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HomeMy WebLinkAboutLiquor Licensing Authority - Minutes - 04/22/1992A regular meeting of the Liquor Licensing Authority was held on Wednesday, April 22, 1992, in the Council Chambers of the Fort Collins Municipal Building. The following members were present: Cooper, Crowfoot, Mael, Poncelow, Schroeer, and Wawro. (Authority member Norton arrived at approximately 7:10 p.m.) Staff Members Present: John Duval, City Attorney's Office Rita Knoll Harris, City Clerk's Office Sandra Gibson, Police Department Approval of the Minutes Authority member Poncelow made a motion, seconded by Authority member Crowfoot, to approve the minutes of the February 26, 1991, and March 26, 1991, meetings. Yeas: Cooper, Crowfoot, Mael, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. Registration of Randal Bell as Manager of Tortilla Marissa's, 2635 South College. Approved Randal Bell, manager, stated he has worked at Tortilla Marissa's for one month in the manager position and was previously employed by Jefferson Street Station for several years. He indicated that none of the many other establishments he has managed has had a liquor violation, but there was one instance of confiscation of a false ID at Jefferson's. He noted that much of his experience has been with corporate restaurants, where there was an intensive training program in carding people. He stated that his policy when confiscating a false ID would be to call for authorities if the person chose to stay and cause a problem. He indicated that the staff cards anyone who looks under 30, and the managers will even recard someone who looks young to them. Authority member Wawro made a motion, seconded by Authority member Cooper, to approve the registration of Randal Bell as manager of Tortilla Marissa's, 2635 South College. Yeas: Cooper, Crowfoot, Mael, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. April 22, 1992 Transfer of Ownership of the Patio Cafe, 11 Old Town Square, Suite 120, and Trade Name Change to Pasta Jay's. Approved Michael Bynum, attorney, and Jay Elowsky, president of Pasta Jay's Old Town, introduced themselves. Mr. Elowsky described the restaurant as a family style restaurant with no bar, serving beer and wine only. He noted this is the third location in Colorado. He stated there have been no violations at any of the restaurants. He spoke of the in-house training he provides his employees using a manual that shows false ID's in addition to local authorities coming in to provide training. He noted he has asked for information on the TIPS program. He spoke of the difference in character between the Patio Cafe and Jay's, stating that the previous establishment had a bar, was not open for nighttime dining, and had entertainment. He stated that Pasta Jays's does not have entertainment or a bar. Mr. Elowsky spoke of his involvement in the restaurant business for the past 13 years. Upon questioning from the Authority, Mr. Elowsky explained that the third degree assault charge listed on his application did not occur at one of his restaurants. Pete Graham, manager, responded to questions regarding his revoked driver's license in 1975. He stated it involved failure to take a blood test, and that it wasn't a criminal conviction but the Department of Motor Vehicles revoked his license for six months. He noted he did not list it because he felt it was so long ago it wouldn't matter. In response to questions from the Authority, Mr. Elowsky stated that none of the violations listed on his application took place in any of the establishments with which he was associated. He indicated he currently has his driver's license. He stated that his carding policy is to ID anyone who looks 30 or younger. He noted again that there is a manual that staff consults if they suspect an invalid ID. He indicated that he and Mr. Graham will be responsible to ensure the staff knows the other liquor laws. Mr. Elowsky noted he will be present himself for the initial TIPS training of the staff, and any subsequent training of new employees will be handled by Mr. Graham. In response to a question from the Authority, Mr. Graham indicated he has trained all the employees in the Boulder restaurant for the past 3-1/2 years. Authority member Schroeer made a motion, seconded by Authority member Cooper, to approve the transfer of ownership of the Patio Cafe, 11 Old Town Square, Suite 120, from Q.H. Corporation to Pasta Jay's Old Town, Inc., and trade name change to Pasta Jay's and accept Pete Graham as manager. Yeas: Cooper, Crowfoot, Mael, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. April 22, 1992 Transfer of Ownership of the Carousel Playhouse Dinner Theatre, 3509 South Mason, and Trade Name Change to Carousel Dinner Theatre. Approved Sandra Holter, owner, and Patrick Sawyer, bar manager, introduced themselves. Ms. Holter explained that her name is on the current liquor license and that she now is the sole owner of the dinner theater. She stated that she has changed the name by removing the word "Playhouse" and would like to have only her name on the liquor license. She indicated the establishment continues to function as a dinner theater, and she is not planning any other changes. She noted the dinner theater is now her primary responsibility. She stated she will continue the existing training of employees and that even current employees are retrained every two or three months along with new employees. She indicated that Mr. Sawyer also monitors how much people are drinking. She noted they have an older clientele. She stated there have been no violations at the establishment. Upon questioning from the Authority, Mr. Sawyer stated he is the original manager. He noted the Carousel is run similar to the Boulder Dinner Theater, where he was a waiter/performer. He explained that the Carousel has a more relaxed atmosphere and smaller attendance than Boulder and that the waiters/performers have ample time to check ID's before having to begin the performance. Authority member Schroeer made a motion, seconded by Authority member Cooper, to approve the transfer of ownership of the Carousel Playhouse Dinner Theatre, 3509 South Mason, from Carousel Playhouse Dinner Theatre, Inc., to Sandra Holter, and trade name change to Carousel Dinner Theatre. Yeas: Cooper, Crowfoot, Mael, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. Transfer of Ownership of Marsanne's Cafe, 400 South Meldrum, Approved Peter Kaplan explained he would be taking over ownership of Marsanne's on May 1st. He stated the establishment currently has a license and a full -service bar, and that he wishes to transfer the license and keep the operation of the restaurant, as it relates to the bar service, the same. He indicated his liquor sales and service experience consist of working in hotels and restaurants in the east in the capacity of chief, cook, and some front -house management. He stated he has attended culinary school and has been fully educated in the area of liquor distribution, both wholesale or retail. He noted he plans no change in current staff. He stated the only change he anticipates is to coordinate theme menus with Lincoln Center performances and possibly promote a wine to go along with the menu on those evenings. He explained that the "CDS" listed on his application under arrests/convictions stands for "controlled dangerous substance." He stated he was with some people in March 1987 who were arrested for having marijuana in the car. He indicated he believed it was a misdemeanor. He noted that he currently resides in Fort Collins. April 22, 1992 Authority member Poncelow made a motion, seconded by Authority member Cooper, to approve the transfer of ownership of Marsanne's Cafe, 400 South Meldrum, from Marsanne's Cafe, Ltd., to Peter Kaplan. Yeas: Cooper, Crowfoot, Mael, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. Hearing on a Change of Class License for Rocky Mountain Pasta Company, 1100 West Drake Road, Aooroved James A. Slappey, owner, was sworn. He stated that when the establishment was granted the present beer and wine license, it was operating as Western Sizzlin Steak House. He noted he dropped the franchise and changed the format and menu. He indicated the restaurant still operates with a family base, but in order to be competitive, he needs a full license. He stated he presently plans to operate a service bar only. He emphasized he plans to continue the family -style operation of the restaurant. Assistant City Attorney John Duval identified Applicants Exhibits A, B, C, and D as petitions. He stated there is a minor error on each of the verifications concerning the date the neighborhood boundaries were established. He noted that instead of April 3, 1992, the dates should be April 22, 1992. He believed this minor error, however, does not affect the validity of the signatures. He indicated that on Exhibit A he also found three signatures where the people were underage or no age was stated, and on Exhibit D he found two signatures that appear to be marked off for an unknown reason. He noted he had marked all of these with red asterisks. He stated Exhibits A through D were admissible into evidence. Mr. Slappey stated he had contacted approximately 240 people. He indicated there were several who did not want to sign the petition but who did not express an opinion pro or con. He noted that the petition was conducted door to door in the neighborhood, with perhaps 15 to 20 signatures in the restaurant from people he knows live in the neighborhood. He indicated he has no plans for live entertainment. Authority member Poncelow made a motion, seconded by Authority member Schooeer, to adopt Resolution 92-01 approving a hotel -restaurant license at Rocky Mountain Pasta Company, 1100 West Drake Road. Yeas: Cooper, Crowfoot, Mael, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. April 22, 1992 Hearing on a New Application for a Hotel -Restaurant License at In The City Cafe, 150 North College, Approved Valerie Lamoreux, owner -manager, was sworn. She described the restaurant as small, 48 seats, to be open for breakfast and lunch only. She indicated she expects alcohol sales to be low, but she wants a license in order to have certain alcoholic beverages available. She noted the restaurant was previously the Rio Grande, and she plans to open under the new name on April 23. Assistant City Attorney John Duval identified Applicant's Exhibits A through Q as petitions. He noted he had marked with red asterisks those names which are not admissible for various reasons. He stated that Exhibits A through Q are admissible into evidence. Ms. Lamoreux stated she may extend the restaurant's hours in the future to include dinner. She noted that in addition to simple breakfasts and lunches, the menu would include specials from cities around the world. She indicated that on the petitions, 260 signed in favor, with 2 negative responses from 2 who did not want to sign. She stated she had no liquor sales problems in previous employment. She indicated she has attended Ernie Tellez's class and will require her staff to do so also. She noted that her partners' interest in the business is financial only. Authority member Norton stated that 7 of the signatures on the petition were not within the boundaries of the restaurant. She asked Ms. Lamoreux if she objected to these signatures being removed from the total count, and Ms. Lamoreux indicated she did not object. Authority member Cooper made a motion, seconded by Authority member Norton, to adopt Resolution 92-2 approving the application of Sigma Investments, Inc., for a hotel -restaurant license at In The City Cafe, 150 North College. Yeas: Cooper, Crowfoot, Mael, Norton, Poncelow, Schroeer, and Wawro. Nays: None. Show Cause Hearing for Spirits, 2601 South Lemav #18 Assistant City Attorney John Duval stated the Authority has been provided with a copy of the stipulation agreement. He noted the stipulation agreement between Police Services and the licensee has been signed by all of the parties involved, and it covers all of the violations on the agenda. Mr. Duval outlined the provisions of the agreement, and noted that the licensee has agreed to a 180-day suspension, with 166 days of those held in abeyance for a period of 2 years from the date of the Authority's approval and with 14 days actively served. He noted that in lieu of the actual suspension the licensee will pay a fine of $4,200, which is $300 per day, to be paid to the City of Fort Collins on or before May 6, 1992. He indicated that Police Services makes the finding, which is required by statute, that the public welfare and morals will not be impaired by permitting April 22, 1992 the licensee to pay this fine in lieu of suspension, and that the fine will achieve the desired disciplinary purposes. He stated the licensee has also agreed that within 30 days of the Authority's approval of the stipulation, Gary Johnson, who is currently shareholder, director, and officer, will divest himself of all ownership interest in the corporation and will resign as a director and officer of the licensee corporation. He noted there is a requirement that within 60 days the licensee will send all personnel to liquor law education classes and within 30 days have a liquor and beer code and regulations book on the premises. He stated that if during the next 2 years there are any violations of this agreement or any other violations of the liquor code, the Authority can imposed the 166 days which are being held in abeyance. Officer Troy Krenning stated the stipulation agreement was written after he consulted with the liquor enforcement agents from the Colorado Department of Revenue. He noted this was their recommendation for this combination of violations. He indicated he believed there is some mitigation on Mr. Petroff's behalf, that he was not an active participant in the actual omission of facts on the original application. He stated that under those circumstances and upon the recommendation of the State, he believes this stipulation agreement is fair and should be strongly considered by the Authority. Jeffrey Larson, attorney, and James Petroff, president of J.B.M.P., introduced themselves. Mr. Larson stated he had worked closely with Officer Krenning and Assistant City Attorney Duval and that he believes this is a fair disposition. He noted he believes the fine is rather substantial, but that they are willing to accept it under the circumstances. He indicated that he believes the underlying facts in the violation do not support the violation but in the sense of compromise they are willing to accept the stipulation in return for the dismissal of the other two alleged violations. He stated that Mr. Johnson still maintains there was a misunderstanding, that there was no intent to mislead the Authority. He noted that in reading the transcript of the comments made before the Authority, he believes it is in his client's best interest to settle the case. He stated he believes this compromise settlement takes in account the equities in the situation --that Mr. Petroff had no knowledge whatsoever of the individual circumstances of Mr. Johnson in his liquor store ownership in Longmont. He pointed out that because of Mr. Petroff's association through the corporation, he has the potential in one of the two alleged violations for a complete revocation. He stated that Mr. Johnson will be divesting himself of involvement in the business, but that the settlement still leaves Mr. Petroff open to 166 days of suspension if he has any violation within the next 2 years. He pointed out that any liquor business forced to shut down for 166 days will fail. He stated that his client has already complied with some of the stipulations. Mr. Larson requested that the Authority seriously consider the stipulation. He noted that regarding the 1989 violations in Longmont, Mr. Johnson regrets now that he wasn't more involved in the management of this operation. He indicated his client's willingness to discuss anything with the Authority as far as any problems with the stipulation. Officer Troy Krenning summarized his understanding of the 1989 Longmont violations at Triangle Liquor involving Mr. Johnson. He believed that it was April 22, 1992 difficult to determine from the minutes in the Longmont case the exact circumstances. Mr. Larson pointed out again that Mr. Petroff had no knowledge regarding what had happened to Mr. Johnson in the Longmont liquor store when they began the Fort Collins business. Authority member Schroeer advised Mr. Petroff that his business partners are his responsibility as well as the operations of his business even though he is not an active manager. He pointed out that Mr. Petroff is totally responsible for the operation even though he is not there. He asked if Mr. Johnson would be completely and 100 percent out of the Fort Collins corporation. Mr. Petroff answered yes. Authority member Poncelow stated her intent to make a motion to deny the stipulation agreement and indicated she would like to offer an alternative agreement. Assistant City Attorney John Duval stated that negotiations for whatever is acceptable to the Authority should begin with Police Services and the licensee. He noted that the Authority could suggest what would be acceptable and the parties involved could decide whether they could agree to it and then come back to the Authority for its approval. Authority member Poncelow made a motion, seconded by Authority member Cooper, to deny the stipulation. Authority member Poncelow stated she believes there should be a penalty on the sale of liquor to an intoxicated person. She stated that because there would be no active recognition to the public concerning the violation by payment of a fine, there should be some days that are actually spent in suspension. She stated she also questioned whether the Authority would have accepted the license to begin with had it had accurate information on the Longmont case. She noted she had not been present at that decision. Authority member Schroeer stated he agreed with Authority member Poncelow's suggestion. He indicated he would like to see the penalty more "front loaded." He stated he believes it is important for the neighborhood to see this business closed for several days. Authority member Wawro stated he agreed with the other Authority members' views. He stated he believed that a suspension needs to be served as a message to the general public that this type of situation will not be tolerated. He agreed that the Authority may not have approved the initial application if it had accurate information about Mr. Johnson's history. He stated he would like to see a minimum suspension of 3 or 4 days actively served. Authority member Mael stated he would not support the motion, noting he believes the $4,200 fine in lieu of suspension is adequate and serves the same purpose. April 22, 1992 He pointed out that the licensee has agreed to pay the equivalent of 14 days of suspension, and he believes the Authority would not assess a suspension of 14 days. He stated he believes a better lesson might be learned through the acceptance of the stipulation. Authority member Norton stated she believes the public is better served by a notice of suspension and that the fine in lieu of suspension does not provide for such notice. She noted that the Authority's job is to protect the public, and she believes the public needs to be given notice that this violation happened and that the Authority has taken action. Authority member Crowfoot stated her concern is that the violation was a serious offense, and when an establishment just pays a fine in lieu of suspension, the public doesn't know what has happened. She noted that some businesses cannot pay to the extent that this licensee has agreed to pay, so they have to take the suspension. She stated she believes notice has to be posted to show that the establishment is being punished for breaking the laws. Authority member Cooper stated he believes a two -week suspension is appropriate. He noted he believes the Authority was blatantly misinformed of the facts in this matter and that the public needs to know these are serious violations, including the Longmont violations. He indicated he would be comfortable with looking at a combination of posting the business and holding some days in abeyance. He stated he believes the public needs to know the violations occurred and that the City of Fort Collins took action. He noted he did not believe the Authority needed to take the license for six months but holding it in abeyance was probably not a bad idea. The vote on the motion to deny the stipulation agreement was as follows: Yeas: Cooper, Crowfoot, Norton, Poncelow, Schroeer, and Wawro. Nays: Mael. THE MOTION CARRIED. Mr. Larson stated he would have no problem with posting of the premises. He indicated he believes that 3 days actual suspension would probably meet the Authority's concerns better than a fine paid in lieu of 14 days and that the fine could be adjusted to a fine being paid in lieu of 11 days suspension. Assistant City Attorney Duval suggested the Authority take a recess to allow him to confer with Officer Krenning and Mr. Larson to rewrite the stipulation agreement. After the recess, Assistant City Attorney Duval read the amended agreement to the Authority. He pointed out that instead of 14 days to be paid by a fine in lieu of suspension, only 11 days will be served by a fine in lieu of suspension at the rate of $300 a day for a total of $3,300. He stated there will be 3 days actively suspended to be consecutively served within the next 45 days. He noted the agreement stipulates that the licensee will post the licensed premises during the suspension. Authority member Schroeer made a motion, seconded by Authority member Norton, to accept the stipulation agreement as amended. April 22, 1992 (Secretary's note: Assistant City Attorney Duval handed the copy of the original stipulation with changes to Mr. Petroff. Mr. Petroff stated he agreed with the changes he initialed and would not contest the form that the stipulation is in, i.e., handwritten instead of typed.) The vote on the motion was as follows: Yeas: Crowfoot, Mael, Norton, Poncelow, Schroeer, and Wawro. Nays: Cooper. THE MOTION CARRIED. Police Report Officer Troy Krenning provided the Authority with a packet of information that will be mailed to licensees regarding sting operations, TIPS training dates, and other miscellaneous information. Officer Troy Krenning stated he wanted to present information to the Authority regarding alleged violations at The Junction, noting he would ask the Authority to make a probable cause determination. Officer Krenning was sworn. He summarized a citizen complaint he received on March 27 alleging that The Junction, 518 West Laurel, was violating the spirit of their liquor license by not serving food on a regular basis as required by law. He noted that he and Officer Konerza went to The Junction to determine if this was occurring. He stated that he and Officer Konerza arrived at The Junction at 10:15 p.m., waited in line, and entered The Junction as patrons, not police officers. He noted that when they got into The Junction, they were able to determine that there was a violation occurring with the food service. He indicated that a waitress told them they could not order a full meal after 10:00 p.m. and that all that was available after 10:00 p.m. and up until midnight were "light snacks and munchies". He noted that a menu that hung over the kitchen area advertised that from 10:00 p.m. to midnight there was only a light menu available and that the table menus indicated this also. Officer Krenning noted that the general appearance of the crowd that night looked to be young and that their demeanor was rowdy. Officer Krenning indicated that he and Officer Konerza observed several individuals who appeared to be under 21 and visibly intoxicated. He stated they watched the individuals for some time and finally narrowed it down to a female and a male. He noted that the female was never seen with liquor in her possession, but that the male was never seen without a glass of liquor in his hand. He stated that when the male entered the restroom, he followed and identified himself as a police officer and requested identification, which revealed the person was only 19. Officer Krenning stated they arrested the person and brought him to the Fort Collins Police Department. He noted the person volunteered to breathe into the intoxilyzer, but he did not do it according to established standards, and therefore a true, accurate reading of the breathalizer which could be used in the criminal courts, proof beyond reasonable doubt, wasn't obtainable. Officer Krenning indicated, however, that he had proof April 22, 1992 that would meet the Authority's standards, that the reading on the intoxilyzer was .238, over two times the legal limit established by the State of Colorado to operate a motor vehicle. Officer Krenning testified that the individual's demeanor was that of an intoxicated person. Officer Krenning stated he spoke with the general manager, Kathy Brady, on March 27 at the time of the initial arrest of the 19-year-old, and explained what they had seen and what had occurred prior to removing the individual and taking him to the Fort Collins Police Department. He noted he spoke with Ms. Brady later that night to explain the further outcome of the violation and to answer questions she had concerning how the minor had been admitted into the bar. He indicated there has been an allegation raised by The Junction and their attorney that a fake ID was used; however, he noted he found no fake ID on the individual that night and that the individual had admitted he had not used a fake ID. Officer Krenning noted he had several other items of evidence that could be used at a show cause hearing that would lead the Authority to believe that a fake ID was not used that night. Officer Krenning stated that on April 1, Department of Revenue liquor enforcement agents from Denver were in town doing random inspections of establishments and contacted the Fort Collins Police Department. He noted he discussed the March 27 case with them and they independently went to The Junction. He stated that during their visit to The Junction they seized 14 bottles of contaminated liquor containing fruit flies and bugs in violation of Regulation 47-105.4. He indicated the state agents asked Officer Krenning to present the case to the Authority on their behalf for probable cause determination. Officer Krenning stated that on April 4 he used a 20-year old female undercover operative, Brandi Davis, who went to The Junction along with Officer Doug Miller. He noted that Ms. Davis told him she had not been in The Junction before, she did not possess a fake ID, and that she knew no one at The Junction. He stated that when she got to the door, however, the doorman recognized her as someone he had gone to high school with, and without checking her ID, he gave her a handstamp and admitted her to the bar and checked Officer Miller's driver's license and admitted him to the bar. Officer Krenning stated that Officer Miller and Ms. Davis went inside, were seated and ordered two glasses of beer, thereby establishing a violation for sale to a person under the age of 21. He stated that Ms. Davis' ID was never checked although she had been instructed that night to present her lawful ID if requested and to tell her correct age as 20 if asked, so that there was no trickery used during this operation. Officer Krenning asked the Authority to find that probable cause exists to schedule a show cause hearing and that he would be glad to answer any questions at this time. Upon questioning from the Authority, Officer Krenning further clarified the three violations he believed occurred on March 27: (1) sale to a person under the age of 21, (2) sale to a visibly intoxicated person, and (3) failure to provide full meals up and until 11:00 p.m. as required by the hotel -restaurant license. He indicated that on April 1 the violation that occurred was the contamination of April 22, 1992 bottles of liquor which were in use and available for sale in violation of Regulation 47-105.4. He added that on April 4 the fifth violation occurred where a person under the age of 21 was allowed to enter the bar and purchase a glass of beer. Authority member Wawro requested a clarification on the issue of liquor versus food sales. He noted that the State's report showed that on April 14, 1992, there was a recalculation of documents that were submitted by the licensee showing the amended figure of 73.5 percent in bar sales and 26.5 percent in food sales, which is within the guidelines of the statute. He asked it this violation was rescinded. Officer Krenning stated that this was correct. Authority member Poncelow made a motion, seconded by Authority member Cooper, to find that probable cause exists to schedule a show cause hearing at next month's meeting, May 27, for all the alleged violations charged in the incident report with the exception of a violation for food sales volume. Yeas: Cooper, Crowfoot, Mael, Norton, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. Officer Krenning requested the Authority authorize subpoenas be issued to Matt Schuler and Brandi Lynn Davis. Authority member Cooper made a motion, seconded by Authority member Norton, to direct the City Attorney to issue the subpoenas as requested and any other subpoenas that are pertinent with respect to this particular issue. Yeas: Cooper, Crowfoot, Mael, Norton, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. In response to questions from the Authority regarding Thirsty's Liquor, Officer Krenning stated that he and Sergeant McLellan went in and worked a reverse sting operation and were able to make five arrests in about 30 minutes with the cooperation of the manager and owner of Thirsty's. He stated he would like to commend the establishment for picking out fake ID's. Authority member Schroeer stated he was glad to see the Police Department more aggressively pursue those who are not only supplying alcohol to individuals with fake ID's or no ID's, but also going after those who are attempting to buy or get served. He noted that he liked the idea of requiring those going into the liquor establishments to be responsible for their own actions. 11 Adjournment April 22, 1992 Authority member Norton made a motion, seconded by Authority member Schroeer to adjourn. Yeas: Cooper, Crowfoot, Mael, Norton, Poncelow, Schroeer, and Wawro. Nays: None. THE MOTION CARRIED. The meeting was adjourned at approximately 9:1 z � 74l�15 Secretary