ITEM 7-C

City Council Meeting 6-2-92              Santa Monica, California

                          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:

     Date of             Code
     Incident  Employee  Violations           Evidence___________

     4/19/90   Nadeau    intentional contact  testimony of under-
                         with customer's      cover officer and
                         genitals; customer   monitoring officer
                         naked; masseuse
                         exposed breasts

     5/19/90   Kwon      intentional contact  undercover officer,
                         with customer's      monitoring officer
                         genitals; customer   testimony; condom;
                         naked; masseuse      audiotape
                         exposed breasts

     6/20/90   An        sexual intercourse   eyewitness accounts
                         with customer;       of two officers;
                         customer naked;      condom
                         crotchless garment

     The appellants put on no evidence to  contradict  the  facts
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
which  was  rebutted  by  the  appellants.   The  appeals must be
denied.

PREPARED BY:  Robert M. Myers, City Attorney
              Adam Radinsky, Deputy City Attorney