MINUTES OF THE MEETING OF THE UTAH
ALCOHOLIC BEVERAGE CONTROL COMMISSION
HELD TUESDAY, APRIL 28, 2015, 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, April 22, 2015. 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 by 10:00 a.m. on Monday, April 27, 2015.]
Chairman David Gladwell called the meeting to order at 10:00 a.m.
Commissioners Present: David Gladwell, John T. Nielsen, Constance White, Olivia Agraz and Steven Bateman.
Staff Present: Sal Petilos, Director; Tom Zdunich, Deputy Director; Nina McDermott, Compliance, Licensing and Enforcement Director; Chris Kamens, Finance Director; and Man Diep, Internal Audit Director.
Also Present: Sheila Page, Asst. Attorney General.
PLEDGE OF ALLEGIANCE:
Nina McDermott led the group in the Pledge of Allegiance.
APPROVAL OF MINUTES:
Upon motion of Ms. White, seconded by Mr. Nielsen, it was unanimously voted to approve the minutes of the Commission Meeting held March 24, 2015.
ANNOUNCEMENTS:
Mr. Gladwell made the following announcements:
a. Proposed Future Meeting Schedule: (subject to change)
- Tuesday, May 26, 2015
- Tuesday, June 23, 2015
b. Holiday Closure:
- Monday, May 25, 2015 (Memorial Day)
Liquor stores and the DABC administrative office and warehouse
will be closed.
QUESTIONS/COMMENTS FROM COMMISSIONERS AND PUBLIC:
Mr. Gladwell acknowledged the presence of Senator Jerry Stevenson and Senator Karen Mayne. Senator Mayne came forward to address the commission.
Senator Mayne expressed frustration with DABC management after receiving email after email outlining issues with DABC store employees. She expressed concern about low morale and the high number of part-time employees.
She asked that the commission and management look at multiple issues and fix them if needed. Some of the issues included putting retiring employees on administrative leave; managers overseeing multiple stores; reducing store man hours; high turnover; constantly changing policies; stocking and ordering product; bullying and spying; hiring and time card procedures. She stated that if the department needs more money to hire full time employees to let the legislators know.
PARENTS EMPOWERED UPDATE:
Doug Murakami gave an update on the Parents Empowered campaign. A press event was held this week launching a partnership with Sandy City to get the message out that adults should not provide alcohol to minors.
Mr. Murakami will also be reporting to the Utah Substance Abuse Advisory Council today. Parents Empowered is mandated to present twice yearly.
ADVISORY BOARD UPDATE:
Ms. McDermott updated the commission on the recent Alcoholic Beverage Control Advisory Board meeting. She noted that Commissioner White attended for Commissioner Wright and Vice-Chair Fred Boutwell conducted the meeting. Ms. White encouraged the commissioners to attend if possible as the meeting was interesting with thoughtful input. She noted that the board members are engaged and the industry is well represented.
The board members discussed the expiring board appointments including full service restaurant, fraternal club, wholesaler, banquet catering, reception center, and beer only restaurant. The deadline for sending resumes to fill the appointments is May 1, 2015. Resumes should be sent to Vickie Ashby.
The board members also discussed the legislative session; status of the violation grid administrative rule recommendations; and possible rule amendments to define premises in dual licensed facilities, outline accounting procedures in Type 5 package agencies, update background check procedures, consolidate rules for retail licenses, and update event permit requirements. Finally, Ms. McDermott provided an overview of the special order and store order policies that will replace the administrative rules.
Mr. Gladwell thanked the board members for their service.
ADMINISTRATIVE RULES:
a. Proposed Rule Amendments to Approve for the Rulemaking Process:
- R81-1-26 Criminal History Background Checks.
- R81-2-9 Accepting Credit Cards as Payment for Liquor.
R81-3-19 Credit Cards.
Ms. McDermott gave an overview of the amendment to R81-1-26 Criminal History Background Checks. The amendment changes the procedure for collecting and storing background checks as a result of the passage of SB198.
Mr. Bateman moved to approve the proposed rule amendment to R81-1-26 Criminal History Background Checks and instructed staff to initiate rulemaking. Mr. Nielsen seconded the motion which passed unanimously.
Ms. McDermott gave an overview of the amendments that repeal R81-2-9 and R81-3-19. The repeals are necessary to allow the director to make internal department policies regarding payment for products. The department received funding to accept credit card payments from licensees.
Ms. White moved to approve the proposed rule amendments to R81-2-9 Accepting Credit Cards as Payment for Liquor and R81-3-19 Credit Cards and instructed staff to initiate rulemaking. Mr. Nielsen seconded the motion which passed unanimously.
b. Proposed rule amendments to amend or assign effective dates:
- R81-1-6 Violation Schedule.
Ms. McDermott stated that the first rule amendment to R81-1-6 Violation Schedule related to raising the fine for employees has gone through the rulemaking process. No public comments were submitted.
Mr. Nielsen moved to approve the proposed rule amendment to R81-1-6 Violation Schedule and assign an effective date of today, April 28, 2015. Ms. White seconded the motion which passed unanimously.
- R81-1-3 Special Orders of Liquor by Public.
R81-2-1
R81-3-5
Ms. McDermott stated that the amendments have gone through the rulemaking process. No public comments were submitted. She explained that R81-1-3 will replace R81-2-1 and R81-3-5 and gave an overview of the proposed rule amendments.
Mr. Bateman moved to approve the proposed rule amendments to R81-1-3, R81-2-1, and R81-3-5 Special Orders of Liquor by Public and assign an effective date of today, April 28, 2015. Mr. Nielsen seconded the motion which passed unanimously.
OPERATIONS AND PROCUREMENT SUBCOMMITTEE BUSINESS:
Constance White reported on the Operations and Procurement Subcommittee meeting. A quorum was not present so the subcommittee made recommendations for full commission approval.
a. Operations Update.
Staff reported that they conducted 25 store covert underage buyer (CUB) operations. One store failed and disciplinary action was taken. Staff also reported on package agency audits, store cash audits, monthly listed/delisted items, and store remodeling projects.
b. Financial Update.
Staff gave an overview of the March financials.
c. Type 5 Package Agency Applications.
The subcommittee recommended that the full commission approve Type 5 package agency licenses for Distillery 36 and 2 Row Brewing.
Ms. White moved to approve a Type 5 package agency license for Distillery 36 in West Valley City; and manufacture brewery and Type 5 package agency licenses for 2 Row Brewing in Midvale. Mr. Nielsen seconded the motion which passed unanimously.
d. Type 1 Package Agency Application.
The subcommittee recommended that the full commission approve a Type 1 package agency license for Outpost Spirits in Eden.
Ms. White moved to approve a Type 1 package agency license for Outpost Spirits in Eden. Ms. Agraz seconded the motion which passed unanimously.
e. Study of Long Lines During Peak Seasons.
Cade Meier, DABC Warehouse General Manager, is currently completing a master’s degree at the University of Utah. As part of the course his group did a study on the long lines in the stores during peak periods. Study results show a single line queuing system reduces the amount of time customers wait in line. The department will follow up on implementation noting some stores may be too small to accommodate a long single line.
Ms. White moved to approve the minutes of the Operations and Procurement Subcommittee meeting dated March 24, 2015. Ms. Agraz seconded the motion which passed unanimously.
CLUB LICENSE APPLICANTS:
License Transfers:
(1) 110 West, Salt Lake City. STRIKE
(2) Black Sheep Bar & Grill, West Jordan. (Social/Conditional)
(3) The Ruin, Salt Lake City. STRIKE
Previous Applicants:
(1) ‘Bout Time Pub & Grub, Park City. (Dining/Holds Summer Seasonal)
(2) Salt Flats Grill, Salt Lake City. (Dining/Holds Summer Seasonal)
(3) Pelican’s Pub, Vernal. STRIKE
(4) The Big Z, West Haven. (Social/Holds Summer Seasonal)
(5) The Bistro @ Courtyard Ogden, Ogden (Social)
(6) Proper Bar, Salt Lake City. (Social)
(7) East 69th, Salt Lake City. (Social/Conditional)
(8) Uinta Brewhouse Pub, Salt Lake City. (Social/Conditional)
(9) 50 West, Salt Lake City. (Dining/Conditional)
(10) Josephine’s, Kamas. (Dining)
(11) Pins & Ales Restaurant & Nightclub, Tooele. (Dining)
New Applicants:
(1) The Fallout, Salt Lake City. (Social/Conditional)
(2) Wong’s Asian Bistro Club, Salt Lake City. (Social/Conditional)
(3) Current Restaurant, Salt Lake City. STRIKE
(4) Wiseguy’s, West Valley City. (Social/Conditional)
Rob Hansen asked the commissioners to strike #1 110 West and #3 The Ruin and gave an overview of the remaining license transfer application #2 Black Sheep Bar & Grill.
Ms. Agraz moved to approve a conditional club license transfer for #2 Black Sheep Bar & Grill in West Jordan. Mr. Nielsen seconded the motion which passed unanimously.
Mr. Hansen noted that two new club licenses are available. Mr. Gladwell invited previous and new club applicants to address the commission.
Mr. Nielsen moved to grant club licenses to #4 The Big Z in West Haven and #9 50 West in Salt Lake City. Ms. Agraz seconded the motion which passed unanimously.
Mr. Gladwell asked if applicants were interested in a summer seasonal license. Proper Bar, The Fallout, and Wiseguy’s expressed interested.
Mr. Nielsen moved to grant a summer seasonal club license to #6 Proper Bar in Salt Lake City. Ms. Agraz seconded the motion which passed unanimously.
COMPLIANCE, LICENSING AND ENFORCEMENT SUBCOMMITTEE BUSINESS:
John T. Nielsen reported on the Compliance, Licensing and Enforcement Subcommittee meeting. Mr. Nielsen noted that a commission quorum was not present so the subcommittee made recommendations for full commission approval.
Ms. White moved to approve the minutes of the Compliance, Licensing and Enforcement Subcommittee meeting dated March 24, 2015. Ms. Agraz seconded the motion which passed unanimously.
a. Violations.
The subcommittee recommended that the full commission approve the consent calendar. There were no changes.
Mr. Nielsen moved to approve all items on the consent calendar. Ms. Agraz seconded the motion which passed unanimously.
b. Compliance Update.
Ms. McDermott gave a brief update on the division’s activities and goals.
c. Transfer of License Operational Requirement Discussion.
The subcommittee discussed the transfer of license requirement for a business to begin operations within 30 days. They reviewed the status of Under Current Club as they have a business license but are waiting on a conditional use permit and the city process may take up to 90 days. The subcommittee recommended that the full commission deem Under Current Club operational and in compliance with the statute.
Mr. Nielsen moved to deem Under Current Club operational and in compliance with the transfer of license statute. Ms. Agraz seconded the motion which passed unanimously.
d. Manufacture Brewery Application.
The subcommittee recommended approval of a manufacture brewery license for 2 Row Brewing in Midvale.
The commission approved a manufacture brewery license along with a Type 5 package agency license during the Operations Subcommittee report.
e. Industrial/Manufacturing Application.
The subcommittee recommended approval of an industrial manufacturing license for Beehive Bitters Company.
Mr. Nielsen moved to approve an industrial manufacturing license for Beehive Bitters Company in Roy. Ms. Agraz seconded the motion which passed unanimously.
f. Scientific/Educational Permit Applications.
The subcommittee recommended approval of scientific/educational permits for Salt lake Culinary Center and Painting with a Twist.
Mr. Nielsen moved to approve scientific/educational permits for Salt Lake Culinary Center in Salt Lake City and Painting with a Twist in Murray. Ms. Agraz seconded the motion which passed unanimously.
g. Transfer of Location Requests.
Now Nutraceuticals and Good Thymes were stricken, the subcommittee recommended approval of a location transfer for Shoga Japanese Sushi Bar effective upon receipt of the business license.
Mr. Nielsen moved to approve a location transfer for Shoga Japanese Sushi Bar in Orem effective upon receipt of the business license. Ms. White seconded the motion which passed unanimously.
h. Extended Closure Requests.
The subcommittee recommended approval of four extended closure requests.
Mr. Nielsen moved to approve extended closure requests for Paper Moon (CL) in Salt Lake City until the May 2015 commission meeting; Bistro on Main (RE) in Bountiful until the June 2015 commission meeting; Tokyo Sushi & Grill (RE) in Salt Lake City until the September 2015 commission meeting; and Atomic Burger/Atomic Lounge (CL & RE) in Moab until the June 2015 commission meeting. Ms. Agraz seconded the motion which passed unanimously.
i. License Applications.
The subcommittee recommended approval of the license applications for full service restaurant, on-premise beer recreational, beer only restaurant, and limited service restaurant. The banquet catering application was stricken.
Mr. Nielsen moved to approve full service restaurant license transfers for #1 Café Silvestre in Midvale, #2 Café Silvestre in Salt Lake City, and #4 Tarahumara in Midway. Mr. Gladwell seconded the motion which passed unanimously.
Mr. Nielsen moved to approve full service restaurant licenses for #1 Sego Restaurant in Kanab, #3 Jim’s Grill in Smithfield, along with a proximity variance, and #5 Bar Down Sports Bar & Grill in West Jordan; and conditional full service restaurant licenses for #2 Spitz, Home of the Doner Kebab, in Salt Lake City, along with a proximity variance, and #4 Baby Sumo in Springdale. Ms. Agraz seconded the motion which passed unanimously.
Mr. Nielsen moved to approve an on-premise beer recreational license for #1 Lakeside Café in Woods Cross. Ms. Agraz seconded the motion which passed unanimously.
Mr. Nielsen moved to approve beer only restaurant licenses for #1 The Galley Grill in Salt Lake City, #2 La Macarena in Salt Lake City, and #3 Irmita’s Restaurant in St. George. Ms. Agraz seconded the motion which passed unanimously.
Mr. Nielsen moved to approve limited service restaurant licenses for #1 Escalante Outfitters in Escalante, #2 East Moon Bistro in Lehi, and #3 Kenny Rays in Panguitch. Ms. Agraz seconded the motion which passed unanimously.
QUESTIONS/COMMENTS FROM COMMISSIONERS AND PUBLIC (continued):
· Sheila Page reminded the commission and those in attendance of the Advisory Board positions coming available on July 1, 2015. The Beer Only Restaurant position has never had a representative and is one of the biggest categories.