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HomeMy WebLinkAbout02.20.19 BLA Minutes CITY OF BOULDER BEVERAGE LICENSING AUTHORITY * * * HEARING MINUTES * * * FEBRUARY 20, 2019, 3:00 P.M. COUNCIL CHAMBERS MUNICIPAL BUILDING —2ND FLOOR 1777 BROADWAY, BOULDER, COLORADO NAME OF BOARD/COMMISSION: Beverage Licensing Authority (BLA) DATE OF MEETING: February 20, 2019 NAME & PHONE OF PERSON Kristen Teague, CMC, Licensing Operations Specialist III PREPARING SUMMARY: (303-441-3034) NAMES OF MEMBERS, STAFF, AND INVITED GUESTS PRESENT: Board Members: Matthew Califano, Alyssa Lundgren, Kevin Mahoney and Michael Friesen Staff Present: Debra Kalish, Senior Counsel, Kristen Teague, Licensing Operations Specialist, and Mishawn Cook, Licensing Manager 1. Agenda Item: i. Member roll call; Authority member roll call was completed, with a quorum of 4 members present with Chair Wallace absent. ii. Approval of Beverage Licensing Authority(BLA) minutes from January 16, 2019 hearing; The January 16, 2019 minutes were not available for the packet and will be presented at the March BLA hearing for review. iii. Hearing agenda issues from licensing clerk; None for this hearing. 2. Matters from the Boulder Police Department (BPD). Officer Denig appeared and provided the following: a. January 2019 Summary Review b. Circle K Stores FMB Observations BLA 2/20/19 FINAL Minutes PACO 1 of Q 3. Matters from the Responsible Hospitality Group (RHG). Mike Absalom, President of RHG, appeared and thanked Officer Dening on his transition into his position. He addressed the fake ID stickers and that he could provide those for licensees. He provided a new update regarding the Responsible Association of Retailers group, RAR, and potential merger with the RHG, membership costs and informed the Authority that the RAR would be at the March hearing. It was requested that the Authority consider the RAR as a mitigating factor in the future. Agenda Item #-Exhibit 1 was presented as both a paper copy and was emailed to the Authority members. It was noted that licensee's/applicants in Agenda Items number 4 and 8 were active RHG members. Licensing Manager Cook noted that the penalty guidelines would have to be changed if the RAR would be added as a mitigating factor and that would have to be published if at a hearing or done at a retreat. 4. Show Cause hearing concerning a December 11, 2018 violation and whether the Hotel- Restaurant type liquor license held by Bartaco Pearl West, LLC. d/b/a Bartaco, 1048 Pearl Street, Suite 101, Boulder, CO 80302, should be suspended or revoked. Adam Stapen appeared as attorney for this licensee. Michael Gleason, Regional General Manager was sworn in for this matter. Mr. Stapen waived reading of the BLA hearing procedures. No ex-parte communications or conflicts of interest were disclosed by Authority members. Chris Reynolds, Assistant City Attorney, noted for the Authority that a stipulation to the facts in this manner had been reached with the licensee. The stipulation was provided in the hearing packet. Member Friesen moved, Lundgren seconded to accept the Stipulation as presented. Motion passed 4:0. Mr. Stapen presented and reviewed the mitigation packet as submitted. Mr. Gleason provided additional testimony as to the licensee's operational characteristics, training and policies. Vice Chair Califano moved to suspend the license for 14 days with 2 days served and 12 days held in abeyance. Mahoney seconded. Motion passed 4:0. Member Lundgren moved, Friesen seconded to have the suspension begin on February 25, 2019. Motion passed 4:0. Licensing Specialist Teague requested a brief recess to process the show cause paperwork at 3:27 PM. The hearing resumed at 3:37 PM. 5. Public hearing and consideration of a January 9, 2019 application from Summit Hotel TRS 131, LLC d/b/a Boulder Marriott, 2660 Canyon Boulevard, Boulder, CO 80302; Summit Hotel TRS, Inc., 100%Managing Member,with Daniel Hansen, President,Christopher Eng, Secretary,and BLA 2/20/19 FINAL Minutes Page 2 of 9 Thomas Lloyd, Registered Manager; with a business mailing address of 13215 Bee Cave Parkway, Suite B-00, Austin,TX 78738 for a renewal of a Hotel-Restaurant type liquor license. Steven Lee appeared as attorney for this licensee. Mark Newman, Vice President of Food and Beverage and Thomas Lloyd, General Manager, were sworn in for this matter and confirmed the ten-day legal posting of the premises. Mr. Lee waived reading of the BLA hearing procedures. No ex-parte communications or conflicts of interest were disclosed by Authority members. No third parties requested interested party status and no public comments were received. Mr. Lee reviewed the renewal issues for the Authority and Mr. Lloyd supplemented the information by providing testimony as to the administrative error that led to the late filing of the renewal. Member Friesen moved, Vice Chair Califano seconded, to approve the renewal application. Motion passed 3:0. 6. Public hearing and continued consideration of an November 13, 2018 application from Rosetta, LLC d/b/a Rosetta Hall, 1109 Walnut Street, Boulder CO 80302; Ralph Greene, Member, and Donovan Greene, Member, and Scott Novotny, as Proposed Registered Manager, with a premises mailing address, for a New Hotel-Restaurant type liquor license. Fern O'Brien appeared as attorney for the licensee. Ralph Greene, Member, Donovan Greene Member appeared as applicants and Eva Garretson, LiquorPros, sworn in for this matter. Ms. Garretson confirmed the ten-day legal posting of the premises. Mr. Stonbraker waived reading of the hearing procedures. No ex-parte communications or conflicts of interest were disclosed by Authority members. Linda Rogers of 1155 Canyon Boulevard, business owner, Anthony Lavondanski of 2428 20th Street, business owner in the designated neighborhood boundary and Natalie Hess of The Ginger Pig, proposed food stall operator appeared as interested parties and were sworn in. Ms. O'Brien presented and reviews the application for the Authority with additional testimonies from the applicants. Ms. Garretson reviewed the petitioning materials submitted in the hearing packet. Ms. Rogers and Mr. Lavondanski testified as to their support for this application and their thoughts as to what this business would bring to the neighborhood. Ms. Hess testified to the opportunity this would afford her as a chef and small business operator in the City of Boulder. The Authority requested information from city licensing if the issues raised at the January hearing had been resolved. Specialist Teague and Licensing Manager Cook noted that while the materials removing the concern over the liquor management agreement had been submitted BLA 2/20/19 FINAL Minutes Page 3 of 9 to the State Liquor Enforcement Division and responses had been requested multiple times none had been received. Manager Cook proposed that if the application were to be approved that a condition be set that if the State LED raise concerns that city licensing be allowed to let the applicant to amend the application materials for the food stalls. The Authority spoke to a previous license held by Messrs. Green and their future plans for this operation. Member Friesen moved, Lundgren seconded to approve this application for a Hotel-Restaurant type liquor license with the conditions proposed by Manager Cook. Motion passed 3:1 with Member Mahoney voting nay. 7. Public Hearing and Consideration of an November 28, 2018 application from 7E CO2, LLC (franchisee) and 7-Eleven, Inc. (franchisor) as joint licensees d/b/a 7-Eleven Store 35069B (f/k/a 7-Eleven, Inc. d/b/a 7-Eleven Store 35069B), 1091 13th Street, Boulder, CO 80302; 7E CO2, LLC (Franchisee LLC) with Kenneth Monfort and Alon Mor as its Managers and with 7E CO Holdings, LLC as 100%owner of Franchisee LLC with Kenneth Monfort and Alon Mor as its underlying Members, and with 7-Eleven, Inc. (Franchisor Corp) 100%owned by SEJ Asset Management & Investment Company and with Joseph DePinto as President, CEO and Director, Rankin Gasaway as Senior Vice President, Secretary and General Counsel, and with Stanley Reynolds, Executive Vice President and Chief Financial Officer of Franchisor Corp, with a business mailing address of P. O. Box 219088, Dallas,TX 75221, for a Transfer of a Fermented Malt Beverage Off- Premise type liquor license. Steven Lee appeared as attorney for this licensee. Alon Mor, Manager/Member, Bradley Davis, Director of Food and Beverage Assets,Ashley Dolan, Field Consultant and Alyssa Borgeson,Store Manager appeared for the licensee and applicant, were sworn in for this matter and Ms. Boregeson confirmed the ten-day legal posting of the premises. Mr. Lee waived reading of the BLA hearing procedure. No ex-parte communications or conflicts of interest were disclosed by Authority members. No third parties requested interested party status and no public comments were received. Specialist Teague noted that this transfer application was not able to be administratively approved as the current licensee had a violation within the past S years, thus requiring an appearance and approval by the Authority. Mr. Lee presented and reviewed this application for a Transfer of Permanent Modification of a Fermented Malt Beverage Off-Premise type liquor license The licensee/applicants provided testimony as to the operational characteristics, history of the license training protocols and the previous violation. BLA 2/20/19 FINAL Minutes Page 4 of 9 It was confirmed that the location currently only has one cooler door space for alcohol display. Licensee/applicant was notified of the requirements for a permanent modification should they desire to expand their premises. Member Mahoney moved, Friesen seconded to approve this transfer application of a Fermented Malt Beverage Off-Premise type liquor license Motion passed 4:0. 8. Public hearing and consideration of an December 4, 2018 application from Gaku Ramen II, LLC d/b/a Gaku Ramen, 1119 13th Street, Boulder CO 80302; Applicant LLC with a Manager of T3 Hospitality LLC with Joseph Vicari and Kelley Jones as its Members, and with Applicant LLC as 100%owned by Ramen Concepts, LLC with David Stone, Ryan Goldstein and Michael March as its Underlying Members; and Michelle Binus with as Proposed Registered Manager, with a premises mailing address, for a New Hotel-Restaurant type liquor license. Adam Stapen appeared as attorney for the licensee. Joseph Vicari, Member T3 Hospitality, LLC and Michelle Binus, Proposed Registered Manager appeared as applicant, were sworn in for this matter, and Eva Garretson, LiquorPros petitioning service, was reminded that she was still under oath from prior Agenda Items. Ms. Garretson confirmed the ten-day legal posting of the premises. Mr. Lee waived reading of the hearing procedures. No ex-parte communications or conflicts of interest were disclosed by Authority members. No public comments were received. Mr. Lee presented reviewed this application for a New Hotel-Restaurant type liquor license The applicants provided testimony as to the operational characteristics, history of the Gaku Ramen restaurants in Vermont, concept for this proposed location. The Authority asked for information regarding the liquor policies and training protocols. It was noted that the diagram did not adequately address requirements for premises control for the patio and that the alcohol storage cage in the office needed listed. Applicant agreed to amend the diagram to remove the patio from the liquor licensed premise and designate the alcohol storage area. The amended diagram will be provided to city licensing by Thursday of this week and verified by city staff upon premises inspection. Member Lundgren moved, Friesen seconded, to approve the application for a New Hotel- Restaurant type liquor license. Motion passed 4:0. 9. Public hearing and consideration of an December 10, 2018 application from Dillon Companies, LLC. d/b/a King Soopers #33, 3600 Table Mesa Drive, Boulder, CO 80303; Kroger Co. as 100%Owner, and with Colleen Juergensen as President, Dennis R. Gibson as Vice President, Christine R. Wheatley as Director/VP/Secretary and General Counsel, Carin L. Fike as VP and Treasurer, and with Tony Woodward as Store Manager; with a business mailing address of P.O. Box 305103, Nashville, TN 37230,for a Permanent Modification of a BLA 2/20/19 FINAL Minutes Page 5 of 9 Fermented Malt Beverage Off-Premise type liquor license. Adam Stapen appeared as attorney for the licensee. Gregory Junk, Adult Beverage Category Manager appeared for the licensee applicant and Max Scott of Oedipus, Inc. petitioning service, were sworn in. Mr.Scott confirmed the ten-day legal posting of the premises. Mr. Stapen waived reading of the hearing procedures. No ex-parte communications or conflicts of interest were disclosed by Authority members. Jennifer Schwab appeared as attorney for the interested party. Ann Coppinger, owner of Pettyjohn's Liquor and Wine, Philip LaBonte of Black Diamond Outreach, petition service, Margaret Ruttenber of 1019 Yale Circle, a resident within the neighborhood boundary, Chris Coppinger, Office Manager, Charlie Master, Manager, Ben Kobi, General Manager and Brady Brinegar, Assistant Manager all of Pettyjohn's Liquor and Wine were all sworn in as interested parties. Mr. Stapen presented and reviewed this application for a Permanent Modification of a Fermented Malt Beverage Off-Premise type liquor license. Mr. Scott provided testimony as to the petitioning for this application. Ms. Schwab cross- examined Mr. Scott as to statements made regarding his testimony. Mr. Junk presented testimony regarding the modification, store operations, customer requests and ordering and tracking of product metrics. Ms. Schwab cross-examined as to Mr. Junk's testimony and for points of clarification. The Authority members asked clarifying questions of the applicant, Mr. Scott and to city licensing. Licensing Manger Cook provided information regarding temporary warm storage displays and the State Liquor Enforcement Division position statement and the corresponding State Bulletin which was provided in the hearing packet. Ms. Schwab called the interested party petitioning service representative, Mr. Labonte. He was sworn in and reviewed the petitioning and methods provided by his company. Mr. Stapen cross- examined for further information and points of clarification. Margaret Ruttenber, Chris Coppinger, Charlie Master, Ben Kobi and Brady Brinegar all provided testimony as to their supporting position as to opposition of the application being approved. Ms. Schwab continued as to present the position of the interested party, Ann Coppinger, Owner of Pettyjohn's Liquor and Wine. Mrs. Coppinger testified as to her business, practices, the petitioning and position of the potential outcomes should the application for the permanent modification be approved. Mr. Stapen cross-examined Mrs. Coppinger on testimony and points of clarification. Mr. Stapen and Ms. Schwab each provided closing statements. BLA 2/20/19 FINAL Minutes Page 6 of 9 The Authority closed the hearing and began their deliberations. Member Mahoney moved to approve the application for a Permanent Modification of a Fermented Malt Beverage Off-Premise type liquor license. Motion died for lack of a second. Vice Chair Califano moved, Friesen seconded, to deny the application for a Permanent Modification of a Fermented Malt Beverage Off-Premise type liquor license. Califano and Friesen voted aye, Mahoney nay, Lundgren continued to deliberate. Member Mahoney requested a recess for further individual deliberation. The Authority recessed at 8:34PM. Hearing resumed at 9:0213M. With a joint request, Mr. Stapen and Ms. Schwab asked for a continuance in this matter to the March hearing date so that they may explore and present either a joint agreement for the application or resume the hearing from the exact point of the 8:32PM recess. Vice Chair Califano moved, Mahoney seconded, to approve the joint request for continuance with the stipulation that either there is a joint agreement for the application presented for consideration of the Authority or they resume the hearing from the exact point of the 8:32PM recess with no new evidence or testimony presented. Motion passed 4:0. Specialist Teague requested the Authority to consider hearing Agenda Item number 11 (d) before Agenda Item 10. Vice Chair Califano moved, Friesen seconded to grant Specialist Teague's request. 10. Matters from Senior Counsel's Office Exhibits 1 and 2 were presented as both emailed and hard copy regarding the pending litigation filed by Bailey's Wine and Spirits. 11. Matters from the Licensing Clerk a. Board Discussion items: i. Beverage Licensing Authority Opening Exhibits 1, 2 and 3 were both emailed and presented in hard copy. Manager Cook briefly discussed estimating the number of volunteer hours spent by the Authority members for each hearing cycle. This information is being requested by and will be provided to City Council. The average was estimated to be 10 hours for preparation, packet review and hearing per member. BLA 2/20/19 FINAL Minutes Page 7 of 9 b. Expected Administrative Processing of Liquor License Transfer Applications for: None for February c. Neighborhood boundary setting for applications for the March 20, 2019 BLAhearing: L Vitamin Cottage Natural Food Markets, Inc. d/b/a Natural Grocers for a New Fermented Malt Beverage Off-Premise type liquor license at 2685 Pearl Street, Boulder, CO 80302. The following the boundaries were discussed: Iris on the North, Arapahoe on the South, 33rd Street on the East, and 20th Street on the West. Member Friesen moved, Vice Chair Califano seconded, to set the boundaries for this application as above described. Motion approved 4:0. ii. Summit Hotel TRS 131, LLC d/b/a Boulder Marriott for a Permanent Modification of a Hotel-Restaurant type liquor license at 2660 Canyon Boulevard, Boulder, CO 80302. The following the boundaries were discussed: Mapleton on the North, Colorado on the South, 30th Street on the East, and 20th Street on the West. Member Friesen moved, Lundgren seconded, to set the boundaries for this application as above described. Motion approved 3:0 with Member Mahoney abstaining. iii. Circle K Stores, Inc. d/b/a Circle K Store 2741110 for a Permanent Modification of a Fermented Malt Beverage Off-Premise type liquor license at 2995 30th St, Boulder, CO 80301. The following the boundaries were discussed: Iris on the North, Arapahoe on the South,47th Street on the East, and 19th Street on the West.Vice Chair Califano moved, Friesen seconded,to set the boundaries for this application as above described. Motion approved 4:0. d. Breweries, Wineries, and Distilleries requests for local licensing authority input on Application for Colorado Liquor Sales Room i. BoCo Cider, Co. d/b/a BoCo Cider-New Permanent Sales Room application for 1501 Lee Hill Road, Unit 14, Boulder,CO. This item was convened after Agenda Item 9. Applicant Michael Belochi appeared and was sworn in. He provided application details and operational characteristics of the cidery. The Authority had no local objection to this application. e. Informational items i. February Special Events and Temporary Modifications This item was included in the hearing packet BLA 2/20/19 FINAL Minutes Page 8 of 9 ii. February Liquor License renewal mailing lists for May Expirations This item was included in the hearing packet iii. LED Bulletin-SB19-011-Malt and Fermented Malt Beverages This item was included in the hearing packet 12. Matters from the Chair and Members of the Authority. Member Friesen asked as to applicants for the vacancy for the Authority. Manager Cook said that due to none they have extended the recruiting through February 22"d. Applicant information will be forwarded to Authority members once it is made public. ADJOURNMENT Vice Chair Califano moved, Lundgren seconded, that this hearing should be adjourned and thus the hearing was adjourned at 9:23PM. Motion to adjourn approved 4:0. Attested: Approved: Mishawn J. Cook, Licensing Manager Vice Chair of Beverage Licensing Authority And Secretary to the Beverage Licensing Authority BLA 2/20/19 FINAL Minutes Page 9 of 9