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<br />L /...7- / <br /> <br />REPORT <br /> <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />July 11, 2005 <br /> <br />Subject <br />Appeal Hearing in the denial of a Massage Establishment Permit, under 18A.23 RCC <br /> <br />Recommendation <br />In the matter of Tiffany Xu, the City Council should continue the hearing of the denial of a <br />massage establishment application to July 25, 2005. <br /> <br />Background <br />On May 5, 2005 Tiffany Xu filed an application for a massage establishment permit with the <br />Police Department. She intends to open a massage parlor at 465 Convention Way, Suite #6 in <br />Redwood City. Her application indicated she was the sole person who would have a financial <br />interest in this business, that she was certified in massage therapy by an educational program <br />certified by the California State Department of Private Post-secondary Education, and that she <br />was the manager of a massage parlor known as the Bay Health Care Center Inc. in Fremont <br />California, she listed no other massage establishment work history on her application and all of <br />this information was found by staff to be false. <br /> <br />Pursuant to Section 18A.3 and 18A. 7 a background investigation was conducted which revealed <br />that: <br />1. <br /> <br />Tiffany Xu mischaracterized her employment as a manager in the employ of Bay Health <br />Care Center in Fremont where she actually is the owner of this massage establishment in <br />Fremont and of another establishment in Walnut Creek. <br />2. The school certificate which Ms. Xu submitted as evidence of massage training has been <br />de-certified by the State of California for selling certificates of graduation. The owner of <br />the school in Milpitas has since been convicted for criminal fraud. <br />3. In appealing the denial of the permit, Mr. Jason Dai admits he has financial interest in the <br />intended massage parlor which Ms. Xu intends to open in Redwood City. This information <br />was omitted from her application in violation of Section 18A.3 Redwood City Code <br />thereby not subjecting his background to investigation as required by the Code. <br />4. Ms. Xu and Mr. Dai admit the information they provided in her application was incomplete <br />and offered to provide full disclosure of their massage establishment interests, however <br />they failed to provide any information about the Walnut Creek establishment. <br />5. Ms. Xu signed a sworn statement indicating the information she had provided was true, <br />complete, and she agreed that false statements were grounds for denial of the permit. <br />6. Extensive documentation related to the business practices of Ms. Xu and Mr. Dai are <br />available to Council. These include the application, advertisements, reviews, a search <br />warrant affidavit, arrest reports, and other investigative documents. <br />