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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. Liquor Control Commission Open Session March 10, 2022 Page 2 SUBJECT DISCUSSION ACTION 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 Liquor Control Commission Open Session March 10, 2022 Page 3 SUBJECT DISCUSSION ACTION 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 Liquor Control Commission Open Session March 10, 2022 Page 4 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. Liquor Control Commission Open Session March 10, 2022 Page 5 SUBJECT DISCUSSION ACTION 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 Liquor Control Commission Open Session March 10, 2022 Page 6 SUBJECT DISCUSSION ACTION 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 Liquor Control Commission Open Session March 10, 2022 Page 7 SUBJECT DISCUSSION ACTION 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. Liquor Control Commission Open Session March 10, 2022 Page 8 SUBJECT DISCUSSION ACTION 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. Liquor Control Commission Open Session March 10, 2022 Page 9 SUBJECT DISCUSSION ACTION 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 Liquor Control Commission Open Session March 10, 2022 Page 10 SUBJECT DISCUSSION 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 Liquor Control Commission Open Session March 10, 2022 Page 1 1 SUBJECT DISCUSSION ACTION 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. Liquor Control Commission Open Session March 10, 2022 Page 12 SUBJECT DISCUSSION ACTION 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 Liquor Control Commission Open Session March 10, 2022 Page 13 SUBJECT DISCUSSION ACTION 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. Liquor Control Commission Open Session March 10, 2022 Page 14 SUBJECT DISCUSSION ACTION 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) Liquor Control Commission Open Session March 10, 2022 Page 15 SUBJECT DISCUSSION ACTION 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