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HomeMy WebLinkAboutLiquor Licensing Authority - Minutes - 03/25/1992Council Liaison: Bob Winokur 11 Staff Liaison: Rita Knoll A regular meeting of the Liquor Licensing Authority was held on Wednesday, March 25, 1992, in the Council Chambers of the Fort Collins Municipal Building. The following members were present: Mael, Norton, Poncelow, Schroeer, and Wawro. Authority Members Absent: Cooper and Crowfoot Staff Members Present: John Duval, City Attorney's Office Rita Knoll Harris, City Clerk's Office Sandy 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. CooperSmith Brewing Company, the hotel -restaurant licensee for CooperSmith Pub and Brewing, #5 Old Town Square, is reporting a change of corporate officers. John Hickenlooper is replacing Russell Schehrer as a vice- president. Brad Page is replacing John Hickenlooper as treasurer. 2. Transfer of Ownership of Fort Ram, 450 North Linden This is a request to transfer the ownership of Fort Ram, 450 North Linden, from Grad II Restaurants, Inc. to The Graduate Restaurants, Inc. Authority member Poncelow made a motion, seconded by Authority member Norton, to adopt and approve all items not removed from the Consent Calendar. Yeas: Mael, Norton, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. • March 25, 1992 Report of Change of Corporate Structure and New Manager for MCP, Inc., dba Gators. 1220 West Elizabeth. Approved Craig Horning, manager, explained the changes in the corporate structure and his employment as manager. He indicated Thomas Pope sold out his shares in the corporation and noted Tim McKeon and Jack Carlyle bought Mr. Pope's shares. He stated there would be no changes in the operation of the business. Authority member Poncelow made a motion, seconded by Authority member Wawro, to approve the change of corporate structure and to accept Craig Horning as manager of Gators, 1220 West Elizabeth. Yeas: Mael, Norton, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. Transfer of Ownership of E1 Burrito, 404 Linden, Approved Connie Godinez, applicant, explained that her father, Jesse Godinez, is retiring and she is taking over the business. She noted she has worked at the establishment for 10 years. She indicated there would be no major changes in the operation of the establishment. Ms. Godinez stated she will be managing the establishment herself with the help of Phil Campbell, who is currently employed at the establishment. Authority member Norton made a motion, seconded by Authority member Poncelow, to approve the transfer of ownership of E1 Burrito, 404 Linden, from Jesse Godinez to Connie Godinez. Yeas: Mael, Norton, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. Hearing on a Change of Class of License for Rocky Mountain Pasta Company, 1100 West Drake Road. Tabled to April 22, 1992 Authority member Mael noted that the Authority had received a request from the licensee, Slappey Mountain Enterprises, Inc., to table this item to the April 22 meeting. Authority member Norton made a motion, seconded by Authority member Wawro, to table the hearing on a change of class of license for Rocky Mountain Pasta Company, 1100 West Drake Road, to the April 22, 1992 meeting. Yeas: Mael, Norton, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. • • March 25, 1992 Show Cause Hearing for Spirits, 2601 South Lemay #18, Continued to April 22, 1992 Jeff Larson, attorney representing J.B.M.P., Inc. (licensee), requested a continuance of this item. He stated some matters have come up which complicate this particular show cause hearing. He stated Assistant City Attorney John Duval and Officer Krenning have indicated they have no objection to the continuance. Authority member Schroeer made a motion, seconded by Authority member Norton, to continue the show cause hearing for Spirits, 2601 South Lemay #18, at the April 22, 1992 meeting. Yeas: Mael, Norton, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. Police Report Authority member Mael stated Officer Troy Krenning contacted him earlier to indicate he was tied up on another matter and may not be able to attend the meeting. Investigator Sandy Gibson brought the Authority's attention to information provided regarding an unreported disturbance at Sportsmans, 210 Walnut. Ms. Gibson briefly told the Authority about another matter involving Spirits. She stated the matter involves omissions in the original application for transfer of ownership that were recently discovered by the City. She stated she believes Officer Krenning plans to request a show cause hearing. Jeff Larson, attorney representing Spirits, stated apparently a violation related to Mr. Johnson in Longmont in 1989 was not reported in the application for transfer of ownership of Spirits. He stated the issue at hand is whether the licensee should show cause why the license should not be suspended or revoked for not having reported the information in the application. (Secretary's Note: Officer Krenning arrived at this point and requested a few moments to consult with Mr. Larson.) Other Business Authority member Schroeer stated it seems to be a common occurrence that modification of premises applications and manager registrations are approved by the Authority anywhere from three to six months after -the -fact. He stated he would like to entertain the idea of imposing an administrative cost associated with late filing in order to urge licensees to get approval in a timely manner. Authority member Poncelow stated she would like to include trade name changes as items that typically appear late. • • March 25, 1992 Liquor Licensing Specialist Rita Harris pointed out that the lateness of some applications, particularly manager registrations, is often caused by the time it takes to mail appropriate paperwork to the corporate office, which in turn mails it to the new manager. The new manager completes the paperwork, sends it back to the corporate office for signature, and the corporate office sends it to the City Clerk's Office. She stated a three-month delay in that scenario would not be out of line, but a six-month delay would be extreme. Authority member Wawro asked if a letter could be sent to licensees to remind them that they are required to get approval of these items in a timely manner. He mentioned a specific instance where a licensee stated he was not aware he had to get approval from the Liquor Authority for a modification. Ms. Harris pointed out that the notice mailed to a licensee when the liquor license comes up for renewal each year includes a reminder that manager changes, modifications, changes in corporate structure, etc. have to be approved by the Authority. In response to a question from the Authority, she stated she has worked out a system with the Building Inspection Division to have them notify her anytime they receive a building permit request from a liquor -licensed establishment. She stated she then follows up, but at that point, the timing of filing with the Authority is running late. Authority members indicated they did not believe staff should have to chase after licensees to get necessary applications filed. Assistant City Attorney John Duval stated failure to get approval of these items in a timely manner can be considered a violation of the Liquor Code and the Authority could hold a show cause hearing. He stated the Authority could also go to Council with an ordinance establishing a late filing fee. He stated there might be an argument that unless you can relate the late filing fee to additional administrative costs associated with the late filing, the late filing fee is really just a way to impose a penalty without holding a show cause hearing. Mr. Duval stated staff would have to establish what the additional cost is to the City in handling a late application. He stated other fees and costs imposed by the City are mandated by state statute and there could also be arguments that we cannot exceed what state statute allows. He stated the State Liquor Division believes that if we can relate a fee to administrative costs, it may be allowable. Mr. Duval stated he could research the issue and bring back a proposed ordinance. Authority member Poncelow asked if other municipalities charge a similar fee. Ms. Harris indicated she would call other municipalities to get that information. Authority member Norton made a motion, seconded by Authority member Poncelow, to direct the Assistant City Attorney to research the issue of charging an administrative cost for the late filing of miscellaneous applications and, if appropriate, to draft an ordinance establishing such a fee. Yeas: Mael, Norton, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. C, I • March 25, 1992 Authority member Wawro applications which resul suggested the Authority modification. t expressed concerns about modification of premises in a change in character of the establishment. He needs to pay closer attention to that aspect of a Police Report Continued Officer Krenning stated on March 11, Ms. Gibson and Ms. Harris reported to him a discrepancy on the application for transfer of ownership of Spirits which was presented to the Authority last November. He stated two pieces of the application, an Individual History Record completed by Gary Johnson, and the Colorado Liquor License Application completed by Gary Johnson and James Petroff, are in question. He stated he has asked the District Attorney's office to review the case for possible criminal charges involving second degree perjury. Officer Krenning stated he believes the Authority should consider whether any violations of the Liquor Code have occurred. He described the particular questions in each document which seem to have not been answered completely. He stated the documents disclose a two week suspension in 1991 at a liquor store owned by Mr. Johnson in Longmont. He stated that staff has discovered three additional violations at the Longmont establishment in 1989 resulting in an initial 45-day suspension which was not disclosed in the application submitted to this Authority. Officer Krenning stated Mr. Johnson and Mr. Larson have been very cooperative with him in describing the rationale for not disclosing that information to the Authority. In response to a question from the Authority, Officer Krenning stated the 45-day suspension was later reduced by the Authority to something in the 22 day range. He noted that one hearing was held, but that there were three violations considered. In response to a question from the Authority, Ms. Harris stated the information she has received from Longmont indicates that Mr. Johnson was not directly involved in the Longmont violations, but he was an officer in the corporation at the time. She stated at the November meeting where the transfer of ownership application was considered, Mr. Johnson answered questions about the two -week suspension. She stated the Authority did not ask questions about any other violations because the application did not indicate there were any other violations. Authority members asked that a transcript of the November meeting be prepared if the audio tapes are still available. Assistant City Attorney John Duval outlined for the Authority the sections of the Liquor Code that would be relevant in this situation. Authority member Schroeer made a motion, seconded by Authority member Poncelow, to find that probable cause exists to schedule a show cause hearing for Spirits, 2601 South Lemay #18, for alleged violation of Regulation 47-107.1.D. of the Colorado Liquor Code and Section 12-47-111(1)(a)(IV), C.R.S. Yeas: Mael, Norton, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. • March 25, 1992 Mr. Larson requested that the hearing relating to omission of information in the application be held on April 22 and that it be placed on the agenda prior to the other pending show cause hearing scheduled for that date. Officer Krenning spoke of the unreported disturbance at the Sportsmans Bar mentioned earlier by Ms. Gibson. He stated he received information today regarding two other incidents involving the owner, Thomas Wahlberg, that were not reported to the police. He stated he has not had an opportunity to follow up with the alleged victim. He asked if the Authority would like the case to be fully investigated before a show cause hearing is requested. Based on the Authority's positive response, Officer Krenning stated he would bring the information to the Authority at the April meeting. Officer Krenning reported on a meeting held with over 60 representatives from liquor -licensed establishments. He stated the response has been very positive and he believes a new era of open dialogue has begun between the police and license holders. He stated he met today with a woman who is interested in providing TIPS training and indicated the Police Department and this individual hope to begin offering a 10-hour seminar within the next eight weeks. He stated the seminar would consist of eight hours of TIPS training, 1.5 hours presented by the Police Department on unlawful acts and training on the detection of fake ID's, and perhaps a local attorney to discuss liability issues. Authority member Norton passed along positive comments she received from the owner of Match Ups about the March 4 meeting and the current direction of the Police Department on liquor -related matters. Authority member Mael stated the idea of producing a training video was discussed and he asked whether fines collected in lieu of suspension could be allocated to a training program. Staff agreed to research the possibility of appropriating those funds. Officer Krenning stated that, in response to comments at the March 4 meeting that the Police spend too much time targeting the supplier and not those who are using fake ID's, he worked with the owner of Thirsty's Liquor the week after the March 4 meeting in a "reverse" sting operation. He stated he spent less than an hour at the establishment and during that time he made four arrests, one of which was a felony arrest, of people attempting to purchase alcohol using a fake ID. He indicated he would include a copy of the report in the licensee's file. In response to a question from the Authority, Ms. Harris stated The Junction's license is up for renewal in June. She noted that notice of the renewal hearing can not be given until an application for renewal has been submitted. She stated she hopes to receive the renewal application in time to schedule the hearing for the May meeting, but it may be as late as the June meeting. r-I LJ 0 March 25, 1992 Addournment Authority member Norton made a motion, seconded by Authority member Schroeer, to adjourn. Yeas: Mael, Norton, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. The meeting was adjourned at approximately 7:30"p.m. j c/� �noG� i�ii5 airpe ecretary