MINUTES OF THE MEETING OF THE UTAH
ALCOHOLIC BEVERAGE CONTROL COMMISSION,
COMPLIANCE, LICENSING AND ENFORCEMENT
SUBCOMMITTEE HELD TUESDAY, JUNE 25, 2013,
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, June 19, 2013. 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, June 24, 2013.]
John T. Nielsen called the meeting to order at 9:00 a.m.
Commissioners Present: David Gladwell and John T. Nielsen.
Staff Present: Nina McDermott, Compliance, Licensing and Enforcement Director.
Also Present: Sheila Page, Asst. Attorney General.
Mr. Nielsen explained that as the subcommittee does not have a quorum today, no motions or formal actions will be made. Staff will present the information on the agenda and the subcommittee will make recommendations to the full commission in the next meeting.
CLUB LICENSE RENEWALS:
Keith Zuspan stated that the commissioners were provided with four lists related to club renewals (attached and made part of these minutes).
List A1: Licensees who filed complete and timely renewal materials and are in good standing with all taxing agencies.
List A2: Licensees who filed complete and timely renewal materials but are not in good standing with all taxing agencies.
List A3: Licensees who filed renewal materials late. These applications will be considered during the “license applications” segment of the meeting.
List A4: Informational only list of licensees who chose not to renew their licenses.
Mr. Zuspan noted that the tax commission is not providing the amounts owed by the licensees not in good standing so staff will be unable to make recommendations on how well the businesses are operating.
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) Callie’s Café, Orem; and *SBI (RB)
Cindy Evans (employee). STRIKE
(2) Josh Futs (employee of *SBI (RE)
Wing Nutz, Taylorsville). STRIKE
(3) Red Corner China Diner, Midvale; *SBI (RB)
and Yitong Liu (employee).
(4) Los Montes Restaurant, Kamas; *SBI (RB)
and Cayenta Montes (employee).
(5) Red Banjo Pizza Parlor, Park City; *SBI (RL)
and Tyler Toly (employee). STRIKE
(6) Red Sea Ethiopian & Eritrean Café, *SBI (RL)
Salt Lake; and William Schute
(employee).
(7) Mahider Ethiopian Restaurant, Salt *SBI (RL)
Lake; and Sleshi Tadesse (employee). STRIKE
(8) Scorez, Lehi; and “Herbie” and “Jared” *SBI (CL)
(employees).
(9) Mi Pueblo Mexican Cuisine, Brian Head; *SBI (RE)
and Cynthia Snyder-Colvin (employee).
(10) Sonora Grill, Ogden; and Sereesha *SBI (RE)
Wood (employee).
(11) Allie’s American Grill, Provo; and *SBI (RE)
Takoya Holmes (employee).
(12) Balance Rock Eatery & Pub, Helper; *SBI (RB)
and Clay Iorg (employee).
(13) Banzai Teppan Yaki, West Valley; and *SBI (RL)
Gia A Ly (employee). STRIKE
(14) Barndogs Sports Bar, Roosevelt; and *SBI (TV)
Natasha Harmston (employee).
(15) Betty’s Café, Vernal; and Julia *SBI (RL)
Keebler (employee).
(16) California Pizza Kitchen, Orem; and *SBI (RE)
Allyson Leiker (employee).
(17) Cedars of Lebanon, Salt Lake; and *SBI (RE)
Shayla King (employee). STRIKE
(18) City Limits, Provo. STRIKE *SBI (CL)
(19) Copper Canyon Tavern, Salt Lake; *SBI (CL)
and Rusian Kirov (employee).
(20) Copper Onion, Salt Lake; and *SBI (RE)
Monica Felix (employee).
(21) Courtyard Café, Sandy; and *SBI (RE)
Kevin Hall (employee).
(22) Don Pedro’s, Vernal; and Sara *SBI (RE)
Zamorano (employee).
(23) Fat Cats, Ogden; and Alexia *SBI (BE)
Eisenhour (employee).
(24) Francesco’s, Taylorsville; and *SBI (RB)
Autumn Chamberlain (employee). STRIKE
(25) Jeffery Hendrickson (former *SBI (RE)
Employee of Iggy’s Sports Grill,
Midvale).
(26) La Fountain Restaurant, West Valley; *SBI (RB)
Jose Ramos (employee).
(27) La Frontera, Salt Lake; and Gustavo *SBI (RE)
Licona-Osornio (employee).
(28) La Puente, So. Salt Lake; and *SBI (RE)
Victoria Pulido (employee).
(29) Olive Garden, West Valley; and *SBI (RE)
Cody Steggall (employee).
(30) Pizza Hut, Vernal; and Taya Harper *SBI (RB)
(employee).
(31) Rino’s, Salt Lake; and Khosrow Takmil *SBI (RE)
(employee)
(32) Roosevelt Bowl, Roosevelt; and *SBI (BE)
Megan Washburn (employee). STRIKE
(33) Spin Café, Heber; and Addie *SBI (RE)
Clifton (employee).
(34) Taste of Punjab, Sandy; and *SBI (RL)
Hajinder Dosangh and Dosangh
Mantinder (employees). STRIKE
(35) Timpanogos Tavern, Heber; and *SBI (CL)
Cindy Rogers (employee).
(36) Valley 300 Lounge, Kearns; and *SBI (BE)
Kathy Smith (employee).
(37) Wells Club, Duchesne; and Ganiel *SBI (CL)
Pettit (employee).
(38) Win on Chinese Restaurant, Vernal; *SBI (RB)
and Lin Zheng Baio and Karayanto
Bong (employees).
(39) Wing Tips Bar & Bistro, Salt Lake; *SBI (RE)
And Griselda Lopez (employee).
(40) Wing Nutz, So. Jordan; and *SBI (RE)
Teri Murphy (employee).
(41) Yamato Japanese Restaurant, Orem; *SBI (RL)
and Jiyoung Park (employee).
(42) Salazar’s Mexican Café, Salt Lake; and *SBI (RB)
Sylvia Morales (employee).
(43) Barbacoa Mexican Grill, Sandy; and *SBI (RB)
Yolanda Morales (employee).
(44) Simon & Fanny’s, Midway; and *SBI (RE)
Casandra Chappell (employee).
(45) Vuz/Vuda, Draper. *SBI (CL)
Sheila Page asked the commissioners for feedback on licensees that enter into settlement agreements but fail to pay fines and/or return signed documents so are stricken from the agenda each month. She asked the commissioners to strike #1 Callie’s Café, #2 Josh Futs, #5 Red Banjo Pizza, #7 Mahider Ethiopian Restaurant, #13 Banzai Teppan Yaki, #17 Cedars of Lebanon, #18 City Limits, #24 Francesco’s, #32 Roosevelt Bowl and #34 Taste of Punjab.
Subcommittee members and Ms. Page discussed the consequences of not complying with the settlement agreements. It was determined those failing to pay or return signed agreements will be given a short grace period before moving to the next step, a hearing.
The subcommittee will recommend that the items on the consent calendar that are complete be approved by the full commission.
Mr. Gladwell also expressed concern that a suspension and fine don’t seem to be enough of an incentive to stop sale to minor violations. Ms. Page suggested that this topic be addressed by the Advisory Board as penalties are set by administrative rule. She noted some licensees are concerned with the low administrative penalties for employees. However, in addition to the administrative penalties from DABC, all employees are cited with a misdemeanor by law enforcement. The commission may want the Attorney General’s office to encourage the court to order a higher penalty for repeat offenders.
b. Hearing:
Sheila Page gave an overview of the most recent informal hearing on the Mixx, a reception center licensee in Salt Lake City. Once again the main issues are that they are serving from a bar structure when they are a reception center; and that they are selling tickets to the general public for a private event.
Representatives for the Mixx were not present. Ms. Page asked that the commission adopt the Findings of Fact and Conclusions of Law and impose the fines and suspensions recommended by the Hearing Officer. Staff recommends that rather than putting them on probation or extending the fine that the commission make it a straight penalty. In the future, the commission may want to bump second and third violations of a lower class to the next level.
Mr. Gladwell and Mr. Nielsen noted that the recommended fines and suspensions seem lenient for a second violation. Ms. Page explained that the issues are currently considered in the moderate category of the violation grid. Mr. Gladwell also noted that they have not paid the previous fine.
c. Hearing on Suspension of Licenses Due to Failure to Pay On Return Checks:
Nina McDermott explained that the department is tightening policies on licensee return checks as the financial loss for the department could be substantial.
She added that today this item is informational as four of the five licensees notified paid their outstanding balances. The fifth licensee is on the agenda today requesting an extended closure and will be handled later in the meeting.
REQUESTS TO WAIVE CRIMINAL BACKGROUND REQUIREMENT FOR A MANAGER:
Nina McDermott gave an overview of the statute that states the commission may not issue a license to a person who has been convicted of certain offenses. This requirement also applies to a person who is employed in a supervisory or managerial capacity. She added that once the license is granted, the commission has discretion regarding the criminal backgrounds of owners or managers and may revoke or suspend the license of an owner or manager if convicted. In the past when the convictions are discovered, an order to show cause was issued and the licensee appeared before the commission to explain why their licensed should not be suspended or revoked.
Mr. Nielsen stated he has looked at this item and is concerned that the statute appears to be a disqualifier for a person convicted of the crimes listed and is unsure of the commission’s authority to waive the requirement. Mr. Nielsen requested an informal opinion from the Attorney General’s office prior to taking action on the requests.
Mr. Nielsen stated that the subcommittee will not take action in this meeting, but feels it is important for the subcommittee to hear the requests from the licensees.
a. Olive Garden (RE), South Towne, Sandy.
Sean Darragh, Tom Campos (General Manger of the Sandy Olive Garden), and Michael Holje (attorney for Mr. Darragh) came forward to address the commission in favor of Mr. Darragh. Mr. Holje explained the legal actions being taken to reduce the criminal record. Mr. Campos explained that he had worked with Mr. Darragh for seven years. Originally he was unaware of Mr. Darragh’s criminal record but when it came to light, he has worked to help him qualify for management.
b. Buffalo Wild Wings (RE), West Valley.
Laura Lee (General Manager of the West Valley Buffalo Wild Wings) and Marcus Jenkins came forward to address the commission in favor on Mr. Jenkins. Mr. Jenkins explained he had been before the commission with his previous employer and was approved to be a manager. Mr. Jenkins has a disqualifying conviction in Idaho. His request for expungement was denied.
Mr. Nielsen reiterated the need for an informal opinion and added that the commissioners certainly want to have people succeed but not in a way that may exceed the authority of the commission.
CONVERSION OF FULL YEAR TO SEASONAL LICENSES:
a. ‘Bout Time Pub & Grub (RE), Cottonwood Heights.
b. The Breaks Sports Grill (RL), Daybreak, South Jordan.
Nina McDermott explained that several of the licensees with seasonal club licenses also hold an additional license of another type. As a result, licensees receive full year licenses and only use them half of the year. The department is asking for direction as to whether the licenses should be converted to seasonal, or if the licensee should be granted an extended closure for the six months they are using the seasonal club license.
Tim Ryan from ‘Bout Time Pub and Grub came forward to express his concerns. He feels using two seasonal licenses would potentially limit their flexibility in licensing. He feels it would be unfair and could endanger their license in the future. He would prefer an extended closure.
Sheila Page suggested this topic be discussed with the Alcoholic Beverage Control Advisory Board.
EXTENDED CLOSURE REQUEST:
a. Al Dente Trattoria E Bar (RE), Park City.
Abe Kader gave an overview of the request explaining that the licensee received a 90 day closure from staff for April – June and now needs additional time to complete the remodel. He added that they owe the department for a returned check which should have been paid last Friday. Mr. Kader is concerned that the licensee owes for a returned check and suggested the extended closure not be granted which would result in the license being forfeited at the end of the month.
Nina McDermott added that staff would like direction as to whether to make a claim on the bond for amount owed from the returned check. She also pointed out that they are not here to explain why they need the additional time.
LICENSE APPLICATION ISSUES:
a. Rock & Reilly’s (CL), Park City – Change of Ownership and Location.
Stephne Hanson explained that Rock & Reilly’s is requesting an ownership change and to move from 333 Main Street to 427 Main Street. Ms. Hanson stated that the application is complete and staff recommends approval.
b. Kerasma Restaurant (RE), Garden City.
Nina McDermott explained that Kerasma Restaurant is located in the Inn at Snow Meadows in Garden City. The original applicant for the license was convicted of selling alcohol without a license and is appealing the disqualifying offense. Her daughter is now applying for the restaurant license. The mother has removed herself from ownership and management of the restaurant.
Abe Kader stated the application is complete for the new applicants. Brittany Bills and Sabrina Collins came forward to assure the commission the original applicant isn’t involved with the restaurant and has been moved to guest services. Mr. Kader stated he has reviewed the liquor laws with the new applicant and that he recommends approval.
c. Rosas’ Latin American (RL), St. George – Change of Ownership.
Nina McDermott explained the previous owner just finished a 45 day suspension for their third violation for sale to minors. The new applicant is the daughter of the previous owner. Staff is concerned that the daughter understands the severity of selling alcohol to minors and that the mother is no longer involved in the business. Sheila Page echoed the concerns as she has almost exclusively dealt the daughter as the mother already had limited involvement in the business. Another violation of the current license would result in revocation. If the change of ownership is granted a violation would be treated as a new license. Ms. McDermott recommended that the ownership change be allowed if the commission is assured the mother is not involved in the business and that there will be no more violations.