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HomeMy WebLinkAbout2015_0507 Liquor APPROVEDCOUNTY OF KAUAI Minutes of Meeting Open Session Approved as circulated on 05/21/15 Board /Committee: LIQUOR CONTROL COMMISSION Meeting Date May 7, 2015 Location Mo`ikeha Building, Meeting Room #3 Start of Meeting: 4:00 p.m. End of Meeting: 4:37 p.m. Present Chair Paul Endo; Vice Chair Josephine Sokei; Members: Shirley Akita, Jean Iida, Gerald Matsunaga, PaulineVentura Also: Liquor Control Staff: Director Gerald Rapozo, Secretary Cherisse Zaima, Investigators: Lorenzo Moises, Cecilio Baliaris, Jonathan Hoomanawanui, Kenneth Herman; Deputy County Attorney Nicholas Courson Excused Dane Oda Absent SUBJECT DISCUSSION ACTION Call To Order Chair Endo called the meeting to order at 4:00 p.m. with 6 members present, constituting a quorum. Roll Call Director Rapozo called roll, noting 6 members were present. Approval of the Mr. Matsunaga moved to approve the agenda. Agenda Ms. Iida seconded the motion. Motion carried 6:0. Continuation of Public Hearing HANALEI BAY RESORT: The public hearing on Application No. 2015 - 59 filed on February 6, 2015 by AOAO Hanalei Bay Resort dba AOAO Hanalei Bay Resort for change of location of Retail Dealer Beer & Wine License No. 4BW -002 from 5380 Honoiki Road, Princeville, to 5380 Honoiki Road, Princeville, Kauai, Hawaii was opened on April 16, 2015 and continued to May 7, 2015 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, Mr. Scott Pacer, General Manager, was present. Mr. Pacer explained they are moving the store from the tennis shop to the completely rebuilt upstairs Ms. Iida moved to approve Application No. area. 2015 -59. Ms. Akita seconded the motion. Kauai Liquor Control Commission Open Session May 7, 2015 Page 2 Motion carried 6:0. Public Hearing (a) PAU HANA PIT STOP: Application No. 2015 -57 was filed on January 28, 2015 by Pau Hana Pit Stop LLC dba Pau Hana Pit Stop for Retail Dealer General license located at 2 -2515 Kaumuali`i Highway, Kalaheo, Kauai. Hawaii. The Commission accepted Application No. 2015 -57 for publication and public hearing on February 5, 2015 and ordered to print notices of public hearing in The Garden Island newspaper on Wednesdays, March 4 & March 11, 2015, scheduling the public hearing on Thursday, May 7, 2015 at 4:00 p.m. or shortly thereafter in Meeting Room #3 of the Lihu`e Civic Center, Mo'ikeha Building, 4444 Rice Street, Lthu`e, Kauai, Hawaii. Mr. Lance Kamuela Gomes, Manager, was present. Commissioner Matsunaga asked whether the applicant would also be managing the gas station to which Mr. Gomes explained that he was managing the gas station, but it is no longer in operation. In response to Commissioner Akita, Mr. Gomes further explained that he also runs a Ms. Akita moved to approve Application No. window tinting company out of the existing repair shop shown on the 2015 -57. Ms. Sokei seconded the motion. diagram. Motion carried 6:01 Mr. Matsunaga moved that the public hearings for Application Nos. 2015 -64, 2015 -65, and Referencing the motion for consolidation, Director Rapozo noted that each 2015 -66 be consolidated. Ms. Iida seconded the public hearing needed to be closed separately, and separate votes needed to motion. Motion carried 6:0. be made for each item. Mr. Robert Ueoka, the attorney representing the applicant was present along with Christina Gabriel, General Manager. (b) MARRIOTT'S WAIOHAI BEACH CLUB: Application No. 2015 -64 was filed on March 19, 2015 for a transfer of Hotel License No, 12G- Kauai Liquor Control Commission Open Session May 7, 2015 Page 3 012 from Marriott Resorts Hospitality Corporation dba Marriott's Waiohai Beach Club to MVW of Hawaii, Inc. dba Marriott's Waiohai Beach Club located at 2249 Po`ipu Road, K61oa, Kauai, Hawaii. The Commission accepted Application No. 2015 -64 for publication and public hearing on April 2, 2015 and ordered to print notices of public hearing in The Garden Island newspaper on Wednesdays, April 15 & 22, 2015, scheduling the public hearing on Thursday, May 7, 2015 at 4:00 p.m. or shortly thereafter in Meeting Room #3 of the Lihu`e Civic Center, Mo'ikeha Building, 4444 Rice Street, Lihu`e, Kauai, Hawaii. Ms. lida moved to approve Application No. 2015 -64. Ms. Sokei seconded the motion. Motion carried 6:0. (c) MARRIOTT'S WAIOHAI BEACH CLUB: Application No. 2015 -65 was filed on March 19, 2015 for a transfer of Retail Dealer General License No. 4G -033 from Marriott Resorts Hospitality Corporation dba Marriott's Waiohai Beach Club to MVW of Hawaii, Inc. dba Marriott's Waiohai Beach Club located at 2249 Po`ipu Road, K61oa, Kauai, Hawaii. The Commission accepted Application No. 2015 -65 for publication and public hearing on April 2, 2015 and ordered to print notices of public hearing in The Garden Island newspaper on Wednesdays, April 15 & 22, 2015, scheduling the public hearing on Thursday, May 7, 2015 at 4:00 p.m. or shortly thereafter in Meeting Room #3 of the Lihu`e Civic Center, Mo'ikeha Building, 4444 Rice Ms. lida moved to approve Application No. Street, Lihu`e, Kauai, Hawaii. 2015 -65. Ms. Sokei seconded the motion. Motion carried 6:0. (d) MARKETPLACE EXPRESS: Application No. 2015 -66 was filed on March 19, 2015 for a transfer of Retail Dealer General License No. 4G- 037 from Marriott Resorts Hospitality Corporation dba Marketplace Express to MVW of Hawaii, Inc. dba Marketplace Express located at 3325 Holokawelu Way, Lihu`e, Kauai, Hawaii. The Commission accepted Application No. 2015 -66 for publication and public hearing on April 2, 2015 and ordered to print notices of public hearing in The Garden Island newspaper on Wednesdays, April 15 & 22, 2015, scheduling the public hearing on Thursday, May 7, 2015 at 4:00 p.m. or Mr. Matsunaga moved to approve Application Kauai Liquor Control Commission Open Session May 7, 2015 Pate 4 shortly thereafter in Meeting Room #3 of the Lihu`e Civic Center, Mo'ikeha Building, 4444 Rice Street, Lihu`e, Kauai, Hawaii. No. 2015 -66. Ms. Iida seconded the motion. Motion carried 6:0. Minutes of the Minutes of the Meeting of f May 7, 2015 Ms. Ventura moved to approve the minutes. Ms. Meeting Sokei seconded the motion. Motion carried 6:0. 1. DIRECTOR'S REPORT: (a) INVESTIGATORS' REPORTS (b) INCOMING COMMUNICATIONS: (1) Arrowhead Promotion & Fulfillment (2) Avid Marketing Group (3) Delicato Family Vineyards (4) Woodbridge Winery (5) Delicato Family Vineyards (6) Avid Marketing Group (7) Disturbance Reports from Trees Lounge, and St. Regis Princeville Hotel (c) OUTGOING COMMUNICATIONS: (1) Avid Marketing Group (2) Delicato Family Vineyards (3) Avid Marketing Group (d) EMPLOYEES IN LICENSED PREMISES: Managers and Assistant Managers — See Attachment. (e) ACTIONS OF THE DIRECTOR: (1) KILOHANA (2) LIVING FOODS (3) MERRIMAN'S (4) ROB'S GOOD TIMES GRILL Kauai Liquor Control Commission Open Session May 7, 2015 Page 5 (5) SHERATON KAUAI RESORT (6) TAHITI NUI (7) THE WINE GARDEN (8) THE WINE SHOP (9) WRANGLER' S (10) MARK'S PLACE (11) ST. MICHAEL'S & ALL ANGELS CHURCH (12) HAWAII STATE ASSOCIATION OF COUNTIES (13) KAUAI NORTH SHORE COMMUNITY FOUNDATION (14) KAUAI FILIPINO COMMUNITY COUNCIL (15) EASTER SEALS Hawaii Ms. Iida moved to receive Items I (a) through (f) INFORMATIONAL MATTERS (f). Ms. Sokei seconded the motion. Motion carried 6:0. 2. VIOLATION REPORTS: POIPU BAY CLUBHOUSE: Violation of Rule 3.12 Commission orders. Ms. Akita moved to call licensee for violation hearing. Ms. Iida seconded the motion. Motion carried 6:0. 3. NEW LIQUOR LICENSE: SEVEN - ELEVEN HAWAII, INC. Application No. 2015 -71 was filed on April 28, 2015 by Seven - Eleven Hawaii, Inc. dba 7- Eleven Stores (Lawa`i) Ms. Akita moved to accept Application No. for a Retail Dealer General license located at 2 -3687 Kaumuali`i Highway, 2015 -71 for publication and public hearing. Mr. Lawai, Kauai, Hawaii. Deposited $450. Matsunaga seconded the motion. Motion carried 6:0. 4. TEMPORARY LIQUOR LICENSE: SEVEN - ELEVEN HAWAII, INC.: Application No. 2015 -72 was filed on April 28, 2015 by Seven - Eleven Hawaii, Inc. dba 7- Eleven Stores (Lawa`i) for a Temporary License to operate Retail Dealer General License No. 4G- Kauai Liquor Control Commission Open Session May 7, 2015 Pate 6 040 located at 2 -3687 Kaumuali`i Highway, Lawai, Kauai, Hawaii. Deposited $60. Mr. Matsunaga moved to approve App. No. 2015 -72 for temporary license. Ms. Iida seconded the motion. Motion carried 6:0. 5. DISCUSSION ON PROPOSED FINE STRUCTURE FOR VIOLATIONS: Commissioner Akita stated that in her experience with the Liquor Commission, the fines have not been consistent, and is dependent upon who was on the commission at the time, and the temperament of the group. Commissioner Matsunaga explained what he looks at is the nature of the violation as well as whether or not there are any prior violations of any kind, also looking at the aggravating and mitigating circumstances. That is his own perspective, and may explain why certain fines are applied to different cases. Commissioner Ventura questioned what if the prior violations are not related, which is also something they consider when determining fine amounts; there may be big differences in the types of violations that occur such as not having a license displayed versus serving to a minor. Commissioner Matsunaga stated he understands, but noted that he still looks at the overall background of the licensee. He feels if they have prior violations for the same offense, he has no problem imposing a high fine. What he finds problematic with the fines, is that unlike the regular court system that normally issues fines and /or suspension or revocation, the Commission only has the option to either fine or suspend /revoke. In his opinion, he thinks the law has to change to allow the option to both suspend and fine. Chair Endo noted that the Liquor Control Director along with the Investigators provide recommended fines to the Commission, and questioned their thought process on what the fines should be. Kauai Liquor Control Commission Open Session May 7, 2015 Page 7 Investigator Kenneth Herman stated in his opinion, when minimal fines are issued, it makes him feel that he is wasting his time going out to issue violations. He noted that in recent months, he has been issuing the same violations to the same licensees one after the other, which makes it seem that the fines were ineffective; the licensees are just waving them off. He added that it is his understanding that the fines haven't changed for years, and the amounts from years ago may not be as effective now. In response to Chair Endo, Director Rapozo noted that the commissioners were provided the fine structures for both the Big Island and Honolulu. Chair Endo questioned if those examples are what the Commission is looking to do on Kauai. Director Rapozo pointed out that the good thing about the current fine process is that it leaves the discretion to the Commission as to how they want to fine a licensee; each member has a different viewpoint that contributes to the final decision. He explained Maui's "three- strike" rule that states a license must be revoked after the third violation, and does not allow for that kind of Commission discretion. He used the example of having to revoke the license of a large hotel such as the Hyatt Regency, Director Rapozo provided his viewpoint as a former Liquor Investigator, noting that his recommendations as an investigator were often very different from the Director at the time. He explained that being out in the field, they might have issued numerous warnings to the licensee before even issuing a first violation, which is why the investigators' recommendations are usually higher. The reports provided as well as the recommendations from the Department are just guidelines, but the Commission can make their own determination based upon the various information sources provided to them. Commissioner Akita compared how Honolulu Liquor Commission determines fines differently from Kauai. Kauai Liquor Control Commission Open Session May 7, 2015 Pate 8 Chair Endo stated that a large operation will not take as big a hit financially as a small mom and pop store, and the current fine process allows the Commission the latitude to review all aspects of the situation, and make a decision that is fair, and that fits the circumstances. Commissioner Ventura stated in all the years that she has been on the Commission, the licensees have explained their mitigating circumstances, and can only think of one instance where the Commission changed their opinion. She feels that what is good for "A" should be good for "B ", "C", or "D" unless there are mitigating circumstances. Commissioner Iida stated that she likes the idea of allowing the licensee to give their side of the situation. She also suggested the investigators include in the recommendations that the licensee has been given previous warnings as well as any aggravating circumstances so that can be taken into consideration. Director Rapozo suggested that be placed in the Violation Report. Commissioner Matsunaga stated for clarification that the fine schedules for the other islands can be used as just a guideline. Commissioner Sokei questioned the waiver of hearing option, and asked how that is determined. Director Rapozo explained those types of violations are usually considered "paper" violations such as late filing of reports, and other minor violations. The dollar amount of $50 is something they can look at during the rule change process. Several commissioners agreed it should be raised. Commissioner Akita referenced the recently continued public hearing that was extended due to the absence of the applicant. Because it is something that is not currently addressed in the Rules, she suggested something be Kauai Liquor Control Commission Open Session May 7, 2015 Pate 9 included. Director Rapozo stated the letter notifying the applicant of public hearing states their presence is requested. There was further discussion on potential actions the Commission could have taken on that particular application. Chair Endo redirected the discussion back to the proposed fine structure, and asked whether the Commission would like to make a change to the current fine structure, or keep it as is. Investigator Moises stated it is bothersome to him when the investigators go out and issue several warnings to a licensee, and when they come in for their hearing, they sometimes get another warning. He feels they should not be getting any more warnings at a violation hearing. Chair Endo restated the discussion to keep the rule structure as is, which allows for more Commission discretion in determining fines. He requested the investigators make better notes on whether there were any previous warnings issued so the Commission will be better informed. Investigator Hoomanawanui pointed out that the Investigator's report includes the numbers of warnings issued as well as additional information related to those warnings. Investigator Herman stated he keeps weekly notes, and could include information about the number of warnings issued in the Violation Report. Commissioner Matsunaga suggested in addition to including information about warnings given, they should also include information on any corrective measures made by the licensee prior to the hearing. Adjournment Chair Endo adjourned the meeting at 4:37 p.m. Kauai Liquor Control Commission Open Session May 7, 2015 Submitted by: Cherisse Zaima, Private Secretary (x) Approved as is. ( ) Approved with amendments. See minutes of Page 10 Reviewed and Approved by: meeting. Paul Endo, Chair