CITY OF VANCOUVER SPECIAL COUNCIL MEETING SEPTEMBER 24, 1996 A Special Meeting of the Council of the City of Vancouver was held on Tuesday, September 24, 1996, in the Council Chamber, Third Floor, City Hall, commencing at 10:00 a.m., for the purpose of holding a Show Cause Hearing with respect to Mass Stress Management Ltd., #104 - 1701 West Broadway. PRESENT: Mayor Owen Councillors Bellamy, Clarke, Chiavario, Hemer, Price and Puil ABSENT: Councillor Ip (Sick Leave) Councillor Kennedy (Sick Leave) Councillor Kwan (Leave of Absence) Councillor Sullivan (Sick Leave) CLERK TO THE COUNCIL: Gail Johnson COMMITTEE OF THE WHOLE MOVED BY Cllr. Bellamy, SECONDED by Cllr. Clarke, THAT Council resolve itself into Committee of the Whole, Mayor Owen in the Chair. - CARRIED UNANIMOUSLY 1. Business License Number 42653 Mass Stress Management Ltd. Mr. Terry Bland, Corporation Counsel, advised that the purpose of this Show Cause Hearing was to determine whether or not the 1996 business license as referenced above should be suspended or revoked pursuant to Section 275 of the Vancouver Charter. Pre-circulated with the agenda was a copy of the Notice of Show Cause Hearing dated September 5, 1996 which had been served to the business address for Mass Stress Management Ltd., and to the registered principle's residence. It was also served to Mr. James Sun at his residence by a City Process Server. Upon determining that the owner or his representative was not present at the Hearing, it was MOVED By Cllr. Bellamy, THAT the Show Cause Hearing proceed in the absence of the owners of Mass Stress Management Ltd. - CARRIED UNANIMOUSLY City Evidence Mr. Bland submitted copies of the following, which are on file in the City Clerk's Office: - Affidavit of Service dated September 16, 1996 - City of Vancouver 1996 Business License for Mass Stress Management Ltd. issued March 7, 1996 - Company Search for Mass Stress Management Ltd., incorporated on April 19, 1996 and Mass Acupressure Ltd., incorporated on October 31, 1994. Mr. Bland explained that prior to Mass Stress Management Ltd. operating at #104 - 1701 West Broadway, the business was called Mass Acupressure Ltd., the principal of which was Mr. James Sun. Mr. Paul Teichroeb, Deputy Chief License Inspector, advised that Mass Stress Management's business license lists acupressure as its business activity, which falls under the health enhancement category. Acupressure deals with the body's nervous system and is used to reduce stress and promote body relaxation. Mr. Bland called Sgt. Wayne Holland, Vancouver Police Department Vice Unit, as a witness. Sgt. Holland recalled that Crown Counsel, Dan Moon, had provided him with documents on information uncovered in 1995 which had led to Mr. James Sun, professed agent of the said premises, pleading guilty in 1996 to a charge of keeping a common bawdy house. Investigations proved that after a normal body massage, a "special massage" could be received involving sexual services provided for a sum that was over and above the regular massage charge. In response to a question, he acknowledged that in general, bawdy houses posing as legitimate businesses are a problem in the City including the peripheral issues arising from these operations such as the availability of alcohol and drugs, and extortion of legitimate patrons. Constable Vivian Fong, Vancouver Police Department, declared that during the undercover investigation in 1995, she had posed as a perspective employee of Mass Acupressure, and during discussions with "James" who identified himself as the owner, about the process and charges for providing regular massages and "special" massages, he offered a scale of pay for sexual services. However, he said he did not want to know what went on behind closed doors. In response to questions from Mr. Bland, Constable Fong confirmed Mr. Sun had not asked her for any proof of qualifications as an acupressurist and had not mentioned the acupressure therapy business. Once she was hired, there were no normal deductions from her pay. Mr. Bland questioned Detective Bruce Eburne, Vancouver Police Department Vice Unit, who confirmed he had been in the said premises when the business was known as Mass Acupressure Ltd. and the principal Mr. Sun was present. He also confirmed that Mr. Sun was on the premises on July 24, 1996, when two undercover officers attended the business known as Mass Stress Management at the same address. At that time, Mr. Sun indicated he was only visiting the premises. It was noted the lobby of the premises was monitored by camera. Constable Greg Louis, R.C.M.P. Co-ordinated Law Enforcement Unit, stated that on July 24, 1996, at 18:25 hours, he attended the said premises, undercover and wearing a microphone so that his team members could monitor all conversations, to determine whether or not sexual services were being procured. He gained access after using an intercom system and observed three well-dressed females in the lobby. He made up a story of having been referred to the premises to obtain a "fun" massage. He discussed regular massage service charges with "James", (copy of business card on file City Clerk's Office) who fit the previous officers' description and voice of the owner James Sun and settled for a double session for $79. After showering, he obtained massages, while wearing only underclothes, from two different well-dressed women of Asian decent. "Lillie" applied body oil, and tried unsuccessfully to remove his underwear, she then massaged him while straddling his back. When he asked for a special "fun" massage, he was told that did not happen on the first visit and to come back another time and ask for her. He left the premises at 20:48 hours. Constable Greg Boggiss, Ports Canada Co-ordinated Police Unit, reported that on July 24, 1996, at 22:00 hours, he arrived at the said premises, undercover, and after gaining access using an intercom system, asked the attendant at the front desk the price for a massage and a sexual favour. After enquiring if he was a policeman, he was given information on the price of a massage only, which he paid, and was admitted to a room with a telephone and shower stall. An Asian female named "Ginger" dimmed the room lights, massaged him while pressing her body close to his. When he asked for a sexual favour she enquired whether or not he was a policeman. He convinced her he was not and she then accepted $60 to provide him with a sexual activity. She told him the boss would take $20 out of this amount and she would keep $40. At this time he heard the police team in the outer office, the dimmed lights suddenly went brighter although the switch had not been touched, and a police officer opened the door to "see if everything was alright". Constable Boggiss then dressed and left the premises at 23:40 hours. He commented that throughout his dealings with people at the front counter and with "Ginger", there were no language barriers and the massage was not similar to any therapeutic massages he had previously received. Mr. Bland called on Ms. Ann Hopper, Registered Massage Therapist, and owner of Advanced Therapeutic Massage at #305 - 1701 West Broadway to explain her concerns. She stated that the operation of Mass Stress Management has been detrimental to her business with new patients accidentally going to #104 and not being advised they were in the wrong place. Also, people looking for the type of service that Mass Stress Management offers have mistakenly ended up in her office, causing her concern over her personal safety and that of her business associates, especially when working late. Through the front entrance to Mass Stress Management she has observed pornographic movies on their T.V., and there often exists offensive smells of cooking, incense burning and smoking (this is a no-smoking building). All these activities create an unprofessional and undesirable environment for other legitimate businesses and their clients. Her business consists mostly of patients referred by physicians and their visits are covered by the B.C. Medical plan. There is no regulatory body governing acupressurists and the employees of Mass Stress Management are not registered massage therapists. Dr. C. Bethel, Dentist, explained his practice is located in 1701 West Broadway and he is dismayed by the inappropriate behaviour exhibited by employees of Mass Stress Management in the lobby of the building. He also has witnessed inappropriate behaviour in cars in the parking lot at different times of the day. He agreed with Ms. Hopper that these activities and this business have had a negative effect on other legitimate businesses. Summation Mr. Bland observed that Council's decision about whether or not to revoke the license for Mass Stress Management would be based on Council's belief that this business and the employees have been engaged in misconduct and are operating in a manner which is incompatible with the purpose of the license provided by the City of Vancouver. Consideration should be given to the activities of the business and how they differ from a regular business of the type it purports to be, i.e., the intercom and camera monitoring system to gain access to the premises; the way in which the employees are dressed; individual room lights which are controlled by a dimmer switch and a central source in case of unexpected visitors; the acceptance of money in return for a sexual activity; and the inordinate concern about police being on the premises. In response to a question, Mr. Bland explained the investigation of Mass Stress Management commenced after the Mayor's office received complaints which were subsequently passed on to the police for follow-up. Ms. Hopper had also contacted the police to voice her concerns. Council Discussion During discussion, Council explored ways to prevent the business from continuing to operate under a new name, and was advised that staff could flag the address so that any future applications would be referred to Council before issuance of a license. Council also believed the owners of the building should be more aware of who is leasing space in the building. It was acknowledged there is no regulatory body to govern the activities of acupressurists and it was agreed action should be taken to discourage activities that are not compatible with the City of Vancouver's business license. MOVED BY Cllr. Bellamy, A. THAT the business license for Mass Stress Management Ltd. for operation of a business at #104 - 1701 West Broadway be revoked. B. THAT the owner of the building at 1701 West Broadway be advised of the Show Cause proceedings and results with respect to the business license for Mass Stress Management Ltd., with a request from the City that in future, the owner be more aware of who is leasing or renting offices in this building. C. THAT the Director of Permits & Licenses ensure that any future applications for a business license for the premises at #104 - 1701 West Broadway, of the same type as presently held by Mass Stress Management Ltd., be referred to Council before being granted. - CARRIED UNANIMOUSLY Mr. Bland thanked the members of the various Police departments for their co-ordinated efforts in bringing this matter before Council. RISE FROM COMMITTEE OF THE WHOLE MOVED by Cllr. Bellamy, THAT the Committee of the Whole rise and report. - CARRIED UNANIMOUSLY ADOPT REPORT OF THE COMMITTEE OF THE WHOLE MOVED by Cllr. Bellamy, SECONDED by Cllr. Puil, THAT the report of the Committee of the Whole be adopted. - CARRIED UNANIMOUSLY The Special Council meeting adjourned at 11:35 p.m. * * * * *