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HomeMy WebLinkAbout2019_0404 Liquor Open Session APPROVED COUNTY OF KAUAI Minutes of Meeting OPEN SESSION Board/Commission LIQUOR CONTROL COMMISSION Meeting Date April 4, 2019 Location Mo‘ikeha Building, Liquor Control Conference Room 3 Start of Meeting: 4:01 p.m. End of Meeting: 5:29 p.m. Present Chair Paul Endo; Vice-Chair Shirley Akita; Members: Jean Iida, William Gibson, Maryanne Kusaka (entered at 4:15 p.m.), Gerald Matsunaga Also: Liquor Control Staff: Director Gerald Rapozo, Private Secretary Cherisse Zaima; Deputy County Attorney Cameron Takamura Excused Gary Pacheco Absent SUBJECT DISCUSSION ACTION Call To Order Chair Endo called the meeting to order at 4:01 p.m. with 5 members present, constituting a quorum. Roll Call Director Rapozo called roll, noting 5 members were present. Approval of Agenda Approval of Minutes APPROVAL OF MEETING MINUTES: Open Session minutes of March 21, 2019 Commissioner Matsunaga noted a correction to be made on Page 9 under Item 4. g) where the Nishimura should be spelled Nishimoto. Mr. Gibson moved to approve the minutes of the March 21, 2019 meeting, as corrected. Mr. Matsunaga seconded the motion. Motion carried 5:0. 1. Public Hearing a) THE MARKET AT KILAUEA: Application No. 2019-063 was filed on January 29, 2019 by The Kalama Beach Corporation dba The Market at Kīlauea for a New Retail Dealer General license at 2555 Namahana Parkway, Kīlauea, Kauai, Hawaii. The Commission accepted Application No. 2019-063 for publication and public hearing on February 7, 2019 and ordered to print notice of public hearing in The Garden Island newspaper on Wednesdays, February 13 & 20, 2019, scheduling the public hearing on April 4, 2019 at 4:00 p.m. or shortly Liquor Control Commission Open Session April 4, 2019 Page 2 thereafter in Meeting Room #3 of the Līhu‘e Civic Center, Mo'ikeha Building, 4444 Rice Street, Līhu‘e, Kauai, Hawaii. Robert Ueoka, counsel was present to represent the applicant along with Brandi Pacheco, District Manager. The Public Hearing for Application No. 2019-063 was closed. Mr. Matsunaga moved to approve Application No. 2019-063. Ms. Iida seconded the motion. Motion carried 5:0. b) THE MARKET AT KILAUEA: Application No. 2019-064 was filed on January 29, 2019 by The Kalama Beach Corporation dba The Market at Kīlauea for a New Dispenser General (Live entertainment and dancing) license at 2555 Namahana Parkway, Kīlauea, Kauai, Hawaii. The Commission accepted Application No. 2019-064 for publication and public hearing on February 7, 2019 and ordered to print notice of public hearing in The Garden Island newspaper on Wednesdays, February 13 & 20, 2019, scheduling the public hearing on April 4, 2019 at 4:00 p.m. or shortly thereafter in Meeting Room #3 of the Līhu‘e Civic Center, Mo'ikeha Building, 4444 Rice Street, Līhu‘e, Kauai, Hawaii. Director Rapozo noted that the applicant has submitted a letter to amend their application to remove the live entertainment and dancing component. Robert Ueoka, counsel was present to represent the applicant along with Brandi Pacheco, District Manager. The Department received 2 letters in opposition to the application. Mr. Ueoka stated that he has read both letters, and it seems that the main concerns are with the road, which has nothing to do with their application, and with the potential noise that would occur with live entertainment and dancing. He pointed out that since they have withdrawn the live entertainment and dancing component from the application, it will not be an issue. Liquor Control Commission Open Session April 4, 2019 Page 3 Commissioner Gibson referenced a section of the investigators report that stated there is a lanai area that will not be part of the premises. Mr. Ueoka explained that the lanai is located outside the retail establishment, which will be used by patrons to sit and eat. However, there will be no liquor service in that area, therefore, it is not included as part of the liquor licensed premises. The Public Hearing on Application No. 2019-064 was closed. Mr. Matsunaga moved to approve Application No. 2019-064. Ms. Iida seconded the motion. Motion carried 5:0. c) SUEOKA MARKET: Application No. 2019-067 was filed on February 22, 2019 for a transfer of Retail Dealer General License No. 4G-060 from Jan, Inc. dba M. Sueoka Store to MNS, Ltd. dba Sueoka Market located at 5392 Kōloa Road, Kōloa, Kauai, Hawaii. The Commission accepted Application No. 2019-067 for publication and public hearing on March 7, 2019 and ordered to print notice of public hearing in The Garden Island on Wednesday, March 13, 2019, scheduling the public hearing on April 4, 2019 at 4:00 p.m. or shortly thereafter in Meeting Room #3 of the Līhu‘e Civic Center, Mo'ikeha Building, 4444 Rice Street, Līhu‘e, Kauai, Hawaii. Thomas Awong, Store Manager, was present on behalf of the applicant. The Public Hearing on Application No. 2019-067 was closed. Ms. Akita moved to approve Application No. 2019-067. Ms. Iida seconded the motion. Motion carried 5:0. 2. Continuance of Violation Hearings a) KAUAI MARRIOTT RESORT: Violation of HRS 281-31(s) Licenses, classes. Robert Ueoka, counsel, was present on behalf of the licensee along with Georgine Deason. The licensee agreed to waive the reading of the charges. The licensee pleaded no contest to the charges. Mr. Ueoka explained it was an oversight on their part, and a policy has been put in place that the will send a reminder when the new policy is issued so it will not happen again. Liquor Control Commission Open Session April 4, 2019 Page 4 Mr. Ueoka provided the certificate of liability insurance document. Director Rapozo noted for the record that the licensee had current liquor liability insurance at the time of the violation. Mr. Matsunaga moved that a fine of $250 be imposed with $100 suspended provided there is no conviction of a similar offense within 1 year. Mr. Gibson seconded the motion. Motion carried 5:0. Commissioner Kusaka entered the meeting at 4:15 p.m. b) SAFEWAY STORES #2894: Violation of HRS 281-31(s) Licenses, classes. Gabriel Provenza, counsel, was present on behalf of the licensee. The licensee agreed to waive the reading of the charges. The licensee pleaded no contest to the charges. Mr. Provenza explained that the licensee did have all the documents on file, and normally had a practice in place to update them, but for some reason they failed to do so this time. He will be sending reminders to the management during the insurance renewal period. Mr. Provenza provided the certificate of liability insurance document. Director Rapozo noted for the record that the licensee had current liquor liability insurance at the time of the violation. Mr. Matsunaga moved that a fine of $250 be imposed with $100 suspended provided there is no conviction of a similar offense within 1 year. Ms. Iida seconded the motion. Motion carried 6:0. 3. Violation Hearings a) KAUAI RAMEN: Violation of HRS 281-31(s) Licenses, classes. Yuan Ying Lin, President, was present on behalf of the licensee; no counsel. The licensee agreed to waive the reading of the charges. The licensee admitted to the charges. Liquor Control Commission Open Session April 4, 2019 Page 5 Mr. Lin explained that he usually keeps all of the documents under the cash register, but he recently got a new cabinet for that area and forgot to inform his staff that he moved the documents. Mr. Lin provided the certificate of liability insurance document. Director Rapozo noted for the record that the licensee had current liquor liability insurance at the time of the violation. Mr. Matsunaga moved that a fine of $250 be imposed with $100 suspended provided there is no conviction of a similar offense within 1 year. Ms. Iida seconded the motion. Motion carried 6:0. b) LA SPEZIA: Violation of HRS 281-31(s) Licenses, classes. Elizabeth Foley-McGinn, owner, was present on behalf of the licensee; no counsel. The licensee agreed to waive the reading of the charges. The licensee admitted to the charges. Ms. Foley-McGinn stated that the certificate of insurance was in their file, but the Manager on Duty had placed it somewhere else. She now has several copies all over the establishment. Ms. Foley-McGinn provided the certificate of liability insurance document. Director Rapozo noted for the record that the licensee had current liquor liability insurance at the time of the violation. Mr. Matsunaga moved that a fine of $250 be imposed with $100 suspended provided there is no conviction of a similar offense within 1 year. Ms. Iida seconded the motion. Motion carried 6:0. c) ISLANDER ON THE BEACH: Violation of HRS 281-31(s) Licenses, classes. Laurie Morita, General Manager, was present on behalf of the licensee; no counsel. The licensee agreed to waive the reading of the charges. The licensee admitted to the charges. Liquor Control Commission Open Session April 4, 2019 Page 6 Ms. Morita explained that they were in-between managers at the time, and the updated file was not placed where it should have been. They have updated all of their files since then. Ms. Morita provided the certificate of liability insurance document. Director Rapozo noted for the record that the licensee had current liquor liability insurance at the time of the violation. Mr. Matsunaga moved that a fine of $250 be imposed with $100 suspended provided there is no conviction of a similar offense within 1 year. Ms. Iida seconded the motion. Motion carried 6:0. d) OASIS ON THE BEACH: Violation of HRS 281-31(s) Licenses, classes. Stephen Mandell, Manager, was present on behalf of the licensee; no counsel. The licensee agreed to waive the reading of the charges. The licensee admitted to the charges. Mr. Mandell explained that the certificate is usually kept in a glass frame behind the liquor license, but on the day of the violation, the glass was found to be broken and the certificate was not there. He assumes it fell out. Mr. Mandell provided the certificate of liability insurance document. Director Rapozo noted for the record that the certificate of liability insurance document shows the insurance to be in effect from January 15, 2019, however the date of the violation was January 9, 2019. Director Rapozo asked for the document that shows the insurance was in effect at that time. Item 3(d) was moved to the end of the meeting to allow the licensee time to obtain the requested document. Mr. Mandell provided the certificate of liability insurance document. Director Rapozo noted for the record that the licensee had current liquor liability insurance at the time of the violation. Mr. Matsunaga moved that a fine of $250 be imposed with $100 suspended provided there is no conviction of a similar offense within 1 year. Ms. Iida seconded the motion. Motion carried 6:0. Liquor Control Commission Open Session April 4, 2019 Page 7 e) SHERATON KAUAI RESORT LINK CAFÉ: Violation of HRS 281-31(s) Licenses, classes. Michael Young, Director of Food & Beverage, was present on behalf of the licensee; no counsel. The licensee agreed to waive the reading of the charges. The licensee admitted to the charges. Mr. Young explained that the Director of Finance that had been there for over 20 years left, and things fell through the cracks. He noted that 7 different managers are now trained properly so this does not happen again. Mr. Young provided the certificate of liability insurance document. Director Rapozo noted that the certificate only lists Sheraton Kauai Beach Resort at 2440 Hoonani Road, which he explained, is only for the Ocean side of the resort. He further explained that Sheraton Kauai Beach Resort hold 3 separate licenses, all of which have different addresses, and the insurance policy should list all of the locations. He added that in cases where a licensee has multiple locations, the individual locations would be listed on the policy. He asked if the licensee could provide a certificate that contained the correct information. Mr. Young stated he did not have another document as that was what was given to him. He further noted that the insurance company is located on the mainland and he would not be able to obtain another document right away. In response to the commission, Director Rapozo explained that this policy would be sufficient for Item 3(f) Sheraton Kauai Resort (Ocean), but not for Item 3(g) Sheraton Resort (Garden), or Item 3(e) Sheraton Resort Link Café. Mr. Young stated he was not aware that the certificate of insurance needed to specify that, and he was under the impression that the certificate he presented was sufficient to cover all licenses. Liquor Control Commission Open Session April 4, 2019 Page 8 The licensee requested that the hearing be continued to the next meeting to allow him time to obtain the correct document. Commissioner Kusaka asked whether the licensee would continue to serve liquor despite not having the proper insurance document. Director Rapozo stated that though the licensee presented a certificate that does not list all locations, he is fairly certain they are covered. Commissioner Kusaka stated they cannot be sure, and cannot assume that they do because it will fall back on the commission if a serious issue occurs there. She expressed concern that this would set a bad precedent. Liquor Department staff pulled a file copy of the licensee’s certificate of insurance that was submitted with their renewal application. That copy also listed only the one location. Commissioner Gibson asked to clarify that the annual renewal was approved with a certificate of liability insurance that only listed the one location to which Director Rapozo stated yes. Commissioner Gibson stated that he understands where Commissioner Kusaka is coming from, but he thinks it would be a devastating blow to an operation of that nature to cease liquor service. Ms. Kusaka moved to continue the violation hearing for Items 3(e) through 3(g) to the April 18, 2019 meeting. Mr. Gibson seconded the motion. Ms. Kusaka withdrew the motion to continue the violation hearing for Items 3(e) through 3(g). Mr. Gibson moved to move Items 3(e) through 3(g) to the end of the meeting. Ms. Akita seconded the motion. Motion carried 6:0. h) GARDEN ISLAND GRILLE: Violation of HRS 281-31(s) Licenses, classes. Dave and Sheri Trentlage, owners, were present on behalf of the licensee; no counsel. The licensee agreed to waive the reading of the charges. The licensee admitted to the charges. Liquor Control Commission Open Session April 4, 2019 Page 9 Mr. Trentlage stated the document was mailed to his house, and he forgot to bring it in to the restaurant. Ms. Trentlage added that she wasn’t able to look for the document at the time, but she found it later. Mr. Trentlage provided the certificate of liability insurance document. Director Rapozo noted for the record that the licensee had current liquor liability insurance at the time of the violation. Mr. Matsunaga moved that a fine of $250 be imposed with $100 suspended provided there is no conviction of a similar offense within 1 year. Mr. Gibson seconded the motion. Motion carried 6:0. i) THE HANALEI DOLPHIN: Violation of HRS 281-31(s) Licenses, classes. Douglas Allen, owner, was present on behalf of the licensee; no counsel. The licensee agreed to waive the reading of the charges. The licensee admitted to the charges. Mr. Allen provided the certificate of liability insurance document. Director Rapozo noted for the record that the licensee had current liquor liability insurance at the time of the violation. Chair Endo abstained from any official action due to a possible conflict of interest. Vice Chair Shirley Akita stepped in as Chair Pro Tem. Mr. Matsunaga moved that a fine of $250 be imposed with $100 suspended provided there is no conviction of a similar offense within 1 year. Ms. Iida seconded the motion. Motion carried 6:0. j) HANALEI LIQUOR STORE: Violation of HRS 281-31(s) Licenses, classes. Jason Welsh, owner, was present on behalf of the licensee; no counsel. The licensee agreed to waive the reading of the charges. The licensee admitted to the charges. Mr. Welsh explained normally the certificate of insurance is kept inside the rule book. One of the cashiers took it out and failed to put it back. Mr. Matsunaga moved that a fine of $250 be imposed with $100 suspended provided there is Liquor Control Commission Open Session April 4, 2019 Page 10 Mr. Welsh provided the certificate of liability insurance document. Director Rapozo noted for the record that the licensee had current liquor liability insurance at the time of the violation. no conviction of a similar offense within 1 year. Ms. Iida seconded the motion. Motion carried 6:0. 4. DIRECTOR’S REPORTS: a) INVESTIGATOR’S REPORTS: b) INCOMING COMMUNICATIONS: (1) From Strike & Techel (2) From Sweepstakes Consulting (3) From Insight Resource Group c) OUTGOING COMMUNICATIONS: (1) To University of Hawaii, Office of Hawaii Health Studies (2) To All Wholesale Licensees, Re: New Liquor License Stor d) EMPLOYEES IN LICENSED PREMISES: Managers and Assistant Managers – See Attachment “A” e) ACTIONS OF THE DIRECTOR: (1) BEACH HOUSE RESTAURANT (2) KAUAI PASTA KAPAA (3) THE WINE SHOP (4) WRANGLER’S RESTAURANT f) INFORMATIONAL MATTERS: Ms. Iida moved to approve Items 4(a) through f. Ms. Kusaka seconded the motion. Motion carried 6:0. 5. VIOLATION REPORTS: a) HILTON GARDEN INN KAUAI WAILUA BAY: Violation of HRS 281-31(s) Licenses, classes. b) KILOHANA: Violation of HRS 281-31(s) Licenses, classes. Liquor Control Commission Open Session April 4, 2019 Page 11 c) POSTCARDS CAFÉ: Violation of HRS 281-31(s) Licenses, classes. d) ANAINA HOU COMMUNITY PARK: Violation of HRS 281-31(s) Licenses, classes. e) AOAO OF HANALEI BAY RESORT (RETAIL): Violation of HRS 281-31(s) Licenses, classes. f) AOAO OF HANALEI BAY RESORT (DISPENSER): Violation of HRS 281-31(s) Licenses, classes. g) HOKUALA GOLF CLUB: Violation of HRS 281-31(s) Licenses, classes. h) MAKAI GOLF CLUB AT THE ST. REGIS PRINCEVILLE RESORT: Violation of HRS 281-31(s) Licenses, classes. i) THE FISH EXPRESS: Violation of HRS 281-31(s) Licenses, classes. j) JC’S FLOWERS & MINI MART: Violation of HRS 281-31(s) Licenses, classes. k) 7-ELEVEN STORES (LAWAI): Violation of HRS 281-31(s) Licenses, classes. Mr. Gibson moved to call licensees for Items 5(a) through (k) for violation hearing. Ms. Akita seconded the motion. Motion carried 6:0. 6. OFF-PREMISE WAREHOUSING: a) PALATE Kīlauea (Retail): Request for off-premise warehousing, per diagram submitted, located at 2474 Keneke Street, Kīlauea, Kauai, Hawaii. Ms. Akita moved to approve the off-premise warehousing for Palate Kilauea. Ms. Iida seconded the motion. Motion carried 6:0. b) THE TASTING ROOM: Request for off-premise warehousing, per diagram submitted, located at 5476 Kōloa Road, Kōloa, Kauai, Hawaii. Ms. Kusaka moved to approve the off-premise warehousing for Palate Kilauea. Ms. Iida seconded the motion. Motion carried 6:0. a) STOR: Request for off-premise warehousing, per diagram submitted, located at 1824 Haleukana Street, Līhu‘e, Kauai, Hawaii. Ms. Kusaka moved to approve the off-premise warehousing for Palate Kilauea. Ms. Iida seconded the motion. Motion carried 6:0. Liquor Control Commission Open Session April 4, 2019 Page 12 7. TRANSFER LIQUOR LICENSE: KAUAI BEACH RESORT: Application No. 2019-073 was filed on March 20, 2019 for a transfer of Hotel License No. 12G-003 from Kai Management Services, LLC dba Kauai Beach Resort to Team Filament, LLC dba Kauai Beach Resort located at 4331 Kauai Beach Drive, Līhu‘e, Kauai, Hawaii. Ms. Akita moved for publication and public hearing of Application No. 2019-073. Ms. Iida seconded the motion. Motion carried 6:0. 8. TEMPORARY LIQUOR LICENSE: KAUAI BEACH RESORT: Application No. 2019-074 was filed on March 20, 2019 by Team Filament, LLC dba Kauai Beach Resort for a temporary liquor license to operate Hotel License No. 12G-003 located at 4331 Kauai Beach Drive, Līhu‘e, Kauai, Hawaii. Ms. Akita moved to approve the temporary liquor license for Kauai Beach Resort. Mr. Matsunaga seconded the motion. Motion carried 6:0. 9. NEW LIQUOR LICENSE: KAUAI DISTILLING COMPANY (RETAIL): Application No. 2019-075 was filed on March 27, 2019 by LBD Coffee, LLC dba Kauai Distilling Company for a New Retail Dealer General license at 5907 C Kawaihau Road, Kapaa, Kauai, Hawaii. Ms. Akita moved for publication and public hearing of Application No. 2019-075. Mr. Gibson seconded the motion. Motion carried 6:0. Violation Hearing 1. VIOLATION HEARING: e) SHERATON KAUAI RESORT LINK CAFÉ: Violation of HRS 281-31(s) Licenses, classes. f) SHERATON KAUAI RESORT (OCEAN): Violation of HRS 281-31(s) Licenses, classes. g) SHERATON KAUAI RESORT (GARDEN): Violation of HRS 281-31(s) Licenses, classes. Mr. Young stated he spoke with their Director of Finance, and the documents she has are the same as what he presented. There was no one Liquor Control Commission Open Session April 4, 2019 Page 13 available at the insurance company, and he was informed they would probably be unable to get it until next week. Commissioner Akita commented that she can’t imagine that a corporation of that size would not have any insurance; however, Commissioner Kusaka posed an excellent question. Mr. Young stated that they have had their license renewed consistently over the years with this document. He is more than happy to get the correct paperwork, but he is very concerned about the number of employees that may be affected should they not be allowed to serve alcohol. Director Rapozo added that they do have proof of insurance for Item 3(f) Sheraton Kauai Resort (Ocean), so that item could be disposed of today. Michael Young, Director of Food & Beverage, was present on behalf of the licensee; no counsel. The licensee agreed to waive the reading of the charges. The licensee admitted to the charges. Mr. Young explained that the Director of Finance that had been there for over 20 years left, and things fell through the cracks. He noted that 7 different managers are now trained properly so this does not happen again. Vice Chair Akita noted that in 2016 a similar violation was issued to which Mr. Young replied that was before his time there as Food and Beverage Director. Commissioner Kusaka stated that it seems they repeatedly have an issue with their proof of coverage, and commented that this may be a good lesson. Ms. Kusaka moved to reopen the violation hearing for Item 3(f) Sheraton Kauai Resort (Ocean). Ms. Akita seconded the motion. Motion carried 6:0. Ms. Akita moved that a fine of $250 be imposed. Ms. Iida seconded the motion. Motion carried 6:0. Executive Session EXECUTIVE SESSION: Liquor Control Commission Open Session April 4, 2019 Page 14 Pursuant to Hawai‘i Revised Statutes §§92-4 and 92-5 (a) (4) the purpose of this executive session is to consult with the Commission’s legal counsel on questions and issues pertaining to the Commission’s powers, duties, privileges, immunities, and liabilities as they may relate to this item, deliberate and take such action as appropriate. Ms. Akita moved to enter into Executive Session. Mr. Gibson seconded the motion. Motion carried 6:0. Return to Open Session VIOLATION HEARING: e) SHERATON KAUAI RESORT LINK CAFÉ: Violation of HRS 281-31(s) Licenses, classes. Michael Young, Director of Food & Beverage, was present on behalf of the licensee; no counsel. The licensee agreed to waive the reading of the charges. The licensee admitted to the charges. The meeting resumed in open session at 5:20 p.m. Ms. Kusaka moved to suspend the license for Sheraton Kauai Resort Link Café until a certificate of liability insurance is submitted to the Liquor Department and found satisfactory by the Director. Mr. Gibson seconded the motion. Motion carried 6:0. g) SHERATON KAUAI RESORT (GARDEN): Violation of HRS 281-31(s) Licenses, classes. Michael Young, Director of Food & Beverage, was present on behalf of the licensee; no counsel. The licensee agreed to waive the reading of the charges. The licensee admitted to the charges. Ms. Kusaka moved to suspend the license for Sheraton Kauai Resort (Garden) until a certificate of liability insurance is submitted to the Liquor Department and found satisfactory by the Director. Mr. Gibson seconded the motion. Motion carried 6:0. Announcements Next Scheduled Meeting: Thursday, April 18, 2019 – 4:00 p.m., Mo’ikeha Building, Meeting Room #3. Adjournment Chair Endo adjourned the meeting at 5:29 p.m. Liquor Control Commission Open Session April 4, 2019 Page 15 Submitted by: __________________________________ Reviewed and Approved by: _________________________________________ Cherisse Zaima, Private Secretary Paul Endo, Chair ( ) Approved as circulated. ( ) Approved with amendments. See minutes of ___________ meeting.