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HomeMy WebLinkAbout2015_0903 Liquor APPROVEDCOUNTY OF KAUAI Minutes of Meeting Open Session Board /Committee: LIQUOR CONTROL COMMISSION ACTION Meeting Date I September 3, 2015 Location Mo`ikeha Building, Meeting Room #3 Start of Meeting: 4:00 p.m. End of Meeting: 4:31 p.m. Present Chair Paul Endo, Vice Chair Josephine Sokei; Members: Members: Shirley Akita, Jean Iida, Gerald Matsunaga, Dane Oda, Pauline Ventura Also: Liquor Control Staff: Director Gerald Rapozo, Private Secretary Cherisse Zaima; Deputy County Attorney Nicholas Courson Excused Director Rapozo called roll, noting 7 members were present. Absent Director Rapozo noted the following addition to the agenda: SUBJECT DISCUSSION ACTION Call To Order Chair Endo called the meeting to order at 4:00 p.m. with 7 members present, constituting a quorum. Roll Call Director Rapozo called roll, noting 7 members were present. Approval of the Director Rapozo noted the following addition to the agenda: Agenda PROPOSED AMENDMENTS TO RULES AND REGULATIONS OF THE LIQUOR CONTROL COMMISSION OF THE COUNTY OF KAUAI: RULE 1.1 DEFINITIONS: "Dancing" means "to move your body in a way that goes with the rhythm and style of music that is being played." Ms. Iida moved to approve the agenda as amended. Ms. Ventura seconded the motion. Motion carried 7:0. Violation POIPU BEACH ATHLETIC CLUB: Violation of Sec. 281- 31(c)(1)(B) Hearing Restaurant License, Mr. Anthony Carll was present representing the licensee; no counsel, charges admitted. Kauai Liquor Control Commission Open Session September 3, 2015 Page 2 Mr. Carll explained that when he applied for the license, he was under the impression that this license allowed for dancing. He notified the Department of their first event, and asked for an investigator to come and ensure they were adhering to all the rules. He noted again, that he thought dancing was included under this restaurant license. Upon finding out they were in violation, PBAC LLC filed a new application to include the dancing condition. Mr. Carll stated they have an event that weekend, for which he applied for a special license in order to allow dancing. Mr. Carll apologized, stating he thought dancing was included. Commissioner Matsunaga pointed out that the violation report states the liquor investigator did give him a warning, and explained that dancing was not permitted to which Mr. Carll affirmed, adding that he was confused at that time, and asked if he needed to shut down the event. Mr. Carll stated the investigator told him no, he did not need to shut it down, but if multiple people start to dance, he will have to issue a violation. Mr. Carll then told the investigator that he would accept the violation then, noting the investigator was very polite and helpful. Mr. Carll stated he tried to make an announcement about the dancing, but it was difficult to get the MC to do so with all that was going on. Commissioner Matsunaga asked to clarify that the liquor investigator did inform the licensee to correct the situation by announcing and posting signs that dancing was not permitted. Mr. Carll stated they did post signs, and attempted to get an announcement out, but there was much going on; he should have gone on stage to make the announcement himself. Commissioner Lida pointed out that the violation report states the liquor investigator told the licensee to cease all dancing completely; however, Mr. Carll's version of the events sounds different. Mr. Carll explained that children were already dancing, and that the investigator told him that as soon as he sees adults start to dance, he would issue a violation. At that Kauai Liquor Control Commission Open Session September 3, 2015 Page 3 point, several adults began to dance, and a violation was given. Ms. Iida asked whether Mr. Carll attempted to put a stop to it right then and there to which Mr. Carll stated there was no demand from the liquor investigator to stop the dancing altogether; however, signs were posted, and they tried to stop it, but due to the large amount of people, they were unable to do so. Mr. Carll added that he truly thought that because they were allowed to have live entertainment, dancing would be allowed as well. PBAC currently has a new license in the works. Commissioner Oda asked to clarify that the new license he is referencing is to allow dancing on a permanent basis to which Mr. Carll replied yes, explaining that they have applied for special licenses for any upcoming events. He noted that on the day their new license application is to come before the Commission, they have an event scheduled for that evening; he has already applied for a special license for that event in case the application does not go through. Chair Endo closed the violation hearing. Mr. Matsunaga moved that a fine of $2,000 be imposed. Ms. Iida seconded the motion. Commissioner Matsunaga explained his reason for imposing the maximum fine of $2,000 is that this is the first violation that has come before him in which the offense was committed knowingly and intentionally. The licensee did not correct the situation though he was given the opportunity to do so. Commissioner Akita noted she realizes the licensee was in violation, but can also empathize with the circumstances. She agrees that it sounds like the licensee was caught in a dilemma and chose to go with the violation, which was a conscious action. She acknowledged that the licensee violated the Kauai Liquor Control Commission Open Session September 3, 2015 Pate 4 statutes, but feels $2,000 is excessive for a first violation. Vice Chair Sokei stated she agreed with Commissioner Akita, and would like to suggest a different fine. Mr. Carll interjected to say that it was never stated to him to shut the project down, and stop dancing completely; it was an agreement that he and the liquor investigator came to. It was never stated that it needed to be shut down. Director Rapozo stated the investigators would not shut down any operation, only the liquor commission has the power to suspend an operation. The investigator can make recommendations, and it is up to the licensee whether or not to accept the recommendation or not. Commissioner Iida pointed out that the violation report states that signs were NOT posted, which tells her that the licensee did not do what the investigator recommended. Ms. Akita moved that a fine of $1,000 be imposed with $500 suspended provided there is no conviction of a similar violation within I -year. Ms. Ventura seconded the motion. Commissioner Matsunaga stated based on the facts and circumstances where a violation was committed knowingly and intentionally, he feels that would just be a slap on the wrist, again noting that this is the first violation that has come before him where there was an intentional violation. Mr. Carll interjected to state that he did not think it was intentional as he did not do anything to lead the investigator to believe it was done intentionally Mr. Matsunaga moved that a fine of $2,000 be imposed. Ms. Iida seconded the motion. Motion failed 4:3 (Nay: Akita, Oda, Sokei, Ventura; Aye: Endo, Iida, Matsunaga) Kauai Liquor Control Commission Open Session September 3, 2015 Pate 5 or knowingly. He stated he did everything is his power to rectify the situation, noting he has applied for a new license to include live entertainment and dancing, stating again that he was under the assumption that a license for live entertainment included dancing, which it does on Oahu where he holds two liquor licenses. He feels the outcome of the discussion with the investigator was an agreement they both came to. Commissioner Iida asked if the investigator who issued the violation could come up and speak to which Deputy County Attorney Courson explained Ms. Akita moved that a fine of $1,000 be imposed the hearing has already been closed, and that even the comments being with $500 suspended provided there is no given by Mr. Carll should not be happening. conviction of a similar violation within I -year. Ms. Ventura seconded the motion. Motion failed 4:3 (Nay: Endo, Iida, Matsunaga, Oda; Aye: Akita, Sokei, Ventura) Mr. Oda moved that a fine of $2,000 be imposed with $1,000 suspended provided there is no conviction of a similar violation within 1 -year. Mr. Matsunaga seconded the motion. Motion carried 6:1 (Aye: Akita, Endo, Iida, Matsunaga, Oda, Sokei; Nay: Ventura) Minutes of the Minutes of the Meeting of f August 20, 2015 Ms. Ventura moved to approve the minutes. Ms. Meeting Sokei seconded the motion. Motion carried 7:0. 1. DIRECTOR'S REPORT: a) INVESTIGATORS' REPORTS b) INCOMING COMMUNICATIONS: (1) From The Wine Group, Re: Blends With Friends 2015 sweepstakes, flipflop Wines 2015 You Flippin' CANcun contest (2) From Delicato Family Vineyards, Re: Gnarly Head Hat Contest Kauai Liquor Control Commission Open Session September 3, 2015 Pate 6 (3) From Constellation Brands, Inc., Re: SVEDKA coupon offers (4) From Avid Marketing Group, Re: Phusion Lokoween 2015 sweepstakes, and Dos Equis coupon offers (5) From Arrowhead Promotions, Re: Oakheart Dominate to Tailgate sweepstakes (6) Disturbance Reports from Tiki Iniki, Rob's Good Times Grill, Port Allen Sunset Grill & Bar, and Nawiliwili Tavern c) OUTGOING COMMUNICATIONS: (1) To The Wine Group, Re: Blends With Friends 2015 sweepstakes, flipflop Wines 2015 You Flippin' CANcun contest (2) To Delicato Family Vineyards, Re: Gnarly Head Hat Contest (3) To Constellation Brands, Inc., Re: SVEDKA coupon offers (4) To Avid Marketing Group, Re: Phusion Lokoween 2015 sweepstakes, and Dos Equis coupon offers (5) To All Wholesale Licensees, Re: The Feral Pig Cancellation of Liquor License, Birdie's Cafe Change of Firm Name to Paco 's Tacos d) EMPLOYEES IN LICENSED PREMISES: Managers and Assistant Managers — See Attachment. e) ACTIONS OF THE DIRECTOR: (1) SAFEWAY SUPERMARKET (Li -hu`e) (2) DESTINATION EVENTS HAWAII (3) WALDRON NORTON LILLY INTERNATIONAL (4) KAUAI MUSEUM f) INFORMATIONAL MATTERS: Mr. Matsunaga moved to receive Items I (a) through (f). Ms. Iida seconded the motion. Motion carried 7:0. Kauai Liquor Control Commission Open Session September 3, 2015 Pate 7 2. VIOLATION REPORTS: a) MEA INU BEER KIOSK: Violation of HRS 281- 31(f)(1) Class 5 Dispenser Licenses. b) PORT ALLEN SUSNSET GRILL & BAR: Violation of Rule 7.13 Fight and disturbance reports. c) ISLAND PALM: Violation of Rule 4.7(a)(1) Gross liquor sales report, percentage fee, and records. d) LEMON GRASS GRILL & SEAFOOD: Violation of Rule 4.7(a)(1) Gross liquor sales report, percentage fee, and records. Ms. Iida moved to call the licensees for Violation e) KAUAI SPORTS BAR & ASIAN CUISINE: Violation of Rule 4.7(d) Hearing. Mr. Oda seconded the motion. Motion Records and accounts. carried 7:0. 3. CHANGE IN CORPORATE OFFICERS: YOUNG'S MARKET COMPANY, LLC: Removal of Paul Armon Vert as President /CEO /Assistant Secretary, Dennis James Hamann as Executive Vice President /CFO /Secretary, and Janet Underwood Smith as Executive Vice President /Secretary /Director. Appointment of Rick Gillis as President, Jason Wooler as Executive Vice President/General Manager — California, John Erickson as Executive Vice Ms. Akita moved to approve the change in President /General Manager — Hawai`i, and Brian O'Neill as Executive corporate officers. Ms. Iida seconded the motion. Vice President /General Counsel /Assistant Secretary. Motion carried 7:0. 4. CHANGE OF LICENSEE NAME: a) ASTON HOTELS & RESORTS, LLC (Aloha Beach Kauai Hotel): Change of limited liability company name from "Aston Hotels & Resorts, LLC" to "Aqua -Aston Hospitality, LLC" on Hotel License No. 12G -004. Kauai Liquor Control Commission Open Session September 3, 2015 Page 8 b) ASTON HOTELS & RESORTS, LLC (Islander on the Beach): Change of limited liability company name from "Aston Hotels & Resorts, LLC" to "Aqua -Aston Hospitality, LLC" on Dispenser General License No. 5G-005. c) KAI MANAGEMENT SERVICES, LLC (Kauai Beach Resort): Change of Aqua Hospitality LLC's sole member name from "Hospitality Partners, Inc." to "AHR Hospitality Partners, Inc. ", and change of Aqua Hotels and Resorts, Inc.'s sole stockholder name from "Hospitality Ms. Akita moved to approve the request for Partners, Inc." to "AHR Hospitality Partners, Inc." on Hotel License No. change of firm name. Ms. Iida seconded the 12G -003 motion. Motion carried 7:0. 5. ALCOHOL PURCHASE PERMIT: GLOBAL ALGAE INNOVATIONS: Request for permit to purchase Ms. Iida moved to approve the request for ethyl alcohol. solicitor's permit. Ms. Akita seconded the motion. Motion carried 7:0. 6. PROPOSED AMENDMENTS TO RULES AND REGULATIONS OF THE LIQUOR CONTROL COMMISSION OF THE COUNTY OF KAUAI: RULE 1.1 DEFINITIONS: "Dancing" means "to move your body in a way that goes with the rhythm and style of music that is being played." Ms. Akita moved to approve the rule amendments for publication and public hearing. Ms. Ventura seconded the motion. Motion carried 7:0. Announcements Next Scheduled Meeting: Thursday, September 17, 2015 — 4:00 pm, Mo`ikeha Building, Meeting Room #3. Adjournment Chair Endo adjourned the meeting at 4:31 p.m. Kauai Liquor Control Commission Open Session September 3, 2015 Submitted by: Cherisse Zaima, Private Secretary O Approved as is. () Approved with amendments See minutes of Page 9 Reviewed and Approved by: meeting. Paul Endo, Chair