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HomeMy WebLinkAboutLiquor Licensing Authority - Minutes - 12/16/1992A regular meeting of the Liquor Licensing Authority was held on Wednesday, December 16, 1992, in the Council Chambers of the Fort Collins Municipal Building. The following members were present: Cooper, Crowfoot, Poncelow, Schroeer, and Wawro. Authority Members Absent: Mael and Norton Staff Members Present: John Duval, City Attorney's Office Rita Knoll Harris, City Clerk's Office Troy Krenning, 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. Best Bowl, Inc., the tavern licensee for Horsetooth Lanes and Tack Room, 217 West Horsetooth, is reporting a change of corporate officers, directors and shareholders. Donald Wells, previously vice-president, shareholder, and director, is no longer a party in the corporation. John Dayton and Elery Wilmarth now each hold 50% of the shares in the corporation. Report of Change of Corporate Structure for Metro Oil Company, dba A. Vickers #2369, 803 Riverside. B. Vickers #2487, 2025 South College. C. Vickers #2622, 200 West Horsetooth. D. Vickers #2623, 221 West Prospect. This item represents a change of corporate structure for Metro Oil Company, the 3.2% beer licensee for the Vickers stores in Fort Collins. David Bocks is replacing Gerald DeHague as president and a director of the corporation. December 16, 1992 3. Transfer of Ownership of Pizza Hut Restaurant, 2631 South College This is a request to transfer the ownership of Pizza Hut Restaurant, 2631 South College, from Larimer County Pizza Hut, Inc. to Winny Enterprises, Inc. Authority member Poncelow made a motion, seconded by Authority member Cooper, to adopt and approve all items not removed from the Consent Calendar. Yeas: Cooper, Crowfoot, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. Registration of Vince Verbal as Manager of Chili's Hamburger Grill and Bar, 3524 South College, Approved Vince Verbal, manager, stated he had been a restaurant manager with the Chili's organization since 1982 in California and Colorado. He indicated there had been no violations at any of the establishments while he was employed there. He noted that he trains his front restaurant staff with the company's extensive training program that is similar to TIPS training. He stated he needs to become more familiar with the Fort Collins liquor regulations. He indicated that he cards anyone that looks under 40. Authority member Cooper made a motion, seconded by Authority member Schroeer, to approve Vince Verbal as manager of Chili's Hamburger Grill and Bar, 3524 South College. Yeas: Cooper, Crowfoot, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. Report of Change of Manager for Schrader's Country Store #100 320 North College, Approved Craig Moellenberg, manager, stated he has been employed by Schrader's for 9 years but never in a licensed establishment. He indicated that several years ago he attended a 2-hour training program for Schrader's managers provided by the Police Department. He noted he gives a written copy of the city laws to all his employees. In response to the Authority's concern that Mr. Moellenberg has never actually managed a licensed establishment, he stated he had received comprehensive education on liquor laws over the past years. He indicated the company gives a manual stating all the laws to new employees to read and then sign a statement that they have read it. He stated that he instructs his employees to card anyone who is obviously under 30. Authority member Poncelow made a motion, seconded by Authority member Cooper, to approve Craig Moellenberg as manager of Schrader's Country Store #100, 320 North College. Yeas: Cooper, Crowfoot, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. December 16, 1992 Report of Change of Manager for Schrader's Country Store #110, 4524 South College, Approved John Howe, manager, stated he has managed several other Schrader's stores which have been licensed, as well as previously managing Store #110. He indicated there were no violations at any of the stores he managed. He stated he has had experience training other managers. Upon questioning from the Authority, he clarified the dates he has worked for Schrader's, explaining that some of the time was part-time while he also worked for Steele's. Authority member Poncelow made a motion, seconded by Authority member Schroeer, to approve John Howe as manager of Schrader's Country Store #110, 4524 South College. Yeas: Cooper, Crowfoot, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. Report of Change of Manager for Schrader's Country Store #250, 940 South Lemay. Approved Authority member Schroeer stated he knows Ms. Hersh and noted he did not believe that would affect his decision in this matter. Anna Hersh, manager, stated she has had experience as a manager in a licensed establishment. She indicated there were no violations when she worked in this capacity. She also noted that she has trained staff in the liquor laws. Authority member Poncelow made a motion, seconded by Authority member Cooper, to approve Anna Hersh as manager of Schrader's Country Store #250, 940 South Lemay. Yeas: Cooper, Crowfoot, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. Registration of Bindeshor Kakshapati as Manager okf Narayan's Nepal Restaurant, 400 East Olive, Approved Bindeshor Kakshapati, manager, stated he has had experience serving liquor in his employment in California. He indicated he is familiar with the Colorado liquor laws, has had on-the-job training, and plans to take the TIPS training. He noted that he has 5 employees, 2 of whom are Americans. He stated he can read English and would not have a problem checking ID's. He indicated he worked behind the bar in a California restaurant. He noted he does not believe he will have a language problem in training employees at Narayan's. He stated there will be no bar area but he will serve beer and wine only at the tables with meals. u December 16, 1992 Authority member Cooper made a motion, seconded by Authority member Schroeer, to approve Bindeshor Kakshapati as manager of Narayan's Nepal Restaurant, 400 East Olive. Yeas: Cooper, Crowfoot, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. Consideration of an Application from the Community Foundation for a Special Events Permit at Lory Student Center, Approved Diane Hogerty, executive director of the Community Foundation, introduced representatives of the Friends of the Senior Center. Barbara Schoenberger, Recreation Supervisor at the Senior Center, explained that the Mardi Gras ball would be a function coordinated by the Friends of the Senior Center, which is an organization that is beginning to give financial support to the new Senior Center. She stated that the function will be a dance at Lory Student Center on January 30 from 8:00 to 12:00 p.m. with light refreshments, door prizes, costumes, give-aways, and drinks. She indicated that Carolyn's Cuisine will cater the event and provide bartending services. She stated that the manager, Mike McMillan, will be handling the liquor and that he has been licensed at the Lincoln Center for several years. She noted there will be a cash bar. (Secretary's note: the application will be amended to include an hour before and after the requested time to allow for set-up and break -down time--7:00 p.m. to 1:00 a.m.) The Authority cautioned Ms. Schoenberger that even though the liquor will be handled by a contractor, the Community Foundation will still be responsible for what happens with any problems connected with the liquor sales and consumption. Authority member Schroeer made a motion, seconded by Authority member Cooper, to approve the application from the Community Foundation for a special events permit at the Lory Student Center. Yeas: Cooper, Crowfoot, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. Request from Mountain Tap, Inc., dba Mountain Tap Tavern and Cafe, 167-169 North College, to Change, Alter, or Modify the Premises. Found Substantial and Approved Diana Parker, vice-president of Mountain Tap, Inc., stated that East Coast Pizza is going to sublease the kitchen portion of the business. She indicated that the change is that Mountain Tap Tavern and Cafe won't be operating a full kitchen. She noted the establishment wants to add 40 more seats in the space available but December 16, 1992 there will be no structural changes to the walls. She stated that the darts and several tables will be moved into a space that was previously an office but that this is covered by the license already. Secretary Rita Harris explained that the application decreases the total square footage of licensed premises since the kitchen will no longer be part of the licensed premises. Authority member Crowfoot indicated that the Authority should look at Regulation 47-106.2.1, concerning any increase or decrease in the total size of capacity of the licensed premise. Authority member Wawro stated that in terms of the concept of capacity, the Authority was restricting itself to the number of seats as opposed to the physical size. He questioned again that if an open area is licensed with no seats and seating is added later, whether or not you've increased the capacity. Secretary Rita Harris commented that in the past the Authority has asked whether this changes the occupancy load as far as the Fire Department is concerned. Ms. Parker stated that she will be giving the Fire Department a new diagram with the additional seating indicated. She indicated she had not yet given this to the Fire Department for approval. She noted that the current capacity set by the Fire Department is 128. Upon questioning from the Authority, Ms. Parker stated that the liquor glasses used in the bar remain there for cleaning. Secretary Harris clarified that because the established has a beer and wine license, it is required to have sandwiches and light snacks available at all times. She pointed out that in order to do this, they have to be able to meet that requirement independent of East Coast Pizza. She indicated the licensee plans to have a microwave behind the bar. Upon questioning from the Authority, Ms. Parker noted that no one can take liquor glasses into the area that will be leased by East Coast Pizza. She explained there will be chips and microwavable sandwiches for the bar area, but that most of the food will be served by East Coast Pizza. Authority member Cooper made a motion, seconded by Authority member Schroeer, to find that the proposed modification of Mountain Tap, Inc., dba Mountain Tap Tavern and Cafe, 167-169 North College, is substantial. Yeas: Cooper, Crowfoot, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. Diana Parker was sworn. She stated that the reason for making the change was because the kitchen hasn't been successful and that the arrangement with East Coast Pizza would be a more positive move for the customers. She noted that she had not realized they would need to get petitions to make the change. She indicated that East Coast Pizza pays rental to sublease the kitchen, and they keep all their profits. She noted East Coast Pizza will be open almost as late as Mountain Tap and will not be open at any time when Mountain Tap is not. She December 16, 1992 indicated that the premises have been posted, and most of the comments from the public concerning the changes have been positive. Secretary Harris clarified for the Authority that East Coast Pizza could hire 16- year-olds since it will not be a licensed establishment. She noted that she had discussed this application extensively with the State to be sure that this kind of an operation could be done legally, and she believed that Mountain Tap has done the legal work to meet the liquor code requirement. Glen Werth, owner of East Coast Pizza, was sworn. He stated that they have totally renovated the kitchen at Mountain Tap. He noted they are particularly interested in more seating because it will be advantageous to their business also. He indicated that at the present he has no plans to employ people under the age of 21. Ms. Parker stated she has a person who watches the door from Wednesday through Saturday from 9:00 p.m. on who doesn't let anyone in under 21. She noted that during those hours everyone is carded. Authority member Cooper made a motion, seconded by Authority member Poncelow, to approve the modification of Mountain Tap, Inc., dba Mountain Tap Tavern and Cafe, 167-169 North College, contingent on the approval of the Fire Department. Yeas: Cooper, Crowfoot, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. Consideration of an Application from Colorado State University - College of Liberal Arts for a Special Events Permit at Ammons Hall (Secretary's Note: This application was withdrawn by the applicant.) Show Cause Hearing for Rocky Mountain Pasta Company, 1100 West Drake Road Officer Troy Krenning pointed out the Authority had received a letter from the licensee stipulating to the violation. He requested the Authority waive the show cause hearing and accept the stipulation. He indicated, however, he was ready to present evidence necessary to find the violation occurred. In answer to questions from the Authority, he stated he would offer several ideas to handle these unique circumstances since Rocky Mountain Pasta is currently a vacant building up for sale. Assistant City Attorney John Duval indicated he believed it would be a good idea for Officer Krenning to be sworn in and testify as to what he has observed on the premises in order to make a record of the violation. He stated that based on the letter and Officer Krenning's testimony, the Authority could make the decision at that point whether or not there's been a violation and proceed from there. 0 December 16, 1992 Officer Troy Krenning was sworn. He stated that at the April 22, 1992 meeting of the Liquor Licensing Authority, Mr. Slappey was questioned regarding his request for a change of class of license at Rocky Mountain Pasta Company. Officer Krenning offered into evidence the transcript of that meeting, marked as Exhibit A. He noted that on page 3 of the Exhibit there is dialogue between Chairman Mael and Mr. Slappey regarding the changes planned in the restaurant. He stated the Exhibit quotes Mr. Slappey as saying, "We have no plans to feature any live entertainment." Officer Krenning also offered into evidence the transcript of the August 26, 1992, Liquor Licensing Authority meeting (marked as Exhibit D). He noted that Mr. Slappey gave the impression there were no plans to offer live entertainment and that there would be nothing done to substantially alter the licensed premises. Officer Krenning stated that on July 28, a building permit was applied for by the projected manager of Slappey's at the time, for reworking the salad bar to a wet bar, minor electrical and plumbing, and partition walls. Officer Krenning offered for evidence the plan that Slappey's submitted for these changes (Exhibit B). He stated that at the August 26 meeting the Authority was presented with an application for approval of the changes already made, and Mr. Mael made a motion to have a show cause hearing and authorized the Police Department to look into them. Officer Krenning stated he believed there was sufficient evidence to prove that in fact the violation did occur, that the changes were done without the prior approval of the Authority, and that there might have even been some deception projected by Mr. Slappey at the April meeting. He pointed out that in his letter Mr. Slappey admits the bar was installed without obtaining prior approval of the board. Officer Krenning indicated the violation occurred, and at the request of the Authority he has investigated it. He noted he verified that the changes have been made (the salad bar is now a wet bar, there is a parquet dance floor installed, and there was a corner which would allow for live entertainment). He pointed out that they were also advertising live bands on specific nights, and the character of the bar had changed substantially from a sit-down restaurant to a nightclub. (Secretary's note: The letter from Mr. Slappey was marked as Exhibit C.) Assistant City Attorney John Duval found Police Exhibits A through D admissible into evidence. Authority member Cooper made a motion, seconded by Authority member Schroeer, to find that a violation did occur at Rocky Mountain Pasta Company, 1100 West Drake, based on the evidence presented. Yeas: Cooper, Crowfoot, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. Officer Krenning stated that since Rocky Mountain Pasta Company no longer exists, he did not see that there was any penalty to be assessed. He recommended, however, that the Authority issue a letter of reprimand and place it into the December 16, 1992 permanent file of Slappey Mountain Enterprises, Inc., so that in the future if Mr. Slappey should apply for a license, there will be record that a violation did occur and that he in fact was responsible for it. Upon questions from the Authority, Secretary Harris noted that are were no transfers pending on the license but that it was still active with an expiration date of March or April. She indicated the premises could be transferred as a hotel -restaurant license, not necessarily with the same concept as Rocky Mountain Pasta Company, and the applicant would not be able to open prior to getting approval from local and state authorities. In response to questions from the Authority, Assistant City Attorney John Duval stated that upon the transfer of the license, the Authority would be approving whatever is represented as part of the transfer application. He noted that the Authority would be restricted in the decision making to consider only the character of the applicant. He indicated the Authority would not have any say on the prior modification of the premises. Authority member Wawro stated that based on that limitation, he recommends a suspension of the license would be in order --a more severe sanction in order to alleviate the possible future problem with any transfer of the license. Assistant City Attorney John Duval stated he believed a suspension would only act against the current owner, and it would not be good against a new owner. He noted that what the Authority might have to do is revoke the license so that it doesn't exist anymore, and whoever comes in would have to start over with a new application. Authority member Cooper stated his recommendation would be to revoke the license because under the circumstances a letter of reprimand means nothing since the business is closed down. He noted that a new person could apply from the beginning and follow the correct procedures. Assistant City Attorney John Duval pointed out that if the Authority revokes the license, the effect of that would be to prevent a transfer of the license. He stated that would more likely create a reaction from the licensee and possibly some litigation. Authority member Schroeer noted that no one was present to represent the licensee, which indicated to him they have no desire to fight anything that might happen. He pointed out also that merely putting a letter of reprimand in the file would make it very easy for Slappey's to come back and open back up in its present form. Officer Krenning asked if the Authority could ask for a surrender of the license since a revocation carries such a strong penalty. He noted that Mr. Slappey would find it very difficult to obtain a liquor license in the future if this license is revoked. He questioned whether the Authority believes this violation is so serious that the Authority wants to prohibit Mr. Slappey from ever opening a liquor -licensed establishment again. • December 16, 1992 Authority member Cooper stated he did not believe that asking for a surrender of license would accomplish the same purpose as revocation would. He indicated he believed Mr. Slappey was choosing to ignore a violation and trying to get around it by simply closing the establishment. He noted he believed if Mr. Slappey were really concerned about the violation as he stated previously, he would be present tonight to resolve the matter and clear up his license so he could sell the business. Authority member Cooper stated that based on the evidence that was provided and what he had seen and heard, he believes there is a blatant violation and that Mr. Slappey really doesn't care. Secretary Harris pointed out that Mr. Slappey was not present tonight because he is still working on the hurricane relief efforts in Florida, which is something he does not have a choice about. She noted Mr. Slappey had indicated he could not afford an attorney and that is why he offered the letter in lieu of appearing. She indicated that the modification of premises application on this agenda actually goes way back when the Authority first discovered the modifications had occurred and that it has been filed for some time. Authority member Cooper made a motion, seconded by Authority member Poncelow, to revoke the license of Slappey Mountain Enterprises, Inc., dba Rocky Mountain Pasta Company, 1100 West Drake. Authority member Wawro questioned whether denial of the request to change, alter, or modify the premises, would accomplish the same thing as revoking the license. Assistant City Attorney John Duval stated that since the changes have been made already, the decision is being made after the fact. He noted that if the Authority denies the modifications, it doesn't change the fact that the modification has been made. He pointed out that a transfer of ownership could also be made if there were a foreclosure involved. He stated he did not believe denial of the modification application would accomplish the same thing as revoking the license. Authority Member Wawro stated if revocation of this license affects Mr. Slappey's ability to get a license in the future, he didn't believe that's what the Authority wanted to do. He indicated that his concern was that the premises be licensed for what they were intended to be licensed for in the first place --a family -style restaurant and not a nightclub. He noted that if the Authority could accomplish that without a revocation, he would be supportive of that. He indicated he would rather not do the revocation because of the long-term ramifications for Mr. Slappey. Authority member Cooper stated he believes revocation is the only method he sees to get Mr. Slappey's attention for what he believes is a lack of concern on Mr. Slappey's part. Ms. Harris pointed out that the reason the modification of premises application is on the agenda is not at Mr. Slappey's request but because it was tabled by the Authority and it had to be put on this agenda. She noted that Mr. Slappey's wife could not appear in his behalf because she was emotionally unable to do so. In answer to a question from the Authority, Ms. Harris indicated she had discussed with Mr. Slappey the surrendering of his license. December 16, 1992 Authority member Schroeer quoted from the transcripts of the April 22 and August 26 meetings Mr. Slappey's remarks concerning his plans for the establishment, and stated that Mr. Slappey's contradictory behavior indicated the unreliability of his ownership and management of the establishment. He stated he believes Mr. Slappey has not been honest with the Authority. Authority member Poncelow stated she was unclear about the circumstances surrounding the woman who was brought in as manager and her involvement in Mr. Slappey's business. She stated she wanted the Authority to have more control in future business at that location. Authority member Schroeer asked the record to reflect that a strong motivation for revocation was the desire to have more control over the establishment in the future. The vote on the motion was as follows: Yeas Nays: Crowfoot and Wawro. THE MOTION CARRIED. Police Report Cooper, Poncelow, and Schroeer. Officer Troy Krenning introduced the new enforcement officer, Joel Tower, who will be taking over Officer Krenning's position. Officer Krenning stated he will continue to work with the Smiling Moose project and Tanquerayz (Gators). He noted that Police Services has been conducting compliance checks, inspecting approximately 65 establishments in Fort Collins since the last meeting. He stated they have experienced a 20 to 30 percent failure rate. He reported that upon reinspection, they have had 100 percent compliance, thus accomplishing the overall objective. He noted he has spoken with 25 to 30 different establishments since he assumed this position the first of the year concerning liquor code, identification checks, procedures, compliance checks, and liquor authority meetings, and he estimated he has spoken with close to 600 individuals as employees of those establishments. He indicated the requests for talks continue to come in and he is meeting with 2 to 3 establishments a week. He stated he has visited the Smiling Moose and that the Police Department has received no complaints. He noted that the neighbors all seem to be happy with the current situation. He indicated that the Smiling Moose has agreed to shut down at midnight for the time being. He stated he has been invited to participate in a reverse sting, and after Christmas break, he will be going over there and everyone who presents a false ID will be arrested. He expressed his appreciation of his time spent working with the Authority. Authority member Crowfoot thanked Officer Krenning on behalf of the Authority for all he has done since he has been assigned to this position. She noted the good rapport he has established with the liquor establishments. • 11 December 16, 1992 Authority member Cooper expressed his appreciation for the way Officer Krenning has turned around the enforcement program. He stated he would like to recommend the Authority write a letter of appreciation and send it to Chief Rainquet on Officer Krenning's behalf. Officer Joel Tower introduced himself and made a few brief comments. Ad9ournment The meeting was adjourned at approximately 7:50 p.m. Chairperson ✓�c5 Secretary