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HomeMy WebLinkAboutminutes05-20-10 MINUTES May 20, 2010 The Kauai Liquor Control Commission held a regular meeting on Thursday, May 20, 2010, at 4:00 p.m. in Meeting Room #3 of the Lihue Civic Center, Mo'ikeha Building, 4444 Rice Street, Lihue, Kauai, Hawaii, to transact business as did properly come before the meeting as follows: ROLL CALL: In response to roll call, Chair Gerald Matsunaga, Vice Chair Shirley Akita, and Commissioners Clifford Nakea and Gary Pacheco were present. Absent and excused was Commissioner William Gibson. APPROVAL OF AGENDA: Commissioner Nakea made a motion, which was seconded by Commissioner Pacheco, and unanimously carried, to approve the hearings and regular meeting agendas as prepared by the Director. 1 . PUBLIC HEARING: THE NEW CANNERY: Application No. 2010-94 was filed on March 11 , 2010 by C.O.R. LLC dba The New Cannery for a Retail Dealer General license at 5633 Kawaihau Road, Kapaa, Kauai, Hawaii. The Commission accepted Application No. 2010-94 for publication and public hearing on March 18, 2010 and ordered to print notices of public hearing in The Garden Island newspaper on Wednesdays, March 24 & March 31 , 2010, scheduling the public hearing on Thursday, May 20, 2010 at 4:00 p.m. or shortly thereafter in Meeting Room #3 of the Lihue Civic Center, Mo'ikeha Building, 4444 Rice Street, Lihue, Kauai, Hawaii. The Director reported that all legal requirements for today's public hearing have been met. By affidavit, the applicant has indicated that it has mailed notices of this public hearing to 76 property owners and lessees of record, and up to the time of this public hearing, the department has not received any letters opposing or supporting this application. Chair Matsunaga opened the public hearing and asked if the Investigator's Report was received. Mr. Russell Boyer, the corporate member's Vice President, and Ms. Elizabeth Gayer, Accountant/Business Manager, represented the applicant. Ms. Gayer stated that the Investigator's Report was received and the physical address of The New Cannery is 5611 Kawaihau Road, not 5633 Kawaihau Road as indicated in the report. The error was made when The Olde Cannery listed 5633 Kawaihau Road in their application and it carried over to this application. The New Cannery is located in one big building and the second half is operated by Honsador Lumber, whose address is 5633 Kawaihau Road. 1 MINUTES May 20, 2010 Chair Matsunaga asked for anyone who wished to object to this application. Since no one wished to speak against this application, Chair Matsunaga asked for anyone who wished to speak in favor of this application. Mr. Boyer explained that he acquired the store because the previous owner was unable to meet their commitments. Mr. Boyer stated that he is at the store almost every day and he can see that the store serves the community very well. They provide a positive service to the community. Ms. Gayer added that after the Mayor's Walking to School event last week, there was a boom at the store as the Mayor, participants and the film crew all came in to get drinks. Ms. Gayer felt that the store has been a convenience to the community. Commissioner Nakea made a motion, which was seconded by Commissioner Pacheco, and unanimously carried, to approve Application No. 2010-94 filed by C.O.R. LLC dba The New Cannery for a Retail Dealer General license. 2, VIOLATION HEARINGS: (a) PORT ALLEN SUNSET GRILL & BAR: Violation of Section 281-31(r), HRS, Licenses, classes. Mr. Peng Leng Tay, President, represented the licensee and admitted to the charge. Mr. Tay explained that he had problems with the wholesalers not servicing his account on the weekends. He receives service only once a week. Since he does not want to lose customers, Mr. Tay said that when he goes to Costco, he also picks up the liquor he needs. Mr. Tay added that he includes all the Costco purchases in his sales and he pays the Liquor Commission for everything he sells. Vice Chair Akita asked if he understands that he has to purchase liquor from the wholesalers and Mr. Tay stated that he understands that, but on the other hand, he doesn't want to lose his customers and the wholesalers don't make deliveries on weekends. Vice Chair Akita said it behooves him to plan ahead and order more for the weekends. Mr. Tay replied that he plans to contact the wholesalers ahead of time to get them to service his account. Vice Chair Akita made a motion, which was seconded by Commissioner Pacheco, and unanimously carried, to assess a $250 fine against Port Allen Sunset Grill & Bar for violation of Section 281-31 (r) of the Hawaii Revised Statutes. 2 MINUTES May 20, 2010 (b) LAVA LOUNGE: Violation of Section 281-38, HRS, Conditions of licenses. (Note: The licensee has requested that this hearing be rescheduled to June 3, 2010.) The Director stated that the licensee had originally requested a continuance to June 3, 2010, but he has retained counsel who is here today. This is something new so Mr. Doug Haigh of the Building Division is here to explain the process. Mr. Doug Haigh, Department of Public Works, Building Division, explained that normally violations are reported to them and then they'll conduct an investigation. The Building Division gives a verbal notification to let the owners know that there is a violation. In this case, a follow-up was done on March 12, 2010 and the Building Division sent a written notice of violation for putting in walls and doing demolition of some walls without a building permit. On March 23, 2010, the Building Division issued a formal stop work order. On this type of violation, Mr. Haigh explained that if the property owner cooperates, they are allowed an opportunity to prepare plans and come in to get a building permit. The property owners have taken reasonable steps to correct the violation so the Building Division is not recommending a fine. Mr. Haigh stated that today they received a set of plans for a building permit. They will review and approve the plans, and they will double the permit fee for after-the-fact work. The inspectors will have to inspect the building and if things are covered up and they need to look at them, they'll have the owners open up the walls so they can verify and make sure the work was done correctly. For this instance, Mr. Haigh reiterated that they did receive the plans today and they will be processing a building permit for that violation. The Director asked how long it would take before the Certificate of Occupancy is issued. Mr. Haigh replied that he did a preliminary review of the plans and it seems fairly simple. Mr. Haigh imagined it would be a one- to two-month process for them to get their building permits, but added that he did not know if there are Planning or Water issues. The Director stated that he checked with Planning and they did have concerns about parking. If that were the case, Mr. Haigh said the process could get very lengthy. Chair Matsunaga inquired about the permit fees and Mr. Haigh stated that he doesn't know the exact amount of the fees since he hasn't reviewed the plans in detail to determine those fees. The plan reviewer needs to do an initial review of the plans to come up with a valuation. The fee is a percentage of this valuation and then that amount will be doubled. Chair Matsunaga wondered if the charge should be dismissed without prejudice where the charge can be re-filed since it appears that the Building Division's intention is to dismiss the matter. Mr. Haigh stated that after-the-fact permitting is not totally unusual and they have a set process to deal with it. The penalty is the doubling of the permit fee. Mr. Haigh said they don't levy fines as long as the owners act responsibly, but the fees are doubled. 3 MINUTES May 20, 2010 Mr. Walton Hong stated that he represents Beatrice Conant who, along with another individual, will be purchasing the business and he has been authorized by the licensee to represent them. Mr. Hong had no problem with the charge being dismissed without prejudice. Mr. Hong added that this violation did not occur under Ms. Conant's watch, but before, and he was going to ask for a continuance until his client can get a handle on it and resolve the violations. Commissioner Nakea asked if the business was operating and Mr. Hong replied in the affirmative. Commissioner Pacheco asked if they've stopped construction and Mr. Hong indicated that they have stopped the work pending the building permit. Commissioner Pacheco asked why it took so long, from March 12 to today, to apply for the building permit. Mr. Hong explained that they had to get a draftsman to draw the plans, then they had to get the plans stamped by an architect. The architect stamped the plans yesterday. Mr. Mauna Kea Trask, Deputy County Attorney, stated that if there are Planning or Water issues, the building permit process could take two to three years. Chair Matsunaga felt the options were to continue the hearing or dismiss the charge. Based on the testimony given today, Mr. Trask indicated that he would recommend a continuance. Mr. Hong stated that he would prefer the charge be dismissed without prejudice because a continuance would hold up the transfer of the license. Mr. Hong understood that a license with an outstanding violation could not be transferred. Either way, the Director stated that prior to issuing a license, they'd need a Certificate of Occupancy. Mr. Hong said that on the transfer then, they'd be able to operate until the Certificate of Occupancy is issued. Commissioner Nakea felt a third option would be to prosecute. Vice Chair Akita concurred that this is a violation that has been brought to the Liquor Commission's attention. We have heard from Mr. Haigh about the Building Division's intentions. The Director stated that the liquor license could be suspended until the transferor gets a Certificate of Occupancy. Mr. Hong stated that if the license is suspended, they cannot operate. A motion was made by Commissioner Nakea to follow the Building Division's lead and monitor the building permit process for two months and continue this hearing at the second meeting in July, which will be held on July 15, 2010. This motion was seconded by Vice Chair Akita and unanimously carried. 4 MINUTES May 20, 2010 (c) PACIFIC ISLAND BISTRO: Violation of Section 281-78(b)(1)(A), HRS, Prohibitions. Mr. Wen Liang, President, represented the licensee and admitted to the charge. Mr. Liang stated that the gentleman who served the liquor was having family problems. He used to always check IDs, even of 40-year-old customers, but that day, he had problems. He asked to view the ID, but did not see well. A motion was made by Commissioner Nakea, seconded by Commissioner Pacheco, and unanimously carried, to assess a $2,000 fine against Pacific Island Bistro and suspend payment of$1 ,000 provided there is no further violation of this section for one year. The Commission adjourned the hearings agenda and continued with the agenda for the regular meeting. 1 . DIRECTOR'S REPORT: (a) INVESTIGATORS' REPORTS. (b) INCOMING COMMUNICATIONS: (1) From W. J. Deutsch & Sons, Ltd., Re: Brands of Eight Estates Fine Wines, LLC. (2) Disturbance Reports from Nawiliwili Tavern and Sheraton Kauai Resort. (c) OUTGOING COMMUNICATIONS: (1) Notice of Hearings to Port Allen Sunset Grill & Bar and Lava Lounge. (2) Findings of Fact to Kountry Kitchen Restaurant, King & I Thai Cuisine, The Lodge at Kokee, The Beach House Restaurant, and Hanamaulu Cafe. (3) To Pacific Island Bistro, Re: Rescheduling of Violation Hearing. (d) EMPLOYEES IN LICENSED PREMISES: Managers and Assistant Managers — See attachment. (e) ACTIONS OF THE DIRECTOR: (1) KALAPAKI JOE'S: Approval of special request for temporary increase of premises to include the courtyard side balcony, per diagram submitted, on May 8, 2010 from 3:00 p.m. to 11 :00 p.m. 5 MINUTES May 20, 2010 (e) ACTIONS OF THE DIRECTOR: (Cont'd.) (2) THE ST. REGIS PRINCEVILLE RESORT: Approval of off-premise catering function on May 13, 2010 at 4304 Anini Vista Road, Kilauea, Kauai, Hawaii. (3) TAHITI NUI ENTERPRISES, INC.: Approval of special request for temporary increase of premises to include 30' x 14' area fronting the restaurant and no closer than 10' from the roadway, per diagram submitted, from 11 :00 a.m. on May 13, 2010 to 1 :00 a.m. on May 16, 2010. (4) DA KINE WINE: Approval of special request to conduct wine tastings on May 15, May 22 & May 29, 2010 from 4:00 p.m. to 7:00 p.m. (5) KAUAI HIGH SCHOOL FOUNDATION: Approval of Application No. Free 2010-31 filed by Kauai High School Foundation for a Free One-Day Special Dispenser General license on June 19, 2010 in Exhibit Hall "B" at the Kauai War Memorial Convention Hall, 4191 Hardy Street, Lihue, Kauai, Hawaii. (6) KILOHANA: Approval of Application No. 2010-102 filed on May 5, 2010 by Kauai Kilohana Partners dba Kilohana for a Special General license on May 18, 2010 at Smith's Tropical Paradise, 3-5971 C Kuhio Highway, Wailua, Kauai, Hawaii. (7) SMITH'S TROPICAL PARADISE: Approval of special request for temporary decrease of premises on May 18, 2010 from 4:00 p.m. to 12:00 midnight. (f) INFORMATIONAL MATTERS. A motion was made by Commissioner Pacheco, seconded by Vice Chair Akita, and unanimously carried, to approve the above Director's Report. 2. VIOLATION REPORT: LAVA LOUNGE: .Count 1 . Violation of Rule 7.7, Clearing of tables at closing time. .Count 2. Violation of Rule 6.2, Sales, service, or consumption before or after hours of business, exception. Vice Chair Akita made a motion, which was seconded by Commissioner Pacheco, and unanimously carried, to issue notice of hearing to Three Palms, Inc. dba Lava Lounge for violation of Rules 7.7 and 6.2 and schedule the hearing on June 3, 2010. 3. CHANGE IN CORPORATE OFFICERS: SEVEN-ELEVEN HAWAII, INC.: Appointment of George Ayres Hanna as Chief Operating Officer and Vice President. Vice Chair Akita made a motion, which was seconded by Commissioner Nakea, and unanimously carried, to approve the change in corporate officers of Seven-Eleven Hawaii, Inc. 6 MINUTES May 20, 2010 4. CANCELLATION OF TEMPORARY LICENSE: HUKILAU LANAI: Effective May 13, 2010, cancellation of Temporary License No. T 2010-07 issued to Scratch LLC dba Hukilau Lanai. A motion was made by Commissioner Pacheco, seconded by Commissioner Nakea, and unanimously carried, to accept the cancellation of Temporary License No. T 2010-07. 5. CANCELLATION OF LICENSE: KING & I THAI CUISINE: Effective April 29, 2010, cancellation of Restaurant Beer & Wine License No. 2BW-003 issued to Siamerica, Ltd. dba King & I Thai Cuisine and permission to take remaining liquor inventory home for personal consumption. Commissioner Pacheco made a motion, which was seconded by Commissioner Nakea, and unanimously carried, to approve the cancellation of Restaurant Beer & Wine License No. 2BW-003 issued to Siamerica, Ltd. dba King & I Thai Cuisine. 6. TEMPORARY LICENSES: (a) KAPAA LIQUOR & WINE CO. LLC: Application No. 2010-105 was filed on May 12, 2010 by Kapaa Liquor & Wine Co. LLC dba same for a Temporary license to operate Retail Dealer General License No. 4G-028 pending approval of Transfer Application No. 2010-104. Deposited $60. A motion was made by Commissioner Pacheco, seconded by Vice Chair Akita, and unanimously carried, to approve Application No. 2010-105 filed by Kapaa Liquor & Wine Co. LLC dba same for a Temporary license. (b) CASA DI AMICI RESTAURANT: Application No. 2010-107 was filed on May 13, 2010 by Keahi Yates, LLC dba Casa di Amici Restaurant for a Temporary license to operate Restaurant General License No. 2G-053 (live entertainment and dancing, with conditions) located at 2301 Nato Road, Koloa, Kauai, Hawaii. Deposited $60. Commissioner Pacheco made a motion, which was seconded by Commissioner Nakea, and unanimously carried, to approve Application No. 2010-107 filed by Keahi Yates, LLC dba Casa di Amici Restaurant for a Temporary license to operate Restaurant General License No. 2G-053. 7 MINUTES May 20, 2010 7. TRANSFER OF LICENSE: KAPAA LIQUOR & WINE CO. LLC: Application No. 2010-104 was filed on May 12, 2010 for transfer of Retail Dealer General License No. 4G-028 from Lyle K. Kuboyama dba Kapaa Liquor & Wine Company to Kapaa Liquor & Wine Co. LLC dba same located at 4-1397 Kuhio Highway, Kapaa, Kauai, Hawaii. Deposited $275. Commissioner Pacheco made a motion, which was seconded by Vice Chair Akita, and unanimously carried, to accept Application No. 2010-104 filed by Kapaa Liquor & Wine Co. LLC dba same for publication and public hearing and to print notice of public hearing in The Garden Island newspaper on Wednesday, May 26, 2010, scheduling the public hearing on Thursday, June 17, 2010 at 4:00 p.m. or shortly thereafter in Meeting Room #3 of the LThu'e Civic Center, Mo'ikeha Building, 4444 Rice Street, LThu'e, Kaua'i, Hawaii. ADJOURNMENT: There being no further business to transact, Chair Matsunaga adjourned the meeting at 4:39 p.m. Respectfully submitted, Christine Nakaahiki Commission Secretary 8