MINUTES OF THE MEETING OF THE UTAH
ALCOHOLIC BEVERAGE CONTROL COMMISSION
HELD TUESDAY, NOVEMBER 24, 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, November 18, 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 9:00 a.m. on Monday, November 23, 2015.]
Chairman John T. Nielsen called the meeting to order at 9:10 a.m.
Commissioners Present: John T. Nielsen, Jeff Wright, Steven Bateman, and Neal Berube.
Staff Present: Sal Petilos, Director; and Nina McDermott, Compliance, Licensing and Enforcement Director.
Also Present: Sheila Page, Asst. Attorney General.
PLEDGE OF ALLEGIANCE:
Chris Johnson led the group in the Pledge of Allegiance.
APPROVAL OF MINUTES:
Upon motion of Mr. Berube, seconded by Mr. Wright, it was unanimously voted to approve the minutes of the Commission Meeting, Operations and Procurement Subcommittee Meeting, and Compliance, Licensing and Enforcement Subcommittee Meeting held October 27, 2015.
ANNOUNCEMENTS:
Mr. Nielsen made the following announcements:
a. Proposed Future Meeting Schedule: (subject to change)
- Tuesday, December 22, 2015
- Tuesday, January 26, 2016
b. License Renewals:
- Monday, November 30, 2015
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
c. Holiday Closure:
- Thursday, November 26, 2015 (Thanksgiving Day)
Liquor stores and the DABC administrative office and warehouse will be closed.
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) Winger’s, Murray, and Mary Ciammaichella *SBI (RE)
(employee).
(2) Aristo’s Greek Restaurant, Salt Lake, and *SBI (RE)
Taylor Sine (employee).
(3) Hunan Garden, Salt Lake, and Ling Liu *SBI (RL)
(employee).
(4) Joe’s Crab Shack, West Jordan, and Melisa *SBI (RE)
Salazar (employee).
(5) Rock & Reily’s, Park City and “Adam”, *SBI (CL)
“Drew”, and “Dylan” (employees).
(6) Rubio’s Mexican Grill, American Fork, *SBI (RB)
And Brittney Johnson (employee).
(7) West Ridge GC Café, West Valley, and *SBI (BE)
Kylee Meryhew (employee).
Sheila Page asked the commissioners to strike #1 Winger’s, #3 Hunan Garden, and #4 Joe’s Crab Shack and approve the balance of the consent calendar.
Mr. Bateman moved to approve the consent calendar with the exception of #1 Winger’s, #3 Hunan Garden, and #4 Joe’s Crab Shack. Mr. Wright seconded the motion which passed unanimously.
LICENSE APPLICATIONS: [Note this item was moved to the front of the agenda.]
e. Limited Service Master License Applicant:
(1) Starbucks Coffee - 5 locations
a. Holladay. (Conditional)
b. Lehi. (Conditional)
c. Farmington. (Conditional)
d. Salt Lake. (Conditional)
e. Park City. (Conditional)
Catherine Parrish Lake from Stoel Rives and Shannon Boldizsar from Starbucks Coffee came forward to address the commission. They explained that Starbucks is seeking a master limited service restaurant license for five stores in Utah. Ms. Boldizsar gave an overview of the Starbucks Evenings program currently in 75 stores across the country which includes wine, beer, and small plates.
Mr. Nielsen explained that the commission is not in a position to make a decision today and thanked them for their presentation.
HEARING ON SUSPENSION FOR RETURNED CHECKS:
Nina McDermott explained that there are three outstanding licensee checks. Licensees are given three weeks to make full payment on returned checks before their licenses are suspended pending a commission hearing. Ms. McDermott is waiting for confirmation from the accounting department as to whether those checks have been paid in full. If they are not paid, the licensees will face revocation at the next commission meeting.
COMPLIANCE UPDATE:
Nina McDermott noted they are finishing up the year and trying to complete all the statutorily required club audits; as well as full and limited restaurant audits required by policy.
CHANGE OF CLUB CLASSIFICATION:
a. Glenwild Golf Club & Spa, Park City – Equity Club to Dining Club.
Margaret Hardie gave an overview of the request to change from an equity club to a dining club. Staff recommends approval.
Mr. Wright moved to grant a change of club classification from an equity club to a dining club for Glenwild Golf Club & Spa in Park City. Mr. Bateman seconded the motion which passed unanimously.
b. Zest, Salt Lake City – Social Club to Dining Club. STRIKE
REQUEST FOR AN EXTENDED CLOSURE:
a. Faustina Restaurant, Salt Lake City.
Ms. McDermott gave an overview of the request for an extended closure to complete a remodeling project.
A representative from Faustina Restaurant came forward and explained the construction issues that are delaying completion of the remodeling project. Ms. Page expressed concern that the extensive remodeling may not meet the requirements for a grandfathered bar. The representative explained that the bar area will not be changed.
Mr. Wright moved to approve an extended closure until the February 2016 commission meeting for Faustina Restaurant in Salt Lake City. Mr. Bateman seconded the motion which passed unanimously.
TRANSFER OF LOCATION APPLICATIONS:
a. Wiseguy’s Comedy (CL)
From: 2194 West 3500 South, West Valley.
To: 194 South 400 West, Salt Lake City.
Stephne Hanson explained that they are planning to close the West Valley location and are requesting to move the club license to their Salt Lake City location. Staff recommends approval.
Mr. Wright moved to approve a club license transfer of location for Wiseguy’s Comedy. Mr. Berube seconded the motion which passed unanimously.
b. Sundial Medicinals (IN)
From: 484 Sundial Drive, Moab.
To: 550 North Main, Suite D, Moab.
Abe Kader gave an overview of the application stating staff recommends approval.
Mr. Berube moved to approve an industrial license transfer of location for Sundial Medicinals. Mr. Wright seconded the motion which passed unanimously.
c. Totem’s Club STRIKE
SCIENTIFIC/EDUCATIONAL PERMIT APPLICATION:
a. Davis Applied Technology Center, Kaysville.
Abe Kader gave a quick overview of the application stating staff recommends approval.
Jonathon Fike from DATS came forward to address the commission. He explained that they will be utilizing wine in the cooking process in order to meet the requirements for accreditation from the American Culinary Federation. The alcohol is used strictly for cooking, not tasting.
Mr. Wright moved to approve a scientific/educational permit for Davis Applied Technology Center in Kaysville. Mr. Berube seconded the motion which passed unanimously.
INDUSTRIAL MANUFACTURING APPLICATION:
a. Pharmco – AAPER, Salt Lake City.
Abe Kader gave an overview of the application stating staff recommends approval.
Frank Richards from Pharmco came forward to address the commission. He gave an overview of their pharmaceutical company and Utah partner.
Mr. Bateman moved to approve an industrial manufacturing license for Pharmco – AAPER in Salt Lake City. Jeff Wright seconded the motion which passed unanimously.
PUBLIC SERVICE PERMIT APPLICATION:
a. Xtra Airways, Florida.
Abe Kader gave an overview of the application stating staff recommends approval.
Mr. Wright moved to approve a public service permit for Xtra Airways in Florida. Mr. Berube seconded the motion which passed unanimously.
RELIGIOUS WINE PERMIT APPLICATION:
a. Greek Orthodox Mission Parish of Utah, Cottonwood Heights.
Abe Kader gave an overview stating the application is complete and staff recommends approval.
Mr. Wright moved to approve a religious wine permit for the Greek Orthodox Mission Parish of Utah in Cottonwood Heights. Mr. Bateman seconded the motion which passed unanimously.
LICENSE APPLICATIONS: [continued from Page 3]
a. Full Service Restaurant Applicants:
License Transfers:
(1) Totem’s Restaurant, Salt Lake City.
New Applicants:
(1) Hyatt Place, Farmington (Conditional)
(2) Josephine’s, Kamas
(3) Player’s Sports Grill, Midvale.
(4) Bodega on Main, Park City.
(5) Del Mar Al Lago, Park City. STRIKE
(6) Naked Fish, Salt Lake City.
Rob Hansen gave an overview of the license transfer application for #1 Totem’s Restaurant noting it is no longer conditional.
Mr. Wright moved to approve a full service license transfer for #1 Totem’s Restaurant in Salt Lake City. Mr. Bateman seconded the motion which passed unanimously.
Mr. Hansen gave an overview of the new applications asking the commissioners to strike #5 Del Mar Al Lago and noting #2 Josephine’s and #4 Bodega on Main are no longer conditional
Mr. Wright moved to approve a conditional full restaurant license for #1 Hyatt Place in Farmington; and full service restaurant licenses for #2 Josephine’s in Kamas, #3 Player’s Sports Grill in Midvale, #4 Bodega on Main in Park City and #6 Naked Fish in Salt Lake City. Mr. Berube seconded the motion which passed unanimously.
b. Club Applicant:
License Transfer:
(1) Totem’s Club, Salt Lake City. STRIKE
c. On-Premise Banquet Catering Applicant:
License Transfer:
(1) DT Park City Hotel @ Yarrow Hotel, Park City.
New Applicant:
(1) Hyatt Place, Farmington. (Conditional)
Margaret Hardie gave an overview of the license transfer application for #1 DT Park City Hotel @ Yarrow Hotel noting it is no longer conditional. Ms. Hardie also gave an overview of the new application for #1 Hyatt Place in Farmington noting it is conditional.
Mr. Wright moved to approve an on-premise banquet catering license transfer for #1 DT Park City Hotel @ Yarrow Hotel in Park City; and a conditional on-premise banquet catering license for #1 Hyatt Place in Farmington. Mr. Bateman seconded the motion which passed unanimously.
d. Limited-Service Restaurant Applicants:
New Applicants:
(1) Parry Lodge, Kanab. (Proximity Variance Needed)
(2) Stage Coach Grille, La Verkin.
(3) Dolphin Restaurant, Ogden STRIKE
(4) New Akasaka Sushi, Salt Lake City.
(5) Red Mermaid Bistro, Salt Lake City
(6) The Granary Café, Santa Clara STRIKE
(7) R & R BBQ, South Jordan. (Conditional) (Pending Violation)
Margaret Hardie gave an overview of the applications asking the commissioners to strike #3 Dolphin Restaurant and #6 The Granary Café. Ms. Hardie noted #1 Parry Lodge will need a proximity variance.
Mr. Wright moved to approve limited service restaurant licenses for #1 Parry Lodge in Kanab, along with a proximity variance; #2 Stage Coach Grille in La Verkin; #4 New Akasaka Sushi in Salt Lake City; #5 Red Mermaid Bistro in Salt Lake City; and a conditional limited service restaurant license for #7 R & R BBQ in South Jordan. Mr. Bateman seconded the motion which passed unanimously.
PARENTS EMPOWERED UPDATE:
Doug Murakami distributed the annual report and summarized the accomplishments of the Parents Empowered campaign over the last year.
OPERATIONS UPDATE:
a. Covert Underage Buyer Operations.
Anita Knowley stated that 46 covert underage buyer (CUB) operations were conducted with 43 stores and package agencies passing. Two stores and one package agency failed and the required disciplinary actions were taken.
b. Package Agency Audits.
Ms. Knowley stated that there were no scheduled package agency audits conducted. Two unannounced package agency audits were conducted with both passing. All store cash counts were found to be intact.
c. Listed Items.
Tony Gann reported that the warehouse has 526,000 cases and that general items are 97.7% in stock. He reported that 10 general and 7 limited items were listed, and 10 general items were delisted.
FINANCIAL UPDATE:
a. Financial Statement.
b. Department Dashboard.
David Higley summarized the financial statement and department dashboard. He noted that year-to-date case sales have increased by 50,687 (4.8%) and retail sales have increased by $9,197,859 (7.32%) over last year.
PACKAGE AGENCY CHANGE OF OWNERSHIP APPLICATION:
a. The Newpark Hotel, Park City – Requesting Type 1 with Type 4 Privileges.
Anita Knowley gave an overview of the change of ownership application noting they are requesting Type 4 privileges for room service. Staff recommends approval.
Mr. Wright moved to approve a Type 1 with Type 4 privileges package agency ownership change for The Newpark Hotel in Park City. Mr. Bateman seconded the motion which passed unanimously.
PACKAGE AGENCY CONSIGNMENT INCREASE REQUEST:
a. PA 139 – Beaver.
Anita Knowley gave an overview of the consignment increase request. PA 139 in Beaver is requesting a $3,000 increase.
Mr. Bateman moved to approve a $3,000 consignment increase for PA 139 in Beaver. Mr. Wright seconded the motion which passed unanimously.
QUESTIONS/COMMENTS FROM COMMISSIONERS AND PUBLIC:
· Jay Yahne from the Hive Winery came forward and asked that the Special Price Allowance (SPA) program be extended to limited products.
· Tracy Creno came forward and addressed the commission regarding security issues and employee problems at the Sandy liquor store.
· James Hartvigsen came forward to address the commission. Mr. Hartvigsen stated that he was wrongfully terminated from DABC and requested an apology and his job back.
DISCUSSION OF THE CHARACTER AND PROFESSIONAL COMPETENCE OF THE DABC DIVISION OF FINANCE DIRECTOR CANDIDATES:
Mr. Wright moved that the commission go into a closed meeting to discuss the character, professional competence, or physical or mental health of an individual. Mr. Bateman seconded the motion. Mr. Wright, Mr. Nielsen, Mr. Bateman and Mr. Berube voted yea, the motion passed. [10:00 a.m.]
APPOINTMENT OF THE DABC DIVISION OF FINANCE DIRECTOR:
Mr. Wright made a motion to adjourn the closed session and reconvene in an open meeting. Mr. Berube seconded the motion. Mr. Wright, Mr. Nielsen, Mr. Bateman and Mr. Berube voted yea, the motion passed. [10:25 a.m.]
Mr. Petilos stated that he would like to appoint Man Diep as the DABC Division of Finance Director.
Mr. Wright made a motion of support for the decision to appoint Man Diep as the DABC Division of Finance Director. Mr. Bateman seconded the motion which passed unanimously.
There being no further business, Mr. Wright moved to adjourn the meeting at 10:29 a.m. Mr. Bateman seconded the motion which passed unanimously.
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Chairman
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