HomeMy WebLinkAbout2022_310 Liquor Open Session-Minutes APPROVED.pdf��JJAPPRIV
I ELD
COUNTY OF KAUAI � JJ
Minutes of Meeting
OPEN SESSION
See Open Session Minutes of 04-14-22.
Board/Commission:
LIQUOR CONTROL COMMISSION
Meeting Date
March 10, 2022
Location
Tele Conference via Microsoft Teams Audio
Start of Meeting: 4:00 p.m.
End of Meeting: 5:13 p.m.
+1469-848-0234, Conference ID: 930 694 009#
https://bit.ly/3ogyCgD
Tele
Chair Dee Crowell, Vice Chair Leland Kahawai, Members: William Gibson, Randy Nishimura, Gary Pacheco, Tess Shimabukuro, Lorna
Present
Nishimitsu
Also: Liquor Control Staff: Director Leo Sandoval, Liquor Clerical Assistant Mary Ann Ornellas & Anela Segreti, Ellen Ching
Administrator Boards & Commission, Deputy County Attorney Charles Foster
Excused
Absent
SUBJECT
DISCUSSION
ACTION
A.
CALL TO ORDER
Chair Crowell called meeting to
order 4:00 p.m.
B.
ROLL CALL
Director Leo Sandoval called roll, noting 7 members were present and alone via Tele-
Conference constituting a quorum.
C.
ANNOUNCEMENTS:
Next Scheduled Meeting: Thursday, March 24, 2022 — 4:00 p.m. or shortly thereafter
D.
APPROVAL OF AGENDA
Agenda is approved as modified
Item J. Point HB LLC and not BH
Correction to Consent Agenda Item J it should be Point HB LLC. and not Point BH LLC.
LLC.
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E.
CONSENT AGENDA
Motion:
1. APPROVAL OF MINUTES: None
Mr. Gibson moved to approve the
Consent Agenda. Mr. Pacheco
2. DIRECTORS REPORT: February 18, 2022 — March 3, 2022
seconded the motion.
Motion carried 7.0
3. INVESTIGATORS ACTIVITY REPORTS:
4. EMPLOYEES IN LICENSED PREMISES:
Managers and Assistant Managers Red/Blue Card exam list - See Attachment "A"
5. ACTIONS OF THE DIRECTOR:
a. CHICKEN IN A BARREL WAIMEA: Approval of a special request for addition
of (1) Friday night trivia and (1) Corn Hole entertainment device to be
located on premises.
6. TEMPORARY INCREASE OF PREMISES:
a. MPK MANAGEMENT CO. LLC., dba THE BEACH HOUSE RESTAURANT:
Approval of Temporary Extension of Premises to include the patio lawn
space, as seen in the attached packet. The space is approximately thirty
feet by eighty feet from March 12, 2022, through April 12, 2022.
b. All applicable requirements have been met and clearances obtained
including a temporary emergency (SMA) Special Management Permit
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from planning, a clearance from Building Division, and Department of
Health.
c. MPK Management has filed with the Planning Commission an application
for a permanent Special Use Permit (SMA), Public Hearing scheduled for
April 12, 2022.
7. CHANGE IN OFFICERS/DIRECTORS/ MEMBERS:
a. COSTCO WHOLESALE CORPORATION dba COSTCO WHOLESALE 640 (4G-
030 : The addition of Gary Dean Swearingen as Assistant Secretary and
ownership of less than one percent. The addition of Roland Michael
Vachris as President/Director and ownership of less than one percent.
The deletion of Walter Craig Jelinek as President and will remain as CEO &
Director.
F.
PUBLIC TESTIMONY:
Director Sandoval stated public testimony is open for any agenda item and any person in
the public that would like to testify on any agenda item was allowed to do so at this time
and it would be separate from the Public Hearing Agenda.
Chair Crowell noted that Public Hearing for Hometown Canteen closed at the last
meeting (February 24, 2022). Therefore, anyone wanting to provide testimony on this
item was allowed to do so under this item.
Ms. Tapia present, representing the neighborhood, testified they are happy about the
limited outdoor seating, and they talked with Mr. Tennberg about stating how many
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SUBJECT
DISCUSSION
ACTION
tables he is planning to have outside. The homeless has taken over that entire area and
it would be beneficial and healthy for the community to have life in that area.
Mr. Patt, present and testified he was a tenant of Old Koloa Town for 20 years. Mr. Patt
indicated at the last meeting; Mucho Aloha purported that they would provide
additional measure of security to Ms. Tapia. Mucho Aloha is a restaurant and the kind
of security that a shopping center provides is episodic. Its' not 24/7, in fact it's not 7.
Mr. Tennberg cannot provide security beyond the premises as they promised, and
security is up to Koloa Town and Bill Corp. If Ms. Tapia thinks she's going to get more
protection from Mucho Aloha security guards, they are not. They are not going to go
chasing homeless people out. That's not there kuleana (responsibility), they can't do
that. Do not believe them. It's not in their domain. It's up to Old Koloa Town.
Historically, a shopping mall still does not provide the kind of security that Mrs. Tapia is
looking for and she will need to talk to the Police Department.
Jonathan Chun present, testified on behalf of applicant. He thanked the Commission for
allowing him and his client time during this public testimony period. He wanted to point
out that Mr. Patt's misrepresented to the Commissions statements made by applicant
and other people.
Mr. Chun pointed out that Mr. Patt's comments regarding security by a landlord is based
upon his 20-year-old experience with a different landlord. I don't believe he is qualified
to testify or to offer comment as to what their current landlord will currently do.
The applicant has never ever said they we will provide security at the parking sites.
We've always said in our public testimony, we will provide security on the licensed
premises and the landlord will be providing security at the parking sites. Mr. Chun
disagreed and objected to Mr. Patt's continued misuse and misquoting of statements.
Mr. Chun further expressed Mr. Patt's statements must be taken with a grain of salt
because he is misstating a lot of the facts and testimony.
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G.
PUBLIC HEARING:
Motion:
1. HOMETOWN CANTEEN LLC. dba Mucho Aloha: HOMETOWN CANTEEN LLC. dba
Mr. Nishimura moved that the
Mucho Aloha filed Application No. 2022-034 on April 6, 2021, for a New Brew
Liquor Control Commission
Pub B (With Live Entertainment and Dancing) License located at 5330 Koloa Rd,
approve Liquor License application
Suite 13-1, Koloa, Kauai, Hawaii. Deposited $450.00. (Continued from
No. 2022-034 for Hometown
1/13/2022, 1/27/2022 2/10/2022 and 2/24/2022) Public Hearing was closed on
Canteen, LLC dba Mucho Aloha
2/24/2022, pending Commission decision.
Koloa subject to the following
conditions:
Director Sandoval stated, this public hearing has been closed previously during the
previous Commission meeting, pending the motion by Commissioner Nishimura.
As represented by the applicant,
music will end no later than 8:00
Commissioner Nishimura shared the draft motion with the conditions. He noted the
pm and business will close no later
information was taken from correspondences that was on record and he synthesized it
than 9:00 p.m. daily.
into a motion which, he understood, applicant was willing to accede to. He wanted the
Commission and the applicant a chance to review the motion and see if there are any
As represented by the applicant,
changes that Commission would need to make prior to formally moving forward with
outdoor seating shall be limited to
the motion.
the lanai seating under a future
new roof structure and outdoor
Mr. Chun and his client commented on the draft motion and conditions and had agreed
seating will not exceed 65 patrons.
to all the representation except for the representation on the outdoor seating.
Mr. Chun questioned whether 50 feet was needed to be included in the condition
As represented by the applicant,
regarding landscape screening and fencing. He further stated, we will comply with all
landscape screening and fencing
federal, state and county agency requirements as a condition of this approval. Mr. Chun
shall be installed between the
further indicated the process for permit approval and any Department of Health issue
licensed premises and adjacent
and believed last sentence in that in that condition is not needed because that's part of
properties within 50 feet of the
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the normal processing by the liquor department.
licensed premises to enhance
privacy and mitigate noise, at the
applicant's cost.
Representation Re: Outdoor seating
As represented by the applicant,
Mr. Chun expressed, the proposed condition as written would stop all outdoor seating,
the applicant shall work with the
which he believed was not agreed to. Applicant will agree to limited outdoor lanai
Department of Liquor Control to
seating under a future new roof structure does not exceed 65 patrons, which he
install adequate Parking, signage,
understands was taken from a letter that Mr. Tapia wrote to the Commission.
egress, and ingress at its cost as
represented in their letter to Ms.
Mr. Chun asked Commission to have his client comment on the condition of the 65
Colleen Iwai's counsel dated
outdoor seating.
January 26, 2022.
Commissioner Nishimura stated he has no objection to allowing Mr. Tennberg to
As represented by the applicant,
comment.
the large outdoor cooler
equipment is to be fenced and
Mr. Tennberg thanked the Commission for getting to this point and as Mr. Chun
insulated to reduce noise as well as
represented everything in the draft motion is exactly as represented, except for outdoor
not interfering with the driveway
seating condition. The intent is not to have an extensive seating area outside, but to
easement road on the south side of
have some seating which is part of the licensed premises. This was one of the main
the Mucho Aloha Koloa premises.
reasons why he chose this location. He stated the ability to have seating out by the lanai
is very important.
The applicant shall comply with all
Federal, State and County Agency
Commissioner Nishimura stated, Mr. Chair, for the record, the condition that I put in
requirements as a condition of this
there was primarily to limit the outdoor seating to 65. It is not to impose a total number
approval. Any Department of
of 65 and not the entire operation, it's just on the outside.
Health issues shall be addressed
prior to issuance of the liquor
Mr. Tennberg stated, that would be more than adequate, and I thank you for that.
permit.
Commissioner Nishimura stated, that was my understanding when I read through Mr.
Tapia's letter and the Tapia's were ok with the outdoor seating. I would say let's leave it
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in there.
Mr. Tennberg and Mr. Chun replied yes, with that understanding.
Chair Crowell asked Ms. Tapia if this was her understanding.
The applicant is further advised
that prior to and during
Ms. Tapia replied, yes, we're per happy about it.
construction and use, additional
Commissioner Nishimura indicated, we could make it clearer to read "under the future
government agency conditions may
be imposed. It shall be the
new structure and outdoor seating will not exceed 65 patrons".
applicant's responsibility to resolve
Mr. Chun stated, yes, that wording is clear and would be acceptable to the applicant.
those conditions with the
respective agency(ies).
Commissioner Nishimura stated, if no further discussion, I move that we introduced this
motion with the conditions as amended. Vice Chair Kahawai seconded.
Vice Chair Kahawai seconded.
Chair Crowell stated it's been moved and seconded to approve the application with the
Roll call vote:
conditions and asked if there are further discussions.
Mr. Gibson - Aye
Commissioner Nishimitsu questioned, whether the liquor license issued, will be held
Mr. Nishimura -Aye
until completion of the new structure, the completion of the installation of the
Ms. Nishimitsu - Aye
landscape screening and fencing, and the coordination with the department on installing
Mr. Pacheco - Aye
parking signage etc. Is this the intent?
Ms. Shimabukuro- Aye
Vic Chair Kahawai - Aye
Commissioner Nishimura replied, yes.
Chair Crowell — Aye
Director Sandoval noted, since we made the second, we must do vote and can't
continue with comments.
The motion carried 7.0.
Chair Crowell asked Director Sandoval to do roll call.
Mr. Chun and Mr. Tennberg thanked the Commission.
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Chair Crowell thanked Commissioner Nishimura for his hard work on the motion.
2. LAHAINA PETROLEUM, LLC dba RAINBOW GAS & MINI MART: Application No.
- 040 was filed on January 13, 2022, by Lahaina Petroleum, LLC. dba Rainbow Gas
& Mini Mart for a transfer of Retail Dealer General No. 4G-050 from Lahaina
Petroleum, LLC to Aloha Petroleum, LLC. located at 4-350 Kuhio Highway,
Kapaa, Kauai, Hawaii. Deposited $335.00
b. All legal requirements have been met for today's public hearing.
c. The applicant has sent out notices to property owners or lessees of
record within 500 feet of the proposed premises and up until this time of
the public hearing the department has not received any letters in
support, however we have received one letter in opposition to this
application.
Director Sandoval noted a correction to Item c, the department have not received any
letters of support or opposition on this item.
Mr. John Williams, representing the applicant Lahaina Petroleum.
Chair Crowell asked Mr. Williams if he received a copy of the investigators report and if
he had any comments.
Mr. Williams stated, he received the report and had no comments.
Motion 1.
Chair Crowell opened the public hearing and there was no public testimony. Its' been
Ms. Nishimitsu moved to close the
moved and seconded to close the Public Hearing and no further discussion. Public
Public Hearing. Mr. Nishimura
Hearing closed.
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seconded.
Commission discussed error on the agenda, typo on the names, whether Notice was
Motion carried 7.0
correct and how to move forward with the Motion. Clarence Sales stated Notice of
Motion 2.
Hearing was published correctly with the correct names. Mr. Foster opined, given the
publication notice was correct, Commissioner can move ahead. Mr. Foster expressed;
Nishimura moved to approve
the motion must reflect correct names.
Transfer of License No. 4G-050
Transfer
from Rainbow Gas & Mini Mart LLC
Commissioner Nishimura asked Mr. Williams, is Lahaina Petroleum which you represent
dba Rainbow Gas & Mini Mart to
the proposed transferee, also dba Rainbow Gas and Mini Mart?
Lahaina Petroleum, LLC dba
Rainbow Gas & Mini LLC. Mr.
Mr. Williams replied, yes, dba is being transferred to us as well. We just wanted to keep
Pacheco seconded the motion.
the same business name.
Roll call:
Chair Crowell noted it's been moved and seconded to approve this application. Any
Mr. Gibson - Aye
discussion. No further discussion.
Mr. Nishimura - Aye
Ms. Nishimitsu -Aye
Mr. Pacheco- Aye
Ms. Shimabukuro - Aye
Vice Chair Kahawai - Aye
Chair Crowell - Aye
Motion carried 7.0
H.
TRANSFER OF LIQUOR LICENSE APPLICATION
1. HAOLE GIRL ISLAND SWEETS, LLC. dba STREET BURGER: Applicant No. 2022-
046 was filed on February 25, 2022, by Haole Girl Island Sweets, LLC. dba
Street Burger for a transfer of Restaurant General (A) No live music & No
dancing from Double Rainbow Inc. to Haole Girl Island Sweets, LLC. located
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SUBJECT
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ACTION
at 4-369 Kuhio Highway, Kapaa, Kauai, Hawaii. Deposited $335.00
Chair Crowell noted it's been moved and seconded to accept the application to
publish and set for public hearing. No further discussion.
Motion:
Vice Chair Kahawai moved to
approved transfer of Liquor License
application be set for Publication
and Public Hearing on Application
No. 2022-046 Mr. Pacheco
seconded the motion.
Motion carried 7.0
I.
REQUEST FOR TEMPORARY LIQUOR LICENSE
Motion:
1. HAOLE GIRL ISLAND SWEETS, LLC dba STREET BURGER: Application No. 2022-
Mr. Gibson moved to approve
047 was filed on February 25, 2022, by Haole Girl Island Sweets, LLC dba
Request for Temporary Liquor
Street Burger for a temporary Restaurant General (A) No Live Music & No
License for HAOLE GIRL ISLAND
Dancing to operate Double Rainbow Inc. dba Street Burger, License No. 2G-
SWEETS, LLC dba STREET BURGER
028 located at 4-369 Kuhio Highway, Kapaa, Kauai, Hawaii.
Application No. 2022-047. Mr.
Pacheco seconded the motion.
Chair Crowell asked is this to start operating, today, or tomorrow is that the idea.
Motion carried 7.0
Director Sandoval replied, yes, it's immediately to assume the existing license until their
license is gone through the public hearing process.
Chair Crowell noted it's been moved and seconded to approve the Temporary Liquor
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License Request for HAOLE GIRL ISLAND SWEETS, LLC dba STREET BURGER.
No further discussion. Temporary Liquor License has been approved.
J.
EXTENSION IN TIME TO EXERCISE LIQUOR LICENSE REQUEST
1. POINT HB LLC. dba HANALEI MARKET: Request for extension in time for a one
time period of 6 months to exercise Application No. 2021-025 which was
approved on August 12, 2021.
Director Sandoval stated, this location was approved back in August 2021, they did not
activate their license within the time period. The time when it was received, it was in
excess of the time to request an extension. However, we're still operating up until the
25th under the emergency period which would allow for us to be a little lenient on the
timelines for this request. This is at the pleasure of the Commission to approve or deny
this request and it would only be done for one time to our understanding.
Chair Crowell asked for clarification whether HB Banks is the same as Harold Banks, V.
because application was signed by Harold Banks, 3rd
Mr. Banks replied yes, I go by HB.
Chair Crowell asked, if the extension is granted, how long is it good for.
Director Sandoval and Commissioner Nishimura replied, 6 months.
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Commissioner Nishimura asked, if the Commission has the authority to grant another 6-
month extension in the event Water Department Permit is not approved.
Director Sandoval referred to Commission Rules of 6-month extension that limits
renewal and noted the Commission has the authority to extend if it had to be done
again.
Commissioner Nishimura stated he investigated applicant' history and it's a little unfair
for applicant to be limited to one time 6-month extension since applicant cannot do his
improvements until he gets Water Department approval and that will limit him to one
time 6-month extension. In this case, he has all building permits and subcontractors in
line.
Commissioner Nishimitsu asked Mr. Banks, if the issues with the Department of Water is
resolved or if its ongoing.
Mr. Banks replied, we got the permit approved on February 22, 2022, and we will open
within 90 days and definitely open within a 6- month extension and everything is
approved.
Commissioner Shimabukuro asked Mr. Banks, the extension expired after the 6-month
period on February 12, 2022. Was there a reason why you didn't request for an
extension?
Mr. Banks replied, he emailed Mr. Herman on January 13, 2022, a letter to notify the
Department that he needed an extension, but he believed Commission was not alerted.
Director Sandoval stated, they had the information in the office it didn't make it onto
that agenda at that time. We are still in the time frame to be able to add it to this
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agenda due to the emergency period. If the emergency period expired, he would not
have made it in and wouldn't have been considered.
Commissioner Nishimura stated, Mr. Chair, I move that we grant the extension.
Commissioner Nishimitsu asked, when does the 6-month period begins.
Director Sandoval noted, today.
Chair Crowell noted, it's been moved and seconded to grant extension. No further
discussion. Extension approved.
Motion:
Mr. Banks thanked the Commission.
Mr. Nishimura moved to approve
request for the extension of the 6-
month to exercise Application No.
2021-025 POINT H B LLC. d ba
Hanalei Market's. Mr. Pacheco
seconded the motion
Motion Carried 7.0
K.
UPDATE, DISCUSSION, AND POSSIBLE ACTION ON MEETING PROCEEDINGS (Continued
Motion:
from 2/24/2022)
Mr. Nishimura moved to approved
Commissioners continued discussion regarding possible dates and times to move
Liquor Control Commission
Commission meetings and take into consideration Commissioners' and Boards and
meetings to the 2nd and 4tn
Commission staff schedule. Director Sandoval stated, Liquor Department will adjust
Wednesday starting at 10:00 a.m.
their scheduling to accommodate whatever is decided and that decision need to be
and beginning July 13, 2022.
made today because the Department are holding off the public hearing and they don't
Ms. Nishimitsu seconded the
know what to publish as to meeting dates. Commission discussed at length and
motion.
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concluded that the 2nd and 41" Wednesday at 10:00 am would be a good day to move
Liquor Control Commission meeting and it would start July 13, 2022. There was further
Motion carried 7.0
discussion regarding virtual and in person meeting.
Chair Crowell noted it's been moved and seconded to move Commission meetings to
the 2nd and 4t" Wednesdays at 10:00 a.m. starting July 13, 2022.
L.
EXECUTIVE SESSION:
No Action
Pursuant to HRS §92-4, §92-5(a)(4), §92-9(a)(1-4) and (b), the purpose of this Executive
Session is for Commission to approve or amend the Executive Session Minutes, and to
consult with its attorney on questions and issues pertaining to the Commission's powers,
duties, privileges, immunities, and liabilities as they may relate to this item.
M.
A. RETURN TO OPEN SESSION
No Action
N.
A. ROLL CALL FOR THE RETURN TO OPEN SESSION
No Action
O.
A. RATIFY THE ACTIONS TAKEN IN EXECUTIVE SESSION
No Action
P.
A. EXECUTIVE SESSION:
No Action
Pursuant to HRS §92-7(a), the Commission may, when deemed necessary, hold an
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)
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Q.
ADJOURNMENT
Motion:
Pursuant to HRS § 92-7.5, at the time the board packet is distributed to the Liquor
Mr. Pacheco moved to adjourn the
Control Commission, the board packet will be available for inspection at the Liquor
meeting. Mr. Gibson seconded the
Control Commission's office (Pi'ikoi Building 4444 Rice Street, Suite 300, Uhu'e, Hawai'i
motion.
96766). Please contact at (808) 241-4966 or liquor@kauai.gov to request access.
Motion carried 7.0
Administrator Ching stated, this is Commissioner Gibson last meeting and wanted to
recognize him. He was the chair last year and he was instrumental in the whole process
doing the job description, generating all the tools for evaluating applicants and essays. It
was a very lengthy and detailed process, and he certainly was a wonderful chair and
moving the whole Commission. Ms. Ching thanked Commissioner Gibson for all his work
and efforts and how much he is appreciated and wished him well. Everyone thanked
Commissioner Gibson.
Submitted by:
Mary Ann Ornellas, Liquor Clerical Assistant
Reviewed and Approved by:
() Approved as circulated.
() Approved with amendments. See minutes of meeting.
Dee Crowell, Chair