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Home My WebLink AboutRes 2010-24 - CUP 08-108 (Chun Hua Deng) Resolution No. 2010-24 CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT REQUEST: UPHOLD THE PLANNING COMMISSION'S DECISION TO REVOKE AN EXISTING CONDITIONAL USE PERMIT (CUP) FOR ANNA'S HEALTH SYSTEM, A MASSAGE THERAPY ESTABLISHMENT LOCATED IN THE PALMS TO PINES WEST SHOPPING MALL AT 72-655 HIGHWAY 111, SUITE B-7. CASE NO. CUP 08-108. - - --. �,�,,,�„��.._..�__.�, � % � � � - oZ0 � SUBMITTED BY: Kevin Swartz �� - ��. � Assistant Planner ,�'/g�� (�, /��r� �(Ct�.. , . . � �.._�._�...._�,._..��_.. � � APPLICANTS: Chun Hua Deng � ��r��+DRF.��i��,____ _ _ � 45-775 Ocotillo Drive, #1 � Palm Desert, CA 92260 * By �nute Motion: 1) Refer the appeal to a Hearing Officer; 2) continue the Todd Hill public hearing to be renoticed at a later 20 Mission Court date following receipt of the Hearing Rancho Mirage, CA 92270 Officer Report. 4-0 (Ferguson ABSENT) PROPERTY Shelter Bay Retail Group OWNER: 32-605 Temecula Parkway, Suite #204 Temecula, CA 92592 CASE NO: CUP 08-108 DATE: April 22, 2010 ATTACHMENTS: Resolution Legal Notice Planning Commission Meeting Minutes dated 16 March 2010 Revocation Letter from Best Best & Krieger dated 2 March 2010 Summary of Police Activity dated 2 March 2010 Application to Appeal and letter submitted by Todd Hill dated 25 March 2010 Recommendation That the City Council adopt Resolution No.10- 24 upholding the Planning Commission's decision to revoke existing CUP 08-108 for Anna's Health Anna's Health System CUP 08-108 April 22, 2010 Page 2 of 4 System, a massage establishment in a 1,040 square foot commercial suite located at 72-655 Highway 111, Suite B-7. Planninq Commission Recommendation On March 16, 2010,the Planning Commission revoked CUP 08-108 on a 5-0 vote. The Commission listened to Mr. Todd Hill speak on behalf of the applicant. Mr. Hill stated that the business owner, Chun Hua Deng, was not the person who was arrested; her employee was. Mr. Hill asked that the Commissioners not punish Ms. Deng for a violation committed by someone else. Commissioner DeLuna noted that there is a two- year summary of activities from the Palm Desert Police Department, with one resulting in an arrest. Commissioner DeLuna said that it was a hard decision to make, but she would move for revocation of the CUP. Executive Summary Approval of the staff recommendation would reaffirm the Planning Commission's decision to revoke the CUP due to violations of the Palm Desert Municipal Code. CUP 08-108 allowed a massage establishment in a commercial suite. The business was shut down by the Police Department after undercover operations. Revocation of the CUP would prohibit any other massage business from opening at the same location for at least one year. On March 25, 2010 the applicant appealed the Planning Commission's decision for revocation, requesting a modification to the CUP that would allow the owner to be a sole operator, without employees. Backqround In accordance with the City of Palm Desert Municipal Code Section 5.87.040, all massage establishments are required to obtain a CUP and a Massage Establishment Permit. On April 1, 2008, the Planning Commission approved Resolution No. 2470, which allowed Anna's Health System to operate within a 1,040 square foot commercial suite located in the Palms to Pines West shopping center. On March 2, 2010, the Police Department shut the massage operation down, because the applicant was operating the massage establishment in violation of P.D.M.C. 5.87.180(B)(4). At the March 16, 2010 meeting, the Planning Commission held a public hearing and revoked CUP 08-108 based on evidence presented during the public hearing. C:�Documents and SettingsUcsw:uYz�l.ocal Settings\Temporary Intemet Files\CunteucOuUook\8G89FRAL\CC Staff Report haal.doc Anna's Health System CUP 08-108 April 22, 2010 Page 3 of 4 Discussion As a part of the City's ongoing monitoring of massage establishments, the Police and Code Enforcement Departments routinely performed inspections at this location, along with undercover operations. In December 2008, a Palm Desert City Council member reported to the Police Department that a citizen had been solicited at Anna's Health System. The citizen indicated that he had gone to the location for a massage and the therapist had solicited an il�egal sexual act. The citizen declined the solicitation and reported the incident to the Council member. In October 2009, members of the Palm Desert Special Enforcement Team assisted Code Enforcement with a monthly compliance check at various massage establishments. Anna's Health System was found to be out of compliance with regard to their daily log. In November 2009,members of the Palm Desert Special Enforcement Team conducted an undercover operation at Anna's Health System involving two separate officers. During the first officer's massage, the undercover officer's genitals were fondled by the massage therapist. Negotiations for additional sexual activity were initiated. The therapist left the room for a short time, but upon returning declined any further negotiations. A second undercover officer was sent into the location, but no inappropriate behavior or solicitation occurred. In February 2010�members of the Palm Desert Special Enforcement Team assisted Code Enforcement with a monthly compliance check at various massage establishments. Anna's Health System was again found to be out of compliance with regard to their daily log. Also, in February 2010 members of the Palm Desert Special Enforcement Team conducted an undercover operation at Anna's Health System. During the operation, the undercover officer was solicited for illicit sexual acts in the middle of his massage, and an arrest was made for prostitution. Attached is a summary of the activity that was provided by the Palm Desert Police Department dated 2, March 2010. The massage therapist failed to comply with all of the provisions of the municipal code, as required by P.D.M.C. 5.90.170. Per Palm Desert Municipal Code section 5.87.180(A) and section 5.87.180(B)(4), the forgoing constitutes grounds for revocation of the Massage Establishment Permit for Anna's Health System, as the business has repeatedly failed to comply with all applicable laws and the premises has been operated in an illegal manner. The Planning Commission revoked the CUP based on Section 25.72.130 of the Palm Desert Municipal Code, which provides for revocation of a CUP upon receiving satisfactory evidence that the permittee has failed to comply with any applicable provision of the Palm Desert Municipal Code, including but not limited to the City's building, zoning and health regulations. C:ADocuments:u�d SettingsUcsw:vtzLL,ocal Settings\Temporary Intemet FilesVContenLOuUook\RG89F8ALACC Staff Report final.doc Anna's Health System CUP 08-108 April 22, 2010 Page 4 of 4 The findings to justify the revocation of CUP 08-108 can be found in the attached resolution. The applicant submitted a letter attached to the appeal application referencing massage establishment permit No. 07-45634. The massage establishment permit was revoked on February 26, 2010, by the Business Administrator. The applicant did not appeal the revocation of the massage establishment permit. Since denial by the Planning Commission, the applicant has requested that the CUP be modified to eliminate the possibility of future employees working on-site, rather than revoking the CUP entirely, which would close the business altogether Conclusion The Planning Commission and staff believe that the revocation of CUP 08-108 is appropriate because of the history of enforcement issues with Anna's Health System. An employee at the establishment was arrested for soliciting prostitution and there have been miscellaneous code violations cited above per the Palm Desert Police and Code Enforcement Departments. Ultimately it is the business owner who is responsible for retaining and supervising employees such that business is conducted in a lawful manner. The detailed findings for revocation are identified in the attached resolution. Fiscal Analysis The fiscal impact to the City associated with revocation of the Conditional Use Permit is negligible. Submitted By: Department Head: . � � ` � , � Kevin Swartz Lauri Aylaian Assistant Planner Director, Community Development Approval: �i��%,�-,-,-�_ J M. Wohlmuth ' y Manager C:�Documents and Settings�ksw:utzU.ocal Set[ings\Temporary Intemet Files\Content.0utlook\RG89FSAL\CC Staff Report finxLdoc RESOLUtION NO. 2oio-24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, UPHOLDING THE PLANNING COMMISSION'S DECISION REVOKING EXISTING CONDITIONAL USE PERMIT CUP 08-108 ALLOWING A MASSAGE THERAPY ESTABLISHMENT WITHIN AN EXISITNG COMMERCIAL SUITE LOCATED AT 72-655 HIGHWAY 111, SUITE B-7. CASE NO. CUP 08-108 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on April 1, 2008, approve Conditional Use Permit 08-108 for Anna's Health System a massage therapy establishment located at 72-655 Highway 111 , Suite B-7; WHEREAS, on March 16, 2010, the Planning Commission of the City of Palm Desert, California, did hold a duly noticed public hearing revoking CUP 08-108 because of violation of the Palm Desert Municipal Code Sections 5.90.150 and 25.72.130 and California State law; and WHEREAS, on April 22, 2010, the City Council of the City of Palm Desert, California, did hold a duly noticed public hearing to consider the revocation of CUP 08-108 . because of violation of the Palm Desert Municipal Code Sections 5.90.150 and 25.72.130 and California State law; and WHEREAS, at said public hearing, upon hearing and considering all testimony, documentary evidence, and arguments, if any, about which the persons desiring to be heard, said, the Planning Commission did find the following facts and reasons to exist to justify the revocation of CUP 08-108: 1 . Palm Desert Municipal Code § 25.72.130 provides that the Conditional Use Permit may be revoked if the permittee: a. Has failed to comply with any applicable provision of the Palm Desert Municipal Code, including, but not limited to, the City's building, zoning, and health regulations; b. Has failed to comply with any condition imposed by the Conditional Use Permit. 2. Palm Desert Municipal Code § 5.90.150(C) provides: It is unlawful for any massage therapist, any patron, or any other person present where massage therapy services are being offered or performed, to engage in any specified sexual activities. 3. Palm Desert Municipal Code section 5.87.100(B) provides: It is unlawful for any person owning, operating, or managing a massage establishment knowingly to cause, allow, or permit in or about such massage RESOLUTION NO. 2010-24 establishment any agent, empioyee or any other person under his control or supervision to permit acts in violation of Chapter 5.90, including, specifically, Section 5.90.140 (Therapists dress and identification) and Section 5.90.150 (Other prohibited activities). 4. In December 2008, a Palm Desert City Council member reported to the Police Department that a citizen had been solicited at Anna's Health System. The citizen indicated that he had gone to the location for a massage and the therapist had solicited an illegal sexual act. The citizen declined the solicitation and reported the incident to the Council member. 5. In October 2009, members of the Palm Desert Special Enforcement Team assisted Code Enforcement with a monthly compliance check at various massage establishments. Anna's Health System was found to be out of compliance with regard to their daily log. 6. In November 2009, members of the Palm Desert Special Enforcement team conducted an undercover operation at Anna's Health System involving two separate officers. During the first officer's massage the undercover officer's genitals were fondled by the massage therapist. Negotiations for additional sexual activity were initiated. The therapist left the room for a short time, but upon returning declined any further negotiations. A second undercover officer was sent into the location, but no inappropriate behavior or solicitation occurred. 7. In February 2010, members of the Palm Desert Special Enforcement Team assisted Code Enforcement with a monthly compliance check at various massage establishments. Anna's Health System was found to be out of compliance with regard to their daily log. 8. In February 2010, members of the Palm Desert Special Enforcement Team conducted an undercover operation at Anna's Health System. During the operation, the undercover officer was solicited for illicit sexual acts in the middle of his massage and an arrest was made for prostitution. 9. The massage establishment has failed to comply with the provisions of the municipal code, as required by P.D.M.C. 25.72.130. 10. The foregoing is grounds for revocation of CUP 08-108 for Anna's Health System as the premises for which the permit was issued were being operated in an illegal or disorderly manner, by virtue of the arrest, in violation of Palm Desert municipal Code Section 5.87.180(B)(4). RESOLUTION NO. 2010-24 NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Palm Desert, California, as follows: 1. That the above recitations are true and correct and constitute the findings of the City Council in this case. 2. That Conditional Use Permit 08-108 is hereby revoked. PASSED, APPROVED AND ADOPTED at a regular meeting of the Palm Desert City Council held on 22�d day of April, 2010, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: Cindy Finerty, Mayor ATTEST: Rachelle Klassen, City Clerk City of Palm Desert, California APPROVED AS TO FORM: David J. Erwin, City Attorney ciry � � � � i �i � � s � � � � 73—S�o Fi<��_u WnaiNc Dkn�e � Pni n� Dt,ekr,Cni.iFOKni.4 qzz6o—z578 � rtL:760 ;46—o6n r�x:76o 34i-7oqH '� inibr..�E�aln,-de�cn.urk . _ . ._. .. _ .. ...__ . CITY OF PALM DESERT LEGAL NOTICE CASE NO. CUP 08-108 NOTICE IS HEREBY GIVEN that a public hearing will be held before the Palm Desert City Council to uphold the Planning Commission's decision to revoke an existing Conditional Use Permit for Anna's Health System a massage therapy establishment within the Palms to Pines west shopping mall. The property is located at 72-655 Highway 111, Suite B-7. � L-I;�' �_LS__L1J__L1_l t� �� 3��I HAHN RD RANCHO GRANDE�� `� � � a \ w � j '•4 UI W�� x.� '`�.� � �� - � ,..,� _ �"` P ''C��-� � � I �`� A w'� �' �I�Tr Rs� r , ��j C3'"J�'q ry ```�q'�-��_�� a L� L�L�LL ,��Cp�@ s4NoA�y � . •.., ...,,,,�,�' . � rj ""/".""�`NIGHWqY�Y 1'^" �H4NY 111""'^^.- �� e��\�C.-/ � �i_J-- - � j� : Se��%1___� x•Q� � �; ��\C.�� -sc: �?� �4 "`.-�..,..s ._.�� > mLD 0 �SQ3'0�7��a/�mLTJ� �m A5E0=__�__._�_..:. 4 1_t� � ��'z..� �B �,��/��mm��m�� `�� a �`9� 0 m6��~�E�v3'��' �/1�� A�T4y4 , y�0mm \C�r�y� � -�-s� _ Y'4.ST...... . ..._-. .�_._......--.--....:,.._..,,,,r..,.,,, `��-,5�� y^ . G� �0 Y- �r,/ � y�/ � BEAVERTA/LST� p�Oh 'q.T��2 �� Q/ � � ,a � - `'g ! � '�Q �HEDGENOCiST ��. �O y�0� _. i � �W .A.T�� ...,.",, `�. �G� VO � � GHELSEA CiR � J7'O j�, O C� `d' . � ��' ��02 /�[ \/� . �'Activa 4a'ya �`I�atoel ..,.:+::", .. , ��"�": < y {��-"-1 •""�'�'� __�..�`�.,._�. � ll��$381t l. � SAID public hearing will be held on Thursday, April 22, 2010 at 4:00 p.m. in the Council Chamber at the Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert, California, at which time and place all interested persons are invited to attend and be heard. Written comments concerning all items covered by this public hearing notice shall be accepted up to the date of the hearing. Information concerning the proposed project is available for review in the Department of Community Development at the above address between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday. If you challenge the proposed actions in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to,the public hearing. PUBLISH: Desert Sun RACHELLE KLASSEN, City Clerk April 11, 2010 Palm Desert City Council a} MINUTES �� PALM DESERT PLANNING COMMISSION MARCH 16, 2010 funds, and upon review by the Director of Public Works, he determined that it wasn't necessary to continue holding these funds and they could be returned at this time. Chair Limont o�ened the public hearing and asked if anyone wished to speak in FAVOR of or in OPPOSITION to the request. There was no response and Chair Limont closed the public hearing. Action: It was moved by Commissioner Tanner, seconded by Commissioner Campbell, approving the findings and recommendation as presented by s#aff. Motion carried 5-0. It was moved by Commissioner Tanner, seconded by Commissioner Campbell, adopting Planning Commission Resolution No. 2521, approving MP/PP 01-16 and TPM 30226 Amendment #2 removing portions of Department of Public Works Condition Nos. 3 and 9 as they pertain to a proposed traffic signal and $150,000 in lieu of construction fee, subject to conditions. Motion carried 5-0. """� B. Case No. CUP 08-108 Revocation - C.ITY OF PALM DESERT, Applicant Request for revocation of an existing Conditional Use Permit (CUP) for Anna's Health System, a massage therapy establishment within an existing commercial suite located at 72-655 Highway 111, Suite B-7. Assistant Planner Kevin Swartz reviewed the staff report and recommended adoption of the draft resolution revoking CUP 08-108. Chair Limont opened the public hearing and asked if anyone wished to address the Commission in FAVOR of or in OPPOSITION to the proposed revocation. MR. TODD HILL, 20 Mission Court in Rancho Mirage, informed Commission that he is a friend of the owner, Anna. He said that Anna and his wife have been friends for about ten years. There are a lot of different ways he has known her. He has known her to be a religious lady, honest and dependable; all that goes with it. His reason for being here number one was, going back to the beginning of her business her credit was not good enough to sign a contract, which he and his wife said they would do. Personally, he has lived in the desert since 1967. He has run a business here in the desert 3 MINUTES ;;� �' ALM DESERT PLANNING COMMISSION MARCH 16 2 going on 20-some years. If he felt in any way that this lady was not an honest, upstanding, legitimate business-running person, no way would he or his wife have ever taken the extra step to help her out. He said he was nervous and he never expected to be here, but he was happy to do it on her behalf because he believed in her. Mr. Hill said he read the material that was mailed to them. He didn't disagree with anything as far as the City of Palm Desert and their standards and what they expect from someone conducting business in Palm Desert. He totally agreed with it. That being said, he thought Anna understood the severity of what was being charged here. She actually worked for one day, or two or three hours, at an establishment on Washington Street about two or three years ago. She quit. She saw what was happening there and didn't like it. She didn't know where to go. She has 750 hours of training. She asked them if they would support her to open her own business so that pretty much brought them up to date. The reason she wanted to do this was because she didn't like what she saw happening and thought she could have control of her business. Basically, since she opened her business she has had four employees. The first employee lasted about two weeks and she didn't trust her and didn't believe what she was doing was what Anna wanted to be represented as; she was gone. She found a girl that was very good, but she wanted to be closer to her family in Los Angeles and since she didn't really want to leave Anna hanging, she referred another girl. Anna was pretty cautious at this point. She always had them sign disclaimers that they understood the parameters and the legalities. For this particular one, Anna asked him to go in two times and get a massage. The lady didn't know who he was and he had never met her either. Two times she did everything correctly, good massage, and he told Anna and Anna said okay. This girl basically stayed for two years. Mr. Hill said once a month the local Sheriff's Department and Mr. Pedro Rodriguez from the City come in and inspect her premises. They go through a checklist and recommend things that need to be fixed, replaced or done correctly. The only thing she's had a problem with is her sign-in register and after he talked to Mr. Rodriguez he got it straight and printed up a master copy here of what she should do. Her English isn't as good as it should be or could be, but she tries to do the right thing. On these monthly visits, it seemed, and he didn't want it taken the wrong way, but it seemed to him that there was a particular sheriff 4 MINUTES PALM DESERT PLANNING COMMISSION MARCH 16 2010 who was a little aggressive. She seemed to be a little intimidating. He actually got to look at the film of her speaking very loudly and certainly intimidating. The reason he talked about the third girl was because after being there for a year and a half or two, she quit because this sheriff intimidated her. In her eyes she had done nothing wrong and she didn't feel as though she should be treated in that manner. Mr. Hill said he talked to Mr. Rodriguez about it and he knew he was politically correct, although Anna says he is a good man and he thought they built a good relationship. He asked him what he should do and Mr. Rodriguez said he could call Lt. Shouse. His feeling was that the way this lady spoke to these ladies was uncalled for. You don't speak to anybody that way. He has had over 46 employees at one time and you don't talk to people the way he heard this particular officer talking to her. Mr. Hill said that once this lady quit because she felt intimidated, Anna didn't have any where to go. She went and talked to Claudia at the office over here and Claudia indicated that there's a new code that they have to have a California license, as well as a Palm Desert license. Now she had one lady who has had a permit in Palm Desert for two or three years. She called this lady to come in and help her because she needed help, although truthfully she wasn't making enough money to employ two people, so he wasn't too sure about that. This was the lady who committed the issue and he didn't think there was any dispute. He personally didn't know if she did or didn't, but if the officer said she did, she did it. His point here, and he hoped there was some compassion in the City Council, but she isn't a bad lady and he knew she wouldn't do this sort of thing. And he knew the minute that phone call came to him what it was and who it was and he knew it wasn't this lady. One last thing he wanted to bring up was something he read here, and this wasn't something he was really familiar with, but there is one item and it is item number three, Municipal Code Section 5.87.1006 and it says that, "It is unlawful for any person owning, operating, or managing a massage establishment knowingly to cause, allow, or permit in or about such an establishment any agent, employee or any other person under his control or supervision to permit acts in violation of Chapter 5.90, including, specifically, Section 5.90.140..." What he got out of that was knowingly. Had she known this girl was up to something, she wouldn't have existed; she wouldn't have been there. He knew Anna that well and he thought there was a track record there with a previous employee. He asked that they take that into consideration. She is very aware of the severity of this, but he was here to tell 5 MINUTES � ,, PALM DESERT PLANNING COMMISSION MARCH 16 2010 them that she is an honest person and she doesn't perform that kind of service for anybody. Chair Limont thanked him. She asked if anyone else would like to speak in FAVOR of or in OPPOSITION to the proposed revocation. There was no one. The public hearing was closed and Chair Limont asked for Commission comments. Commissioner DeLuna noted that there was a two-year summary of activities list from the Police Department. One resulted in an arrest for prostitution. On two other occasions there were solicitations for sex; on two different occasions there were daily logs that were not brought up to speed. So there had been five different violations. She said that it was a hard decision to make, but she would move for revocation of the CUP. Action: It was moved by Commissioner DeLuna, seconded by Commissioner Campbell, approving the findings and recommendation as presented by staff to revoke CUP 08-108. Motion carried 5-0. It was moved by Commissioner DeLuna, seconded by Commissioner Campbell, adopting Planning Commission Resolution No. 2522, revoking CUP 08-108. Motion carried 5-0. C. Case No. ZOA 10-41 — CITY OF PALM DESERT, Applicant Request for approval of a recommendation to the City Council of an amendment to the Hillside Planned Residential (HPR) zone relating to definitions / development of "rock outcroppings," and amendments to the HPR Zone Approved Ridgeline Map. Sr. Management Analyst Ryan Stendell reviewed the staff report and recommended that the Planning Commission approve the resolution recommending approval of the Zoning Ordinance Amendment to the City CounciL Commissioner DeLuna noted that a map was provided with some proposed changes, some of which no longer include certain areas from the ridgeline or outcropping definition. She asked who prepared that map and if there was a study, engineers hired, or if it was done by City staff. Mr. Stendell said that he and the GIS Department made the determination. It was mostly visual. He simply scouted the area and used topography data that they have available to the City. He could run through a few of his 6 .`+ � r4� ,� BEST BEST � KRIEGER� Arroxnreti�s ,�r[.�w� �RVWE �949)263 Z600 SACHAMENTO 74-760 Highway 111, Suite 200 (9i6)325 a000 — Ind�an Welis,Califomia 92210 LOS ANGELES SAN DIEGU �z�:��s,�e,cx� (7so)5sa-2s�i _ (760)340-6698 Fax (6t9)525 1300 ONTAHIO BBKlaw.com WAINUT CREEK (909�989 8584 (925)9�7 3300 RIVERSIUE (951)686 1450 Stacey P.Shalhoub (760j 568-2611 Stacey.Shalhoub0bbklaw.com File No. 72500.00762 March 2, 2010 BY CER"1'IFIED MAIL BY CERTIFiED MAIL RETURN RECEIPT REQUESTED RETURN RECEIPT REQUESTED Chun Hua Ueng Todd Hill 45-775 Ocotillo Drive, #12 20 Mission Court Palm Desert, CA 92260 Rancho Mirage, CA 92270 Re: NOTICE OF REVOCATION OF MASSAGE ESTABLISHMENT PERMIT FOR HEALTH SYSTEM; PERMIT NO.: 07-45634 Dear Ms. Deng and Mr. Hill: On behalf of the Palm Desert City Manager and the Permit Administrator, please be advised that effective immediately, the Massage Establishment Permit for Health System, known commercially and referred to hereinafter as "Anna's Health System", is hereby revoked for noncompliance with the Palm Desert Municipal Code ("the Code" or "P.D.M.C."), due to the recent anest of an employee at the establishment for soliciting prostitution. Findin�s and Basis for Revocation. On February 26, 2010, during the course of an undercover operation by the Palm DeseR Special Enforcement Team, an officer was solicited for illicit sexual acts by a massage therapist at Anna's Health System. The employee was arrested for prostitution. The foregoing is grounds for revocation of the Massage Establishment Permit for Anna's [-Iealth System, as the premises for which the establishment permit was issued was being operated in an illegal or disorderly manner, by virtue of the arrest, in violation of P.D.M.C. §5.87.180(B)(4). Proc�ss for Written Appeal. You may appeal this revocation by tiling a written appeal with the City Clerk within ten (10) days of this Notice. "Chcreafter, the City Cuuncil will set a time a place for a public hearing Cor your appeal or may refer the matter to a hearing ofticer. [f the City Council chooses, it may decide the matter based upon the recommendations and tindings of the hearing ot�ticer. 'The decisi�n of the City Council is tinal. � BEST BEST & KRIEGER ATTORNEYS A"P tAW Ms. Deng and Mr. I�ill March 2, 2010 Page 2 Enclosed here�vith for your further reference are the applicable P.D.M.C. Sections includcd in C�haptcr 5.87. Sincerely, Stacey P. Shalhoub for BEST BEST& KRIEGER LLP City Attorneys for the CITY OF PALM DESERT sps Enclosure cc: John Wolmuth Paul Gibson Rob Bishop ' David J. Erwin, Esq. RML171SSHALHOU8�314(k10.1 PALM DESERT POLICE DEPARTMENT Served by the Riverside County Sheriffs Department - Stanley Sniff, Sheriff- Coroner TO: John Wohlmuth, City Manager DATE: March 2, 2010 Lauri Aylaian, Director of Community Development FROM: Lieutenant Andrew Shouse SUBJECT: Anna's Health System—Summary of Activity SUMMARY OF ACTIVITY The following is a summary of reports of alleged prostitution activity occurring at Anna's Health System since December 2008: • December 2008—The City of Palm Desert issued a massage establishment permit for Anna's Health System under its current ownership. • December 2008 — A Palm Desert City Council member reported to the Police Department that a citizen had been solicited at Anna's Health System. The citizen indicated that he had gone to the location for a massage and the therapist had solicited an illegal sexual act. The citizen declined the solicitation and reported the incident to the Council member. • August 2009 — Members of the Palm Desert Special Enforcement Team conducted an undercover operation at Anna's Health System. During the operation, the undercover officer was not solicited for illicit acts (File #T092390162). • October 2009 —Members of the Palm Desert Special Enfarcement Team assisted Code Enforcement with a monthly compliance check at various massage establishments. Anna's Health System was found to be out of compliance with regard to their daily log. • November 2009 — Members of the Palm Desert Special Enforcement team conducted an undercover operation at Anna's Health System involving two separate officers. During the first officer's massage the undercover officer's genitals were fondled by the massage therapist. Negotiations for additional sexual activity were initiated. The therapist left the room for a short time, but upon returning declined any further negotiations. A second undercover officer was sent into the location, but no inappropriate behavior or solicitation occurred. It should be noted that this operation was being conducted at the same time as arrests were being made at a massage establishment in the City of La Quinta. (File #T093140136). 1 • November 2009 — Members of the Palm Desert Special Enforcement Team conducted an undercover operation at Anna's Health System. During the operation, the undercover officer was not solicited for illicit acts. (File #T093220082). • January 2010 — Members of the Palm Desert Special Enforcement Team conducted an undercover operation at Anna's Health System. During the operation, the undercover officer was not touched inappropriately by his therapist and no solicitation occurred. (File#T100050127). • February 2010—Members of the Palm Desert Special Enforcement Team assisted Code Enforcement with a monthly compliance check at various massage establishments. Anna's Health System was found to be out of compliance with regard to their daily log. • February 2010 — Members of the Palm Desert Special Enforcement Team conducted an undercover operation at Anna's Health System. During the operation, the undercover officer was solicited for illicit sexual acts in the middle of his massage and an arrest was made for prostitution(File#T100570029). 2 ��C::I'�EL� CITY C1F PALM DESERT, CALIR�'Irti��a �, ��_��;� 4�- ��Mo�� , �� f.�-�-_---�� ` A#'PLICATIOtV T'� APR��.�� : �s r� '�� ;�, '� �J E•• t�� , "� . DECiSION OF THE � IGNN �QtM Wt.iSi�� _�_. _ .. _ _____ ._ '�• (Narnr.o!DeiCrmininc�Body) Case No. �,� O ;�.��__._ Oate of Decision: �Q��__��_��+� N�mE of A ellant�lQ�� hr� Phone f�{� t�_ _ ...... . ... �tn�-��7'��-?�__ Address ��-5�� _�..,,a _ �_—__ _ _ _ ._ __ ____ Descriptior� of Application ar Matter Considered:�►Pf�i,t,Q�S! -�,p�'_.�� --��-- ,�-�-- C'e`Co,vS r DP�ec� H��o_c`_�2�2��r �-c�—bP ��l,p ��,.�,-,�_ � ��r�T---��1�eeS; . _ _-___ m__. _.. �.� <� � Reason fqr Appeal (attach add+tione!sheets if necessary): � �:�` � r- .�,-� ..._. —. _—_ _. _..._._._.._. �"' -r C� �.. ..._.�� XXI'"_YS�,�� {`� _ �T�C"? -- � -r�� __ ��.� _ __._ __.� r�.. . �'ct ,�'' �� __._.—.�_.._.___ _ ._.._._.__. � ttl __ _.._.._..._._. _T �,.._ __ '�Z-�L� Q n CJ"i� COPY70� ;�;__..... _�, �,�,,,;__.r_ ___.___ .__�...__ .__._—. _..... _ ,, --�-�, _ 1 _,j'�l/�./1l !�L�� J`��r N'r .u��!�' DATE "' ""' (Signature of Appellant) FOR OFFfCIAL USE ONLY Date Appeal Filed:��,,��._r_�'(�__ � Fee Received: c��--_�.�?.�� T___ _ 7reasurer's Rece�pt No. � Received by: ^_ Date of Considerat�on by City Council or City Officiai: �"'� , Action Taken: �)��f� _._. _.._ _._. __..� _.._� �._...... ..______ _ .. Racheiie D. Klassen, City Cier� �J ��u �l�'�L� C; f `!`I ;��`,,g�.�.�{ ;�;�'�; �;,��=i�� 85 A'�f S�4 S t,f L J 4�,„�'M1.��. L.�.d�;A �� aa�' ;�� s�i� ��= J� RE: Case Cup 08-108, With total regard for the City of Palm Desert and the laws of both the city and the State of Califomia, we respectfuliy wish to appeal the revocation of the massage establlshment permit for Health System; permit no.: 07-45634. This business was opened by Ms. Chun Hua Oeng for the so(e reason as to NO7 be associated with the unlawful activities of some massage businesses in the area. Ms. Deng felt with her own small business she could build her own clientel of good, honest customers and therefore contral her own destiny in the bus€ness worid. In building this business Ms. Deng has been threatend, intlmidated and possibly stalked by unhappy customers who did not get what they wanted. She has retumed money to a handful of customers who threatend report he business (FalSely) because they did not recleve what they desired.Ms. Deng believed that eventually the bad cusfomers would stop comine to her � business. And, for the mos�t part, that has happened, with fewer requests for unlawfui services. Ms. Deng stood strong against some very determined custorr�ers. All the time believin� she would build that honest clientel. Which she feels has happended_ Ms. Deng has advertised €n two tetephone books, where she feels honest people look for honest servic�s. 5he has never advertised on the likes of a Cralg's List, which is basicelly a haven for sexual services. She wants no part of that type of customer. It Is true that Ms. Deng's business has yet to reach the volume of buslness she had anticipated. She is able to pay her manthly bilfs, however, each month 1s tight and she has not been able to put away much in savings. llnlike the ocher type of businesses who offer sex and pfobably have hundreds of customers, she is content to stay small and honest. Ms. Deng lives her life with high morals. she attends Temple regularly and has atways set positive examples for her daughter. Her life is slmple with no dreams of wealth� only happiness. The results of the February 2010 arrest of an employee at Ms. Deng's business has left her extrernely humiliated and made her real€ze she can never fully trust anyone who would work for her. lt is her wish that the City of Palm Desert could find justice in allowing her perrr�it to remain active, with Ms. Deng as the only person perrreitted to work at Nealth System throu�h the course of her remalninp lease for this oftice space. By dofng this would always be sure that no unlawtul activiUes cauld ever occur, as wel( as allowing her to fulfkll her lease agreement and avoid any further fegal issues. Ms. Deng has no desire to contlnue in this business af[er her lease h�s expired, as she feels this is not the path she is destined to iollow. In closing. Ms. Den� wants the City of Palm Desert to know that she has never hed any knowledge of any unlawful activities at Health System and would never tolorat,e anything like chat. She feels very bitter and disgusted wlth the principal involved with this. At this point Ms, Deng now unly wishes to control her own destiny. Res actfuNy , ; 4 �y ��f �� I� i �L.,�� :..)S �:,,I._ t"'1§A�..P"� �.�C.5�.,� � � i.;��,. L�E� €�� a �� CONFIDENTIAL Over the past six months or so, the City of Palm Desert and the local Sheriff's Dept. have recieved a handft.rl of letters informing you of the Prostitution business operating out of the Parkview Spa and a nearby house on Acacia Dr, Yau have since shut the operation down, Thank You... The purpose of these letters was to help clean the city of this type of activity. Ms. Deng was inforrned of this by several of her customers who also disapproved of the actlons. These letters were mailed to you wKhout Ms. �eng's knowledge, as she is fearful of retelietiOn. It is these types of businesses, she feels, that give Chinese people a negative image and that because of her Chinese heritage she is being branded a prostitute like the others. please know this is far from the truth. I am happily married to a Chinese women who is honest, thoughtful and hard working. 1 am very praud of her. We have a 15 year o1d daughter attending Palm Desert Nigh School. My w€fe's friendship with Ms. Deng through the years has taught me that Ms. Deng is truly a honest person who does not know the llfestyle of these other bustnesses. As with all nationafities. ther are many good people. Please understand my point, Ms. Deng is very much against the actfons of these other businesses. She Is not a dishonest rnassuse because she is Chinese. Pfease don`t stereo-type her as such. I welcome your questions on this matter (f you wish. RespectFully Todd Hill 76Q-404-7323