November 16,2015 DATE REQUEST FOR COUNCIL ACTION 3H AGENDA ITEM ORIGINATING DEPT. AGENDA ITEM CITY ADMINISTRATOR APPROVAL Community Development T~ Ocean Therapeutic Massage Business/Personal Service License Suspension PREVIOUS ACTIONS: None. RECOMMENDED COUNCIL ACTION: Motion to suspend the Massage Business License of Ocean Therapeutic Massage, 7042 E. Fish Lake Road, Maple Grove, Minnesota 55311, based on the comments below, and to direct the Clerk to send the notice of suspension attached, and to schedule a license revocation hearing before the City Council for December 7,2015, at 7:00 p.m. Motion to suspend the Personal Service License of Xi an Mei Zhang, based on the comments below, and to direct the Clerk to send the notice of suspension attached, and to schedule a license revocation hearing before the City Council for December 7,2015, at 7:00 p.m. (Simple majority vote for passage) COMMENTS: Ocean Therapeutic Massage ("Ocean Massage"), 7042 E. Fish Lake Road, Maple Grove, Minnesota 55311, holds a Massage Business License, License No. 2015-11. Fenglan Wu, owner and operator of Ocean Massage applied for a business license for Ocean Massage on June 26,2015. Ocean Massage received its current business license on August 14,2015. Xian Mei Zhang, employee of Ocean Massage, holds a Personal Service License for massage services. Ms. Zhang received her current license, License No. 2015-106, on August 14,2015. On October 15,2015, Maple Grove Police Department investigated a report of possible prostitution activities at Ocean Massage. An undercover office visited Ocean Massage at 7:50 p.m., during business hours for a scheduled massage. During the course of the investigation, Ms. Zhang attempted to engage in sexual activity with the undercover office. For this conduct, the Police Department arrested Zhang for prostitution in violation of Minn. Stat. 609.324 Subd. 6(1)-(2) [Engaging in Prostitution in a Public Place], and City Code 20-121(d)(4)(b) [Lewd Conduct] and 10-443 [Operating without Sexually Oriented Business License]. g:\cases\20 IS\ocean therapeutic massage\statt reports\ca1\ocean therapeutic massage business-personal service license suspension 11-16-IS.docx
Ocean Therapeutic Massage Business/Personal Service License Suspension Request for Council Action November 16,2015 Page 2 Business License Suspension: The actions of Ms. Wu, as owner and operator of Ocean Massage, and her employee are in violation of several provisions of Maple Grove City Code, including Chapter 10, Article VII (Massage Services), and Chapter 20, Article IV (Lewd Conduct). Importantly, under 10-191(k), Ocean Massage, the licensee, and Ms. Wu, its owner, are responsible for the conduct of the business and its employees. City Code 10-192 provides that the City Council may suspend any business license, without notice, pending a hearing on revocation within the subsequent 30 days following the suspension. Suspension should be communicated to the licensee by personal service of a Notice of Suspension or by leaving notification at the licensed premises with the person in charge of the premises. City Code 1 0-192 provides for suspension for several reasons, including the following: (A) Failure to comply with the any of the ordinances of the city, rules promulgated thereunder, or statutes of state; and (B) Presence of the massage business being found to be detrimental to the health, safety or welfare of the citizens of the city. The City may suspend the business license of Ocean Massage under both provisions. Failure to Comply with City Ordinances Ocean Massage failed to comply with several provisions of the City Code. First, 10-191(m) states: No person, whether as a licensee or employee or agent thereof or otherwise, shall engage or offer to engage in any specified sexual activity, as defined in section 10-441, or engage or offer to engage in any activity prohibited by statute, ordinance, regulation or rule, on the licensed premises or in connection with a massage or massage business. Included among the definitions of sexual activity specified in 1 0-441 is "(4) Fondling or touching of nude human genitals, public region, buttocks, or female breast." 20-121 prohibits lewd conduct in locations granted business licenses. In relevant part, 20-121(d) prohibits act or conduct, "(2) To encourage or permit any person to touch, caress, or fondle the breast, buttocks, anus or genitals of oneself or any other person." The activities of Ms. Zhang, employee of Ocean Massage practicing massage services, were in violation of City Code for which Ocean Massage/Fenglan Wu is independently responsible as the holder of a business license. Presence of the Business Detrimental to Public Health, Safety, and Welfare: Finally, City Code 10-191 (1) requires that the licensee engage in practices designed to ensure cleanliness and health and which are designed to resist anything detrimental to the public's health, safety and welfare. As stated above, a licensed employee of Ocean Massage was arrested for prostitution in violation of Minn. Stat. 609.324 Subd. 6(1)-(2). Consequently, this activity may be viewed as g:\cases\20 IS\ocean therapeutic massage\staff reports\cai\ocean therapeutic massage business-personal service license suspension 11-16-IS.docx
Ocean Therapeutic Massage Business/Personal Service License Suspension Request for Council Action November 16,2015 Page 3 endangering the health, safety, and welfare of the citizens of Maple Grove and constitute an independent grounds for suspending the business license of Ocean Massage under 10-192(7). Personal Service License Suspensions: Ms. Zhang holds a personal service licenses from the City. Her license to perform massage services may be revoked, under Section 10-1.92(1) for failure to comply with any of the ordinances of the city, rules promulgated thereunder, or statutes of state. As discussed above, Ms. Zhang was arrested for engaging in prostitution. Her actions in engaging in criminal activity violated state law and City Code and constitute a basis for suspending her personal service license. Authored by: Dick Edwards g:\cases\20 15\ocean therapeutic massage\staff reports\ca1\ocean therapeutic massage business-personal service license suspension 11-16-15.docx
CITY OF MAPLE GROVE, MINNESOTA NOTICE OF LICENSE SUSPENSION NOTICE IS HEREBY GIVEN that on November 16,2015, pursuant to Maple Grove City Code 10-192, the Maple Grove City Council voted to SUSPEND the Massage Business License of Ocean Therapeutic Massage, License No. 2015-11, 7042 E. Fish Lake Road. The City Council, pursuant to Maple Grove City Code 10-192(1) & (7), suspended the license for the following reasons: Ocean Therapeutic Massage, a holder of a Massage Business License, owned and operated by Fenglan Wu, violated Maple Grove City Code 10-191(1) for an employee engaging in practices detrimental to the public's health, safety, and welfare; and 10-191 (m) and 20-121 for an employee engaging in sexual activity and lewd conduct on the premises of the licensed business, on October 15, 2015. YOU ARE FURTHER NOTIFIED that operation of Ocean Therapeutic Massage as a business for massage services must CEASE AND DESIST IMMEDIATELY. If you do not immediately suspend operation of your business, THE CITY MAY TAKE APPROPRIATE LEGAL ACTION, WHICH MAY INCLUDE REVOCATION OF YOUR BUSINESS LICENSE OR INITIATING A LAWSUIT AGAINST YOU TO ENSURE THE BUSINESS IS NOT BEING OPERATED. YOU ARE FURTHER NOTIFIED that, in accordance with City Code 10-8 and 10-192, the City Council will hold a hearing on revocation of the Massage Business License for Ocean Therapeutic Massage on December 7, 2015 at 7:00 p.m. Based on the evidence and testimony at the hearing, the City Council will determine if circumstances warrant the revocation of the license of Ocean Therapeutic Massage. At the hearing, you may present evidence and testimony to the City Council. The City Council at the hearing will inform the licensee of all information upon which the alleged violation of law by the licensee has been determined. The City Council will make a final order regarding the reinstatement, suspension, or termination of the license following the hearing. Al Madsen, City Clerk
Affidavit of Service: STATE OF MINNESOTA } SS COUNTY OF HENNNEPIN --" being duly sworn states that on (s)he served the attached Notice of License Suspension on by leaving an accurate copy of the Notice at the establishment with: ----------------- purported manager or assistant manager of said establishment., the (Name) (Title) Officer's signature Subscribed and sworn to before me this day of, 20 Notary Public
CITY OF MAPLE GROVE, MINNESOTA NOTICE OF LICENSE SUSPENSION NOTICE IS HEREBY GIVEN that on November 16,2015, pursuant to Maple Grove City Code 10-192, the Maple Grove City Council voted to SUSPEND the Personal Service License of Xi an Mei Zhang, License No. 2015-106, performing massage services at Ocean Therapeutic Massage, 7042 E. Fish Lake Rd., Maple Grove, MN 55311. The City Council, pursuant to Maple Grove City Code 1 0-192( 1), suspended the license for the following reasons: Xian Mei Zhang, a holder of a Personal Service License, violated Maple Grove City Code 10-191(m) and 20-121 for engaging in sexual activity and lewd conduct on the premises of the licensed business, on October 15,2015. YOU ARE FURTHER NOTIFIED that performance of personal massage services must CEASE AND DESIST IMMEDIATELY. If you do not immediately suspend practicing personal massage services, THE CITY MAY TAKE APPROPRIATE LEGAL ACTION, WHICH MAY INCLUDE REVOCATION OF YOUR PERSONAL SERVICE LICENSE OR INITIATING A LAWSUIT AGAINST YOU TO ENSURE THAT YOU ARE NOT PERFORMING PERSONAL MASSAGE SERVICES WITHIN THE CITY OF MAPLE GROVE. YOU ARE FURTHER NOTIFIED that, in accordance with City Code 10-8 and 10-192, the City Council will hold a hearing on revocation of your Personal Service License on December 7, 2015 at 7:00 p.m. Based on the evidence and testimony at the hearing, the City Council will determine if circumstances warrant the revocation of your Personal Service License. At the hearing, you may present evidence and testimony to the City Council. The City Council at the hearing will inform you, the licensee, of all information upon which the alleged violation has been determined. The City Council will make a final order regarding the reinstatement, suspension, or termination of your license following the hearing. Al Madsen, City Clerk
Affidavit of Service: STATE OF MINNESOTA } SS COUNTY OF HENNNEPIN -" being duly sworn states that on (s)he served the attached Notice of License Suspension on correct copy of each document to her at by handing her a true and (Name) (Title) Officer's signature Subscribed and sworn to before me this day of, 20 Notary Public