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Minutes - Beverage Licensing - 11/16/2005CITY OF BOULDER BEVERAGES LICENSING AUTHORITY ***MINUTES*** WEDNESDAY, NOVEMBER 16, 2005, 1:00 P.M. BOULDER CITY COUNCIL CFIADZBERS MUNICIPAL BUILDING - 2"d FLOOR 1777 BROADWAY, BOULDER, COLORADO NAME OF BOARD/COMMISSION: Beverages Licensing Authority DATE OF MEETING: November ] 6, 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 (arrived during agenda item 4, and was present from that time through the end of hearing), Peter Gowen, Cam Marshall, and Brett Parnes. Staff Present: Sandra Llanes, Assistant City Attorney, Ariel Calonne, City Attorney, and Mishawn Cook, Licensing Clerk. QUASI-JUDICIAL MEETING OUTLINE OF AGENDA 1. Roll Call of Beverages Licensing Authority (BLA) Roll call was taken. Three Authority members were present. There was a quorum. Member McMurray was absent. Member Corielle joined the meeting during agenda item 4 and was present from agenda item 4 through the end of the hearing. Approval of Minutes - October 19, 2005 Mishawn Cook revisited this agenda item after addressing agenda item 3. Authority members provided no comments ar suggested changes to these minutes. Member Parnes moved, seconded by Marshall, to approve the minutes as drafted. Motion approved 3:0. Approval of Hearing Conductor Assignments for this hearing Mishawn Cook revisited this agenda item after addressing agenda item 3. No pubtic comment was received concerning these assignments. Mishawn Cook noted that the assignment of agenda item 6 would change from Member Corielle to Chair Gowen per procedures, and Chair Gowen commented that this change would only occur if Member Corielle did not show up before the Authority's hearing of agenda item 6. Member Mazshall moved, seconded by Parnes, to approve the hearing conductor assignments on today's agenda. Motion approved 3:0. 11/16/OS BLA Final Minutes Page 1 of 7 2. Matters from the Boulder Police Department (BPD). Officer Cazlene Hofinann and Officer D.J. Smith both from BPD appeared. Officer Hofinann advised that the BPD just completed a round of 25 compliance checks with 4 violations. Officer Hofrnann reported that none of those 4 violators looked at IDs during those checks. Officer Hofmann advised the Authority that she recently completed 2 special LESS classes for Zolo Grill (whose employees were not trained by BPD) and for the Boulder Broker Inn. Officer Hofmann advised the Authority that next month's BLA hearing will be her last hearing, as BPD is making the alcohol officer position a full time position and she has not taken that job, but instead she has decided to remain an officer on University Hill. Member Marshall asked who the BPD alcohol officer is expected to be, and Officer Hofmann answered that the position would be posted and that such officer would have to go through a full BPD interview, but she anticipated that she could advise the BLA as to which officer would fill the position at the next BLA hearing on December 14, 2005. 3. Matters from the Responsible Hospitality Group (RHG). Exiting RHG Chair, Beth Smith, advised the Authority that this was her last official BLA hearing, and Ms. Smith introduced Mark Karpowich, co-owner of Harpo's, who will be taking over the Chairmanship of RHG. Ms. Smith advised that Mr. Katpowich will attend BLA hearings each month. Chair Gowen welcomed Mr. Karpowich. Ms. Smith pointed out to Authority that several recent violations have occurred at licensed establishments, and none of those establishments are RHG members, Member Mazshall personally, and on behalf of BLA, expressed his thanks for Beth Smith's enthusiastic contributions to the Authority's proceedings and stated that Ms. Smith will be missed by all. At this time in the hearing, Mishawn Cook advised Authority that she had inadvertently skipped a portion of agenda item 1, and as such, would need to return to that agenda item. 4. Special Matter on BLA Questions for Chair(s) of Policy and Regulations Subcommittee concerning recommendations and proposed changes to BLA procedures by City Attorney's Office (CAO). Ariel Calonne, City Attorney, and Sandra Llanes, Assistant City Attorney, appeazed regarding this matter. Mr. Calonne directed the Authority's attention to 4 collections of materials provided to the Authority at this hearing: (i) Email correspondence from CAO sent electronically to BLA before today's hearing including the CAO website link for the all of the below mentioned documents (emails to be marked as agenda 4, exhibit 1), (ii) Disposition Table, Resolution for City Council's adoption of Rules, and redlined Amendment to the Boulder Code's pertinent section, (iii) Public Discussion Draft of City of Boulder BLA Rules of Procedure, and (iv) hard copy of the Power Point presentation to be given by CAO today on this subject (above items [ii], [iii], and [iv] provided to the Authority at today's hearing will be marked as agenda 4, exhibit 2). Ariel Calonne provided the above materials and presented this topic following the Power Point document. Mr. Calonne commented that these materials will allow the City Council to interact with BLA proceedings in a meaningful way, but Mr. Calonne stated that it remains for the BLA to create supplemental rules for themselves. Mr. Calonne stated that these revisions were designed to be comprehensive, expansive for the Authority's powers, and meant to embody 11/16/OS BLA Final Minutes Page 2 of 7 State Law and suggestions from State Licensing Officials, particulazly suggestions made during Sandra Llanes' and Ariel Calonne's meeting last summer with Matt Cook from the State Liquor Enforcement Division concerning the provisions of HB 1223 which was not passed. Ariel Calonne commented that he has zero hesitancy to have a judge decide when there are grey areas in the law. Chair Gowen commented that this was good to know from Mr. Calonne. Mr. Calonne stated that he looked forwazd to BLA's comments on these materials and involvement with City Council on this matter. Chair Gowen noted for the record that at this time in the hearing that Member Corielle had joined the proceedings. Ariel Calonne reviewed the materials concerning azeas in Boulder Rules which have been missing in the past, but that have always been addressed in state law. Mr. Calonne then handed over presentation to Sandra Llanes for more detailed review of those matters. Ms. Llanes, Mr. Calonne, and the Authority discussed the following points of the draft Rules: 1) neighborhood boundaries (both Mr. Calonne and Ms. Llanes stated that it was acceptable for the BLA to set boundaries outside of Boulder City Limits ifrequired by the location of a premise), 2) petition forms approval and acceptable content, 3) Party in Interest definition (the BLA questioned if "adult" in this definition was meant to be age 18 or 21), 4) undue concentration of taverns/retail liquor stores, 5) agreed upon conditions of license approval, 6) license renewal requirements and preserving the ability for BLA to set licensees for non-administrative renewal in the Rules, 7) BLA consideration of substantial or material changes in structure/character/usage concerning transfer of ownership with the need for modification review first if there are substantial premise changes (BLA and CAO discussed supplemental BLA rules or possibly a State position letter to clarify material or substantial changes), 8) City post license approval inspections and records inspection rights, and 9) deletion of default BLA approval motion from the Rules. Mr. Calonne commented that the result of the City Council meeting on November 29, 2005 would determine next steps. If the City Council endorsed going forwazd, Mr. Calonne would foresee receiving and collating comments from the broad community, the State, and the Authority. Mr. Calonne stated that Ms. Llanes would be working with the BLA to draft and adopt BLA's supplemental Rules, and he encouraged the Authority to appoint a representative from the BLA to attend the above City Council meeting on November 29, 2005. Mr. Calonne suggested sending comments to the CAO website, not necessarily before the City Council meeting, but he did again encourage a member of the Authority to attend such meeting. Chair Gowen then called for brief public comments on this matter. Both Lisa Spaulding and Jan Otto provided public comments in favor of the draft BLA Rules of Procedure changes. Member Marshall asked that the Chair set aside time at the end of today's hearing to discuss the initial impressions of the Authority members of this draft. 5. Show Cause Hearing concerning an October 14, 2005 violation and whether the Retail Liquor Store type liquor license held by MCY Enterprises, Inc. d/b/a Ace Discount Liquors, 2991 Pearl Street, should be suspended or revoked. Member Parnes was the designated hearing conductor. Bob Keatley appeared on behalf of the BPD, advised the Authority that a stipulation had been reached, and made a request to make a formal amendment to the Show Cause Affidavit (on page 2, in 4`s paragraph from the bottom of that page, in the 4`h sentence in the middle} to change "Oury" to "Hall". J.Y. Kang, Esq. represented MCY Enterprises, Inc. and its sole shazeholder, Choon Kim. Choon 11/16/05 BLA Final Minutes Page 3 of 7 Kim was sworn in for this matter. J.Y. Kang agreed to the stipulate to the facts contained in the Show Cause Notice on behalf of his client and Mr. Kang agreed to waive hearing procedures reading. Member Mazshall moved, seconded by Corielle, to accept the stipulation to facts. Motion approved 4:0. No conflicts of interest or ex-parte communications were reported by the Authority members. Mr. Kang brought to the attention of the Authority a summary with certificates of training for licensee employees. Such materials were provided to the Authority members by the Licensing Clerk and were accepted as an exhibit to be mazked agenda 5, exhibit 1. Jimmy Baker, the licensee's store manager and the clerk that sold to the minor in this instance, was sworn in and testified as to mitigation about training procedures and an employee manual. Mr. Kang outlined community involvement and confiscation of fake IDs at licensee's establishment J. Y. Kang advised the Authority that a transfer of ownership is in process for this premise with a temporary license is pending the resolution of violation. J. Y. Kang advised that he was prepared today with supporting financial records to allow calculation of a fine in lieu for this violation, and Mr. Kang requested of the Authority that his client be allowed to pay such fine in lieu of days served. Chair Gowen noted substantial mitigation and lack of aggravating factors with other Authority members concurring. Member Mazshall moved, seconded by Parnes, that the penalty for this violation be set at 2 days served with 7 days in abeyance, and that a fine in lieu be accepted for the 2 days served. Motion approved 4:0. 6. Public Hearing and Consideration of a September 30, 2005 application from CJ Roberts Inc, LLC d/b/a Rudi's Restaurant, 4720 Table Mesa Drive, Unit C 100, Christopher Roberts, 1675 West SS` Avenue, Unit 206, Denver, CO, Owner, for a Transfer of Ownership of a Beer and Wine type liquor license. Member Corielle was the designated hearing conductor and Corielle read hearing procedures to this applicant. Christopher Roberts, owner of applicant LLC, was sworn in, confirmed posting under oath for the required period of 10 days, and testified in this matter. No third parties requested interested party status of the Authority. No conflicts of interest or ex-parte communications were reported by the Authority members. Mishawn Cook advised the Authority that a location map was provided to them at today's hearing, which would be entered as an exhibit to be marked as agenda 6, exhibit 1. Lisa Spaulding provided public comment in this matter. Chair Gowen moved, seconded by Parnes, to approve this transfer of ownership of the Beer and Wine liquor license. Motion approved 4:0. 7. Matters from the Licensing Clerk. A) Set neighborhood boundaries for the December 14, 2005 BLA hearing. Applicant: Tortilleria El Rey Incorporated Trade Name: Tortilleria El Rey Location: 2966 Valmont Road, Boulder, CO, 80301 License Type: A New Hotel-Restaurant type liquor license Authority Defined Neighborhood 11/16/OS BLA Final Minutes Page 4 of 7 North Boundary: Iris to Diagonal Highway South Boundary: Arapahoe West Boundary: 19s' Street East Boundary: Foothills Parkway No public comment was received regazding this matter. Member Marshall moved, seconded by Corielle, to approve the neighborhood boundaries as described above. Motion approved 4:0. Applicant: Mazsue, LLC Trade Name: 4580 Restaurant Location: 4580 Broadway, Unit D-1, Boulder, CO 80304 License Type: A New Hotel-Restaurant type liquor license Authority Defined Neighborhood North Boundary: City Limits (west of Broadway) to US 36 (East to 28`" Street South Boundary: Norwood Extended West Boundary: City Limits East Boundary: US 36 (28a' Street Bypass) This applicant provided a map to the Authority with suggested boundaries which was also applicable for the below application for Uptown Wine Shop. This map was taken under advisement by the Authority and was accepted as an exhibit for both of the mentioned agenda items. Chair Gowen stated that the above boundaries would be the neighborhood boundaries for both the 4580 Broadway application and the Uptown Wine Shop application and other Authority members concurred. No further public comment was received. Member Marshall moved, seconded by Corielle, to approve the neighborhood boundaries as above described. Motion approved 4:0. Applicant: Uptown Wine, LLC Trade Name: Uptown Wine Shop Location: 4580 Broadway, Unit D-2, Boulder, CO 80304 License Type: A New Retail Liquor Store type liquor license Authority Defined Neighborhood North Boundary: City Limits (west of Broadway) to US 36 (East to 28a' Street) South Boundary: Norwood Extended 11/] 6/05 BLA Final Minutes Page 5 of 7 West Boundary.• City Limits East Boundary: US 36 (28`h Street Bypass) See above deliberations for 4580 Restaurant's neighborhood boundaries for a summary of Authority action on this matter. Applicant: SAP LLC Trade Name.• Tahona Location: 1035 Peazl Street, Suite 102, Boulder, CO 80302 License Type: New Hotel-Restaurant type liquor license Authority Defined Neighborhood North Boundary: Forest Extended South Boundary: Aurora West Boundary.• City Limits East Boundary: 28`h Street No public comment was received. Member Mazshall moved, seconded by Corielle, to approve the neighborhood boundaries as described above. Motion approved 4:0. B) Information on Temporary License issued Mishawn Cook advised the Authority that she would now issued a temporary license for Ace Discount Liquor and that the applicant's transfer application would be heazd at the December 14, 2005 BLA hearing. C) Updates and Publication from Licensing Clerk Mishawn Cook advised the Authority that the landlord, 1310 College Avenue Property, LLC, has applied for a transfer by operation of law of the hotel-restaurant license at the location commonly know as "The Rack". Member Corielle asked Ms. Cook about The Rack's status as a license under non-administrative renewal. Ms. Cook advised that she had anticipated setting The Rack to come in for a renewal hearing around February as their license expires in April, 2006, but if the transfer is approved by the Authority, further non- administrative renewal at that location would at the discretion of the Authority. In addition, Ms. Cook advised that the State Enforcement Officer had inspected The Rack premises discovering that they did not have an operational kitchen, but the premise has been re- inspected showing that they have a small, operation kitchen now. Ms. Cook noted that as The Rack holds ahotel-restaurant license, they must have an on-premise kitchen. Mishawn Cook advised the Authority that, if requested by the Policy and Regulations subcommittee, she would send a memo to all current Boulder licensees to let them know about the City Council public process involving alcohol issues. Mishawn Cook asked the 11 / 16/05 BLA Final Minutes Page 6 of 7 Authority to allow her to change the language on the City license renewal forms related to the requirement for a current and timely certificate of good standing from license renewal applicants, and the Authority agreed to such change in renewal language with possible follow-up to have a similaz change in BLA supplemental Rules. 8. Matters from the Assistant City Attorney. Sandra Llanes did not have any separate discussion items, but she did suggest that the Authority cazefully review the draft BLA Rules of Procedure, especially subsection 8-3-3. 9. Matters from the Chair and Members of the Authority. a. Debriefing from this hearing. Member Corielle apologized for her lateness to this hearing. There were no further comments made regazding this hearing by the Authority members. b. Other Matters from the Chair and Members of the Authority. The Authority members discussed agenda 4 about draft BLA Rules of Procedure; members concurred that they should review draft Rules more closely, and Chair Gowen reminded other Authority members that City Attorney Calonne expressed a preference for Authority to collect their comments on the draft to present them collectively. Sandra Llanes and the Authority members discussed creation of BLA supplemental Rules that would correspond with the final City Council passed Rules of Procedure and discussed the draft Rules of Procedure provisions. The Authority directed the Licensing Clerk to publish the trade names and establishment locations for which neighborhood boundaries will be set in the News from City Hall Sunday newspaper ad. The Authority members requested that Chair Gowen draft a comment letter to City Council on the draft Rules of Procedure to circulate to other Authority members and that the Chair be prepared to answer questions and attend (along with several Authority members who may attend) the public hearing on November 29, 2005. ADJOURNMENT Chair Gowen stated that the Authority should adjoin today's hearing, and as such, the hearing was adjourned at 3:31 PM. TIME AND LOCATION OF ANY FUTURE MEETINGS, COMMITTEES OR SPECIAL HEARINGS 1:00 PM - 3'~ Wednesday of Every Month in City Council Chambers, except December 2005 meeting shall be on the second Wednesday of that month. Attest: ~Mishawn J. Cook, Licensing Clerk Approved: Peter Gow Chair 11/16/05 BLA Final Minutes Page 7 of 7