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8.1. SR 09-08-2015 Eclty1� ,.,�� Request for Action River To Item Number Mayor and City Council 8.1 Agenda Section Meeting Date Prepared by General Business September 8, 2015 Tina Allard, City Clerk Item Description Reviewed by Massage Establishment and Therapist Licenses — Cal Portner, City Administrator Joy Massage Reviewed by Peter Beck, City Attorney Action Requested 1. Approve,by motion, a Massage Establishment License to Ming Liu valid to December 31, 2015, and a Massage Therapist License to Xiao Ying valid to December 31, 2015. Or 2. Deny,by resolution, a Massage Establishment and Massage Therapist License to Ming Liu and Xiao Ying. Background/Discussion Following is some history regarding the application for a massage establishment license: March 12, 2015 City received an incomplete Massage Establishment License application from Ming Hui Liu for Joy Massage. The establishment did not have a site plan,plumbing, HVAC, framing, signage, or fire requirements as required for the application in accordance with the State Building Code per Section 38-196, Compliance Pitb Building Regulations. March 27, 2015 Applicant Liu's contractor applied for a Building Permit. April 1, 2015 Applicant Xiao Ying applied for a Massage Therapist License. May 1, 2015 The Applicant's contractor purchased the Building Permit to commence work. Staff believes the Applicant decided to go a different route and the contractor never began work on the project and the permit was subsequently voided. June 24, 2015 Applicant representative (for both Liu and Ying) Ivan, applied for another Building Permit. July 1, 2015 Ivan purchased the Building Permit to commence work. July 20, 2015 City implemented a moratorium on massage establishments. August 6, 2015 Applicant Liu received his Certificate of Occupancy. August 13, 2015 Building and Fire Officials inspect premises for meeting the requirements of the licensing ordinance, Section 38-197, Design and Maintenance of Premises. Both applicants request their licenses to operate. Both applicants have submitted all application materials required by the city. This would include the city application,insurance requirements, educational requirements,workers compensation, Certificate of POWERED 6T Template Updoted 4/14 INAWRE1 Organization from the Office of the Secretary of State, and background checks. Both applicants have successfully passed their background investigations. The City Council adopted an ordinance on July 20, 2015, establishing a moratorium on the licensing of new massage and sauna establishments, effective from July 20, 2015, until January 21, 2016, unless earlier terminated or extended. The pending applications are to open a new massage establishment and to provide therapist services at the new establishment. They fall within the scope of the moratorium. Therefore, the Council could deny the applications based on the moratorium. The applications could then be resubmitted after the moratorium expires or is terminated. Financial Impact N/A Attachments ■ Massage Moratorium Ordinance ■ Resolution of Denial N:APublic Bodies\Agenda Packets\09-08-2015\Final\x8.1 sr Joy Nlossage.docx &tAEt�. to be removed C4 of tlnder]uies to be added A-dfl*kkg:E� Riv �X Ordinance 15 - 25 An Ordinance Establishing a Moratorium on the Licensing of New Massage and Sauna Establishments in the City of Elk River The C1qT Council of the City of Elk River does hereby ordain as follows: WHEREAS, the City Council has determined it is necessary for the city to update the EUk River City Code with respect to massage and sauna establishments and to maintain the status quo for a limited period of time until the City Code can be revised as necessary. It is anticipated this process will take approximately six months; and WHEREAS, the City Council finds it is necessary, in order to protect the health, safety, and welfare of the citizens of Elk River, to declare a moratorium on allowing and licensing new massage and sauna establishments within the City of Elk River until the city has completed the process of considering and revising the City Code. NOW, THEREFORE , BE IT RESOLVED by the City Council of the City of Elk River: 1. A moratorium is hereby imposed within the City of Elk River on the establishment and licensing of massage and sauna establishments as defined in the City of Elk River City Code of Ordinances. 1 The moratorium shall extend from the date of adoption until January 21, 2016, unless terminated earlier or extended by action of the City Council. 3. During the term of this moratorium, the city will not accept an application for or consider or grant any approval required by the Code of Ordinance for the establishment of a new massage or sauna establishment and will not accept an application for or issue any building permit for construction of a new massage or, sauna establishment. This Ordinance shall take effect upon adoption and be published as provided by law. Passed and adopted by the City Council of the City of Elk River this 20t" day of July, 2015. I"--FES'f J Tina Allard, City Clerk 1pEHC ® B1 NArURE I I City of Elk River Resolution 15- A Resolution of the City of Elk River A Resolution of the City of Elk River Denying Issuance of a Massage Establishment License and a Massage Therapist License WHEREAS, The City received an incomplete application for a massage establishment license on March 12, 2015 and a massage therapist license on April 1, 2015. The license applications were incomplete because as part of the application process, a building and fire inspector must sign off that the establishment is in compliance with the state building code per Section 38-196, Compliance with Building Regulations. At the time, the space was a blank canvas and didn't have a site plan,plumbing,HVAC, framing, signage, or fire requirements. WHEREAS, on March 27, 2015,Applicant Liu's contractor applied for a building permit. WHEREAS, on May 1, 2015,Applicant Liu's contractor paid for and picked up the building permit to begin work. Staff believes the Applicant decided to go a different route and the contractor never began work on the project and the permit was subsequently voided. WHEREAS, on June 24, 2015,Applicant representative (for both Liu and Ying) Ivan, applied for another building permit. WHEREAS, on July 1, 2015,Ivan pays and picks up the building permit to begin work. WHEREAS, on July 20, 2015,The City Council adopted an ordinance implementing a moratorium on massage establishments. WHEREAS, on August 6, 2015,Applicant Liu receives his Certificate of Occupancy. WHEREAS, on August 13, 2015, Building and Fire Officials inspected the premises for meeting the requirements of the licensing ordinance, Section 38-197, Design andMaintenance of Premises. Both applicants requested their licenses to operate. WHEREAS, The City Council held a public hearing on the Applications on September 8, 2015; and WHEREAS, Following completion of the public hearing, the City Council made the following findings of fact with respect to the application: 1. The Applications fall within the scope of the moratorium adopted on July 20,NATUREJ 2. The Applicants may re-apply for licensing following expiration or termination of the moratorium. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River,Minnesota, that based on the findings of fact set forth above, the Applications for a massage establishment and massage therapist license are denied because the ordinance adopted on July 20, 2015,places a moratorium on the establishment and licensing of massage establishments until January 21, 2016, unless earlier terminated or extended by action of the City Council. Passed and adopted this 81h day of September 2015. John J. Dietz,Mayor ATTEST: Tina Allard, City NATUREJ