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Minutes - Beverage Licensing - 10/19/2005CITY OF BOULDER BEVERAGES LICENSING AUTHORITY ***MINUTES*** WEDNESDAY, OCTOBER 19, 2005,1:00 P.M. BOULDER CITY COUNCIL CHAMBERS MUNICIPAL BUILDING - 2nd FLOOR 1777 BROADWAY, BOULDER, COLORADO NAME OF BOARD/COMMISSION: Beverages Licensing Authority DATE OF MEETING: October 19, 2005 NAME/TELEPHONE OF PERSON PREPARING SUMMARY: Mishawn J. Cook - Licensing Clerk (303-441-3010) NAMES OF MEMBERS, STAFF, AND INVITED GUESTS PRESENT: Board Members: Priscilla Corielle (present from Agenda item 2 through the end of hearing), Peter Gowen, Cam Marshall, Tim McMurray, and Brett Parnes. Staff Present: Sandra Llanes, Assistant City Attorney, and Mishawn Cook, Licensing Clerk. QUASI-NDICIAL MEETING OUTLINE OF AGENDA 1. Roll Call of Beverages Licensing Authority (BLA) Roll call was taken. Four Authority members were present. There was a quorum. Approval of Minutes - September 21, 2005 Mishawn Cook noted for the Authority that she had been spelling Thomas Mattson's name wrong (attorney for the Player's Club), and as such, she had correct the spelling in the copy of the 9/21 /OS BLA minutes that Chair Gowen will sign today if approved. Member Parnes moved, seconded by Mazshall, to approve the minutes as submitted. Motion approved 4:0. Approval of Hearing Conductor Assignments for this hearing Chair Gowen requested public input on the hearing conductor assignments, and hearing none, opened this matter to a vote. Member Marshall moved, seconded by Parnes, to accept the hearing wnductor assignments as listed. Motion approved 4:0. At this time in the hearing, Member Corielle arrived and joined the Authority members. 2. Matters from the Boulder Police Department (BPD). Officer Cazlene Hofrnann from the BPD appeazed and stated that the BPD just completed a weekend full of compliance checks; conducted checks at 41 licensed premises, with 10 10/19/OS BLA Final Minutes Page 1 of 8 violations. Officer Hofinann stated that the BPD still has SO licensed premise inspections to complete before the end of 2005, but she cannot promise the Authority that she can complete all of those inspections this year because of lack of time. Officer Hofinann stated that the BPD LESS classes are going fine, that the BPD is thinking revamping the class, and that the BPD is wondering if such class will continue under BPD's purview as some of the City's alcohol subcommittees are suggesting that the class should be handled elsewhere. One of the changes to the class that the BPD is thinking of instituting for the class is a test to be taken at the end of each session, in which you have to answer 80% or more of the answers correctly, or the class will need to be retaken. The Authority members generally, and Member Marshall in particulaz, expressed that a test for the class is a good idea. 3. Matters from the Responsible Hospitality Group (RHG). Mishawn Cook reported to the Authority that she had received a phone voice mail message just before the hearing from Beth Smith, Chair of RHG, in which Ms. Smith asked her to relay to the Authority that conflicting personal time commitments did not allow attendance at today's hearing, but that Ms. Smith planned to attend next month's hearing to introduce the new chair of the RHG to the Authority. 4. Renewal Hearing for R2DJ, Inc. d/b/a The Player's Club at 1143 13~h Street fora non- automatic renewal of ahotel-restaurant type liquor license expiring on October 2, 2005. Member Gowen was the designated hearing conductor for this matter. Thomas Mattson, Esq., attorney for landlord, appeared on behalf of the licensee as landlord's and licensee's interests in this matter are aligned. Mishawn Cook advised the Authority that materials, including state and city renewal applications not available at the time of packet printing, were provided to all BLA members, that same materials would be entered as an agenda exhibit, and that a packet of such materials had also been provided to Mr. Mattson. Mr. Mattson agreed to waive reading of procedures. Mr. Mattson stated that it was the intention of R2DJ, Inc. to reopen on a limited basis to comply with the 25% meal requirement dictated for hotel-restaurant licenses, in anticipation of a new tenant or the sale of the building to a new owner, thus allowing transfer of the liquor license. Chair Gowen asked Mr. Mattson if the reopened premise would have the same management team, and Mr. Mattson replied that it would be under the same ownership, but would have an entirely new management team, perhaps with Mr. Mattson acting as the registered manager if necessary. Mr. Mattson commented that his wish is to involve the neighbors so that their late night baz concerns aze allayed, and that his hope is to have the space taken over by the Round the Corner restaurant, now known as Training Table. Member Mazshall asked Mishawn Cook about the contents of the exhibit packet provided to the BLA, especially an email indicating that R2DJ, Inc. filed for dissolution for their corporation on January 28, 2005, and Ms. Cook replied that this was newly provided information for her also. Member McMurray, Corielle, and Mazshall commented that this applicant seemed ill-prepared for this hearing, since this license if renewed, would in fact be a whole new restaurant. Mr. Mattson asked if the Authority would grant him a continuance until next month to allow him to complete BLA requested tasks; among them, find a 10/19/05 BLA Final Minutes Page 2 of 8 registered manager, provide a new menu, provide a layout for the restaurant, and file articles of reinstatement for the corporate licensee. Lisa Spaulding, Jan Otto, Terry Rodgers, and Eleanor DePew provided public comment against this renewal. Ms. Spaulding provided to the Authority a copy of the filed Articles of Dissolution for R2DJ, Inc. from the Colorado Secretary of State's office which was accepted by the Authority as an agenda exhibit and a copy of which was provided to Mr. Mattson. Sandra Llanes gave the Authority her preliminary opinion and the City Attorney Office position that if there is no corporation, then there is no applicant for renewal. As the applicant had eazlier requested a continuance, Chair Gowen then moved to approve applicant's request for a continuance, and Gowen called for a second. Hearing none, Chair Gowen stated that the motion for continuance died for lack of a second. Member Paznes moved to deny the renewal of this license, seconded by Corielle. Member Marshall then offered Authority findings for this denial as: (i) there would be unapproved changes in the character of the establishment in the form, among other items, changes to management and (ii) he noted public comment made in this hearing by neighbors against license renewal as to their lack of needs and desires for a renewal. Chair Gowen also added a third Authority finding as (iii) the Authority's acknowledgement of the City Attorney Office's position that dissolution of corporate licensee resulted in lack of a proper applicant for renewal. Member Parnes added a fourth Authority finding as (iv) prior history of this licensee. Motion for denial of the renewal of this hotel-restaurant license carried 5:0. 5. Public Hearing and Consideration of a Septe~tber 1, 2005 application from Sizzling Shanghai, Inc. d/b/a Ping's Favorite, 1635 28 Street, Jun Liu, 8701 East Briarwood Boulevard, Centennial, CO, President, for a Transfer of Ownership of a Hotel- Restaurant type liquor license. Member Mazshall was the designated hearing conductor. Jun Liu, president of the applicant corporation, was sworn in, testified about this application, and confirmed under oath completion of required posting fora 10 day period of the premise. There were no ex-parte communications or conflicts of interest reported by Authority members. No third parties requested interested party status when disclosure was requested. Noting that Ms. Liu's background check was cleaz, Chair Gowen stated that in his estimation this transfer of ownership should be approved, and other Authority members concurred. Lawrence Brown, customer of this restaurant, provided public comment in favor of the application approval. Chair Gowen moved, seconded by Corielle, to approve this application for transfer of ownership of ahotel-restaurant liquor license. Motion approved 5:0. 6. Public Hearing and Consideration of a September 1, 2005 application from Akiyama, Inc. d/b/a Akiyama Sushi Bar and Grill, 6525 Gunpark Drive, Suite 330, Zhu Harris, President, and Todd Harris, Secretary, both of 1132 Chestnut Drive, Longmont, CO, for a New Hotel-Restaurant type liquor license. Member McMurray was the designated hearing conductor for this matter. Diane Goldenstein, Esq. appeared as attorney for this applicant. Todd Harris, secretary of this applicant corporation, was sworn in, testified about this application, and confirmed completion under oath of the required 10 day posting of the premises. Ms. Goldenstein waived the reading of the procedures on behalf of her client. There were no ex-parte 10/19/05 BLA Final Minutes Page 3 of 8 communications or conflicts of interest reported by the Authority members. No third parties requested interested party status when disclosure was requested. Max Scott, of Oedipus, Inc., was sworn in and summarized for the Authority the needs and desires petition results contained in the BLA's hearing packet. Chair Gowen noted less than 2% opposition to the issuance of this license in the petition results, which Mr. Scott confirmed. No public comment was provided to the Authority. Chair Gowen moved, seconded by Parnes, to approve this application for a new hotel-restaurant liquor license. Motion approved 5:0. 7. Public Hearing and Consideration of a September 2, 2005 application from Service America Corporation d/b/a Centerplate, University of Colorado's Folsom Field-West Stands, Folsom and Colorado, Volume Services America, Inc., 201 East Broad Street, Spartanburg, SC, 100% Stockholder, for a Modification to aHotel-Restaurant type liquor license. Chair Gowen advised that it may be beneficial to merge agenda items 7 and 8 as both applications are from the same applicant and at the same location. Adele Reester, Esq., attorney for applicant, advised that she had no objection to hearing agenda items 7 and 8 together. Member Paznes and Corielle stated that they had discussed who should act as hearing conductor for these matters and determined that Pames would act as hearing conductor for both items. See agenda item 8 below for complete minutes of both items. 8. Public Hearing and Consideration of a September 2, 2005 application from Service America Corporation d/b/a Centerplate, University of Colorado's Folsom Field-East Stands, Folsom and Colorado, Volume Services America, Inc., 201 East Broad Street, Spartanburg, SC, 100% Stockholder, for a Modification to aHotel-Restaurant type liquor license. Member Parnes was the assigned hearing conductors for agenda items 7 and 8. Adele Reester, Esq. appeazed as attorney for the applicant. Chair Gowen disclosed to the Authority that in 1997 hehad an of-counsel relationship with the Bernazd, Lyons, Gaddis, and Kahn, Ms. Reester's law firm, which lasted fora 9 month period. There was no objection to Chair Gowen's participation in this hearing by other Authority members or by Ms. Reester. No . other conflicts of interest or ex-parte communications were disclosed by the Authority members. Ms. Reester waived the reading of procedures on her client's behalf. Ms. Reester introduced a seating chart of Folsom Field that was accepted by the Authority as an exhibit. Ms. Reester also provided a signed Affidavit of Posting for both the East and West stands and provided two photos showing posting at the East and West Stands which were accepted by the Authority as exhibits. Ms. Reester showed a Power Point presentation to explain the modifications expanding the current hotel-restaurant licenses at the East and West Stands at Folsom Field. Ms. Reester requested confirmation that both applications and both petitions were accepted into the hearing record and Member Parnes confirmed that they were. Max Scott, of Oedipus, Inc., was sworn in and summarized the needs and desires petition results for each of these applications. John Burianek, senior associate athletic director at CU, was swom in and testified as to CU's request of Centerplate to file these modifications. Jaana Bowers, neighbor in the designated neighborhood, and Heather Harding, business owner in the designated neighborhood, were both swom in and testified in favor of approval of these two modifications. Donald (Dak) Cazbone, general manager for Centerplate at Invesco Field at Mile High, was sworn in and testified as to Centerplate's policies and 10/19/05 BLA Final Minutes Page 4 of 8 procedures for alcohol service at large outdoor stadiums. Melissa Matthews, general manager for Centerplate at CU, was sworn in, testified as to this application, and confirmed completion of the required 10 day posting of the premises at both the East and West stands of Folsom Field. Ms. Reester requested that a copy Centerplate's alcohol service policy (included in the Coors Events Conference Center application) also be entered into the record as an exhibit for these two applications, and the Authority accepted entering such exhibit. Member Corielle asked that Officer Carlene Hofinann address a question on if compliance checks are conducted by BPD during CU games, and in reply, Officer Hofinann replied that, due to the ticket price, the BPD was unable to conduct those compliance checks. There was no other public comment provided to the Authority on these matters. Chair Gowen moved, seconded by McMurray, to approve the application in agenda item 7 to modify the hotel-restaurant liquor license at West Stands at Folsom Field. Motion approved 5:0. Chair Gowen moved, seconded by Parnes, to approve the application in agenda item 8 to modify the hotel-restaurant liquor license at East Stands at Folsom Field. Motion approved 5:0. 9. Public Hearing and Consideration of a September 2, 2005 application from Service America Corporation d/b/a Centerplate, University of Colorado, 401 UCB Coors Event Conference Center, Volume Services America, Inc., 201 East Broad Street, Spartanburg, SC, 100% Stockholder, for a New Hotel-Restaurant type liquor license. Chair Gowen was the designated hearing conductor. Chair Gowen noted for the record that the same attorney and that the same applicant was still present before the Authority, that all Centerplate's witnesses remained under oath, and that Gowen's the conflict of interest disclosed during agenda item 8 herein was still effective. Further, Chair Gowen stated that he assumed that, as no objection was raised to his participation in agenda items 7 and 8, that the same would be true for this matter. No third parties requested interested party status of the Authority in this matter. No other ex-parte communications or conflicts of interests were disclosed by the Authority members. Ms. Reester asked that the testimonies of Donald Cazbone, Melissa Matthews, John Burianek, and Max Scott given for agenda items 7 and 8 also be entered into the record for this matter, so that those witnesses would not have to duplicate their testimony for this matter. However, Ms. Reester advised that Ms. Matthews, Mr. Burianek, and Mr. Scott would give some new testimony related to this application. Max Scott, of Oedipus, Inc., summarized the needs and desires petitioning results for this new license application. John Burianek from CU testified that this application was filed at the request of CU by Centerplate, CU's current food and beverage concessionaire. Melissa Matthews testified as to the reasoning for application for a new hotel-restaurant liquor license in arena and the conference rooms of this facility. Member McMurray asked Officer Carlene Hofinann if compliance checks were completed, and Officer Hofinann stated that, due to ticket cost, the BPD did not conduct compliance checks at this premise. Chair Gowen asked if anything prevented the BPD from addressing violations or writing tickets for alcohol offenses not resulting from compliance checks, and Officer Hofmann stated that the BPD was able to address such violations. Ms. Reester commented that provided all exhibits were incorporated into the record, including without limitation, an affidavit of posting and two photos showing posting were accepted as exhibits, her case was concluded. No other public comment was provided to the Authority in this matter. Member Marshall moved, 10/19/05 BLA Final Minutes Page 5 of 8 seconded by McMurray, to approve this application for a new hotel-restaurant license. Motion approved 5:0. 10. Public Hearing and Consideration of a September 2, 2005 application from WMG Enterprises, Inc. d/b/a D'Napoli Ristorante, 835 Walnut Street, William Gregorak, 2011 Braeburn Court, Longmont, CO, President, for a Transfer of Ownership of a Hotel-Restaurant type liquor license. Member Mazshall was the designated hearing conductor. William Gregorak, president of the corporate applicant, was sworn in, testified about this application, and confirmed under oath completion of the required 10 day posting of the premise. Hearing procedures were read to this applicant. No ex-parte communications or conflicts of interest were disclosed by the Authority members. No third parties requested interested party status of the Authority. Chair Gowen noted for the record that the applicant's background check was clear, which is the focus of transfer of ownership applications. Liz Neapolitan, co-owner of transferor restaurant of the liquor license, provided public comment in favor of application approva. No other public comment was provided to the Authority. Member Parnes moved, seconded by Corielle, to approve this application for transfer of ownership of ahotel-restaurant liquor license. Motion approved 5:0. 11. Public Hearing and Consideration of a September 6, 2005 application from Saldana Corporation "L.L.C." d/b/a Jazzy's Crab Shack, 2719 Iris Avenue, Francisco Saldana, 11898 Begole Circle, Golden, CO, Owner, for a Transfer of Ownership of a Hotel- Restaurant type liquor license. Member McMurray was the designated hearing conductor. Member McMurray disclosed that his residence was located close to this restaurant. Sandra Llanes asked if McMurray felt that the location of his residence would result in an inability to remain impartial in this matter, and McMurray replied that he did not. There were no objections to Member McMun•ay's participation in this matter. Hearing procedures were read to this applicant. No other conflicts of interest or ex-parte communications were disclosed by Authority members. Francisco Saldana, manager of the LLC applicant, was sworn in, testified about this application, and confirmed completion under oath of the required 10 day posting period at the premise. Chair Gowen advised that he had no difficulty determining that the extension of a dividing wall between the dining room and the baz area is anon-material change, which would not warrant a complete modification proceeding before the Authority. No other Authority members expressed dissent to Gowen, therefore, there was an Authority finding ofnon-material modification to premise. No public comment was provided to Authority. Chair Gowen moved, seconded by Marshall, to approve this application for a transfer of ownership of ahotel-restaurant liquor license. Motion approved 5:0. 12. Matters from the Licensing Clerk. A) Request for Authority Direction by Licensing Clerk Mishawn Cook provided documentation and requested direction from the Authority on 3 matters: (i) Kabili, LLC d/b/a Seven's change to their final diagram, (ii) Casarrubias, Inc. d/b/a Trattoria on Peazl's question as to if removal of a temporary'/o height wall in their dining room (which would not increase capacity or change liquor service in the main) would be a material change, and (iii) the alleged violation by Ace Discount Liquors' owner during 10/19/05 BLA Final Minutes Page 6 of 8 the transfer application process considering issuance of a temporary license to the new owner which would not occur until the former owner appears in a show cause hearing before the Authority. The Authority reviewed Seven's change in final diagam and the Authority determined for the record that Kabili, LLC's appearance before them was unnecessary, but that they would like Seven's newest diagram confirmed to be final and included in the file. The Authority reviewed Trattoria on Peazl's diagram as to removal of the partial wall and the Authority determined for the record by members' unanimous consent that Casarrubias, Inc.'s removal of the wall is anon-material modification which would not require appearance before them. The Authority concurred with Ms. Cook's decision to decline to issue a temporary license until after the Show Cause hearing for Ace Discount Liquors and, if the BPD could provide the necessary show cause documents to Ms. Cook in time, to add such show cause to the agenda of the November 16, 2005 BLA hearing. B) Information on Temporary License issued Mishawn Cook reported to the Authority that on September 30, 2005 she issued a temporary license in the course of a transfer of ownership for Rudi's Restaurant and that their transfer application would be heard by the Authority at the November 16, 2005 hearing. C) Information on LLC ownership change Mishawn Cook reported to the Authority that she has received the necessary corporate assets and officer change documents fora 100% ownership change for World Market, LLC d/b/a Fiasco's Mexican Grill at 2690 Baseline Road. D) Updates from Licensing Clerk Mishawn Cook reviewed materials with the Authority included their BLA hearing packets detailing the difference between Private Parties (generally not requiring a state permit) vs. Special Event (generally requiring a state permit). Mishawn Cook also provided and reviewed a document on illegal gambling from the state. Mishawn Cook noted the inclusion in the BLA's hearing packet of emails on drafting language for selection of suspension dates, with such language now included in the text of the liquor licensing website and the show cause notice. Ms. Cook also informed the Authority that 10 show causes aze expected soon, and she has heard that 2 will be without stipulations. Member Mazshall commented that he felt hearing show causes first in the order on an agenda, then hearing applications after show causes is beneficial, and Ms. Cook confirmed she would follow that direction. 13. Matters from the Assistant City Attorney. In response to a question by Member Corielle from last month's hearing, Sandra Llanes advised that she had reseazched and discussed with the licensing supervisor and the enforcement supervisor at that State Liquor Enforcement Division, various violations based on conduct of establishment. Ms. Llanes' summarized case law related to these types of violations and stated that criminal violations aze offensive per se. Ms. Llanes offered an article, cited as Colorado Lawyer dated September 2000, that was instructive. Ms. Llanes also advised that the State Division conducts trainings for local beverage licensing authority 10/19/05 BLA Final Minutes Page 7 of 8 members and that the State could conduct training for Boulder. Chair Gowen advised that he thought it was a good idea to wait until all members were appointed (or re-appointed) in 2006, and other Authority members concurred with this timing of any State training. 14. Matters from the Chair and Members of the Authority. a. Debriefing from this hearing. Chair Gowen stated that during today's hearing there was one instance when a person who was making public comment, instead entered into questioning the Authority, thereby attempting to enter them in a debate, and Gowen felt that the Authority's role was to receive comment and information, not to answer questions better directed to an applicant. Other Authority members agreed with his comment and his handling of the issue. b. Other Matters from the Chair and Members of the Authority. Member McMurray reminded the Authority that he would not be in attendance at the November 16, 2005 BLA hearing. ADJOURNMENT Chair Gowen asked other Authority members if there was any other business for today's hearing, and hearing none, the hearing was adjourned at 4:37 PM. TIME AND LOCATION OF ANY FUTURE MEETINGS, COMMITTEES OR SPECIAL HEARINGS 1:00 PM - 3'a Wednesday of Every Month in City Council Chambers, except December 2005 meeting shall be on the second Wednesday of that month. Attest: s.- Mishawn J. Cook, Licensing Clerk Approved: Peter Gow ,Chair 10/19/05 BLA Final Minutes Page 8 of 8