Liquor and Fermented Malt Beverage Minutes - November 8, 2007
MINUTES
REGULAR MEETING OF
LAKEWOOD LIQUOR AND FERMENTED MALT BEVERAGE
LICENSING AUTHORITY
November 8, 2007

A Regular Meeting of the Lakewood Liquor and Fermented Malt Beverage Licensing Authority was held on this date in the City Council Chambers.

ITEM 1 - CALL TO ORDER

Chairwoman Hansson called the meeting to order at 7:00 p.m.

ITEM 2 - ROLL CALL Kristina Hansson - Presiding
John Danahey
Eugene O'Malley
Michael O'Neill
Stanley Wisneski

Absent: Larry Muniz
Albert Williams

Also present: Jennifer Roth, Chief Municipal Prosecutor
Michelle Current, Lakewood Police Detective
Margy Greer, Lakewood City Clerk

ITEM 3 - NEW APPLICATION

Hotel & Restaurant License
Wasabi Sushi Bar, LLC
d/b/a Wasabi Sushi Bar
433 S. Teller St.

Adam Stapen, Registration No. 27506, stated he was the attorney representing the applicants. Mr. Stapen stated that the Lakewood Police Department had not completed the background investigation on the applicants. Mr. Stapen stated that the whole reason for the background investigation was to make sure the applicants are of good moral character. Mr. Stapen stated that because of the Patriot Act of 9/11, his client's background investigation was delayed and that it was a common cause throughout all of the jurisdictions throughout Colorado. Mr. Stapen stated that he had affidavits signed by his clients that stated that if the report from the Colorado Bureau of Investigation came back with anything different than what was disclosed in the application and documents provided with the application, then the Liquor Licensing Authority could summarily, without notice or written warning, revoke the liquor license. Mr. Stapen stated that this would prevent his clients from having to wait another five to ten weeks for the background investigation to be completed. Mr. Stapen stated that other jurisdictions were using affidavits similar to what his clients had signed. Mr. Stapen stated he was not trying to set precedence but that there was a unique set of circumstances that made this case supremely different. Mr. Stapen stated that because of the holiday season, which was a make or break time for a new restaurant, the fact there was only one meeting scheduled in November because of the Thanksgiving holiday and that Mr. Lee, who was the principle of the company, already held two liquor licenses in the state of Missouri and had gone through a background investigation, he was asking the Authority to allow him to present the needs and desires of the neighborhood and approve the liquor license, even though the background investigation had not been completed, with the understanding that the license could be revoked immediately if the report came back with any negative history other than what was disclosed. Mr. Stapen stated that his clients had nothing to do with the delay in the investigation.

There was discussion among the members of the Liquor Licensing Authority. The decision was made to go forward with the hearing.

Josh Prater, 7167 W. Alaska Dr., Lakewood, CO 80226, was sworn in and stated he was the Assistant General Manager of The Oven restaurant. Mr. Prater stated that he supported the issuance of the liquor license to Wasabi Sushi Bar.

Chris Giellis, 2442 S. Holland Dr., Lakewood, CO 80227, was sworn in and stated he was the owner of Mile High Wine & Spirits. Mr. Giellis stated that he supported the issuance of the liquor license to Wasabi Sushi Bar.

Sue Duffy Schwall, 24 Via Sierra Grande, Manitou Springs, CO 80829, was sworn in and stated she was the owner of Liquor Licensing Professionals. Ms. Duffy Schwall stated the procedures used to do the petitions and explained the results of the survey.

Sam Roots, 993 S. Ogden St., Denver, CO 80209, was sworn in and stated he was one of the owners of Wasabi's Sushi Bar as well as the registered manager. Mr. Roots stated his experience in the alcohol industry. Mr. Roots stated the reasons why he chose to open his restaurant at Belmar. Mr. Roots stated that he expected 50% of their sales would be from the sale of alcohol. Mr. Roots stated their training program, policies and procedures regarding the sale of alcohol.

There was a question and answer period between the Liquor Licensing Authority and Mr. Roots.

Mr. Wisneski moved to approve the application for a Hotel & Restaurant License for Wasabi Sushi Bar, LLC d/b/a Wasabi Sushi Bar, located at 433 S. Teller St., contingent upon positive results of the background investigation. The motion was seconded.
Vote: 5 Ayes 0 Nays. THE MOTION CARRIED.

Ms. Roth stated that her understanding from Joyce Wamboldt, Secretary to the Liquor Licensing Authority, was that the State of Colorado Liquor License would not be ready until Tuesday, November 13, 2007. Ms. Roth stated that the City would like the applicants to sign an agreement created by the City regarding the contingency that if the background investigation came back with a problem, that the City could revoke the liquor licenses.

Margy Greer, Lakewood City Clerk, stated that, based on the hearing for Wasabi's Sushi Bar and the fact that the City was having major delays receiving the Colorado Bureau of Investigation and the Federal Bureau of Investigation background reports, she asked the Liquor Licensing Authority to consider adopting a policy that would allow the City, once the application had been received and the applicant had been fingerprinted, to set the public hearing date. Ms. Greer stated that at the hearing, the Authority would hear the testimony regarding the needs and desires of the neighborhood. Ms. Greer stated that the Authority would approve the issuance of the liquor license contingent upon a favorable recommendation from the police department after the background investigation was completed. Ms. Greer stated that the liquor licenses would not be issued until the City Clerk's Office received a favorable recommendation from the police department. Ms. Greer stated that it was taking 90 to 120 days to receive the reports from the CBI and the FBI. Ms. Greer stated the applicant would go to only one hearing and this procedure should save the applicant almost two to four weeks in the process of getting their liquor licenses. Ms. Greer stated that if the report were anything other than favorable, then another hearing would be scheduled before the Authority and the members of the Liquor Licensing Authority would make the final decision.

There was a question and answer period between the Liquor Licensing Authority and Ms. Greer.

Mr. Wisneski moved to accept a policy allowing the City Clerk's Office to set the public hearing for a new application prior to the completion of a background investigation and allowing the City Clerk's Office to administratively issue the liquor license after receiving a favorable recommendation from the police department. The motion was seconded. Vote: 5 Ayes 0 Nays. THE MOTION CARRIED.

ITEM 4 - SHOW CAUSE HEARING

Tavern License
Armoni's, LLC
d/b/a Armoni's
7576 W. Jewell Ave.

The hearing was continued to December 13, 2007 due to a request made by the City of Lakewood. The City's witnesses could not attend the hearing.

ITEM 5 - SHOW CAUSE HEARING

3.2% Off Premises Fermented Malt Beverage License
CIMA Enterprises, LLC
d/b/a Gas Mart
1495 S. Sheridan Blvd.

Ms. Roth stated the violation, sale to a minor, was due to a compliance check.

Ms. Roth stated that this was their first offense and that she would recommend a ten-day suspension with five days held in abeyance for a year. Ms. Roth stated that the licensee was asking to pay a fine in lieu of suspension.

Mr. Wisneski made a motion to approve the stipulation between the Chief Municipal Prosecutor and CIMA Enterprises, LLC, d/b/a Gas Mart, located at 1495 S. Sheridan Blvd. The motion was seconded. Vote: 5 Ayes 0 Nays. THE MOTION CARRIED.

Isaac Gonzalez, 1573 Havana St., Aurora, CO 80010, was sworn in and stated that he was the one of the owners of Gas Mart. Mr. Gonzalez stated that he was admitting to the violation. Mr. Gonzalez stated that he and his brother did not have a lot of experience but that they were attending the Lakewood Alcohol Awareness Class on December 6, 2007.

There was a question and answer period between the Liquor Licensing Authority and Mr. Gonzalez.

Mr. Wisneski made a motion that the following penalty be imposed upon CIMA Enterprises, LLC, d/b/a Gas Mart. A suspension of ten days be imposed and that five of the days be held in abeyance for a period of one year, commencing on November 9, 2007, and if there are no violations of the Colorado and Lakewood codes during the next year, the period held in abeyance will be dismissed. In the event a violation does occur within one year from November 9, 2007, 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 at 5:00 a.m. November 9, 2007 and end on November 14, 2007 at 5:00 a.m.
The motion was seconded. Vote: 5 Ayes and 0 Nay. THE MOTION CARRIED.

Mr. O'Neill made a motion that CIMA Enterprises, LLC, d/b/a Gas Mart, be permitted to pay a fine in lieu of five days actual suspension imposed. The motion was seconded. Vote: 5 Ayes and 0 Nay. THE MOTION CARRIED.

ITEM 6 - SHOW CAUSE HEARING

3.2% Off Premises Fermented Malt Beverage License
7-Eleven, Inc.
d/b/a Seven Eleven #16068
2641 S. Estes St.

Ms. Roth stated the violation, sale to a minor, was due to a compliance check.

Ms. Roth stated that this was the first violation within the last two years and she was recommending a suspension of ten days with five days held in abeyance for one year.

Kevin Coates, Registration No. 25995, stated that he was the attorney representing the licensee.

Daniel Jones, 11315 E. Archer Pl., Aurora, CO 80012, was sworn in.

Mr. Wisneski made a motion to approve the stipulation between the Chief Municipal Prosecutor and 7-Eleven, Inc., d/b/a Seven Eleven #16068, located at 2641 S. Estes St.. The motion was seconded. Vote: 5 Ayes 0 Nays. THE MOTION CARRIED.

Mr. Coates stated that the licensee was admitting to the violation. Mr. Coates stated that the cashier, who sold the alcohol to the minor, did not ask for an I.D. and that all employees are trained not to do that. Mr. Coates stated that the employee was terminated. Mr. Jones stated that it did not matter who sold the alcohol to a minor, it was considered the corporation's fault. Mr. Coates stated that Mr. Jones wanted to address the Liquor Licensing Authority. Mr. Coates stated that Mr. Jones was employed with 7-Eleven, Inc. and was a field consultant for eight locations.

Mr. Jones stated the changes that 7-Eleven had made to prevent the sale of alcohol to minors. Mr. Jones stated that he addressed the issue with the employees at the Seven Eleven on 2641 S. Estes St. and that the employees at that store were retrained under 7-Eleven's new program.

Mr. O'Neill made a motion that the following penalty be imposed upon 7-Eleven, Inc., d/b/a Seven Eleven #16068. A suspension of ten days be imposed and that five of the days be held in abeyance for a period of one year, commencing on November 9, 2007, and if there are no violations of the Colorado and Lakewood codes during the next year, the period held in abeyance will be dismissed. In the event a violation does occur within one year from November 9, 2007, 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 at 5:00 a.m.
November 9, 2007 and end on November 14, 2007 at 5:00 a.m. The motion was seconded. Vote: 5 Ayes 0 Nays. THE MOTION CARRIED.

The licensee made a request to pay a fine in lieu of suspension.

Mr. Wisneski made a motion that 7-Eleven, Inc., d/b/a Seven Eleven #16068, be permitted to pay a fine in lieu of five days actual suspension imposed. The motion was seconded. Vote: 5 Ayes 0 Nays. THE MOTION CARRIED.

ITEM 7 - SHOW CAUSE HEARING (Continued from 10/11/07)

Tavern License
Riley's, Inc.
d/b/a Riley's
1515 Garland St.

Ms. Roth stated that the violation was due to over service. Ms. Roth stated that the licensees were in the process of selling Riley's. Ms. Roth stated that until July 14, 2007, there were five days held in abeyance for a violation in 2006 for a sale to a minor.

Ms. Roth stated that the standard sanction would have been 12 days suspension but because they have a buyer for the business and the violation for over service happened on June 15, 2007, one month short of the end of their abeyance term, and the licensees had been very cooperative, she was recommending a 12-day suspension with seven days held in abeyance for one year and no fine in lieu of suspension. Ms. Roth stated that her recommendation was contingent upon the licensees selling the establishment. Ms. Roth stated that if the establishment sold by the next Liquor Authority hearing on December 13, 2007, then her recommendation was that the seven days held in abeyance would terminate.

Mr. Wisneski made a motion to approve the stipulation between the Chief Municipal Prosecutor and Riley's, Inc., d/b/a Riley's, located at 1515 Garland St. The motion was seconded. Vote: 5 Ayes 0 Nays. THE MOTION CARRIED.

James Fouts, 9040 Depew St., Lakewood, CO 80214, was sworn in and stated that he was admitting to the violation. Mr. Fouts asked that the suspension not be on the entire weekend. Mr. Fouts stated that he would like to minimize the impact of the suspension on the business and the financial burden that he and his wife were experiencing.

There was a question and answer period the Liquor Licensing Authority and Mr. Fouts.

Mr. Wisneski made a motion that the following penalty be imposed upon Riley's, Inc., d/b/a Riley's. A suspension of twelve days be imposed and that seven of the days be held in abeyance for a period of one year or until the sale has been completed on the establishment by December 13, 2007, commencing on November 11, 2007, and if there are no violations of the Colorado and Lakewood codes during the next year, the period held in abeyance will be dismissed. In the event a violation does occur within one year from November 11, 2007, unless the establishment is sold, 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 at 7:00 a.m. November 11, 2007 and end on November 16, 2007 at 7:00 a.m. The motion was seconded. Vote: 5 Ayes and 0 Nay. THE MOTION CARRIED.

ITEM 8 - GENERAL BUSINESS

There was no general business to be discussed.

ITEM 9 - ADJOURNMENT

There being no further business to come before the Authority, Chairwoman Hansson adjourned the meeting at 8:13 p.m.

Joyce Wamboldt, Liquor Licensing Specialist