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SR-7-C (6) ~, CA:RMM:iuyt/hpadv City Council Meeting 6-2-92 1-.~ r:.l1N ~. ~~., Santa Monica, California lI"... STAFF REPORT TO: Mayor and City Council FROM: City Attorney SUBJECT: Appeal of massage parlor permit revocations, Terry Werner and Ilye Nadeau, Case Nos. HE 90-8, 13 A. BACKGROUND Terry Werner owns the Townhouse massage parlor at 1447 sixth street in Santa Monica. Ilye Nadeau is one of Werner's "masseuses." In 1990, the Chief of Police revoked the permits of Werner, Nadeau and two other masseuses after three separate incidents involving illegal sexual activity and other Municipal Code violations at the Townhouse. B. EVIDENCE AT HEARING All four appealed the revocations to the City Hearing Examiner. (Two of the masseuses later withdrew their appeals.) The hearing was held in June and July 1991. The City presented the following evidence to the Hearing Examiner: - 1 - 1-<!, .-~- Date of InCldent 4/19/90 5/19/90 6/20/90 Code Employee violations Nadeau intentional contact with customer's genitals; customer naked; masseuse exposed breasts Kwon intentional contact with customer's genitals: customer naked; masseuse exposed breasts Evidence testimony of under- cover officer and monitoring officer undercover officer, monitoring officer testimony; condom; audiotape eyewitness accounts of two officers; condom The appellants put on no evidence to contradict the facts An sexual intercourse with customer; customer naked: crotchless garment from any of the three incidents. Thus, the City's factual case was entirely unrebutted. C. DECISION OF HEARING EXAMINER The Hearing Examiner upheld the revocations. He found that there were multiple violations of Municipal Code Section 62010 in each incident (see chart above). Under Municpal Code Section 62014 (f), two or more violations of section 62010 in the same year mandate revocation of the owner's permit. RECOMMENDATION All three incidents were proven by clear evidence, none of denied. which was rebutted by the appellants. - 2 - The appeals must be , ,. - PREPARED BY: Robert M. Myers, City Attorney Adam Radinsky, Deputy City Attorney iuyt/adv - 3 -