Liquor and Fermented Malt Beverage Minutes February 14, 2002

LIQUOR AND FERMENTED MALT BEVERAGE
LICENSING AUTHORITY MEETING
FEBRUARY 14, 2002
MINUTES

1. Call to Order
Chairman Fred Taake called the meeting to order at 7:00 p.m. in the City Council Chambers of the Lakewood Civic Center South, 480 South Allison Parkway, Lakewood, Colorado.

2. Roll Call
Present: Fred Taake
Greg Buchanan
Mark Wolfe
David Weakly

Absent: Lisa Vanderhoof
Louis Diamond
Others in attendance: Paul Kennebeck, Deputy City Attorney
Margy Greer, City Clerk

A quorum was established.

3. Show Cause Hearing
Retail Liquor Store License
Mack's Liquor, Inc., dba Mack's Liquor
11712 W. Colfax Avenue

Attorney Robert McCann, Registration No. 4303, was sworn in.

James Charles Brennan, 2460 Jay Street, Edgewater, Colorado 80214, was sworn in.

Mr. Taake opened the public testimony.

Deputy City Attorney Paul Kennebeck stated that the matter was brought forward as the result of a complaint that was issued for a violation that occurred September 5, 2001. It was related to a compliance check. Attorney Kennebeck stated that he had spoken to Attorney McCann for the licensee and that the licensee would admit to the violation. The Authority found a violation in August of 1997 and a second violation on May 10, 2001. Attorney Kennebeck stated that because this was a third violation, he did not tell Mr. McCann what the penalty would be. Attorney Kennebeck stated that the City was not seeking revocation. There had been some time since the first violation.

Attorney McCann confirmed the information related by Attorney Kennebeck.

Mr. Wolfe asked what the previous violations were.

Attorney Kennebeck stated that on August 4, 1997, the Authority found there was a sale to a minor and the penalty was 10 days with 5 days held in abeyance; 5 days served. On May 10, 2001, the Authority found there was a sale to a minor and again, the penalty was 10 days with 5 days held in abeyance; 5 days served. Both times there was a fine in lieu of paid. Attorney Kennebeck stated that the event that occurred in 2001 was treated with a penalty the same as a first offense.

Mr. Weakly made a motion that the stipulation between the Deputy City Attorney and Max Liquor, Inc., dba Mack's Liquor, 11712 West Colfax, Lakewood, Colorado, be approved. It was seconded by Mr. Wolfe. Vote: All Ayes. No Nays. The motion carried.

Attorney McCann stated that this was a typical case of a problem with an employee. During the period of time there were 12 different employees in one year. Employees who claim to be experienced and educated in the line of management of a liquor store turned out they were not. There was a rapid turnover of employees trying to find qualified people. The licensee agrees that it is his responsible. Mr. McCann asked that the penalty start as soon as possible.

Mr. Wolfe asked Mr. Brennan if the employee, Thomas Kliewer, was still in his employment. Mr. Brennan stated he was not.

Mr. Wolfe asked how long the employee had worked with Mr. Brennan. Mr. Brennan stated that he worked for him approximately six months.
Mr. Brennan stated that he was a good employee until this incident occurred.

Mr. Wolfe asked if Mr. Brennan or any of his employees had been through the Lakewood Liquor Training course. Mr. Brennan stated that he had gone through the training. His two current employees have not attended the course. Mr. Brennan stated that he has a copy of the upcoming class schedule and stated he plans on having his employees and himself attend.

Mr. Wolfe asked Mr. Brennan if he was advised of the classes when the violation occurred in 2001. Mr. Brennan stated that he did have a schedule. Mr. Brennan stated that most of the employees had experience in the liquor field. He stated that they check all IDs now.

Mr. Wolfe asked Mr. Brennan if he was open six days a week. Mr. Brennan stated he was open six days a week.

Mr. Taake stated that this offense is very serious and it's not that far from revocation. He stated there could be a sanction down the road if Mr. Brennan is not careful.

Mr. Taake closed the public testimony.

The Authority members discussed a possible penalty.

4. Show Cause Hearing
Retail Liquor Store License
Baik, Inc., dba Lakewood Liquors
9181 W. Jewell Avenue

Deputy City Attorney Paul Kennebeck stated that the matter was brought before the Authority due to a complaint issued as a response as set forth in Paragraph 2 of the Complaint. He explained that a gentleman entered the liquor store, purchased alcohol, and was in a vehicle outside of the store. A police officer was nearby and went over and talked to the man. Attorney Kennebeck stated that because he was in a vehicle, the officer was able to perform a Breathalyzer. At that time he had a blood alcohol content of .310. He stated that he had spoken to the corporate owner, Miss Baik, and a translator who was also in attendance. He stated that this is a first offense. He said they will admit that the violation occurred. Attorney Kennebeck stated that he had explained the standard sanctions to them. Those standard sanctions include being able to pay a fine in lieu of and they will be asking to pay the fine.

Miss Baik was assisted by a translator.

Kurung Baik, 9181 West Jewell Avenue, Lakewood, Colorado was sworn in.

Mr. Taake asked if Miss Baik was stipulating that the offense did occur and if she was pleading to the offense. Miss Baik stated that was true.

Mr. Weakly moved that the stipulation between the Deputy City Attorney and Baik, Inc., dba Lakewood Liquor, 9181 W. Jewell Avenue, Lakewood, Colorado, be approved. It was seconded by Mr. Buchanan. Vote: All Ayes. No Nays. The motion carried.

Mr. Taake opened the public testimony.

Miss Baik explained that she had been in business four years and had several compliments from the Police Department that she was doing a good business. She stated that she has received many letters from the Police Department. Miss Baik stated the man was limping and handicapped when he came into the liquor store that's why she did not check his ID. She stated that if he was drunk, she did not know. Miss Baik stated that he bought the liquor and then went outside and he was drinking the liquor outside in the parking lot. She stated that she still had the bottle he was drinking from in a trash bin. She reported that she still had it at home.

Mr. Wolfe asked if the letters from the Police Department were compliance check letters.

Miss Baik stated that they were letters of compliment that she was doing a good job.

Mr. Taake stated that if the letters are going to be used in the testimony, they would need to be marked as an Exhibit. They were not entered into the record.

Mr. Weakly asked Miss Baik how long she had owned the liquor store.

Miss Baik stated almost four years.

Mr. Weakly asked if Miss Baik was working in the liquor store the evening the offense took place.

Miss Baik stated that she was the one who sold the liquor to him.

Mr. Weakly asked Miss Baik if she understood that the reason she had to appear before the Authority was because the man was supposedly drunk when he bought the liquor.

Miss Baik stated that she did understand that.

Mr. Weakly asked Miss Baik if he understood her to say that she could not tell that the man was drunk because he had a limp.

Miss Baik stated that she did not know that he was already drunk.

Mr. Wolfe asked Miss Baik is she was aware of the penalties for violating the Lakewood Liquor Codes and that her license could be suspended or revoked if she comes before the Authority again.

Miss Baik stated that she did understand this.

Mr. Wolfe asked if Miss Baik was making any changes to prevent this from happening again.

Miss Baik stated that she will be very careful and watch every person.

Mr. Wolfe asked Miss Baik if she had gone through any training to help her identify when people are intoxicated or under age.

Miss Baik stated that she has not taken any special training. She stated that she had a letter from the Korean Liquor Association so she is receiving all of the information on what she should and should not be doing.

Mr. Wolfe asked if the Korean Liquor Association provided training classes or help in any way.

Miss Baik stated that she had not taken any training. She stated that the training is available to her, but she is the only employee and cannot take off work to attend the classes.

Mr. Wolfe asked Miss Baik is she realized that if she appeared before the Authority again that she is looking at possible suspension for a period of time.

Miss Baik stated that she did understand.

Mr. Buchanan strongly recommended that Miss Baik attend the Korean Liquor Association meetings and trainings. He stated that they help the Korean community understand the Liquor Authority's role.

Mr. Taake asked Miss Baik for the amount of time that lapsed from when she sold the alcohol to the man and when the police arrived.

Miss Baik stated it was about 20 minutes.

Mr. Taake asked if the man was drinking in the car.

Miss Baik stated that she saw the bottle after the police left.

Mr. Weakly stated that Miss Baik spoke about a bottle of beer and asked if the man had purchased a case of beer from her.

Miss Baik stated that he purchased a case, but she did not know how many bottles he drank.

Mr. Taake closed the public testimony.

The Authority members discussed a possible penalty.

Mr. Wolfe stated that upon the Authority's decision that a violation of the Colorado and/or Lakewood Liquor Codes has occurred and after hearing any statements in aggravation or mitigation, he made a motion to impose a penalty upon Baik, Inc., dba Lakewood Liquors, 9181 West Jewell Avenue, Lakewood, Colorado, of a suspension of 10 days with 5 days of the suspension be held in abeyance for a period of one year commencing February 15, 2002. In the event that there be no violations of the Colorado and/or Lakewood Liquor Codes during the next year, the period held in abeyance will be dismissed. In the event a violation does occur within one year from February 15, 2002, regardless of when the hearing on such violation should be held, the time held in abeyance be imposed after such hearing in addition to any other penalty. The balance of the suspension will begin February 15, 2002 at 8:00 a.m. and end February 20, 2002 at 8:00 a.m. It was seconded by Mr. Buchanan. Vote: All Ayes. No Nays. The motion carried.

Miss Baik asked to pay a fine in lieu of the suspension.

Mr. Taake explained that the fine is 20% of gross sales for five days with a minimum of $200 and a maximum of $5000.

Miss Baik asked if the gross sales included cigarettes.

Mr. Taake stated that it only included alcoholic beverages only.

Mr. Weakly made a motion that Baik, Inc., dba Lakewood Liquors, 9181 West Jewell Avenue, Lakewood, Colorado, be permitted to pay a fine in lieu of the five days actual suspension imposed. It was seconded by Mr. Wolfe. Vote: All Ayes. No Nays. The motion carried.

Mr. Taake asked Miss Baik if she understood that if another violation occurs within a 12-month period that the five days being held in abeyance would be added on to any additional penalty that would be imposed at that time. He stated that the standard penalty for a second offense is normally 14 days of closure with 7 days in abeyance, but then the five days is added. Therefore, the store could be closed for twelve days and the Authority would not allow her to pay a fine in lieu of closure.

Miss Baik stated that she understood.

Attorney Kennebeck stated that the timing was instantaneous. A police sergeant was on scene and a citizen approached the officer and told him there was a man sitting immediately in front of Lakewood Liquors that was wasted and he just bought a case of beer. The sergeant went over immediately. There was no time delay. The blood alcohol test was done as soon as they realized the gentleman was intoxicated. The facts were almost instantaneous. Attorney Kennebeck also stated that he had a couple of conversations with Miss Baik and the translator and suggested they obtain an attorney. He stated that at one point the conversation became heated and they chose not to hire an attorney.

Miss Baik stated that she realized she has to pay the 20%, but she has received many compliments from the Police Department over the four years, and asked if there was any relief. She stated she bought the liquor store with a loan from the bank and 20% is high.

Mr. Taake stated there would be no change at this time.

5. New Application
Hotel & Restaurant License
Pinnacle Food & Beverage Group, dba Lakewood Wingstop
1057 S. Wadsworth Blvd., Unit 80

Joseph Sean Sugrue, 1057 South Wadsworth Blvd, Suite 80, Lakewood, Colorado 80226 was sworn in.

Attorney Paul Kennebeck stated that his office reviewed the paperwork and all the paperwork is in order and the licensee is asking for an H&R License.

City Clerk Margy Greer stated that an inventory of the liquor-licensed premises within the neighborhood had been completed. There are 4 Hotel & Restaurant Licenses, 4 Retail Liquor Store Licenses, l Tavern License, 0 Beer and Wine Licenses, 0 Club Licenses, 0 Brew Public, 0 Liquor-Licensed Drug Stores, and 4 3.2% Fermented Malt Beverage Licenses located within the boundaries.

Ms. Kelly Pietrs, 639 Ivanhoe Street, Denver, Colorado 80220, was sworn in.

Ms. Pietrs stated that she is the managing member of Esquire Petitioning Services and they were contacted by the applicant to do a survey of the neighbors, residents, and business owners or managers within the designated neighborhood as designated by the licensing authority. She stated that Esquire circulators canvassed the residents who lived within the designated neighborhood on January 19th and the business owners and managers were surveyed on January 25th and 28th, both of which are weekdays. Ms. Pietrs stated that each circulator carried a clipboard and on the clipboard they had a map of the designated neighborhood, a warning sheet detailing tonight's hearing, and the license application at issue. It also included all of the qualifications for signing the petition. Each circulator also had signature sheets on which the people could sign either in support of the liquor license or in opposition to the issuance of the license. Each circulator had data sheets on which to record the response to each either residential door knock or business contact. In doing the circulating, each circulator was told to state that the petition pertained to an application for a Hotel & Restaurant Liquor License for the Lakewood Wingstop. They would show the map; make sure the person contacted was eligible to sign the petition, that is they were over the age of 21; that they were a resident of that neighborhood; that they understood the application well enough to sign the petition; or that they were also a business owner or manager. They were to allow each eligible person the opportunity to sign either in support of or in opposition of the license and they were to witness each and every signature. The results show a total of 678 door knocks; 219 people signed the petition; 61 declined to sign the petition for one reason or another and those reasons are enumerated in Subsection F on the last page of the report. There were 59 ineligible contacts, most of which were non-managers or non-business owners, so they were no eligible to sign. There were 354 people who did not answer the door or businesses that were closed. One signature was deleted because the signature was incomplete. That signature is not included in the count. There were 164 residents and 35 business owners or managers who supported the issuance of the license for a total of 199 people. Approximately 91% of the people signing the petition supported the issuance of the license. There were 19 residents and one business owner or manager for a total of 20 who opposed the issuance of the license, or approximately 9%. Seven contacts stated a neutral opinion. In analyzing the reasons stated for opposing the issuance of the license, there were a large number of people who stated that they had an abhorrence to alcohol or were non-drinkers for either personal or religious reasons. Three people stated that they believe there are a sufficient number of outlets. One person stated that they were concerned about traffic issues. One person declined to give a reason. In analyzing it on a needs and desires basis, in Subsection E, there were 199 people who signed in support of the issuance of the license and only three people who signed in opposition based on their lack of desire for the license because it was their opinion that there were sufficient existing outlets to meet the reasonable needs of the neighborhood. Ms. Pietrs stated that looking at it in that respect, it became a 98.5% support ratio for the issuance of the license. She stated that this is a strong survey. She stated that in the Denver Area they are coming in at around 82%-87%, depending on the location.

There were no questions from the Authority.

Mr. Taake stated that the Needs and Desires of the neighborhood are satisfied.

Joseph Sean Sugrue testified as follows. He stated that he has been a restaurant manager for 15 years, full service to fast food, and at one point, a bar manager in charge of the bar for Texas Land and Cattle Steakhouse. The Wingstop is not in the category of fast food, but is in a category termed as quick service. It takes 10-12 minutes to make an order. The restaurant size is 1200 square feet, primarily it is a take-out restaurant. 70% of Wingstop's sales nationally are take-out sales. Soft drinks and beer are offered. Beer sales on average nationally are only 1% of their total sales. It is a relatively small number. However, it is a number that the beer itself is more or less an aesthetic for the flavor profile of buffalo style chicken wings and French fries. He stated he believes it is mandatory for all employees to go through, not only City liquor license training, but for health permits as well. The hours of operation are 4:00 pm to midnight, Monday through Friday. They are not open passed midnight. Saturday and Sunday they are open from 11:00 a.m. until midnight.

Mr. Wolfe asked Mr. Sugrue if he was the sole owner of the business and questioned the references in his application regarding Texas.

Mr. Sugrue stated that he was the sole owner of the business. He stated that he was from Texas and the franchise started in Dallas. He stated that he was previously the manager of a Texas Land and Cattle Steakhouse in Arlington. He stated that there is one in Lone Tree and one possibly being built in Cherry Creek. He stated he found out about the franchise and began the process of becoming a franchisee while living in Texas.

Mr. Wolfe asked Mr. Sugrue to explain where the beer is held and handed to the customer in regards to the diagram of the layout provided to the Authority in the application.

Mr. Sugrue stated that the dining room itself is small and there are only nine tables in the restaurant. There is one cash register and 99% of the time there is a manager on the cash register, someone over 18 years old. Next to the register there are beer taps and a cooler for beer and soft drinks. The franchise requires them to carry four draft beers and 24 bottle beers.

Mr. Wolfe asked if the door shown on the diagram was the only door in and out of the restaurant.

Mr. Sugrue explained that it was the only door for customers. There was a door in and out of the kitchen area for deliveries.

Mr. Wolfe stated that he was concerned about who was there monitoring so that the liquor did not leave the premises.

Mr. Sugrue stated that the cash register is directly in front of the door, only 8-10 steps inside the door. The manger on duty would monitor that.

Mr. Wolfe asked if there was a drive-through.

Mr. Sugrue stated there was not a drive-through.

Mr. Wolfe asked if Mr. Sugrue or his staff had attended the City's liquor training classes.

Mr. Sugrue stated that he has not attended it yet. He stated that it would be mandatory for everyone to go. He stated it was good policy and he would get a schedule from the City regarding upcoming classes.

Mr. Wolfe asked if Mr. Sugrue was aware of the penalties for violating the liquor codes.

Mr. Sugrue stated that he was aware of the penalties.

Mr. Taake asked for clarification regarding the location of the restaurant since street names were not shown on the diagram.

Mr. Sugrue stated that the front door on the diagram faces Wadsworth Blvd. He stated that the building is approximately 40 feet wide.

Mr. Wolfe made a motion to approve the new application for a Hotel & Restaurant License for Pinnacle Food & Beverage Group, dba Lakewood Wingstop, 1057 S. Wadsworth Blvd, Unit 80, Lakewood, Colorado, be approved based upon the consideration of all evidence of the application and on the reasonable requirements of the neighborhood and desires of the adult inhabitants. It was seconded by Mr. Buchanan. Vote: All Ayes. No Nays. The motion carried.

6. GENERAL BUSINESS

A. Dismiss complaint
Retail Liquor Store License
Hagos Kiros, dba B&N Liquors
7560 W. Jewell Avenue

Deputy City Attorney Paul Kennebeck stated that the parties will admit to the violation and if there is a transfer no sanctions will be imposed and if there is not a transfer, sanctions will be imposed. A transfer did occur and Hagos Kiros is no longer the owner of B&N Liquors and there is a new licensee. Therefore, no sanctions would be imposed. He asked that the complaint not be dismissed and the violation remain on the record.

Margy Greer confirmed that the liquor store has a new owner and the license had been transferred.

Mr. Taake stated that the complaint would not be dismissed and this item is for information only.

B. Dismiss complaint
Hotel & Restaurant License
Denny's, Inc., dba Denny's Restaurant #1110
565 Union Blvd.

Attorney Paul Kennebeck stated that the City would like to dismiss the Complaint. This complaint was brought forward because the City Clerk's Office was having great difficulty getting information from Denny's regarding one of their officers. He stated it was his understand that Denny's turned in their license and recommended dismissal of the complaint.

Margy Greer confirmed that the City Clerk's Office was in possession of the liquor license.

Mr. Buchanan made a motion to dismiss the Complaint against the Hotel & Restaurant Liquor License, Denny's Inc., dba Denny's Restaurant #1110, 565 Union Blvd., Lakewood, Colorado. It was seconded by Mr. Wolfe. Vote: All Ayes. No Nays. The motion carried.

C. Dismiss complaint
Beer & Wine License
Johmar Enterprises, Inc., dba Green Mountain Quality Bingo
12364 W. Alameda Parkway

Attorney Kennebeck stated that the City wished to dismiss the Complaint. The City was trying to obtain ownership information regarding the license. The owner indicated that the issue was resolved by returning the liquor license to the City.

Mr. Wolf asked for clarification regarding the non-payment of sales tax which was stated in the Complaint.

Attorney Kennebeck stated that the City sales tax was being paid, but was being paid under a different sales tax license and a different person was paying the tax.

Margy Greer confirmed that the City Clerk's Office was in possession of the liquor license.

Mr. Buchanan made a motion to dismiss the Complaint against the Beer & Wine License, Johmar Enterprises, Inc., dba Green Mountain Quality Bingo, 12364 W. Alameda Parkway, Lakewood, Colorado. It was seconded by Mr. Wolfe. Vote: All Ayes. No Nays. The motion carried.

7. ADJOURNMENT
There being no further business to come before the Authority, Mr. Taake adjourned the meeting at 8:05 p.m.

Respectfully submitted by,

Margy Greer, City Clerk

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