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HomeMy WebLinkAboutLiquor Licensing Authority - Minutes - 01/31/199011 • LIQUOR LICENSING AUTHORITY MINUTES Regular Meeting - January 31, 1990 6:34 p.m. A regular meeting of the Liquor Licensing Authority was held on Wednesday, January 31, 1990, in the Council Chambers of the Fort Collins Municipal Building. The following members were present: Cooper, Crowfoot, Garber, Mael, Norton, and Poncelow. Authority member absent: Guerrie. Staff Members Present: John Duval, City Attorney's Office Rita Knoll, City Clerk's Office Sandy Gibson, Police Department Consent Calendar This 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 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. Items of extreme controversy will be discussed near the end of the meeting under Pulled Consent Items. 1. Consider approval of the minutes of the January 3 1990 regular meeting. Authority member Crowfoot made a motion, seconded by Authority member Garber, to adopt and approve all items not removed from the Consent Calendar. Yeas: Cooper, Crowfoot, Garber, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Report of Manager for King Soopers #18, 2325 South College. Approved Rishel Witham, manager, stated he has been manager at the store for approximately five years. He stated there was one violation at the store over two years ago. He spoke of changes that were made following that violation and noted that carding has increased. Authority member Garber made a motion, seconded by Authority member Cooper, to approve Rishel Witham as manager of King Soopers #18, 2325 South College. Yeas: Cooper, Crowfoot, Garber, Mael, Norton, and Poncelow. Nays: None. • January 31, 1990 THE MOTION CARRIED. Report of for Schrader's Country Store Rodney Thompson, manager, stated he has been the manager at this location for approximately 4 months. He explained that he was previously the manager at this location and then transferred to another location and was recently brought back to this store. He stated there was one violation at the store approximately 3 years ago. He indicated that Schrader Oil Company subsequently stiffened its employee training and carding policies. In response to questions from the Authority, Mr. Thompson spoke of a pending charge relating to possession of marijuana. He described the circumstances surrounding his arrest, and stated he is innocent. He indicated he is currently pursuing a degree in criminal justice and stated he is against drug use. Authority member Garber made a motion, seconded by Authority member Crowfoot, to approve Rodney Thompson as manager of Schrader's Country Store #100, 320 North College. Authority member Cooper stated he was not comfortable voting on this manager registration until the pending criminal case is resolved. In response to a question from the Authority, Assistant City Attorney Duval stated the Authority could approve the manager with a condition that the manager must reappear before the Authority if he is convicted of the pending charge. Authority members Garber and Crowfoot agreed to amend their motion to approve Rodney Thompson as manager of Schrader's Country Store #100 contingent upon Mr. Thompson being found not guilty of the pending charge and that if Mr. Thompson is found guilty he must reappear before the Authority. The vote on Authority member Garber's motion as amended was as follows: Yeas: Cooper, Crowfoot, Garber, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Report of Manager for Schrader's Country Store #250, 940 South Lemav Approved Authority member Crowfoot stated she has a personal relationship with Krista Hill and her family and indicated she did not believe that would affect her decision in this matter. Krista Hill, manager, stated she is the first manager at this store since Schrader Oil Company bought it in 1989. She clarified incomplete information on her employment record and stated she has had no previous • • January 31, 1990 experience with liquor sales prior to becoming that manager at this store. She spoke of the training she received and the training she would provide to other employees. Authority member Garber made a motion, seconded by Authority member Norton, to approve Krista Hill as manager of Schrader's Country Store #250, 940 South Lemay. Authority member Cooper stressed to Ms. Hill that it was her responsibility to run the store properly and encouraged Ms. Hill to read the codes applicable to 3.2% beer licenses. The vote on Authority member Garber's motion to approve Krista Hill as manager was as follows: Yeas: Cooper, Crowfoot, Garber, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Report of Manager for Pizza Hut Restaurant, 2631 South College, Approved Mary Pecar, manager, stated she has been the manager at this location for approximately one year. She indicated she was not aware of the requirement to register as the manager until she received a letter from the City Clerk's Office. She stated she has worked for Pizza Hut for seven years and spoke of her familiarity with serving beer. Ms. Pecar described the training she provides to employees and policies regarding alcohol service. She indicated that there had been no violations at the Pizza Hut establishments where she worked. Authority member Norton made a motion, seconded by Authority member Mael, to approve Mary Pecar as manager of Pizza Hut Restaurant, 2631 South College. Yeas: Cooper, Crowfoot, Garber, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Report of Manager for Panhandler's Pizza, 1220 West Elizabeth, Approved Nancy Brown, manager, indicated she has been the manager since 1983. She stated there have been no violations at the establishment while she has been the manager and noted that there was a show cause hearing held last year and that the charges were dismissed. Authority member Mael made a motion, seconded by Authority member Garber, to approve Nancy Brown as manager of Panhandler's Pizza, 1220 West Elizabeth. Yeas: Cooper, Crowfoot, Garber, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. n \J • January 31, 1990 Report of Manager for Diamond Shamrock Food Mart. 1113 West Drake, Approved Marie Byrne, manager, stated she has been the manager at this establishment since 1987 and indicated she believed she had already completed a manager registration. Secretary Rita Knoll stated the file for this establishment shows no record of Ms. Byrne being registered as the manager. Ms. Byrne stated there have been no violations at the establishment. She stated she worked as a cashier for Diamond Shamrock prior to becoming the manager. She described training that employees receive. Authority member Garber made a motion, seconded by Authority member Cooper, to approve Marie Byrne as manager of Diamond Shamrock Food Mart, 1113 West Drake. Yeas: Cooper, Crowfoot, Garber, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Report of Manager for Vicker's #2623, 221 West Prospect Road, Approved Scott Brownlea, manager, apologized for missing the last meeting of the Authority and explained that he was ill. He stated he has been employed by Total Petroleum since 1981 and indicated he has been the manager at this location since November, 1989. He outlined his employment history with Total Petroleum and indicated it is common for Total Petroleum to move managers around. He spoke of training that is provided to employees and stated there have been no violations at this store. Authority member Cooper made a motion, seconded by Authority member Garber, to approve Scott Brownlea as manager of Vicker's #2623, 221 West Prospect. Yeas: Cooper, Crowfoot, Garber, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Report of Change of Corporate Structure for Ben -Car Corporation, dba Spring Creek Bar and Grill 1006 Sprina Creek Lane Approved Authority member Mael indicated he was acquainted with Mr. Ness, one of the corporate officers, and stated he did not believe that would affect his decision in this matter. Authority member Crowfoot disclosed she was also acquainted with Mr. Ness. • • January 31, 1990 Mr. Ness stated he did not object to Authority members Mael and Crowfoot participating in this item. Elizabeth Bartek stated she is replacing Les Leal as secretary/treasurer of the corporation and will be acting as manager of the establishment. She stated she has been the manager since June of 1989 and explained the reasons for the delay in filing this application. She stated there were no violations at other liquor -licensed establishments were she has worked. Ms. Bartek indicated that since she became manager, she has enhanced the training provided to employees and described the training procedures. Mary Ness stated this change of corporate structure makes him the president and sole shareholder of Ben -Car Corporation. Authority member Garber made a motion, seconded by Authority member Cooper, to approve the change of corporate structure for Ben -Car Corporation, dba Spring Creek Bar and Grill, 1006 Spring Creek Lane. Yeas: Cooper, Crowfoot, Garber, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Show Cause Hearing for Saddle Up Liquors, 1015 South Taft Hill Road Authority member Poncelow withdrew from consideration and vote on this item due to a perceived conflict of interest. Authority member Garber reviewed the show cause hearing procedures. Wallace Prugh, attorney representing the licensee, stipulated to the facts of the incident as set forth in the Police Report. He stated the licensee's position is that this incident was completely unauthorized and unpredictable. He noted that the employee was fired immediately following the incident. He stated the issue was whether or not the facts constitute a violation on the part of the licensee. He stated he intended to present evidence showing there was no indication prior to the incident of any problem with the employee. He stated he would not be challenging the facts as presented by the Police Department. Authority member Garber reviewed the three charges against the licensee. He asked if the licensee was stipulating to any or all of those charges. Mr. Prugh stated they were not stipulating to the charges, but only to the facts as contained in the Police Report. Police Officer Scott Goff was sworn. He stated the police report contains most of the information pertaining to this case. He stated the Authority should note in the report that Mr. Odgaard indicated there was a direct relationship between him and the owners of the establishment. He stated he had no way of verifying if that information was accurate. Officer Goff stated Mr. Odgaard indicated the relationship was of a grandmother/ • January 31, 1990 grandfather nature. He stated a hand-held intoxilizer indicated Mr. Odgaard's alcohol level was .387 and that the actual alcohol level was higher. He stated he believed the owners probably had prior knowledge about this individual when he was hired. In response to cross-examination by Mr. Prugh, Officer Goff stated Mr. Odgaard indicated the owners had known him in the past. He stated he believed at Mr. Odgaard's level of intoxication, it would be difficult for anyone who knew Mr. Odgaard to be unaware of a drinking problem. He stated he had no information, other than Mr. Odgaard's indication of a prior relationship, to indicate that Mrs. Friedlan was aware that Mr. Odgaard had a drinking problem. Officer Goff stated Mr. Odgaard specifically told him he was a relative of the Friedlans and that the Friedlans had known him for years. At the request of the Authority, Officer Goff outlined the events surrounding this incident. He stated the Fire Department and ambulance were called for a seizure patient at Saddle Up Liquors. He stated the Fire Department and ambulance personnel contacted Mr. Odgaard who told them they could not enter the store and physically pushed them out the door. He stated the Fire Department then called for assistance from the Police Department. Officer Goff indicated that the medical personnel were unable to check for the person having seizures and noted Mr. Odgaard was not having seizures. He stated when he and Officer Larkin arrived, the medical personnel indicated they believed Mr. Odgaard was intoxicated and that they had not seen anyone else. Officer Goff stated when he and Officer Larkin entered the store they were confronted by Mr. Odgaard who stated he was in charge of the store. He stated other officers moved to the back of the establishment looking for who was really in charge of the store. He stated Mr. Odgaard became extremely agitated and began pushing the officers out of the store. He stated Mr. Odgaard was warned to stop and after he attempted to push the officers out of the store again, he was arrested. Officer Goff noted there was no one else in the store and upon Mr. Odgaard's arrest there was no one in the store to take responsibility for the liquor license. He noted Mr. Odgaard was extremely intoxicated and acting in a very disorderly manner. He stated Mr. Odgaard was originally arrested for failure to permit inspection of the premises. He pointed out that an individual does not reach an intoxication level of .387 unless there is a long-standing record of alcohol abuse. Officer Goff stated that upon receiving the results of Mr. Odgaard's blood alcohol level, he could not believe that he was still walking and talking. Officer Goff commented that many normal people would be dead at that particular alcohol level. In response to questions from the Authority, Officer Goff stated he believed Mr. Odgaard knew what he was saying to the officers. He indicated Mr. Odgaard threatened the lives of all personnel on scene. He stated Mr. Odgaard was coherent enough to tell him the name of the owner and that there was a relationship with the owners. He stated Mr. Odgaard was aware of what was going on and that he had been arrested. He stated all personnel were dressed in uniform. In response to cross-examination by Mr. Prugh, Officer Goff stated Mr. Odgaard threatened his life and the lives of his family. • • January 31, 1990 Doug Newberry, Poudre Fire Authority and Poudre Valley Ambulance Service, was sworn. He stated at the time of the incident he was working for the ambulance service. He stated they received a call of a possible seizure patient at Saddle Up Liquors and indicated that upon arrival there were two customers in the store in addition to Mr. Odgaard. He stated the people who witnessed the seizure had left the store after placing the call for help. Mr. Newberry stated Mr. Odgaard was very belligerent and was aware that they were paramedics and firefighters. He stated that Mr. Odgaard was so belligerent they believed it would be safest for all parties involved to back out of the store. He stated they then asked the Police Department to intervene. Mr. Newberry stated he requested Mr. Odgaard be transported to the hospital by the Police Department instead of the ambulance in order to ensure the safety of the paramedics and Mr. Odgaard. He indicated he had been a paramedic for 13 years and stated Mr. Odgaard appeared to be very intoxicated. Mr. Newberry stated Mr. Odgaard indicated to him that he was the owner of the store. In response to questions from the Authority, Mr. Newberry stated it appeared that it was Mr. Odgaard who had the seizure. He stated the people who placed the call to 911 had left the scene prior to the paramedics' arrival. He stated he talked with the two customers in the store who said they did not witness the seizure, but indicated that Mr. Odgaard was acting unusual when they entered the store. Mr. Newberry indicated that Mr. Odgaard did not appear to have a classic seizure and noted Mr. Odgaard was aware of who he was, where he was, who the paramedics were, and the time of day. He stated that the ambulance arrived on scene first, and the Fire Department arrived within a minute. He stated the store was open for business when they arrived. He indicated that he did not observe any open containers in the business or anyone consuming alcohol. Steve Fleming, Poudre Fire Authority, was sworn. He stated he contacted the dispatcher to determine how the 911 call came in. He stated apparently some customers in the business witnessed Mr. Odgaard fall down behind the counter and went home and called in a seizure at the store. He stated there were two paramedics and three firefighters on the scene. He stated it was his responsibility to evaluate the situation upon arrival. Mr. Fleming indicated Mr. Odgaard was violent and against any type of government worker, and noted the situation was very threatening. He stated the situation was so intense, he activated the emergency button on the computer aided dispatch unit to request police assistance. He indicated five or six police officers were on the scene within minutes. Mr. Fleming noted Mr. Odgaard indicated he was the owner of the establishment. He stated he could smell alcohol on Mr. Odgaard's breath and spoke of Mr. Odgaard's threatening nature. In response to a question from the Authority, Mr. Fleming stated that the fire and medical personnel did not escort Mr. Odgaard to the hospital. Police Officer Suzanne Larkin was sworn. She stated she was training a new officer when they responded to the scene and stated she assisted the new officer in checking the store for other occupants. Officer Larkin stated she had prior knowledge that Mr. Odgaard was not the owner of the • • January 31, 1990 establishment and noted she has met Mr. Friedlan. She stated they did not find any open containers in the establishment. She indicated it was her understanding that Mr. Odgaard is Mr. Friedlan's godson, and noted Mr. Friedlan verified that information when he arrived at the scene. In response to cross-examination by Mr. Prugh, Officer Larkin stated the new officer called Mr. and Mrs. Friedlan at their home in Loveland and stated Mr. Friedlan arrived and reopened the store for business for the remainder of the evening. In response to questions from the Authority, Officer Larkin stated Mr. Friedlan owns Rams Liquor and she knows him from that establishment. She stated Mr. Friedlan indicated to her that he had never noticed a prior problem with Mr. Odgaard. She stated Mr. Friedlan did not act surprised by the incident, but he was curious about where Mr. Odgaard had been taken. Police Officer Tom Reznik was sworn and stated he responded to the scene when the emergency button was activated. He explained that when an emergency button is hit with no further explanation, it is deemed to be a life -threatening situation. He stated he accompanied Officer Goff in transporting Mr. Odgaard to the hospital. Officer Reznik stated Mr. Odgaard maintained extremely belligerent behavior at the hospital. He stated he was sexually aggressive toward the female nurses and police officers. He stated Mr. Odgaard's words were calculated and direct. Officer Reznik indicated Mr. Odgaard, on several occasions, threatened to kill him and his family and that if he couldn't do it, his attorney would do it because he was a hit man. He indicated Mr. Odgaard was very intoxicated and that he made several statements regarding the fact that he was a Vietnam veteran and he could carry out his threats. Officer Reznik stated Mr. Odgaard repeatedly told him that he had been involved in drinking for some time and that the police weren't able to tell him that he was drunk because he knew when he was drunk. He stated Mr. Odgaard told him that his grandparents were the owners of the store and that because of that there was nothing the Police Department could do to him. He stated although the Police Department does not have any first-hand prior knowledge of his previous behavior, he believed this was not a first-time incident. In response to questions from the Authority, Officer Reznik described his training and background and noted he has been employed for the Fort Collins Police Department for ten years. He spoke of his training with regard to the consumption of alcohol. Mr. Prugh suggested that the charge of employing a person not of good moral character or reputation was not appropriate in this case. He stated Section 12-47-111(1)(b) states that in making a determination as to character, the authority shall be governed by the provisions of Section 24-5-101, C.R.S., and maintained that Section 24-5-101 does not apply to this particular situation. (Secretary's Note: The Authority took a recess in order to review the provisions of Section 24-5-101.) • • January 31, 1990 Mr. Prugh stated the statute which requires licensees to employ people of good character and reputation refers to something other than alcohol abuse problems. He stated the statute refers to moral turpitude which is generally interpreted to mean very bad practices or actual felony convictions. He argued that having an employee with a serious alcohol abuse problem are properly covered by the other charges made against the licensee. He suggested that one serious incident should not warrant applying the statute regarding moral character. Mr. Prugh stated there has been no evidence that Mrs. Friedlan had any indication that Mr. Odgaard had a problem with alcohol consumption. Assistant City Attorney John Duval stated Mr. Prugh has made two arguments. The first is whether the licensee can be charged with this particular violation and the second is whether the prosecution has met its burden of proof of establishing a prima facie case for a violation of Section 12-47-111. He stated it is up to the Authority to determine whether or not the prosecution has proven the prima facie case. He stated he believed that Mr. Prugh's argument was that this statute does not apply because Mr. Odgaard has not been convicted of a crime of moral turpitude, and the Authority cannot find him not of good moral character if he has not been convicted. Mr. Duval stated he did not believe the case law supports Mr. Prugh's argument. Robert Cummins, 518 South Howes, was sworn. He stated he is currently employed at Saddle Up Liquors and noted he began employment during the first week of December 1989. He stated he actually filled in some nights and weekends during November and noted Mr. Odgaard was working at the establishment at that time. He indicated he worked with Mr. Odgaard approximately 6 times. Mr. Cummins stated when he began employment, Mrs. Friedlan reviewed the policies for operation of the store. He noted that he had worked a Ram Liquor for Mr. Friedlan in 1988/89 and was well aware of what he was required to do. He stated Mrs. Friedlan reiterated the need to be very careful about checking identification of anyone who may not be old enough to purchase alcohol. Mr. Cummins stated before this incident occurred, Mr. Odgaard was a fine employee who appeared to abide by the liquor laws. He indicated he never witnessed Mr. Odgaard drinking on duty and had no idea Mr. Odgaard could cause such a problem. He stated he was asked to work full time following the incident and noted he took over the hours Mr. Odgaard worked. Mr. Cummins indicated that Mr. and Mrs. Friedlan were very upset about the incident. He stated Mrs. Friedlan reviewed the policies with him and described the carding policies. He stated he did not believe Mrs. Friedlan could have prevented the problem and he did not believe the Friedlans were aware that Mr. Odgaard had a problem with alcohol consumption. In response to cross-examination by Officer Goff, Mr. Cummins stated he works the evening shift at the store. He stated he is the manager when he is on duty and noted Mr. Odgaard was the manager at the time of the incident. Mr. Cummins described his duties. He indicated that he was told by Mr. Odgaard that Larry Friedlan was his godfather. January 31, 1990 In response to questions from Mr. Prugh, Mr. Cummins described his work schedule at the store and the availability of Mr. and Mrs. Friedlan if a problem arises. In response to questions from the Authority, Mr. Cummins stated he has been employed at the store for two months. He stated in those two months, Mrs. Friedlan has come in once to check on the store. He indicated Mr. Odgaard came in to the store a few days after the incident because his son was employed to stock the coolers and noted he has not seen Mr. Odgaard since that time. He described the training he received when he was hired at Saddle Up Liquors. Mr. Cummins stated Mr. Friedlan occasionally works at the store. Maria Friedlan, owner, was sworn and stated she purchased the establishment in August. She spoke of the hours she works at the store and the other individuals employed at the store. She stated she and her husband have been in the liquor business for 38 years and have never had a violation. Mrs. Friedlan stated Mr. Odgaard is not her godchild and indicated she knew Mr. Odgaard when he was a child. She stated she was not sure if Mr. Friedlan was Mr. Odgaard's godfather. She indicated Mr. Odgaard worked as a busboy at their establishment in Nebraska when he was 10 or 12 years old. She stated they had not seen Mr. Odgaard since that time until he contacted them to work in the liquor store. Mrs. Friedlan described Mr. Odgaard's assistance in opening the store and indicated she never saw him drink. She stated Mr. Odgaard was very responsible, a hard worker, and very honest. She spoke of the training she provided to employees. She stated Mr. Odgaard was a history professor and was unemployed at the time he contacted them to employment. Mrs. Friedlan stated Mr. Odgaard was working alone in the store at the time of the incident and indicated that a police officer called their home to inform them of the incident. She stated Mr. Friedlan went to the store, but he did not have an opportunity to talk with Mr. Odgaard. Mrs. Friedlan indicated she fired Mr. Odgaard as a result of the incident and she has not seen him since she fired him. She stated Mr. Cummins was hired to replace Mr. Odgaard and noted Mr. Cummins does not drink. She spoke of the training she provided to Mr. Cummins. In response to cross-examination by Officer Goff, Mrs. Friedlan stated she hired Mr. Odgaard to work at the store and stated his employment application indicated he was a history professor in Kansas. Mrs. Friedlan admitted she did not verify Mr. Odgaard prior employment record. She stated his application did not list any prior criminal history. She stated she was aware that Mr. Odgaard was a green beret in Vietnam. She noted she was not aware of any other contacts Mr. Odgaard might have had with the police. Mrs. Friedlan stated she had been in charge of the store during the day shift on the date of the incident and that Mr. Odgaard came in around 5:00 p.m. and was in charge of the store at the time of the incident. She described Mr. Odgaard's duties and noted he was an hourly employee. Mrs. Friedlan indicated she manages the store. In response to questions from the Authority, Mrs. Friedlan indicated she officially hired Mr. Odgaard in August although he helped get the store in order prior to that. She admitted that Mr. Odgaard provided references, • January 31, 1990 but that she did not check the references. Mrs. Friedlan indicated she asked Mr. Odgaard if he was a drinking person and noted Mr. Odgaard stated he occasionally drank beer. She stated she told Mr. Odgaard there would be no drinking when he was at the store and Mr. Odgaard told her he would not do that. She stated when Mr. Odgaard showed up for work on the date of the incident he was sober. She stated she had no indication that Mr. Odgaard had a drinking problem. In response to additional questions from Mr. Prugh, Mrs. Friedlan stated she experienced no problems with Mr. Odgaard prior to this incident and noted she had no indication that Mr. Odgaard would cause any problems. In his closing statements, Officer Goff stated he believed the prosecution had proven the charges of failure to permit inspection and disorderly conduct on the premises. He stated he also believed they had demonstrated that Mr. Odgaard was in charge of the store at the time of the incident and that Mr. Odgaard was responsible for compliance with the liquor laws. Officer Goff stated he was not impressed with Mr. Odgaard's character and reputation after being threatened by him. He noted that the Police Department was in control of the establishment for approximately 40 minutes during and after the incident. Mr. Prugh admitted this was a serious incident and stated they do not dispute the facts as related by the prosecution's witnesses. He stated Mrs. Friedlan is not taking the position that she is not responsible for operation for the store. He stated Mrs. Friedlan took reasonable steps as an employer in hiring Mr. Odgaard. He noted there was no evidence, outside of speculation, that there were any previous incidents of excessive alcohol consumption. Mr. Prugh pointed out that Mrs. Friedlan could not predict or control this one-time incident. He pointed out that Regulation 47-105.1(A), Conduct of Establishment, states that the licensee shall not permit certain things to occur on the premises. He stated Mrs. Friedlan did not authorize Mr. Odgaard's actions. He stated the prosecution did not prove that Mrs. Friedlan permitted this incident to occur. With regard to the charge of violation of Regulation 47-109.1, Mr. Prugh suggested that the regulation was intended to cover a situation where there are violations in recordkeeping and was not appropriately applied in this case. He pointed out that Mrs. Friedlan could not predict the actions of Mr. Odgaard. Mr. Prugh stated that, in considering the third charge of employing someone who is not of good character or reputation, the Authority should determine whether Mrs. Friedlan employed Mr. Odgaard knowing that he was not of good character. He stated that was no indication that Mr. Odgaard had a criminal background or any previous alcohol -related incidents. He stated Mrs. Friedlan took reasonable measures to check on Mr. Odgaard during his employment and noted that Mr. Odgaard worked for four months without any difficulties. He requested that the Authority find that no violation occurred at the establishment. Authority member Cooper made a motion to find that a violation of Section 12-47-111(1)(a)(VI), employing a person not of good character or reputation, did occur. THE MOTION DIED DUE TO LACK OF A SECOND. January 31, 1990 Authority member Norton made a motion, seconded by Authority member Mael, to find that a violation of Regulation 47-109.1, Inspection of the Licensed Premises, did occur. Authority member Norton stated it seemed apparent to her that the licensed premises were not open for inspection and noted that that the Regulation provides that the licensed premises shall be subject to inspection by peace officers during all business hours for the purpose of inspection or investigation. Authority member Garber agreed with that interpretation of the Regulation and pointed out the Regulation goes on to say "or for examination of any books, records, etc. He stated although Mr. Prugh presented a strong argument for the operative word "permit", he did not believe that "permit" necessarily means wanton or willful. He stated he believed it also encompasses negligent behavior of what you would expect a reasonable person to exercise. He stated he did not believe the licensee took reasonable steps to avoid this incident. Authority member Cooper stated he believed the licensee had a responsibility to do further investigation into an employee's background. He stated he believed that if Mrs. Friedlan had called Mr. Odgaard's references she might have found that he was not of good character. He stated in reading Regulation 47-109.1, although he believed Mr. Odgaard impaired the officers, he interpreted the Regulation to be for the purpose in inspecting books and records. He stated he would not support the motion. Authority member Garber stated he believed the Regulation was written for purposes other than the inspection of books and records, specifically for gambling, prostitution, drug sales, etc. Authority member Mael agreed that the Regulation's intent was to cover inspection of records and all aspects of the business side of the establishment, and pointed out that the authorities were legally called to the establishment and needed to conduct an investigation, which the employee failed to allow. The vote on Authority member Norton's motion that a violation Regulation 47-109.1 did occur was as follows: Yeas: Crowfoot, Garber, Mael, and Norton. Nays: Cooper. THE MOTION CARRIED. Officer Goff spoke of the number of personnel who were tied up with this case and the cost involved. He stated he believed a suspension of the license was warranted. In mitigation, Mr. Prugh stated Mrs. Friedlan fired Mr. Odgaard and there does not appear to be any indication that a similar incident may happen again. He stated the licensee has no prior violations. He asked the Authority to consider the fact that Mrs. Friedlan did not condone the • • January 31, 1990 conduct of Mr. Odgaard. He requested the Authority issue a letter of reprimand for this violation. Authority member Norton made a motion to issue a letter of reprimand. THE MOTION DIED DUE TO LACK OF A SECOND. Authority member Crowfoot made a motion, seconded by Authority member Garber, to levy a 1-day suspension to be served within the next 45 days and that the premises be posted. Authority member Crowfoot stated although she believed this was probably a unique situation, she believed the situation was very serious. She stated she considered a 1-day suspension to be a light penalty. Authority member Norton stated although in retrospect what happened and what could have happened was extremely serious, the cost to the City and the time spent by personnel were extreme, she could not support the motion. Authority member Cooper stated he believed a 1-day suspension was too light when looking at the totality of the circumstances. He stated he believed a 3-day suspension would be more appropriate. He stated he believed licensees should be held responsible for taking reasonable care to ensure that they are hiring adequate employees and noted he did not believe adequate care was taken in hiring Mr. Odgaard. He stated since he did not believe a violation of this Regulation occurred, he would not support the motion for a 1-day suspension. Authority member Garber stated he believed the hiring practices were very negligent and indicated he thought there had to be signs that Mr. Odgaard had a drinking problem. Authority member Mael stated he would support the motion and noted that he believed a 1-day suspension was light. The vote on Authority member Crowfoot's motion to levy a 1-day suspension was as follows: Yeas: Crowfoot, Garber, and Mael. Nays: Cooper and Norton. THE MOTION CARRIED. Authority member Cooper made a motion, seconded by Authority member Mael, to find that a violation of Regulation 47-105.1(A) did occur. Authority member Cooper stated he believed that the negligent hiring practices constituted permitting the incident to occur. Authority member Garber stated he believed the conduct of Mr. Odgaard was out of Mrs. Friedlan's control and stated he would not support the motion. The vote on Authority member Cooper's motion to find that a violation of Regulation 47-105.1(A) did occur was as follows: Yeas: Cooper, Crowfoot, and Mael. Nays: Garber and Norton. • • January 31, 1990 THE MOTION CARRIED. Mr. Prugh requested the Authority issue a letter of reprimand for this violation and stated if the Authority believes a suspension is warranted, that it be limited to 1-day to be served concurrently with the previous 1-day suspension. Authority member Cooper made a motion, seconded by Authority member Mael, to levy a 2-day suspension to be served consecutively with the 1-day suspension previously levied and that the total 3 days be served within the next 45 days and that the premises be posted. Authority member Cooper reviewed the facts of the incident and stated he believed a total of 3 days was not an inappropriate suspension. Authority member Mael stated he would support the motion and indicated he believed it was a light penalty. The vote on Authority member Cooper's motion to levy a 2-day suspension was as follows: Yeas: Cooper and Mael. Nays: Crowfoot, Garber, and Norton. THE MOTION FAILED. Authority member Mael made a motion to levy a 15-day suspension to be served within the next 45 days and that the premises be posted. THE MOTION DIED DUE TO LACK OF A SECOND. Authority member Cooper made a motion, seconded by Authority member Crowfoot, to levy a 1-day suspension to be served consecutively with the previous 1-day suspension, to be served within 45 days, and that the premises be posted. Yeas: Cooper, Crowfoot, and Mael. Nays: Garber and Norton. THE MOTION CARRIED. (Secretary's Note: Authority member Crowfoot left the meeting at this point.) Transfer of Ownership of The Gallery at the Fort Collins Club, 1307 East Prospect, Approved Susan Rosenberg, Farwest Savings and Loan Association, representing SAC Gallery, Inc. (applicant), explained the legal issues surrounding transfer of the property. She noted the current manager of the establishment will continue as the manager. She explained the structure of Farwest Savings and Loan and Farwest Mortgage Company and their involvement in this establishment. She stated the transaction is similar to a deed in lieu of foreclosure. She outlined the actions the new owners are taking to • • January 31, 1990 familiarize themselves with the liquor codes and to ensure that the establishment is run properly. Elizabeth Nance, manager, noted there have been no violations at the establishment since she became manager and noted the establishment is very well -regulated. Authority member Garber made a motion, seconded by Authority member Norton, to approve the transfer of ownership of The Gallery at the Fort Collins Club, 1307 East Prospect, from The Gallery at the Fort Collins Club, Inc. to SAC Gallery, Inc. Yeas: Cooper, Garber, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Transfer of Ownership of High Spirits (Lincoln Center). 417 West Magnolia, Approved Michael McMillan, applicant, stated there will be no changes in the operation of the liquor concession. He noted he had been employed by the current licensee as a bartender. He spoke of the training that is provided to employees and there are currently three employees. Mr. McMillan indicated there have been no violations at the Lincoln Center. Authority member Garber made a motion, seconded by Authority member Cooper, to approve the transfer of ownership of High Spirits (Lincoln Center), 417 West Magnolia, from Carolyn Benson to Michael McMillan. Yeas: Cooper, Garber, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Transfer of Ownership of Foothills Country Club Catering, Inc., 6813 South College, and Trade Name Change to Carolyn's Cuisine, Inc.. Approved Carolyn Benson, applicant, stated she is the president and sole shareholder of Carolyn's Cuisine, Inc. She noted Stephen Anderson is the secretary of the corporation and has no financial involvement in the business. (Secretary's Note: It was noted that the background investigation questionnaire for Stephen Anderson was not notarized.) Ms. Benson explained the reasons for buying Foothills Country Club Catering, and noted it will give her the opportunity to expand her business. She stated there were no violations or problems at the Lincoln Center during her operation of the liquor concession. Ms. Benson outlined the training procedures she will use at the establishment. Authority member Garber made a motion, seconded by Authority member Norton, to approve the transfer of ownership of Foothills Country Club Catering, Inc., 6813 South College, and trade name change to Carolyn's Cuisine, Inc., + • • January 31, 1990 contingent upon completion of Stephen Anderson's background investigation questionnaire. Yeas: Cooper, Garber, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. Police Report Authority member Poncelow asked when the Police Department would be conducting compliance checks. Police Investigator Sandy Gibson stated she was not aware of any plans for compliance checks and noted she would check with Officer Tellez. Other Business Assistant City Attorney Duval updated the Authority on the TDMH lawsuit. Authority member Garber requested that Sandy Gibson inform the appropriate supervisors in the Police Department that the officers who were involved in the Saddle Up Liquors show cause hearing did an excellent job. Adjournment Authority member Cooper made a motion, seconded by Authority member Garber, to adjourn. Yeas: Cooper, Garber, Mael, Norton, and Poncelow. Nays: None. THE MOTION CARRIED. The meeting was adjourned at approximately 10:35 p.m. I- I- Ja cam, Id POYICe Q QU1— C airpers & Secretary