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HomeMy WebLinkAbout2022_0928 Liquor Open Session-Minutes - APPROVED.pdfALWIFIFIR-i-i'01VERCOUNTY OF KAUAI Minutes of Meeting OPEN SESSION Approved see minutes of 10.14.2022. Board/Commission: LIQUOR CONTROL COMMISSION Meeting Date September 28, 2022 Location Pi'ikoi Building, Suite 300 4444 Rice Street, Lihue, HI 96766 Start of Meeting: 1:00 p.m. End of Meeting: 1:29 p.m. Present Vice Chair Leland Kahawai Members: Gerald Matsunaga, Randall Nishimura, Lorna Nishimitsu, Tess Shimabukuro. Also: Liquor Control Staff: Director Leo Sandoval -Reyes, Liquor Private Secretary: Malialani Kelekoma, Deputy County Attorney: Charles Foster Excused Dee Crowell Absent SUBJECT DISCUSSION ACTION A. CALL TO ORDER Vice Chair Kahawai called meeting to order @ 1:00 p.m. B. ROLL CALL Director Leo Sandoval -Reyes called roll, Commissioner Nishimura is not present, Chair Dee Crowell is excused, noting five members were present constituting a quorum. At 1:01 p.m. Commissioner Nishimura entered the meeting. C. ANNOUNCEMENTS: Next Scheduled Meeting: Wednesday October 12th, 2022 — 1:00 p.m. or shortly thereafter. Details on the meeting will be forthcoming. D. APPROVAL OF AGENDA Director Sandoval -Reyes asked if there's anyone in the public who wishes to testify on No Public Testimony. this agenda item. Liquor Control Commission Open Session September 28, 2022 Page 2 SUBJECT DISCUSSION ACTION Motion: Mr. Matsunaga moved to approve the agenda. Ms. Nishimitsu seconded the motion. Motion carried 5:0. E. CONSENT AGENDA: Director Sandoval -Reyes asked if there's anyone in the public who wishes to testify on No Public Testimony. this agenda item. 1. APPROVAL OF MINUTES: August 10, 2022 (Deferred from 9/14/2022) and August 24, 2022. 2. DIRECTORS REPORT: September 9, 2022 — September 22, 2022 3. EMPLOYEES IN LICENSED PREMISES: a. Managers and Assistant Managers Red/Blue Card exam list - See Attachment "A" 4. ACTIONS OF THE DIRECTOR: a. Waiving of Rights to a Violation Hearing: 1. Case No. 2023-002: WB's Exclusive Lounge LLC. dba WB's Exclusive Lounge - 2G-059 b. Transient Vessel License Issued for Ratification: 1. License No. TV-2023-20: Holland America Line N.V. dba MS Westerdam, for a Liquor Control Commission Open Session September 28, 2022 Page 3 SUBJECT DISCUSSION ACTION Transient Vessel Liquor License, in port at Nawiliwili Harbor, Pier 2, Kauai, Hawaii, on October 10, 2022. 2. License No. TV-2023-21: Holland America Line N.V. dba MS Zuiderdam, for a Transient Vessel Liquor License, in port at Nawiliwili Harbor, Pier 2, Kauai, Hawaii, on October 12, 2022. 3. License No. TV-2023-22: Holland America Line N.V. dba MS Koningsdam, for a Transient Vessel Liquor License, in port at Nawiliwili Harbor, Pier 2, Kauai, Hawaii, on October 18, 2022. 4. License No. TV-2023-23 and TV-2023-24: Intercruises Shoreside & Port Services dba Radiance of the Seas, for a Transient Vessel Liquor License, in port at Nawiliwili Harbor, Pier 2, Kauai, Hawaii, on October 1 and 8, 2022. C. Request for Permanent Reduction of Premises: 1. Kawailoa Development, LLP. dba Poipu Bay Clubhouse (5G-028): located at 2250 Ainako Street, Koloa, Kauai, Hawaii, requested a permanent reduction of premises to include the restaurant and kitchen space leased to a tenant in order to seek out a separate license to sell liquor. d. Request for Temporary Increase: 1. Duke's Canoe Club, LLC. dba Dukes Canoe Club (2G-007): located at 3500 Rice Street, Lihue, Kauai, Hawaii, requested a temporary increase of premises to include the grass area fronting the restaurant for a consumption area during a special event to be held on October 15, 2022, from 9:00 a.m. to 10:00 p.m. Liquor Control Commission Open Session September 28, 2022 Page 4 SUBJECT DISCUSSION ACTION e. Request for Temporary Decrease: 1. Troy's LLC. dba Troy's (5G-002): located at 3-3100 Kuhio Hwy C2 and C3, Lihue, Kauai, Hawaii, requested a temporary increase of premise to include the dining room as indicated on the included diagram for an event on October 1, 2022, from 5:00 p.m. to 8:00 p.m. f. Request for off -premise warehousing: 1. License No. 2G-004 / AG Avalon LLC. dba Avalon Gastropub: request for temporary off -premises warehousing, per diagram submitted, located at 1481 Haleukana Street, Lihue, Kauai, Hawaii within the Guardian Self Storage Puhi. Motion: Summary: Second paragraph of the Disposition of Violation Hearing for WB's paid a fine of $50.00, record should reflect $150.00. For the record Director Sandoval -Reyes will Mr. Matsunaga moved that the make the correction. Correction for the August 24, 2022, minutes page 17 third full Consent Agenda be approved paragraph, instead of litigating certain things should be mitigating. subject to corrections of the August 24t" minutes page 17, rather than litigating it should be mitigating. Mr. Nishimura seconded the motion. Motion carried 4:1 abstain. F. PUBLIC TESTIMONY ON ALL AGENDA ITEMS: Director Sandoval -Reyes asked if there's anyone in the public who wishes to testify on No Public Testimony. this item at this time. Liquor Control Commission Open Session September 28, 2022 Page 5 SUBJECT DISCUSSION ACTION G. ADOPTION OF DECISION AND ORDER: Director Sandoval -Reyes asked if there's anyone in the public who wishes to testify on No Public Testimony. this agenda item. Motion: 1. Case No. 2023-005: Red Rooster Restaurants, LLC. dba Fish Bar Deli. Ms. Nishimitsu moved to approve 2. Case No. 2023-003: Resort Management International, Inc. a California the decisions and orders pertaining Corporation dba The Point at Poipu. to Case No. 2023-005 Red Rooster Restaurants, LLC dba Fish Bar Deli, 3. Case No. 2023-004: Shivalik Indian Cuisine, LLC. dba Shivalik Indian Cuisine. Case No. 2023-003 pertaining to Resort Management International, Inc. a California Corporation dba Summary: The Decision and Order has a one-year period commences on September 14, The The Point at Poipu, Case No. 2023- 2022, and ends September 14, 2023, which is a year and a day. Moving forward, make pertaining to Shivalik Indian changes to the template to terminate the day before. Cuisine, LLC dba Shivalik Indian Cuisine. Mr. Nishimura seconded the motion. Motion carried 5:0. H. PUBLIC HEARINGS: Director Sandoval -Reyes asked if there's anyone in the public who wishes to testify on No Public Testimony. this agenda item. 1. SOF-XI Kauai PV Hotel, L.P., dba 1 Hotel Hanalei Bay: Application No. 2023-006 was filed on July 6, 2022, by SOF-XI Kauai PV Hotel, L.P., dba 1 Hotel Hanalei Bay for a Hotel License located at 5520 Ka Haku Road, Princeville, Kauai, Hawaii. Liquor Control Commission Open Session September 28, 2022 Page 6 SUBJECT DISCUSSION ACTION Jonathon Chun, Counsel, was present on behalf of SOF-XI Kauai PV Hotel, LP dba 1 Hotel Hanalei Bay. Vice Chair Kahawai asked if he received a copy of the department's report. Mr. Chun replied yes, and I have no corrections, revisions, or suggested comments to the report. Vice Chair Kahawai asked the two gentlemen to step forward and to state their name. Dave Mizrachi, Director of Food & Beverage and Jason Cruz, Vice President SOF-XI Kauai PV Hotel, LP dba 1 Hotel. Vice Chair Kahawai opened the public hearing for SOF-XI Kauai PV Hotel, L.P., dba 1 Hotel Hanalei Bay: Application No. 2023-006. There was no one in support or in opposition of this application. Commissioners do you have any additional questions for the applicant. Commissioner Nishimitsu asked will the licensee SOF-XI operate all seven dining areas? The entire hotel premises is the licensed area? Is that how you are running it. Mr. Mizrachi replied yes correct. Commissioner Nishimitsu asked is the entire hotel premises the licensed area, is that how you are running it? Does that mean that I can get liquor from one of the restaurants, I can walk around the whole hotel with the glass that I got from that one restaurant? Liquor Control Commission Open Session September 28, 2022 Page 7 SUBJECT DISCUSSION ACTION Mr. Chun replied yes, under the liquor license. I'm not too sure whether the hotel restaurant personnel would allow that. Mr. Mizrahi commented yes, ordinarily someone may get a drink the restaurant that they take to their room. For example, they may get one in the lounge and sit in the lobby or walk over to the pool. Commissioner Nishimitsu asked is that how you will be operating. Mr. Mizrahi replied yes. Director Sandoval -Reyes commented for clarification there was an inquiry of the position of Mr. Robert Paul Geimer and his position in the hotel, he is the Senior Vice President. Commissioner Nishimura asked a question of the department, do we have some letter of authorization indicating that these gentlemen can represent the operation? Director Sandoval -Reyes replied we have Mr. Jonathon Chun. Mr. Chun replied just myself, I brought these guys in case you have any operational questions and all the hotel, and how the restaurants would be operating. Commissioner Nishimura asked is it my understanding that in addition to the hotel grounds surrounding the entirety of the hotel is a licensed premises. Mr. Chun replied yes, the parcel itself is the boundaries. Liquor Control Commission Open Session September 28, 2022 Page 8 SUBJECT DISCUSSION ACTION Commissioner Nishimura replied is that the department's understanding as well. So, they can take their drinks and go to the ocean. Director Sandoval -Reyes replied as long as it is in the premises only. It is going to be the same as the previous licensee they had. Mr. Chun commented the ocean would be the high-water mark, so they are going to put a rope indicating what those boundaries are. That is informed by science, we need to do that for the boundaries to indicate exactly where liquor can or cannot be. There's a highwater mark that's one of the issues we put in. Commissioner Nishimitsu asked Director Sandoval -Reyes are there any other hotels that operate that way? Or do they have all individual licensees in the restaurant. Director Sandoval -Reyes replied there's similar, but some have opted to have the management agreement with somebody else to obtain the license. But the premises does the same. They can't go to the ocean; they are going to have to control it. Like the Sheraton and Hyatt, they can't go anywhere near the ocean. Commissioner Nishimitsu asked to the management of the restaurant. I'm giving the authority over the restaurant premises not the whole hotel and its grounds. So, my question was are you aware of any other hotels that operate the same way. I buy my booze at that one restaurant, and I walk all over the place and then we are free to do so. Because I might have left the licensee premises at that point. Director Sandoval -Reyes replied to Commissioner Nishimitsu, the licensee premises is the entire location, so they are able to leave. Commissioner Nishimitsu asked are other hotels like that. Liquor Control Commission Open Session September 28, 2022 Page 9 SUBJECT DISCUSSION ACTION Director Sandoval -Reyes commented all of them. Mr. Chun commented I think Kauai Beach Resort Nukolii Hotel is operated like that. The restaurant is under the hotel license in general along with the bar. I don't work on the operations, but I am familiar with that because I did their license for them. So, technically under the liquor license they can go anywhere to the pool, and any where else. That is the reason why it is up to the hotel itself where they would want to limit glasses. For example, from the bar to go out to the pool, they can do that on their own. Without regard to the liquor laws because sometimes it's an operational issue. That's my glass or return it right, I know under the laws Kauai Beach Resort operates like that. Commissioner Nishimura asked is the hotels intent to run all the restaurants on premises. Mr. Mizrahi replied yes. Commissioner Shimabukuro asked how are you intending to control anyone leaving the licensed area. Mr. Cruz replied because of the nature of the site there is only one way in and out, which you are familiar with the old St. Regis. At that point you're in a cab or your own private vehicle. That is our control mechanism, you have to go past the gate of the property. Vice Chair Kahawai replied through the beach side. Mr. Cruz replied even though you come up the beach side path you have to walk past the security gate of the hotel. Liquor Control Commission Open Session September 28, 2022 Page 10 SUBJECT DISCUSSION ACTION Vice Chair Kahawai commented the back side. Mr. Cruz replied as far as access on the ohana lands there's a gate that will be closed and there is security there as well. Commissioner Matsunaga asked Mr. Chun if the boundaries are the entire premises including the parking lot and Port Alexander? Mr. Chun replied to Commissioner Matsunaga yes that is correct. Commissioner Nishimitsu commented I imagine the facility like this will have a sundry store, etc. Will those sundry stores be allowed to sell liquor? Mr. Cruz replied no, there is no alcohol, everything is on -premises, we don't have off - premises. Motion: Commissioner Nishimura replied the big reason is then it becomes impossible. Mr. Nishimura moved that we approve Application No. 2023-006 Mr. Cruz replied yes correct, we decided not to sell alcohol in the retail store. SOF-XI Kauai PV Hotel, L.P., dba 1 Hotel Hanalei Bay under a Hotel Vice Chair Kahawai asked the Commissioners are there any further discussion, hearing License and as represented by the none. He closed the Public Hearing for SOF-XI Kauai PV Hotel, L.P., dba 1 Hotel Hanalei applicant that nobody else will be Bay. Is the Commission ready to make a decision? permitted to sell liquor in the Sundry Shops. Mr. Matsunaga seconded the motion. Motion carried 5:0. Liquor Control Commission Open Session September 28, 2022 Page 11 SUBJECT DISCUSSION ACTION I, PRELIMINARY HEARING (NEW LICENSE): Director Sandoval -Reyes asked if there's anyone in the public who wishes to testify on No Public Testimony. this agenda item. Motion #1: 1. Kauai Poke Co. LLC. dba Kauai Poke Co. at Poipu Bay: Application No. 2023-034 was filed on September 13, 2022, by Kauai Poke Co. LLC. dba Kauai Poke Co. at Mr. Nishimura moved to accept Poipu Bay for a New Restaurant General (B) Live Entertainment and Dancing Kauai Poke Co. LLC dba Kauai Poke license to be located at 2250 Ainako St. Koloa, Kauai, Hawaii. Co. Application No. 2023-034 schedule for Publication and Public Summary: This will be a sub -lease, once approved the hotel will no longer have control Hearing. Ms. Nishimitsu seconded to include the walk-in cooler. The applicant will be responsible for the on -premises. the motion. Motion carried 5:0. Hotel will be responsible for the golf course. Motion #2 2. Friendly Waves, LLC. dba Friendly Waves: Application No. 2023-037 was filed on September 19, 2022, by Friendly Waves, LLC. Dba Friendly Waves for New Mr. Nishimura moved to accept Restaurant General (A) No Live Entertainment and No Dancing license to be Friendly Waves, LLC. dba Friendly located at 5460 Koloa Road, Suite B102, Koloa, Kauai, Hawaii. Waves Application No. 2023-037 schedule for Publication and Public Hearing. Mr. Matsunaga seconded the motion. Motion carried 5:0. J. VIOLATION REPORT: Director Sandoval -Reyes asked if there's anyone in the public who wishes to testify on No Public Testimony. this agenda item. Liquor Control Commission Open Session September 28, 2022 Page 12 SUBJECT DISCUSSION ACTION Motion: 1. Case No. 2023-009: Koloa Pizza Kitchen + Bar, LLC. dba Koloa Pizza Kitchen + Bar located at 5408 Koloa Road, Unit 04-01, Koloa, Kauai, Hawaii, Violation of Rule Mr. Nishimura moved to schedule 7.8. a Violation Hearing for Koloa Pizza Kitchen + Bar, LLC, License No. 2G- 095 for Violation of Rule 7.8. Mr. Matsunaga seconded the motion. Motion carried 5:0. K. ADJOURNMENT Motion: Mr. Nishimura moved to adjourn the meeting. Mr. Matsunaga seconded the motion. Motion carried 5:0. Meeting ended at 1:29 p.m. L. EXECUTIVE SESSION: Pursuant to HRS §92-7(a), the Commission may, when deemed necessary, hold an No Executive Session executive session on any agenda item without written public notice if the executive session was not anticipated in advance. Any such executive session shall be held pursuant to H.R.S. §92-4 and shall be limited to those items described in HRS §92-5(a) Liquor Control Commission Open Session September 28, 2022 Submitted by: Malialani Kelekoma, Private Secretary Page 13 (X) Approved as circulated. ( ) Approved with amendments. See meeting. Reviewed and Approved by: Leo Sandoval -Reyes, Director of Liquor Control