MINUTES OF THE MEETING OF THE UTAH
ALCOHOLIC BEVERAGE CONTROL COMMISSION
HELD TUESDAY, NOVEMBER 29, 2016, AT 1625 SOUTH
900 WEST, SALT LAKE CITY, UTAH.
[Copies of the proposed agenda for this meeting were emailed to all persons on the regular email list (a copy of which is located in the front of the minute book) and to all of the individuals and groups on the agenda (applicants, those with violations, etc.) on Wednesday, November 23, 2016. A copy of the final agenda was posted on the bulletin board at the DABC Administrative Office, emailed to the Salt Lake Tribune and the Deseret News, and posted on the Utah Public Notice Website by10:00 a.m. on Monday, November 28, 2016.]
Chairman John T. Nielsen called the meeting to order at 10:00 a.m.
Commissioners Present: John T. Nielsen, Jeff Wright, Kathleen McConkie Collinwood, Olivia Agraz, Steven Bateman and Neal Berube.
Staff Present: Sal Petilos, Director; Cade Meier, Deputy Director; Nina McDermott, Compliance, Licensing and Enforcement Director; Man Diep, Finance Director; and Tim Beardall, Internal Audit Director.
Also Present: Sheila Page, Asst. Attorney General.
PLEDGE OF ALLEGIANCE:
Bonnie Bills led the group in the Pledge of Allegiance.
APPROVAL OF MINUTES:
Upon motion of Ms. Agraz, seconded by Ms. McConkie, it was unanimously voted to approve the minutes of the Commission Meeting held October 25, 2016.
ANNOUNCEMENTS:
Mr. Nielsen made the following announcements:
a. Proposed Future Meeting Schedule: (subject to change)
- Tuesday, December 27, 2016
- Tuesday, January 31, 2017
b. Store Hours:
- Saturday, December 24, 2016 (Christmas Eve)
All state liquor stores will close at 6:00 p.m.
- Saturday, December 31, 2016 (New Year’s Eve)
All state liquor stores will close at 7:00 p.m.
c. Holiday Closures:
- Monday, December 26, 2016 (Christmas Day Observed)
Liquor stores and the DABC administrative office and warehouse
will be closed.
- Monday, January 2, 2017 (New Year’s Day Observed)
Liquor stores and the DABC administrative office and warehouse
will be closed.
d. License Renewals:
- Wednesday, November 30, 2016
Deadline for filing all renewal materials and paying fees for the
following licenses, permits and certificates:
- Liquor Warehouse
- Beer Wholesaler
- Brewers located outside of Utah
- Local Industry Representative
- Utah Manufacturers – Breweries/Wineries/Distilleries
- Public Service Permits
VIOLATIONS:
* Referral Source – State Bureau of Investigation (SBI)
a. Consent Calendar:
[The following Consent Calendar items include uncontested letters of admonishment (written warnings) and settlement agreements that have been agreed to and accepted by the licensees. They are considered as a block with one vote unless one of the commissioners request that any item be removed for individual discussion. A summary of consent calendar items was distributed to the commissioners and is attached and made part of these minutes.]
(1) Mariscos Los Chinchorros, Provo, and *SBI (RB)
Stephanie Paola (employee).
(2) Coral Canyon Restaurant, Washington, *SBI (RE)
and April Donn (employee).
(3) Himalayan Kitchen, South Jordan, and *SBI (RL)
Kerry Smith (employee).
(4) Mollie & Ollie, Salt Lake, and Tracy *SBI (RL)
Gingell (employee).
(5) Rancher Café & Gold Room, Delta, and *SBI (RE)
Daile Lovell (employee).
Sheila Page asked the commissioners to strike #1 Mariscos Los Chinchorros and #2 Coral Canyon Restaurant and approve the balance of the consent calendar.
Ms. McConkie moved to approve the following consent calendar items #3 Himalayan Kitchen in South Jordan, #4 Mollie & Ollie in Salt Lake, and #5 Rancher Café & Gold Room in Delta. Ms. Agraz seconded the motion which passed unanimously.
b. Orders to Show Cause:
(1) Park City Live, Park City.
Rob Hansen explained that the General Manager, Layne Edwards, had two disqualifying offenses appear on his background check in January. Mr. Hansen noted that he is trying to get them expunged but it is taking longer than is normally allowed. Ms. McDermott clarified that the commission may take action against the license held by Park City Live for having a disqualified manager, not the individual.
Gary Thorup, Layne Edwards and Kathryn Burns from Park City Live came forward to address the commission. Mr. Edwards gave an overview and timeline of the violations and the steps he has taken to have them expunged. He also outlined his interactions with the department and his employer.
Mr. Edwards, Mr. Thorup, Ms. Burns, Ms. Page, Ms. McDermott, and the commissioners discussed the status of his expungements, when Park City Live became aware of the disqualifying background, and what sanctions are available to the commission.
Mr. Berube made a motion that the commission not impose sanctions on Park City Live at this time, and allow Mr. Edwards to continue as a manager with the stipulation that the violations be expunged within 60 days or the commission reserves the right to impose sanctions. Mr. Wright seconded the motion which passed unanimously.
(2) California Night Club, Salt Lake City.
Ms. McDermott stated that the department issued an Order to Show Cause after receiving notice that the Tax Commission revoked the tax license of California Night Club and they are no longer in compliance with the taxing agency. California Night Club received proper notice and is here to explain why they have not been able to reinstate their tax license. Staff recommends revocation.
Ms. Page added that they have had an open violation for over a year. Ms. Page has not been able to get the licensee to participate but would have recommended revocation.
Jesus Palomares came forward to address the commission. Mr. Palomares explained he has paid the taxes and is selling the business. He asked for thirty days to sell the club. Ms. Page stated that the open violation is their third violation. The last violation resulted in a 60 day suspension and a large fine for minors on the premise, failure to scan and sale to a minor.
Ms. McDermott reiterated that staff recommends revocation as the department has not been notified by the Tax Commission that their tax license was reinstated, and the licensee has been unavailable for audit visits and responding to violations. It is also of concern that he wants 30 days to sell the license, not to fix the problems and continue operating.
Mr. Wright moved to approve revocation of the club license from California Night Club in Salt Lake City. Mr. Bateman seconded the motion which passed unanimously.
c. Notices of Forfeiture:
(1) Lamb’s Grill, Salt Lake City. (RE)
Ms. McDermott gave an overview of the Lamb’s Grill ownership chain and the statute/rule requirements regarding a change in ownership. Licensees must notify the department within 30 days if 50% ownership is transferred. Lamb’s Grill has changed ownership several times and the department should have been notified June 1, 2015. Per statute the license was forfeited effective June 1, 2015. The commission may sanction the licensee for failing to report the ownership change initially and when the license was renewed in September 2015.
Tanner Strickland Lenart and Wayne Barlow from Lamb’s Grill came forward to address the commission. Ms. Lenart stated that they are not disputing the facts. She explained that the lack of notification was out of ignorance and gave an overview of the events resulting in the ownership changes. She also noted that the fraudulent documents submitted to the department to renew the license were prepared by former employees, not Mr. Barlow. They realize the license was forfeited and the grandfathered bar is gone. They are willing to construct the wall to be in compliance and have reapplied for a restaurant license.
Mr. Barlow gave a history of Lamb’s Grill and outlined a new plan to ensure they stay in compliance.
The commissioners, Ms. McDermott, Ms. Page, Ms. Lenart, and Mr. Barlow discussed the circumstances and possible sanctions. Ms. McDermott noted two airport lounges received heavy fines and brief suspensions. If a sanction is imposed, the minimum fine is $9,000 up to $25,000 and/or a suspension of 15 days up to revocation.
Ms. Agraz moved to impose a fine on Lamb’s Grill in Salt Lake City of $9,000 and no further sanctions. Mr. Berube seconded the motion which passed unanimously.
(2) Dawg Pound Tavern, South Salt Lake. (CL)
(employees).
Ms. McDermott explained that Dawg Pound Tavern settled a few violations with Ms. Page and agreed to forfeiture.
Mr. Bateman moved to affirm the club license forfeiture and approve the settlement agreement for Dawg Pound Tavern in South Salt Lake. Mr. Wright seconded the motion which passed unanimously.
COMPLIANCE UPDATE:
Ms. McDermott gave a staff update noting Abe Kader had foot surgery and is just returning to work, and Dan Oberg got married last week.
Ms. McDermott noted several administrative rules are in the current Utah State Bulletin. Public comments will be accepted until December 15, 2016.
CHANGE OF LOCATION REQUESTS:
a. MacCool’s. (CL)
From: 2510 Washington Blvd., Ogden.
To: 2570 Washington Blvd., Ogden.
Margaret Hardie gave an overview of the application stating staff recommends approval.
Mr. Wright moved to approve a change of location for MacCool’s in Ogden. Ms. McConkie seconded the motion which passed unanimously.
b. Cognition Winery, Park City. STRIKE
MANUFACTURE REPRESENTATIVE APPLICANT:
a. Maegan Butterfield, Salt Lake City.
Steve Wallenda gave an overview of the application stating it is complete and staff recommends approval.
Ms. Agraz moved to approve a manufacture representative license for Maegan Butterfield in Salt Lake City. Ms. McConkie seconded the motion which passed unanimously.
INDUSTRIAL MANUFACTURING APPLICANT:
a. Vol-Sol, Salt Lake City.
Steve Wallenda gave an overview of the application noting staff recommends approval.
Mr. Wright moved to approve an industrial manufacturing license for Vol-Sol in Salt Lake City. Ms. Agraz seconded the motion which passed unanimously.
MANUFACTURE BREWING APPLICANT:
a. Roha Brewing Project, Salt Lake City. STRIKE
BEER WHOLESALER APPLICANTS:
a. General Distributing, Wellington.
b. General Distributing, Moab.
Steve Wallenda gave an overview of the applications noting they are both complete and staff recommends approval.
Ms. McConkie moved to approve beer wholesaler licenses for General Distributing in Wellington and General Distributing in Moab. Mr. Wright seconded the motion which passed unanimously.
PACKAGE AGENCY APPLICANTS:
a. Cognition Winery, Park City. STRIKE
b. Roha Brewing Project, Salt Lake City. STRIKE
c. Homewood Suites, Moab. STRIKE
EXTENDED CLOSURE REQUEST:
a. North Fork Table & Tavern, Eden. (RE)
Nina McDermott explained that staff granted a 90-day closure that expires in mid-December.
Mark Shoretel from North Fork came forward to address the commission. They are asking for a 30-day extended closure as the Powder Mountain Resort drives business and the extension will mitigate losses that may occur. He noted that they are also applying for a club license today.
Mr. Berube moved to approve an extended closure until December 27, 2016 for North Fork Table & Tavern in Eden. Mr. Wright seconded the motion which passed unanimously.
LICENSE APPLICATIONS:
a. Impact of Violation History on New Applicants.
Ms. McDermott led a discussion with the commissioners and Ms. Page regarding the impact of a recent violation history or pending violation on any license applicant. They discussed how long the application should be held after a violation. Mr. Nielsen noted it is important that the public hear what the commissioners are thinking. Additionally, club applicants not ready to open will hold their place in line but not be considered until they are close to opening.
It was agreed there are several loose ends. A definitive policy will be presented at the December 27, 2016 meeting. For today, the commission will not consider applications with a pending violation or a violation within the last six months. Club applicants will not be considered unless they will be opening within 90 days.
b. Full Service Restaurant Applicants:
New Applicants:
(1) Hot Mama’s Pizza & Brew, Duck Creek.
(2) Hideout Steakhouse, Myton. STRIKE
(3) Red Carpet Cinema, Ogden. (Conditional) (Proximity)
(4) Cognition Winery & Bistro, Park City. STRIKE
(5) Stein Eriksen Residences Restaurant, Park City. (Conditional)
(6) Church Public House, Park City. (Conditional) (Back-Up Application
for Club)
(7) Sa’me Sushi, Salt Lake City. (Proximity)
(8) Harmon’s City Creek, Salt Lake City. STRIKE
(9) Lamb’s Grill, Salt Lake City. (Conditional)
(10) Tin Roof Grill, Sandy. (Violation History)
(11) Woodland Biscuit Company, Woodland. (Proximity)
Cori Price gave an overview of the applications. Items #2 Hideout Steakhouse, #4 Cognition Winery, and #8 Harmon’s City Creek were stricken. Ms. Price noted that #3 Red Carpet Cinema in Ogden and #7 Sa’me Sushi in Salt Lake City require proximity variances. Public hearings were held with no opposition and the department did receive consent from the governing authorities.
Ms. Agraz moved to approve full service restaurant licenses for #1 Hot Mama’s Pizza & Brew in Duck Creek; #3 Red Carpet Cinema in Ogden, along with a proximity variance; #5 Stein Eriksen Residences Restaurant in Park City; #6 Church Public House in Park City; #7 Sa’me Sushi in Salt Lake City, along with a proximity variance; and #10 Tin Roof Grill in Sandy. Mr. Wright seconded the motion which passed unanimously.
Tanner Strickland Lenart came forward to address the commission regarding #9 Lamb’s Grill. She noted they understand the license is conditional and are working to enclose the bar structure to be in compliance. Mr. Barlow outlined how the bar structure is being enclosed. Ms. McDermott noted staff recommends approval conditioned upon receipt of a business license, final inspection, and the fine imposed in this meeting satisfied.
Mr. Bateman moved to approve a full service restaurant license for #9 Lamb’s Grill in Salt Lake City conditioned upon receipt of a business license, final inspection, and the fine imposed in this meeting satisfied. Mr. Wright seconded the motion which passed unanimously.
Ms. Price stated that #11 Woodland Biscuit Company is in proximity to a church. A hearing was held with one person in opposition. The department did not receive a letter of consent. As a result, the licensee will have to demonstrate three factors: 1) there is a substantial unmet public demand to consume an alcoholic product within the geographic boundary; 2) there is no reasonably viable alternative for satisfying the unmet demand; and 3) there is no reasonably viable alternative location.
Laurel Bartmess came forward to address the commission. Ms. Bartmess explained they are the only retail building in town and there are no other options for food or drinks. Ms. Page asked about the parking complaint from Mr. Walker. Ms. Bartmess explained that he lives next to the building and they are working with him to make sure his property is not blocked.