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HomeMy WebLinkAbout2025-10-29 Policy & Services Committee Summary MinutesPOLICY & SERVICES COMMITTEE SUMMARY MINUTES Page 1 of 6 Special Meeting October 29, 2025 The Policy & Services Committee of the City of Palo Alto met on this date in the Community Meeting Room and by virtual teleconference at 6:30 P.M. Present In-Person: Veenker (Chair), Lu, Stone Absent: None. Call to Order Chair Veenker called the meeting to order. The clerk called roll. Public Comments There were no requests to speak. Agenda Items 1. Recommend City Council approval of the proposed Massage and Hot Tub/Sauna Ordinance; CEQA Status – not a project. Senior Management Analyst Eric Jensen explained an update was being sought because the current regulations had not been significantly updated since 2012. Since then, California passed laws that changed how massage therapy was regulated statewide. The City wanted to align the local rules with the updated state standards and best practices. Palo Alto had 19 massage businesses and 1 hot tub/sauna business which employed approximately 150 massage professionals. For massage establishments, the current Palo Alto Municipal Code did not require establishment permits if all employees were certified by the California Massage Therapy Council (CAMTC). The proposed change would have the City certify the validity of the establishment during the augmented permit application process, which would include a check on ownership. Under the proposed changes, the owner would have the burden of compliance with city and state laws. The current Palo Alto Municipal Code had the City verify and permit individual massage professionals. The proposed change was that the City would require professionals to be certified by the CAMTC. The current Palo Alto Municipal Code had the City certify the validity of hot tub/sauna businesses during the permit application process. Those businesses must also be permitted and inspected by the Santa Clara County Health Department. The proposed change was for the City to discontinue the extensive permit application process and permit based on the Health Department status. SUMMARY MINUTES Page 2 of 6 Sp. Policy & Services Committee Meeting Summary Minutes: 10/29/2025 The CAMTC was a private nonprofit public benefit corporation with 510(c)(3) tax exempt status and had a volunteer Board of Directors. The CAMTC’s mission was to protect the public and elevate the profession. Staff was seeking feedback and, if no changes were requested, a recommendation that this be forwarded to City Council for first read on the consent calendar. Public Comment: None. Council Member Stone stated that the second most common identified type of sex trafficking was through these types of businesses and opined the proposed changes were a smart and manageable way to address the concern. Council Member Lu asked if there was a notable issue with prostitution and/or human trafficking in Palo Alto or if this was a preventative measure. Council Member Lu clarified that all but 1 massage therapist in Palo Alto was certified by the CAMTC. To get licensed, one must complete 500 hours of massage school, pay $300 every 2 years, and get a criminal background check with fingerprints. Council Member Lu was concerned that undocumented immigrants or those without a lot of resources would be excluded but believed, in practice, that was not an issue. Chair Veenker asked who appointed the CAMTC volunteer Board of Directors. Chair Veenker opined it made sense for the City to step away from discerning who was appropriately licensed. Chair Veenker wondered if the updates would result in cost savings. Senior Management Analyst Jensen noted there had not been any criminal cases relating to prostitution or human trafficking within these types of establishments in Palo Alto, however it was an issue within the industry in general. Under the new updates, owner/operators would only be allowed to hire massage therapists certified through the CAMTC, which would be checked in the permitting process. Senior Management Analyst Jensen believed the seats on the Board were by invitation, not by gubernatorial appointment. Assistant Police Chief James Reifschneider clarified that under the current code, professionals could opt to be certified through the City or the CAMTC. All but 1 individual had chosen the state certification. That individual was in the process of transitioning to state certification. The update would eliminate the option for City certification. Assistant Police Chief Reifschneider said there would be nominal savings from relying on the Health Department because there was only 1 City-certified hot tub/sauna business and any staff time saved would be redirected toward the additional attention being paid to the operators. MOTION: Chair Veenker moved, seconded by Council Member Stone, to recommend that the proposed revisions to the code be forwarded to City Council. MOTION PASSED: 3-0 2. Office of the City Auditor Presentation of the Community Services Department Equipment and Materials Inventory Management Audit City Auditor Kate Murdock explained the audit’s objective was to determine if the CSD’s equipment and materials inventory management system was operating effectively and efficiently. SUMMARY MINUTES Page 3 of 6 Sp. Policy & Services Committee Meeting Summary Minutes: 10/29/2025 Most tested items were accounted for, however the management of materials and equipment at CSD facilities needed improvement. Findings included inventory lists that were not comprehensive or regularly updated; the City’s process of disposing goods was not followed in some instances; items could be better organized to facilitate shared and easier use; and some items were not properly stored or secured. It was recommended that the CSD implement a centralized inventory management system to track and update assets across facilities, establish a standard operating procedure for conducting periodic inventory audits, and designate specific staff members responsible for inventory monitoring and provide training on appropriate procurement and disposal procedures. The CSD lacked formal processes for receiving and inventorying materials and equipment which could help prevent fraud, waste, and abuse. It was recommended that the CSD establish clear guidelines for the receipt and inventory of goods and equipment to ensure accountability, accuracy, and efficiency in managing physical assets. It was also observed that the CSD’s current practice of sourcing funding to replace equipment using the City’s Capital Improvement Process was burdensome. By implementing a comprehensive equipment inventory that included estimated replacement timelines and cost, funding for replacement equipment could be incorporated in the annual budget development process. Public Comment: None. Chair Veenker wondered why the equipment was funded using the City’s CIP. Council Member Lu opined certain trivial inventory items were not worth tracking and did not want to overwork the issue. Council Member Lu agreed an inventory management system was a good investment. Director Kristen O’Kane explained that some equipment, like the kilns at the art center or AV equipment, was large and costly and needed to go through the CIP process to be replaced. The intent was to utilize the Public Works’ asset management system for parks and open space equipment and utilize a system similar to IT for other equipment and materials. Staff was working on defining the threshold of what was large enough to be inventoried. MOTION: Council Member Stone moved, seconded by Council Member Lu, to recommend the City Council approve the results of the Community Services Department Equipment and Materials Inventory Management Audit Report. MOTION PASSED: 3-0 3. Office of the City Auditor Presentation of the Building Permit & Inspection Fees Audit Item Removed Off Agenda 4. City Council Referral to the Policy & Services Committee to Consider Updates to the Advocacy Process Manual and for Committee Recommendation of Changes, if any, to the City Council for Adoption; CEQA Status – Not a Project SUMMARY MINUTES Page 4 of 6 Sp. Policy & Services Committee Meeting Summary Minutes: 10/29/2025 Deputy City Manager Chantal Cotton-Gaines explained that the legislative guidelines were looked at every year and will come to the Committee at the November 19 meeting. That will be focused on the legislative platform. The legislative manual was being discussed this evening as well as Council guidance that existed outside of the legislative manual. The Committee previously requested to spend time discussing the process and to make changes, if any. Staff recommended adding the following to the manual: a notification to all Council members a signed legislative advocacy letters clearly explaining staff’s process; involvement of the City Clerk’s office; and incorporation of the strategic weighing in discussion. Deputy City Manager Cotton-Gaines explained that Council had a discussion outside of the legislative manual process a few years ago which set the tone for how to represent the City, especially in Sacramento. There were a lot of bills the City had interest in, but the direction from Council was to look at the likelihood of a bill passing and the impact it would have on Palo Alto. Public Comment: None. Chair Veenker referenced footnote 1 of the legislative guidelines, which stated that, if there were no recommended guideline changes, the priorities from one year would carry over to the next without returning to Council for reaffirmation. Chair Veenker wanted the Committee to be able to address the guidelines and suggested updating the footnote to reflect the current practice. Chair Veenker wondered if the letter/public statement of Council’s position on legislation should reflect the vote count in some capacity. If a bill came through with no recommendation to take a position and it fit within the legislative guidelines, a letter would be prepared for the Mayor without needing to go to Council. Chair Veenker was concerned that having Council members vote on each bill would be time consuming and complicated. Council Member Lu opined that acknowledging the vote in the letter made sense. Council Member Lu asked if bills always came before Council for a vote before the City took a position and wondered if there was an efficient way for Council to vote on more bills. Council Member Stone agreed with indicating whether the vote was unanimous or majority in the letter without stating the exact number. Council Member Stone preferred the current practice of legislative guidelines and noted it was not the work of the City to weigh in on every bill. Deputy City Manager Cotton-Gaines explained that staff followed the bills. There were lobbyists in Sacramento who advanced the City’s interest. If a bill changed significantly, staff would determine if that required anything further from the City. Staff was open to suggestions on how frequently to bring legislative updates to the Committee. Staff wanted to hear if there were bills the Committee thought Council should weigh in on. Deputy City Manager Cotton-Gaines explained there was no other structure outside of a discussion item that would allow the Committee to speak on the legislative guidelines. Deputy City Manager Cotton-Gaines said that discussion on the item did not have to be lengthy if there were no specific changes. Assistant City Clerk Christine Prior said staff’s current practice did not match the footnote because the guidelines always came to Council for approval even if there were no changes. Chair Veenker referenced the section on coordination of the legislative program on packet page 80 and noted that a lot of things had been brought to the Committee without a recommendation. Chair SUMMARY MINUTES Page 5 of 6 Sp. Policy & Services Committee Meeting Summary Minutes: 10/29/2025 Veenker endorsed the comment in the staff report about incorporating Council’s selective weighing in strategy. Chair Veenker suggested the change could go under the last bullet point of the “Role of City Council section and proposed the wording “selectively weigh in with legislators on behalf of the City.” Chair Veenker opined the process for sponsoring a bill was good but noted the potential difficulty with timing. Chair Veenker proposed adding a sentence that stated if the ideal timeline was not followed, the reason for that would be presented to Council. Chair Veenker referenced page 82 and asked what an advisory body was. Chair Veenker agreed that any advisory, commission, committee, or member of any such body that wished to represent the City in meetings or communications with a legislature must first coordinate with the CMO. Chair Veenker believed that should be true of Council members as well and suggested an addition to reflect that. Council Member Stone suggested updating the threshold for the City to consider bill sponsorship to at least 2 Council members. Assistant City Clerk Prior proposed adding Chari Veenker’s suggestion as a bullet point under “Role of the City Council.” Council Member Stone opined that additional language needed to be included in the “City Advisory, Commissions, and Committees” section related to how members represented themselves. Council Member Stone was concerned about members representing themselves in non-official City capacities, especially when representing a position contrary to the City or Council’s. Council Member Stone wanted to encourage clarity when a member was speaking in their individual capacity. Council Member Lu suggested that if an individual took a contrary position, that person should clearly represent the City’s position as well. Chair Veenker believed people should feel free to explain if they held a contrary position and why. Chair Veenker suggested staff create language to articulate the nuanced point. Chair Veenker stated that the City’s utilities were separately regulated but wanted a more explicit reference to the role of the CMO in coordinating between utilities and other City departments. Chair Veenker appreciated that staff had adapted the process to run letters by the Policy and Services Committee chair and wanted to formalize that process. Chair Veenker felt the wording of the second item under “Purpose” was confusing and believed the intended meaning was that the legislation would potentially be the subject of City advocacy. City Attorney Molly Stump clarified that Council Member Stone wanted to discourage confusion when an individual was speaking on their own behalf versus on the City’s behalf. City Attorney Stump opined that City officials would not want someone with a contrary position to characterize their position. City Attorney Stump explained that free speech could not be regulated but an expectation could be set that members would not create confusion with the intent of undermining Council’s official position. Assistant City Clerk Prior explained that staff was working to coordinate the City staff, CMO, and the other departments with utilities. The utilities guidelines will be brought alongside the legislative guidelines in the November meeting for review. Deputy City Manager Cotton-Gaines said the City Clerk recorded the suggested changes and asked the Committee to recommend those so staff could make the updates and bring the updated document to Council. SUMMARY MINUTES Page 6 of 6 Sp. Policy & Services Committee Meeting Summary Minutes: 10/29/2025 Council Member Stone wanted the item brought on consent. MOTION: Council Member Stone moved, seconded by Chair Veenker, to recommend the City Council adopt the discussed changes to the Advocacy Process Manual: • Update #2 in the Purpose section to read: “Ensure potentially impactful state and federal legislation is identified, analyzed, tracked, and possibly, the subject of city advocacy.” • Update the Legislative Guidelines section to align with current practice • Incorporate strategic weighing in language • Add language in the Role of the City Council section regarding coordinating with the City Manager’s Office when advocating on behalf of the City • Incorporate role of the City Clerk’s Office • Clarify language in City Advisory Commissions and Committees section regarding speaking in personal capacity vs. speaking on behalf of the City • Specify that advocacy letters on bills the City Council has voted to take a position on should note if/when the vote is not unanimous • Specify that advocacy letters will be shared with the Mayor and Chair of the Policy & Services Committee for review and input • Set the threshold for the City to consider bill sponsorship at least two Councilmembers • If the general ideal timeline for City-sponsored state legislation is not followed, the reason why will be shared with the City Council MOTION PASSED: 3-0 Future Meetings and Agendas Items for the November 19 special meeting included the building permit and inspection fees audit, the legislative agenda and guidelines, a discussion on the nonprofit workplan, a discussion on the Council priority-setting process, and a follow-up discussion on the recurring items that come to Council. Adjournment: The meeting was adjourned at 7:45 P.M.