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    19.    
City Council Regular
Meeting Date: 11/06/2019  
Subject:    Consider Revocation of Therapeutic Massage Enterprise License for Cloud 9 Massage LLC - 11284 Robinson Drive NW
Submitted For: Joan Lenzmeier From: Joan Lenzmeier, City Clerk

INTRODUCTION
Council is asked to consider revocation of Therapeutic Massage Enterprise License issued to Cloud 9 Massage LLC located at 11284 Robinson Drive NW.
DISCUSSION
At the September 17, 2019 City Council meeting, conditional approval of a therapeutic massage enterprise license was granted to Thomas Perry operating as Cloud 9 Massage LLC.  Since that conditional approval, city staff has been working with Mr. Perry to bring the building into compliance with the fire code, building code, and the health and sanitation section of the City's licensing code.  Staff acknowledges the efforts and willingness of Mr. Perry to do the work necessary for the building and the business to meet the codes. 

Mr. Perry's approval was also conditioned on providing a city licensed massage therapist which, as of this date, he has failed to do. 

Additionally, various code violations have been brought to the attention of City staff as follows:

1.  City Code Chapter 5-2909 requires the therapeutic massage enterprise to maintain a public liability insurance policy with limits of not less than $1,000,000.00 issued by a company authorized to do business in the state of Minnesota.  The policy must insure the enterprise, its owners, agents, and employees against any and all loss arising out of the use, operation, or maintenance of the enterprise.  A certificate evidencing such insurance must be filed with the City before a license will be issued. Failure to maintain such insurance in full force and effect constitutes grounds for suspension or revocation of a therapeutic massage enterprise license. 

As required by city code, Mr. Perry provided a copy of Certificate of Liability Insurance for the business.  City staff has determined that the Certificate of Liability Insurance provided is fraudulent.  Staff contacted the insurance company listed on the Certificate and was told that Cloud 9 Massage LLC is not licensed through their office.  Additionally, the insurance agent informed staff that insurance on the business is being provided by the current owner, J. Wong or Wang and is insured under the business name Ming Massage.

2.  City Code Chapter 5-2910, provides a list of circumstances that makes a person(s) ineligible for licensure as follows:  (a) The applicant is a minor at the time the application is filed. (b) The applicant has been convicted of a crime related to the licensed occupation as prescribed by Minnesota Statutes, section 364.03, subdivision 2, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties and responsibilities of a licensee as prescribed by Minnesota Statutes, section 364.03, subdivision 3. (c) The applicant is not of good moral character and repute. (d) The applicant is not the real party in interest of the enterprise.  (e) The applicant has misrepresented or falsified information on the application.

When city staff made contact with the insurance company listed on the Certificate of Liability Insurance, staff was informed that the business was owned and insured by a J. Wong or Wang.  This is a violation of City Code Chapter 5-2910(d) as Mr. Perry appears to not be the real party in interest of the enterprise.  Additionally, the former owner of Ming Massage came to City Hall to ask for police reports related to Ming Massage at 11284 Robinson Drive.  During her visit, she made comments related to a buyer/owner of her former business that was not Thomas Perry.

3.  City Code Chapter 5-2910, provides a list of circumstances that makes a person(s) ineligible for licensure as follows:  (a) The applicant is a minor at the time the application is filed. (b) The applicant has been convicted of a crime related to the licensed occupation as prescribed by Minnesota Statutes, section 364.03, subdivision 2, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties and responsibilities of a licensee as prescribed by Minnesota Statutes, section 364.03, subdivision 3. (c) The applicant is not of good moral character and repute. (d) The applicant is not the real party in interest of the enterprise.  (e) The applicant has misrepresented or falsified information on the application.

It is the position of staff that Mr. Perry has misrepresented and/or falsified information on the application as it relates to ownership of the business as well as provided a fraudulent Certificate of Liability Insurance.  This is a violation of City Code Chapter 5-2910(e).
 
4.  City Code Chapter 5-2904 License Required.  No person may provide, offer, engage in, or carry on massage services in the City, and no therapeutic massage enterprise may employ a person to provide massage services, unless the person is licensed as a therapeutic massage therapist by the City.
 
As of this date, Mr. Perry has failed to meet the requirements of conditional approval as it relates to providing a licensed massage therapist as is required by City Code Chapter 5-2904.

Per City Code requirements, a letter outlining these code violations and informing Mr. Perry that this revocation recommendation would be on the November 6, 2019 City Council meeting was sent by Registered Mail.

Based on the above-stated facts, staff recommends revocation of the Massage Enterprise License conditionally issued to Cloud 9 Massage LLC effective immediately.
RECOMMENDATION
Staff recommends revocation of the Therapeutic Massage Enterprise license issued to Cloud 9 Massage LLC, effective immediately based on the following:

1.  Violation of City Code Chapter 5-2909 - Insurance.  For providing fraudulent Certificate of Liability Insurance.  There is no public liability insurance for the business entity Cloud 9 Massage LLC;

2.  Violation of City Code Chapter 5-2910 (d) - Persons ineligible for licensure.  The applicant is not the real party in interest of the enterprise;

3.  Violation of City Code Chapter 5-2910 (e) - Persons ineligible for licensure.  The applicant has misrepresented or falsified information on the application; and

4.  Violation of City Code 5-2904(2):  No therapeutic massage enterprise may employ a person to provide massage services, unless the person is licensed as a therapeutic massage therapist by the City.  There is no city licensed massage therapist at Cloud 9 Massage LLC.

 

Attachments
Revocation Notice Letter
Supplemental Information Added at City Council Meeting

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