana activities within the local agency jurisdiction along with allowing local agencies to pass, with requisite voter approval, local excise taxes on cannabis businesses; and WHEREAS, in 2022, SB 1186, which became effective on January 1, 2024, was signed into law, this statute decreases the prior allowances for local agency control over cannabis business by stating cities in California cannot adopt or enforce regulations that prohibit the retail sale by delivery of medicinal cannabis, although zoning and business license regulations of such businesses are allowed by state law; and
WHEREAS, the City of Visalia, in response to SB 1186 modified its municipal code to allow non storefront or delivery only medicinal cannabis businesses within Visalia, although no such businesses presently operate within Visalia; and
WHEREAS, presently the City of Visalia has no local excise tax on cannabis businesses; and WHEREAS, if in the future cannabis business activities are permitted in the City of Visalia by either a future City of Visalia City Council, the voters of Visalia through a future ballot measure, or state law permitting such sales, then the Visalia City Council desires that a tax be in place and imposed on any such future cannabis business activities; and
WHEREAS, the City Council finds that this ordinance would, if approved by voters, authorize a tax for general fund purposes on cannabis business activities that are allowed within the City of Visalia.
NOW THEREFORE THE CITY COUNCIL OF THE CITY OF VISALIA DOES ORDAIN AS FOLLOWS:
SECTION 1. CODE AMENDMENT. Chapter 3.14 is added to Title 3 of the Visalia Municipal Code 1301
Cannabis Business Tax Ordinance
to read as follows:
CHAPTER 3.14
3.14.010 Title.
3.14.020 Authority and purpose.
3.14.030 Intent.
3.14.040 Definitions.
3.14.050 Tax imposed.
3.14.060 Registration, reporting, and remittance of tax.
3.14.070 Payments and communications – timely remittance.
3.14.080 Payment – when taxes deemed delinquent.
3.14.090 Notice not required by City.
3.14.100 Penalties and interest.
3.14.110 Refunds and credits.
3.14.120 Refund procedures.
3.14.130 Personal cultivation not taxed.
3.14.140 Administration of the tax.
3.14.150 Appeal procedures.
3.14.160 Enforcement – action to collect.
3.14.170 Apportionment.
3.14.180 Constitutionality and legality.
3.14.190 Audit and examination of premises and records.
3.14.200 Other licenses, permits, taxes or charges.
3.14.210 Payment of tax does not authorize unlawful business.
3.14.220 Deficiency determinations.
3.14.230 Failure to report – nonpayment, fraud.
3.14.240 Tax assessment – notice requirements.
3.14.250 Tax assessment – hearing, application, and determination.
3.14.260 Relief from taxes – disaster relief.
3.14.270 Conviction for violation – taxes not waived.
3.14.280 Violation deemed misdemeanor.
3.14.290 Severability.
3.14.300 Remedies cumulative.
3.14.310 Amendment or modification.
3.14.010 Title.
This ordinance shall be known as the Cannabis Business Tax Ordinance. This ordinance shall be applicable in the City of Visalia, California which shall be referred to herein as “City.”
3.14.020 Authority and Purpose.
The purpose of this Ordinance is to adopt a tax, for revenue purposes, pursuant to Sections 37101 and 37100.5 of the California Government Code, upon cannabis businesses that 1302
Cannabis Business Tax Ordinance
engage in business in the City. The Cannabis Business Tax is levied based upon business gross receipts except for commercial cannabis cultivation which may be taxed either on business gross receipts or on the square footage of the permitted cultivation area. It is not a sales and use tax, a tax upon income, or a tax upon real property and shall not be calculated or assessed as such.
The Cannabis Business Tax shall not be separately identified or otherwise specifically assessed or charged to any member, customer, patient, or caretaker. The Cannabis Business Tax is a general tax enacted solely for general, governmental purposes of the City and not for specific purposes.
All of the proceeds from the tax imposed by this chapter shall be placed in the City's general fund and be available for any lawful City purpose.
3.14.030 Intent.
The intent of this Ordinance is to levy a tax on all cannabis businesses that operate in the City, regardless of whether such business would have been legal at the time this chapter was adopted. Nothing in this chapter shall be interpreted to authorize or permit any business activity that would not otherwise be legal or permissible under laws applicable to the activity at the time the activity is undertaken.
3.14.040 Definitions.
The following words and phrases shall have the meanings set forth below when used in this chapter:
A. An "arm's length transaction" is a sale entered into in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction.
B. “Business” shall include all activities engaged in or caused to be engaged in within the City, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to his or her employer.
C. “Calendar year” means January 1 through December 31, of the same year.
D. “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” shall not include “industrial hemp,” unless otherwise specified.
E. “Cannabis product” means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. “Cannabis product” also means cannabis products as defined by Section 11018.1 1303
Cannabis Business Tax Ordinance
of the California Health and Safety Code and is not limited to medicinal cannabis products.
F. “Canopy” means all areas occupied by any portion of a cannabis plant whether contiguous or noncontiguous on any one site. When plants occupy multiple horizontal planes (as when plants are placed on shelving above other plants) each plane shall be counted as a separate canopy area.
G. “Cannabis business” means any business activity involving cannabis, including but not limited to cultivating, transporting, distributing, manufacturing, compounding, converting, processing, preparing, storing, packaging, delivering, testing, dispensing, retailing and wholesaling of cannabis, cannabis products or of ancillary products and accessories, whether or not carried on for gain or profit.
H. “Cannabis business tax” means the tax due pursuant to this chapter for engaging in a cannabis business in the City.
I. “Commercial cannabis cultivation” means cultivation of cannabis undertaken in the course of conducting a cannabis business.
J. “Commercial cannabis permit” means a permit, license, certificate, or other approval issued by the City to a person to authorize that person to operate a cannabis business or engage in business as a cannabis business within the City.
K. “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis and includes, but is not limited to, the operation of a nursery.
L. “Employee” means each and every person engaged in the operation or conduct of any business, whether as owner, member of the owner's family, partner, associate, agent, manager or solicitor, and each and every other person employed or working in such business for a wage, salary, commission, barter or any other form of compensation.
M. “Engaged in business as a cannabis business” means the commencing, conducting, operating, managing or carrying on of a cannabis business, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the City or coming into the City from an outside location to engage in such activities. A person shall be deemed engaged in business within the City if:
1. Such person or person’s employee maintains a fixed place of business within the City for the benefit or partial benefit of such person;
2. Such person or person’s employee owns or leases real property within the City for business purposes;
3. Such person or person’s employee regularly maintains a stock of tangible 1304
Cannabis Business Tax Ordinance
personal property in the City for sale in the ordinary course of business;
4. Such person or person’s employee regularly conducts solicitation of business within the City;
5. Such person or person’s employee regularly conducts sales by delivery to addresses within the City; or
6. Such person or person’s employee performs work or renders services in the City.
The foregoing specified activities shall not be a limitation on the meaning of “engaged in business.”
N. “Evidence of doing business” means evidence such as, without limitation, use of signs, circulars, cards or any other advertising media, including the use of internet or telephone solicitation, or representation to a government agency or to the public that such person is engaged in a cannabis business in the City.
O. “Gross Receipts,” except as otherwise specifically provided, means, whether designated as a sales price, royalty, rent, membership fee, ATM service fee, delivery fee, slotting fee, any other fee, vaping room service charge, commission, dividend, or other designation, the total amount (including all receipts, cash, credits, services and property of any kind or nature) received or payable for sales of goods, wares or merchandise, or for the performance of any act or service of any nature for which a charge is made or credit allowed (whether such service, act or employment is done as part of or in connection with the sale of goods, wares, merchandise or not), without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, losses or any other expense whatsoever. In the event the business is involved in a “non-arm’s length transaction” the gross receipts will be subject to the fair market value using a methodology approved by the Tax Administrator. However, the following shall be excluded from Gross Receipts:
1. Cash discounts where allowed and taken on sales;
2. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;
3. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;
4. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer's business;
1305
Cannabis Business Tax Ordinance
5. Cash value of sales, trades or transactions between departments or units of the same business located in the City of Visalia and if authorized by the Tax Administrator in writing in accordance with Section 3.14.140 (B);
6. Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered;
7. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded;
8. Retail sales of non-cannabis products, if and only if the Tax Administrator has issued an administrative ruling per Section 3.14.140 that such non-cannabis products shall not be subject to the cannabis business tax under this chapter. Such non-cannabis products may include branded merchandise such as t-shirts, sweaters, hats, stickers, key chains, bags, books, posters or other products, as well as cannabis accessories such as pipes, pipe screens, rolling papers, vape pen batteries (without cannabis) or other personal tangible property. Such non-cannabis products may also include products derived from industrial hemp, as defined, when intended for human consumption or ingestion through any means or for external application to the skin or body. Unless specifically excluded by an administrative ruling issued by the Tax Administrator, all such non-cannabis products shall be subject to the City’s cannabis business tax. Any sales of non-cannabis products not subject to the cannabis business tax pursuant to an administrative ruling shall be subject to the appropriate business tax provisions of Chapter 5.04 as determined by the Tax Administrator.
9. Payments made by the tax-reporting cannabis business (Seller) to a cannabis business (Buyer) for the difference in the original acquisition price and subsequent renegotiated or finalized selling price of products or services sold to a specific end customer. This type of transaction is referred to as a “billback”. The tax-reporting cannabis business must provide supporting documentation to substantiate the transaction in order to be eligible for an exemption.
P. “Industrial hemp” means a crop that is limited to types of the plant Cannabis sativa L. having no more than three-tenths of 1 percent tetrahydrocannabinol (THC) contained in the dried flowering tops, whether growing or not; the seeds of the plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin produced therefrom, as defined by Section 11018.5 of the California Health and Safety Code and regulated by the Department of Food and Agriculture in accordance with the provisions of Division 24 (commencing with Section 81000) of the Food and Agricultural Code, inclusive.
1306
Cannabis Business Tax Ordinance
Q. “Industrial hemp products” means any raw industrial hemp that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. “Hemp product” also means hemp products as defined by Section 11018.5 of the California Health and Safety Code.
R. “Lighting” means a source of light that is primarily used for promoting the biological process of plant growth. Lighting does not include sources of light that primarily exist for the safety or convenience of staff or visitors to the facility, such as emergency lighting, walkway lighting, or light admitted via small skylights, windows or ventilation openings.
S. “Medicinal cannabis” or “medicinal cannabis product” means cannabis or a cannabis product sold, or intended to be sold,for use pursuantto the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, for a medicinal cannabis patient in California who possesses a physician’s recommendation and/or a cannabis card issued pursuant to Health and Safety Code Section 11362.71.
T. “Nursery” means a facility or part of a facility that is used only for producing clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis.
U. A "non-arm's length transaction" is a transaction that does not meet the definition of an "arm's length transaction." In other words, the transaction is not a sale that reflects fair market value in the open market. One example of a non-arm's length transaction would be when a cultivator sells cannabis goods to a cannabis distributor at a sales price that is lower than what the same cultivator would charge to other cannabis distributors, or which does not reflect the fair market value in the open market.
V. “Person” means an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, whether organized as a nonprofit or for-profit entity, and includes the plural as well as the singular number.
W. “Processing” means a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis and non-manufactured cannabis products.
X. “Retailer” means a person or business as defined in Section 3.14.040 (V) who sells cannabis or cannabis products at their place of business or by delivery to an end user or customer for use or consumption rather than to another person or business for resale.
Y. “Sale”, “sell” and “to sell” means and includes any sale, exchange, or barter either as a retailer or wholesaler by a person or business as defined by Section 3.14.040 (V). It shall also mean any transactionwhereby, for any consideration, title to cannabis or cannabis products are transferred from one person to another and includes thedeliveryofcannabis orcannabisproducts pursuant to an order placed for the purchase of the same, but does not include the return of cannabis or cannabis products to the licensee from whom the cannabis or cannabis product was purchased.
1307
Cannabis Business Tax Ordinance
Z. “State” means the State of California.
AA. “State license,” “license,” or “registration” means a state license issued pursuant to California Business & Professions Code Section 26050, and all other applicable state laws, required for operating a cannabis business.
AB. “Tax Administrator” means the Finance Director of the City of Visalia or his or her designee.
AC. “Testing Laboratory” means a cannabis business that (i) offers or performs tests of cannabis or cannabis products, (ii) offers no service other than such tests, (iii) sells no products, excepting only testing supplies and materials, (iv) is accredited by an accrediting body that is independent from all other persons involved in the cannabis industry in the state and (v) is registered with the Department of Cannabis Control or other state agency.
3.14.050 Tax Imposed.
A. Beginning January 1, 2025, there is imposed upon each person who is engaged in business as a cannabis business a cannabis business tax. Such tax is payable regardless of whether the person has been issued a commercial cannabis business license, permit, or other certificate to operate lawfully in the City or is operating unlawfully. The City’s acceptance of a cannabis business tax payment from a cannabis business operating illegally shall not constitute the City’s approval or consent to such illegal operations.
B. The City Council may, by resolution or ordinance, increase or decrease the rate of the cannabis business tax, including the initial rate of cannabis business tax.
Notwithstanding the foregoing, in no event shall the City Council repeal this tax or set any adjusted rate that exceeds the maximum rates calculated pursuant to this chapter.
C. The maximum rate of the cannabis business tax shall be calculated as follows:
1. For every person engaged in retail sales of cannabis or cannabis products, including as a retailer (dispensary) or non-storefront retailer (retail delivery business), or microbusiness, the person shall be subject to the maximum tax rate not to exceed ten percent (10%) of gross receipts.
2. For every person engaged in any wholesale cannabis business activity including but not limited to cannabis cultivation, manufacturing, distribution, or any other wholesale activity not specifically listed herein, the person shall be subject to the maximum tax rate not to exceed ten percent (10%) of gross receipts.
1308
Cannabis Business Tax Ordinance
a. The City Council may, at its discretion, establish separate categories of wholesale cannabis businesses (e.g.; cultivation, manufacturing or distribution) subject to separate tax rates so long as the rate does not exceed the maximum rate for wholesale cannabis businesses established in Section 3.14.050 (C)(2), above.
3. As an alternative to the tax rate established in Section 3.14.050 (C)(2), above, the City Council may, by resolution or ordinance, establish a separate method and rate of taxation for cannabis cultivation based on the maximum square footage of canopy as allowed on the permit issued to the business by the City, as described below. The City may not change the method of taxation more often than annually, nor may it change the method of taxation more than twice (two times) within any 5-year period.
a. Through January 1, 2026, the annual maximum rate shall be:
i. Ten dollars ($10.00) per square foot of canopy space in a facility that uses exclusively artificial lighting.
ii. Seven dollars ($7.00) per square foot of canopy space in a facility that uses a combination of natural and supplemental lighting as defined in Section 3.14.040 (R) of this chapter.
iii. Four dollars ($4.00) per square foot of canopy space in a facility that uses no artificial lighting.
iv. Two dollars ($2.00) per square foot of canopy space for any nursery.
b. On January 1, 2026 and on each January 1, thereafter, the maximum annual tax rates specified in Subsection 3.14.050 (C) (3) (a), shall increase by the percentage increase in the Consumer Price Index (“CPI”) for consumers in the Western Region as published by the United States Government Bureau of Labor Statistics. However, no CPI adjustment resulting in a decrease of any tax imposed by this subsection shall be made.
4. For every person engaged in the operation of a testing laboratory for cannabis or cannabis products, the person shall be subject to the maximum tax rate not to exceed ten percent (10%) of gross receipts.
D. Persons subject to the cannabis business tax shall register with the City and if applicable pay the registration fee pursuant to Section 3.14.060 and in accordance with Chapter 5.04 of the Visalia Municipal Code.
E. Businesses subject to the cannabis business tax under this section shall not be 1309
Cannabis Business Tax Ordinance
subject to the City's general business license tax as defined in Chapter 5.04 unless the business also sells non-cannabis products that are not subject to this tax pursuant to Section 3.14.040(O)(8).
3.14.060 Registration, reporting and remittance of tax.
A. Registration of Cannabis Business. All cannabis businesses shall be required to annually register as follows:
1. All persons engaging in business as a cannabis business, whether an existing, newly established or acquired business, shall register with the Tax Administrator within thirty (30) days of commencing operation and shall annually renew such registration within 30 days of the business registration anniversary date of each year thereafter. In registering, such persons shall furnish to the Tax Administrator a sworn statement, upon a form provided by the Tax Administrator, setting forth the following information:
i. The name of the business;
ii. The names and addresses of each owner;
iii. The exact nature or kind of business;
iv. The place where such business is to be carried on; and v. Any additional information which the Tax Administrator may require.
2. All persons engaging in retail sales of cannabis or cannabis products by delivery from locations outside of the City to addresses within the City shall apply for and retain a business license (business tax certificate) prior to conducting any such sales. To obtain a business license all such businesses shall do all of the following:
i. Complete a Business Tax Certificate Application and Cannabis Delivery Business Registration Form;
ii. Provide a copy of a valid DCC license and a valid license from a local agency authorizing the business to conduct cannabis operations as a retailer; and
iii. Submit completed forms and license/permit processing fees as established by the Tax Administrator.
B. An annual registration fee in accordance with the current and approved City fee schedule shall be presented with the sworn statement submitted under this 1310
Cannabis Business Tax Ordinance
chapter. This fee shall not be considered a tax and may be adjusted by resolution of the City Council.
C. The cannabis business tax imposed by this chapter shall be paid, in arrears, on a monthly basis. Each person owing a cannabis business tax shall on or before the last day of the month following the close of each month file with the Tax Administrator a statement (“tax statement”) of the tax owed for that calendar month and the basis for calculating that tax. The Tax Administrator may require that the tax statement be submitted on a form prescribed by the Tax Administrator. The tax for each calendar month shall be due and payable on the same date that the tax statement is due.
D. Upon cessation of a cannabis business, tax statements and payments shall be immediately due for all calendar months up through the calendar month during which cessation occurred.
E. In the event that there is a change in ownership of any cannabis business:
a. The new owner is required to submit an updated registration form to the Tax Administrator;
b. The new owner is subject to an audit by the Tax Administrator; and c. Unless otherwise provided by law, it is the joint and several liability of both the seller and buyer to remit any taxes, interest, penalties, and fees due up until the date of sale; otherwise, enforcement action may be taken pursuant to Section 3.14.160 of this chapter against both the seller and/or buyer in an amount to be determined by the Tax Administrator.
F. The Tax Administrator may, at his or her discretion, establish alternative reporting and payment periods for any taxpayer as the Tax Administrator deems necessary to ensure effective collection of the cannabis business tax. The Tax Administrator may also require that a deposit, to be applied against the taxes for a calendar month, be made by a taxpayer at the beginning of that calendar month. In no event shall the deposit required by the Tax Administrator exceed the tax amount he or she projects will be owed by the taxpayer for the calendar month. The Tax Administrator may require that a taxpayer make payments via a cashier’s check, money order, wire transfer, or similar instrument.
3.14.070 Payments and communications – timely remittance.
Whenever any payment, statement, report, request or other communication is due, it must be received by the Tax Administrator on or before the final due date. A postmark will not be accepted as timely remittance. If the due date would fall on a Saturday, Sunday or a holiday observed by the City, the due date shall be the next regular business day on which the City is open to the public.
1311
Cannabis Business Tax Ordinance
3.14.080 Payment - when taxes deemed delinquent.
Unless otherwise specifically provided under other provisions of this chapter, the taxes required to be paid pursuant to this chapter shall be deemed delinquent if not received by the Tax Administrator on or before the due date as specified in Sections 3.14.060 and 3.14.070.
3.14.090 Notice not required by the City.
The City may as a courtesy send a tax notice to the cannabis business which owes the City a cannabis business tax. However, the Tax Administrator is not required to send a delinquency or other notice or bill to any person subject to the provisions of this chapter. Failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this chapter.
3.14.100 Penalties and interest.
A. Any person who fails or refuses to pay any cannabis business tax required to be paid pursuant to this chapter on or before the due date shall pay penalties and interest as follows:
1. A penalty equal to ten percent (10%) of the amount of the tax, in addition to the amount of the tax, plus interest on the unpaid tax calculated from the due date of the tax at the rate of one percent (1%) per month.
2. If the tax remains unpaid for a period exceeding one calendar month beyond the due date, an additional penalty equal to twenty-five percent (25%) of the amount of the tax, plus interest at the rate of one percent (1%) per month on the unpaid tax and on the unpaid penalties.
3. Interest shall be applied at the rate of one percent (1%) per month on the first day of the month for the full month and will continue to accrue monthly on the tax and penalty until the balance is paid in full.
B. Whenever a check or electronic payment is submitted in payment of a cannabis business tax and the payment is subsequently returned unpaid by the bank for any reason, the taxpayer will be liable for the tax amount due plus any fees, penalties and interest as provided for in this chapter, and any other amount allowed under state law.
C. The Tax Administrator may waive the penalties imposed upon any person under this Section 3.14.100 if:
1. The person requests a waiver of penalties by submitting a written request for waiver to the Tax Administrator no later than June 30 of the second fiscal year following the fiscal year in which the tax became delinquent; and
2. The person provides evidence satisfactory to the Tax Administrator that the failure to pay timely was due to circumstances beyond the control of the person and 1312
Cannabis Business Tax Ordinance
occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect; and the person paid the delinquent taxes, penalties, accrued interest, and fees owed prior to applying to the Tax Administrator for a waiver.
D. The waiver provisions specified in Section 3.14.100 (C) shall not apply to interest accrued on the delinquent taxes and a waiver shall be granted only once during any twenty-four month period. The Tax Administrator’s decision on a request for a waiver of penalties is final and conclusive and not subject to appeal under Section 3.14.150.
3.14.110 Refunds and credits.
A. No refund shall be made of any tax collected pursuant to this chapter, except as provided in Section 3.14.120.
B. No refund of any tax collected pursuant to this chapter shall be made because of the discontinuation, dissolution, or other termination of a business.
3.14.120 Refund procedures.
A. Whenever the amount of any cannabis business tax, penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the City under this chapter, it may be refunded to the claimant who paid the tax provided that a written claim for refund signed under the penalty of perjury is filed with the Tax Administrator within one (1) year of the date the tax was originally due or paid, whichever came first. A person may only file a claim for refund if the person paid the tax. No person shall be entitled to a refund unless the person can support the claim by written records sufficient to show entitlement thereto. The Tax Administrator's decision on a claim for refund is final and conclusive and not subject to appeal under Section 3.14.150.
B. The Tax Administrator, his or her designee which may include a third party or any other City officer charged with the administration of this chapter shall have the right to examine and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant's books and business records after request by the Tax Administrator to do so. The Tax Administrator may collect a fee adopted by resolution by the City Council to pay for the cost of examination and audit should the books and records be provided in a form insufficient to allow the Tax Administrator to make a determination on the claim for refund.
C. In the event that the cannabis business tax was erroneously paid in an amount in excess of the tax due, and the error is attributable to the City, the City shall refund the amount of tax erroneously paid; provided that (i) a claim for refund has been timely filed with the Tax Administrator; and (ii) the refund cannot exceed, under any circumstance, the amount of tax overpaid during the twelve months preceding the last month for which the claim states the tax was overpaid.
1313
Cannabis Business Tax Ordinance
3.14.130 Personal Cultivation Not Taxed.
The provisions of this chapter shall not apply to personal cannabis cultivation or personal use of cannabis, to the extent those activities are authorized in the “Medicinal and Adult Use Cannabis Regulation and Safety Act,” as may be amended. This chapter shall not apply to personal use of cannabis that is specifically exempted from state licensing requirements, that meets the definition of personal use or equivalent terminology under state law, and provided that the individual receives no compensation whatsoever related to that personal cultivation or use.
3.14.140 Administration of the tax.
A. It shall be the duty of the Tax Administrator to collect the taxes, penalties, fees, and perform the duties required by this chapter.
B. For purposes of administration and enforcement of this chapter generally, the Tax Administrator may from time to time promulgate such administrative interpretations, rules, and procedures consistent with the purpose, intent, and express terms of this chapter as he or she deems necessary to implement or clarify such provisions or aid in enforcement.
C. The Tax Administrator may take such administrative actions as needed to administer the cannabis business tax, including but not limited to:
1. Provide to all cannabis business taxpayers forms for the reporting of the tax;
2. Provide information to any taxpayer concerning the provisions of this chapter;
3. Receive and record all taxes remitted to the City as provided in this chapter;
4. Maintain records of taxpayer reports and taxes collected pursuant to this chapter;
5. Assess penalties and interest to taxpayers pursuant to this chapter;
6. Determine amounts owed under and enforce collection pursuant to this chapter.
3.14.150 Appeal procedures.
A taxpayer aggrieved by a decision of the Tax Administrator with respect to the amount of tax, interest, penalties, and fees, if any, due under this chapter may appeal only if a hearing was requested and attended pursuant to Section 3.14.250. An appeal may be made by filing a notice of appeal with the City Clerk within thirty (30) calendar days of the serving or mailing of the Tax Administrator’s decision of the amount due. Upon receipt of a timely notice of appeal, the City Clerk shall fix a time and place for hearing such appeal with the City Manager or his or her designee serving as the hearing officer. The City Clerk shall give at least ten (10) calendar days’ notice of the appeal hearing in writing to such taxpayer at the last known place of address.
The hearing officer shall render a written decision that shall be served on the taxpayer at the last known place of address. The decision of the hearing officer shall be final and conclusive. Any 1314
Cannabis Business Tax Ordinance
amount found to be due by the hearing officer shall be immediately due and payable upon the service of the decision. If no notice of appeal is filed within the time prescribed in this Section, the Tax Administrator’s decision with respect to the amount of tax, interest, penalties, and fees due is final and conclusive.
3.14.160 Enforcement - action to collect.
Any taxes, interest, penalties, and/or fees required to be paid under the provisions of this chapter shall be deemed a debt owed to the City. Any person owing money to the City under the provisions of this chapter shall be liable in an action brought in the name of the City for the recovery of such debt. The provisions of this chapter shall not be deemed a limitation upon the right of the City to bring any other action including criminal, civil and equitable actions, based upon the failure to pay the tax, interest, penalties, and/or fees imposed by this chapter or the failure to comply with any of the provisions of this chapter.
3.14.170 Apportionment.
If a person subject to the tax is operating both within and outside the City, it is the intent of the City to apply the cannabis business tax so that the measure of the tax fairly reflects the proportion of the taxed activity actually carried on in the City. To the extent federal or state law requires that any tax due from any taxpayer be apportioned, the taxpayer may indicate said apportionment on his or her tax return. The Tax Administrator may promulgate administrative procedures for apportionment as he or she finds useful or necessary.
3.14.180 Constitutionality and legality.
This tax is intended to be applied in a manner consistent with the United States and California Constitutions and state law. None of the tax provided for by this chapter shall be applied in a manner that causes an undue burden upon interstate commerce, a violation of the equal protection or due process clauses of the Constitutions of the United States or the State of California or a violation of any other provision of the California Constitution or state law. If a person believes that the tax, as applied to him or her, is impermissible under applicable law, he or she may request that the Tax Administrator release him or her from the obligation to pay the impermissible portion of the tax.
3.14.190 Audit and examination of premises and records.
A. For the purpose of ascertaining the amount of cannabis business tax owed or verifying any representations made by any taxpayer to the City in support of his or her tax calculation, the Tax Administrator or his/her designees, which may include a third party, shall have the power to inspect any location where commercial cannabis activity occurs and to audit and examine all books and records (including, but not limited to bookkeeping records, access to METRC data, and/or point-of-sale data, state and/or federal income tax returns, excise tax returns, space utilized for cannabis related activities, and other records relating to the gross receipts of the business) of persons engaged in cannabis businesses. In conducting such 1315
Cannabis Business Tax Ordinance
investigation, the Tax Administrator, or his/her designees, which may include a third party, shall have the power to inspect any space utilized for cannabis business related activities, equipment or software, such as computers, software systems, platforms, and databases (including METRC), and/or point of sale systems, to include any keys or access codes for access to and use of the equipment and/or software, that may contain such records.
B. It shall be the duty of every person liable for the collection and payment to the City of any tax imposed by this chapter to keep and preserve, for a period of at least three (3) years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the City, which records the Tax Administrator or his/her designee, which may include a third party,shall have the right to inspect at all reasonable times.
3.14.200 Other licenses, permits, taxes, fees or charges.
A. Nothing contained in this chapter shall be deemed to repeal, amend, be in lieu of, replace or in any way affect any requirements for any commercial cannabis permit, City license, permit, or other certificate required by, under or by virtue of any provision of any other Chapter of this code or any other ordinance or resolution of the City, nor be deemed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee or other charge imposed, assessed or required under any other Chapter of this code or any other ordinance or resolution of the City.
Any references made or contained in any other Chapter of this code to any licenses, permits, certificates, taxes, fees, or charges, or to any schedule of license, permit, certificate, or fees, shall be deemed to refer to the licenses, permits or certificates, and their respective taxes, fees or charges, or schedule of license fees, provided for in other Chapters of this code.
B. The Tax Administrator may revoke or refuse to renew the license required by this code for any business that is delinquent in the payment of any tax due pursuant to this chapter or that fails to make a deposit required by the Tax Administrator pursuant to Section 3.14.060.
C. A commercial cannabis permit issued under the Visalia Municipal Code may be revoked, suspended or not renewed in the event that the business holding that permit has failed to (i) make a deposit required by the Tax Administrator pursuant to Section 3.14.060 or (ii) timely pay all taxes, interest and penalties owed by that business under this chapter.
3.14.210 Payment of tax does not authorize unlawful business.
A. The payment of a cannabis business tax required by this chapter, and its acceptance by the City, shall not entitle any person to carry on any cannabis business unless the person has complied with all of the requirements of this code and all other applicable state laws.
B. No tax paid under the provisions of this chapter shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any local or state law.
1316
Cannabis Business Tax Ordinance
3.14.220 Deficiency determinations.
If the Tax Administrator is not satisfied that any statement filed as required under the provisions of this chapter is correct, or that the amount of tax is correctly computed, he or she may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession or that may come into his or her possession within three (3) years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a cannabis business, a deficiency determination may be made at any time within three (3) years thereafter as to any liability arising from engaging in such cannabis business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under Section 3.14.240 and 3.14.250.
3.14.230 Failure to report—nonpayment, fraud.
A. Under any of the following circumstances, the Tax Administrator may make and give notice of an assessment of the amount of tax owed by a person under this chapter at any time:
1. If the person has not filed a complete statement required under the provisions of this chapter;
2. If the person has not paid the tax due under the provisions of this chapter;
3. If the person has not, after demand by the Tax Administrator, filed a corrected statement, or furnished to the Tax Administrator adequate substantiation of the information contained in a statement already filed, or paid any additional amount of tax due under the provisions of this chapter; or
4. If the Tax Administrator determines that the nonpayment of any cannabis business tax due under this chapter is due to fraud, a penalty of twenty-five percent (25%) of the amount of the tax shall be added thereto in addition to penalties and interest otherwise payable under this chapter and any other penalties allowed by law.
B. The notice of assessment shall separately set forth the amount of any tax known by the Tax Administrator to be due or estimated by the Tax Administrator, after consideration of all information within the Tax Administrator's knowledge concerning the business and activities of the person assessed, to be due under each applicable provision of this chapter and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment. The notice shall state that the person has thirty (30) calendar days from the date of the notice to make a written request for an informal hearing before the Tax Administrator. The notice shall also state that if the person fails to timely request an informal hearing within the 1317
Cannabis Business Tax Ordinance
time allowed, the amount determined by the Tax Administrator is final and conclusive and is immediately due and payable.
3.14.240 Tax assessment - notice requirements.
The notice of assessment shall be served upon the person either by personal delivery, by overnight delivery by a nationally-recognized courier service, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as he or she shall register with the Tax Administrator for the purpose of receiving notices provided under this chapter; or, should the person have no address registered with the Tax Administrator for such purpose, then to such person's last known address. For the purpose of Section 3.14.240, a service by overnight delivery shall be deemed to have occurred one (1) calendar day following deposit with a courier and service by mail shall be deemed to have occurred three (3) days following deposit in the United States mail.
3.14.250 Tax assessment - hearing, application and determination.
Within thirty (30) calendar days after the date of service of the notice of assessment the person may apply in writing to the Tax Administrator for an informal hearing on the assessment.
If application for an informal hearing is not made within the time herein prescribed, the tax assessed by the Tax Administrator shall become final and conclusive. Within thirty (30) calendar days of the receipt of any such application for an informal hearing, the Tax Administrator shall cause the matter to be set for an informal hearing before him or her, or his/her designee, no later than thirty (30) calendar days after the receipt of the application, unless a later date is agreed to by the Tax Administrator and the person requesting the informal hearing. Notice of such informal hearing shall be given by the Tax Administrator to the person requesting such informal hearing no later than five (5) calendar days prior to such informal hearing. A hearing under this section shall be informal and need not follow any formal rules of evidence. At such hearing said applicant may appear and offer evidence why the assessment as made by the Tax Administrator should not be confirmed and fixed as the tax due. After such hearing the Tax Administrator shall determine and reassess (if necessary) the proper amount of tax, interest, penalties, and fees to be charged and shall give written notice of the decision to the person in the manner prescribed in Section
3.14.240 for giving notice of assessment. No appeal of a notice of assessment may be made under Section 3.14.150 unless an informal hearing is timely requested and the person attends the hearing. If the person fails to appear at the informal hearing, the amount due determined by the Tax Administrator in the notice of assessment is final and conclusive.
3.14.260 Relief from taxes – disaster relief.
A. If a person is unable to comply with any tax requirement imposed under this chapter due to a disaster impacting its cannabis business, the person may notify the Tax Administrator of its inability to comply and request relief from the tax requirement. For purposes of this chapter, “disaster” means fire, flood, storm, tidal wave, earthquake, or similar public 1318
Cannabis Business Tax Ordinance
calamity resulting in physical damage to real property, whether or not resulting from natural causes.
B. The person shall provide any information required by the Tax Administrator including, without limitation, why relief is requested, the time period for which the relief is requested, and the reason relief is needed for the specific amount of time. The person agrees to grant the Tax Administrator or his/her designee access to the location where the cannabis business has been impacted due to a disaster.
C. The Tax Administrator, in his/her sole discretion, may provide relief from the cannabis business tax requirement for businesses whose operations have been impacted by a disaster if such tax relief does not exceed ten thousand ($10,000) dollars. Such temporary relief may be granted for a reasonable amount of time, in the Tax Administrator’s sole discretion, and the amount and duration of relief should be based upon how long it would reasonably take for the cannabis business to recover from the disaster. The Tax Administrator may require that the cannabis business follow certain conditions to receive temporary relief from the cannabis business tax requirement. The Tax Administrator's decision on a request for relief and the conditions that may be imposed for relief under this section are final and conclusive and not subject to appeal under Section 3.14.150.
3.14.270 Conviction for violation - taxes not waived.
The conviction and punishment of any person for failure to pay the required tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this chapter or of any state law requiring the payment of all taxes.
3.14.280 Violation deemed misdemeanor.
Any person violating any of the provisions of this chaptershall be guilty of a misdemeanor pursuant to the penalty provision for municipal code violations stated in Chapter 1.12 of the Visalia Municipal Code.
3.14.290 Severability.
If any provision of this chapter, or its application to any person or circumstance, is determined by a court of competent jurisdiction to be unlawful, unenforceable, or otherwise void, that determination shall have no effect on any other provision of this chapter or the application of this chapter to any other person or circumstance and, to that end, the provisions hereof are severable.
3.14.300 Remedies cumulative.
All remedies and penalties prescribed by this chapter or which are available under any other provision of this code and any other provision of law or equity are cumulative. The use of 1319
Cannabis Business Tax Ordinance
one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter.
3.14.310 Amendment or modification.
Except as set forth in Section 3.14.310, this chapter may be amended or modified but not repealed by the City Council without a vote of the people. However, as required by Article XIII C of the California Constitution, voter approval is required for any amendment that would expand, extend, or increase the rate of any tax levied pursuant to this chapter beyond the maximums set forth in this chapter. The people of the City of Visalia affirm that the following actions shall not constitute an increase of the rate of a tax:
A. The restoration or adjustment of the rate of the tax to a rate that is no higher than that allowed by this chapter, in those circumstances where, among others, the City Council has previously acted to reduce the rate of the tax or is incrementally implementing an increase authorized by this chapter;
B. An action that interprets or clarifies (i) the methodology of applying or calculating the tax or (ii) any definition applicable to the tax, so long as the interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the provisions of this chapter; or
C. The collection of the tax imposed by this chapter even if the City had, for some period of time, failed to collect the tax.
SECTION 2. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. The people of the City of Visalia hereby declare that they would have passed this ordinance and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid.
SECTION 3. ENVIRONMENTAL COMPLIANCE. The City Council hereby finds and determines that this resolution is exempt from the California Environmental Quality Act, Public Resources Code Sections 21000 et seq. (“CEQA”) and 14 Cal. Code Re. Sections 15000 et seq. (“CEQA Guidelines”). The calling and noticing of an election for the submission of a ballot measure to voters is not a project within the meaning of CEQA Guidelines 15378. The tax submitted to the voters is a general tax that can be used for any governmental purpose; it is not a commitment to any particular action or actions.
1320
Cannabis Business Tax Ordinance
As such, under CEQA Guidelines Section 15378 (b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue generated by the tax were used for a purpose that would have such an effect, the City of Visalia would undertake the required CEQA review for that particular project. Therefore, pursuant to CEQA Guideline Section 15060 CEQA analysis is not required.
SECTION 4. EFFECTIVE DATE. Pursuant to the California Constitution, Article XIIIC(2)(b) and California Elections Code 9217, if a majority of the voters voting in the election on Measure “Insert_” vote in favor of the adoption of such measure, this ordinance shall be deemed valid and binding and shall be considered adopted upon the date that the vote is declared by the City Council and shall go into effect ten (10) days after that date.
This Ordinance was approved and adopted by the People of the City of Visalia at the City’s November 5, 2024 statewide election.
This Ordinance was approved by Declaration of the vote by the City Council of the City of Visalia on ______________.
____________________________________
Brian Poochigian, Mayor
ATTEST:
____________________________
Leslie Caviglia, City Clerk
1321
Visalia City Council
Staff Report
Visalia City Council
303 E. Acequia
Visalia, CA 93291
File #: 24-0208 Agenda Date: 6/3/2024 Agenda #: 3.
Agenda Item Wording:
Measure N Public Hearing: Conduct the second of two public hearings on the proposed Fiscal Years 2024/25 and 2025/26 Measure N budget.
Deadline for Action: 6/30/2024
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Renee Nagel, 713-4375; Amee Swearingen, 713-4170 Department Recommendation:
That the City Council conduct the second of two public hearings to receive comment on the proposed Measure N budgets for FY 2024/25 and 2025/26.
Background Discussion:
In November of 2016, the voters of Visalia passed a ½ cent Sales Tax Override, Measure N - The Visalia Essential City Services Measure. Sales Tax from Measure N will provide for essential city services such as police and fire, as well as maintenance of parks and roads. The measure uses a detailed, 10-year plan which includes hiring of personnel, construction of capital projects and equipment purchases.
As part of the measure, Council adopted an Accountability Ordinance (Ordinance 16-21) to establish accountability measures as outlined:
Revenues:
· 10% of budgeted revenues must be maintained in an Uncertainty Fund. Money can only be accessed during a fiscal emergency;
· 10% of budgeted revenues must be deposited into the following categories:
o 2% Youth Programs
o 8% Maintenance and Emerging Needs
Expenditures:
· Money shall not be used for debt service payments;
· Annual expenditure plan must be approved by Council after the following has occurred:
o City Manager makes a recommendation to City Council and makes changes as requested (tonight’s discussion);
o Comments and recommendation received by Sales Tax Oversight Board; o Two public hearings are held at regular Council Meetings to consider expenditure plan (tonight’s 2 of 2 public hearings)
Visalia City Council Page 1 of 6 Printed on 5/31/2024
powered by Legistar™1322
File #: 24-0208 Agenda Date: 6/3/2024 Agenda #: 3.
The Measure N Budget requires two public hearings and has to be adopted by June 30, 2024 to be able to spend in FY 2024/25. In order to meet this timeline, staff presents the Measure N budget separately from the Citywide budget. The proposed Measure N budget for FY 2024/25 and 2025/26 was reviewed with Council on May 6, 2024. The Measure N Oversight Committee reviewed the proposed budget on May 9, 2024 and approved the recommended budget. The first public hearing was held on May 20, 2024. 2024/25 & 2025/26 Proposed Budget
The budget includes the amended expenditure plan that includes changes over the past 7 years as shown in Table 1 2024/25 Proposed Measure N Plan (Year 8). The recommended budget for the 2024/25 budget is $15.8 million. This budget does not include any expenditures for the Emerging Needs category which will be brough back to Council and the Oversight Committee once a policy and/or plan has been established.
Table 1
2024/25 Proposed Measure N Amended Plan (Year 8)
FY 24/25 Ammended Plan (Year 8)
Police 26Police Officers 4,871,7002% Youth Programs 13Professional Staff 1,377,500Youth Programs 282,400 1 Police Cars & Equipment 88,000 Operating Expenses 823,1008% Maintenance & Emerging Needs Body Cameras 373,400Building Maintenance 1,184,900 7,533,700 Emerging Needs* - Total 1,184,900 RoadsStreet Maintenance 4,000,000
2 Park Maintenance Emp. 200,900 1 Urban Forest Emp. 102,700 Grand Total 15,805,500 1 Recreation Coordinator 124,300 Trailsway Maintenance 57,000 Tree Maintenance 57,000 Building Maintenance 57,000 New Park Maintenance 57,000 Operating Expenses 140,600 796,500 Fire 9BC, Admin Capt, & Sqaud Staffing 1,436,700 Operating Expenses 310,900 1,747,600 Other State Fees, Audits, Accounting 260,400 260,400
Essential Serivces Total 14,338,200
Parks
& Rec
*Note: Emerging Needs money will not be
appropriated until staff returns to Council with a
recommended policy/plan.
In FY 2024/25, the plan adds 1 professional staff and 1 police officer. The professional staff position will be an additional digital evidence technician for the Police Department. In addition, staff is requesting four additional amendments to the plan. One is a position change for the Fire Department from a Battalion Chief (BC) to Deputy Chief. The Battalion Chief in Measure N is the Administrative Visalia City Council Page 2 of 6 Printed on 5/31/2024
powered by Legistar™1323
File #: 24-0208 Agenda Date: 6/3/2024 Agenda #: 3.
from a Battalion Chief (BC) to Deputy Chief. The Battalion Chief in Measure N is the Administrative Battalion Chief. Currently, all BC’s rotate every 2 years and that is not enough time to become reliably competent in the administrative functions. This position change will help ensure that the Deputy Chief is well versed in all administrative functions. It will also help the Fire Chief in large projects as well as assisting the other BC’s with operations.
Second is to increase the street maintenance from $3.8 million to $4.0 million. Over the years, the street maintenance budget has fluctuated between $3.6 million and $4.1 million. With maintenance costs rising over the last few years, staff feels it is important to keep the higher budget versus reducing.
Third is to add back the building maintenance project in the Maintenance and Emerging Needs Fund (8%). As outlined in the plan, the building maintenance project was funded in the first five years and was not funded in years 6-10. Staff recommends funding the building maintenance project in FY 2024/25 for $1.2 million. This project was originally established to replace and update facilities that are funded by the General Fund. Unfortunately, the 5 years of funding was not enough to cover the high costs to replace/repair roofs, replace HVACs, and repair facilities.
Fourth is to add additional youth services at the Manual Hernandez Center. Currently, Measure N funding has been approved to fund the STEAM based club at the Manuel Hernandez Center. Staff is requesting approval to fund additional youth services at the center by extending the non-STEAM based activities to Saturdays.
Throughout the school year, youth can participate in clubs and activities Monday thru Friday from school release time to 5:30 p.m. and during school breaks Monday thru Friday 10 a.m. to 5 p.m. Staff is requesting to fund Saturdays 10 a.m. to 5 p.m. During this time youth will be able to participate in a variety of structured activities and free-play in a safe and supervised environment. If approved, the program will be open on Saturdays beginning July 6, 2024. This extension is a pilot to determine if the program is well attended and of service to the community.
The recommended budget for FY 2025/26 is $16.5 million as shown in Table 2, 2025/26 Proposed Measure N Plan (Year 9).
Table 2
2025/26 Proposed Measure N Amended Plan (Year 9)
FY 25/26 Ammended Plan (Year 9)
Police 27Police Officers 5,220,1002% Youth Programs 14Professional Staff 1,527,900Youth Programs 287,200 1 Police Cars & Equipment 92,400 Operating Expenses 825,2008% Maintenance & Emerging Needs Body Cameras 384,800Building Maintenance 1,243,000 8,050,400 Emerging Needs* - Total 1,243,000 RoadsStreet Maintenance 4,000,000 2 Park Maintenance Emp. 207,500 1 Urban Forest Emp. 107,600 Grand Total 16,488,100 1 Recreation Coordinator 131,500 Trailsway Maintenance 59,000 Tree Maintenance 59,000 Building Maintenance 59 000
Parks
& Rec
*Note: Emerging Needs money will not be
appropriated until staff returns to Council wi
Visalia City Council Page 3 of 6 Printed on 5/31/2024
powered by Legistar™1324
File #: 24-0208 Agenda Date: 6/3/2024 Agenda #: 3.
FY 25/26 Ammended Plan (Year 9)
Police 27Police Officers 5,220,1002% Youth Programs 14Professional Staff 1,527,900Youth Programs 287,200 1 Police Cars & Equipment 92,400 Operating Expenses 825,2008% Maintenance & Emerging Needs Body Cameras 384,800Building Maintenance 1,243,000 8,050,400 Emerging Needs* - Total 1,243,000 RoadsStreet Maintenance 4,000,000 2 Park Maintenance Emp. 207,500 1 Urban Forest Emp. 107,600 Grand Total 16,488,100 1 Recreation Coordinator 131,500 Trailsway Maintenance 59,000 Tree Maintenance 59,000 Building Maintenance 59,000 New Park Maintenance 59,000 Operating Expenses 143,100 825,700 Fire 9BC, Admin Capt, & Sqaud Staffing 1,498,800 Operating Expenses 316,000 1,814,800 Other
State Fees, Audits, Accounting 267,000 267,000
Essential Serivces Total 14,957,900
Parks
& Rec
*Note: Emerging Needs money will not be
appropriated until staff returns to Council wi
recommended policy/plan.
In FY 2025/26, the plan adds 1 professional staff and 1 police officer. The professional staff position will be an additional community service officer for the Police Department. As in FY 24/25, staff is requesting to amend the plan to fund the building maintenance project for $1.2 million from the Maintenance and Emerging Needs Fund (8%). The street maintenance project does not need to be amended as the plan has the street maintenance at $4 million for year 9.
Measure N Sales Tax
Measure N sales tax is projected to be higher than the plan as shown in Table 3 Measure N Sales Tax Projections. This large difference is due to the plan being established in FY 15/16 and purposely using a very conservative growth percentage to offset unplanned cost increases. This conservative approach is to ensure that this Measure never has to reduce or eliminate expenditures outlined in the plan.
In addition, the past couple of years had larger-than-normal growth due to the multi-year COVID stimulus money that the Federal Government issued. This one-time money has ended and sales tax is projected to end the fiscal year with a negative for the second year in a row. Last fiscal year, Measure N ended with a -1.2% growth and is projected to end this fiscal year with -7%. Based on the past two years, staff is projecting no growth in 24/25 and a 1% growth in 25/26. However, this is Visalia City Council Page 4 of 6 Printed on 5/31/2024
powered by Legistar™1325
File #: 24-0208 Agenda Date: 6/3/2024 Agenda #: 3.
very optimistic that the economy does not take a down turn.
Table 3
Measure N Sales Tax Projection
20/21
Original
Plan
20/21
Actuals
21/22
Original
Plan
21/22
Actuals
22/23
Original
Plan
22/23
Actuals
23/24
Original
Plan
23/24
Projected
24/25
Original
Plan
24/25
Proposed
25/26
Original
Plan
25/26
Proposed
Sales Tax 11.5 16.9 11.7 19.7 11.9 19.5 12.2 18.4 12.4 18.4 12.7 18.6 Difference 5.4 8.0 7.6 6.2 6.0 5.9
In order to meet the requirements and to be able to track revenues and expenditures, per the plan categories, Measure N is tracked in 4 separate funds. Essential Services, 2% Youth Programs, 8% Maintenance and Emerging Needs, and the Economic Uncertainty. All funds but the Essential Services Fund receive their revenues as a percentage of budgeted revenues. The Essential Services Fund would receive any of the additional. Table 4 Measure N Fund Balance Summary, shows each funds ending cash for both years based on the proposed 2 year budget.
Table 4
Measure N Fund Balance Summary
2024/25 - Year 8 Beginning Cash Projected Revenues ExpendituresTransferEnding Cash Essential Services 29,179,250 16,691,300 14,338,200 31,532,350 8% Maint & Emerging Needs 6,455,920 1,449,900 1,184,900 6,720,920 2 % Youth Programs 1,419,390 362,500 282,400 1,499,490
Measure N Operating Funds 37,054,560 18,503,700 15,805,500 39,752,760 2025/26 - Year 9 Beginning Cash Projected Revenues ExpendituresTransferEnding Cash Essential Services 31,532,350 16,854,400 14,957,900 33,428,850 8% Maint & Emerging Needs 6,720,920 1,464,400 1,243,000 6,942,320 2 % Youth Programs 1,499,490 366,100 287,200 1,578,390
Measure N Operating Funds 39,752,760 18,684,900 16,488,100 41,949,560 Measure N Economic Uncertainty Fund
The plan calls for the economic uncertainty fund to be maintained at 10% of budgeted revenues. As mentioned above, staff is projecting sales tax to be down 7% this fiscal year, no growth next year (FY 24/25), and 1% growth in FY 25/26. The negative sales tax projection for this fiscal year lowers the base line that is being used in the next two years. This causes the economic uncertainty fund to be overfunded and will require no additional funds for the next two years. This method is not typically used when calculating a reserve to fund operations. Staff is recommending changing this method to a percentage of operating expenditures. If changed to a percentage of operating expenditures, the current amount in the fund would equal approximately 19%. The General Fund’s emergency reserve policy was recently increased to be no more than 30% of operating expenditures. Staff is requesting to amend the Measure N policy for the economic uncertainty fund to be 30% of operating Visalia City Council Page 5 of 6 Printed on 5/31/2024
powered by Legistar™1326
File #: 24-0208 Agenda Date: 6/3/2024 Agenda #: 3.
expenditures instead of 10% of budgeted revenues. This would equal a projected transfer of $1.1 million for FY 24/25 and $0.2 million for FY 25/26.
Council and the Measure N Oversight Committee have approved the proposed FY 2024/25 and 2025/26 budgets. This is the second of two public hearings. Measure N will be adopted with the budget on June 17th
Fiscal Impact:
None
Prior Council Action: May 6th, 2024 - Proposed Measure N Budget for FY 2024/25 & 2025/26, May 20th, 2024 - 1st public hearing
Other: Measure N Oversight Committee meeting held May 9th, 2024 Alternatives: None
Recommended Motion (and Alternative Motions if expected):
No motion. Public Hearing to receive comments.
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: N/A
Visalia City Council Page 6 of 6 Printed on 5/31/2024
powered by Legistar™1327
M E A S U R E N
F Y 2 4 / 2 5 & 2 5 / 2 6
P R O P O S E D B U D G E T
J U N E 3 , 2 0 2 4
Measure N is a ½ cent Sales Tax Override to provide essential City services (police, fire, recreation, parks, and roads)
1328
M E A S U R E N B U D G E T P R O C E S S
• May 6th – Reviewed Budget with Council
• May 9th – Reviewed Budget with Measure N Oversight Committee • May 20th– Hold 1st Public Hearing
• June 3rd – Hold 2nd Public Hearing
• June 17th – Adopt budget with the City Budget
1329
N E W P O S I T I O N S & A M E N D M E N T S
New positions allocated per the plan:
• FY 24/25 (year 8) - 1 Police Officer & 1 Digital Evidence Technician • FY 25/26 (year 9) - 1 Police Officer & 1 CSO
Amendments to Plan:
1. Change Battalion Chief position to Deputy Chief (annual increase $10,500)
2. Increase street maintenance for FY 24/25 from $3.8 million to $4.0 million
3. Add back building maintenance project of $1.2 million for both years
4. Add Saturday youth services at Manual Hernandez Center(annual increase $25,000)
5. Change Uncertainty fund calculation from 10% of budgeted revenues to 30% of operating expenditures 1330
F Y 2 4 / 2 5
P R O P O S E D
B U D G E T
Police 26 Police Officers 4,871,700 2% Youth Programs
13 Professional Staff 1,377,500 Youth Programs 282,400
1 Police Cars & Equipment 88,000
Operating Expenses 823,100 8% Maintenance & Emerging Needs Body Cameras 373,400 Building Maintenance 1,184,900
7,533,700 Emerging Needs* -
Total 1,184,900
Roads Street Maintenance 4,000,000
2 Park Maintenance Emp. 200,900
1 Urban Forest Emp. 102,700 Grand Total 15,805,500
1 Recreation Coordinator 124,300
Trailsway Maintenance 57,000
Tree Maintenance 57,000
Building Maintenance 57,000
New Park Maintenance 57,000
Operating Expenses 140,600
796,500
Fire 9
Deputy Chief, Admin Capt, &
Sqaud Staffing 1,436,700
Operating Expenses 310,900
1,747,600
Other State Fees, Audits, Accounting 260,400
260,400
Essential Serivces Total 14,338,200
Parks
& Rec
*Note: Emerging Needs money will not be
appropriated until staff returns to Council with a
recommended policy/plan.
1331
F Y 2 5 / 2 6
P R O P O S E D
B U D G E T
Police 27 Police Officers 5,220,100 2% Youth Programs
14 Professional Staff 1,527,900 Youth Programs 287,200
1 Police Cars & Equipment 92,400
Operating Expenses 825,200 8% Maintenance & Emerging Needs Body Cameras 384,800 Building Maintenance 1,243,000
8,050,400 Emerging Needs* -
Total 1,243,000
Roads Street Maintenance 4,000,000
2 Park Maintenance Emp. 207,500
1 Urban Forest Emp. 107,600 Grand Total 16,488,100
1 Recreation Coordinator 131,500
Trailsway Maintenance 59,000
Tree Maintenance 59,000
Building Maintenance 59,000
New Park Maintenance 59,000
Operating Expenses 143,100
825,700
Fire 9
Deputy Chief, Admin Capt, &
Sqaud Staffing 1,498,800
Operating Expenses 316,000
1,814,800
Other
State Fees, Audits, Accounting 267,000
267,000
Essential Serivces Total 14,957,900
Parks
&
*Note: Emerging Needs money will not be
appropriated until staff returns to Council with a
recommended policy/plan.
1332
T O N I G H T ’ S A C T I O N
Conduct 2nd public hearing for FY 24/25 & 25/26 budget. 1333
QUESTIONS
1334
Visalia City Council
Staff Report
Visalia City Council
303 E. Acequia
Visalia, CA 93291
File #: 24-0207 Agenda Date: 6/3/2024 Agenda #: 4.
Agenda Item Wording:
Urgency Ordinance Extension - Public Hearing and Consideration of the extension of Ordinance No. 2024-05, adopted as emergency measures to regulate the location and operational requirements for massage establishments pursuant to Government Code section 65858(b). This statute permits the adoption of an urgency interim zoning ordinance for up to 22 months and fifteen days after notice, public hearing, and adoption by four-fifths vote of the City Council, Citywide.
Deadline for Action: 6/3/2024
Submitting Department: Community Development
Contact Name and Phone Number:
Paul Bernal, Planning and Community Preservation Director, [email protected] <mailto:[email protected]>, (559) 713-4025
Department Recommendation:
Staff recommends that the City Council extend Ordinance No. 2024-05, an interim ordinance adopted as emergency measures to regulate the location and operational requirements for massage establishments.
Summary:
On April 23, 2024, the City Council adopted Ordinance No. 2024-05. The urgency ordinance was considered under Government Code section 65858(b), which permits the adoption of interim zoning ordinances as an urgency measure upon findings that there is a current and immediate threat to public health, safety, or welfare. The City Council made the findings, as stated in the attached ordinance, that these uses pose an immediate threat to the public health, safety, or welfare.
However, pursuant to Government Code section 65858(b), the urgency ordinance voids after 45 days after its adoption unless extended by a subsequent 4/5 approval by the legislative body after a public hearing with notice of hearing published at least 10 days prior to the hearing along with posting the notice of hearing at least 10 days before the hearing in at least three public places. The interim ordinance is set to expire on June 7, 2024. A public hearing notice was published in the Visalia Times Delta, and the hearing notice was posted in three public places for the June 3rd, 2024, hearing date.
Staff request the City Council extend Ordinance No. 2024-05, for an additional 22 months and fifteen days pursuant to Government Code section 65858(b). Staff will be bringing municipal code updates to both Title 5 Title 5 Business Regulations Section 5.68 “Massage Establishments”, and Title 17 Zoning. Staff anticipates the ordinance updates to be processed in late June early July 2024 which are beyond the initial 45 days the urgency ordinance was adopted.
Visalia City Council Page 1 of 5 Printed on 5/31/2024
powered by Legistar™1335
File #: 24-0207 Agenda Date: 6/3/2024 Agenda #: 4.
Current City of Visalia Regulations:
The City of Visalia Municipal Code Title 5 Business Regulations Section 5.68 “Massage Establishments” contains permitting standards intended to comply with California law and establishes health and safety guidelines for massage establishments. A copy of Section 5.68 is attached to this report. The Zoning Ordinance, Section 17.25.030 Zoning Use Matrix, identities “Massage Therapist” uses as Conditionally Permitted (requiring a Conditional Use Permit), in the Neighborhood Commercial (C-N), Commercial Mixed Use (C-MU), Downtown Mixed Use (D-MU), Professional / Administrative Office (O-PA), and Office Conversion (O-C) zones, while the Regional Commercial (CR) zone allows massage therapist businesses as a Permitted use.
A review of current business licenses has identified approximately 103 licenses that are either issued, applied for and/or delinquent for massage establishments/therapists in the City of Visalia.
Urgency Ordinance Request:
An article published in the Human Trafficking Institute website identifies that illicit massage businesses thrive largely with impunity because these operators exploit vulnerabilities in regulatory framework and lack of enforcement oversight. There is evidence to support that some massage establishments serve as fronts for prostitution or human sex trafficking and the potential for crime and unsafe activity at these establishments is particularly concerning given that some of these establishments are located within close proximity to places where families congregate, such as restaurants and shopping center areas. In addition, concentrating land uses with such concerns may also increase the potential for greater combined impacts from illicit activities. A study by the Urban Institute, Estimating the Size and Structure of the Underground Commercial Sex Economy in Eight Major Us Cities (2014), documented the extent of the commercial sex industry including massage parlors. The study suggests that much of these illicit activities in cities have moved indoors and is furthered by internet related communication. In the cities studied, there was a rise of massage businesses that sometimes was associated with organized criminal activities and human trafficking.
Since 2018, the Neighborhood Preservation Division received complaints regarding 18 massage establishments; of the 18 complaints received 15 were found to be operating in violation of the City’s municipal code. Three complaints were found to be unsubstantiated with no violations found.
Violations noted ranged from massage therapist not visibly posting their CMATC certification, tenant improvements done without the benefit of an approved building permit, employees living in the establishment, operating without an approved conditional use permit, and illicit activities. Even with enforcement efforts, the potential for increases in crime and ancillary effects to the community continue to be a high concern.
Although some of these businesses have been shut down due illicit activity, there are many massage establishments that operate legitimately, and as such, the City is not seeking to outright prohibit massage establishments from legally operating in the City of Visalia, but rather is seeking additional codified requirements in the interim while revisions to the municipal code are being drafted.
The proposed restrictions, as stated below and as provided in the attached Ordinance No. 2024-05, do not represent a moratorium or ban on massage establishments. In addition, the separation/buffer requirements in the urgency ordinance would not impact existing legal businesses that are currently operating under approved permitting requirements. The emergency regulations are intended to ensure the City of Visalia regulates massage establishments in compliance with adopted state statutes and imposes reasonable conditions on the operation of massage establishments, in the interim, until more specific regulatory changes to the Visalia Municipal Code are further considered Visalia City Council Page 2 of 5 Printed on 5/31/2024
powered by Legistar™1336
File #: 24-0207 Agenda Date: 6/3/2024 Agenda #: 4.
and adopted at a future public hearing.
Interim Measures:
In order to avoid the potential threat that the approval of a conditional use permit allowing a massage business will result in negative impacts to the public’s peace, health, safety, and welfare, the following interim ordinance requirements are being requested to ensure that nuisance activities occurring at massage establishments in the City of Visalia are properly regulated.
In reviewing other jurisdictions ordinances in California for this type of business, staff found that separation or saturation requirements was one of many tools implemented to deter crime, alleviate overconcentration in a particular area of the community, and to provide a buffer from sensitive receptors. Commonly, most jurisdictions used a 300-to-500-foot buffer as a regulation to reduce the potential for overconcentration. The Visalia municipal code applies distance requirements of 1,000- feet for smoke shop/tobacco establishments, 750-feet for adult oriented businesses, and 500-feet for delivery only medical marijuana businesses.
Staff is recommending a 750-foot separation between massage establishments. Staff concludes the 750-foot separation buffer would have the effect of tempering the proliferation of massage establishments within the City, along the Mooney Boulevard corridor where it is clearly apparent that there is an overconcentration of massage establishments as depicted per the attached maps (see attached massage establishment maps), and to potentially reduce the associated effects of illicit activities on adjacent commercial businesses and neighborhoods. Attached are maps of existing licensed Massage Establishments located in Visalia (see Attachments 1 and 2), and the 750-foot buffer from each establishment (see Attachment 3). The 750-foot buffer map (Attachment 3) depicts that when the buffer is applied, there remains areas for a new massage establishment to occur. The information provided on the mapping exhibits identifies areas in the community that appear to be overconcentrated with massage establishments but demonstrates the emergency regulations being considered would not constitute a moratorium or ban on these establishments.
While the City recognizes that commercial massage therapy is a professional pursuit that offers the public valuable health and therapeutic services, it may continue to find that unless property regulated, the operation of massage establishments may be associated with unlawful activity that pose a threat to the quality of life in the community. The following regulations are being proposed for the City Council’s consideration, in the interim and immediate basis:
a. In addition to Conditional Use Permit being required in the Neighborhood Commercial (C-N), Commercial Mixed Use (C-MU), Downtown Mixed Use (D-MU), Professional / Administrative Office (O-PA), and Office Conversion (O-C) zones, a Conditional Use Permit is also required for Massage Establishments/Therapist in the Regional Commercial (C-R) zone. b. No Massage Establishment may be located within a radius of 750 feet of another Massage Establishment, as measured in a straight line, from the nearest point of the premises where said massage establishment is conducted to the nearest property line of any lot or legal parcel upon which a massage establishment is proposed to be located. Existing businesses operating a Massage Establishment that are already conducting business and in possession of all previously required licenses and/or permits for such business in the City of Visalia on the effective date of this emergency ordinance are considered existing non-conforming related to separation from all required sources as long as the permit is not revoked, or the business does not cease operation. The regulations proposed in this interim ordinance that do not concern Visalia City Council Page 3 of 5 Printed on 5/31/2024
powered by Legistar™1337
File #: 24-0207 Agenda Date: 6/3/2024 Agenda #: 4.
the location of the business would apply.
c. No Massage Establishment located in a building or structure with exterior windows fronting a public street, highway, walkway, or parking area shall block visibility into the interior reception and waiting area through the use of curtains, closed blinds, tints, or any other material that obstructs, blurs, or unreasonably darkens the view into the premises. d. Doors. All front, reception, hallway or front exterior doors except back or rear exterior doors used for employee entrance to and exit from the massage establishment) shall be kept unlocked during business hours. A massage establishment may lock its exterior doors during business hours if the establishment is owned by one individual with one or no employees. No massage may be given within any cubicle, room, booth or any area within a massage establishment which is fitted with a door capable of being locked, unless the only door is an exterior door.
e. Minimum lighting consisting of at least one artificial light of not less than forty watts shall be provided and shall be operating in each room or enclosure where Massage Services are being performed on Clients, and in all areas where Clients are present. f. Living Quarters Prohibited. No person or persons shall be allowed to reside, dwell, occupy or live inside a Massage Establishment at any time. Beds and floor mattresses shall not be permitted on the premises.
g. Inspections. The operator and/ or on duty Responsible Employee consents to the inspection of the massage establishment by the City's Building and Safety Division, Code Enforcement Division, Fire Department and Police Department and the County Health Department for the purpose of determining that the provisions of this ordinance or other applicable laws or regulations are met. The City' s Building and Safety Division, Code Enforcement Division, Fire Department and Police Department and the County Health Department may, from time to time, make unannounced inspections of each massage establishment for the purpose of determining that the provisions of this chapter, State law or other applicable laws or regulations are met.
h. No person shall enter, be or remain in any part of a Massage Establishment while in possession of an open container of alcohol, or consuming or using any alcoholic beverages or controlled drugs except pursuant to a prescription for such drugs. The Owner, Operator, or responsible managing Employee shall not permit any such person, or any person who is clearly intoxicated, to enter or remain upon the premises. i. No Massage Establishment shall operate a school of massage or use the same facilities as that of a school of massage.
The regulations, as provided above, shall be considered additional regulations, and will not supersede the current municipal code requirements found in Visalia Municipal Code Title 5 Business Regulations Section 5.68 “Massage Establishments”. Rather, these additional regulations will help strengthen the requirements as established in Sections 5.68 and 17.25 of the Visalia Municipal code.
Visalia City Council Page 4 of 5 Printed on 5/31/2024
powered by Legistar™1338
File #: 24-0207 Agenda Date: 6/3/2024 Agenda #: 4.
Fiscal Impact:
None.
Prior Council Action:
On April 23, 2024, the City Council adopted Ordinance No. 2024-05, adopted as emergency measures to regulate the location and operational requirements for massage establishments pursuant to Government Code section 65858(b), Citywide.
Other: None.
Alternatives:
The City Council may revise or decline staff’s request to extend the urgency ordinance.
Recommended Motion (and Alternative Motions if expected):
I move to extend Ordinance No. 2024-05, an interim ordinance adopted as emergency measures to regulate the location and operational requirements for massage establishments, citywide.
Environmental Assessment Status:
The requested action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15060(c)(3) since the activity in question is not a “project” as defined in CEQA Guidelines Section 15378, it does not have a potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
CEQA Review:
The requested action is not a “project” under CEQA.
Attachments:
1. Ordinance No. 2024-05
2. Attachment 1 - Massage Establishment Locations
3. Attachment 2 - Intensity Map
4. Attachment 3 - 750-ft. Buffer
5. Title 5 Business Regulations Section 5.68 “Massage Establishments” Visalia City Council Page 5 of 5 Printed on 5/31/2024
powered by Legistar™1339
ORDINANCE NO. 2024-05
AN INTERIM ORDINANCE TO FURTHER REGULATE
MASSAGE ESTABLISHMENTS
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VISALIA:
SECTION 1. Consistent with its control over municipal affairs as a charter city and the powers vested in the City of Visalia through the California Constitution, the City of Visalia is authorized to secure and promote the public health, comfort, safety, and welfare of its citizenry. The City of Council of the City of Visalia hereby makes the followings findings:
A. The City of Visalia Municipal Code Title 5 defines "Massage establishment" as follows: “means and includes any business enterprise or establishment, parlor, or any room, place or institution within a business establishment where massage is given or administered by a massage technician as a paid service” and in addition, the City of Visalia Municipal Code Title 17 defines, “Massage Therapy Establishment” as follows: “means an establishment offering massage, alcohol rub, fomentation, electric or magnetic treatment, or similar treatment or manipulation of the human body by a Certified Massage Therapist.” B. The City of Visalia Municipal Code Title 17 currently permits Massage therapists to operate businesses under the current City of Visalia Zoning Ordinance in the Neighborhood Commercial (C-N), Commercial Mixed Use (C-MU), Downtown Mixed Use (D-MU), Professional / Administrative Office (O-PA), and Office Conversion (O-C) zones within the City of Visalia with a Conditional Use Permit (CUP) issued under Visalia Municipal Code Chapter 17.38.
C. The City of Visalia has seen an increase in requests for CUPs to operate Massage Establishments. In recent instances, such usages are proposed within close proximity to residential neighborhoods, junior college, and within shopping centers.
D. These recent instances of this proposed use near residential neighborhoods resulted in comments received from property owners concerned that this type of use should not be placed in close proximity to schools and residential neighborhoods, the usage was allowed because the current City of Visalia Zoning Ordinance does not require buffering distance requirements regarding this type of commercial activity near schools and residential neighborhoods. The City Council has since considered whether a specific policy should be adopted and has determined that it would be in the interest of the public health, safety, or welfare to consider changes to the municipal code on how this type of business should be further regulated.
1340
Ordinance No. 2024-05
E. In 2008, the Legislature adopted Senate Bill 731, which created the California Massage Therapy Council, a state-organized nonprofit organization with regulatory authority over the certification of massage technicians and practitioners throughout the State of California which also limited the City' s regulatory authority over massage establishments that exclusively hire State-certified massage technicians, preempting most local licensure and permitting requirements and land use regulations and has been widely criticized by local agencies as providing massage businesses with almost unprecedented protection from local zoning and land use authority, and interfering with local law enforcement efforts to close massage businesses that allow prostitution and other illegal activities.
F. In response to the criticism against Senate Bill 731, Assembly Bill 1147 was enacted which allows local agencies to impose reasonable zoning, business licensing, and health and safety requirements on massage establishments, and the City of Visalia seeks to amend the Visalia Municipal Code to ensure that the City regulates massage establishments in compliance with the provisions of enacted State statutes.
G. The increase in requests for the operation of Massage Establishments that has occurred in recent years does not appear to be slowing, which has raised concerns of whether illicit uses are trying to create a business front for illicit activity and a proliferation of such types of uses could result in negative impacts to the public’s peace, health, safety, and welfare.
H. The potential for criminal and unsafe activity at massage establishments is particularly concerning given that some massage establishments in the City are located within proximity to places where families congregate, such as restaurants and shopping areas.
I. Code enforcement and policing efforts have found that illegal massage operations that are shut down are often replaced by similar illegal massage operations in the same location. There are significant adverse impacts from allowing illegal massage operations to remain at a given site. Impacts include decreased consumer confidence in the legal operation of future massage establishments at a site, decreased consumer confidence in the neighboring businesses, and confusion among customers regarding any connection between the closed illegal operation and a new legal operation, and detrimental effects on all surrounding businesses.
J. The City Council finds and declares the illicit and illegal activities disguising as legitimate massage establishments in the City pose health and safety threats to operators, employees, patrons, surrounding businesses, and the public, in order to address this threat to public health and safety the City Council hereby finds the adoption of the proposed urgency interim zoning ordinance to be necessary while a more specific amendment to the Municipal Code is reviewed in the normal process by the City.
1341
Ordinance No. 2024-05
K. Further the City Council finds and declares that approving additional conditional use permits to allow additional Massage Establishments within close proximity of an existing Massage Establishment would potentially be in conflict with the stated goals of the City of Visalia General Plan and Zoning Ordinance to preserve and promote the public health, safety, and welfare of the city by creating conditions that would adversely impact the public’s interest.
L. The City Council finds and declares that the ordinance regulations on Massage Business shall be adopted on an interim and immediate basis to protect the public health, safety, and welfare of the community while the more permanent regulations are reviewed in additional detail.
SECTION 2. While this interim ordinance is in effect the following regulatory standards shall apply as additional limitations and requirements under the Visalia Zoning Ordinance on a Massage Establishment and/or Massage Therapy Establishment as those terms are defined in Visalia Municipal Code. Businesses that are already operating under conditional use permits in areas that would be prohibited under these regulations may continue to operate as they would constitute legal non-conforming use.
A. In addition to Conditional Use Permit being required in the Neighborhood Commercial (C-N), Commercial Mixed Use (C-MU), Downtown Mixed Use (D-MU), Professional / Administrative Office (O-PA), and Office Conversion (O-C) zones, a Conditional Use Permit shall be required for Massage Establishments/Therapist in the Regional Commercial (C-R) zone.
B. No Massage Establishment may be located within a radius of 750 feet of another Massage Establishment, as measured in a straight line, from the nearest point of the premises where said massage establishment is conducted to the nearest property line of any lot or legal parcel upon which a massage establishment is proposed to be located. Existing businesses operating a Massage Establishment that are already conducting business and in possession of all previously required licenses and/or permits for such business in the City of Visalia on the effective date of this emergency ordinance are considered existing non-conforming related to separation from all required sources as long as the permit is not revoked, or the business does not cease operation. The regulations proposed in this interim ordinance that do not concern the location of the business would apply.
C. No Massage Establishment located in a building or structure with exterior windows fronting a public street, highway, walkway, or parking area shall block visibility into the interior reception and waiting area through the use of curtains, closed blinds, tints, or any other material that obstructs, blurs, or unreasonably darkens the view into the premises.
1342
Ordinance No. 2024-05
D. Doors. All front, reception, hallway, or front exterior doors except back or rear exterior doors used for employee entrance to and exit from the massage establishment) shall be kept unlocked during business hours. A massage establishment may lock its exterior doors during business hours if the establishment is owned by one individual with one or no employees. No massage may be given within any cubicle, room, booth, or any area within a massage establishment which is fitted with a door capable of being locked, unless the only door is an exterior door.
E. Minimum lighting consisting of at least one artificial light of not less than forty watts shall be provided and shall be operating in each room or enclosure where Massage Services are being performed on Clients, and in all areas where Clients are present.
F. Living Quarters Prohibited. No person or persons shall be allowed to reside, dwell, occupy or live inside a Massage Establishment at any time. Beds and floor mattresses shall not be permitted on the premises.
G. Inspections. The operator and/ or on duty Responsible Employee consents to the inspection of the massage establishment by the City's Building and Safety Division, Code Enforcement Division, Fire Department and Police Department and the County Health Department for the purpose of determining that the provisions of this ordinance or other applicable laws or regulations are met. The City' s Building and Safety Division, Code Enforcement Division, Fire Department and Police Department and the County Health Department may, from time to time, make unannounced inspections of each massage establishment for the purpose of determining that the provisions of this chapter, State law or other applicable laws or regulations are met.
H. No person shall enter, be or remain in any part of a Massage Establishment while in possession of an open container of alcohol, or consuming or using any alcoholic beverages or controlled drugs except pursuant to a prescription for such drugs. The Owner, Operator, or responsible managing Employee, shall not permit any such person, or any person who is clearly intoxicated, to enter or remain upon the premises.
I. No Massage Establishment shall operate a school of massage or use the same facilities as that of a school of massage.
SECTION 3. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstances, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivision, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of Visalia hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases hereof be declared invalid or unenforceable.
1343
Ordinance No. 2024-05
SECTION 4. This Ordinance shall take effect immediately as an interim zoning ordinance under the provisions of California Government Code section 65858(b). It shall be of no further force and effect forty-five (45) days from its adoption unless it is extended pursuant to Government Code section 65858(b).
SECTION 5. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted as required by law. 1344
1345
1346
1347
Chapter 5.68
MASSAGE ESTABLISHMENTS
Sections:
5.68.010 Declaration of purpose and intent.
5.68.020 Definitions.
5.68.030 Administration.
5.68.040 Certifications required.
5.68.050 Massage establishment owner background check required.
5.68.060 Additional requirements.
5.68.070 Display of permit.
5.68.080 Massage establishment—Massage technician certificates required.
5.68.090 Prohibited conduct.
5.68.100 Facilities and operations.
5.68.110 Exceptions.
5.68.120 Public nuisance abatement.
5.68.130 Revocation.
5.68.140 Enforcement and penalties.
5.68.150 Appeal.
5.68.010 Declaration of purpose and intent.
A. This chapter establishes permitting standards intended to comply with California law and establish health and safety guidelines for massage establishments.
B. This chapter is not intended to be exclusive and compliance will not excuse noncompliance with any state or local laws or regulations that are uniformly applied to other professional or personal services businesses including, without limitation, all zoning applications; business license regulations; building, fire, electrical, and plumbing codes; and health and safety code laws and regulations applicable to professional or personal services businesses.
C. This chapter establishes a local regulatory system that allows only state certified massage therapists and massage practitioners to operate within the city. This chapter is not intended to regulate massages that are not part of a business occupation. This chapter is also intended to allow a transitional period for certain existing massage practitioners to continue practicing while they obtain state certification before December 31, 2013, and to coordinate the timing of the city's business license renewals with the state massage certification process. (Ord. 2012-05 § 2 (part), 2012)
5.68.020 Definitions.
Unless the contrary is stated or clearly appears from the context, the following definitions govern the construction of the words and phrases used in this chapter. Words and phrases not defined by this chapter have the meaning set forth elsewhere in the Visalia Municipal Code, the California Business and Professions Code, or the California Government Code.
"California Massage Therapy Council (CAMTC)" means the California Massage Therapy Council created pursuant to California Business and Professions Code § 4500.5(a). "Certified massage practitioner" means a person who is currently certified as a massage practitioner by the CAMTC, and who administers massage for compensation.
"Certified massage therapist" means a person who is currently certified as a massage therapist by the CAMTC, and who administers massage for compensation.
"City" means the city of Visalia.
"Police chief" means the police chief of the city of Visalia or the authorized representatives thereof. "Massage" means any method of pressure on, or friction against, or stroking, kneading, rubbing, tapping, pounding, vibrating or stimulating the external parts of the human body with the hands or with the aid of any mechanical or electrical apparatus, or other appliances or devices, with or without such supplementary aids as rubbing alcohol, liniment, antiseptic, oil, powder, cream, lotion, ointment or other similar preparations. (Exclusions to this chapter are also described in Section 5.68.110. This chapter is not intended to regulate massages that not part of a business occupation.)
1348
"Massage establishment" means and includes any business enterprise or establishment, parlor, or any room, place or institution within a business establishment where massage is given or administered by a massage technician as a paid service.
"Massage technician" means any person, who gives, performs or administers to another person a massage for any form of consideration.
"Out-call massage service" means any business that provides, refers or otherwise facilitates massage for any consideration at a nonfixed location.
"Person" means and includes person(s), firms, corporations, partnerships, associations or other forms of business organization or group.
"Recognized school" means a school of massage, recognized by the state of California which: (i) teaches the theory, ethics, practice, profession and work of massage; and (ii) requires a residence course of study to be given and completed before the student is furnished with a diploma or certificate of learning or completion; and (iii) has been approved by the state of California Consumer Affairs Bureau pursuant to Education Code § 94915, or, if said school is not located in California, has complied with the standards commensurate with those specified in said § 94915, or a school of equal or greater training that is approved by the corresponding agency in another state, or accredited by an agency recognized by the United States Department of Education. "Specified anatomical areas" means and includes any of the following human anatomical areas: genitals, pubic regions, anuses or female breasts below a point immediately above the top of the areola. "Specified sexual activities" means and includes all of the following:
A. Fondling or other erotic touching of specified anatomical areas; B. Sex acts including, without limitation, intercourse, oral copulation, or sodomy; C. Masturbation; or
D. Excretory functions as part of or in connection with any specified sexual activity listed in this definition. "Unrecognized school" means any school of massage that does not meet the definition of "recognized school" but teaches or purports to teach the theory, ethics, practice, profession or work of massage. (Ord. 2012-05 § 2 (part), 2012)
5.68.030 Administration.
The chief of police is authorized to administer this chapter and to promulgate administrative policies and procedures required to implement the regulations set forth in this chapter. (Ord. 2012-05 § 2 (part), 2012)
5.68.040 Certifications required.
A. Massage establishment. It is unlawful for any person to own, operate or maintain a massage establishment unless all massage technicians employed by the massage establishment hold a current, valid certification from the CAMTC as a massage practitioner or massage therapist or qualify under the limited exceptions described in this chapter.
B. Massage technician. It is unlawful for any person to engage in, or carry on, the business or activities of a massage technician without a certification from the CAMTC as a massage practitioner or massage therapist or qualify under the limited exceptions described in this chapter.
C. Out-call massage service. It is unlawful for any person to own, operate, or maintain, an off-premise massage service in the city unless all massage technicians employed by the off-premises massage service hold a current, valid certification from the CAMTC as a certified massage practitioner or certified massage therapist or qualify under the limited exceptions described in this chapter.
D. The city recognizes that some massage therapists and massage practitioners currently practicing in Visalia may not meet the current requirements set forth by the CAMTC due to changes in educational or other requirements particularly changes in requirements concerning hours of schooling although the person has been in practice for a significant period. The city will therefore allow such persons that were working within Visalia prior to the passage of this chapter under this "grandfather exception" without certification from the CAMTC if the requirements stated below are met.
The person seeking this exemption must show to the satisfaction of the city police department that he or she worked as a massage therapist or massage practitioner in the city prior to July 1, 2012, which is after the effective date of this chapter. The person must also provide evidence to the city that he or she has certification or proof of training in the field from a school or another entity comparable to the CAMTC and has been working as a massage therapist or massage practitioner for a period of at least five (5) years. Finally, the person must 1349
provide evidence that they attempted to obtain certification from the CAMTC but were denied and provide the reasons for the denial to show despite their existing training and experience they were not able to qualify for certification from CAMTC.
Persons that are granted an exemption from the CAMTC certification requirement by the city will still be required to meet all other terms of this chapter including but not limited to the background check required of massage establishment owners that are not certified by the CAMTC. All persons under this exemption will be required to display, in the same manner this chapter requires the display of CAMTC certification, a separate statement from the city to show that the person has met the requirements of this exemption. This exemption must be renewed annually and the city may establish a non-refundable fee to recover costs associated with such annual renewals.
(Ord. 2012-05 § 2 (part), 2012)
5.68.050 Massage establishment owner background check required.
A. Any person, association, partnership, or corporation desiring to operate a massage establishment, that will own five percent (5%) or more of the massage establishment, and that is not a certified massage practitioner or certified massage therapist, (meaning certified by the CAMTC) must make an application to the chief of police for an investigation of the applicant's background and history. A fee to recover costs of the background check must accompany the submission of each application. An annual nonrefundable renewal fee may also be charged to defray associated costs of investigation, inspection and enforcement.
B. Each applicant for a background check must submit the following information:
1. The full true name and any other names used by the applicant.
2. The present address and telephone number of the applicant.
3. Driver's license number and Social Security number.
4. The proposed address of the massage establishment.
5. Each residence and business address of the applicant for the three (3) years immediately preceding the date of the application, and the inclusive dates for such address.
6. Written proof that the applicant is at least eighteen (18) years of age.
7. Applicant's height, weight, and color of eyes and hair.
8. Two (2) photographs of the applicant at least two (2) inches by two (2) inches taken within four (4) months preceding the date of the application.
9. Applicant's business, occupation and employment history for the five (5) years immediately preceding the date of application.
10. The business license or permit history of the applicant, including whether such applicant has ever had any license or permit issued by any agency or board, city, county or state revoked or suspended, or has had any professional or vocational license or permit revoked or suspended and the reason(s) for the revocation.
11. All criminal convictions for any of the offenses set forth in this chapter, and a statement of the dates and places of such convictions.
12. If the applicant is a corporation, the name of the corporation must be set forth exactly as shown in the articles of incorporation or charter, together with the state and date of incorporation and names and residence addresses of each of its current officers and directors, and each stockholder holding more than five percent (5%) of the stock of the corporation. If the applicant is a partnership, the application must set forth the names and residence addresses of each of the partners, including the limited partners. If the applicant is a limited partnership, it must furnish a copy of its certificate of limited partnership filed with the county clerk. If one (1) or more partners is a corporation, the provisions of this section pertaining to corporate applicants will apply. The applicant corporation or partnership must designate one (1) of its officers or general partners to act as its responsible managing officer. Such person must complete and sign all application forms required of any individual applicant under this chapter, but only one (1) application fee will be charged.
13. The name and address of the owner and lessor of the real property upon or in which the massage establishment is to be operated, and a copy of the lease or rental agreement. If the applicant is not the legal owner of the property, a notarized acknowledgment from the owner of the property that a massage establishment will be located on his or her property is required for each massage establishment permit location.
14. The full true names and other names used, the present addresses and telephone numbers, driver's license numbers, and Social Security numbers, and state certificates from the CAMTC or transitional licenses for all massage technicians who will be working as employees or independent contractors at each massage establishment permit location. The applicant must provide the chief of police with any changes in the massage 1350
technicians that work at the massage establishment during the permit period within ten (10) working days of each change.
15. The chief of police may require the applicant to furnish fingerprints when needed for the purpose of verifying identification.
16. Such other identification and information as may be required by the chief of police in order to verify the information to be included in the application.
C. The city is allowed a reasonable time, not to exceed sixty (60) days, in which to investigate the information on the application. During the investigation of the background information, a city representative including, without limitation, a member of the police department, fire department, building and safety division, planning division, or any authorized representative thereof, may inspect, with or without notice during regular business hours, the proposed place of business to determine whether it conforms to the requirements of this chapter. Upon completion of the inspection, the city representative must inform the chief of police in writing of the findings of the inspection. Background clearance will be issued, within sixty (60) days of receipt of the application, to any applicant who has furnished all of the information required by this section in the application for such license, provided all of the following apply:
1. The applicant has not made a material false statement in the application and that all massage technicians who will be working as employees or independent contractors at each massage establishment permit location possesses certification from the CAMTC as a massage practitioner or massage therapist;
2. The applicant, if an individual, or in the case of an applicant which is a corporation or partnership, any of its officers, directors, or holders of five percent (5%) or more of the corporation's stock, has not, within five (5) years immediately preceding the date of the filing of the application been convicted in a court of competent jurisdiction of any of the following offenses: Penal Code §§ 243.4; 261; 266a through 266j; 267; 314 to 316; 318; or 647(a, b, d); any offense requiring registration under Penal Code § 290 or Health and Safety Code § 11590; or any felony offense involving the possession, possession for sale, sale, transportation, furnishing, or giving away of a controlled substance specified in Health and Safety Code §§ 11054 to 11058, as amended; or any offense in another state which, if committed in California, would have been punishable as one (1) or more of the heretofore mentioned offenses; or any offense involving the use of force or violence upon the person of another; or any offense involving theft, embezzlement or moral turpitude;
3. The applicant, if an individual, is at least eighteen (18) years of age;
4. The applicant has not had a massage technician, massage establishment, escort service, nude entertainment, nude photo studio or similar type of license or permit suspended within one (1) year or revoked within three (3) years immediately preceding the date of the filing of the application, unless the applicant can show a material change in circumstances or that mitigating circumstances exist since the revocation or suspension. (Ord. 2012-05 § 2 (part), 2012)
5.68.060 Additional requirements.
Before operating a massage establishment in the city, massage establishment owners must comply with all applicable codes adopted by the city, including, without limitation, the building, electrical, and plumbing codes.
Hours of operation. Massage establishments shall only offer massage services between the hours of 7:00 a.m. and 10:00 p.m. and no patrons for massage services shall be allowed on the premises after 10:00 p.m. or before 7:00 a.m. Pacific Standard Time.
(Ord. 2012-05 § 2 (part), 2012)
5.68.070 Display of permit.
Any owner of a massage establishment or off-premise massage service must display the CAMTC certificates for all massage technicians prominently in a conspicuous place, capable of being viewed by customers or city representatives, at every location where massage is performed or conducted.
For off-premise massage services, massage workers must also carry a copy of their CAMTC certificate and display it to customers upon request.
Any persons operating under the limited exception described in Section 5.68.040(D) must display the statement from the city documenting their exemption from the CAMTC certification prominently in a conspicuous place capable of being viewed by customers or city representatives, or carry it with them for offpremise massage services. (Ord. 2012-05 § 2 (part), 2012)
5.68.080 Massage technician certificates required.
1351
It is unlawful for owners of massage establishments or off-site massage services to allow any person to perform massage that is not a certified massage therapist, a certified massage practitioner, or has obtained one (1) of exceptions described in this chapter.
(Ord. 2012-05 § 2 (part), 2012)
5.68.090 Prohibited conduct.
A. It is unlawful for any massage technician or any other employee working in a massage establishment or for an out-call massage service, or customers, patrons, or guests of the establishment or service, to engage in any specified sexual activities upon the premises of the massage establishment or the off-premise massage location.
B. It is unlawful for any massage technician or other employee of a massage establishment to expose specified anatomical areas in the presence of any patron, customer, or guest.
C. In the course of administering the massage, it is unlawful for any massage technician or other massage establishment employee to make intentional physical contact with the specified anatomical areas of any customer, patron or guest.
(Ord. 2012-05 § 2 (part), 2012)
5.68.100 Facilities and operations.
A. It is unlawful for any massage establishment to operate unless the massage establishment premises and operation comply with the following minimum requirements:
1. Signs. A readable sign must be posted at the main entrance identifying the establishment as a massage establishment, provided, however, that all such signs must otherwise comply with the sign requirements of this code.
2. Disinfection of instruments. Instruments used for massage must be disinfected before each use. Where instruments for massage are employed, adequate quantities of supplies for disinfection must be available during all hours of operation.
3. Water. Hot and cold running water must be provided at all times.
4. Linen storage. Closed cabinets must be utilized for the storage of clean towels and linen. After use, towels and linen must be removed and stored in a separate container until laundered.
5. Sanitary conditions. All walls, ceilings, floors, steam and vapor rooms, and all other physical facilities for the massage establishment must be kept in good repair and be maintained in a clean and sanitary condition.
6. Clean linen. Clean and sanitary towels and linens must be provided for patrons receiving massage services.
No common use of towels or linens is permitted.
7. Compliance with laws. The premises to be used must at all times comply with all applicable state and local laws and regulations.
B. A register of all individuals employed as massage technicians, and copies of their current CAMTC certifications and massage technician business licenses, must be maintained and available for inspection at all times during regular business hours.
C. Each person present in any area of the massage establishment outside the waiting area or other areas open to any member of the public must be a certified massage practitioner or certified massage therapist or the massage establishment owner.
D. The permits and certifications required by this chapter must be displayed in an open and conspicuous public place on the premises.
(Ord. 2012-05 § 2 (part), 2012)
5.68.110 Exceptions.
This chapter does not apply to the following classes of individuals, and no CAMTC certification is required of such persons, while engaged in the performance of the duties of their respective professions:
1. Acupuncturists who are duly certified to practice their profession in the state of California.
2. Barbers, beauticians, and cosmetologists with respect to scalp massage, who are duly permitted pursuant to Business and Professions Code §§ 7301, et seq., in accordance with the limitations of their permits.
3. Persons employed or working at a licensed athletic facility.
4. Medical facilities in which massage is performed as prescribed treatment only on patients of the medical facility.
5. Nurses who are registered or certified as such under the laws of the state of California.
6. Physicians, surgeons, chiropractors, osteopaths, or physical therapists who are duly permitted to practice their respective professions in the state of California, or provide professional services in lawful compliance with 1352
Corporations Code § 13401(a).
7. Recognized schools of massage.
8. Businesses where a massage is performed while the person sits in a chair, such as head and neck massage, foot massage, or as part of a manicure or pedicure, and performed in public view or in a open common room.
9. Massage establishments or out-call massage services that are operating pursuant to a duly issued city business license that is issued prior to the effective date of this chapter shall have until December 31, 2013 to meet the state certification requirement described in Section 5.68.040 and any posting of such requirements detailed in other provisions.
10. This chapter is not intended to regulate massages that are not part of a business occupation. (Ord. 2012-05 § 2 (part), 2012)
5.68.120 Public nuisance abatement.
Any massage establishment operated, conducted or maintained contrary to the provisions of this chapter is unlawful and a public nuisance. The city attorney is authorized, in addition to or in lieu of any other legal or criminal proceedings, to commence an action or proceeding for abatement, removal or enjoinment of such massage establishment in the manner provided by law. The city attorney may seek a court order to grant such relief to abate or remove such massage establishments and restrain and enjoin any person from operating, conducting or maintaining such an establishment contrary to the provisions of this chapter. (Ord. 2012-05 § 2 (part), 2012)
5.68.130 Revocation.
A. Grounds for revocation. The police chief or city attorney may revoke approvals issued under this chapter for one (1) or more of the following grounds:
1. Fraud or deceit. That the applicant practiced fraud or deceit in obtaining an approval under this chapter;
2. Violation of chapter. That the massage establishment owner, operator, massage technician, or its employee violated a provision or provisions of this chapter;
3. Criminal conviction. That the massage establishment owner, operator, massage technician, or its employee has been convicted in a court of competent jurisdiction of any offense described in this chapter;
4. Improperly maintained facilities. That the facilities and operations of the massage establishment are not kept in compliance with this chapter and that the owner or operator has failed to promptly remedy any deficiency of which they have been notified. For purposes of this subsection, "notice" means notice given personally, or by leaving notice at the massage establishment premises, or by first class mail, postage prepaid, to the address designated by the massage technician or establishment in accordance with this chapter;
5. Employment of uncertified technicians. That the massage establishment has employed, allowed or permitted an uncertified person to perform massage in the massage establishment;
6. Error. That the approval was issued in error;
7. Civil penalties. Assessment of three (3) or more civil penalties as provided by this chapter during any six (6) month period; or
8. Prohibited conduct. A massage establishment owner, operator, massage technician, or its employee or agent has been found to have engaged in prohibited conduct in violation of this chapter.
9. Notice of revocation. Upon a determination on the grounds to revoke an approval under this chapter, the police chief or city attorney must cause a notice of revocation to be mailed by first class, postage prepaid mail, to the address designated by the massage technician or establishment pursuant to this chapter. (Ord. 2012-05 § 2 (part), 2012)
5.68.140 Enforcement and penalties.
A. Any person violating any provision of this chapter is liable in a civil action brought by the city attorney for an amount up to $500 per violation. Such person is also liable for reasonable attorneys' fees and costs incurred by the city attorney in any civil proceeding filed to enforce this chapter. Each day that a violation continues may be considered a new and subsequent offense.
B. Alternatively the city may choose to enforce violations through the administrative code enforcement process described in Chapter 1.13 of the Visalia Municipal Code, with violations being punishable with a $100 fine for the first violation, a $200 fine for the second violation, and a $500 fine for the third and subsequent violations. Each day that a violation continues may be considered a new and subsequent offense.
C. Enforcing this chapter through civil action may be filed as an alternative to criminal enforcement. Civil enforcement does not require the violation to be knowing or willful. A civil or administrative action cannot be 1353
filed if the person is being criminally prosecuted.
D. The city attorney may settle any civil enforcement before or after to the filing of a civil action by imposing a civil penalty in an amount not exceeding the potential civil liability, including attorneys' fees, set forth in this section. If such civil penalty is paid in full, the city attorney can agree not to file civil or criminal actions or, if action has already been filed, may dismiss such action. Imposition of all civil penalties is public record. (Ord. 2012-05 § 2 (part), 2012)
5.68.150 Appeal.
After denial of an application for a massage establishment regulatory permit (the term permit includes the "grandfather exception" to CAMTC certification described in Section 5.68.040), or after denial of renewal of a permit, or suspension or revocation of a permit, the applicant or person to whom the permit was granted may appeal the decision to the city manager, or designee, by filing a written notice with the city clerk within ten (10) business days from the receipt of the notice of denial. The city manager or representative shall hold a hearing on the appeal within thirty (30) business days from the receipt of the notice by the city clerk. The decision of the city manager, or designee, following the hearing shall be final and conclusive. There is no appeal to the City Council. If the denial, suspension or revocation is affirmed on review the applicant or permittee may seek judicial review of such administrative action pursuant to California Code of Civil Procedure § 1094.5. The time for filing such action is governed by California Code of Civil Procedure § 1. (Ord. 2012-05 § 2 (part), 2012)
1354
City of Visalia
City Council Public Hearing
June 3, 2024
1355
Staff Recommendation
• Receive presentation and extend
Ordinance No. 2024-03.
• Ordinance adopted as emergency
measures to regulate location &
operational requirements for massage
establishments, in the interim.
• 4/5 vote approval of the Council required
for passage.
• If approved, Ordinance extended for an
additional 22 months (per GS 65858(b)).
City Council Public Hearing
June 3, 2024
1356
Summary
• Ordinance contains specific regulations to
regulate location and operational requirements
for message establishments.
• Staff is currently working on municipal code
revisions to both Title 5 Business Regulations
and Title 17 Zoning.
• Anticipated to bring these updates in late June or
July 2024.
• Adoption will require public hearing process with
final action by the City Council.
City Council Public Hearing
June 3, 2024
1357
Ordinance Request
• Regulations help to ensure nuisance
activities occurring at massage
establishments are properly regulated.
• Puts these types businesses on notice
that permanent regulations are being
considered.
• Several establishments have been closed
due to building and municipal code
violations.
City Council Public Hearing
June 3, 2024
1358
Ordinance Request cont.
• Regulations identified in the urgency
ordinance include:
• CUP now required in the Regional Retail zone.
• 750-ft. separation requirement for establishments.
• Prohibiting exterior facing window coverings that front public street, highway, walkway, parking area, etc.
• Minimum lighting requirements.
• Living Quarters Prohibited.
• Inspection requirements.
• Front, reception, hallway or front exterior doors to remain unlocked during business hours.
City Council Public Hearing
June 3, 2024
1359
Recommendation
I move to extend Ordinance No. 2024-
05, an interim ordinance, as emergency
measures to regulate the location and
operational requirements for message
establishments, citywide.
City Council Public Hearing
June 3, 2024
1360
Questions?
City Council Public Hearing
June 3, 2024
1361
Visalia City Council
Staff Report
Visalia City Council
303 E. Acequia
Visalia, CA 93291
File #: 24-0222 Agenda Date: 6/3/2024 Agenda #: 5.
Agenda Item Wording:
Logo Discussion and potential direction regarding the new City of Visalia logo.
Deadline for Action: 6/3/2024
Submitting Department: Administration
Contact Name and Phone Number: Allison Mackey, Communications Manager, (559) 713-4535.
Department Recommendation:
It is recommended that the Visalia City Council receive public input and provide direction regarding next steps regarding the City’s logo. Possible options include, but are not limited to, the following:
1) Retain the current logo.
2) Revert to the previous logo.
3) Retain or modify the current logo to be used when the medium being utilized warrants it, and retain the previous logo as a Legacy Logo that would be utilized in situations where it can be appropriately displayed and its detail clearly denoted. 4) Open the brand refresh logo design process again and work with the current consultants to redesign the current logo to include community feedback received since May 6, 2024. 5) Open the brand refresh logo design process again and create a process wherein local artists/graphic designers can submit designs, (that align with the requirements of a scope of work/design), have those designs reviewed by a panel of local graphic and marketing professionals, with a selection of final logos presented to the community to be voted on via community meetings or digital voting methods. The Council could then consider the results and make a final selection.
6) Open the brand refresh logo design process again and work through the City’s Purchasing Division process to conduct a Request for Proposals and choose another consultant to revisit the most recent City logo and create a variation of its design or a completely new design.
When considering these options, staff recommends taking into consideration the following thoughts which, while specific, should not be overly restrictive for people designing a professional logo that will work in modern formats:
A. Today’s logos need to work with a variety of mediums that were not previously contemplated.
As such, staff would recommend that any logo submitted meet the following criteria:
a. Appropriate for the City
i. Any logo design should elevate the City of Visalia brand, enabling it to communicate about the organization and community.
b. Simple and Modern
i. The logo should aim to meet the criteria set forth in the feedback received, as Visalia City Council Page 1 of 7 Printed on 5/31/2024
powered by Legistar™1362
File #: 24-0222 Agenda Date: 6/3/2024 Agenda #: 5.
well as abide by design principles. A simple logo is easier to recognize, remember and reproduce while conveying a clear and consistent message. c. Versatile and Scalable
i. The logo will need to work in a variety of mediums, ranging from small, digital icons to printed letterhead to embroidered staff shirts to 10-foot billboards. ii.The logo will need to be able to have it’s colors translated to the Pantone Matching System (PMS) and ultimately the PMS Color Bridge. This is to ensure consistent color results in every application.
d. Include Quality Typeface
i. A logo does require an entirely custom typeface, but it should be unique and contribute to a brand mark. The typeface should be legible, appropriate and complimentary.
e. Color
i. The logo should include at least two colors, ideally no more than five. Colors should be limited, harmonious and meaningful.
ii.The logo should not rely solely on its hue, and should also work in grayscale, black or white.
f. Space
i. The logo should be designed in a way that is balanced, organized and expressive. Clever techniques such as negative space or hidden meanings, when appropriate, can be used.
B.
Considerable time and money has been spent on the assts that were developed as part of this process. Staff would also recommend that any logo change be such that it could be readily adapted into the current asset formats.
Background Discussion:
At the May 20, 2024 the Visalia City Council voted to place an item on the next meeting agenda that would allow the Council to hold discussion and determine direction regarding the new City of Visalia logo. At that time, staff confirmed that while the rollout of the new logo had been underway on vehicles, banners, brochures, uniforms and other items that had ordered after the November approval, no new items have been purchased or ordered with the new logo since May 20.
In previous action, on November 6, 2023, the City Council completed the last major milestone of the City of Visalia brand refresh project by choosing the new City logo, known then as R5-Fox Theatre and the logo’s color palette. With this direction, City staff continued the brand refresh process, including brand development, creation of marketing campaigns, and photography/videography products, as outlined in the scope of work and contract with consultant We The Creative.
This project began in March of 2021, when the City Council authorized a Capital Project Request of City Rebranding, beginning the process of a City-wide marketing and rebranding capital improvement project. We The Creative (WTC) was awarded the contract for the project through a competitive bid process. The overarching goal is to update the City’s identity, image, and brand to market the positive aspects of working for and living in the City of Visalia, as well as create a cohesive, modern, identifiable look to be used throughout the organization. In all, the brand refresh was on the agenda and discussed publicly at six City Council meetings.
About the Brand Refresh Process
Visalia City Council Page 2 of 7 Printed on 5/31/2024
powered by Legistar™1363
File #: 24-0222 Agenda Date: 6/3/2024 Agenda #: 5.
The process of rebranding began with a discovery phase examining the City of Visalia’s strengths, challenges, personality, organizational culture, and key attributes. This phase involved WTC meeting with the City’s project team, taking tours of the community, conducting roundtable discussions and focus groups that included City Council, City staff, residents, business owners, and staff from other stakeholder organizations.
Additional outreach included digital community surveys that were available to the public at large and were accompanied by targeted outreach to community partners such as Kaweah Health and the Visalia Chamber of Commerce and Tulare Kings Hispanic Chamber of Commerce. The results of the survey were reviewed, and WTC then held further focus groups and one on one meetings to verify what the survey results had presented.
Ultimately, WTC found that there was a strong agreement that the results of the survey and the information culled from the community, (over 800 individual interactions), presented a cohesive vision of Visalia. This included the statements that Visalia had a small town/hometown feel with big city feel/amenities, that the city was vibrant with a good downtown and that Visalia was family friendly oriented. Through the discovery phase, WTC noted the words simple, casual, traditional, friendly, agriculture and diverse were repeated across discussions and focus groups. In discussion of a logo, respondents shared they would like it to be simple, artistic, colorful, and modern, while the top visuals they identified would include agriculture, oak trees, view of the mountains and downtown. All this information from conversations, surveys and interviews informed how the logo options and brand messaging components were developed.
Arriving at the New City of Visalia Logo
One of the first steps in the branding process was to create a logo that was visually appealing, recognizable, and representative of Visalia. The input received during discovery indicated it should be simple, artistic, colorful, and modern. WTC initially presented 29 logo concept options, which were then narrowed down to a top three after review and input from the internal project team, City department heads, and staff. Council was also provided an opportunity to, individually, review the top options. From that input, a single concept was selected which is referred to as the “Breaking through the V” option.
Using that concept, WTC was asked to develop style variations of that logo. At the August 7, 2023, Council Meeting, WTC, and City staff presented five variations of the “Breaking through the V” logo for Council consideration and input. Discussion included the need for the logo to be 1) simple, artistic, colorful, and modern, 2) be explored in black and white, and 3) ultimately have a logomark, wordmark and lock-up (logomark with wordmark). The Council chose logo V5, which depicted rolling hills, a building, and mountains in the distance, with the direction that staff work with WTC to come back with a slightly redesigned logo, one that included the building to appear more like the Fox Theatre.
WTC then developed what was referred to as the R5 logo, referred to during the review process as R5-Fox Theatre. This R5-Fox Theatre version of the logo represents the direction of the City Council and has been previously reviewed by the Rebranding Committee and the Rebranding Department Head Subcommittee. The Rebranding Committee and the Rebranding Department Head Subcommittee recommend logo R5-Fox Theatre as the final City logo design, and along with the review of color palettes for the logo, the new logo was voted on and approved by the City Council at the November 6, 2023. This action gave the City of Visalia one of the final design deliverables from the brand refresh project and allowed the process to continue towards rollout.
Visalia City Council Page 3 of 7 Printed on 5/31/2024
powered by Legistar™1364
File #: 24-0222 Agenda Date: 6/3/2024 Agenda #: 5.
While staff had anticipated and noted that there was likely to be some discontent over a new logo, just as there had been in 1998 when the previous logo was unveiled, the amount of outcry displayed on social media was much more than anticipated. The design consultants also noted that there is usually significant discussion about a new logo when it is unveiled in a community. WTC shared that for there to be so much passion displayed on social media, and increased involvement, is ultimately a good thing. Given the community input received and the lack of comments when the draft logos were presented and the subsequent follow up discussions were had, the robust social media discussions are a surprise. WTC has continued to work with staff throughout this process, providing feedback and support as next steps are navigated. They have shared that they are prepared to provide two rounds of logo work free of charge, and that a redesign of the Legacy Logo would be approximately $2,500.
If the City chose a redesign of the Legacy Logo, WTC would need a Scope of Work detailing exactly what services/processes the City would need, i.e. what exactly the organization was looking for in this addition to the current Scope of Services and work already undertaken.
Total Cost and Deliverables
The total contract cost for services from consultant WTC was $150,000. This includes $75,000 for the HR Marketing and Rebranding Services and $75,000 for City Wide Rebranding/Brand Refresh. This price included the following deliverables which resulted in over 1,200 assets for City use:
· HR Marketing and Rebranding Services
o Brand Audit
o Visual Identity Design and Guidelines
o Workplace Identity, Brand Development and Positioning § Website Content
§ Photography and Videography
· Library of 1,165 professional, on-site/in Visalia photos · Two recruitment/HR themed videos
· Drone B-roll/footage (15 clips, varied length)
o Marketing Campaigns
§ HR Tagline
§ Brochure Template (8 ½ x 11 in., four pages)
§ Marketing Ad/Flyer Template (8 ½ x 11 in)
§ Social Media Templates (Four)
§ Presentation/Deck Template
o Recruitment Strategy
o Brand Hierarchy
o Visual Identity Guidelines
o Contingency (Optional) add-on item at cost of $2,500
City Wide Rebranding/Brand Refresh Scope of Work/Deliverables for $75,000. This Citywide Rebranding scope of work includes:
· Brand Audit
o Provide recommendations on redesigning/enhancing existing templates, marketing and promotional materials and other relevant documents.
· Visual Identify Design
o Create a brand visual identity based on knowledge obtained through the branding and Visalia City Council Page 4 of 7 Printed on 5/31/2024
powered by Legistar™1365
File #: 24-0222 Agenda Date: 6/3/2024 Agenda #: 5.
communications strategy process.
§ New Logo
· 1 Logomark, 1 Wordmark, 1 Lock-Up
· Vertical and Horizontal Logo
· Vertical and Horizontal Logo with Tagline
· Logomark, Wordmark and Lock-Up, and Vertical and Horizontal versions in white and black
§ New Color Palette
· City Identity, Brand Development and Positioning
o Brand Promise/Key Marketing Messages
§ Mission Statement
§ Vision Statement
§ City Values
§ Brand Promise
o Marketing Tagline
o General Use Template Development
§ Letterhead (Two)
§ Business Card (Two)
§ Tri-Fold Brochure Template (8 ½ x 11 in)
§ Marketing Ad/Flyer Template (8 ½ x 11 in)
§ Social Media Templates (Eight)
§ Mailchimp Newsletter Template
§ Presentation/Deck Template
§ Lapel Pin (50, metal pins produced)
o Fleet Branding
§ Removable/Magnetic Signage
§ Solid Waste Truck Branding
o Website Content
· Marketing Campaigns
o Develop specific marketing campaigns (including conception, information architecture, creative design, copywriting, and graphic design) that focus on clearly and reflectively marketing the City of Visalia
· Brand Hierarchy
o Provide recommendations on how to best accomplish folding the various City Departments under the unified messaging of the City organization. · Visual Identity Guidelines
o Create a visual identity guidelines document or Style Book · Photography
o 50 professional, on-site/in Visalia photos from the HR Library that have been retouched. · Videography
o One video giving an overview, benefits of living and working in Visalia. o 20 B-roll, 10-20 second videos
Brand Refresh Soft Launch and Rollout
In total, the brand refresh was on the City Council agenda six times between March 2021 and Visalia City Council Page 5 of 7 Printed on 5/31/2024
powered by Legistar™1366
File #: 24-0222 Agenda Date: 6/3/2024 Agenda #: 5.
November 2023.
With several deliverables received, City staff showcased the new City of Visalia logo in the Spring Live & Play Activity Guide, released on February 10, 2024. This provided a “first look” at the logo and included a brief explainer on the meaning behind each of its elements. Rollout then continued from February, as City staff began slowly rolling out the brand refresh elements, including logo, to ensure that the adoption of the brand refresh aligned with direction by Council and the City Manager, that items that required replacement be transitioned first, beginning with uniforms, fleet vehicle decals that needed replacement, as well as banners. This rollout began with the understanding that the implementation would be a multi-year process and happen incrementally as things were replaced or purchased. For example, for the fleet decals, only vehicles that were receiving routine maintenance would have their decals updated.
As other deliverables were received from WTC it was determined that City staff could continue the rollout to internal signage and social media platforms, updating the City logo signage in the Council Chambers for the May 6, 2024, City Council meeting and updating the City of Visalia social media profile pictures on May 7, 2024, with a corresponding social media post Rollout Feedback
During the period of February 2024 through May 2024, City staff did not receive formal complaints related to the brand refresh or new logo. Beginning on May 7, 2024, the City’s Facebook and Instagram profiles began receiving comments sharing individuals’ unhappiness with the logo and emails and phone calls were received. Further rollout of the brand refresh/use of the logo was paused. Currently, the City of Visalia is working with We The Creative to complete the contracted deliverables and to finalize the remaining items per the contract, that include the creation of marketing campaigns, and photography/videography products. It is the intent that if a new logo is selected, it will be in a format that can still be utilized in these items.
While the process of adoption was complete and the roll out was underway, City staff understand there are some in the community that now have feedback on the refresh. The City takes pride in being transparent and open about the work it is undertaking for the community, and staff members believe significant efforts were made; however, staff regrets that so many did not see the outreach conducted and opportunity for feedback.
To that end, the Council placed this June 3, 2024, agenda item to allow for discussion and potential direction.
Fiscal Impact:
Unknown at this time, dependent on Council direction.
Prior Council Action: May 20, 2024 - Agenda included Item 12. Request to add Consent item by Council - Request by several Council Members to approve adding an agenda item to the June 3, 2024 agenda for disucssion and potential direction regarding the new City of Visalia logo. November 6, 2024 - Council received an update on the brand refresh and approved the new City of Visalia logo, R5-Fox Theater and chose the new City of Visalia logo color palette. August 7, 2023 - Council received an update on the City-wide marketing and rebranding project, directed staff to present a redesigned logo with additional elements and approved a new mission statement, vision statement, brand promise, values, and tagline. April 17, 2023 - As part of the review of the Fiscal Year 2022/23 Visalia City Council Page 6 of 7 Printed on 5/31/2024
powered by Legistar™1367
File #: 24-0222 Agenda Date: 6/3/2024 Agenda #: 5.
mid-year financial report, Council made a General Fund Capital Project appropriation of $50,000 for City rebranding implementation. August 15, 2022 - Council authorized staff to conduct a citywide rebranding process, appropriated an additional $25,000 to cover the costs of completing the administrative portion of the City of Visalia Human Resources Marketing and Branding Services, and appropriated $75,000 to cover the anticipated costs of undertaking and completing the administrative portion of the City of Visalia rebranding (Citywide Rebranding). Council authorized staff to utilize the services of We The Creative (by amending their contract with the City of Visalia Human Resources Division) for a project total of $150,000. March 21, 2022 - City Council approved Proposed Capital Projects by Fund, Project # ADCP09 City Logo Refreshment for Fiscal Year 2024-25 for a total of $50,000. March 15, 2021- City Council reviewed Fiscal Year 2020/2021 mid-year financial report with recommended budget appropriations and authorized the Capital Project Request of City Rebranding for $50,000 to be used for initial implementation of the new branding.
Other: A presentation will be provided during the Council meeting.
Recommended Motion (and Alternative Motions if expected):
Motion will depend on direction desired by the City Council and could include one of the options six options provided in the above recommendation or some other option as directed by the Council.
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Past logos.
Visalia City Council Page 7 of 7 Printed on 5/31/2024
powered by Legistar™1368
.
1948 – In the 1983 City Calendar
Mid 1960s – Metal sign on side of vehicles of that
time. Displayed in CHW Conf Room
1967 Letterhead 1976/1977 Annual Budget
1982 Sewer Revenue Bond 1998/1999 Annual Budget
1369