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HomeMy WebLinkAboutLiquor Licensing Authority - Minutes - 08/28/19911] 0 LIQUOR LICENSING AUTHORITY MINUTES Regular Meeting - August;28, 1991 6:49 p.m. Council Liaison: Bob Winokur I Staff Liaison: Rita Knoll Harris A regular meeting of the Liquor Licensing Authority was held on Wednesday, August 28, 1991, in the Council Chambers of the Fort Collins Municipal Building. The following members were present: Crowfoot, Guerrie, Norton, Mael, and Poncelow. Authority Members Absent: Wawro and Cooper. Staff Members Present: John Duval, City Attorney's Office Rita Knoll Harris, City Clerk's Office Sandra Gibson, Police Department Consent Calendar The Consent Calendar is intended to expedite the meeting and allow the Authority to spend its time and energy on the important items on a lengthy agenda. Anyone may request that an item be "pulled" off the Consent Calendar and considered separately. Items pulled from the Consent Calendar will be considered separately immediately following adoption of the Consent Calendar. 1. Approval of the minutes of the regular meetings of June 26 and July 24 1991. 2. 3. Northern Dining and Bar Bazaar and Old Colorado Brewing Company, Inc., the hotel -restaurant licensee for Northern Dining and Bar Bazaar and Old Colorado Brewing Company and Gonzalo's Restaurant, 172 North College, is reporting a change in stock ownership. Mary Starke now holds 50% of the stock in the corporation. Dillon Companies, Inc., the 3.2% beer licensee for King Soopers #9, 1015 South Taft Hill Road, is reporting a change of corporate officers. Frank Remar is replacing Paul Dillon as secretary/treasurer of the corporation. 0 August 28, 1991 Report of Change of Corporate Structure for Round the Corner Restaurants. Inc.. dba Round the Corner. 101 West Swallow. Round the Corner Restaurants, Inc., the hotel -restaurant licensee for Round the Corner, 101 West Swallow, is reporting new directors. Report of Change of Corporate Structure for Mountain Fare. Inc.. dba Washington's Bar and Grill. 132 LaPorte Avenue. Mountain Fare, Inc., the hotel -restaurant licensee for Washington's Bar and Grill, 132 LaPorte Avenue, is reporting a change of corporate officers and directors. Authority member Norton made a motion, seconded by Authority member Crowfoot, to adopt and approve all items not removed from the Consent Calendar. Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Consideration of Applications from the Eyeopeners Kiwanis Club of Fort Collins for Special Events Permits for Oktoberfest on October 5, 1991, at Oak Street Plaza and Old Town Square, Approved Scott Townsend, event manager, stated that the Oktoberfest activities have been held downtown for about 10 years and is the main fundraiser for the Kiwanis Club. He indicated they have had a 3.2% beer license in the past, and this is the first year they have requested a full license so that CooperSmith's and O'Dell's can serve their microbrews in the Old Town area. He noted that experienced club members will serve the beer. He stated they check everyone's ID. He indicated they will again employ off -duty police officers as security, and noted there have been no problems in the past. He stated patrons are served only one beer at a time in a cup. He indicated areas will be roped off to monitor where beer is allowed. Authority member Mael made a motion, seconded by Authority member Guerrie, to approve the applications from the Eyeopeners Kiwanis Club of Fort Collins for special events permits for Oktoberfest on October 5, 1991, at Oak Street Plaza and Old Town Square. Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Hearing on a New Application for a Tavern License at The Carousel Playhouse Dinner Theatre, 3509 South Mason #3. Approved Jenny Goodman, owner and manager, and Cindy Murphy, owner, were sworn. • August 28, 1991 Ms. Goodman stated the establishment will serve a sit-down dinner with a dinner menu catered in by The Rainbow, Ltd., and after dinner there will be a Broadway - style musical production. She indicated there will be a full -service bar. Ms. Murphy noted that the playhouse will be open all year. Ms. Goodman indicated that they have employed a liquor manager, Patrick Sawyer, who is present tonight. She noted they will serve cocktails before and during dinner as well as during intermission. Ms. Murphy indicated they will have a 10-member chorus serving the meals and liquor. She stated they have made arrangements for Officer Tellez to train these employees. She noted she has prior experience in dinner theatres with alcohol service. She indicated a dinner theatre does not typically attract minors unless they are with their families. Ms. Goodman approached the Authority with petitions. She described the petitioning process and stated they obtained 400 signatures with approximately 1 in 60 opposing the license. She stated ticket prices run from $22.95 to $25.95, depending on the night. She indicated the cost of any alcoholic beverage and dessert would be extra. She noted there would be no free alcoholic beverages given to employees. Assistant City Attorney John Duval identified Applicant's Exhibits A, B, C, and D as the petitions. He noted he had marked several signatures with asterisks because no age was given. He indicated that Exhibits B, C, and D are admissible into evidence. He stated that there was a problem with the verification notarization on Exhibit A and asked if Sandra Holter could testify that it was her signature on Exhibit A. Sandra Holter, co-owner, was sworn. She testified she circulated the petition identified as Exhibit A and that the verification contains her signature. Mr. Duval stated that, based upon Ms. Holter's testimony, Exhibit A is admissible into evidence. Ms. Goodman stated there are other owners of the theatre, but they each own less than 5 percent. She noted the owners listed on the application are the majority owners. She indicated the maximum capacity of the theatre is 228. She indicated they will not serve alcohol in the lobby area. Authority member Norton made a motion, seconded by Authority member Guerrie, to adopt Resolution 91-09 approving a tavern license at The Carousel Playhouse Dinner Theatre, 3509 South Mason #3. The Authority encouraged the applicant to consider hiring additional security personnel for around the theatre and to make sure employees have as much training as possible in carding and serving alcohol. The vote was as follows: Yeas Nays: None. THE MOTION CARRIED. Crowfoot, Guerrie, Mael, Norton, and Poncelow. 171 0 August 28, 1991 Hearing on a New Application for a Hotel -Restaurant License at Pescado Bay, 755 South Lemay #D-3, Approved Ron Ritter, 2230 Eastwood Drive, general manager, was sworn. He stated they are opening their second restaurant and stated the Pescado Bay at Campus West has gone well with no problems. He noted he plans to send the Lemay employees to one of Officer Tellez's classes. He stated the menu will be the same as at the Campus West restaurant. He indicated the seating capacity of this restaurant is 46, and it is a non-smoking establishment. He noted the seating area is visible from the counter, and he strongly stresses to his cashiers the importance of carding customers who appear 35 or under. He stated Campus West has 4% to 5% total alcohol sales consisting of beer and wine only. Eileen Swiers, Market Service Associates, was sworn. She identified Applicant's Exhibit A as the summary report and Exhibits B through F as petitions. She described the petitioning process that was used. Assistant City Attorney John Duval stated he had reviewed Exhibits A through F and they are admissible into evidence. He asked Ms. Swiers to explain why some signatures on the petitions were marked with a red asterisk. Ms. Swiers stated 257 (94.8%) persons signed in support of the license and 14 (5.2%) signed in opposition. She indicated 6 signatures which failed to meet requirements were marked with red asterisks. Upon questioning from the Authority, Mr. Ritter stated there were no problems at the other location regarding alcohol sales. He indicated the cashiers sold one beer per ID. He noted that at the new location they plan to sell only beer and wine coolers for now. He stated they may sell margaritas at a later date. He indicated they will not have a full service bar. Authority member Crowfoot made a motion, seconded by Authority member Guerrie, to adopt Resolution 91-08 approving the application for a hotel -restaurant license at Pescado Bay, 755 South Lemay #D-3. Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Show Cause Hearing for Cottonwood Liquors, 3640 South Mason #8 Archie Solsky, president of Cottonwood Liquors, Inc. identified himself. Assistant City Attorney John Duval stated that a stipulation agreement with regard to the violation had been reached. He outlined the provisions of the agreement as follows: 1. The licensee stipulates to the violation of selling to an underage person. • August 28, 1991 The license will be suspended for 4 days, with 2 days held in abeyance for a period of one year providing that no further violations of the liquor code occur within that period, and 2 days actively served. In lieu of serving the 2-day active suspension, the licensee agrees to pay a fine of $350. The licensee will reimburse the City within 15 days for $3.80 representing the cost of the sting operation (for alcohol purchase). The licensee will send all personnel employed at the premises to a liquor law education class within the next 60 days. The licensee will purchase a liquor and beer code and regulations book within 30 days and keep it on the premises at all times. Mr. Solsky read a letter commenting on the stipulation and the overall liquor enforcement program. He stated his purpose in making the comments was to suggest the Authority take a look at what's happening in the system. He indicated he has agreed to the stipulation not because he believes it's right or fair but because he cannot afford to fight the Police Department's recommendations. He stated he has been in operation for 10 years without any violations, is conscientious about training his employees in the liquor laws, and has cooperated diligently with the Police Department to enforce these laws, and he believes the penalty for the violation should have been a letter of reprimand. He stated he believes the punishment is totally out of proportion to the circumstances of a first-time violation in 10 years of operation. He indicated the message he received from the City in working out the stipulation was that it is too difficult and complicated to take individual circumstances into account when deciding what is a fair disposition. He noted the second message he received was that if he did not agree with the stipulation, the Police Department would withdraw it and seek the stiffest penalty possible at the hearing. He stated the third message he received was that the Authority would be unlikely to ever impose a lesser punishment than that recommended by the Police Department. He indicated again he believed one mistake in 10 years of operation does not demonstrate bad management or disregard for liquor licensing laws. He stated a system based on fairness, which takes in account all pertinent circumstances, will serve everyone better. Authority member Mael made a motion, seconded by Authority member Norton, to accept the stipulation agreement as outlined by the Assistant City Attorney. Authority member Poncelow stated Mr. Solsky's comments were very well taken. The vote was as follows: Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. • • August 28, 1991 Show Cause Hearing for The Wine Cellar, 3400 South College Rod Treiber, secretary and treasurer, identified himself. Assistant City Attorney John Duval stated that a stipulation agreement with regard to the violation had been reached. He outlined the provisions of the agreement as follows: 1. The licensee stipulates to the violation of selling alcoholic beverages between the hours of 2:00 a.m. and 4:55 a.m. 2. The license will be suspended for 7 days, with 5 days held in abeyance for a period of one year providing that no further violations of the liquor code occur within that period, and 2 days actively served. In lieu of serving the 2-day active suspension, the licensee agrees to pay a fine of $200. 3. The licensee will purchase a liquor and beer code and regulations book within 30 days and keep it on the premises at all times. Mr. Treiber stated he wished to apologize to the Authority and the City and explained the circumstances surrounding the incident. Authority member Mael made a motion, seconded by Authority member Crowfoot, to accept the stipulation agreement as outlined by the Assistant City Attorney. Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Show Cause Hearing for Get It and Go. 1005 West Stuart 04 Paul Weidel, owner, identified himself. Assistant City Attorney John Duval stated that a stipulation agreement with regard to the violation had been reached. He outlined the provisions of the agreement as follows: 1. The licensee stipulates to the violation of selling to an underage person. 2. The license will be suspended for 7 days, with 5 days held in abeyance for a period of one year providing that no further violations of the liquor code occur within that period, and 2 days actively served on September 16 and 17, 1991. 3. The licensee will reimburse the City within 15 days for $3.54 representing the cost of the sting operation (for alcohol purchase). E • August 28, 1991 4. The licensee will send all personnel employed at the premises to a liquor law education class within the next 60 days. 5. The licensee will purchase a liquor and beer code and regulations book within 30 days and keep it on the premises at all times. Mr. Weidel indicated that in the past they have sent employees to training classes, and they have an extensive in-house training program. Authority member Norton made a motion, seconded by Authority member Mael, to accept the stipulation agreement as outlined by the Assistant City Attorney. Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Show Cause Hearing for Old Town Ale House. #24 Old Town Square Drake Johnson, attorney, introduced himself and Troy Fetters, co-owner of Old Town Ale House. Officer Ernie Tellez was sworn. He stated that on March 1, 1991, at 10:49 p.m., he and other officers made a compliance check at the Old Town Ale House. He indicated the check was done based on information that the business had been serving underage people. He noted that on that evening he contacted a patron named Julie Egan, who was under the age of 21 and who had been served an alcoholic beverage. He indicated Ms. Egan did not have an ID with her. He stated he issued a summons to Ms. Egan for alcohol consumption by an underage person. He noted Troy Fetters was close by when the summons was issued to Ms. Egan and that Mr. Fetters went over to talk to the doorman, Joe Cox. He stated he heard Mr. Cox tell Mr. Fetters that Ms. Egan was "possibly one that I've checked before and I've seen her in here all the time." He stated Mr. Fetters then came to him and indicated Ms. Egan had come in with a fake ID. Officer Tellez wondered why this person was allowed to enter if Mr. Fetters knew Ms. Egan had a fake ID. Officer Tellez stated he began checking for other violations within the establishment and spoke with Mr. Cox, who pulled a handful of ID's out of his pocket and wallet. In response to Officer Tellez's questioning, Mr. Cox stated he was unaware that he had to turn ID's over to the Police Department. Officer Tellez stated Mr. Cox indicated that he takes fake ID's to other licensed liquor establishments in Fort Collins and trades them with the doormen for free entry or free drinks. He stated Mr. Cox told him these establishments pay a bounty when they recover fake ID's, and he implied he split the bounty with these other doormen. Officer Tellez noted Mr. Fetters stated he knew Mr. Cox was doing this, but that Mr. Fetters was unaware that the fake ID's were to be turned over to the Police Department. Officer Tellez indicated he continued the compliance check and discovered that the establishment did not have a valid federal tax stamp posted or a minor warning sign posted. He stated that when he asked see the books and invoices, • • August 28, 1991 Mr. Fetters replied they were stored off -site at two different locations. Officer Tellez noted they were also charging a $2.00 cover charge to enter the establishment, which requires a dance hall license, which Mr. Fetters did not have. Officer Tellez stated he told Mr. Fetters he would be meeting with the City Attorney, who would notify Mr. Fetters of the violations found that evening. Officer Tellez noted that the Police Department was asking the Authority to consider three issues: the fact that (1) an underage person entered the establishment and consumed an alcoholic beverage, (2) the management failed to turn in the ID's taken from customers and knowingly permitted the employees to keep these ID's to trade them at other businesses, and (3) they were not displaying a minor warning sign. In response to Mr. Johnson's cross examination, Officer Tellez indicated Ms. Egan never produced an ID of any kind, but stated her name and other personal information to him which he verified through Dispatch. He noted he asked Ms. Egan to turn her pockets inside out and she did not have an ID. He stated he did not interview her companions, nor did he ask her if she had used a fake ID to enter the establishment. He indicated he did not question Mr. Cox whether he knew Ms. Egan personally. Officer Tellez estimated there were 50 to 70 people in the establishment that evening and that he located only 1 underage person. He noted he was not familiar with where the books and invoices were kept, but that Mr. Fetters stated the records were in his mother's basement and somewhere else in the east part of town. In response to questions from the Authority, Officer Tellez indicated the issue of the records was not being brought before the Authority because he believed if he would have had the time available to go look at them, he could have done so. He indicated this compliance check was specifically to inspect records and inventory, to check for underage drinkers, and to make sure the establishment was in voluntary compliance with other rules and laws. He stated he had checked through half of the building when he discovered the underage customer. He noted that a plainclothes officer, J.D. Cordova, conveyed to him that other customers were stating they needed to get out because the police were coming around checking ID's. He indicated Officer Cordova tried to point these people out, but as the crowd began to shift around, he lost track of them. He stated that he has received information that underage people are being allowed to remain in the establishment after 8:00 or 9:00 p.m. Mr. Johnson called Julie Egan as his first witness. Julie Egan, 1920 11th Avenue, Greeley, was sworn. She stated she did enter Old Town Ale House and consumed alcohol. She indicated she used another person's ID to enter the establishment. She stated the ID was valid in another state. She noted she did not remember if she gave Officer Tellez her driver's license that night or whether she told him her name. In response to Officer Tellez's cross-examination, Ms. Egan stated that the demeanor of the officers that night was low-keyed and polite. She indicated she had a valid out-of-state driver's license with a photo similar to herself. She estimated the doorman glanced at the ID for about 4 seconds. She stated he was not distracted and that she believed if the ID were studied, a person would be able to tell it was not her. Ms. Egan noted that the person she borrowed the ID August 28, 1991 from used her own military ID to get in 2 to 3 minutes later. She stated she was served 2 beers and that she had her real ID in her purse. In response to Mr. Johnson's redirect, Ms. Egan stated she and the other person did not look alike other than hair color and height. She indicated she had not seen the other person's military ID photo, and there were about 5 people in line behind her. In response to a question from the Authority, Ms. Egan stated she had never been in the establishment before. Mr. Johnson called Troy Fetters to testify. Troy Fetters, 3201 Azalea, was sworn. Mr. Fetters stated he estimated there were 120 to 140 people (close to capacity) in the establishment on the evening of Officer Tellez's compliance check. He stated 6 officers were involved in the check (5 in uniform). He indicated he was with Officer Tellez when he confronted the person with the ID problem. He noted he asked Officer Tellez to ask Ms. Egan and her companions to empty their pockets, but Officer Tellez did not do so. He stated he was not aware that evening that anyone underage was in the establishment, and that they take measures to prevent that from happening. He indicated Mr. Cox is very good at recognizing false ID's. He noted that at 9:00 p.m. the policy is that everyone in the establishment has to be 21, so the floor staff that night tried to flush the establishment of underage people. He stated that at 9:00 p.m. they charge a cover and begin to check ID's at the door. He indicated the doorman is instructed to check ID's of anyone under the age of 30. He noted that if his doorman has seen a regular customer's ID 20 or 30 times, he doesn't check it. He stated that when he and Officer Tellez questioned Mr. Cox that evening, Mr. Cox stated he did let one or two people in that he knew. Mr. Fetters indicated Mr. Cox was not making this statement in connection with Ms. Egan. Mr. Fetters noted he did OK the practice of giving fake ID's to employees at other bars. He stated he now has new policies on turning ID's over to the Police Department within 24 hours. He indicated 14 of his employees have recently attended Officer Tellez's seminar to help them spot fake ID's. He noted he also has purchased the guide for checking ID's. He stated he did not have the minor warning sign displayed that evening because the display case frame was broken. He indicated he has taken care of the problem by now having a second sign as a backup in case one is broken. In response to Officer Tellez's cross-examination, Mr. Fetters stated he had not realized that ID's had to be turned in within 24 hours. He indicated his policy is to ID everyone who appears to be 30 years and under. He noted that on the evening of the violation, the doorman did card Ms. Egan since she appeared to be under 30. He stated he could produce receipts from Black's Glass showing that the case frame for the minor warning sign was in the process of being repaired the night of the violation. He indicated that after 9:00 p.m. the waitpersons are asked if they have checked the ID's at their tables. He noted that they track down people who have not been ID'd. He admitted he did permit his employees to give ID's to staff at other bars. In response to questions from the Authority, he stated that at the time of the violations, he did not have a copy of the liquor code. He indicated again that he could produce receipts for the repair of the minor warning sign. • • August 28, 1991 Mr. Johnson called Joe Cox to testify. Joseph Cox, 500 Tyler, was sworn. He stated he has been a doorman for Old Town Ale House since May 1990, with 6 months previous experience in Wyoming. He noted he was not aware of the 24-hour rule regarding turning in fake ID's. He indicated he has never turned an ID over to another establishment to get in free or to get free drinks. He stated he kept the ID's in his pocket or wallet that night. He stated that on the night of the violations, Officer Tellez threatened to arrest him if he ever found him with fake ID's in his pocket or wallet again. He noted that he did not card a patron if he had seen his or her ID many, many times before. He indicated he did not know Ms. Egan and that he asked for her ID when she came in. He stated there was nothing in the situation that night to alert him that her ID was not valid. He noted that photos on a driver's license and a military ID are very different. Upon cross examination from Officer Tellez, Mr. Cox stated he does not remember how many ID's he had in his wallet or pocket that night. He noted that night he was in control of the door area, carding people who entered, taking their money one by one, and he does not remember telling the officer what he did with fake ID's. In response to questions from the Authority, Mr. Cox stated they threw away the fake ID's or gave them to the Police Department at one time. He noted they now call the Police to pick up ID's. He indicated he doesn't remember any specific instructions that Mr. Fetters gave him regarding what to do with the false ID's, but he has never turned them over to someone else. He noted he is still an employee at Old Town Ale House. He stated that when he was first employed there, he did not receive any written materials on the State liquor laws. In closing, Officer Tellez pointed out that Ms. Egan indicated she had a doubt that night about being able to get by with the false ID because she believed if someone were to study the ID close enough, he could distinguish the difference between her and the picture. He stated Mr. Cox acknowledged that he was stressed that night and overworked. With regard to the issue of confiscated false ID's, Officer Tellez spoke of Troy Fetters claims that if they didn't know it was not wrong, than it was OK for his employees to keep confiscated ID's to dispose of them as they wished. Officer Tellez stated that if the frame for the minor warning is damaged frequently, he would expect Black's Glass to recommend plexiglass be used. In his closing statement, Mr. Johnson stated M two of the charges, but that he believes they Julie Egan. He indicated that they brought a testify tonight, that she was not here on her c had a valid out-of-state license although it was ID. He stated Mr. Cox did the best he could ID's. 1. Fetters has admitted guilt to did nothing wrong in regard to lawsuit to force her to come to wn free will. He noted that she not hers, thus making it a false that night in identifying false Assistant City Attorney John Duval suggested that each alleged violation be addressed separately. • August 28, 1991 Authority member Mael made a motion, seconded by Authority member Crowfoot, to find that a violation of Section 12-47-128(5)(a)(I), C.R.S., (selling to an underage person) did occur. Authority member Norton stated she believes that although mistakes like this will happen, it is how the day-to-day management permits these things to happen that is important here. She stated that by not having a code book, not being familiar with the laws, and not having a particular ground rule for how to deal with ID's and underage drinking, the management did not take the initiative, but permitted underage people to get in. The vote on Authority member Mael's motion was as follows: Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Authority member Norton made a motion, seconded by Authority member Crowfoot, to find that a violation of Section 12-47-128(5)(II)(A), C.R.S. (failure to turn over confiscated ID's) did occur. Authority members concurred that the evidence showed that confiscated false ID's were not turned over to the Police within 24 hours, which is what the law requires. The vote on Authority member Norton's motion was as follows: Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Authority member Crowfoot made a motion, seconded by Authority member Norton, to find that a violation of Section 12-47-128(5)(h), C.R.S. (failure to display warding sign) did occur. Authority member Mael stated displaying this sign was one of the basic rules every licensee should be familiar with and that what other bars do or don't do should not be a measure of whether to comply with the law or not. Authority member Poncelow indicated that the Authority has asked the Police Department to include in all compliance checks whether or not an establishment is posting such signs. The vote on Authority member Norton's motion was as follows: Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Officer Tellez's recommendation for the penalty for each violation was as follows: 1. For the underage drinking: a 7-day suspension, with 2 days actively served and 5 days held in abeyance. • August 28, 1991 For failure to turn in the identification cards: a 7-day suspension, with 2 days actively served and 5 days held in abeyance. For failure to display a warning sign: a 4-day suspension, with 1 day actively served and 3 days held in abeyance. Upon questioning from the Authority, Officer Tellez recommended that the penalties be added up for a total of 5 days active suspension and 13 days held in abeyance. In mitigation, Mr. Fetters stated he wanted the Authority to know that he considered the violations to be an important matter. He indicated that he has taken steps to keep such things from happening again. He noted he has had all his employees attend Officer Tellez's seminar and is making an effort to film the next seminar to have information to show future employees. He spoke of training materials he gives to employees. He noted the warning sign has been posted. He indicated he has obtained ID manuals for all the doorpeople. He stated the employee manuals have a section on what to look for in intoxicated people and for people who are underage. He indicated he has obtained a copy of the code book to keep himself advised. He noted that on the night of the violations, there were two owners of the establishment present, indicating they do care about the business and are trying to run things as best they can. He stated he would welcome any recommendations Officer Tellez might have to further the training of the staff on the handling of underage people. He indicated his willingness to try to follow and obey any guidelines Officer Tellez and the Authority wanted him to operate under. Mr. Johnson stated he believes the evidence as presented does not address the fact that a valid ID was presented, which is a total defense to that charge. He noted that the first violation is serious; however, the other two issues are minor. He indicated he believes the issue of the turning over the ID's demonstrates a lack of understanding. He stated he believes the lax enforcement of posted warning signs indicates that failure to do so is not a serious situation. He spoke of Mr. Fetters testimony regarding corrective action he has taken. He noted Mr. Fetters has filed a lawsuit in an effort to get a reputation going that he is not going to allow underage patrons to come into his bar. Mr. Johnson pointed out that Mr. Fetters has had no prior violations. Authority member Mae] made a motion, seconded by Authority member Poncelow, to impose a 10-day suspension, with 3 days actively served and 7 days held in abeyance, for the violation of Section 12-47-128(5)(a)(I), C.R.S. (sale to underage person). Authority member Poncelow stated she believes this is a serious situation and indicated she believes the penalty is reasonable. The vote on Authority member Mael's motion was as follows: Yeas: Crowfoot, Mael, Norton, and Poncelow. Nays: Guerrie. THE MOTION CARRIED. F • August 28, 1991 Authority member Guerrie made a motion, seconded by Authority member Crowfoot, to impose a 7-day suspension, with 2 days actively served consecutively with the 3 days active suspension imposed for the first violation and 5 days held in abeyance, for violation of Section 12-47-128 (5)(II)(A), C.R.S. (failure to turn over confiscated ID's). Authority member Poncelow stated she found this to be a serious violation because the Authority does not know what was going on with the confiscated ID's. She indicated the whole idea of the law was to be sure the false ID's are turned over to the Police to prevent them from being used by some other underage person. Authority member Guerrie expressed concern about an apparent lack of policy on this issue. She noted that when the Authority approved Mr. Fetters as manager, they had felt comfortable enough that he was familiar with the liquor license handbook, and that he understood the law and had policies and procedures in place and would train his employees well. She stated there was an apparent lack of written policy or clear direction, which she believes is serious. Authority member Norton stated she believes, according to Mr. Fetter's own testimony regarding making the changes with the ID's since these incidents occurred, that he is taking the matter much more seriously than the defense attorney would have the Authority believe. The vote on Authority member Guerrie's motion was as follows: Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Authority member Mael made a motion, seconded by Authority member Guerrie, to impose a 5-day suspension, with 2 days actively served consecutively with the 5 days active suspension imposed for the first two violations and 3 days held in abeyance, for violation of Section 12-47-128(5)(h), C.R.S. (failure to post warning sign). Authority member Mael stated that although this violation might appear to be of a minor nature, understanding of the requirement to comply with it is so basic, he believes that when a person takes the sign down, he should realize it needs to be up at all times. Authority member Poncelow indicated that the sign has to be posted, whether it is framed or not, to remind underage people that it is illegal for them to drink. Authority member Crowfoot stated she was concerned because this was not the first time that the sign was taken down for repair and that Mr. Fetters felt it was OK not to have it posted for as long as a week. The vote on Authority member Mael's motion was as follows: Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Authority member Mae] made a motion, seconded by Authority member Guerrie, that the suspensions previously imposed be served consecutively for 7 days, within the • August 28, 1991 next 45 days, and that the premises be posted. Yeas Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Crowfoot, Guerrie, Mael, In response to a question from Mr. Johnson, Assistant City Attorney John Duval outlined the provisions for requesting permission to pay a fine in lieu of suspension. Police Report Police Investigator Sandra Gibson stated the Authority had been provided with four reports of alleged liquor violations. Authority member Mael made a motion, seconded by Authority member Norton, to find probable cause exists to schedule a show cause hearing for The Armadillo, 354 Walnut. Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Authority member Mael made a motion, seconded by Authority member Norton, to find probable cause exists to schedule a show cause hearing for Coco Loco Taqueria and Cantina, 134 South College. Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Authority member Guerrie made a motion, seconded by Authority member Norton, to find probable cause exists to schedule a show cause hearing for Old Town Ale House, 25 Old Town Square. Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Authority member Norton made a motion, seconded by Authority member Crowfoot, to find probable cause exists to schedule a show cause hearing for Spring Creek Bar and Grill, 1006 Spring Creek Lane. Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Ms. Gibson stated that the other two supplemental reports in the packets she distributed to Authority members were strictly for their information. She indicated the one at The Junction was for the Police Department to begin to establish a pattern of not reporting disturbances. Secretary Rita Harris explained that the City Code requires an establishment report a disturbance and specifically states that repeated failure to do so is a violation. She indicated conduct of establishment may come in to play, and that it just depends whether the Police Department believes it has a strong enough case to pursue that charge. She stated because it is the City Code that has the provision about repeated failure to report disturbances and it would be • August 28, 1991 an issue that would be handled by the municipal court as a violation of the City Code rather than by the Authority. Other Business Reauest for Temporary Permit for Peoples' Bar. Inc. (Secretary's Note: Authority member Mael disclosed that Rock Sorenson is an associate and friend of his, but noted he did not believe it would be a conflict of interest for him to participate in this matter. Mr. Sorenson indicated he did not object to Mr. Mael participating.) Rock Sorenson, attorney representing Peoples' Bar, Inc., explained this is an unusual situation. He stated there is now a provision in the code that provides for an application for a temporary permit under circumstances in which someone or some entity is protecting their legal rights with respect to foreclosure or collateral interest in a business. He quoted the statute: "A temporary permit shall also be authorized in the event of a transfer of possession of licensed premises by operation of law, a petition in bankruptcy pursuant to federal bankruptcy law, the appointment of a receiver, a foreclosure action by a secured party, or a court ordered disposition prior licensee of all rights of possession." Mr. Sorenson explained that Peoples, Inc., a licensee at the time of a sale of assets of that company, sold the assets of Peoples, Inc. and the goodwill and going concern value of the company. He stated approximately three-quarters of the value of the sales price was allocated to that going concern value. He noted that Mr. Swan, who purchased those assets and was operating under the name "Nightingales, Inc.," came into breach of that agreement and suit has been brought. He stated that in court last week, Mr. Swan's attorney acknowledged the collateral interest of Peoples, Inc. in the assets of the company and in the going concern value, which is the license, and that Mr. Swan has voluntarily returned possession of the premises to Peoples, Inc. He indicated that because Mr. Swan was applying for a tavern license at another premises, he was required to turn in his license to the City, because two tavern licenses cannot be held simultaneously. Mr. Sorenson explained that in order to protect their security interests, Peoples, Inc. has filed an application for transfer of the license. He stated that the premises are already approved in terms of needs and desires of the neighborhood. He noted that Mr. Lenores, who is the president of Peoples, Inc., has, for the past 7 years, operated as a tavern licensee. Mr. Sorenson indicated that although the issue of granting the temporary license is a discretionary function with the Authority, the issues (moral character, etc.) are the same as they would be if someone were applying for an new license. He stated what the owners are seeking to do is return the business to operational status as quickly as possible so as not to impair their most valuable asset, the going concern value. He indicated he had talked with Mr. Reitz of the Liquor Enforcement Division, who agreed with him that the voluntary return of possession of the premises qualifies under this provision. He noted today's request is somewhat an emergency. He stated the owners will appear before the Authority on September 25 to request a permanent license. • August 28, 1991 Upon questioning from the Authority, Secretary Rita Harris stated that a quick review of the file did not show any violations at the establishment under the ownership of Peoples Bar, Inc. Authority member Norton made a motion, seconded by Authority member Crowfoot, to approve the application for Peoples' Bar, Inc., for a temporary permit at 934 South Lemay (previously known as Nightingales). Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Election of Officers Authority member Poncelow made a motion, seconded by Authority member Guerrie, to nominate Bill Mael as Chairperson. Authority member Mael made a motion, seconded by Authority member Norton, to nominate Bill Wawro as Chairperson. Secretary Harris polled each member for his/her vote: Crowfoot: Mael Guerrie: Mael Mael: Wawro Norton: Mael Poncelow: Mael Authority member Mael was elected as Chairperson. Authority member Poncelow made a motion, seconded by Authority member Norton, to nominate Barbara Crowfoot as Vice -Chairperson. Authority member Mael made a motion, seconded by Authority member Poncelow, to nominate Linda Norton as Vice -Chairperson. Secretary Harris polled each member for his/her vote: Crowfoot: Norton Guerrie: Crowfoot Mael: Norton Norton: Crowfoot Poncelow: Crowfoot Authority member Crowfoot was elected as Chairperson. Temporary Permits Secretary Rita Harris requested direction from the Authority on temporary permits. She stated that because the statute calls for issuance of the permit within 3 working days of the date the application is received, this can pose some problems. She indicated that in Fort Collins, the licensing procedure has been • • August 28, 1991 set up so that the date of receipt of the application is deemed to be the date the application is filed with the Clerk's Office. She noted they do not specifically schedule items for the Authority to receive them at one meeting and have them heard at a following meeting. She stated the Clerk's Office feels a need to be consistent with that policy of what date constitutes receipt. She indicated that because of that, there are some options on how to process temporary permit applications: 1. If the Authority wishes to preserve its authority in granting those permits, a special meeting would need to be called to accomplish consideration within 3 working days. 2. Since the State Liquor Division and Colorado Municipal League believe it is appropriate for the local authority to designate its authority in this matter to an agent, the Authority could have staff handle temporary permits with specific criteria under which they would or would not grant such permits. Ms. Harris stated staff needs direction from the Authority since they intend to bring an ordinance to Council in the future to officially set the fee for temporary permits. She noted that since the statute reads up to $100, the Clerk's Office cannot collect a fee until a specific amount is designated. She indicated that if the Authority is going to give any administrative authorization to staff, they want to bring it to Council at the same time as the request to set the fee. Authority member Norton made a motion, seconded by Authority member Guerrie, to keep the authority for granting temporary permits with the Liquor Licensing Authority. Authority member Poncelow expressed her willingness to give the authority to staff, but wondered about occasions when the wrong people might be granted a temporary license. Ms. Harris stated that a third option would be not to grant any temporary permits. She indicated an NCIC and CCIC check will still be made before granting temporary permits. She noted that the Authority would still have power to revoke a temporary permit based on probable cause. She pointed out that if the Authority wants to keep this power, they would have to have special meetings with a quorum present. Authority member Crowfoot asked if there could be a ruling that can apply only for temporary permits within the three days before the next meeting. Ms. Harris explained that temporary licenses cannot be applied for until after a transfer of ownership has been submitted, and the application deadline for a transfer of ownership is the first working day of the month for that month's meeting (on the fourth Wednesday). She stated if a transfer of ownership application was filed on the first working day of the month and the temporary permit application was held and filed 3 days before the meeting on the fourth Wednesday, the transfer of ownership application and temporary permit application would be considered at the same meeting. She stated the net effect would be that the applicant would hold a temporary permit for the approximately 2-week period 11 • August 28, 1991 it takes the State to process the transfer of ownership application. Authority member Mael stated he would not support the motion because he believes staff is more knowledgeable in these issues than the Authority and has instant access to Assistant City Attorney John Duval and other staff members to make decisions on whether or not a permit should be granted. He indicated he believes giving the authority to staff would simplify the process. Ms. Harris explained that the temporary permit is designed to replace management agreements. She noted that last year the Authority considered 13 transfer of ownership applications. Assistant City Attorney John Duval stated the Authority would probably see a temporary permit application with every transfer of ownership application because people are transferring the business before they get any approval for transfer of the license. Ms. Harris pointed out that occasionally there is a transfer of ownership on an establishment that has been closed and noted that a temporary permit would not be available under those circumstances. Authority member Crowfoot asked what staff would do if a person who applies is of questionable status. Ms. Harris stated she believes staff would have the same discretion the Authority would have in issuing a permit. Assistant City Attorney John Duval stated that the Authority could probably draft an ordinance that would have certain criteria in it to define fairly narrowly which permits would be granted under what circumstances, such as if a felony conviction or certain misdemeanors showed up on an applicant's record, the applicant automatically couldn't get a temporary permit. Ms. Harris stated that they would bring a draft of an ordinance to the Authority for recommendation. She indicated the process would take several months to get the ordinance approved by Council. She noted that if she were issuing the temporary permits, due to time limitations, she would base the decision on the Police Department's recommendation. She stated she believes it would be good to have specific criteria if the Authority gave these decisions to staff to make. She indicated she did not have a preference either way whether she issued the permits or the Authority retained this power, that the amount of work would be the same either way. Authority member Crowfoot expressed her concern with the motion since it would require a quorum to issue temporary permits within three days. Authority member Norton stated she would like to try it this way and see what's involved, and if it became cumbersome, then adapt to the situation. The vote on Authority member Norton's motion to keep the authority for granting temporary licenses with the Liquor Licensing Authority was as follows: Yeas: Norton. Nays: Crowfoot, Guerrie, Mael, and Poncelow. August 28, 1991 THE MOTION CARRIED. Authority member Mae] made a motion, seconded by Authority member Crowfoot, to have staff establish a process for administrative issuance of temporary permits. Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Authority member Poncelow suggested Authority members contact Ms. Harris when they will be unable to attend a regularly -scheduled meeting. Adjournment Authority member Crowfoot made a motion, seconded by Authority member Norton, to adjourn. Yeas: Crowfoot, Guerrie, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. The meeting was adjourned at approximately 10:45 p.m. if f &*W1,5 Secretary CCFairperson