Liquor and Fermented Malt Beverage Minutes - June 26, 2008
MINUTES
REGULAR MEETING OF
LAKEWOOD LIQUOR AND FERMENTED MALT BEVERAGE
LICENSING AUTHORITY
June 26, 2008

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

Hearing Officer Richard Miller called the meeting to order at 2:08 p.m.

ITEM 2 - SUSPENSION HEARING

Hotel & Restaurant License
Yanna's Café, Inc.
d/b/a Yanna's Cafe
205 S. Sheridan Blvd.

Jennifer Roth, Attorney for the City of Lakewood, stated that on February 28, 2008, the licensee appeared before the Liquor Licensing Authority and admitted to the violation of sale to a minor. Ms. Roth stated that the Authority imposed a penalty of ten days suspension with five days held in abeyance for one year and that the licensee was allowed to pay a fine in lieu of suspension. Ms. Roth stated that Jennifer Pingel from the Finance Department was not able to do an audit to calculate the fine amount because the licensee did not have proper records for the liquor sales. Ms. Roth stated that the City was asking that the liquor license of Yanna's Café be suspended for five days.

Ionna Andrianakos, 205 S. Sheridan Blvd., Lakewood, Co 80226, stated that she was the owner of Yanna's Café. Ms. Andrianakos stated that it was her mistake that the City could not do an audit because she was not keeping liquor sales separate from food sales.

Mr. Miller asked Ms. Andrianakos if she realized that failing to have adequate books and records was a separate and independent basis for suspension of her license.

Ms. Andrianakos stated that she understood and that she had no objection to the Authority imposing five days of suspension in lieu of paying a fine.

Mr. Miller found that Yanna's Café, Inc., d/b/a Yanna's Café, failed to maintain adequate books and records to determine the appropriate amount of the fine and the previous stipulation to pay a fine in lieu of suspension was withdrawn. Yanna's Café, Inc., d/b/a Yanna's Café, would serve a five-day suspension of their liquor license commencing on June 27, 2008 at 8:00 a.m. and ending on July 2, 2008 at 8:00 a.m. Mr. Miller stated that the five days that were previously held in abeyance for one year would still be held in abeyance from the effective date of February 29, 2008.

ITEM 3 - SHOW CAUSE HEARING (Continued from May 22, 2008)

Tavern License
Frontier Inn, Inc.
d/b/a Frontier Inn
1195 S. Sheridan Blvd.

Ms. Wamboldt stated that the City had requested a continuance because one of the witnesses for the City could not attend this hearing. Ms. Wamboldt stated that the hearing had been continued to July 24, 2008 at 2:00 p.m. Ms. Wamboldt stated that the licensee had been advised of the request for the continuance and did not have any objections.

ITEM 4 - NONRENEWAL HEARING (Continued from May 8, 2008)

Retail Liquor License
Martoo Corp., Inc.
d/b/a Sunset Liquor of Lakewood
9151 W. Colfax Ave.

Jesus Nieto, 1080 Explorador Calle, Denver, CO 80239, stated that he was the owner of Sunset Liquor of Lakewood and that he was admitting that he had failed to file his sales tax returns and pay his sales tax on time.

Mr. Miller stated that Mr. Nieto had entered into a stipulation stating that he would pay his taxes on time and that he had breached the stipulation. Mr. Miller stated that Mr. Nieto had failed to pay the interest on his sales tax for the months of November and December of 2007 and that he had not paid sales tax for the months of January and February of 2008.

Mr. Nieto stated that all of the taxes had been paid through May of 2008.

Ms. Roth stated that the taxes for Sunset Liquor of Lakewood were now current. Ms. Roth stated that the City was asking for nonrenewal of the liquor license based on the fact that this was not the first time a complaint had been brought forward for failure to pay his sales tax for this business. Ms. Roth stated that in March of 2007, Mr. Nieto entered into an agreement with the City regarding taxes he owed in 2006 and 2007. Ms. Roth stated that the agreement stated that he would have no further violations and Mr. Nieto started getting behind again in November of 2007.

Mr. Nieto stated the reasons he had gotten behind in his taxes and what he was doing to prevent it from happening in the future. Mr. Nieto stated that he was asking for some leniency and the opportunity to continue to operate his business.

Mr. Miller asked if Sunset Liquor of Lakewood had any prior violations.

Ms. Roth stated that the last violation was in 2005 for sale to a minor.

Mr. Nieto stated that he had also gotten letters of commendation from the Lakewood Police Department for passing compliance checks.

Jennifer Pingle, City of Lakewood Finance, was sworn in and stated that Mr. Nieto brought his final tax returns current as of June 13, 2008. Ms. Pingle stated the history of Mr. Nieto's late sales tax returns and payments. Ms. Pingle stated that tax returns are required to be filed on or before the 20th of each month and the payment is due at that time. Ms. Pingle stated that the City had entered into payment agreements with Mr. Nieto in the past. Ms. Pingle stated that the City currently had a tax lien against the property that would be released now that all taxes had been paid.

Mr. Nieto stated that he did an evaluation of what he had been doing wrong that caused him to get behind on his taxes, and he changed his procedures and got his taxes caught up.

There was a question and answer period between Mr. Miller and Mr. Nieto.

Mr. Miller asked Ms. Roth if there were any other recommendations or alternative sanctions other than nonrenewal of his liquor license.

Ms. Roth was granted a brief recess at 2:31 p.m. The hearing resumed at 2:40 p.m.

Ms. Roth stated that the City's first preference would be nonrenewal of the license but if the Authority decided to renew the license, then the City wanted it to be made clear to the licensee that if any sales tax returns were filed or paid even one day late, the City would be asking the Authority to issue a complaint. Ms. Roth stated that because of the history of the licensee, the City was asking for zero tolerance. Ms. Roth stated that in regard to this current complaint, the City would still want some sort of a sanction, possibly a suspension of the license for a certain period of time.

Mr. Miller found that there had been prior violations for failure to file sales tax returns and payment of sales tax in a timely manner and that there was good cause to deny the liquor license. Mr. Miller found that given the licensee's representations to the City that there would be no further violations of the Colorado and Lakewood codes, Mr. Miller ordered that the liquor license of Martoo Corp., Inc., d/b/a Sunset Liquor of Lakewood, be renewed and that in lieu of nonrenewal of the license, the following penalty be imposed upon Martoo Corp., Inc., d/b/a Sunset Liquor of Lakewood. A suspension of 30 days be imposed and that 20 days would be held in abeyance for a period of one year, commencing on June 26, 2008, and if there were no further violations of the Colorado and Lakewood codes during the next year, the period held in abeyance would be dismissed. In the event a violation does occur within one year from June 26, 2008, regardless of when the hearing on such violation would be held, the 20 days held in abeyance be imposed after such hearing, in addition to any other penalty. The balance of the suspension would begin at 8:00 a.m. on July 7, 2008 and end at 8:00 a.m. on July 17, 2008. Mr. Miller further found that if Martoo Corp., Inc. d/b/a Sunset Liquor of Lakewood, was late by one day filing the required sales tax return or sales tax payment, then the liquor license would be summarily suspended for the additional days that are being held in abeyance. Upon an affidavit from the City of Lakewood to the secretary of the Lakewood Liquor and Fermented Malt Beverage Licensing Authority stating that the sales tax return had not been filed or the sales tax had not been paid, the licensee would receive notice of the immediate imposition of the additional 20 days suspension.

ITEM 5 - GENERAL BUSINESS

Ms. Roth stated there were eight complaints being brought forward for motions to show cause. Ms Roth stated that the complaints were a result of a compliance check that occurred on May 22, 2008 by the Lakewood Police Department.

The first complaint was for Valero Diamond Metro, Inc., d/b/a Diamond Shamrock #1118, 1890 Wadsworth Blvd., for an alleged violation of Sale to a Minor.

Mr. Miller found there was probable cause to believe that a violation of the Colorado and/or Lakewood codes had occurred and to serve a notice of hearing and order to show cause why the 3.2% Off Premises Fermented Malt Beverage License held by Valero Diamond Metro, Inc., d/b/a Diamond Shamrock #1118, 1890 Wadsworth Blvd., should not be suspended or revoked, such hearing to be held on July 24, 2008.

The second complaint was for HMS Host, LLC, d/b/a Chili's Too, 14500 West Colfax Ave., #349, for an alleged violation of Sale to a Minor.

Mr. Miller found there was probable cause to believe that a violation of the Colorado and/or Lakewood codes had occurred and to serve a notice of hearing and order to show cause why the Hotel and Restaurant License held by HMS Host, LLC, d/b/a Chili's Too, 14500 West Colfax Ave., #349, should not be suspended or revoked, such hearing to be held on July 24, 2008.

The third complaint was for Super America, LLC, d/b/a Everyday Stores, 12015 West Cedar Drive, for an alleged violation of Sale to a Minor.

Mr. Miller found there was probable cause to believe that a violation of the Colorado and/or Lakewood codes had occurred and to issue a notice of hearing and order to show cause why the 3.2% Off Premises Fermented Malt Beverage License held by Super America, LLC, d/b/a Everyday Stores, 12015 West Cedar Drive, should not be suspended or revoked, such hearing to be held on July 24, 2008.

The fourth complaint was for 7-Eleven, Inc., d/b/a Seven Eleven #17299, 8390 West 14th Avenue, for an alleged violation of Sale to a Minor.

Mr. Miller found there was probable cause to believe that a violation of the Colorado and/or Lakewood codes had occurred and to issue a notice of hearing and order to show cause why the 3.2% Off Premises Fermented Malt Beverage License held by
7-Eleven, Inc., d/b/a Seven Eleven #17299, 8390 West 14th Avenue, should not be suspended or revoked, such hearing to be held on July 24, 2008.

The fifth complaint was for 7-Eleven, Inc., d/b/a Seven Eleven #22063, 11599 W. Colfax Ave., for an alleged violation of Sale to a Minor.

Mr. Miller found there was probable cause to believe that a violation of the Colorado and/or Lakewood codes had occurred and to issue a notice of hearing and order to show cause why the 3.2% Off Premises Fermented Malt Beverage License held by 7-Eleven, Inc., d/b/a Seven Eleven #22063, 11599 W. Colfax Ave., should not be suspended or revoked, such hearing to be held on August 14, 2008.

The sixth complaint was for Safeway Store Forty Five, Inc., d/b/a Safeway Store #2342, 11088 West Jewell Ave., for an alleged violation of Sale to a Minor.

Mr. Miller found there was probable cause to believe that a violation of the Colorado and/or Lakewood codes had occurred and to issue a notice of hearing and order to show cause why the 3.2% Off Premises Fermented Malt Beverage License held by Safeway Store Forty Five, Inc., d/b/a Safeway Store #2342, 11088 West Jewell Ave., should not be suspended or revoked, such hearing to be held on August 14, 2008.

The seventh complaint was for Happy Hour Liquors, LLC, d/b/a Happy Hour Liquors, 305 S. Kipling St., #F, for an alleged violation of Sale to a Minor.

Mr. Miller found there was probable cause to believe that a violation of the Colorado and/or Lakewood codes had occurred and to issue a notice of hearing and order to show cause why the Retail Liquor License held by Happy Hour Liquors, LLC, d/b/a Happy Hour Liquors, should not be suspended or revoked, such hearing to be held on August 14, 2008.

The eighth complaint was for SNT, LLC, d/b/a Willows Liquor, 10815 W. Jewell Ave., Unit #B, for an alleged violation of Sale to a Minor.

Mr. Miller found there was probable cause to believe that a violation of the Colorado and/or Lakewood codes had occurred and to issue a notice of hearing and order to show cause why the Retail Liquor License held by SNT, LLC, d/b/a Willows Liquor, should not be suspended or revoked, such hearing to be held on August 14, 2008.

ITEM 6 - ADJOURNMENT

There being no further business to come before the Authority, Richard Miller adjourned the meeting at 3:02 p.m.

Richard Miller, Hearing Officer, Lakewood Liquor and Fermented Malt Beverage Licensing Authority

Joyce Wamboldt, Liquor Licensing Specialist