The URL can be used to link to this page

Home My WebLink About2019-04-04 Liquor Commission MinutesCOUNTY OF HAWAI`l DEPARTMENT OF LIQUOR CONTROL LIQUOR COMMISSION April 41 2019 (NEST HAWAII CIVIC CENTER, 74-5044 ANE KEOHOKALOLE HIGHWAY, BUILDING B, 2ND FLOOR, KAILUA-KONA, HAWAI`l I. Call To order The meeting was called to order by Chair Shelby Nahale-a at 10:00 A.M., in the Meeting Room, Department of Liquor Control, West Hawaii Civic center, 74-5044 Ane Keohokalole Highway, Building B, 2nd Floor, Kailua-Kona, Hawaii. The following were present and constituted a quorum: Commissioners: Shelby Nahale-a, chair David Greenwell, Vice Chair Warren Arakaki, commissioner Michael Hughes, Commissioner Ronald Ibarra, commissioner Claude Onizuka, Commissioner Dawn Raymond, commissioner Paula Thomas, commissioner Absent and Excused: Allen Salave`a, Commissioner Others Present: Gerald Takase, Director Brandon Gonzalez, Administrative Officer Craig Masuda, Deputy Corporation Counsel Stacie Waltjen, Licensing Officer Dorsi Lim, Secretary to the Board & commission Nahale-a: I'd like to start off with introductions with Dorsi. Lim: Dorsi Lim, Secretary to the Board and Commission. Takase: Gerald Takase, Director. Ibarra: Ron Ibarra, commissioner, District 8. Greenwell: David Greenwell, District 9 commissioner. Nahale-a: Good moming, Shelby Nahale-a, commissioner. Masuda: Good morning, Craig Masuda, commission Counsel. Thomas: Good morning, Paula Thomas, Commissioner. onizuka: Claude Onizuka, commissioner. Hughes: Mike Hughes, commissioner. Raymond: Dawn Raymond, commissioner. Arakaki: Warren Arakaki, Commissioner. Gonzalez: Good morning, Brandon Gonzalez, Administrative Officer. Nahale-a: And Stacie Waltjen our Licensing Technician standing there. As a friendly reminder, everyone put their cell phones on silent or vibrate during the meeting. 11. Approval of Minutes Nahale-a: March 7, 2019, minutes circulated via email/mail on March 28, 2019. Greenwell: I make the motion to approve. Raymond: Second. Mr. Greenwell moved to approve the March 7, 2019, Liquor Commission minutes as circulated; seconded by Ms. Raymond. Nahale-a: It's been moved and seconded. Any discussion? There was no discussion from the commissioners. Nahale-a: Seeing none, let's take a vote. All those in favor of approving the minutes for March say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the commissioners. Nahale-a: Motion carries. The motion was carried unanimously. APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 2 III. Approval of Addendum and/or Supplemental Agenda Nahale-a: There is no addendum or supplemental agenda this meeting. IV. Public Statements on Agenda Items Nahale-a: Are there any public statements on agenda items? There were no public statements on agenda items. Nahale-a: None. We will move on to Public Hearings. V. Public Hearings Nahale-a: 1. APPLICATION NO.: APPLICANT: TRADE NAME: PLACE OF BUSINESS: TMK: LICENSE APPLIED FOR: 18-17 (10:04 A.M.) Kona Brewery LLC Kona Brewing Co. 74-5612 Pawai Place, Kailua-Kona, Hawaii 7-4-010:001 Change in Class to a Class 18, Small craft Producer Pub liquor license, Category B2 from its Manufacturer Beer liquor license Terry Lee, Counsel and authorized Agent for the Applicant, was present. Nahale-a: Good morning. Are you the Applicant? Lee: I am. Nahale-a: Thank you. Could you please identify yourself and your relation to the business? Lee: Yes, I'm Terry Lee, Counsel for the Applicant and also Authorized Agent. Nahale-a: Thank you, good morning. Nahale-a: Are there any changes to the report? Lee: No. Nahale-a: could you please describe your business? Lee: Yes. Kona Brewery brews the Kona Brewing beer and also operates a restaurant down the road here. It's been in business for many years and Craft Brew Alliance, which APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 3 is the parent entity that owns the Licensee, is a publicly traded company that owns numerous small craft breweries around the country. It's also forty percent owned by Anheuser-Busch. It's a very well -capitalized and financed entity and they've decided to build a larger brewery nearby and is in the process of wrapping that construction. They will increase their manufacturing capacity considerably to meet the demand of the product here in Hawaii. They want to continue the brew pub operation, and hence the request to change the category. Nahale-a: Thank you very much. Director, are there any protests to this application? Takase: Madam Chairman, the Applicant mailed six out of six notices within 100 feet and 223 out of 229 notices within 599 feet. There were no protests to this application. Nahale-a: Thank you. Any public testimony for this? There was no public testimony. Nahale-a: Seeing none, Commissioners, discussion or questions? There was no discussion or questions from the Commissioners. onizuka: Move to close public hearing. Hughes: Second. Mr. onizuka moved to close the public hearing; seconded by Mr. Hughes. Nahale-a: It's been moved and seconded to close public hearing. Any discussion on this motion? There was no discussion from the commissioners. Nahale-a: All those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carries. The motion was carried unanimously. APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 4 onizuka: Move to approve Application 18-17, pending final inspection. Hughes: Second. Mr. onizuka moved to approve Application No. 18-17, Kona Brewery LLC, dba Kona Brewing Co., for a change in class to a Class 18, Small craft Producer Pub liquor license, Category B2, located at 74-5612 Pawai Place, Kailua-Kona, Hawaii, TMK: 7-4-010:001, from its Manufacturer Beer liquor license, pending final inspection; seconded by Mr. Hughes. Nahale-a: Moved and seconded to approve Application No. 18-17. Any discussion? There was no discussion from the Commissioners. Nahale-a: All those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the commissioners. Nahale-a: Motion carries. Thank you very much. The motion was carried unanimously. Lee: Thank you. Nahale-a: Good luck. Thomas: Good luck. Nahale-a: 2. APPLICATION NO.: APPLICANT: TRADE NAME: PLACE OF BUSINESS: TMK: LICENSE APPLIED FOR: 18-19 (10:07 A.M.) The Elevation Wine Fund, LP The Elevation Wine Fund, LP 72-349 Ka'upulehu Drive, Building D, Kailua-Kona, Hawaii 7-2-025:013 Change of Location to its Wholesale Beer and Wine liquor license, to 74-5483 Kaiwi Street, Unit #1506, Kailua-Kona, Hawaii, TMK: 7-4-015:008 Leon Dreimann, Managing Partner, was present. APRIL 4, 2019 -- LIQUOR COMMISSION MINUTES 5 Nahale-a: Good morning. Could you identify yourself and the relationship to the business? Dreimann: Good morning everybody. The Elevation Wine Fund here in Hawaii is a wholesale distributor specializing in supplying good and rare wines to residents of a number of different resorts on the island of Hawaii. It's a division of The Elevation Wine Fund, LP which is a Limited Partnership that invests in rare wines and operates as a hedge fund out of California. Nahale-a: And you're Leon? Dreimann: Yes. Nahale-a: And your relationship to the business is? Dreimann: I am the Managing Partner. Nahale-a: Thank you very much, Leon. Any changes to the report? Dreimann: No. Nahale-a: You've already described your business for us. Director, are there any reports of protests? Takase: Madam Chairman, the Applicant mailed 16 out 16 notice within 100 feet and 46 out of 48 notices within 500 feet. There were no protests to this application. Nahale-a: Thank you. Any public testimony? There was no public testimony. Nahale-a: Seeing none, Commissioners, discussion or question? Greenwell: I have one. (to Mr. Dreimann) You've come before us multiple times now. Do you have any other subsidiaries on other islands or is it only just (here)? Dreimann: No. It's only on this island where I've spent most of my eight years. I don't have any in Honolulu or others. Greenwell: Are there any other similar businesses like yours on the other islands? Dreimann: No. Many on the outer islands actually contact me for finding things they can't find. Unfortunately at different hours of the night I get emails for something rare. Takase: For the Commission's use, Mr. Dreimann's is a specialized market. He deals with high-end wines and he will be coming forward for a change to a Wholesale General liquor license in the near future because he has been getting requests for high-end spirits as well. When he first came in, he had an exclusive with Hualalai, APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 6 but he's found business to be booming and that is why he's changing locations, moving off of Hualalai's property so he can properly service the other resorts as well. Dreimann: Such as Kukio and others. Takase: Yes. He is currently a one -of -a -kind in the State. He does operate a similar business in California. Nahale-a: Thank you. Any other questions or discussion? There were no other questions or discussion from the Commissioners. onizuka: Move to close public hearing. Thomas: Second. Mr. onizuka moved to close the public hearing; seconded by Ms. Thomas. Nahale-a: Moved and seconded. Any discussion on this motion to close public hearing? There was no discussion from the Commissioners. Nahale-a: All those in favor say, "Aye." The commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the commissioners. Nahale-a: Motion carries. The motion was carried unanimously. onizuka: Move to approve Application No. 18-19, pending final inspection. Hughes: Second. Mr. onizuka moved to approve Application No. 18-19, The Elevation Wine Fund, LP, dba The Elevation Wine Fund, LP, for a change of location to its Wholesale Beer and Wine liquor license, to 74-5483 Kaiwi street, Unit #1506, Kailua-Kana, Hawaii, TMK: 7-4-015:008, pending final inspection; seconded by Mr. Hughes. Nahale-a: Moved and seconded to approve Application. Any discussion? APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 7 There was no discussion from the Commissioners. Nahale-a: All those in favor say, "Aye." The commissioners Voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carries. The motion was carried unanimously. Nahale-a: Thank you Very much. Dreimann: Good morning everybody. VI. Preliminary Hearings Nahale-a: 1. APPLICATION NO.: APPLICANT: TRADE NAME: PLACE OF BUSINESS: TMK: LICENSE APPLIED FOR: 18-21 (10:09 A.M.) Pacific Aqua Beverages, LLC Hilo Brewing and Beverages 1713 Kamehameha Avenue, Hilo, Hawaii 2-1-001:012 Original Small Craft Producer Pub, Category B2 Scott Thompson, Management, was present. Nahale-a: Good morning. Could you please Identify yourself and relationship to the business? Thompson: Good morning. Scott Thompson, I'm in management for the company. What we're applying for is kind of the opposite of what Kona's doing. We're looking for the restaurant location in addition to our present brewing location. Nahale-a: Any changes to the report that's been submitted? Thompson: Yes, I'm going to need a continuance because we will have a change of location, where we want to put it. Onizuka: We're missing 18-21, the report. Waltjen: There was no report. APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 8 Takase: Scott represents Mehana Brewing. They are applying for a Small Craft Producer license because they want to start a restaurant operation as well as a Dispenser operation for their business. They can't do it on their present location because of size and lease restrictions. They are looking for a location. They thought they were going to go into the Naniloa site where the golf course is, but there's some things that needs to be worked out. They may still use that site, but Naniloa might keep their license and just use their products. Currently, they are searching for another location and they may have something tentatively lined up though nothing is finalized. He is asking and we are recommending that this matter be continued until they actually find a site for their operations to continue. We will keep his application in abeyance until they locate a site. Does the Commission understand? Nahale-a: Yes. Greenwell: When he comes back again, does he come back for another preliminary hearing? Takase: Yes. We did this in anticipation that they were going to go to the Naniloa site, but in the eleventh hour, Naniloa changed what they wanted to do. Whether they are going to keep the license or give them the license, that site may still be used, but they're probably not going to give them the license, so Mehana is in discussion. with the other location. They will come back, and we will keep it as a preliminary hearing. We have nothing at this point other than he wants to have a license. Nahale-a: Ok. Takase: We will recommend continuing until they secure the site and come back. Nahale-a: Ok. I know you were expressing changes to the report, but since we will ask for a motion to continue, we'll pause on that and wait until the next time. Thompson: All right, thank you. Nahale-a: Commissioners, any other questions? There were no other questions from the Commissioners. Nahale-a: Can I have a motion to continue preliminary hearing to May? Takase: We will put it on the agenda once we get the (location). Nahale-a: Ok, so motion to continue? Greenwell: Motion to continue. Nahale-a: Thank you. Second? APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 9 Raymond: Second. Mr. Oreenwell moved to continue Application No. 18-21, Pacific Aqua Beverages, LLC, dba Hilo Brewing and Beverages, for an original Small craft Producer Pub liquor license, Category B2, until a location is secured; seconded by Ms. Raymond. Nahale-a: It's been moved and seconded. Any discussion on this motion? There was no discussion from the Commissioners. Nahale-a: Seeing none, all those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the Commissioners. Nahale-a: Motion carries. Thank you. Good luck. The motion was carried unanimously. Thompson: Thank you. Nahale-a: 2. APPLICATION NO.: APPLICANT: TRADE NAME: PLACE OF BUSINESS: TMK: LICENSE APPLIED FOR: T18-22 (10:13 A.M.) Honokaa Public House LLC Honokaa Public House 45-3490 Mamane Street, Unit G & F, Honokaa, Hawal`i 4-5-006:014 Sale and Transfer of the Restaurant General liquor license, Category 132 currently held by Last Call Saloon LLC, dba Last call Saloon Michelle Darby, Sole Member, Owner, was present. Nahale-a: Good morning. could you please identify yourself and your relationship to the business? Darby: My name is Michelle Darby. I'm the owner of the business and sole member of the LLC. Nahale-a: Thank you. Michelle, are there any changes to the report submitted? APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 10 Darby: No. Nahale-a: Could you briefly describe the business for us, please? Darby: Yes, it's just a small pub -restaurant in downtown Honoka`a that provides food and libations for the local public. I think we're the only one that stays open late we have live music, too. Nahale-a: Thank you. Is there any public testimony for this application? There was no public testimony. Nahale-a: Seeing none, are there any questions or discussion on this application? There were no questions or discussion from the commissioners. Nahale-a: Seeing none, could I get a motion to approve or deny? Takase: Michelle, have you spoken with your neighbor? Darby: Yes, I have. over at the Honokaa club? Takase: Yes. Darby: Yes, I have. I've gone over to introduce myself. They have my phone numbers. We're actually working very well together. I'm meeting all of the application requirements, I'm on it for that. Takase: ok, because they can get vocal on some points. Darby: I'm very much aware, yes. Takase: Ok. Nahale-a: Always good to have good neighborly relations. Darby: Yes, they're actually really great people and I can't blame them for what has happened in the past from some of the stories I've heard. we're doing ok and I've been following up with them about every other week just to see if everything's ok. Takase: Good, thank you. Nahale-a: Fantastic, thank you very much. Any other questions? There were no other questions from the commissioners. APRIL 4, 2419 - LIQUOR COMMISSION MINUTES 11 Nahale-a: Can I get a motion to approve or deny application? Greenwell: l make a motion to approve Application No. T18-22. Raymond: Second. Mr. Greenwell moved to approve Application No. T18-22, Honokaa Public House LLC, dba Honokaa Public House, for a sale and transfer of the Restaurant General liquor license, Category B2 currently held by Last Call Saloon LLC, dba Last Call Saloon, located at 45-3490 Mamane Street, Unit G & F, Honokaa, Hawaii, TMK: 4-5-008:014, if approved, public hearing to be held on May 2, 2019, in Kona, Hawaii; seconded by Ms. Raymond. Nahale-a: Moved and seconded. Any discussion on this motion? There was no discussion from the commissioners. Nahale-a: All those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the Commissioners. Nahale-a: Motion carries. Thank you very much. The motion was carried unanimously. Darby: Thank you, good morning. Greenwell: Good luck. Nahale-a: 3. APPLICATION NO.: APPLICANT: TRADE NAME: PLACE OF BUSINESS: TMK: LICENSE APPLIED FOR: 18-23 (10:15 A.M.) Mo's Fish and chips LLC Mohala's Bay Front Fish and Chip's 50 Waianuenue Avenue, Hilo, Hawaii 2-3-004:004 Original Dispenser Beer and Wine liquor license, Category A Candace "Mohala " Simpson, Owner, was present. APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 12 Nahale-a: Good morning. Before we begin, I'd like to let the record show the trade name for this application is Mohala's Bay Front Fish and Chips (without the apostrophe in "Chips"). It had been previously published with the apostrophe. Nahale-a: Could you please identify yourself and your relationship to the business? Simpson: Yes, my name is Candace Simpson, middle name Mohala which is .what everyone (knows me as). I'm the owner and we are trying to get some beer in there. Nahale-a: Thank you. Are there any changes to the report submitted? Simpson: No, none. Nahale-a: could you briefly describe the business? Simpson: Yes, we are a small fish and chip in downtown Hilo on Waianuenue Avenue. Our capacity is twenty-two, so it's really tiny. We let our customers (mostly tourists) know that they can bring their own beer, but since parking is an issue downtown, it would be difficult for them to leave and return. We're just requesting that we can operate (with a liquor license) on a small scale. Nahale-a: Thank you. Any public testimony for this application? There was no public testimony. Nahale-a: Seeing none, Commissioners, discussion or question? There was no discussion or questions from the Commissioners. Nahale-a: Can I get a motion to approve or deny? Greenwell: I make the motion to approve Application No. '18-23, if approved, public hearing to be held on June 6, 2019, in Kona. Thomas: Second. Mr. Greenwell moved to approve Application No. 18-23, Mo's Fish and Chips LLC, dba Mohala's Bay Front Fish and chip's, for an original Dispenser Beer and Wine liquor license, Category A, located at 50 Waianuenue Avenue, Hilo, Hawaii, TMK: 2-3-004:004, if approved, public hearing to be held on June 5, 2019, in Kona; seconded by Ms. Thomas. Nahale-a: Moved and seconded. Any discussion on this motion? APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 13 There was no discussion from the Commissioners. Nahale-a: Seeing none, all those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the Commissioners. Nahale-a: Motion carries. Mahalo. The motion was carried unanimously. Nahale-a: Just as a side note, I would like to say I really enjoy your establishment. Simpson: Thank you. Thanks so much. Nahale-a: 4. APPLICATION NO.: APPLICANT: TRADE NAME: PLACE OF BUSINESS: TMK: LICENSE APPLIED FOR: 18-24 (10:19 A. M.) Dragon Roll LLC Shimaichi Alii Plaza, 75-5742 Kuakini Highway, Suite 104, Kailua-Kona, Hawaii 7-5-007:002 Change of location to its Dispenser General liquor license, category B'l, to the Alii Plaza, 75-5742 Kuakini Highway, Suite 103, Kailua-Kona, Hawaii, TMK: 7-5-007:002 Amanda Gabaon, Manager and authorized Agent, was present. Nahale-a: Good morning. Could you please identify yourself and relationship to the business? Gabaon: Good morning, my name is Amanda Gabaon. I'm the Manager at Shimaichi and Authorized Agent. Nahale-a: Good morning, Amanda. Are there any changes to the report submitted? Gabaon: No. Nahale-a: could you please briefly describe the business for us? APRIL 4, 2419 - LIQUOR COMMISSION MINUTES 14 Gabaon: Yes. Shimaichi Sushi is primarily a sushi restaurant. We wanted to branch out and have more hot foods available on our menu. The restaurant that is adjacent to us had a much larger kitchen that would allow us to produce hot foods and add to our menu. That's the reason we chose to move next door. Nahale-a: Thank you. Any public testimony for this application? There was no public testimony. Nahale-a: Seeing none, are there any questions or discussion in this regard? There were no questions or discussion from the Commissioners. Nahale-a: Motion to approve or deny? Greenwell: I make the motion to approve Application No. 18-24, if approvedp ublic hearing to be held on June 0, 2019, in Kona. onizuka: Second. Mr. Greenwell moved to approve Application No. 18-24, Dragon Roll LLC, dba Shimaichi, for a change of location to its Dispenser General liquor license, Category B1, to the Alii Plaza, 75-5742 Kuakini Highway, Suite 103, Kailua-Kana, Hawaii, TMK: 7-5-007:002, if approved, public hearing to be held on June S, 2019, in Kona; seconded by Mr. on izu ka. Nahale-a: It's been moved and seconded. Any discussion on this motion? There was no discussion from the commissioners. Nahale-a: Seeing none, all those in favor say, "Aye." The commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the commissioners. Nahale-a: Motion carries. Thank you very much. Good luck with the new place. The motion was carried unanimously. Gabaon: Yes, thank you. Have a good day. APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 15 Nahale-a: 5. APPLICATION NO.: APPLICANT: TRADE NAME: PLACE OF BUSINESS: TMK: LICENSE APPLIED FOR: T18-25 (10:21 A.M.) Krislada, LLC Royal Thai Cafe Keauhou Shopping Center, 78-6831 Alii Drive, Ste. 402, Kailua-Kona, Hawaii 7-8-010:040 Sale and Transfer of the Restaurant General liquor license, Category B1, currently held by Chatcharat, LLC, d ba Royal Thai cafe !Krislada Theidkittichayakul, Owner, was present. Nahale-a: Good morning. could you please identify yourself and relationship to the business? Theidkittichayakul: Good morning, my name is Krislada Theidkittichayakul. I am the new owner of the Royal Thai Cafe. Nahale-a: Are there any changes to the report submitted? Theidkittichayakul: No. Nahale-a: could you briefly describe the business for us? Theidkittichayakul: Royal Thai Cafe serves original Thai food and it's been in the Shopping (Center) for over twenty years and I'm the previous owner of the Lemongrass Bistro in Kona and I'm looking for a larger restaurant with a larger parking (area). That is why we are taking over the Royal Thai Cafe. Nahale-a: Thank you. Any public testimony for this application? There was no public testimony. Nahale-a: Commissioners, discussion or questions for the testifier? There were no questions or discussion from the commissioners. Takase: Krislada was the owner of the Lemongrass Bistro where she (Amanda Gabaon, Shimaichi) is moving to. Nahale-a: Oh, very nice. Onizuka: Move to approve Application No. T18-25, if approved, public hearing to be held on May 2, 2019, in Kona. APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 16 lbarra: Second. Mr. Onizuka moved to approve Application No. T18-25, Krislada, LLC, dba Royal Thai cafe, for a safe and Transfer of the Restaurant General liquor license, Category 131, currently held by Chatcharat, LLC, dba Royal Thai Cafe, located at the Keauhou Shopping Center, 78-6831 All'! Drive, Ste. 402, Kai l ua-Kona, Hawai `i, TM K: 7-8-010:040, if approved, public hearing to be held on May 2, 2019, in Kona; seconded by Mr. Ibarra. Nahale-a: Moved and seconded. Any discussion on this motion? There was no discussion from the Commissioners. Nahale-a: All those in favor say, "Aye." The commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the Commissioners. Nahale-a: Motion carries. Thank you very much. Good luck with that. The motion was carried unanimously. Theidkittichayakul: Thank you. Nahale-a: 8. APPLICATION NO.: APPLICANT: TRADE NAME: PLACE OF BUSINESS: TM K: LICENSE APPLIED FOR: T18-25 (10:24 A.M.) Royal Jade House LLC Royal Jade Lanihau Center, 75-5595 Palani Road, Store No. A-9, Kailua-Kona, Hawaii 7-5-004:010 Sale and Transfer of the Restaurant General liquor license, category A, currently held by The Royal Jade Garden, Limited Liability company, dba Royal Jade Garden Linmei Zhao, Owner, was present. Nahale-a: Good morning. could you please identify yourself and relationship to the business? APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 17 Zhao: Good morning, everybody. My name is Linmei Zhao. lam previous owner of Royal Jade Garden LLC and I was also the Manager with a partner. I am the current Royal Jade House LLC's owner, a 100 percent shareholder. The reason for the change is because my partner has returned to the country and I want to continue the business at the same location. I have been managing the business for seven years. Nahale-a: Thank you very much. Are there any changes to the report being submitted? Zhao: No. Nahale-a: could you briefly describe the business for us? Masuda: Ma'am, could you speak a little louder? Zhao: This business has been there for thirty years. It has been serving the community regular Chinese food and cultural Chinese food until today. We have dine -in and take-out. Seven years ago, I got involved in management and also I'm a shareholder in the business. Last year, because the owner and another partner decided to return to their country and they won't be doing this business anymore, I'm the one to take all interest in the company and build it. And I was saying to Stacie I'll improve by bringing in more traditional Chinese food to serve the community. This is my mission. Nahale-a: Thank you. Is there any public testimony for this application? There was no public testimony. Nahale-a: Seeing none, commissioners, any discussion or questions? There was no discussion or questions from the Commissioners. Gnizuka: Move to approve Application No. T18-20, if approved, public hearing to be held on May 2, 2019, in Dona. Thomas: Second. Mr. onizuka moved to approve Application No. T18-26, Royal Jade House LLC, dba Royal Jade, for a sale and transfer of the Restaurant General liquor license, category A, currently held by The Royal Jade Garden, Limited Liability Company, dba Royal Jade Carden, if approved, public hearing to be held on May 2, 2019, in Kona; seconded by Ms. Thomas. Nahale-a: Moved and seconded. Any discussion on this motion? There was no discussion from the. Commissioners. APRIL 4, 2019 -- LIQUOR COMMISSION MINUTES 18 Nahale-a: All those in favor say, "Aye." The commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the Commissioners. Nahale-a: Motion carries. Thank you very much. Good luck. The motion was carried unanimously. Zhao: Thank you. Nahale-a: 7. APPLICATION NO.: APPLICANT: TRADE NAME: PLACE OF BUSINESS: TMK: LICENSE APPLIED FOR: 18-27 (10:27 A.M.) Kona crust, LLC Kona Crust Pizza 74-5586 Palani Road, Space #7, Kailua-Kona, Hawaii 7-4-015:001 Original Restaurant Seer and Wine liquor license, Category A Danny Pryor, KOA Architects on behalf of the applicant; was present. Nahale-a: Good morning. could you please identify yourself and relationship to the business? Pryor: Good morning, I'm Danny Pryor. I work for KOA Architects. We met this individual in the summer of 2018. He was ambitious, a little tight on the budget and had a great product, so we got him into the old Patricio's and drew his schematics and layout. At first he didn't want to do liquor and wine and beer, but then he decided it's a great product. For the years that I've been here on the Big Island, it's always had something, not just Particio's, but back in the day it was, it's got a lot of parking, it's a nice hub and he's requesting that he can become a licensed liquor, beer and wine (establishment). Nahale-a: Thank you. Are there any changes to the report submitted? Pryor: No changes. Nahale-a: Thank you. You've described the business for us. Is there anything to add? Pryor: He's got a business in New York. He looks young and he's got a really good recipe for New York style pizza and when he came over, he saw that as a great spot. He's a really ambitious younger guy, a husband and wife team and I think they're both APRIL 4, 2919 - LIQUOR COMMISSION MINUTES 19 going to have their blue card. He's scheduled to get his card. He's a really easy-going guy, open-minded and works for his money. I think he's a really good applicant, in my opinion. Nahale-a: Thank you. Any public testimony for this application? There was no public testimony. Nahale-a: Commissioners, discussion or questions? There was no discussion or questions from the commissioners. onizuka: Move to approve Application No. 18-27, if approved, public hearing to be held on June 0, 2019, in Kona. Arakaki: Second. Nahale-a: It's been moved and seconded. Any discussion on this motion? There was no discussion from the Commissioners. Nahale-a: All those in favor to approve say, "Aye." The commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the commissioners. Nahale-a: Motion carries. Thank you Very much. The motion was carried unanimously. VII. Unfinished Business Nahale-a: There is no unfinished business. Vlll. New Business Takase: Madam chairman, if we may take items nine and ten out of order? Nahale-a: We will move items nine and ten up in the agenda for Kohala Village Hub Pub & Shop LLC. For number nine, this is to discuss option to allow Kohala Village Hub Pub & Shop LLC, dba Hub Pub (CRAFT -898) to continue operations while undergoing renovations due to fire. APRIL 4, 2019 -- LIQUOR COMMISSION MINUTES 20 9. Kohala Village Hub Pub & Shop LLC, dba Hub Pub, discuss options to allow Kohala Village Hub Pub & Shop LLC, dba Hub Pub (CRAFT -898) to continue operations while undergoing renovations due to fire. Leigh Delphina Dorrance, Co-owner; Chris Scelza, operations Manager and Paul Anderson, Facilities Manager, were present. Nahale-a: Welcome. Dorrance: Thank you. Nahale-a: Please introduce yourselves and relationships to the business. Dorrance: Delphina Dorrance, thank you for having us, the co-owner of the Hub Pub & Shop LLC with my husband who is off -island. Anderson: My name is Paul Anderson and I'm the Facilities Manager. Scelza: My name is Chris Scelza, in Operations. Nahale-a: Good morning. Takase: Maybe I can start it off. I'm sure all of you are aware that there was a fire up at their location in Kohala. It pretty much consumed whatever they had operating, so they are in the midst of trying to figure out what exactly happened and at this point in time, they are committed to re -building that operation. They were in the midst of getting their final inspections to open a Small Craft Producer license up there. obviously, that has been put on hold for now. They have another location, the Blue Dragon in Kawaihae, which has been closed to take care of some problems they had. They have since resolved those problems and they came in to open that as a second location under the Small craft Producer (license). we were going to proceed by recognizing that, let them open the second location even though the first location is not going to be included. If need be, we'll start calling that the first location because we're not sure how long it'll take them to get ready for the second. There are two things: one, they were here to let the Commission know what's happening up there. Secondly, to request a continuance for their location at Kohala and to let you know they're going to open the Kawaihae location. Dorrance: As soon as all the rest of the permits are done. Scelza: Yes, we're in the process of getting the Health Department permitting finished and cleaning up the location. It's been several years since it's operated and we'll have to get the equipment up and running and set up for operations. Nahale-a: That's at the Blue Dragon in Kawaihae, right? Scelza: Right. APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 21 Nahale-a: Question? Greenwell: Gerald, I think there is a correction, it's Blue Dolphin? Dorrance: It was Blue Dolphin and we changed it to Blue Dragon about eleven years ago. Everybody still calls it the Dolphin. Greenwell: Excuse me. Dorrance: I just changed a couple of letters in there. It's a great community space and everybody's really missed it. The fire at the Hub Pub is just forcing us to fast track that. We didn't want to send all of our employees back out into the world. We have great management now to be able to handle the operations there. Greenwell: I remember when it was Luke's. What are your plans as far as re -building? Will you try to go back near the same, or a completely new building? What's happening? Dorrance: It looks like we do have to take the whole thing down and there'll be a design phase and we'll involve our whole team. I'd like to honor the existing architecture, but we haven't made any thoughts there. There's just been so much to handle operationally day to day. Today, as we speak, the inspectors are there to find the source of the fire and next week a little more inspection and then we'll know more about when demo can be, but it looks like it has to come all the way down and the slab removed. A good way to help everybody is to get that sleeping dragon going. As Gerald explained, that brew license is allowed to be in the two locations, so if we can do that as soon as possible, we can forfeit the old one that operated the Dragon that was the Kawaihae Spirits. I wanted to be sure that was made clean and clear with the Commission and give you the updates of all the excitement going on and see if you had other questions. There's a lot of moving pieces, so it's okay if you do. Masuda: Madam Chair, for the record can we also include Item 10 as part of the discussion? Nahale-a: Item 10 for Kohala Village Hub Pub & Shop LLC, is requesting approval to extend the time issuance of its Small Craft Producer Pub liquor license, Category B2, for an additional six months, from April 5, 2019, to and including October 5, 2019. 10. Kohala Village Hub Pub & shop LLC, dba Hub Pub, pursuant to Rule 4-2-M of the Rules and Regulations of the Liquor commission of the Department of Liquor control of the County of Hawaii, State of Hawaii, requests approval to extend the time issuance of its Small Craft Producer Pub liquor license, Category B2, for an additional six months, from April 5, 2019, to and including October 5, 2019, by email dated March 19, 2019. Dorrance: If that's approved, then we could open the Blue Dragon with that license. Obviously, we're going to need probably close to two years for the Hub Pub re -build, APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 22 We can open as soon as the sign -offs are ready with DOH -Wastewater being zipped up. And to brew or not will also be going through the Planning Department and all those steps as well. It's super small. To hear Kona Brew here, and that's kind of the same license, we'd love for you to understand also, the real visual of what we're doing and how different it is compared to some of the bigger guys. This would really be an accessory to the kitchen especially at the Blue Dragon. We're very limited on space and just really want to use that as a value-added product to support farms and get the products in there. The community is certainly excited about that prospect. If and as we do the Hub Pub, we'll work with you on that design. It would be slightly bigger, but still quite a small system compared with the others on the island. It's just to basically serve the two restaurants. Nahale-a: Thank you. I'm sorry to hear (about the fire) and I know there's been a lot of things that have come up as you have gotten the Hub Pub running. Dorrance: It was going really well and everybody really got it, you know. It was really the center of the community. We'll see how else we might be able to do something else even on that campus after we get the Blue Dragon up and running and the demo on the building, because it really is a nice gathering space. Nahale-a: Ok, so just to be clear, the Blue Dragon is going to operate under the Kohala Village Hub Pub license. Is that correct? Takase: It's actually the Hub Pub is going open as a second location at the Blue Dragon location. It was actually approved and if that's a "go" then they would just cancel the Blue Dragon license and run as the Hub Pub. Dorrance: But it won't be called that, so a (change in) dba isn't needed, right? Because even at the Blue Dragon, the liquor license was Kawaihae Spirits, but it was called the Blue Dragon. Takase: The license will be Kohala Village Hub Pub &Shop. If you want to choose a different dba (you may). Dorrance: It's still going to be Blue Dragon and it might change from restaurant to something else. We can talk about that. But I just want to be clear that it won't be called Hub Pub. There will be two different companies but operating with the same umbrella company. Nahale-a: And the request to extend time of issuance for the Small Craft Producer Pub liquor license is for the Kohala location? or is it for the Kawaihae location? Scelza: The continuance was asked to clarify some things with the Planning Department. As far as what zoning we are in and they have a few questions about the volume of production. As we're moving through that process it's going a little longer than this license allowed for, so we're asking for an extension so we can clarify some things with them, but start to operate with just wholesale beer and liquor as a standard APRIL 4, 2419 - LIQUOR COMMISSION MINUTES 23 lle"*- /0*N restaurant underneath that license so that when we do get the approval from Planning, it's quick and easy and we can start brewing right away. Dorrance: So for now, if you approve that today, then we can start opening the Dragon as soon as possible under the liquor license. I don't think we'd need an extension anymore in that case. It would just be, now that we're all in the same room together, we can move ahead and get open. certainly, when we do our second sight at the Hub Pub someday, that's certainly extended. otherwise, maybe the extension is over. Takase: The extension was actually for the Kohala location. Dorrance: It was? Takase: I'm getting an idea of the time frame. I would say let's extend it for now for six months to give them a better idea of what their timelines will be. Then maybe we'll just issue the license and place it on inactive status while they're doing construction so they don't have to start over again. Dorrance: Yes. So opening Blue Dragon under Hub Pub, waiting on the actual brewing until we can zip that up with Planning, and Hub Pub second sight now back in Kohala after we rebuild something. Is that kind of the gist? Takase: Yes. Nahale-a: Questions? Greenwell: Gerald, why six months? Takase: That's typically what we (allow). They are coming up on their one year since they got their license. Typically they ask for and we grant six month extensions. That's where we're at. Dorrance: Sorry, Gerald, I think that must have been for Blue Dragon because we went through the process with you to approve the Dragon as a second site for that Hub Pub. But then we weren't able to open it because we were dealing with the wastewater issue. I'm guessing that's the extension. But now, today, if we're resolving that then the extension is over. We thought it was going to be two or three months and it's been three years. Takase: One year is in April. We'll give you the extension which will be safer. Dorrance: Then is the extension to be able to brew? We'll still be able to open and serve beer and wine? Takase: Yes, whenever you're ready, let us know and we can issue the license. At least you're still current. Dorrance: Okay. APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 24 Masuda: Gerald? They're allowed two facilities under one license, right? Takase: Yes, Small Craft Producer Pub license will be the primary location and they're allowed a second location. Scelza: we're trying to clear where the primary will be at this moment. Takase: Originally, the primary was at Kohala. Now it might shift the other way. Kawaihae might become the primary. Thomas: I have another question. Is the dba Blue Dragon listed anywhere explicitly? Takase: They still hold the license at the Kawaihae location, the Blue Dragon. They're going to use that as a second location. Once the Hub Pub second license is granted, then they will just let the Blue Dragon license lapse. Thomas: Okay, thank you. Nahale-a: Any other discussion or clarification desired for this application? For the request to extend time our approval of that requires finding good cause. In this instance 1 would say the situation that is occurring, if agreeable to the Commission, could qualify as good cause for issuing the extension. Masuda: A proper motion would be to find that they have good cause for the extension for items nine and ten. Nahale-a: The motion would have to be approval of extension with good cause. Masuda: Yes, for finding good cause. Ibarra: Having heard the testimony of the applicants, I move that the commission finds good cause for approval of extending the time. Raymond: I'll second. Mr. Ibarra moved that the Commission finds good cause and approves the request submitted by Kohala Village Hub Pub & Shop LLC, dba Hub Pub, pursuant to Rule 4-2-M of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawai `i, State of Hawai `i, to extend the time issuance of its Small Craft Producer Pub liquor license, Category B2, for an additional six months, from April 5, 2019, to and including October 5, 2019, by email dated March 19, 2019; seconded by Ms. Raymond, Nahale-a: It's been moved and seconded. Any discussion on this motion? There was no discussion from the commissioners. APRIL 4, 2019 -- LIQUOR COMMISSION MINUTES 25 Nahale-a: Seeing none, all those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the commissioners. Nahale-a: Motion carries. Thank you. The motion was carried unanimously. Dorrance: Thank you very much. Nahale-a: Many blessings for the work ahead. Dorrance: Thank you. Scelza: We're ready whenever you are. I can be available to be there to meet with whoever and receive the license as well. Takase: Brandon will check with our investigators later on this. Gonzalez: They'll be in touch with you. Scelza: Okay, perfect. Thank you. Anderson: Thank you. Nahale-a: Okay, thank you very much. Dorrance: Mahalo, good day. Nahale-a: Returning to New Business, Item No. 1, Hilo -Hawaiian Associates, dba Hilo Hawaiian Hotel, ratification of Application for Alteration Permit for renovation to the lobby, lobby restroom and porte-cochere areas. 1. Hilo -Hawaiian Associates, dba Hilo Hawaiian Hotel, ratification of Application for Alteration Permit for renovation to the lobby, lobby restroom and porte-cochere areas, approved by Director Gerald Takase on March 8, 2019, to its Hotel liquor license, located at 71 Banyan Drive, Hilo, Hawaii. Greenwell: Move to ratify. Arakaki: Second. APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 26 Mr. Greenwell moved to ratify the Application for Alteration Permit for renovation to the lobby, lobby restroom and porte-cochere areas, submitted by Hilo -Hawaiian Associates, dba Hilo Hawaiian Hotel, approved by Director Gerald Takase on March 8, 2019, to its Hotel liquor license, located at 71 Banyan Drive, Hilo, Hawaii; seconded by Mr. Arakaki, Nahale-a: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Nahale-a: All those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the Commissioners. Nahale-a: Motion carries. The motion was carried unanimously. Nahale-a: No. 2, A -Bay's Cantina LLC, dba A -Bay's Island Grill, approval of Application for Change of Class to a Class 2, Restaurant liquor license from its Dispenser General liquor license, category B1. 2. A -Bay's Cantina LLC, dba A -Bay's Island Grill, approval of Application for Change of Class to a Class 2, Restaurant liquor license from its Dispenser General liquor license, Category B1, located at the Kings' Shops, 250 Waikoloa Beach Drive, Space J 1059 Waikoloa, Hawaii, TMK: 6-9-005:005. Greenwell: Move to approve. onizuka: Second. Mr. Greenwell moved to approve the Application for change of class to a Class 2, Restaurant liquor license from its Dispenser General liquor license, category B1, located at the Kings' Shops, 250 Waikoloa Beach Drive, Space J106, Waikoloa, Hawai `i, TM K: 6-9-008:005; seconded by Mr. onizuka. Nahale-a: It's been moved and seconded. Any discussion? APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 27 There was no discussion from the commissioners. Nahale-a: All those in favor of the motion say, "Aye." The commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the commissioners. Nahale-a: Motion carries. The motion was carried unanimously. Nahale-a: No. 3, Lehua Lani, LLC, dba Kona Town Market, ratification of Application for Entertainment Permit, for live music on March 30, 2019. 3. Lehua Lani, LLC, dba Kona Town Market, ratification of Application for Entertainment Permit, for an event on March 30, 2019, approved by Director Gerald Takase on March 1, 2019, to its Retail General liquor license, located at 75-5909 Walua Road, Suite A, Kailua-Kona, Hawaii. onizuka: Move to ratify. Greenwell: Second. Mr. onizuka moved to ratify the Application for Entertainment Permit for an event on March 30, 2019, submitted by Lehua Lani, LLC, dba Kona Town Market, approved by Director Gerald Takase on March 1, 2019, to its Retail General liquor license, located at 75-5909 Walua Road, Suite A, Kailua-Kana, Hawaii; seconded by Mr. Greenwell. Nahale-a: Moved and seconded. Any discussion? There was no discussion from the commissioners. Nahale-a: All those in favor say, "Aye." The commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the commissioners. APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 28 Nahale-a: Motion carries. The motion was carried unanimously. Nahale-a: No. 4, Laura Dunbar, ratification of Application for Individual Importation of Liquor Permit, for Tennessee Legend Salted Caramel Flavored Whiskey. 4. Laura Dunbar, ratification of Application for Individual Importation of Liquor Permit, for Tennessee Legend Salted caramel Flavored Whiskey, 750 ml (314 Liter), approved by Administrative officer Brandon Gonzalez on February 25, 2019. Greenwell: Move to ratify. Hughes: I'll second that. Mr. Greenwell moved to ratify the Application for Individual Importation of Liquor Permit, for Tennessee Legend Salted Caramel Flavored Whiskey, 750 ml (314 Liter), submitted by Laura Dunbar, approved by Administrative officer Brandon Gonzalez on February 25, 2019; seconded by Mr. Hughes. Nahale-a: Any discussion on that? There was no discussion from the Commissioners. Nahale-a: Seeing none, all those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the Commissioners. Nahale-a: Motion carries. Thank you. The motion was carried unanimously. Nahale-a: No. 5, Hawaiian Ola Brewing corporation, dba Ola Brew Co., ratification of Application for Temporary Increase in Licensed Premises to its Brew Yard, for event on March 8, 2019. 5. Hawaiian via Brewing corporation, dba Ola Brew Co., ratification of Application for Temporary Increase in Licensed Premises to its Brew Yard, for event on March 8, 2019, approved by Director Gerald Takase on March 5, 2019, to its Small craft Producer Pub liquor license, Category B1, located at 74-5598 Luhia Street, Kailua-Kona, Hawaii. APRIL 4, 2019 -- LIQUOR COMMISSION MINUTES 29 onizuka: Move to ratify. Hughes: Second. Mr. Gnizuka moved to ratify the Application for Temporary Increase in Licensed Premises to its Brew Yard, for event on March 8, 2019, approved by Director Gerald Takase on March 5, 2019, to its Small Craft Producer Pub liquor license, Category B1, located at 74-5598 Luhia Street, Kai I ua-Kona, Hawai `i; seconded by Mr. Hughes. Nahale-a: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Nahale-a: Seeing none, all those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the Commissioners. Nahale-a: Motion carries. Thank you. The motion was carried unanimously. Nahale-a: No. 5, JTJ Enterprises, Inc., dba Quinn's, ratification of Application for Temporary Increase in Licensed Premises to its front parking lot, for events on May 15 and 17, 2019. 6. JTJ Enterprises, Inc., dba Quinn's, ratification of Application for Temporary Increase in Licensed Premises to its front parking lot, for events on May 15 and 17, 2019, approved by Director Gerald Takase on March 12, 2019, to its Restaurant General liquor license, Category 132, located at 75-5555 Palani Road, Kailua-Kona, Hawaii. Greenwell: Move to ratify. onizuka: Second. Mr. Greenwell moved to ratify the Application for Temporary Increase in Licensed Premises to its front parking lot, for events on May 16 and 17, 2019, submitted by JTJ Enterprises, Inc., dba Quinn's, approved by Director Gerald Takase on March 12, 2019, APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 30 to its Restaurant General liquor license, category B2, located at 75-5555 Palani Road, Kailua-Kona, Hawaii; seconded by Mr. onizuka. Nahale-a: Any discussion? There was no discussion from the commissioners. Nahale-a: Seeing none, all those in favor say, "Aye." The commissioners Voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the commissioners. Nahale-a: Motion carries. Thank you. The motion was carried unanimously. Nahale-a: No. 7, Kona Surf Partners LLC, dba Sheraton Kona Resort & Spa at Keauhou Bay, ratification of Application for Alteration Permit for conversion of one guest room to a lounge. There was an add-on exhibit for this? Question? 7. Kona Surf Partners LLC, dba Sheraton Kona Resort & Spa at Keauhou Bay, ratification of Application for Alteration Permit for conversion of one guest room to a lounge, approved by Director Gerald Takase on March 8, 2019, to its Hotel liquor license, located at 78-128 `Ehukai Street, Kailua-Kona, Hawaii. Greenwell: Gerald, again here we are with building code business. Is this going to be a separate private lounge where they serve? Or is it going to be just an expansion? Takase: My understanding is it's for their premier guests. They have a separate lounge for them. It will be involved in several liquor applications. It'll be a VIP lounge for the Sheraton gold members. Greenwell: So the executive members walking in are aware of this lounge and they can walk into this lounge as well? Takase: Yes, they are supposed to be granted access to all locations. Masuda: Gerald, if you look at the "Mickey Mouse ears" right (referring to floor plang The place we're talking about is by the left side? Takase: Right side. APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 31 Masuda: That's over here or someplace else? Takase: It's on the way to Ray's by the Sea location. It's in that wing where the old restaurant was. Waltjen: Ainakai Restaurant is where it's located. Nahale-a: And they're taking one of the guest rooms to add to it? Waltjen: originally it was guest rooms that they changed into this Kaiulu Lounge. Gonzalez: The paperwork is reflecting how things changed there. They actually took the guest hotel room that was located on the fourth floor that overlooked the pool and the ocean and they converted it into a special guest lounge that was available to anybody that had a checked -in membership level and you could actually purchase access to that lounge and they would have a server in there and pupus. There would be some, there would be breakfast. Since that time, they moved it out of that converted guest room down to the former restaurant location. We're finally getting caught up with them. Thomas: So they've already moved? What are we approving here? The use of the guest lounge ex -post facto because it's now no longer being used? Gonzalez: No. The current location. Thomas: okay, that would be the restaurant? Takase: No, it used to be where they had the breakfast served. Now it's going to be their lounge. So we're approving use of that area as a lounge. We're approving changes that they made to it. That's what David was saying why are we in the building position. onizuka: Maybe we should go for a site inspection. Takase: We can. onizuka: Move to ratify application. Greenwell: Second. Mr. onizuka moved to ratify the Application for Alteration Permit for conversion of one guest room to a lounge, submitted by Kona Surf Partners LLC, dba Sheraton Kona Resort & Spa at Keauhou Bay, approved by Director Gerald Takase on March 8, 2019, APRIL 4, 2019 - LIQUOR COMMISSION MINUTE'S 32 to its Hotel liquor license, located at 78-128 `Ehukai Street, Kailua-Kona, Hawaii; seconded by Mr. Greenwell. Nahale-a: So moved and seconded. Any further discussion? There was no further discussion from the Commissioners. Nahale-a: Seeing none, all those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the Commissioners. Nahale-a: Motion carries. The motion was carried unanimously. Nahale-a: No. 8, Last Call Saloon LLC, dba Last Call Saloon, approval of request to transfer liquor inventory for the sale and transfer of the Restaurant General liquor license, Category B2, to Honokaa Public House LLC, dba Honokaa Public House. 8. Last Call Saloon LLC, dba Last Call Saloon, approval of request to transfer liquor inventory for the sale and transfer of the Restaurant General liquor license, Category B2, to Honokaa Public House LLC, dba Honokaa Public House, located at 45-3490 Mamane Street, Units G & F, Honokaa, Hawaii. onizuka: Move to approve transfer. Nahale-a: Is there a second? Arakaki: Second. Mr. onizuka moved to approve the transfer of liquor inventory, submitted by Last Call Saloon LLC, dba Last Call Saloon, for the sale and transfer of the Restaurant General liquor license, Category B2, to Honokaa Public House LLC, dba Honokaa Public House, located at 45-3490 Mamane Street, Units G & F, Honokaa, Hawai `i; seconded by Mr. Arakaki. Nahale-a: Moved and seconded. Any discussion? APRIL 4, 2019 -- LIQUOR COMMISSION MINUTES 33 There was no discussion from the Commissioners. Nahale-a: All those in favor of the motion say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the Commissioners. Nahale-a: Motion carries. The ►motion was carried unanimously. Nahale-a: we've already addressed Nos. 9 and 10. No. 11, Georgia L. Putnam, ratification of Application for Alcohol Purchase Permit for organic cane alcohol (one gallon) and organic grape alcohol (one gallon), for personal use. Georgia L. Putnam, ratification of Application for Alcohol Purchase Permit for organic cane alcohol (one gallon) and organic grape alcohol (one gallon), for personal use, approved by Director Gerald Takase on March 21, 2019. onizuka: Move to approve ratification. Nahale-a: Is there a second? Greenwell: Second. Mr. onizuka moved to approve the ratification of the Application for Alcohol Purchase for organic cane alcohol (one gallon) and organic grape alcohol (one gallon), for personal use, submitted by Georgia L. Putnam, approved by Director Gerald Takase on March 21, 2019; seconded by Mr. Greenwell. Nahale-a: Moved and seconded. Any discussion? There was no discussion from the commissioners. Nahale-a: All those in favor of the motion say, "Aye." The commissioners voted "Aye." Nahale-a: Any opposed, "Nay." APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 34 There was no opposition by the commissioners. Nahale-a: Motion carries. The motion was carried unanimously. Nahale-a: No. 12, Kailua-Kona Restaurants, Inc., dba Pancho and Lefty's Cantina & Restaurante, pursuant to Rule 4-2-M of the Rules and Regulations of the Liquor Commission of the Department of Liquor control of the county of Hawaii, State of Hawaii, requests approval to extend the time issuance of its Restaurant General liquor license, category B2, for an additional six months, from April 5, 2019, to and including October 5, 2019. 12. Kallua-Kona Restaurants, Inc., dba Pancho and Lefty's cantina & Restaurante, pursuant to Rule 4-2-M of the Rules and Regulations of the Liquor commission of the Department of Liquor control of the County of Hawaii, State of Hawaii, requests approval to extend the time issuance of its Restaurant General liquor license, category B2, for an additional six months, from April 5, 2019, to and including October 5, 2019, by email dated March 15, 2019. Masuda: Madam chair, this also requires a finding of good cause. Nahale-a: Thank you very much. Takase: Madam chair, Terry Wigzell who is the applicant, submitted a letter which should be in your packet. one, they're still waiting for approvals from Planning for their renovations; but secondly, he had some medical conditions which I don't think I need to go into detail about. Nahale-a: It's explained in the letter. Ta kase : Yes. Nahale-a: commissioners, if you would like more details it's explained in the letter. If these conditions are enough for us to find good cause, then we can move forward with the approval once someone makes the motion. Greenwell: Subsequent to this letter, we should find good cause to approve an extension. Nahale-a: Thank you, Mr. Vice Chair. Any second? Arakaki: Second. APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 35 Mr. Greenwell moved that subsequent to the letter submitted by Kailua-Mona Restaurants, Inc., dba Pancho and Lefty's cantina & Restaurante, the commission finds good cause and approves the request to extend the time issuance of its Restaurant General liquor license, Category B2, for an additional six months, from April 5, 2019, to and including October 5, 2019; seconded by Mr. Arakaki, Nahale-a: So moved and seconded. Any further discussion? There was no discussion from the commissioners. Nahale-a: All those in favor say, "Aye." The commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the Commissioners. Nahale-a: Motion carries. The motion was carried unanimously. Nahale-a: No. 13, Big Island Distillers Inc., dba Big Island Distillers, requests acceptance of the change of officers, from David Puckett as President/Vice President/Secretary/Treasurer/Director, to David Puckett as President/Vice President; with the election of David N. Clarke as Secretary/Treasurer, and Kenneth K. Alton as Director, effective May 11, 2018; and the Personal History and Affidavits received on March 27, 2019, for David Nathan Clarke and Alton Kenneth Kay. 13. Big Island Distillers Inc., dba Big Island Distillers, requests acceptance of the change of officers, from David Puckett as President/Vice President/Secretary/Treasurer/Director, to David Puckett as President/Vice President; with the election of David N. Clarke as Secretary/Treasurer, and Kenneth K. Alton as Director, effective May 11, 2018; and the Personal History and Affidavits received on March 27, 2019, for David Nathan Clarke and Alton Kenneth Kay, to its Small Craft Producer Pub liquor license, Category A, pending issuance. Nahale-a: Is there a motion to accept? Arakaki: Move to accept their request. APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 36 Greenwell: Second. Mr. Arakaki moved to accept the change of officers, from David Puckett as President/Vice President/Secretary/Treasurer/Director, to David Puckett as President/Vice President; with the election of David N. Clarke as Secretary/Treasurer, and Kenneth K. Alton as Director, effective May 11, 2018; and the Personal History and Affidavits received on March 27, 2019, for David Nathan Clarke and Alton Kenneth Kay, to its Small Craft Producer Pub liquor license, Category A, pending issuance; seconded by Mr. G ree nwell. Nahale-a: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Nahale-a: All those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the Commissioners. Nahale-a: Motion carries. The motion was carried Unanimously. Nahale-a: No. 14, Class 12 Hotel License Growler Sale Inquiries, for discussion and decision-making, various Class 12 Hotel License requests to sell branded growlers filled with local Hawaii craft or artisanal beers from the hotels' select food and beverage outlets to hotel guests for consumption. 14. Class 12 Hotel License Growler Sale Inquiries, for discussion and decision-making, various Class 12 Hotel License requests to sell branded growlers filled with local Hawaii craft or artisanal beers from the hotels' select food and beverage outlets to hotel guests for consumption. Takase: Madam Chair, I asked that this matter be brought up because we are getting more and more requests from hotels to be able to serve growlers and have growler operations on their premises as well. Right now, growlers are specifically allowed for Dispenser operations, bars, and in retail stores. A hotel has both components to it, retail as well as dispensing operations. Somehow in the statute, they were not included to allow growler operations. We are too late for this legislative session, but we will go ahead for next year's legislative session to move to include them. I've asked the hotels to lead the way with that, but from where I sit, we allow the other entities with dispensing APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 37 and retail operations to have growlers, so I don't see the distinction as to why they shouldn't. I'm asking the Commission to do this as a pilot project, maybe for a one-year period. By then we'll know what will happen at the Legislature. It will also help us as we go through to the Legislature to have it and if there are any problems, which I don't anticipate having any. It might have been left out as an oversight because the hotel lobbyists may not have been there when growlers were put in the last time. Greenwell: What are the other Counties doing? Takase: They are not doing anything. I think they may follow our lead. Greenwell: And you say it has to go through the Legislature? Takase: To do it properly, I believe it's the Legislature that grants authority for these matters. They've been silent on this matter. I look at it as an oversight rather than we don't specifically want growlers in hotel operations. That's why I'm saying that I'd like to do it as a pilot project to see if there are any problems, and again I don't anticipate there will be any. We will go to the Legislature next year to add that. Greenwell: So the Legislature has the final say on growlers or not? Takase: It's a matter of debate. They haven't said no, so we know that it's not illegal. But they haven't also said yes, we allow it. It's currently a gray area. That is why we brought it to the Commission. I feel with their silence, the Commission does have authority to act. Ibarra: Can I ask Corporation Counsel a question? Given as presented, can the hotels do it already? What they're asking? With 64 or 32 ounces? Masuda: Currently what the request is from Mauna Kea Beach Hotel is for in-house consumption only to be consumed in a common area and in hotel room. If your question is, `based on their request, can they do it' I would respond that they can. When you look at the existing rules of the Liquor Commission 5-6, it already allows for pitchers of 166 ounces. Half a gallon is less than 160 ounces. If you look at it as a growler being a fancy pitcher, for as they say in their request `on premise consumption' then I would think it is allowable. Takase: A growler is just a different type of container. We already allow re -sealed beverages by all of these and it was taken to its extreme and we don't have a problem with it. We would allow them to do it and they could say they could `re -seal it to take it back to my room.' We don't anticipate any big problems. Growlers seem to be reaching their end. Nationwide, craft producers are down quite a bit in the last years. Hawaii is lagging in the market. You only see our craft producer coming in now, but it will probably end up with only the strong surviving. To allow them to operate as they see APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 38 fit, I don't have problems with it. I wanted the Commission to know what's there and what we would allow them to do. Thomas: I have a question about where the growlers will be available and fillable. It says here that when their regular food and beverage outlets close, then the guests can purchase or get a growler. Are we talking about the bar area? Where are we talking about? Takase: They haven't specified yet, but I'm anticipating that they could either go to a bar or some (other) location. All of them have some detailed operation on there so that might be the other option. But I would think the easiest for them is to do it out of their dispensing operations now. Thomas: It says here that you can get a growler that's empty or filled, so I would imagine that the dispensing point would be the place where people get an empty growler and fill it with something that you want to put in it or to get it filled. Takase: We haven't gotten into the specifics with them. They may sell the growlers at their retail shop and you can get it filled with the growler or they may place a tap in there as well. We're asking the first question that is whether they can do it or not. Assuming they can, we will go into where they can do it. I'm saying they can do it from either location because we allow both retail and dispensers to fill growlers at this point. Nahale-a: Next question. Greenwell: Should we review this portion in this discussion with local craft? In other words, is a growler only going to be filled with local beer? Takase: Maybe we can remove the "local" part. The understanding we had with all the growlers is that it (pertained) more towards the craft type. I tell them that I don't really want them filling it up with (for example) Bud Lite. But seeing the prices, I don't think anybody would. It costs about $27 for growlers. It's not a cheap operation and frankly, I don't know who would pay that much to (fill). Masuda: The empty growlers are $27? Takase: Well, they'll refill it for you. Sixty-four ounces is the big one for $30. That's some high-priced beer. I think that's why it's fun at the beginning, but after a while you may not want to pay that much for a beer. It may be why a lot are falling by the wayside. But like Blue Dragon that came in today, although they're primarily just going to be on their site, and another one is Big Island Brewhaus, the only way you can take out their beer is through a growler. That's the market that they're appealing to at this point. Greenwell: So a growler will only be filled with local beer? APRIL 4, 2419 - LIQUOR COMMISSION MINUTES 39 Thomas: That's what he's saying. Greenwell: Is that how we're reading into the rules? Takase: Yes, but we will probably get into some kind of a discrimination case if we limited it to local beers. It's primarily craft beers and most of them are local. I don't think it's cost effective to bring in craft beers from the mainland at this point because of the refrigeration and shipping. That would make it cost prohibitive. I don't think we have to say "local" because we didn't define "local." Is it only from this island or from the other island? So yes, you can take that out. Gonzalez: That is the proposal from the hotels. Takase: Yes. The hotels are telling us that's what they want to do. Thomas: Yes. It's just a bigger container. They will fill these larger containers with whatever they have on draft. People can drink more and if they want to have a' little souvenir that they pay $3g for, right? `I've been to the Mauna Kea, here's my growler. I brought it home with me.' where else do they do this? Kona Brewery has growlers, right? Gonzalez: Mehana. Takase: Paradise Brewery on Alii. There's several out there. Most of the growlers are now Hydro flasks because they can hold and also keep it cold. That's primarily what we see now. Nahale-a: The suggestion is that we approve a one-year pilot project that would allow the Class 12 Hotel license to sell growlers with craft or artisanal beers for consumption on property. Takase: Yes, but I don't know that we'd be able to... Nahale-a: Police that part of it, right? Thomas: Yes, exactly. Nahale-a: So, just sell growlers? Takase: 1 suspect nobody that is not staying at a hotel will go there just to get a growler. can't see too many people going to the Mauna Kea and paying for parking to get a growler. It'll probably be limited to on -premises consumption. Nahale-a: The pilot project will help to sanction this while we seek inclusion of growlers within this particular business, as a licensee, yes? APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 40 Takase: If we do it, I'm sure Kauai will follow suit and maybe Maui and Honolulu. Nahale-a: I think it's a good idea. Anybody else? Greenwell: Permission granted. Nahale-a: Okay, somebody make a motion. Ibarra: Agreed and based on what Corporation Counsel said as far as they could have done it already, so on this basis and given the representation of Mauna Kea Beach Hotel. Masuda: What I think was being emphasized by Judge Ibarra was that they're asking for on premise consumption, not off -premise consumption. Thomas: Right and we can't enforce that necessarily, though. Ibarra: And this is a pilot program. Masuda: Gerald, when you say pilot, would it be for one year, two years? Takase: Yes, let's do it for one year. By next year we'll know whether it's good or not. We'll also know whether it's going to move through the Legislature. Maybe by then we won't need their approval, we can do it anyway. It's coming to us quickly and we haven't thought out all the ramifications yet, but we brought it to the Commission so you would have some knowledge of what we're doing. Masuda: The Legislature ends in May, right? Takase: Yes, but you have to be in... Masuda: Yes, so one year would be more than enough? Takase: Yes. Ibarra: Ms. Chair, that's why I said based on the representation by Mauna Kea. If you just approve it blanketly, you don't know what they're going to be doing. So at least, I would base my decision on what is presented given the uncertainty of what Mr. Takase pointed out about the rules and the Statute. Greenwell: Is there a motion? Nahale-a: The motion on the floor is to allow a one-year pilot project in which we sanction the selling of branded growlers within the Class 12 Hotel licensed (premises) APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 41 as presented by Mauna Kea Beach Hotel's request. Is there any further discussion regarding this motion? Takase: The motion should be for all hotels because I'm sure other ones are going to follow suit, so what is good for one should be good for all. lbarra: Based on Mauna Kea's recommendation. Hughes: And based what corporation Counsel already said they can do, right? Masuda: Yes. Nahale-a: So, allowing a pilot project that will allow for the selling of branded growlers for the Class 12 Hotel license (premises) as represented within this letter by Mauna Kea Beach Hotel. Thomas: For on -property consumption. Masuda: With a date. Nahale-a: Are we needing to include the on -property consumption as part of that? lbarra: The letter stated that. Takase: To tell you the truth, I don't think we can enforce that part. But I suspect that... Thomas: But that's what they said, right? That's what they said, so we should just repeat back what they said. Takase: okay. Nahale-a: As represented here. Correct? And with a date? You would like to have a date to complete it? Masuda: Yes, the date of the letter. Nahale-a: oh, represented in their letter dated March 5, 2019? Masuda: Correct. Mr. lbarra moved to approve a pilot project for the sale of empty or filled branded growlers by Class 12 Hotel Licensees for on -premises or in-house consumption only, based upon statements by the Deputy corporation Counsel and as represented in the request by Mauna Kea Beach Hotel by letter dated March 5, 2019; seconded by Mr. Hughes. APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 42 Nahale-a: Any further discussion? onizuka: Gerald, you're doing this so that the other hotels can follow this? Takase: Yes, we've had three requests, Waikoloa Hilton, Hapuna and Mauna Kea. onizuka: In the future, if they're going to jump into this program, will they have to notify the Department first? Takase: Yes. They've been good about asking us. onizuka: okay, thank you. Nahale-a: Thank you. Any further discussion? There was no discussion from the Commissioners. Nahale-a: All those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed? There was no opposition by the Commissioners. Nahale-a: Motion carries. Thank you. The motion was carried unanimously. Nahale-a: No. 15, Honolulu Liquor Commission game permits. There has been a news article of interest that has been brought forward to us. Takase: I'll just comment on this article. Bad decisions make for bad articles. What happened in this case is a Honolulu investigator went out and closed down an old ladies' bridge game and they went straight to the press. Now they're trying to extricate themselves from this mess that they've created. All they really needed to do was inform them they should come in for game permits. But this investigator shut them down and sent letters to clubs telling them they couldn't have it (card games). I spoke with Pacarro and said we need to see some damage control. I'll say from our side, I don't think we would get to this point because usually the investigators would come back and ask Brandon what should be done. We have a pretty good relationship with all our licensees. We would just let them know that they need to be permitted; like you see the Elks Club comes in. I don't see us issuing a blanket cease and desist up front. APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 43 Nahale-a: Thank you. Anyone have anything else to say about this? There was nothing further said from the commission. Nahale-a: No. 16, Salary commission's request to appear, for input on proposed salary adjustments for Department Head and Deputy. Takase: The Salary Commission, I think everybody's aware that last year they granted salary increases to all the Departments to try to catch up and some of it was a big catch-up. They are continuing their mission and part of that is to try and come up with a system that will stay in place and keep up with the times so they don't fall behind like they did where it necessitates large increases. They're going to start with the Department Heads that are Commission appointed like myself, the Department of Water although they are separate, the Fire chief, Police chief and the HR Director. The reason they're looking at us first is because since we are Commission appointed, we don't change with the Mayor, we will stay on past him as the commissions wishes. They're looking at trying to implement a system that would us ive periodic steps so that we don't fall behind, so they're asking for input from g the Liquor commission on that matter. The meeting is on May 16 (2019). We will have the information available to have some volunteers present to the Salary Commission. Nahale-a: I said that I can. Takase: I think it's the chairman they're looking at mostly. If anybody else wants to attend, that's fine. Nahale-a: Yes, I can attend. Greenwell: I think one of the things that they're trying to be careful of is the county Council's new transparency and clarification bill that's been put through requesting public input and upfront notification. Takase: Yes. Transparency is something we just have to five with. I think this county does pretty well with it compared to other counties. We shouldn't be afraid of it. We don't have anything to hide. I think we're just responding to their request. They want some input from the outside commissions. For the Water Department and us, we're really the only two that have their own budgets. We don't have the same kind of constraints that the other departments do in terms of the budget and going back to the taxpayers. Any raises that we have we have sufficient funds for. Greenwell: Thank goodness it didn't come up as a charter amendment. Takase: I think we're doing well budget -wise. our money comes from the Licensees and I think if we ask the Licensees, they are very satisfied with how they perceive the Department and how they're treated by us. I wouldn't anticipate any backlash from them. I believe the Salary Commission wants to hear from the commission to help them move APRIL 4, 2419 -- LIQUOR COMMISSION MINUTES 44 forward to come up with a rationale. They may be looking at us as a lead because we don't depend on taxpayer money so it'll probably be easiest to deal with us and maybe serve as their template for moving forward with the other Directors. lbarra: Overall, this issue (inaudible). I was with the county way back and there's always been the question about the Deputies being paid more than the Directors and Civil Service employees being paid more than the Directors. I've always seen that, yes the water and Liquor commission is basically in the budget, but politically the taxpayers don't make that fine distinction. They see in the newspaper `Director of Liquor control has a 40 percent increase in salary vs. Planning Director, 10 percent.' There's a distinction like you just pointed out their budget is basically almost independent. Even though the revenues from the Department of Liquor Control comes from liquor sales and licenses, they don't see it like that. They think it's all part of the County. You see even now when Gerald sends us an invitation to go to conferences, he has to go through a county department and the Finance Director probably questions him as to why (we) can go, but Planning or Public works can't go. So Gerald explains, `number 1, education; number 2, we have our own budget.' But they don't look at it that way politically. I'm saying politically if the decision makers, like Gerald said, are strong on facts bases, they should be looked at individually; look at the records. But politically, it's not like that. lbarra: They come up with a plan with the Salary commission, which basically is whatever the Salary Commission comes up with should not go through the county council budget process because that's where the politics are in. Now, they say `let's look at this again, let's make it more transparent to voters.' I think you're going to be dealing with that and even though you explain about the Department of Liquor Control budget, just like water Department, comes not from the taxpayers, but the users basically, and should be treated differently. But, unless you're a tough politician that doesn't worry about being re-elected when you do the right thing, politically you're going to have to deal with it and address it. Although I'm in favor of getting good people who'll stay the job and getting paid for what they're worth, and if they're not doing the job, don't keep them, right? If you're not doing the job, find somebody else. If you're doing the job, you should get the raise. Hughes: That's how good businesses are run. Takase: Yes. I don't know that they're looking at an immediate raise. It's setting a system in place to keep them out of what has happened in the past when they grant a raise and the Salary commission disbands for five or ten years until there's enough clamoring that they have to do something. Then they jimmy up a new commission and suddenly they're stuck there saying they have to give them twice the percent. I spoke with Hugh Ono who was the last Salary Commission Chairman and he said they took a lot of heat, he felt needlessly. one of his recommendations was that the Salary commission did the hard part but now, instead of disbanding put something in place so that we're not faced with this "catch up" thing every time. I think that's what they're trying to do now. They're started off with us and are asking for, like any other Commission, they want some support. APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 45 Ibarra: Basically, a pay scale, a standard schedule that can maybe go out for public hearing to let the public know that after so many years you get a percentage, not necessarily an amount, but percentage rates. Takase: Right. Ibarra: And that would be discussed at a public hearing so when the time comes, you already have it. It's already been discussed way back and even though there's going to be clamor or public outcry, it's already been discussed. Nahale-a: What if we just use our thing to set the salaries? Takase: I used to advise the Salary Commission. A new Salary Commission is created every five or ten years. Although it shouldn't work this way, this is how it typically works. Your underlings have been getting raises steadily through union negotiations and now, if you look at the Police Department, all of their Assistant Chiefs make way more than the Chief. That's why the Police Chief is a little different job and they're going to consider that, but you usually don't find Assistant Chiefs applying for the chief position because (they'd have to take a pay cut to be in the top position it's not worth it). Even in this last go `round, the Deputy chief now, who was a Captain was the only one willing to, so at least for him he still got a raise. Even here, Steve Morifuji who recently retired was scheduled to pass me in the last go around. You can see this inversion through all the departments. That's what pushes the Salary commission to at least try to get the Heads above the workers. It's not the ideal system, but it's the reality of salaries at this point. Nahale-a: But within the Liquor commission itself, how do we set the Department Head's salary? Takase: You don't; it goes through the Salary Commission. Nahale-a: okay. They've set it for you to include in your budget? Takase: With the last go around, Bill Takaba and Sidney Fuke testified before the Salary Commission. They were in support of it because they could see this long lag that was there. With every public sector employee, even at the line people, the Heads, same with Judges, they're only subject to a Salary commission. They (Judges), at least have a chief Justice that will go and fight for them whether successful or not. There has to be some rhyme and reason and that's what's provided. In a perfect world, you wouldn't have to get to that point. They could operate ahead of time and do it. A small jurisdiction like this is left to the end until it becomes critical, then you have to act. Ibarra: one of the things that helps when reviewing appointees' salaries is an evaluation. If I was a Salary commissioner, I'm talking about the appointees not the civil service (employees) because civil service is (different). If Gerald came up for a raise, (I might ask) how do we know Gerald's doing a good job? Have you evaluated his performance APRIL 4, 2019 7 LIQUOR COMMISSION MINUTES 46 When I was a judge, I'd walk with that point. I always said `well, you're still periodically? here aren't you? That's my evaluation because you were appointed and fired by me with two weeks noticed, but you're my appointee. Directors appointed by Commissions, like the Police commission evaluates the Chief. I think it helps to present to the public that Gerald is doing a great job and this is why you deserve the raise. Takase: Although the Salary Commission said they're not looking at the individual, but the position. Ibarra: And they assume if you're still there, you're evaluated and you're doing a good job. No offense intended, but I've seen in the newspaper, Vilest Hawaii Today, people's criticism of the Water Management in West Hawaii. The wells have gone down two or three times, you know. I'm not criticizing, but it's just the public's perception. I've seen the letter and they wanted a discussion of some of the factors that you would consider, right? The only factor that I would consider is basically seniority, longevity, performance, responsibility. Takase: We'll work with you (to Chair). May 10th is the meeting. Nahale-a: Anything further? There was no further discussion. Nahale-a: Since none, we will move on to No. 17, Special Licenses Issued for Ratification. could I please get a motion for ratification of Special Licenses, Application Nos. SP -18-102 to SP -18-109, Item Nos. 17(a) to 17(h). Greenwell: I'll make that motion for Applications SP -18-102 to SP -18-109, Item Nos. 17(a) to 17(h). Hughes: I second that. Mr. Greenwell moved to ratify the following Special Licenses: 17. Special Licenses Issued for Ratification a. Application No. SP -18-102, Hawaii Island United Way, Inc., dba Hawaii Island United Way, Inc., for a Special Beer and Wine liquor license, on March 18, 2019, at the Makani Golf Club, located at 71-1420 Mamalahoa Highway, Kailua-Kona, Hawaii. b. Application No. SP -18-103, Parker School, dba Parker School, for a Special General liquor license, on March 9, 2019, at The Fairmont orchid, Hawaii Grande Ballroom, located at One North Kaniku Drive, Kohala, Hawaii. APRIL 4, 2019 -- LIQUOR COMMISSION MINUTES 47 C. Application No. SP -18-104, Cooper center Council, dba cooper center Council, for a Special General liquor license, on March 16, 2019, at the Cooper Center, located at 19-4030 Wright Road, Volcano, Hawaii. d. Application No. SP -18-115, The Friends of the Palace Theater, dba The Friends of the Palace Theater, for a Special Beer and Wine liquor license, on March 21, 2019, at the Palace Theater, located at 38 Haili Street, Hilo, Hawaii. e. Application No. SP -18-108, Hawaii Island Humane Society S.P.C.A., dba Hawaii Island Humane Society S.P.C.A., on March 29, 2019, at the Four Seasons Resort Hualalai, Hualalai Ballroom, located at 72-100 Ka`upulehu Drive, Kailua-Kona, Hawaii. f. Application No. SP -18-107, Volcano Art Center, dba Volcano Art center, for a Special Beer and Wine liquor license, on March 17, 2019, at the Volcano Art Center, located at 19-4074 old Volcano Road, Volcano, Hawaii. g. Application No. SP -18-148, Holualoa Foundation for Arts & Culture, dba Donkey Mill Art Center, for a Special Beer and Wine liquor license, on March 22, 2019, at the Lanihau Shopping Center, located at 75-5595 Palani Road, Kailua-Kona, Hawaii. h. Application No. SP -18_109, Kona Dance & Performing Arts, Inc., dba Kona Dance & Performing Arts, Inc., for a Special Beer and Wine liquor license, on March 22, 2019, at the Haleki`i Commercial Complex, located at 81--973 Haleki`i Street, Kealakekua, Hawaii. The motion was seconded by Mr. Hughes. Nahale-a: Thank you, it's been moved and seconded. Any discussion? There was no discussion from the commissioners. Nahale-a: Seeing none, all those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the Commissioners. Nahale-a: Motion carries. The motion was carried unanimously. APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 48 18. Transient Vessel Licenses Issued for Ratification Nahale-a: No transient Vessels issued for ratification at this meeting. Ix. Announcements Meetings of Liquor commission Nahale-a: Our announcements are the next meetings of our Liquor commission are: May 2, 2019, 10:00 A.M., Meeting Room, Department of Liquor Control, West Hawaii Civic Center, 74-5044 Ane Keohokalole Highway, Building B, 2"d Floor, Kailua-Kona, Hawaii. June 6, 2019, 10:00 A.M., Meeting Room, Department of Liquor Control, West Hawaii Civic center, 74-5044 Ane Keohokalole Highway, Building B, 2nd Floor, Kailua-Kona, Hawaii. Nahale-a: Please make sure to let Dorsi know (availability) for July. Takase: One other thing, I'm not sure if you noticed or not, but we changed the agenda format to a block (style). Nahale-a: I did notice. Takase: Dorsi would like some feedback as to whether it's better or worse. Nahale-a: I actually like it. I had to remember the Verbiage as I'm going through each line, but I find it to be Very clear when I look at what the information is without all the extra language when written in paragraph form. Takase: Unless there's any objections, we will stick with this new format and see how it goes. X. Adjournment Nahale-a: Motion to adjourn? Greenwell: Move. Nahale-a: Is there a second? Arakaki: Second. Mr. Greenwell moved to adjourn; seconded by Mr. Arakaki. Nahale-a: Moved and seconded. Any further discussion? APRIL 4, 2019 - LIQUOR COMMISSION MINUTES 49 There was no further discussion from the Commissioners. Nahale-a: All those in favor say, "Aye." The Commissioners voted "Aye." Nahale-a: Any opposed, "Nay." There was no opposition by the Commissioners. Nahale-a: Motion carries. We are adjourned. Thank you. The motion was carried unanimously. The meeting was adjourned at 11:39 A.M. ar d Takase Director APRIL 4, 2019 -- LIQUOR COMMISSION MINUTES 54