HomeMy WebLinkAboutRes 2010-37 - CUP 08-108 - Anna's Health Systm 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.
SUBMITTED BY: Kevin Swartz
Assistant Planner
APPLICANTS: Chun Hua Deng
45-775 Ocotillo Drive, #12
Palm Desert, CA 92260
Todd Hill
20 Mission Court
Rancho Mirage, CA 92270
PROPERTY Shelter Bay Retail Group
OWNER: 32-605 Temecula Parkway, Suite #204
Temecula, CA 92592
CASE NO: CUP 08-108
DATE: May 27, 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
Report and Recommendation of Hearing Officer dated 11 May 2010
Recommendation
Waive further reading and adopt Resolution Nozoio-3� approving the
findings and recommendation of the Hearing Officer to revoke existing
Anna's Health System
CUP 08-108
May 27, 2010
Page 2 of 4
CUP 08-108 for Anna's Health System massage establishment and that the
request for modification of the CUP authorizing one employee be denied due
to violations of the Palm Desert Municipal Code.
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.
Hearinq Officer Recommendation
On May 10, 2010,an appeal by the applicant of the Planning Commission's decision to
revoke CUP 08-108 was heard and reviewed by a Hearing Officer. On May 11, 2010,
the Hearing Officer recommended that the CUP for Anna's Health System massage
establishment be permanently revoked and that the request for a modification of the
CUP authorizing one employee be denied.
Executive Summary
Approval of staff's recommendation to uphold the Hearing Officer's decision would
permanently revoke CUP 08-108, and that the request for a modification of the CUP
authorizing one employee would be denied due to violations of the Palm Desert
Municipal Code.
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).
G:�Planning\Kevin Swurtz\Word\Health Systems\CC Staff Report 5-27-IO Final.doc
Anna's Health System
CUP 08-108
May 27, 2010
Page 3 of 4
On March 16, 2010, the Planning Commission held a public hearing and revoked CUP
08-108 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.
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. At the April 22, 2010 City Council meeting, the Council
referred the appeal to a Hearing Officer.
On May 10, 2010, the Hearing Officer heard the appeal for CUP 08-108. During the
hearing the applicant 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. The Hearing Officer recommends that the CUP for
Anna's Health System massage establishment be permanently revoked and that the
request for a modification of the CUP authorizing one employee be denied.
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 from December 2008 to February 2010. 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 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, 201�,by the Business Administrator. The applicant did not appeal the
revocation of the Massage Estat�lishment Permit.
Conclusion
Anna's Health System has received miscellaneous code violations cited above per the
Palm Desert Police and Code Enforcement Departments. An employee at the
establishment was arrested for soliciting prostitution. Ultimately it is the business owner
G:�Planning\Kevin Swartz\Word\Health Systems\CC Staff Report 5-27-10 Final.doc
Anna's Health System
CUP 08-108
May 27, 2010
Page4of4
who is responsible for retaining and supervising employees such that business is
conducted in a lawful manner. At the April 22, 2010,City Council meeting, the Council
referred the appeal to a Hearing Officer. On May 11, 2010, the Hearing Officer found
that Anna's Health System is in substantial violation of the conditions of approval of the
CUP. Those violations include not having a valid Massage Establishment Permit and
violations of the Palm Desert Municipal Code operating in a disorderly and unlawful
manner. The Hearing Officer recommended that the CUP be permanently revoked and
that the request for a modification of the CUP authorizing one employee be denied.
Fiscal Analvsis
The fiscal impact to the City associated with revocation of the Conditional Use Permit is
negligible.
Submitted By: Department Head:
G
Kevin Swartz Lauri Aylaian
Assistant Planner Director, Community Development
rov ��
�� � ,� . CITY COUNCILA ON
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t�i� APPROVED DEN1F,D
o n M. Wohlmuth �C��D OTHER
ty Manager MEE D TE " �- O/G
AYES:
NOES:
ABSENI's
ABSTAIN:
VERIFIED BYa
Origioal on File with City k's Office
G:�Pl:mning\Kevin Sw;utz\Word\Health Systems\CC Staff Repor[5-27-10 Final.doc
RESOLUTION NO. 2010-37
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, UPHOLDING THE PLANNING COMMISSION'S DECISION TO
REVOKE AN EXISTING CONDITIONAL USE PERMIT FOR ANNA'S HEALTH
SYSTEM, A MASSAGE THERAPY ESTABLISHMENT LOCATED AT 72-655
HIGHWAY 111, SUITE B-7.
CASE NO. CUP 08-108
WHEREAS, on May 27, 2010, the City Council at the City of Palm Desert, CA did
hold a duly noticed public hearing to consider the revocation of a Conditional Use Permit
for violation of the Palm Desert Municipal Code Sections 5.90.150 and 25.72.130 and
California State law; and
WHEREAS, on May 10, 2010, an appeal by the applicant for revocation of
Conditional Use Permit 08-108 was heard and reviewed by a Hearing Officer, and May 11,
2010, the Hearing Officer recommended that Conditional Use Permit 08-108 for Anna's
Health System be permanently revoked and that the request for a modification of the
Conditional Use Permit authorizing one employee be denied.
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, 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 City Council 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:
RESOLUTION NO. 2010-37
It is unlawful for any person owning, operating, or managing a massage
establishment knowingly to cause, allow, or permit in or about such massage
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 (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. 2010-37
11. A business owner is ultimately the one responsible for ensuring that their
business be conducted in a lawful manner, and since the owner of Anna's
Health System has been unable to do so previously. There is no evidence to
demonstrate that she would be able to do so as a sole practitioner.
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. The request for modification of Conditional Use Permit 08-108 is herby
denied and the Conditional Use Permit is herby revoked.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Palm Desert
City Council held on 27th day of May, 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
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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.
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SAID public hearing will be held on Thursday, May 27, 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 qf 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
May 16, 2010 Palm Desert City Council
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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 opened 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
staff. 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 o�ened 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 „�
PALM DESERT PLANNING COMMISSION MARCH 16 n�n
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 ^� �
ALM DESERT PLANNING GOMMISSION MARCH 16
who was a little aggressive. She seemed to be a little intimidating.
He actually got to look at the film of her speaking very foudly 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 particufar 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 ficense. 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 q��
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
.�. � �
BEST BEST � KRIEGER�
A7TORNEl'S A"I'Lr1W�
IHVINE SACFL4MENT0
I949)2�z� 74-760 Highway 111, Suite 200 (9i6)325 a000
— Ind�an Welis,Californla 92210 SAN DIEGU
LOS ANGELES
(213)617 etW 060)568-2611
_ (760)340-6698 Fax (sig)525 �300
ONiAHlO BBKIBw.com WAWUT CREEK
(909)989-8584 (925)977 3300
RIVERSIDE
(951�686-1450
Stacey P.Shalhoub
(760)568-2611
Stacey.Shalhoub0bbk law.com
File No. 72500.00762
March 2, 2010
BY CER"I'IFIEU MAIL BY CERTIFiED MAIL
RETURN RECEIPT REQUESTED RETURN RECEIPT REQUESTED
Chun Hua Deng 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 Hea(th 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 arrest of an employee at the establishment for soliciting prostitution.
Findings and Basis for Revocation.
Un February 26, 2010, during the course of an undercover operation by the Palm Desert
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 Nealth 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).
Process for VVritten Appeal.
You may appeal this revocation by tiling a written appeal with the City Clerk within ten
(10) days �f this Notice. "I'hcreafter, the City Cuuncii will set a time a place for a public hearing
for your appeal or may refer the matter to a hearing officer. If the City Council chooses, it may
decide the matter based upon the recommendations and tindings of the hearing ofticer. The
decisiun of the City Cuunci] is tinal.
. .- � _�
• BEST BEST 8� KRIEGER
ATTORNEYS A"I'IAW
Ms. Deng and Mr. Iiill
March 2, 2010
Page 2
Enclosed herewith for your further reference are the applicable P.D.M.C. Sections
includcd in C`hapter 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.
RML111SSHALHOUBl314(�t0.I
�� :�
PALM DESERT POLICE
DEPARTMENT
Sen�ed by the Riversrde County Sheriffs Depar•tment
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 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.
• 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 anests 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 Systerri. 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
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Racheile D. Klassen, City Clerk
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7010 ��"�,Q 25 �?�� II� 55
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 California, we respecifully wish to appeal the revocation of the massage establishment
permit for Health System; permit no.: 07-45634.
This business was opened by Ms. Chun Hua Deng for the sole reason as to NOT 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 control her own destiny in the business world.
In building this business Ms. Deng has been threatend, intimidated and possibly stalked by
unhappy customers who did not get what they wanted. She has returned money to a handful
of customers who threatend report he business (Falsely) because they did not recieve what
they desired.Ms. Deng believed that eventually the bad customers would stop coming to her
business. And, for the most part, that has happened, with fewer requests for unlawful
services.
Ms. Deng stood strong against some very determined customers. All the time believing she
would build that honest clientel. Which she feels has happended.
Ms. Deng has advertised in two telephone books, where she feels honest people look for
honest services. She has never advertised on the likes of a Craig's List, which is basically
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 business she had
anticipated. She is able to pay her monthly bills, however, each month is tight and she has
not been able to put away much in savings. Unlike the other type of businesses who offer
sex and probably 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 always set
positive examples for her daughter. Her life is simple 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 extremely humiliated and made her realize she can never fully trust anyone who would
work for her.
It is her wish that the City of Palm Desert could find justice in allowing her permit to
remain active, with Ms. Deng as the only person permitted to work at Health System through
the course of her remaining lease for this office space. By doing this would always be sure
that no unlawful activities could ever occur, as well as allowing her to fulfill her lease
agreement and avoid any further legal issues.
Ms. Deng has no desire to continue in this business after her lease has expired, as she
feels this is not the path she is destined to follow.
In closing, Ms. Deng wants the City of Palm Desert to know that she has never had any
knowledge of any unlawful activities at Health System and would never tolorate anything like
that. She feels very bitter and disgusted with the principal involved with this. At this point
Ms. Deng now only wishes to control her own destiny.
Res ectfully
' _. �
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20!0 �°.R ?5 �t�' f 1= 5S
CONFIDENTIAL
Over the past six months or so, the City of Palm Desert and the local Sheriff's Dept.
have recieved a handful of letters informing you of the Prostitution business operating out of
the Parkview Spa and a nearby house on Acacia Dr.
You 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 informed of this by several of her customers who also disapproved of the
actions.
These letters were mailed to you without Ms. Deng's knowledge, as she is fearful of
retaliation.
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. I am
very proud of her. We have a 15 year old daughter attending Palm Desert High School. My
wife's friendship with Ms. Deng through the years has taught me that Ms. Deng is truly a
honest person who does not know the lifestyle of these other businesses. As with all
nationalities, ther are many good people.
Please understand my point, Ms. Deng is very much against the actians of these other
businesses. She is not a dishonest massuse because she is Chinese. Please don't
stereo-type her as such.
I welcome your questions on this matter if you wish.
Respectfully
�
Todd Hill
760-404-7323
05/1312010 14:37 7605680744 PATTERS�N SINDONI PAGE 02105
REPO�tT AND RECOI+�NDATION
pF HEARING OFFICER
May 11, 2010
5TAT '"NT OF Ti3� CAS�:
This �s �n appeal ?�y Ms . Chun Hua D�ng, ow,ner o� Hea��h
Systez� (�lterna�ti.vel�r "Anna' s Hea��h Systeml r a massage thex�apy
establ�shmen't Yocat�d in the Palms to Pi�es West Shopping Mal.l at
72-656 H,ighway 111, Sui�te H-7, from the P�anning Co�issio,r,z' s
d,ecision to revoke her Condit�.o,nal Use Perntit (CUP OS-108) az�d
from her �ppea7. to tYi� City Counci� far a modification of that
CUt� to a11ow k�er to con�tin.ue opex�tian as a sol� operator without
any �m�loyees. The Ci•Cy Counc�l r�:f�rred the ma�ter ta this
h,e�rinq afficer to conduct an evidentiary heax�ing and r�po�t back
with find�.ngs and. r�cammenciations.
PROCEDUI�i1�1I, Z S SUES:
1. At �Y�.e time of the hea�ing it was deterrnined tha�
notic�s af the hearing had n,ot been provided to residents living
wi�hin 3c�0 fe�'t of �.he premises. Both sides agreed to wa�v'E such
not:��e.
2 . Priar 4o thP heariz�g Z was provided with docuzn�nts f.r.am
�he Ci�y fil.es. R list o� a11 that mat�rial a.s attached to �his
�eport and iden,tified as Exh,a,bit A.
3. The eviden,tiary h.earing was he].d at 2: Qd prn on May J.Q,
2010 at nalm Desert C�ty Ha].�. The hearing w�s attended by �he
fol].awing individu,�ls :
Depu�y I�entle
Lauri �ly�aian - nir�c�or of Cammunity DevElopment
Kevin Swartz - l�ssista,x�t Planner
Pedro Rocl.rigu�z - S�nior Cod� EnforCeznent �fif�cer
H�rt Poncier - Co--Complia,n.ce Man�,ger
Tc�dd Hill - Cn-���ppellan,t .r�presenting himself �nd Chun H.ua
D�:n.c�
Star_�y Shalhoub - Deput� Ci�,y littorn�y
'I`.��: he2rirl�;� ta�tPc. ;�.p�!�_�.L�nah�ly 45 m,i_nut�s .
05113l2010 14:37 7605680744 PATTERSON SINDONI PAGE 03l05
4 , chun H,a.a Deng el�cted nat �to appear �.nd it was the
opinian af he� r�p�esenta�.ive, Mr. . Hi3.l, thati she wo�,ld not
c:ontri�ute signifi�antly �o the p�aceedings.
FAC�S �RESENTED TO '!'FiE HE.A.R�NG �FFICER:
A. �ir . H�,11 repr�sentecl that he is nat an ow�er o� �.he
massage business . �,i_.� name �ppears on th,e bui�ding lease and an
th� notiCe of �ppe�1 be�au,se hi.s wi�e is a frie�ld oE Chun Hu�
Dcng and, since Chun xua Deng s�eaks �.�rnited Eng�ish, Mr. H�11
helps her with business matters• At tk�e hearing he was allowed
ta represen� thn interests of Chuz� Hua Deng.
B. 11 Conda.tional. Use Permit to ope.rate a massage
est�blishment (CUP 08-108) was granted to Chun I�ua Deng on April
1, 2008 sul�j�ct to the standard �u.�es and cond��ions p�r the Cit�
Ordinanc�. On� of those cand�.�idns was �tY�at the l�usiness owner
possess a v�1id Massage Fstabla.shm�nt Perinit whick�, was
subseauently gr�nted to Y�er.
C. The bue�.ness w�� irzspec�ed frequ,ently durinq the first
two years of ope.ratic�n. It was foun,d to be out of comp].�anc� on
��ver_al occasi�ns with regard to th� ma�n��nance of the daiJ�y
log.
D. 2n December 2006 a �itizen repor�ted to �he City that he
had gon.e t� �.he business far a massaqe and th� the�apist had
sol,iciL�d an illegal sex act. Sn F'ebruary 2010 the Palm Deser�
Special Enfarcement Tea,m conduct�d an undercaver opez�ation by
sending D�puty Jacl�son to the lausin.ess far. a massage. Wk�ile
gettinq a m�ssag� D�puty J�cksan was salicited for arz illicit
sexu�l act and �.he massage therapa.st (an employee of Chun Hua
Deng, identi�ied �s L�. Li) was arrested and charged with
prosti'tution.
E. The City retrolced the Massage Es'tablishme�t Permi� by
yetter frazn the C�.ty Attarney da�ed, March �, 2010. �'h�+ basi.s for
L-hat rev'ocation was the nonCompliance with th� P�lm 1]esert
Municip�l Code - na�m.ely the arr�st o� an empJ.oyeE a�l: the
est.ab]_ishment ,f.or sol.a.eiting p�'Qstitution. Z'he �et�er iz�dic�t�d
rha�L an, app�n7. af the rPvoca�tioz� could be filed within ten. days
but no appeal was f.�]_�d. A.t the time of the hearing tbat
r��roca.tion h�cl hecon�� f�,n�l and the businesa does not pass�s� a
ZT�=�id Mass�ge �sta,bli.shmen.t .Permit.
�'�.� E�RTI�S' POSI�IONS:
Thc Ci'�:v' ^ C'ositiot�: Thc� City cl�im,s that th� Conditia.nal
-7s�� �e:_m=_+� �11ou.__r_l br ,r�vol�ed b�ca�ise th.e ov�rn�,r, has violatet�
�511312010 14:37 7605680744 PATTERSON SINDONI PAGE 04/05
severat essen�ial �o��da_tion�: �he Massaqe �s�ablishmen,t Pe.r.mit
lnas been revoked and one o� the clear conditiona fo,r operating a.
mass�.ge �stab].ishm,ent. is th.at the busin,ess passess a. va�.id
pe.r,mi�t. The facts abov� also in,dicate 'tk�at the massa,ge
estab�ishzn.ent busin�ss piemises hav� been ap��'at�d in a
disc�.rderly and unlawful mann,er, in vivlation of ]�DMC 5. 87 . 18C�
tB) (4) and PDMC 5. 8'7 . 100 and 5. 90.150 (�) and (C} .
pz,nPl 1 �nt� s Pos�.,tian: Mr. Ha.�.l acknowl�dged �hat the
emplpyee h�d violated the �ode and committea acLs wh�.��l �;uu1a
r�asonabty be in�Cerpreted as �h.e solicita�,ion of prostitution.
Hp claim�ed, howe'ver, that M�. Ghun Hua Qeng is a gdod p��'son �nd
has tri�d to op��'a�,e her business ta avoid any sexua�.
soJ.ici�a.tions . He cl,aims tha�t she is the victim of her ezn,ployee .
who solicited an ac� o� prcasti�l�utio� without k�er knowledge oz
Cbp.8�i1�. She is askin.g �he City to .mQdify her permit such that
shc would b� 'the or�ly massage ther�pist Yn the busi�ess which,
�he f.�els, waul.ci elinlinate an.y .such problems in th� future. M�.
Hill stated tha�t Ms. Chun Hua Deng was awa�e th�a't tl�e City was
investigating the aperations of oth�r m,assage establishmen�s.
�IN7ai�TGS 0�' FAC�:
Z find �s `allow3:
1. Hea],th Systcros Massag� establ.tshment is �.n substantial
vialat�on o� thP conclitions of �he Gondztional Use F�rm�.t. T.Y�ose
v�ola�Li,ons include nat havi�,g a valid Massage Establishment
Permit and th,ase Pnt�C v�olatians (ap�rat,ing in a disarde�ly and
u.t�.law�ul manner) m,enti.oned at�ov�.
2 . 'The subs�ance o.f. those violations is a.f su�fa.cient
magnitude as to justify the �evocation of the C�nditiona� Us�
Permi't.
�,2ECOD+.�N+lE�1DATZ� TO 3'�!E CZ�Y COUNCIL:
xt is the recvmmend��.ion o� �he Fl�ari.r�g Of�icsr t�hat the
Condition�l Use Pe�'mi� '�or Anna' s Hea,�th Syst�ms massage
�stablish�n.ent be perrnanentlX revoked and �hat the request for a
modi.f_ica�ian of the Massaqe Establish.rnent t�ermit (authorixing on�
empl.oye�) be d�nyed.
P,f PECTFUTdI��' SU�MITT�D,
� �t� �
f�'"' y� �'�.•'f�' �`;�si�,r�' ''�'�.�`.
J�!il.I ^'�'a• / / ,✓
�JE�ERY S. R. P7lTT�RSON
HFARING OF.FICER
05113/2010 14:37 760568�744 PATTERSON SINDONI PAGE 05f05
�]ncurn�nts a�nd�xhibit� revier+ved and co�.sidered by��ar6ng Offcer,JEFFERY S.R•
��,TTERSOI�i,a� t�ae�atte�vf�'H� CgTY OF PA��M DES;ERT V.HE.A,LTH SXSTE,M
1. Appli�catio�a to Appe�l;
2. Stafi'Reporl;ciate Apzi.l 22.20�0;
3. A cop�of tk�e l�tteir from Todd Hill to the Cxty of Pal.m Dese�t dated Marela 25,201�;
4. A,copy of�uxott�ez� letter frbm Tadd HiII tv the Ci.ty a�1�aJ.m Desert datEd March 25,2010;
5. Natice of Revocation d�.tc March 2, z010;
C>. Paim 17ese�t Police Depaxtment Report dated March 2,201�;
'7. Decl�ration o:ELauri.Aylaian�(u.nd.ated and unsigned};
8. Declaration of�eputy Jackson (undated an�l ua�signed);
9. Letter frozz� St�cy Shalhoub, Esq.to Ms.T.)ez�g anc� 1�r. Hill dated Marc.h 2, 201A;
10. Conclitxonal Use Permit,Applicata�n,dated March 10,2008