Appeals Hearing Board Meeting

APPEALS HEARING BOARD MEETING MINUTES CITY OF MONTEREY Friday, October 4, 2019 10:00 AM MONTEREY, CALIFORNIA Board members Present: Stocker, Hawkins, Millich Absent: None Board Staff Assistant City Attorney Karin Salameh, Deputy City Attorney Ryan Donlon, Present: and Recording Secretary Alicia Salas Other Staff Chief David Hober, Detective Michael Garcia, Officer Sabrina Perez, Present: Officer Kris Richardson, Police Services Assistant Angie Madruga, CALL TO ORDER Chair Stocker call the meeting order at 10:07 CONSENT ITEMS Approval of Minutes 1. February 26, 2019 On a motion made by Board member Millich, seconded by Board member Hawkins, and carried by the following vote, the Appeals Hearing Board approved the Minutes of February 26, 2019. AYES: 3 COMMISSIONERS: Stocker, Hawkins, Millich NOES: 0 COMMISSIONERS: None ABSENT: 0 COMMISSIONERS: None ABSTAIN: 0 COMMISSIONERS: None RECUSED: 0 COMMISSIONERS: None PUBLIC COMMENTS None. PUBLIC HEARING 2. Appeal of Police Department's Denial of Application for Massage Establishment Permit - Appellant Xiao Yan Zhang Runnalls, dba Bay Spa, 437 Figueroa Street, Suite 100 (Not a Project Under CEQA Guidelines 15061 and 15378 and Exempt Under Section 15321) Deputy City Attorney Ryan Donlon gave his presentation and took questions from the board. Appellant Greg Runnalls, husband of Xiao Yan Zhang Runnalls, will take questions, as English is Ms. Runnalls second language. He gave his opening statement and took questions from the board. Mr. Donlon called Police Services Assistant Angie Madruga. Ms. Madruga was sworn in by Assistant City Attorney, Karin Salameh. Mr. Donlon asked Ms. Madruga to explain the process once an application has been submitted, she said she makes the appointment with the Appeals Hearing Board October 4, 2019 Minutes applicant; she compiles the application and then askes a detective to run an internet search of the business for any illegal advertisement. Mr. Donlon asked Ms. Madruga when the application was submitted, she said that the application was submitted two weeks after the old permit had expired. Mr. Donlon asked Ms. Madruga to identify the documents in the packet; Ms. Madruga identified the documents as the California Massage Therapy Council (CMTC) cards and certificates of anyone who can perform a massage at this establishment. Mr. Donlon asked Ms. Madruga if the copy of the three certificates were for the same individuals listed on the application to which Ms. Madruga agreed with Mr. Donlon. He then asked Ms. Madruga if there was a certificate for a person who went by the name of Peiyu Chen on the application, to which Ms. Madruga said no. Mr. Runnnalls asked Ms. Madruga if it was City practice to take in money for the permit but not to produce a permit. Ms. Madruga said the fee is for processing the application and if that goes well, a permit is issued. Mr. Donlon called Officer Sabrina Perez. Officer Perez was sworn in by Assistant City Attorney Salameh. Officer Perez testified that she had performed a compliance check of 437 Figueroa Street, suite 100. Mr. Donlon asked Officer Perez what she observed from the outside of the building as the closing time of the business, she said she observed the outside posted hours stated the business closed at 9:30 and she was given a business card that stated the business closed at 11. Officer Perez testified that she did not encounter anyone in the lobby, but when she and her partner started to search the building she was confronted by Peiyu Chen and Xiamei Sun. Mr. Donlon asked Officer Perez if either woman identified themselves as the on- site manager; she said they both denied being the manager. Mr. Donlon asked if when Officer Perez performed her inspections of the business did she find an area for sleeping or a residential area. She said she observed two beds which looked like they had been slept in and a closet full of clothes that did not appear to be uniforms. She said based on what she saw she estimated that at least two individuals were living at the business. She said she also observed a table with food, cooking utensils, and a bottle of wine. Officer Perez stated that during her search she saw a bottle of Astroglide in one of the rooms where massages are performed. Officer Perez said they (Chen & Sun) told her they were staying at the owner’s house but could not provide any details about her name, where she lived, her address, or the general area where the house was located. Mr. Runnalls asked Officer Perez if she had performed a thorough search of the business. She stated that she and her partner did a thorough search. Mr. Runnalls asked if Officer Perez had seen any empty bottle or open beer cans during her search. Officer Perez said because the bottle of wine was on the premises that makes it a City Code violation and she does not have to witness people actually drinking to make it a violation. Mr. Donlon called Officer Kris Richardson. Officer Richardson was sworn in by Assistant City Attorney Salameh. Mr. Donlon asked what he observed when he went into the business, Officer Richardson said it was very apparent that people were living there. He said they did admit they took naps there. Officer Richardson testified that he found a sexually oriented implement, specifically a lubricant, Astroglide, in one of the rooms, which he said is often used for sex. Mr. Donlon called Detective Michael Garcia. Detective Garcia was sworn in by Assistant City Attorney Salameh. Officer Garcia testified that after Ms. Madruga receives and compiles the application packet she will contact him to performed an internet search of the business. Detective Garcia said he conducted an internet search of Bay Spa on Adult Search, which is a search engine similar to Google but it is for illicit advertising. 2 Appeals Hearing Board October 4, 2019 Minutes Mr. Donlon asked Detective Garcia if he had spoken with Ms. Runnalls, the owner of Bay Spa. He said he had and she told him she employs 5 masseuses, but only knew the name of two of them. She told Detective Garica that she hires based on the recommendations of the other masseuses she has employed. Ms. Runnalls told Detective Garcia that she hires from the Southern California/San Diego area. Detective Garcia testified that Ms. Runnalls admitted to not being at the business during operating hours. Mr. Runnalls asked Detective Garcia if Bay Spa had advertised on the sites he searched. Detective Garcia said he did not believe that Bay Spa had posted the ads. Mr. Runnalls asked Detective Garcia if he believed all the postings on the website. Officer Garcia said it would be highly unlikely that there would be over 50 reviews for this business and the reviews not be consistent with what is going on at this business. Mr. Donlon called Chief of Police David Hober. Chief Hober was sworn in by Assistant City Attorney Salameh. Chief Hober gave his credentials and background. Mr. Donlon asked if what he had heard throughout the hearing was consistent with prostitution and human trafficking, Chief Hober answered in the affirmative. Mr. Donlon asked if the denial was based on the evidence presented today, to which Chief Hober agreed. Mr. Donlon asked Chief Hober why it is important to regulate these kinds of businesses. He said he believes there are 3 important reasons: 1.) to ensure that illicit massages are not occurring that result in prostitution; 2.) to protect the businesses that do have a legitimate massage practice; and 3.) to ensure that human trafficking is not taking place. He said regulating helps protect the community and any individuals who might be forced into that type of lifestyle. Mr. Donlon asked Chief Hober if based on the evidence he had heard at the hearing, did it given him reason to second guess his decision to deny the application to Bay Spa, to which Chief Hober answered absolutely not. Board member Hawkins asked Chief Hober if the applicants are given a list of the regulations when they apply for the permit. Chief Hober said he does not know for sure but said just as when you get a Driver’s License, it’s imperative to learn the rules that are required of the licensee. Chair Stocker asked Chief Hober if the business was in violation when they applied for the permit since it had expired in October and they didn’t apply until November. Chief Hober said the business was in violation the day the permit expired. He said the way it should work, is a business should apply prior to the expiration on the current permit or risk being in violation. Mr. Runnalls asked Chief Hober if the Monterey Police Department ever sent a letter notifying the business they could not operate anymore. Chief Hober said he did not believe a letter was sent to the business. Mr. Donlon recalled Angie Madruga to answer a few questions regarding the process. Board member Hawkins asked Ms. Madruga if the applicants are given a copy of the regulations. Ms. Madruga said she did not recall if she gave her a copy of the City Code but she said she always tells people to refer to the City Code. Mr. Donlon then called one of the owners of Bay Spa, Greg J. Runnalls. Mr. Runnalls was sworn in by Assistant City Attorney Salameh. Mr. Donlon asked Mr. Runnalls why he wrote the 3 Appeals Hearing Board October 4, 2019 Minutes letter to the City. Mr. Runnalls said he was requesting a hearing based on the letter he received from the Police Department saying they were going to deny the permit. Mr. Runnalls called Xiao Yan Zhang Runnalls. Ms. Runnalls was sworn in by Assistant City Attorney Salameh. Mr. Runnalls asked Ms. Runnalls if she cooks often for the workers at Bay Spa. Ms. Runnalls said she cooks for them at home and brings it to them at the business. Board member Millich asked Ms. Runnalls how often do you take food to the workers and did you take food on the day of the compliance check. Ms. Runnalls said she did take food at noon for lunch. Mr. Runnalls brought in a sample of the ads that are posted on Google by Bay Spa. At this time Mr. Donlon withdrew the violations based on advertising for sexual services, but not for advertising with the incorrect business hours. Mr. Runnalls said the alcohol was a gift from a customer and they had no idea how long it had been there. He also said there was no evidence of people drinking on the premises. He said the “residence” at Bay Spa is more like an employee breakroom. Mr. Runnalls said most of the masseuses lives in Southern California but they stay with him and his wife at their home. Mr. Runnalls said the clothes at the business are there because they change clothes when they get to work and when they leave. He said they do not wear the same clothes they give massages in. Mr. Runnalls said all the people his wife has hired are certified by the California Massage Therapy Council. Mr. Donlon asked Mr. Runnalls if he knew the alcohol was illegal to keep on the premises; Mr. Runnalls said he’s not denying that the alcohol was on the premises but he said the masseuses did not bring it to the business and no one was drinking it. Mr. Donlon asked Mr. Runnalls how many people walk to work. Mr. Runnalls said 2 or 3 will walk to work. Mr. Runnalls said everyone at the business has an identification card and the on-site manager is now posted. Mr. Donlon gave his closing arguments. Mr. Runnalls gave his closing arguments. Public Comments None. Board Member Comments The Board members discussed the issues of using the business as a residential space; alcohol on the premises; sexually oriented implements on the premises (Astroglide); the number of masseuses on the application; certifications of the masseuses; and hours of operation. Board member Hawkins stated he doesn’t think the city should drop the advertising charge but made a motion to adopt the proposed ruling with the exception of the violation for sexually explicit advertising. 4  Appeals Hearing Board October 4, 2019 Minutes Board member Millich seconded the motion. On a motion made by Board member Hawkins, seconded by Board member Millich, and carried by the following vote, the Appeals Hearing Board denied the appeal and upheld the Police Chief’s Denial of a Massage Establishment Permit for Bay Spa. AYES: 3 COMMISSIONERS: Stocker, Hawkins, Millich NOES: 0 COMMISSIONERS: None ABSENT: 0 COMMISSIONERS: None ABSTAIN: 0 COMMISSIONERS: None RECUSED: 0 COMMISSIONERS: None BOARD MEMBER COMMENTS Chair Stocker made a comment about John Kuehl’s retirement. ADJOURNMENT Chair Stocker adjourned the hearing at 12:02. Respectfully Submitted, Approved, Alicia Salas Daryl Hawkins Recording Secretary Chair of the Board 5