Should I rip out the lawn???

My front lawn is about dead. It happens every summer, unless I water it a lot (and I don't want to for obvious reasons). It is a small plot, maybe 20 feet by 5 feet and has redwood trees that provide limited shade. In addition, it is a "mound" of sorts causing the water to run-off. My question is, what sort of grass can I put there that won't die every year? I am very willing to get away from traditional grasses and would like to explore more native, wild grasses that would look good without much mowing. I like the look of the blue fescue, but live in a fairly manicured home and neighborhood so have that issue to deal with as well. This area is southeast facing with intense sun all day. You can tell me to take it all out and put in rocks and succulents!! Help...