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ADMINISTRATIVE REPORT
Date: November 12, 1996
Dept. File No.: PRA/96-061
TO: Vancouver City Council
FROM: Chief Constable
SUBJECT: Amendment to the License By-law
Postal Box Rental Services
RECOMMENDATION
A. THAT the License By-law be amended to require businesses
operating a postal box rental service to verify the name and
current residential address of every person who rents, leases,
owns or has possession of a post box on the premises by means
of requiring every person who rents, leases, owns or has
possession of a post box on the premises to produce defined
identification; and requiring the businesses operating a post
box rental service to record the type of identification used.
B. THAT the License By-Law be amended to include businesses
operating a mail drop service. The amendment will include a
requirement for the business operating a mail drop service to
verify the name and current residential address of every
person who for or on behalf of whom that business collects
mails by means of requiring every person for or on behalf for
whom that business collects mails to produce defined
identification; and requiring the businesses operating a mail
drop service to record the type of identification used.
C. THAT the Director of Legal Services be authorized to bring
forward the appropriate amendments.
CHIEF CONSTABLE'S COMMENTS
The Chief Constable RECOMMENDS approval of the foregoing.
COUNCIL POLICY
There is no applicable Council policy.
PURPOSE
This report recommends a change to the License By-law to make the by-law
more effective in the regulation of the users of post boxes and mail
drop services.
BACKGROUND
In 1982 the License By-law was amended to provide some measure of
control over post boxes. The amendment arose out of concern that the
boxes could be used by unknown persons to fraudulently receive money or
orders in connection with an unlicensed business. The amendment
required the operator of a post box rental service to maintain a record
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of the people using the service; and that the record be available for
inspection by the Chief License Inspector and Chief Constable. It also
required the licensee to ensure that any person using the service for
business holds a City business license. The Vancouver Police Department
however, has not found the by-law to be an effective deterrent in
preventing fraudulent use of the postal boxes by the users and have
initiated a request to amend the by-law.
DISCUSSION
The Vancouver Police Department s Commercial Crime Unit spends a great
deal of time on investigations surrounding persons establishing false
businesses to take advantage of unsuspecting people. Criminals use
legitimate businesses that offer mail services such as, postal box
rental services or office rental services, to establish an address from
which they can not be traced. This protects their anonymity from victims
and the police. Police investigations are limited by the inaccurate
information of the user of the postal box or service which is
maintained by the operator of the business. Presently, there is no
requirement for the person operating the business of a postal box rental
service or office rental services to verify a person s name and address,
using specific identification (identification will be defined as in the
Second-hand Dealers By-law) and to record the type of identification
used to verify same.
A postal box rental service is a business that rents, leases or sells a
receptacle or box for receiving mail. The user accesses their mail by a
key. An office rental service provides various services to businesses
or individuals such as: reception services, office space, e-mail and
mail drop services. For a monthly fee the office rental service,
provides an address, usually an actual office address as opposed to a
post box number, to where the mail is delivered. The staff at that
location sort the mail for their various customers. In most cases the
mail is not placed in a physical box or receptacle, but rather the owner
of the mail either physically picks it up or it is delivered by courier
to the user.
Amending the License By-law will act as a deterrent to fraudulent use of
post boxes or mail drop service, once possible offenders become aware
that proper identification is required. In addition, maintaining
accurate user information aids the police when investigating an alleged
fraud where the suspect has used a postal box or service to scheme or
scam unsuspecting citizens. This also assists the Permits and Licenses
Department in their regulation efforts. The same person who allegedly
commits the fraud using the postal box or service invariably does not
have a business license. When Permits and Licenses investigates a
citizen complaint of this nature, they often find the addresses and
names maintained by the Postal box or mail service are incomplete or
false and; therefore, the investigation often ends at the business that
provides the service.
The proprietors running these services will benefit as its ensures their
customers are providing accurate information. This type of by-law was
enacted in Burnaby and it includes the same requirements that this
amendment will have. Many of the same businesses that offer these
services have businesses in Burnaby where they are already subjected to
the by-law. The majority of persons who access these services are
legitimately using the service, it is only a small percentage who
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fraudulently use these services. That small percentage however,
disproportionately tax the city s limited resources. This amendment is
targeted at reducing that financial cost as well as taking a proactive
approach to preventing crime.
ENVIRONMENTAL IMPLICATIONS
There are no environmental implications.
SOCIAL IMPLICATIONS
The by-law amendment will improve investigations and law enforcement of
fraudulent users, which previously were extremely difficult if not
impossible to follow-up. It will also improve the service response by
the police to the public regarding these types of investigations.
FINANCIAL IMPLICATIONS
Permits and Licenses Department and the police have limited resources
and trying to make efficient use of those resources is a priority by
both departments. The amendment does not add any cost to the businesses
providing the services defined under the by-law or the City.
IMPLEMENTATION AND COMMUNICATION PLAN
The recommended by-law amendment is a consequence of the inability and
in some case reluctance of businesses to obtain current and correct
information from the users of the postal boxes and mail services. Upon
approval of the by-law amendments written notice will be communicated to
the businesses affected by the amendments.
CONCLUSION
The recommended by-law amendment will prevent crime by acting as a
deterrent to some offenders, as well as assist the police and Permits
and Licenses Department in any required follow-up when investigating an
allegation.
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