MINUTES OF THE MEETING OF THE UTAH
ALCOHOLIC BEVERAGE CONTROL COMMISSION,
COMPLIANCE, LICENSING AND ENFORCEMENT
SUBCOMMITTEE HELD TUESDAY, JANUARY 28, 2014,
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, January 22, 2014. 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, January 27, 2014.]
Kathleen McConkie Collinwood called the meeting to order at 9:00 a.m.
Commissioners Present: David Gladwell, Kathleen McConkie Collinwood, John T. Nielsen, and Olivia Agraz.
Staff Present: Nina McDermott, Compliance, Licensing and Enforcement Director.
Also Present: Sheila Page, Asst. Attorney General.
APPROVAL OF MINUTES:
Upon motion of Mr. Nielsen, seconded by Mr. Gladwell, it was unanimously voted to approve the minutes of the Compliance, Licensing and Enforcement Subcommittee meeting held December 17, 2013.
COMPLIANCE UPDATE:
Ms. McDermott gave an update on the number of visits the compliance department made to licensees. In 2013 staff visited 1,625 licenses versus 1,213 in 2012. The goal of the visit is to help licensees remain in compliance.
Law enforcement officers reported that the compliance rate for restaurants has improved from 71% in 2012 to 86% in 2013. Club rates stayed the same at 86% pass rate.
Ms. McDermott stated that staff and law enforcement officers plan to update the commission on compliance matters quarterly.
Mr. Gladwell congratulated licensees for their compliance.
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) Normandie Café & Bakery, Salt Lake, and *SBI (RL)
Zachary Basta (employee)
(2) Talons Cove Golf Club, Saratoga Springs, *SBI (BE)
and Julie Ann Wood (employee)
(3) Agave Mexican Cuisine, Orem, and *SBI (RE)
Alberto Lopez (employee)
(4) Club XS, Vernal, and James Garcia and *SBI (CL)
Jasmine Richins (employees)
(5) Gepetto’s, Holladay, and Harman Panah *SBI (RL)
(employee)
(6) Blu Pig, Moab, and “LJ” and “Shane” *SBI (CL)
(employees)
(7) Courtyard by Marriott, Provo, and *SBI (RE)
Catherine Holcomb (employee)
(8) Fuji Dragon, Ogden, and Trudy *SBI (RL)
Dominquez (employee)
(9) Kohinoor, Orem, and Ashok Tamang *SBI (RL)
(employee)
(10) Longhorn Steakhouse, Ogden, and *SBI (RE)
Zachary Snow and Amber Stinson
(employees)
(11) Los Montes Restaurant, Kamas, and *SBI (RB)
Ricki Ann Comeaux (employee)
(12) The Spot, Salt Lake *SBI (CL)
(13) Zucca, S. Ogden, and Kelly Gardner *SBI (RE)
(employee)
(14) Asian Panda, Orem, and Xiu Quin Lin *SBI (RL)
(employee)
(15) Jensen’s Country Lanes, Helper, and *SBI (BE)
Marty Jensen (employee)
(16) Pei Wei Asian Diner, Sandy, and *SBI (RL)
Courtney Lentz (employee)
(17) Winger’s, Lehi, and Amanda Lowe *SBI (RB)
(employee)
(18) Mi Ranchito, Orem, and Jorge A Arias *SBI (RE)
(employee)
(19) Sushi Monster, West Valley, and Laura J *SBI (RL)
Tavares (employee)
(20) Banzai Teppan Yaki, West Valley, and *SBI (RL)
Angie Nguyen (employee)
(21) Barndog’s Grill & Sports Bar, Roosevelt *SBI (TV,CL)
Sheila Page reported that staff and her office have spent an inordinate amount of time on the first five licensees trying to get them to comply with their settlement agreements. She suggested that the commission may want to file an order to show cause for each licensee asking them to appear and explain why they have failed to comply with the settlement agreements.
Ms. Page asked the commission to approve the balance of the consent calendar and requested that the compliance officers follow up with those that haven’t submitted their responsible alcohol service plans.
Mr. Gladwell moved to approve the consent calendar and directed staff to file an order to show cause for each of the first five licensees. Mr. Nielsen seconded the motion which passed unanimously.
NOTICE OF FORFEITURE:
a. Club Expose (CL), Salt Lake City.
Ms. McDermott reported that at the December 17, 2013 commission meeting Club Expose was ordered to be open and fully operational within 30 days or the license would be forfeited. As of January 16, 2014 the department had not heard from the owner as to the status of complying with the commission order.
Lt. Troy Marx from the State Bureau of Investigation came forward and reported that officers visited the club several times over the last month and there were mixed reports as to if the club was open for business. The officers were the only patrons and the lights and heat were turned off. The officers did an overt inspection on January 24, 2014 and didn’t find any violations.
Rob Hansen reported on their dispensing records. The dispensing records show an increase in sales over the last few weeks. When Mr. Hansen asked about the sales, the owner reported that he called old customers and friends to come to the club. Mr. Hansen also noted that no cosmetic changes have been made to the building and that the business does not look open from the outside. Food sales are extremely low and consist of microwave popcorn, beef jerky and microwave chimichungas. When Mr. Hansen asked for 3.2 beer receipts, he found that the owner was purchasing beer from Smith’s. Ms. McDermott stated that staff is concerned the owner has no intention of operating a business but is holding onto the license until he can find a buyer.
Chung Ji Dai, the owner, came forward to address the commission. He explained that he only turns on the heat when customers come and that he used to serve sandwiches but that patrons did not buy the food. Mr. Dai stated that he did have a potential partner until the fire damaged the building. Now he is waiting for the insurance settlement to work with the bank. When asked when the partnership was going to take place, Mr. Dai responded probably this year around March.
The commissioners expressed concern that the situation may not change and that the license hasn’t been fully utilized since approximately July 2013.
Mr. Nielsen moved that the club license for Club Expose be forfeited and placed back in the license pool. Ms. Agraz seconded the motion which passed unanimously.
ORDER TO SHOW CAUSE:
a. Frankie D’s (CL), Moab.
Nina McDermott and Keith Zuspan explained that in April 2013 staff was made aware of the intent of Moab Investments LLC to purchase Frankie D’s (Kickin Back Inc.). Staff informed both parties that a new application would need to be submitted and a management agreement put in place if ownership of the club changed hands. Regardless the business sold without following procedures. Staff has been investigating the transaction but did not receive the requested documents until late last week. It appears that Moab Investments purchased the club in August 2013 and has been operating under Kickin Back’s license. Also, Moab City did not accept the business license renewal as Kickin Back was crossed off the renewal and replaced with Moab Investments LLC. As a result, staff issued the order to show cause.
The new owners are seeking an ownership change. Staff has classified them as a new applicant due to the multiple months in which the applicant failed to apply for a license and continued to operate.
Keith Zuspan gave an overview of his interactions and the financial transactions between Kickin Back Inc. and the new owner, Moab Investments. The business sale closed in July 2013.
Ben Heaton from the Tony Basso Group, (AJB Holdings and parent company of Moab Investments) came forward to address the commission. He gave an overview of the transaction between Kickin Back and Moab Investments including the issues that delayed the transaction. He acknowledged the mistake of operating under the Kickin Back license.
Mr. Gladwell thanked him for being straight forward.
Ms. Agraz moved to revoke the Kickin Back Inc. club license and to direct Moab Investments LLC to reapply when the loose ends are completed. Mr. Gladwell seconded the motion which passed unanimously.
LICENSE APPLICATION ISSUES:
a. Frankie D’s (CL), Moab. (New application requesting change of ownership).
Discussed in previous item.
MANUFACTURING LICENSE APPLICATION:
a. Zion Canyon Brewing Co., Springdale.
Abe Kader gave an overview of the application.
Mr. Nielsen moved to approve a manufacturing license for Zion Canyon Brewing Co. in Springdale. Mr. Gladwell seconded the motion which passed unanimously.
MANUFACTURING REPRESENTATIVE APPLICATIONS:
a. Christopher Reed, Salt Lake City.
b. Patrick Delaney, Salt Lake City.
Abe Kader gave an overview of the two manufacturing representative applications stating both are complete and staff recommends approval.
Mr. Gladwell moved to approve manufacturing representative licenses for Christopher Reed and Patrick Delaney. Mr. Nielsen seconded the motion which passed unanimously.
SCIENTIFIC/EDUCATIONAL SPECIAL USE PERMITS:
The item was continued to the full commission meeting.
CHANGE OF LOCATION REQUESTS:
a. Sitara India (RE):
From: 3585 Harrison Blvd. #21, Ogden.
To: 2672 N. Hill Field Road, Layton.
Rob Hansen gave an overview of the change of location request stating it is complete and staff recommends approval.
Ms. Agraz moved to approve a change of location for Sitara India restaurant. Mr. Nielsen seconded the motion which passed unanimously.
b. Tap Room (CL):
From: 2275 S. Highland Drive, Salt Lake City.
To: 2021 Windsor, Suite A, Salt Lake City.
Abe Kader gave an overview of the change of location request stating it is complete and staff recommends approval.
Mr. Gladwell moved to approve a change of location for the Tap Room. Mr. Nielsen seconded the motion which passed unanimously.
LICENSE APPLICATIONS:
[For brevity, the street address, name of the representative, classification (clubs only) seating capacity of the establishment and opening date will be referenced. Proximity and special issues will be noted. A video tape recording of the statements made is on file at the DABC administrative office.]
Club Applicants:
(1) The Penalty Box, 3 West 4800 South, Murray: Selina Kirkbridge; 250 seats; open. (conditional / change of ownership)
(2) The Horse, 3611 Washington Blvd., So. Ogden: J. Todd Berchtold; 80 seats; open. (change of ownership)
(3) The Sun Trapp, 102 South 600 West, Salt Lake City: Frank Chugg; 193 seats; open. (conditional / change of ownership)
(4) Lo Fi Café, 445 South 400 West, Salt Lake City: Jeni Rasmussen; 600 seats; open. (change of ownership)
(5) Hotel Monaco, 202 South Main Street, Salt Lake City: Guy Wheelwright; 120 seats; open. (change of ownership)
Steve Wallenda gave an overview of the ownership change requests for club licenses noting #1 The Penalty Box and #3 The Sun Trapp are conditional.
Ms. Agraz moved to grant conditional club licenses resulting from ownership changes to #1 The Penalty Box in Murray and #3 The Sun Trapp; and club licenses resulting from ownership changes to #2 The Horse in Ogden, #4 Lo Fi Café in Salt Lake City, and #5 Hotel Monaco in Salt Lake City. Mr. Gladwell seconded the motion which passed unanimously.
The balance of the license applications were continued to the full commission meeting.
QUESTIONS/COMMENTS FROM COMMISSIONERS AND PUBLIC:
· Chung Ji Dai came forward to address the subcommittee to disagree with the forfeiture of the club license for Club Expose. Mr. Dai stated he thinks its discrimination. Ms. Page suggested he consult with his attorney as action was taken after he didn’t reopen due to the fire.
Due to the time, the balance of the agenda was deferred to the full commission meeting. The meeting adjourned at 10:05 a.m.
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