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03-13 Resolution No. 11483 RESOLUTION NO. 11483 RESOLUTION AUTHORIZING THE REVOCATION OF THE THERAPEUTIC MASSAGE ENTERPRISE LICENSE OF FIRST STEP, LLC (D/B/A RICHFIELD HEALTH MASSAGE) LOCATED AT 7610 LYNDALE AVENUE SOUTH, SUITE 400, RICHFIELD, MN 55423 WHEREAS, First Step, LLC ("Licensee"), a Minnesota I imited liability company, operated a therapeutic massage business at 7610 Lyndale Avenue S., Ste. 400, Richfield, MN; and WHEREAS, pursuant to Richfield City Code Subsection 1188.05, therapeutic massage enterprises and individual massage therapists are required to be licensed by the City; and WHEREAS, Subsection 1188.09 of the Richfield City Code provides that the owner or operator of a licensed therapeutic massage enterprise may employ only licensed therapeutic massage therapists to provide massage services; and WHEREAS, Subsection 1188.21 of the Richfield City Code contains requirements and restrictions related to the operation of a therapeutic massage enterprise, including but not limited to the following: 1) No therapeutic massage enterprise shall employ or use any person to perform therapeutic massage who is not licensed as a therapeutic massage therapist under this code, unless the person is specifically exempted from obtaining a therapist license in Section 1188.07 of this code (Subd. 5); 2) The massage therapist must require that the person who is receiving the massage will at all times have that person's breasts, buttocks, anus and genitals covered with non-transparent material or clothing. A massage therapist performing therapeutic massage must have the therapist's breasts, buttocks, anus and genitals covered with a non-transparent material or clothing at all times (Subd. 6); 3) A massage therapist may not intentionally massage or offer to massage the penis, scrotum, mons veneris, vulva or vaginal area of a person. (Subd. 7). WHEREAS, on December 26, 2017, the Richfield Police Department first became aware of potential illegal activity on Licensee's premises after a tip from a patron; WHEREAS, after a thorough investigation and undercover operation, a search warrant was obtained and executed on January 11, 2018, by the City of Richfield Police Department, which discovered several violations of City Code on Licensee's premises, including the following: 1) Three individual massage therapists were engaging in prohibited massage by failing to use the required coverings on persons receiving a massage and by massaging and offering to massage prohibited areas of the body; and 2) Three individual massage therapists had not obtained the required license from the City. 1 WHEREAS, City staff has provided adequate information to the Council that Licensee was aware of the licensure requirement for individual massage therapists and that after having such knowledge, the therapists did not obtain the required licenses; WHEREAS, Licensee is responsible for the lawful operation of the business; WHEREAS, City Code Subsection 1188.27 provides that a therapeutic massage enterprise license may be suspended or revoked by the Council upon notice and public hearing for any violation of the Code; WHEREAS, on January 16, 2018, the City sent a notice to Licensee stating the staff's intent to recommend to the City Council that Licensee's license be revoked based on the Code violations and informing Licensee of its right to a hearing; WHERAS, Licensee's attorney acknowledged in a letter dated January 22, 2018, to Chief Henthorne that Licensee wished to proceed with the hearing; WHEREAS, the Council held a public hearing on February 13, 2018 and Licensee's representative, Liuhe Wei, and his attorney were present and addressed the Council; WHEREAS, Mr. Wei and his attorney conceded that Code violations had occurred on Licensee's premises and that such violations could be the basis for a revocation of the license; and WHEREAS, allowing Licensee to continue operation of the business in an illegal manner would permit the continuation of a significant risk to public health and safety. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota, as follows: 1. The recitals outlined above are hereby adopted by the Council as factual findings and are fully incorporated herein. 2. The therapeutic massage enterprise license held by First Step, LLC (d/b/a Richfield Health Massage), which business was most currently located at 7610 Lyndale Avenue South, Suite 400, Richfield, MN 55423, is hereby revoked. Adopted this 13th day of March, 2018. Pat Elliott, Mayor ATTEST: Elizabeth Van Hoose, City Clerk 2