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HomeMy WebLinkAboutLiquor Licensing Authority - Minutes - 12/02/1981LIQUOR LICENSING AUTHORITY Special Meeting December 2, 1981 - 6:30 p.m. A special meeting of the Liquor Licensing Authority was held at 6:30 p.m. on Wednesday, December 2, 1981, in the City Council Chambers of the City Municipal Building at 300 Laporte Avenue, Fort Collins, Colorado. Present: Authority members Bujack, Long, Oldham, Seegmiller, and Wilson. Also Present: Deputy City Clerk Molly Davis, Assistant City Attorney Greg Denton, and Detective Ken Kirchhoff. Show/Cause Hearing Ponderosa Liquors, 3836 South College Avenue Letter of Reprimand Issued James P. Johnson, attorney representing the licensee, addressed the Author- ity concerning training provided to employees at the establishment and the circumstances of the violation which occurred at Ponderosa Liquors on September 11, 1981. He stated that the business has attempted to be more alert to possible underage purchases since the incident. The license has been held for 19 years with no previous violations. He recommended a mild penalty in light of the circumstances. Assistant City Attorney Denton asked Mr. Johnson if he would stipulate to the violation. Mr. Johnson stated, that he would stipulate to the sale of liquor to a minor. Authority member Bujack made a motion, seconded by Authority member Oldham, to find that a violation did occur on September 11, 1981. Yeas: Authority members Bujack, Long, Oldham, Seegmiller, and Wilson. Nays: None. Assistant City 'Attorney Denton stated that the Police Department recom- mendation is based on a possible December incident that has not yet come before the Authority. Mr. Johnson stated that the establishment has become more alert to checking ID's and realizes that the clerk made a mistake in the September 11 inci- dent. Authority member Bujack made a motion, seconded by Authority member Long, to issue a strongly worded letter of reprimand to The Ponderosa, 3836 South College Avenue. Yeas: Authority members Bujack, Long, Oldham, Seegmiller, and Wilson. Nays: None. -2- December 2, 1981 Show/Cause Hearing Paul's Pizza, 1301 West Elizabeth Continued to January 6 1982 Meeting Rock Sorenson, attorney representing the establishment, requested a contin- uance of the hearing on this matter because the person cited in the inci- dent for selling to a minor is out of town and reluctant to testify until criminal action on her misdemeanor charge is terminated. Authority member Bujack made a motion, seconded by Authority member Wilson, to continue this hearing to the meeting of January 6, 1982. Yeas: Author- ity members Bujack, Oldham, Seegmiller, and Wilson. Nays: Authority member Long. Show/Cause Hearing Pizza Hut, 2631 South College Avenue To Be Rescheduled The notice of this show/cause hearing was returned as undeliverable. The Authority directed that the hearing be rescheduled by the City Clerk's Office. c Show/Cause Hearing Winston's, 3905 South College Avenue Letter of Reprimand Issued Assistant City Attorney Denton stated that counsel for the establishment wished to stipulate to the .violation that occurred on September 11, 1981. Tom Metcalf, attorney for Winston's, stated that he would stipulate to the allegation that a sale to a person 17 years old did occur. Authority member Oldham made a motion, seconded by Authority member Long, to find that a violation did occur on September 11, 1981. Yeas: Authority members Bujack, Long, Oldham, Seegmiller, and Wilson. Nays: None. Authority member Wilson then made a motion, seconded by Authority member Oldham, to find that two persons were sold alcohol in one transaction but this would be considered as one violation for underage sale. Yeas: Authority members Oldham, Seegmiller, and Wilson. Nays: Authority members Bujack and Long. Ron Rusnak, general manager of Winston's, was called by Mr. Metcalf and sworn by the Court Reporter. He presented testimony on training provided to employees of Winston's and his efforts to obtain additional training -3- December 2, 1981 from the Police Department on checking ID's. He also summarized Winston's current policies on checking ID's for persons appearing to be under age 25 and stated that the employee involved in selling to an underage person had been placed on probation for violation of company policy in not checking the ID's in this incident. Attorney Metcalf stated that Winston's has attempted to obey the liquor laws. Sharon Messer was called by Mr. Metcalf to present testimony and was sworn by the Court Reporter. She stated that she was the bartender who sold liquor to two persons not of age and testified to the circumstances sur- rounding that incident. She stated that she was negligent in not checking the ID's in this case and that she was aware of company policy requiring carding of any person appearing to be under age 25. She further stated that she had been charged with a misdemeanor in this incident, that she was suspended from employment for one week with no pay, that she was fined $88 by the Court, and that she is currently on probation at Winston's. Detective Kirchhoff was sworn by the Court Reporter. He commented on his contact with Mr. Resnak on setting up training for Winston's employees and stated that he had been willing to do so if a larger group training session could be arranged. He stated that Mr. Resnak had not contacted him again after that conversation. Mr. Metcalf stated that Winston's has attempted to prevent future incidents by discontinuing the Friday afternoon cocktail hour which contributed to the September 11th violation. Assistant City Attorney Denton stated that there have been no previous violations and the Police Department recommendation is for suspension for a term to be determined by the Liquor Licensing Authority. Authority member Long commented that the Authority's action on any viola- tion should not necessarily be cause for dismissal of an employee involved in any incident, since an employee who makes a mistake might become a better employee. Authority member Wilson made a motion, seconded by Authority member Bujack, to issue a strongly worded letter of reprimand to Winston's, 3905 South College Avenue. Yeas: Authority members Bujack, Long, Seegmiller, and Wilson. Nays: Authority member Oldham. Show/Cause Hearing 7-Eleven, 3035 West Prospect To Be Rescheduled The notice of this show/cause hearing was returned as undeliverable. The Authority directed that the hearing be rescheduled by the City Clerk's Office. December 2, 1981 Transfer of Ownership From The Great Northern Exchange, Inc. to William R. Starke dba Northern Centennial Restaurant Approved David Osborn, attorney representing Mr. Starke, stated that the existing license for The Northern Hotel would have expired on December 5th, and this transfer is to preserve the status quo of the license. William Starke was called by Mr. Osborn and sworn by the Court Reporter. He testified as to his plans for operation and reopening of the business and tentative arrangements for leasing the premises. Attorney Osborn stated that the transfer is being done with the consent of the tranferring corporation. Assistant City Attorney Denton asked about possible foreclosure proceedings on this business. Attorney Osborn stated that Mr. Starke is now the fee simple owner and all mortgages are current, and that Mr. Starke has clear possession of the premises. Chairman Seegmiller asked about the status of the license if the premises would be abandoned for any period of time. Assistant City Attorney Denton stated that if a license is not used for one year, it can be revoked by the Authority. Chairman Seegmiller stated that he favors this transfer but reserved the right to have the issue come back to the Authority if the license is not used within the one-year period. Authority member Bujack made a motion, seconded by Authority member Wilson, to approve the transfer of ownership pending a negative police report. Yeas: Authority members Bujack, Long, Oldham, Seegmiller, and Wilson. Nays: None. Show/Cause Hearing Spring Creek Liquors, 1005 West Stuart Letter of Reprimand Issued Authority member Oldham withdrew from discussion and voting on this matter. Jim Martell, attorney representing Spring Creek Liquors, stated that he would stipulate to the sale of liquor to a minor. -5- December 2, 1981 Douglas Beck, 1730 Whedbee Street, was called by Mr. Denton and sworn by the Court Reporter. He stated that his date of birth is December 2, 1960, and that he was involved in the September 11th Police operation and pur- chased wine at Spring Creek liquors on that date. At the time of the purchase he was not of legal age and no ID was requested by the liquor store clerk. Attorney Martell stipulated to the violation. Authority member Bujack made a motion, seconded by Authority member Long, to find that a violation did occur on September 11th. Yeas: Authority members Bujack, Long, Seegmiller, and Wilson. Nays: None. (Authority member Oldham out of the room.) Attorney Martell stated that there were mitigating circumstances in this incident. Robin Jones, 1907 Waters Edge, was called by Mr. Martell and was 'sworn by the Court Reporter. He stated that he is the owner of Spring Creek Liquors and presented testimony on training programs for his employees and policy changes made since the September incident. Attorney Martell presented Exhibits A, B, C, and D, as documentation for the policy changes made following the incident. Assistant City Attorney Denton stated that Exhibits A, B, C, and D were admissible. Kay Kilpatrick, 2407 Farghee, was called by Mr. Martell and sworn by the Court Reporter. She stated that she is the manager for Spring Creek Liquors and Handi-Foods employeed by Mr. Jones. She presented testimony concerning training of employees and stated that the employee involved in the sale to a minor in September had resigned because of new pressures to check ID's and personal liability in checking ID's. She also stated that incidents following September 11th with minors attempting to buy liquor have been reported to the Police Department. Attorney Martell presented Exhibits E, F, and G, which are the Police reports on these incidents reported by Spring Creek Liquors. Assistant City Attorney Denton stated that Exhibits E, F, and G were admissible. Attorney Martell then stated that the Police Department had made other attempts on September 11th to purchase liquor from Spring Creek Liquors and Handi-Foods, but those attempts had not succeeded. The incident was a mistake in judgment and does not indicate a pattern of failing to check ID's. The store's policies have been made stricter, and steps have been taken to prevent future mistakes. -6- December 2, 1981 Assistant City Attorney Denton stated that the Police Department's recom- mendation is for a letter of reprimand. Detective Ray Martinez appeared and was sworn by the Court Reporter. He presented testimony concerning his contact with Mr. Jones on September 11th at the time of the incident. Attorney Martell stated that Mr. Jones' reaction at the time of the inci- dent was not inconsistent with the traumatic nature of the incident, and he had shown his willingness to take action to prevent future incidents. Assistant City Attorney Denton stated that there had been no previous violations. Authority member Bujack made a motion, seconded by Authority member Long, to issue a strongly worded letter of reprimand to Spring Creek Liquors. Yeas: Authority members Bujack, Long, and Wilson. Nays: Authority member Seegmiller. (Authority member Oldham out of the room). Show/Cause Hearing Ace Liquors, 200 East.Mountain Avenue Action Tabled to December 9, 1981 Authority member Oldham returned to the meeting at this time. Assistant City Attorney Denton stated that counsel for Ace Liquors wished to stipulate to two violations that occurred in two separate incidents on September 11th. Dick Gast, attorney for Ace Liquors, stated that he would so stipulate. Authority member Bujack made a motion, seconded by Authority member Wilson, to find that two violations occurred on September 11th. Yeas; Authority members Bujack, Long, Oldham, Seegmiller, and Wilson. Nays: None. Attorney Gast spoke about measures taken by the owners to provide closer supervision and more training for employees. All ID's are to be checked. Mr. and Mrs. Chung, the owners, are attempting to sell the store and believe that the saleability of the business depends on the liquor license not being revoked. He further stated that the Chungs recognize that these violations have occurred and will accept the punishment to be meted out by the Liquor Licensing Authority. Their concern is mainly for the gravity of the punishment, and they would request that the Authority suspend the license rather than revoke it. Authority member Wilson stated that she agreed that the Chungs are ill - suited for the liquor business. -7- December 2, 1981 Chairman Seegmiller stated that this has been a problem license since originally issued for that location. He wanted to explore other options besides revocation because of the financial burden revocation would place on the owners. Assistant City Attorney Denton stated that the Authority does not have the power to suspend the license conditioned on sale of the business. He stated that the Authority's options are as follows: 1) revocation of the license; 2) revocation with conditions; or 3) suspension for from one day to six months. He further stated that the Authority could condition a revocation of the license on failure of the owners to divest themselves of the license within 3 months, but that the Chungs would be allowed to continue the operation of the business for that period of time. The Authority could also require that no sales would be allowed during that period of time. He stated that a conditional revocation would be an innovative punishment, and the Authority has wide discretion to take this type of action. (Secretary's note: The Authority recessed briefly for Mr. Gast to confer with his clients in private.) Mr. Gast stated that the Chungs would ask the Authority for a revocation of the license, with the revocation to be held in abeyance for 3 months and to then take effect if the business is not sold within that period of time. Authority member Wilson stated that the Authority could take the option to table action on this matter until the next meeting. Assistant City Attorney Denton stated that any action taken at that time would be based on the evidence presented at this hearing and at that meeting. Authority member Bujack made a motion, seconded by Authority member Wilson, to table this item to the regular Authority meeting of December 9, 1981. Yeas: Authority members Bujack, Long, Oldham, Seegmiller, and Wilson. Nays: None. Adjournment The meeting adjourned at 9:45 p.m. rman ATTEST: Secretary