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HomeMy WebLinkAbout2025-12-15 Liquor Commission Minutes Hilo (Special Meeting)COUNTY OF HAWAI`I DEPARTMENT OF LIQUOR CONTROL LIQUOR COMMISSION SPECIAL MEETING MINUTES — DECEMBER 15, 2025 HILO LAGOON CENTRE 101 AUPUNI STREET, UNIT 145 H I LO, HAWAI `I I. Call to Order The meeting was called to order by Chair Okabe at 9:00 A.M., in the Hilo Lagoon Centre Conference Room, 101 Aupuni Street, Unit 145, Hilo, Hawaii. The following were present and constituted a quorum: Commissioners: Wil Okabe, Chair David Greenwell, Vice Chair Steve Morifuji, Commissioner Gene Nakashima, Commissioner Laurisa Nishimoto, Commissioner Alan Okamoto, Commissioner Arthur Taniguchi, Commissioner Melvin Ventura, Commissioner Jennifer Yadao, Commissioner Absent and Excused: None Others Present: Gerald Takase, Director Cameron Takamura, Deputy Corporation Counsel Keyra Wong, Deputy Corporation Counsel ZoeAnn Bertelmann, Licensing Technician Hau`oli Sayles, Commission Secretary Okabe: Please silence your phones and devices. This meeting is being recorded, the microphones in this room do not amplify your voice but only record what is being said, so speak loud, clear, and one at a time so the recording is understandable. We will now do the roll call, please say present when your name is called. Sayles: Vice Chair Greenwell. Greenwell: Present. Sayles: Commissioner Morifuji. Morifuji: Present. Sayles: Commissioner Nakashima. Nakashima: Present. Sayles: Commissioner Nishimoto. Nishimoto: Present. Sayles: Commissioner Okamoto. Okamoto: Present. Sayles: Commissioner Taniguchi. Taniguchi: Present. Sayles: Commissioner Ventura. Ventura: Present. Sayles: Commissioner Yadao. Yadao: Present. Sayles: Chair Okabe. Okabe: Present. Sayles: Others present are Director Gerald Takase, Deputy Corporation Counsel Keyra Wong, Deputy Corporation Counsel Cameron Takamura, Licensing Technician Zoe Bertlemann, and Commission Secretary Hau`oli Sayles. II. Approval of Minutes —November 6, 2025, Regular Session (09:01 AM) Okabe: The November 6, 2025, regular session minutes was circulated via email on December 12, 2025. Greenwell: This is Greenwell, I'll make the motion to approve the regular session minutes as circulated. Okabe: Is there a second? Nishimoto: Nishimoto, second. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 2 OF 35 Commissioner Greenwell moved to approve the November 6, 2025, Liquor Commission minutes as circulated; Seconded by Commissioner Nishimoto. Okabe: Is there any discussion to the motion? There was no discussion by Commissioners. Okabe: Hearing none, any public testimony at this time in regard to the minutes? There was no public testimony. Okabe: Hearing none, all those in favor please say "Aye." The Commissioners voted "Aye." Okabe: All opposed "Nay." There was no opposition by Commissioners. Okabe: Motion is carried. The motion was carried unanimously. III. Public Statements on Agenda Items (09:02 AM) Okabe: Any statements from members of the public at this time? Please state your name, the agenda item you are here for, and then start your testimony. Masuda: Good morning, Chairman Okabe and Commission, my name is Craig Masuda, I'm here to testify for Stacie Waltjen, I believe it's Item No. 2. I'm in support of her nomination for being elected the new Director. For those of you who don't know, previously I was the Corporation Counsel assigned to the Department of Liquor Control doing both the Commission and the Adjudication Board for about 20 years. So, when came to testify before the Commission the last time, I testified in support of Gerald Takase to be the Liquor Director. I think that worked out pretty good, I mean I think you worked out pretty good, that doesn't mean I know anything more than anybody else. But I have seen my fair share of hearings as representing the Commission, well representing you folks and assisting you folks, as well as the Liquor Adjudication Board. Also, prosecuting cases on behalf of the Department, so I'd say I'm kind of well versed in the workings of the Liquor Department. You know, I have a hard time calling her Ms. Waltjen, so if you'll excuse me, I'll just call her Stacie. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 3 OF 35 Stacie possesses the unique blend that actually, and I don't want to say she's like Gerald, because it's kind of an insult, but just think of Gerald but in a nicer package because she represents what people who support government want, they want someone who's compassionate, who listens first, and takes their responsibility very seriously. You know, it's not just a job to them, I know it's not just a job for Stacie, it's a duty. It's you know, I don't want to use the cliche, "It's a calling," you know, because you know it is a calling in a way that you have to take and internalize what your duty is personally, and they both do that. They both take it, their job if you want to call it a job, but they take their duty seriously, and they recognize that it's not an us -them kind of situation. They don't see the licensees as the enemy, they don't see the public as an irritant, it's something that's necessary to be done for the system to function. And you know, I think in this County in this Department, a large part of why it works is because of Gerald, Stacie, and Jan Pakele before them. It's an atmosphere where the licensees can come and say, "Oh, you know what? Yeah, I screwed up." And they'll come and they'll you know, "Can I have mercy?" And it's a place where the public can come, not only feel heard but also get some traction, you know. And I don't want to talk too much about Gerald, but Gerald provided the framework in which Stacie has grown and learned. I don't know if he does it lately, but I always remember being shocked as an attorney and going, "Oh no, don't do that, you incurring too much liability." But if you have a problem, there was a problem in Kona where the community had a problem with a new licensee, that licensee was brand new, but they had a problem with a previous licensee in the area and noise. Gerald went out and said, "You know what, let's have a meeting." He would go out into the community where they were, not, "Oh, come down to the office." He would go out to the community meeting where they were and listen to their concerns, and bring in the licensee, the new prospective licensee so they can work out a mutual operating environment. And that's the kind of thing that Stacie is going to take up and then carry on, right? So, then you folks don't have problems, and that was always the problem, have people work harmoniously together without having problems come, will have to come before the Board. And not have problems come to the level of, okay now there's a violation, and you either contest it or you don't. But you know, liquor is a reality in our society and it's a reality that has to be regulated, you know. And that's your folk's job is to regulate, and I think Stacie will be an excellent candidate to help you folks do that. If you have any questions, I'm available to answer. If not, thank you and I hope you appoint Stacie. Matsui: Good morning, I'm Marcia Matsui, I used to work for Liquor for over ten years. don't know why but sitting here in front of you is making me very nervous. I'm just here to show how much I support Stacie Waltjen as the next Director of Liquor Control. She's the one, she has the personality, she has the knowledge, she's a package for the next Director. I think her concern for existing licensees, for new licensees is something that she should be credited for, she's not there to just say you're a licensee, she's there to help them, she wants to see them succeed. Without the licensees, there is no Liquor Control, and she will take that same care for her employees of the Department. She's a package, she's the one, thank you. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 4 OF 35 Kuali`i: Hi, good morning, my name is Jennifer Kuali`i, I'm here to support Stacie Waltjen as the next Director of the Liquor Department. I have known Stacie for a number of years, I have worked with her for a few years at Corporation Counsel and can attest to her attention to detail, her enthusiasm, her well-rounded knowledge, and looking at the big picture on any matter that comes before her. She is also a very easy person to get along with, easy to talk to, and well -liked by a lot of people. So, I am here in support of Stacie as the next Director for the Liquor Department. Thank you. Okabe: Any other testimony? There was no further public testimony. IV. Unfinished Business (09:11 AM) 1. Referral for Executive Session Regarding the Selection Process for the New Director of the Department of Liquor Control The Commission anticipates convening an executive meeting pursuant to Sections 92-4 and 92-5(a)(4) of the Hawaii Revised Statutes, as amended, for the purpose of consulting with the Commission's attorney on questions and issues pertaining to the Commission's powers, duties, privileges, immunities, and liabilities, as it relates to the selection process for the new Director of the Department of Liquor Control. A 2/3 vote of the members present is necessary to hold an executive meeting, pursuant to Section 92-4(a) of the Hawaii Revised Statues, as amended. Okabe: Not yet? Takase: Let's just go into the interview of the candidates. V. New Business (09:12 AM) Okabe: Commissioners, all of you have received the packet right now, and you have the opportunity to review the packet. Before we begin the next agenda item, would like to make sure all the Commissioners can evaluate all candidates fairly and impartially based on their merit, qualifications, and fitness for the position, and can make a decision in the best interest of the Department. If any Commissioners have any concerns, please let me know the general nature of your concerns at this time. If there are none, we will move on to the next agenda item. There was no discussion by the Commission. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 5 OF 35 (09:13 AM) 1. Interview Candidate Andrew Kouchi, Liquor Control Investigator III, for the position of Director of the Department of Liquor Control Okabe: Are you guys ready to proceed with the questions, or do you guys need a little bit more time? Okay, so I'd like to call a recess so that you can review that, and then we'll call Mr. Kouchi in. RECESSED AT 9:15 A.M. RECONVENED AT 9: 27 A.M. Okabe: Unless otherwise noted on the agenda, today's interviews and hiring process are anticipated to be conducted in open session. To the candidate, if any of your responses to an interview question will include information you consider private and wish to keep confidential, please inform us of the general nature of that privacy concern before answering the interview question. The Commission will then determine whether the executive session may be appropriate. Mr. Kouchi, we're going to start the interview process, I'll read off the questions and then give you time to answer it. First of all, No. 1, what motivated you to apply for the County of Hawaii, Director of the Department of Liquor Control position? Kouchi: Thank you, well first I'd like to say good morning, Mr. Chair and Commissioners, thank you for the opportunity to present my qualifications to be the next Director of the Department of Liquor Control. To answer your question on what motivated me to apply for the County of Hawaii, Director of the Department of Liquor Control, I was motivated to apply because I care deeply about the role the Department of Liquor Control plays in our community's health and economic opportunities for the island. After 11 years in this Department, I've seen how our policies and enforcement decisions directly impact the community, economy, and the business liquor industry as a whole, and also our decisions also affect public trust. The Director's role to me it's not just enforcement, it's assuring that the law is applied fairly, consistently, and with an understanding of the broader consequences any decision can have. From a leadership perspective, I'm motivated by the opportunity to balance and support our staff current and future. As a supervisor currently, I'm focused on mentoring, training, and accountability, and I'll continue that approach by aligning the staff's efforts with the Commission's goals and the County's priorities. From a policy standpoint, I'm motivated to help shape and implement legally sound practical procedures that address emerging challenges that are currently facing our liquor industry as a whole. I've already contributed to the policies and procedures currently in use, and I would like to build on that experience. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 6 OF 35 Okabe: Next one, No. 2, if you were in our position, why would we hire you? Kouchi: I would hire me because I bring a strong combination of practical enforcement, leadership experience, and informal education in political science with a focus on law, public policy, and government. My degree and my experience have provided me with a foundation in statutory interpretation, regulatory frameworks, and the administrative processes which has directly influenced my work over the past 11 years with this Department. My approach with regulation is not just from an enforcement perspective, but through a policy considering the legislative intent of each law, the Commission's intent of each rule, due process and the broader interest as a whole in our community. That approach has guided my work in developing investigative procedures, our current auditing process, and also to make sure that they are both legally sound and operationally effective. I understand it is the Director's responsibility to carry out the Commission's policy direction, but he also needs to make sure that everything is consistent, fair, and that any enforcement is intensive. I believe I offer the Commission a Director who is prepared to lead from day one with sound judgment, continuity, and a clear understanding of how policy enforcement can impact the community and the liquor industry as a whole. Okabe: No. 3, what would you consider your strengths and your weaknesses, and what would you do to improve in the areas that are not your strengths? Kouchi: One of my greatest strengths is my comprehensive understanding of our liquor laws, our policies, and our operations. Again, with over 11 years in this Department, under the Department of Liquor Control, I understand how the law is written, what its intent is and how it's applied in practice, and how a decision at the Director's level affects staff, licensees, the economy, and the community. This allows me to make consistent, fair, and defensible decisions. Another strength is leadership and team development. As a supervisor currently, I focus on bringing up our staff, their training, their accountability while maintaining strong working relationships and clear expectations. An area that I continue to strengthen is the higher -level administrative side particularly with longer -range planning and budget awareness, those are just two things that I feel that I need to strengthen. For example, while developing and influencing our current auditing procedures, I became more involved with the administrative reporting and the tracking of recovered revenues, which reinforced the importance of aligning enforcement with fiscal accountability and long-term planning in that sense. Since then, I've been intentional about expanding my administrative focus through program planning, budget review and building procedures with clear reporting and sustainability. see this as a necessary part of growing into the full scope of the Director's role. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 7 OF 35 Okabe: If hired, what do you perceive are your obligations as Director? Kouchi: Well, I see my obligations in a few areas. First, I'm responsible for ensuring the liquor laws, rules and regulations are enforced consistently, fairly, and transparently in order to protect public safety, maintain integrity of the licensing process, and to ensure a lucrative liquor industry. Second, I'm obligated to carry out the Commission's policy direction and translate it into effective day-to-day operations while keeping the Commission informed of trends, challenges, and outcomes. Third, I have an obligation to lead and support staff by providing clear expectations, proper training, and the resources necessary for them to perform their duties both professionally and effectively. also see it as my responsibility to maintain constructive relationships with licensees, the business community, and partner agencies through clear communication, education, and collaboration. Finally, I'm also obligated to make informed decisions using data best practices and measurable outcomes to continuously improve our operations. And overall, my responsibility is to lead the Department in a manner that is fair, accountable, transparent to the community, and aligns with the Commission's priorities Okabe: No. 5, what are your priorities as soon as you become Director, and what things would you hope to accomplish in the first year? Kouchi: If selected as the new Director, my immediate priorities would be to focus on three areas. One would be staff engagement. I would meet with our current employees and past employees, to understand our challenges, strengths, and any opportunities that we as a Department can have for improvement. Being a frontline staff, understand that we can provide critical insight, and early engagement helps to build trust, align our expectations, set clear goals, and improve employee retention and improve morale. Second, I would do an operational assessment, I would review our existing policies, procedures, and data to identify opportunities to improve any inefficiency, any opportunities for modernization, and in turn improve compliance. Given my experience developing procedures and my education, I would look for ways to better leverage technology and then use data to support enforcement and improve our customer service. And third, I would strengthen relationships with all of our licensees, other law enforcement agencies, and the community through communication, education, and outreach. In the first year, I will aim to streamline any key processes we have, expand training for the staff and licensees, improve data -driven reporting, and strengthen collaboration with the Commission and Adjudication Board. And this would set a strong foundation for long-term success. Okabe: No. 6, can you provide for us at least two goals you want to set for the Department, and what are your plans to achieve these goals? MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 8 OF 35 Kouchi: So, a few goals that I have that I want to set for the Department, and plans to achieve them, are one, I would like to strengthen our relationship with the community and also the licensees. I want to foster trust and collaboration by maintaining open communication, providing more educational opportunities, and proactively addressing any concerns from licensees, other law enforcement agencies, and the public in general. Expanding our outreach and feedback helps the Department build strong partnerships that support compliance and public safety, and being proactive in this has always been a goal of mine, something that I try to teach our current investigator staff. By focusing on education, efficiency, and staff development, my goal would be to ensure that the Department operates effectively and maintains public trust, and supports both compliance, public safety, and the business community. also would like to strengthen our underage drinking and overservice prevention programs, and I will do this by expanding our educational programs for licensees and the community, including schools. Increase the frequency of our compliance checks, and then leverage technology for age verification, and online ordering and monitoring. And I would track this data on violations, that would allow us to get a broader understanding of what we need to do and who needs improvement. And then, I would also like to see how we can accomplish that, and then I would also like to modernize and improve our operational efficiency. Again, I will review our current policies, processes, and reporting systems to identify any opportunities we have for improvement, and I will draw from my experience that I have now developing auditing procedures, and online investigation protocols. And, I would implement technology - driven solutions, standardized reporting, and provide additional staff training to enhance their consistency in their business. Finally, I would like to enhance our staff development and our staff engagement, and would focus on mentorship training and professional development programs with our current staff, make sure that they're equipped with the knowledge and tools to perform their duties effectively, and efficiently. And, also hold regular briefings and cross-trainings to make sure that all communication channels will be open, and then help to ensure that our staff continues to have a high morale and encourage innovative and new solutions, and problem solving. Okabe: No. 7, what is the best way to motivate an employee, and why do you believe this method is effective? Kouchi: I personally believe employees are best motivated through clarity of purpose, consistency and expectation, and trust in leadership. Employees need to know why they come to work, how their role affects operations as a whole, and then what our goals for them are at that time, and the overall goals for the Department. Motivation is strongest when employees understand the Department's mission, what their role in achieving it is, and also the standards in which performance is measured. When expectations are clear and applied consistently, I believe that it makes employees feel more respected and engaged in the process. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 9 OF 35 Employee empowerment supported by accountability is also essential, employees should be trusted to exercise judgement with a clear policy framework and given training and the resources needed to succeed in any position they hold. This encourages initiative, innovation, and maintains clear consistency and compliance. And finally, one of the most important things would be recognition and professional development. Recognition and professional development are critical to sustaining motivation. Acknowledging performance, investing in training, and then mentorship reinforce professionalism, and demonstrates that leadership values its employees. And this approach is effective because it aligns individual performance with organizational goals in our current enforcement environment. Okabe: No. 8, tell me about a time when a team you were on got stalled and did not function effectively? Kouchi: Well, earlier in my supervisory role, I was leading a team that was conducting a series of compliance checks into underage sales of alcohol to minors. And this involved myself, and multiple teams, and it was done with a few grant -funded college kids from `O`ahu. Our team began to stall because there was unclear designation of roles, overlapping responsibilities, and inconsistent communication with us, my team and the other teams. There was a incognitos mitigation between my team internally, and other teams that were conducting these compliance checks as well. And then to address that, I focused on restoring structure and accountability, designating clear roles and clarifying them on what the expectations were from each person, and improving communication by holding briefings before we enter each licensee to conduct their compliance check. Just to open a dialogue and to hear any concerns, discuss what went right and what went wrong with each compliance check that we did. And then allow team members to conduct, raise any concerns or suggest any solutions to any problems that we might face. And then, this allowed my team and the other teams to regain momentum and our communication improved, and the best investigations we're done thoroughly and legally within the required timeframe that we had. This process also strengthened the trust between us and the other students that were required by the grant and also strengthens the accountability for each team. Okabe: No. 9, as Director of the Department of Liquor Control, it would be important to stay current in changes in government oversight, the industry and the marketplace. What actions would you take to stay informed and involved, and what role does the Commission have in the scheme of things? Kouchi: I would stay current on law and policy by closely monitoring all the related activities, any administrative changes coming from the Commission or from our County government, and also stay current with any statewide, country -wide, or county -wide trends. And then I'll also maintain clear communication with our legal counsel, other safety partners and businesses, our licensees, staff and other County agencies. would also maintain a strong relationship with the industry and community members. Throughout my career, I've trained licensees in liquor classes, I've spoken at a few statewide liquor conferences, and conducted ongoing education and compliance programs. Continuing that engagement allows the Department to understand any MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 10 OF 35 evolving business practices, changes in technology, and compliance challenges before they become an enforcement issue, and I also would rely on our frontline staff's insight. Starting in this Department as an Investigator Trainee and working my way up to a supervisor over the past 11�/2 years, has taught how valuable insight of our family staff is and how important their suggestions, observations, and complaints are. Regular briefings and internal communication to ensure that any field observations and compliance trends form our policy and operational decisions. I would also use data and technology to guide our priorities. I would drive my experience as an investigator, developing procedures and conducting investigations to guide us in this area. And finally, I understand the Commission's role, our Commission sets policies and provides oversight. The Director implements that policy and manages and reviews operations. view this as a transparent partnership that is supported by persistent communication, and data review accordingly. Okabe: No. 10, while we are called the Department of Liquor Control, the scope of our enforcement is possibly expanding to include matters such as tobacco, marijuana, and ensuring tax and regulatory compliance. Do you feel that expansion in this scope is appropriate or inappropriate, and why? Kouchi: Yes, I believe the expansion of the Department of Liquor Control's enforcement can be appropriate and beneficial if implemented thoughtfully and with clear statutory authority. There's a natural alignment between liquor control and areas such as tobacco, marijuana, and tax compliance given the shared focus on licensing, age restrictions and public safety. The Department already has strong experience in inspections, investigations, audits, education, and licensing with a highly regulated industry such as alcohol, and those skills are transferable to expanded responsibilities. Successful expansion depends on proper planning, adequate resources, and clear policy direction from our Commission and other partner agencies. Staffing, training, funding, and interagency coordination need to be addressed to ensure our core liquor enforcement is not compromising the process. I would support expansion by collaborating with the Commission, County leadership, and partner agencies to develop strategies that ensure new responsibilities are executed consistently, fairly, and professionally. And if done correctly, this expansion can strengthen compliance, protect the public, and enhance confidence in the County's oversight. And if directed by the Commission to expand the Department's enforcement scope, will take a phased and delivered approach. I would first work closely with the Commission and our Corporation Counsel to ensure clear legal authority and defined objectives, and I would assess our resources including our staffing, our training, and the budget to ensure that the expansion is sustainable and does not compromise our original core enforcement values. I would then focus on targeted training and standardizing procedures so the enforcement is consistent, fair, and legally defensible, and in coordination with our partner agencies who will also be a priority to leverage their expertise and avoid any duplication, and to learn from any mistakes for any trouble they have along the way. And then, I would establish clear metrics and regular reporting to MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 11 OF 35 the Commission to track progress, address challenges, and maintain transparency and accountability. And this approach ensures that any expansion strengthens compliance, public safety, and trust while preserving the Department's core mission. Okabe: No. 11, what kind of programs would you implement, perpetuate and / or expand upon to assist in fostering programs to address underage drinking prevention and overservice prevention? Kouchi: I believe that underage drinking and overservice prevention is most effective when enforcement education and partnership work together. Programs should prevent violations before they occur while holding individuals and businesses accountable when necessary. For underage drinking, I would continue to expand compliance efforts such as our sales to minors compliance checks, our delivery and online ordering compliance checks, and conduct identification verification training for our licensees and our current investigators. I would also strengthen our partnerships with our local schools and youth programs, and parenthood organizations, to provide age -appropriate education about all laws, decision -making, and the consequences. For overservice prevention, I'll expand responsible beverage service training focused on recognizing intoxication, managing challenging situations, and understanding liability. Partnering with our community and liquor industry groups encourages voluntary compliance and reinforces best practices. I would also use a data -driven approach to target any high -risk areas, analyze our violation trends, and analyze our compliance outcomes to focus our resources effectively in this area. These programs foster a culture of shared responsibility, protecting both the community, and maintaining trust between the Department, the licensees, and our community as a whole. Okabe: No. 12, can you give me an example of a specific occasion in which you conformed to a policy or a law which you did not agree? Kouchi: I cannot recall the specific situation where I did not agree with a policy or law, or I did not comply with the policy or law, but with that being said, for this question in terms of a situation where I did not agree with the direction given to me by my direct supervisor at the time, I can recall the one specific situation. I was once ordered to conduct an inspection of a business that I felt posed minimal risk, but I was directed to follow certain strict compliance procedures. This was due to unfounded complaints before an investigation could be completed, during that time I was required to seize all alcohol that they had on property as evidence. These complaints were shortly after discovered to be false and deliberately made to harm the licensee by a past owner who had I guess, been taken off of leasing the business, and a new lease was drawn up for another person. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 12 OF 35 But even though I disagreed, I followed the policy and direction by my supervisor completely. I conducted the inspection, seized the alcohol, documented everything thoroughly, and then ensured the licensee understood the requirements, what was happening and what they can do to get the alcohol back. I did voice my concern over this operation to my direct supervisor. Throughout the investigation, this experience reinforced that as an investigator, a public servant, as someone in the law enforcement community, it's important to uphold the law consistently while offering insight to improve it. And I would expect that our current Director has always been open to listening to any concerns or any complaints that we might have about a procedure, and explain anything that we might not understand. That's something that I hope to bring if chosen as the next new Director. I want to be clear though that violating any policy or law whether you're the Director or a staff member is not acceptable at any time and they should be held accountable. Okabe: No. 13, the Department strives to maintain positive work relationships with licensees and the business community. What will you do to perpetuate and enhance these relationships in the future? Kouchi: Well, maintaining a positive relationship with the licensees and the business community has always been a priority of mine, and it is something that I do even in my current position, and it's something that I instill on our investigators that I'm lucky enough to train. And that is something I would continue to emphasize Department -wide as a Director, and I would accomplish this through clear communication, education, and collaboration with our staff and our licensees. And then, I would ensure that all licensees receive timely clear information about any rules, policies, policy changes, and compliance expectations. I believe in proactive law enforcement and proactive communication during inspections, classes, conferences, and meetings. And any type of communication builds trust and prevents any misunderstandings between our staff, our enforcement strategies and policies, our licensees, and the community. I would expand their educational programs providing practical guidance, compliance technology use and best practices to help our businesses and licensees succeed while staying within the law. will also maintain open channels for licensees to share concerns or suggestions directly with myself and my staff, and this will help foster a culture of partnership rather than just enforcement. And then finally, consistent and fair application of rules and laws strengthens respect and trust by the staff, licensees and community. My approach would be proactive, transparent, and educational, balancing our regulatory responsibilities with strong relationships to support compliance, public safety, and to maintain a healthy and lucrative liquor industry. The Director is the Commission's representative, this is not an easy task, I'm not applying to be the next Director because it is easy, I'm applying because I've worked towards this goal for over a decade. I admit there are areas that I will need guidance, but I am ready both personally and professionally for this role and to carry out the Commission's agenda. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 13 OF 35 Okabe: Anything else you want to add as the last question of the interview? Kouchi: Yes, so I just wanted to add if I'm selected as the next Director, I am again committed to carrying out the Commission's policy direction with professionalism, transparency and respect for the law. I will focus on supporting and developing our staff, maintaining constructive relationships with licensees, community partners, and industry members, and ensuring that the Department continues to operate in a manner that promotes public safety, public health, public trust, and retains a lucrative liquor industry stimulating our economy. I appreciate your time and consideration and will be honored to serve the Commission and the County of Hawaii as the next Director of the Department of Liquor Control. Okabe: Commissioners, you have anything? Greenwell: Thank you, Andrew. Kouchi: Thank you. RECESSED AT 10: 05 A.M. RECONVENED AT 10: 21 A.M. Okabe: Commissioners, do you have any questions or anything? Morifuji: I do, I have a question, I noticed the majority of the recommendations say that we can call and ask for further information, has anybody from the staff called and asked for further information, that's my first question. Takase: No. Morifuji: The second question I have is I noticed that one applicant has provided all these answers in the written form, is he going to be here for the interview? Takase: As far as I know, yes. Morifuji: Thank you. Okabe: Any other questions before we call the next candidate? MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 14 OF 35 Taniguchi: Okay, so my question was on one of the applicants, the reference letters were written to the County of Kauai. So, my question would have been, if I could ask the person directly, did you get permission to use the same letter you know for this or not? You know, and why didn't you? I would ask them, why don't you make one for County of Hawaii too? But the thing is, those two are from the current Director and the previous Director. So, you know it's kind of weird, yeah? So, to me I think that would be one question I would ask at the regular interview because it doesn't pertain to anybody else. Takase: So, I did write Steve a letter, I also wrote Andrew a letter too. They didn't seek my permission but it's okay, I kind of stand by what I said in that letter. Taniguchi: It's just something that, why was it included in the packet if it's written to somebody else? So, is that part of our Department that did that, or was it the person who submits all that? Takase: No, they submit whatever they want, take them for what they're worth. Okabe: Commissioners, do you need anymore time to look at the application? There was no response by the Commission. Okabe: Hearing none. (10: 24 AM) 2. Interview Candidate Stacie Waltjen, Liquor Control Licensing Officer, for the position of Director of the Department of Liquor Control Okabe: Unless otherwise noted on the agenda, today's interviews and hiring process are anticipated to be conducted in open session. To the candidate, if any of your responses to an interview question will include information you consider private and wish to keep confidential, please inform us of the general nature of that privacy concern before answering the interview question. The Commission will then determine whether the executive session may be appropriate. Before we move onto the first question, you can state your name for the record. Waltjen: My name is Stacie Waltjen, and I am currently the Liquor Licensing Officer for the Department. Okabe: No. 1, what motivated you to apply for the County of Hawaii, Director of the Department of Liquor Control position? MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 15 OF 35 Waltjen: I love my job, and I enjoy what I do, I love working with my co-workers, where we all share the common goal of making sure that our Department is the best that it can be. I enjoy working with people and helping them through this you know, licensing process, and I work with a variety of people from the local community, mom -and -pops, aunties and uncles that come in and their dream is to open a restaurant, and they want to be able to sell alcohol, but you know they don't have the means to maybe hire an attorney, or they hear that the process in itself is very daunting and it's hard. So, my job is to educate them, you know sit them down and walk them through the process and make sure they're aware of what they need to do. And it's very gratifying for me to do that and help them, help these individuals because you know, they're so excited to be able to you know, have a restaurant and be able to serve alcohol. also have great working relationships with attorneys that are hired by businesses to help with this process. I have great working relationships with attorneys on our island and on `O`ahu, and I believe in the purpose of the Department, which is to regulate the manufacturing, distribution, importation, and sale and service of intoxicating liquors. But I also understand that keeping that balance of making sure you know, licensees are successful is also just as important. It's also a great opportunity for me professionally, know that you know they're big, big shoes to fill but I'm up for the challenge. Okabe: If you were in our position, why would we hire you? Waltjen: I'm highly knowledgeable and experienced in all aspects of liquor licensing. ran the Licensing Division by myself for the past six years, so I'm very familiar with what that process is from start to finish and everything in between. I have a comprehensive understanding of our local rules and regulations, which is the Commission rules, Adjudication Board rules, and the Hawaii Revised Statutes, specifically 281. 1 taught the on and off -premises liquor card classes, I'm organized, know how to prioritize my work, and I'm not a procrastinator. I work well with other County and State agencies, you know in my position I worked with the Planning Department for the zoning approvals, with Public Works for the inspection of their premises, Fire and Health, and I have great working relationships with everybody. exercise sound judgement, I know when a decision can and needs to be made quickly, or when a decision maybe needs a little bit more thought, a little bit more research so we can best assist our licensees while keeping the community safe. I'm a hard worker and I get things done, I have great people skills and the demeanor to work with all types of personalities, which is what I currently do now anyway. I treat everyone fairly and with respect, which is why I do have a great relationship with staff you know, licensees, the business community, and the non -profits that come in and they want to apply for a special one -day license. I practice clear communication, which I believe is very important. I'm flexible and can pivot in situations as needed, and I believe that my legal background and customer service background align perfectly with what it takes to lead this Department. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 16 OF 35 Okabe: What would you consider your strengths and your weaknesses, and what would you do to improve the areas that are not your strengths? Waltjen: So, to build upon what I just mentioned you know, I have integrity, I'm accountable for my actions and my commitments, I have great people skills so I can adapt accordingly to the different personalities that I may have to work with, which think is very important. I know my audience, you know I'm empathetic and I know how to make sound and fair decisions, and I'm always striving to do the right thing. I'm humble, although it doesn't seem like it right now, but I am humble. And you know, I'm comfortable with asking questions but I'm also comfortable with answering and providing input as needed. You know, my belief is that at some point in our lives we all become teachers, but it's always important to remain a student. You know, you're never too old to learn, basically. My weakness besides desserts and chocolates and everything like that is you know, going down rabbit holes and losing focus at the task at hand, which I'm very aware leads to inaction. When I find myself going down that path you know, I will stop, take a step back and look at the bigger picture. Maybe do more research, consult with my counterparts on the other items, just so I don't get stuck in that mindset. Another weakness I have is I feel like I don't put myself in uncomfortable situations which in theory you know, when I think about it, these are the experiences that give me the most growth as a person. So, you know flipping that mental script in my head and not overthinking things, and you know asking these three questions to myself you know, am I hurting myself? Am I hurting others? Am I breaking the law? And if the answers to these questions are no, then sometimes you know diving feet first and just kind of immersing yourself in the experience is something that I should try to do. Okabe: If hired, what do you perceive are your obligations as Director? Waltjen: I see firsthand how Gerald has run this Department at the highest level, and I've been very lucky to have been mentored by him. So, I will continue to run this Department as efficiently and effectively as he has done for the past 15 years, but also keeping in mind you know, making sure that we're always looking for ways to improve and adapt with the times as needed. I understand how important it is to balance effective regulations, but also supporting our licensees, supporting our community because I think that's also very important, we currently do a great job now. With that, continue to implement Gerald's model of you know, being proactive versus reactive, which again has been you know, why our Department has such a great relationship with our licensees and the public. You know to build on what I had mentioned earlier, you folks are aware you know, when applicants come in and they apply for a liquor license, that you know they want to add live music and dancing, part of the process and the requirement is that they notice their surrounding property owners up to 500 feet. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 17 OF 35 And you know, those are the times that you know we may see some letters of protest come in from the surrounding property owners. And, if we see that maybe there's a significant amount, or maybe it might create some kind of problem, we will help to you know facilitate a meeting between the concerned citizens and our applicant to meet before you know, the meeting and have them address any questions and concerns. And a lot of the time it's just providing more information to the citizens concerned, and would say you know 99.9% of the time that meeting is successful. So, by the time it gets to you folks as the Commission at the public hearing, everything has been resolved and everything is you know, on a good level. Also, keeping up to date with what's trending in the liquor industry, you know on the federal level, and on the state level is very important for our Department. So, continue to attend the conferences, the State and National conferences are very vital for our licensees so we can assist them to be successful. Okabe: What are your priorities as soon as you become Director, and what things would you hope to accomplish in the first year? Waltjen: So first off, I will fill my position which is the Licensing Officer position to ensure continuity is very important. So, probably fill it on a temporary assignment while we work towards making that you know, filling that permanently. Meeting with staff as a whole to address any concerns and answer any questions but you know, let them know at this point everything is status quo until further notice. And also letting them know that will want to meet with them individually so I can have open dialogue you know, get a good gauge of where they're at in their job and how they're feeling. And I would also like to send a letter out to the licensees to let them know about what has happened in terms of the transition, but that's probably something that I'll want to work with Gerald to see if we can work together, you know as the Director, about his retirement and then having a new Director to take his place, so we do a transition type of letter. What I hope to accomplish the first year, review existing internal workflow policies and procedures to see if there's any changes to make our Department run more effectively and more efficiently. You know, consulting with staff to get their input, finding out what those changes would look like and then implementing them. I would also like to meet the licensees in person so I can you know, put the face to the name. I know that's a tall task but you know, trying to figure out a way to do that and again, addressing any concerns and questions that they may have and ensuring that you know, under my leadership the Department will continue to run as smoothly. You know, if they have any questions or they need any guidance as usual, they can always come to me or our Department. Okabe: Can you provide for us at least two goals you want to set for the Department, and what are your plans to achieve these goals? MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 18 OF 35 Waltjen: So, one goal is to find ways to improve our services to the licensees and the general public, like building upon our existing web services, so I would ask the staff to see if they have any ideas. But I have one idea in mind where I would want to work towards our Department accepting credit card payments over the phone. Right now, our licensees can make payments of their percentage fees and their renewal fees online but you know, it incurs a 5% service fee on top of the 2.5% credit card fee, so you know trying to mitigate that. And you know, we do have a few of our permits and fees that are not online, such as our transient vessel permits and solicitors' permits. So, in those instances they need to mail us the check before we can issue them their license, so figuring out how we can incorporate that with credit card payments over the phone is something that I'll look to work with Finance on. Second goal would be to focus on the Department, you know trying to figure out, is it building or maintaining the morale within the Department? Because I think that's very important. I'll get a better sense of that I hope once I meet with them one-on-one, get some open dialogue with them. But you know, our Hilo office and our Kona office are on opposite sides of the island, so I do sense that there can be disconnect between the staff. And like any relationship whether personal or professional, you always have to try to figure out ways to have connectivity and growth with this. So, what I would look toward is maybe going back to having in -person meetings between the Kona investigators, the Hilo investigators, obviously Brandon, Administrative Officer and the Licensing Division. So, I think it'll be a great time for us to kind of share experiences, you know ask questions, give updates, just to have that we're all on the same team kind of mentality. Okabe: No. 7, what is the best way to motivate an employee, and why do you believe this method is effective? Waltjen: So, I believe being genuine, empathetic, and flexible builds trust, respect, and loyalty which in turn I believe motivates employees to always try to do their best. Recognizing their contributions and hard work through you know, words of affirmation like giving them praise and recognizing it. It takes little to no effort but it truly goes a long way and you know, you can see just by their expression or their body language when you give them kudos, or you give them acknowledgement and you know it builds them up, yeah. Supporting their professional growth by taking into consideration their suggestions and actually implementing them if it makes sense for the Department's overall goals. But I think doing that gives them a sense of ownership of what their job is and what their purpose is in their job. Empowering them by giving them the tools to be successful and effective in their job is also very important, as well as being supportive and available to them you know, whenever they need to toss some ideas, if they have a question, you know I think that's very important. And I know that these methods work because as a Licensing Officer and supervisor, these are the things that implement as a supervisor to my team members. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 19 OF 35 Okabe: No. 8, tell me about a time when a team you were on got stalled and did not function effectively? Waltjen: Okay, so the one time I can think of where I felt like I was on a team and it wasn't running effectively was when Mayor Kenoi asked me to join his team as the Executive Secretary for the Managing Director and the Deputy Managing Director. And he asked me to join his team about halfway towards his second term. So, that position I would have been there for 2 �/2 years, and this group of people, the team has been together for 5 �/2 years. So, you know it was a rough transition because you know, not only did I have to learn different personalities in this office, you know learn their internal processes and procedures and learn my job. And it actually took me taking the initiative to go outside of the Mayor's Office to the other County agencies and ask for assistance, ask for help just so I can be successful in my job while trying to ease my way into this team that has been together for 5 �/2 years, you know without coming across as a know-it-all, or you know someone who's just trying to negate what they had in place. So you know, it was a rough start but as I mentioned before you know, I'm a hard worker and I'm not going to quit, and I certainly wasn't going to fail, you know, Billy asked me to come, he trusted me to do the job. So, I would say for the first 3 �/2 months on the job, you know I had this constant mantra running through my head, you know, "It's showti me, Stacie, like let's go, Stacie", just kind of giving myself words of affirmation too so I don't lose what the purpose of why I was there, which was to help Billy, yeah. It was a rough start but I learned my job, I proved myself, I gained their respect and I made lifelong friends. So, I'm very thankful that Mayor Kenoi gave me that opportunity. Okabe: No. 9, as Director of the Department of Liquor Control, it would be important to stay current in changes in government oversight, industry and the marketplace. What actions would you take to stay informed and involved, and what role does the Commission have in the scheme of things? Waltjen: So, to stay informed and involved I will continue to send staff, Commission members, and Board members to the State and National conferences such as the NLLEA (National Liquor Laws Enforcement Association), which is National Liquor Laws Enforcement Association, NABCA (National Alcohol Beverage Control Association), National Alcohol Beverage Control Association, and NCSLA (National Conference of State Liquor Administrators), which is the National Conference of State Liquor Administrators. It's very important for the Director and the staff to stay on top of what's trending you know, on the State and Federal levels. So, being able to attend these conferences are very important so we can you know, create network, ask questions, talk to the expert witnesses, speakers that they bring into these conferences which is very important for gathering information to see what's happening or not happening there, and maybe how it wouldn't happen here, you know. And as a Commission you know, your body, your function is also to approve and deny liquor license applications. So, MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 20 OF 35 it's just as important for you folks to attend these conferences so you have a greater understanding of what comes before you. I also feel like attending these conferences in person is actually also very important because again, you put a face to the name you know, you build your network and you also get to see firsthand how the businesses, the liquor establishments around the conference venue operate and how they do business. Okabe: No. 10, while we are called the Department of Liquor Control, the scope of our enforcement is possibly expanding to include matters such as tobacco, marijuana, and ensuring tax and regulatory compliance. Do you feel that expansion in this scope is appropriate or inappropriate, and why? Waltjen: So for tobacco you know, is currently enforced by the Department Health, State, if the State needed assistance with tobacco enforcement you know, I will consult with Corporation Counsel to see if this is something that we can even do, and if it is you know, find out how as a Department we will be compensated and how we can ensure that our investigators get the proper training to do tobacco enforcement. If you know, they cannot get properly trained and don't get compensated, it's taking away from our main function which is alcohol enforcement, then I don't think it's appropriate. For marijuana, you know medical marijuana is legal and it's enforced by the Department of Health, I do believe it's only a matter of time before recreational marijuana is legalized. If and when it is, I believe that it's appropriate for it to stay with the State because they already have systems set up for enforcement and regulations. And I also think that the State you know, still generates so much revenue that the State would not want to give it up. For the tax and regulatory contributions compliance, so you know, we already I guess enforce the state tax clearances, which when an applicant comes in and they apply for a license, they have to provide their state tax clearance. Licensees also have to provide their state tax clearances when they renew their license. So you know, we will make sure that they have that in order, and if not you know, we have some instances where during the renewal period maybe a licensee for whatever reason can't obtain their state tax clearance. So you know, they've worked with the State tax office to be put on a payment plan, right? We will accept that payment plan in lieu of the state tax clearance because we want to be able to make sure that these businesses can keep running, and keep operating, right? They also have to provide their DCCA (Department of Commerce and Consumer Affairs), which is the Department of Commerce and Consumer Affairs registration when they apply for the liquor license and when they renew their liquor license. So, we just make sure that they have you know, filed their annual filing on time. It's a great way for us to also check to see if there's any changes to the members, managers or officers. And a lot of the times that's when you do notice that there's been a change to the licensees, for whatever reason they failed to let us know. So then, we'll contact them to let them know that they need to update their officers or managers. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 21 OF 35 Although this is not something we do enforce you know, I do tell applicants that come in to apply for a liquor license, specifically manufacturers, wholesalers, brew pubs, small craft producer pubs licensees, that not only do they need to obtain you know, a liquor license with our Department, but they also have to contact the TTB (Alcohol and Tobacco Tax and Trade Bureau), which is the Alcohol and Tobacco Tax and Trade Bureau, to get their federal permits and the State of Hawaii, Department of Taxation to get their state permits. So you know, I will make sure that we have these permits on file before we issue the liquor license, but it's not necessarily something that we enforce. Okabe: No. 11, what kind of programs would you implement, perpetuate and/or expand upon to assist in fostering programs to address underage drinking prevention and overservice prevention? Waltjen: So, our Department participates in quite a few programs, a few of them this year was the Kea`au High School Senior Day, and their Stay Cool Summer Event. So, for the Senior Day our Department made like this dream board activity where the seniors would come and write out their high school graduation dreams and goals and post it on this board that we had. The purpose of it was like you know, to manifest what they want to do, put it up on this board, and you know we're hoping to encourage them to pursue their post -graduation dreams and goals. The Stay Cool Summer Event was for the 9t" graders to 11 t" graders, and it was just you know, kicking off having an event prior to their summer but you know, our Department organized activities and games which promoted like making good choices, and having them sign like this pledge to you know, not indulge in offline drugs for the summer. We also provide ones to D.A.R.E. (Drug Abuse Resistance Education) so they can continue to have events islandwide, Hilo and Kona. We also provide funding to the Boy Scouts of America Aloha Council, so again they can continue to provide youth mentorship programs you know, with their boy scouts. will continue to support these programs and others and you know, also look to collaborate with other I guess County agencies like Police Department and Prosecutor's Office, even you know the State Department of Health. You know, a few years ago we hired Augie T to produce and star on these server training videos for off -premises and on -premises licensees which is actually part of our liquor card classes that we have twice a month in Kona and once a month in Hilo. And it's great because you know, it's very informative but it has this comedic element to it. So you know, when I used to teach the classes, I would see how people were actually engaged in watching the videos because you know, it's funny. So, looking to having either him, or maybe another local comedian, maybe we do this video just to make sure that we're up to date with all the changes, or just making other videos just so we can have that for our Department. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 22 OF 35 Another thing I saw just recently actually was, I was walking through the Prince Kuhio Plaza, you know how they have like the mall directory in the middle of the mall? You know, they have like these display boards that have like advertisements and some had some positive messages. So I thought you know, what a great thing that maybe we could figure out to have some you know, positive messages talking about underage drinking because you know, there's a lot of young kids and high schoolers that hang out in the mall, so you know maybe doing something like that might be good. Okabe: Can you give me an example of a specific occasion on which you conformed to a policy or a law which you did not agree? Waltjen: Yes, so you know this past September the Council passed a bill where it made it mandatory for on -premise liquor license establishments to carry two doses of naloxone nasal spray, and it has to be visible in a place where you can see it, and it's in a location that employees know where it's at. And also, you have to have at least one employee working that knows where the naloxone is and how to administer it, and if not you may be issued a citation. And you may be issued a fine of $500.00, which you know I agree that it's a good thing to have the naloxone narcan onsite, but I don't agree that the fine, I don't think $500.00 is reasonable. But with that being said, you know it is a law, so again as a Department, we will make sure that our licensees know and again adopt that mentality of being proactive versus reactive you know, answering their questions you know. When the investigators go and they do their checks you know, have them again give a friendly reminder to the licensees about this particular bill that passed. Okabe: No. 13, the Department strives to maintain positive work relationships with licensees and the business community. What will you do to perpetuate and enhance these relationships in the future? Waltjen: You know, Gerald as we all know has led this Department at the highest level, so I will continue to perpetuate all the things that he has put in place. You know, be a leader that's fair and caring of others, being innovative, thinking outside of the box when making a decision or when you're trying to help a licensee get something accomplished. Keeping an open mind to things, and you know a lot of the times our licensees will actually come to us you know, hey I want to be able to do X,Y, and Z, but I want to stay compliant, how can I do this? You know, our job is to help them figure it out so they can have this event, and they can do a service to the community, but also being compliant. Balancing our Departments purpose while also maintaining and ensuring that our licensees are successful, because at the end of the day their success is our success. And treating everyone with respect you know no matter what, no matter who, licensees, members of the public, you know people who call to complain about maybe something they've seen or a licensee, but you know always remain professional and respectful. So, to enhance these relationships, I will you know go out of my way to let the licensees know or make sure that they feel supported by the Department. And you know that maybe after they had an event, like giving them a call, finding out how it went, you know MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 23 OF 35 any questions they had or maybe stopping by their premise and just kind of following up and checking on them. Okabe: Do you have anything to add? Waltjen: No, I do have copies of my resume, I don't know if you folks need them but I'm sure you have it? Okabe: Yes. Waltjen: Yes, I just want to thank you guys for letting me speak and hearing me out, thank you. RECESSED AT 10: 57 A.M. RECONVENED AT 11: 02 A.M. (11:02 AM) 3. Interview Candidate Stephen Frendo, Liquor Control Investigator III, for the position of Director of the Department of Liquor Control Okabe: For the record, can you please state your name? Frendo: My name is Stephen Frendo, Liquor Investigator 111, Liquor Control West Hawaii. Okabe: Unless otherwise noted on the agenda, today's interviews and hiring process are anticipated to be conducted in open session. If any of the responses during the interview questions will include information you consider private and wish to keep confidential, please inform us of the general nature of the privacy interest concern before answering the interview question. The Commission will then determine if an executive session will be appropriate. Do you have anything? Frendo: No. Okabe: Okay, we will conduct the interview questions. The first question will be, what motivated you to apply for the County of Hawaii, Director of the Department of Liquor Control position? Frendo: Initially, I was hoping for that position with Kauai County, prior to that I did apply to let you know, I did apply at a couple other counties for the same position. With the Kauai County one, I didn't realize Director Takase was gonna retire. There were also other people encouraging me to go for the position. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 24 OF 35 Okabe: If you were in our position, why would we hire you? Frendo: I feel I bring a lot of experience both from the private sector and the industry side, and with my 21 years with the Department, I feel I can offer what I have is experience with rapport, and relationships with the different entities that affect the Department itself, the outside agencies, the different private agencies, public agencies. And I always look for a continuous improvement on the way the processes are in place, try to look for improvement. Okabe: What would you consider your strengths and your weaknesses, and what would you do to improve the areas that are not your strengths? Frendo: So my strengths are again like I said, I'm strong with public rapport with licensees and the general public, different agencies, federal, state, and county. One of my downfalls is I have this style of working, or my style of getting anything done just to make sure it gets done, and a lot of times I take on more than I can chew, I take on more rather than assigning it out. I've been working on delegation to subordinates, different investigators now that I have a full staff on that side, I have people to help me. Okabe: If hired, what do you perceive are your obligations as the Director? Frendo: Primarily for the Director is holding up the integrity for the Department, whether it's through enforcement, regulation, and education. Different aspects of that would be responsible for developing policies to put in place that we can relate with the general public, with the industry, like the different staples I put in my statement there. Different you know, community relations, trying to get that to make sure that the Department is involved in something that people, the general public and the industry knows that we are involved, maybe we have a responsibility to show them that. Okabe: No. 5, what are your priorities as soon as you become Director, and what things would you hope to accomplish in the first year? Frendo: My immediate priority would be assessing the Department itself both internally and the relationships with the licensees as far as, if we're efficient in what we're doing. Yeah, we've had good standards set by our predecessors, but as far as if we're holding up those efficiencies. If we're not doing something that we're possibly able to do, like instead of having people specialized in something in the office, having something brought in. Some training or cross -training, and people can you know, like when somebody goes on vacation, that person can step up to the tasks and they'll know the information rather than just one person. Okabe: No. 6, can you provide for us at least two goals you want to set for the Department, and what are your plans to achieve those goals? MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 25 OF 35 Frendo: First, I would start by increasing the compliance with the rules and regulations across all licensees, focusing on training and education to prevent the regular violations. believe a lot of times the educational aspects of it is, I call it pro -education of enforcement rather than just heavy-handed enforcement. The educational side of it would involve regular outreach resources that I could use. would aim at strengthening the collaboration with the local businesses as to how do we get involved with them, or how the Department can help them in their enforcement and their day-to-day operations. And again, I'd like a cross -dialogue, interactive dialogue with the licensees rather than okay, where the Department is with this? You know, do you have any input on this? What do you feel? Do you feel that we're doing something that's appropriate? Do we need to do something? Okabe: No. 7, what is the best way to motivate an employee, and why do you believe this method is effective? Frendo: I've always believed in my management role is to recognize the employee for their accomplishments. The other one, it's not necessarily monetary, can be verbal recognition, direct communication of what's expected of them you know, directly talking to them, making sure they know you have clear objectives and what their job positions are, what they're able to do. The other one is providing them resources so that they can improve, or they can go back and look at if they need something rather than being stuck at that level. And then go back and look at the resources out there and get the next -level help and information needed. And then again, to me employee satisfaction comes when they're happy with what they do and they want to come to work. Okabe: No. 8, tell me about a time when a team you were on got stalled and did not function effectively? Frendo: So, this I put in here in my statement, this doesn't apply when I was with Liquor Control, I was in a previous role. In my resume, I have my role as a General Manager for Anheuser Busch, Budweiser. And to be specific on it, we had a statewide program that's called, some of you if you were ever into retail essentially, would have what they call a self -set or reset program which one of the chain stores like 7-Eleven or Foodland, wanted to get involved. So, we were trying to get a unified self -set to run statewide all at one time. And all it was, was a blanket assignment, so each island had implemented their locations, who, what, when, where, and that happened. And it basically stalled because nobody knew what the final objective was. You know, and unfortunately it was to get the self -sets done. But then as far as this, I regrouped my end and then I talked with the Maui guys, and we had basically set it up, so it was a computer program that was sent back and forth. And so, we're going to run this program for each of these stores based on linear feet and find some way to give each of the location's clear objectives. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 26 OF 35 Okabe: No. 9, as Director of the Department of Liquor Control, it would be important to stay current in changes in government oversight, the industry and the marketplace. What actions would you take to stay informed and involved, and what role does the Commission have in the scheme of things? Frendo: I would stay informed of course and through that, I would establish maintaining regular channels of communication with industry stakeholders, attend relevant conferences and review legislative updates regularly. I would also ensure that our Department has a proactive approach for monitoring trends in the marketplace, certain trends that are taking place whether it be liquor or liquor related, or different things coming into the liquor industry. The Commission itself leads the Department in a proactive approach in monitoring the trends in the marketplace, a key role in the oversight of the Department of Liquor Control policies. I would ensure that we work proactively with the Commission and implement effective regulations. Okabe: No. 10, as while we are called the Department of Liquor Control, the scope of our enforcement is possibly expanding to include matters such as tobacco, marijuana, and ensuring tax and regulatory compliance. Do you feel that expansion in this scope is appropriate or inappropriate, and why? Frendo: Okay, it kind of ties into the previous question there, expanding our scope of the Department involved would be tobacco, marijuana, and tax regulation compliance is appropriate because it's aligning with the changes in public health, and we're all about public health and safety, in fact our mission statement. However, because of the limited ties of our Department, it would be necessary to assess the Department's abilities to take on those responsibilities. We would have to, there would have to be something set up to give us so that we could set a road map so we could get something in place, that okay we just can't jump into regulation of tobacco tax and marijuana at the staff level we have or our capacity as far as the administrative side. But we would have to you know, get something, a clear directive from them, from the regulatory agencies as far as what they're expecting. Okabe: Okay, No. 11, what kind of programs would you implement, perpetuate and/or expand upon to assist in fostering programs to address underage drinking prevention and overservice prevention? Frendo: Right now, we do have some programs in place, I'd like to expand on those again, making it more public or making it more noticeable on what the Department is actually doing, yeah. I know every once in a while you see public ads come out for public stay safe spots that come out on media that say you know, the four County's Police Departments, or the four Liquor Control's, or something like that, and work like a partnership almost like the Police Department has with the local schools. I'm not saying we're going to put in representing the schools like they have a school safety officer or something like that, but something where there's a resource that we can address the schools every once in a while, address the schools where we can go in and do the programs or talks or you know, training programs. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 27 OF 35 Okabe: No. 12, can you give me an example of a specific occasion on which you conformed to a policy or a law which you did not agree? Frendo: I have a very high respect for law, and I fear two things, God above and the law, I'm not going to go against anything that's in place. I may question it, I want to know why it's there, but I'm not going to go against it. I'll work with the system whatever it is to maintain the policy and procedure requirements. At the same time, if there's improvement, while I advocate if there's an improvement, I can remain on that policy. Conforming to policies allows you to respect the legal existing framework. Okabe: No. 13, the Department strives to maintain positive work relationships with licensees and the business community. What will you do to perpetuate and enhance these relationships in the future? Frendo: I believe at this point I have high public relationships with the licensees, general public, and fellow employees. I would focus on building and holding forums with the licensees more, I don't want to say more frequently but frequently enough to say that okay, Liquor Department is involved and they're coming out and seeing us quarterly, or we're having these forums that you know, we can get involved in quarterly working with the Department rather than them just coming out and telling us things. I'd offer training programs, full guidance on compliance, whether it's overservice, service to underage, you know things like that, different training programs. We do have some resources available through, I'm not too sure as far as some of the national organizations, but we do have some resources available through NLLEA (National Liquor License Enforcement Agency) and things like that where we can implement programs on the local level and State level. And again you know, collaboratively make adjustments where needed, there's something that's needed because of the enforcement side feeling heavily handed you know, then we slide to the educational side. Because our goal is compliance, it's not going out and fining everybody you know for everything they do, and for making a wrong left turn or something, so we're trying to get the licensees in compliance. Okabe: Okay, that basically concludes all the questions, but do you have anything to add or anything else you want to say? Frendo: I just wanted to say that you know, thank you for allowing me to come in front the Commission for the selection process, I feel that if hired I would be a benefit to the Department. It's again, I'm bringing my experience, I do have a valid financial background with one of the largest wholesalers that I used to work for prior to my employment here, and then again 21 years with the Department, July makes 22 years. As far as my interactions with the licensees, I don't know if you got a chance to read the letters of recommendation, a lot of those I'd like to clarify something. You notice there were different addresses or different commissions on the top because of my prior application somewhere else that my letters of interest went to, a lot of those were not solicited. What I'm saying is, I didn't go up to people and say hey you know, can MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 28 OF 35 you write me a letter of recommendation? What happened was it came out in the conversation recently, about half of them came out in the conversation where, "Hey you know, when you going retire?" I said I'm thinking about it, but you know, if you retire, who's gonna take over? You know, from my side I really don't know, I can't answer you, but then I mentioned that you know, I might think about putting in learning that Director Takase is retiring, put in for the position. And they said, "Can we do anything?" You know, they're offering me can they do anything, I said you know if you can, if it's ethically correct, you're not going to get into any trouble with anybody in the higher ups, if you can, great. So, those letters were submitted, and I submitted them to the Department as I got them. Other than that, I thank you again for taking the time to listen to my message and my interest in the position. Okabe: Thank you. Okay Commissioners, I'd like to take a five-minute recess, and then after that we're gonna come back and we're gonna I guess do the selection of the new Director if you guys are ready, okay? RECESSED AT 11: 24 A.M. RECONVENED AT 11:29 A.M. (11:29 AM) 4. Referral for Executive Session Regarding the Selection of the New Director of the Department of Liquor Control The Commission anticipates convening an executive meeting pursuant to Sections 92-4, and 92-5(a)(4) of the Hawaii Revised Statutes, as amended, for the purpose of consulting with the Commission's attorney on questions and issues pertaining to the Commission's powers, duties, privileges, immunities, and liabilities, as it relates to the selection of the new Director of the Department of Liquor Control. A 2/3 vote of the members present is necessary to hold an executive meeting, pursuant of Section 92-4(a) of the Hawaii Revised Statues, as amended. Okabe: I'd like to ask for a motion to enter into executive session pursuant of HRS (Hawai'i Revised Statues) 92-4 and 92-5(a)(4). MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 29 OF 35 Greenwell: This is Greenwell, I'll make the motion to enter into executive session pursuant to HRS (Hawai'i Revised Statues) 92-4 and 92-5(a)(4). Nishimoto: Commissioner Nishimoto, second. Commissioner Greenwell moved to enter into executive session; Seconded by Commissioner Nishimoto. Okabe: Any discussion to the motion? There was no discussion by Commissioners. Okabe: Hearing none, is there any public testimony in regard to that? There was no public testimony. Okabe: Hearing none, all those in favor to go into executive session, please say "Aye." The Commissioners voted "Aye." Okabe: All opposed "Nay." There was no opposition by Commissioners. Okabe: Okay, we are in executive session. The motion was carried unanimously. RECESSED AT 11: 31 AM - COMMISSION ENTERED EXECUTIVE SESSION LIQUOR COMMISSION WAS IN EXECUTIVE SESSION RECONVENED AT 11: 41 AM - COMMISSION EXITED EXECUTIVE SESSION Okabe: Okay, we are back in open session. We would like to have Deputy Corporation Counsel please provide the executive session report pursuant of HRS (Hawai'i Revised Statutes) Section 92-4(b). MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 30 OF 35 Takamura: Pursuant to HRS (Hawai'i Revised Statutes) 92-4(b), this is the executive session report for Item No. V. 4., regarding the executive session for the selection of the new Director of the Department of Liquor Control. It was held pursuant to HRS (Hawai'i Revised Statutes) 92-4 and 92-5(a)(4) for the Commission to consult with me, the Board's attorney on questions, issues pertaining to the Commission's powers, duties, privileges, immunities, and liabilities, as it related to this item. The discussions held therein are not subject to disclosure, as would tend to frustrate the purpose of the executive session, and there was no final decision made in the executive session. So, now we're back in open session on Item No. V. 4. Okabe: Okay, at this time, Commissioners, for discussion purposes of the selection of the Director, so if any comments or anything you would like to say? Morifuji: Morifuji, I'd like to thank all three applicants for applying for the position, personally it's very difficult decision for me because I know all three, but I based my decision for Stacie Waltjen because of her composure and her experience in licensing. That licensing aspect of the Director's job I think is very important. Enforcement is also but the licensing is to me the most important part of the position, and that's my basis for my decision for Stacie. I'd also like to thank Andrew and Steve for applying, that's my decision. Okabe: Okay, anymore comments? Ventura: Yeah, again thank you all three candidates, I think we had three outstanding candidates to choose from. I think Andrew, what you've done for compliance with the licensees, creating systems for compliance, accountability and so forth, I think is very admirable. Stacie, very good with licensees, I like the work you've done with licensees, helping them to succeed. Like you said, being proactive, trying to find some middle ground between citizens and licensees when there are problems, I think that's not easy to do, yeah and it requires a very unique skill. Stephen, you're a very good combination of the two of them, that having all your experience in the private sector and also in the public sector with the County. I based my decision similar to Mr. Morifuji on what you know is most beneficial for the licensees, which will in turn be also what is best for the communities. And my selection would be for Stacie Waltjen . Thank you. Nishimoto: I guess I'll go next, Commissioner Nishimoto. Again, thank you very much, it is a very tough decision, I'm very impressed with what each candidate brought to the table and what each of you had to say. I'm very pleased to see that everyone has similar values that we share as a Commission in terms of being proactive, open communication, and just kind of working forward, and being an advocate for the community that we work with, I do have certain things that I like about each one. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 31 OF 35 Andrew, I like the data -driven and measurable outcomes that you talked about, I'm a teacher by practice so I like to rely on data and measurable outcomes, I appreciate that very much. Stacie, I am very impressed with the knowledge that you have, the practical ideas and applications that you want to bring forth, and I feel that it was very apparent in the testimonies that were provided. You have already established a very positive working relationship with everyone that you will be working with. Steve, there's just a wealth of experience that you bring to the Department. I did appreciate the fact that when you said the letters of recommendation that you had were not solicited but were offered to you, that is very impressionable you know, what you brought to table. In my review of everything that I've listened to, my support would be to choose Stacie as the next Director as I feel that she would bring the best of everything to continue the legacy that the Department has established and wants to continue to grow in a very positive manner. Greenwell: It was obvious to me that both inspectors know their job, both inspectors seem to be very enthusiastic about the law enforcement and what can be done to support education for outreach programs, going to the community, going back to the distributors and so forth. Andrew seems to have a good grasp on what an inspector or an individual needed to do. Stacie had a good grasp on the licensing, she excelled on licensing because that is where her training has probably been more so than in the inspection category. Stephen with his expertise, experience and 21 years on the job, he seemed to understand very much of how the intricacies of public relations work at the counter, at the bar, at the licensee's place of business. Thank you all for applying, with that I'm supporting Stacie. Taniguchi: It was very difficult because as you know, this is a new process. I've been interviewing people for decades and personally I don't like the idea of giving out questions before the interview. You know, I just don't like it, I think it's wrong. We were advised that you know, we had to conform to certain things and even in open session, think we should be interviewing everybody privately, I wouldn't want to be interviewed publicly. So, based on that, everybody had the questions, so obviously, how do we evaluate it? Very difficult because you know, I mean everybody has qualifications, I mean you know you all have the minimum qualifications. So, basically what I had to do was I had to go based on how the applicant responded to all the questions which you already had ahead of time anyway. And was it natural, was it articulated clearly? I think everybody had good points, but I think the overall articulation of the answers for me was Stacie. She did a good job on that, everybody did a good job, but I think Stacie was the most natural and everything came out really, really clearly, and succinctly. And you know, the new ideas as well as things to continue Gerald's legacy as well, I think made me sway towards Stacie as well, but I wanted to thank all three of you for applying. Nakashima: Nakashima, no comments. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 32 OF 35 Okamoto: Commissioner Okamoto, thank you all applicants. I thought all of them were great and kind of like the opposites, it was for me how you guys performed in the interview. Stacie was more fluent and very controlled, kept me and everybody engaged in the whole applicant process, so I voted for Stacie. Okabe: Well, as Chair you know, I want to thank you for applying because anytime you are applying for an executive position, you have to have the minimum qualifications, and that wasn't the primary factors in your guys interviews. I think when I took notes in regards to all of the applicants, I felt that upholding the law was very evident in all of your responses and making sure that we follow the process and guidelines. But I think that going to the interview I looked at certain words, it was integrity, upholding the Department, looking at I guess you mentioned about the legacy in regards to Gerald. You know, as far as the Commission is concerned for the Big Island, we are at the top compared to any island, and many of you mentioned that. And I think that talking about the climate within the office was very important. Ideas of schools trying to get different kinds of programs. One thing that I thought was very interesting was about Stacie's comment about trying to streamline the process of paying fees to the MasterCard. In regards to Stacie, she had a lot of experience outside of this particular Department working in the Mayor's office, working at Corporation Counsel. All of you had very good recommendations from people outside in the community. And I would commend you for that but I think as a vote on this particular new Director, I hope that all of you would be able to support the new Director, and I'm sure the staff will also support the new Director as well. So, I think the general climate, the general feeling of this ohana, the purpose of the Liquor Commission in the community in fostering positive relationships with the licensees is very important, and that was very evident in the discussions. Okay, so if there's no other questions, I'd like to entertain a motion from the Commission so we can move forward to select a new Liquor Director. Morifuji: This is Morifuji, I make the motion to appoint Stacie Waltjen as the new Director of the Department of Liquor Control effective January 1, 2026. Nishimoto: Commissioner Nishimoto, second. Commissioner Morifuji moved to appoint Stacie Waltjen as the new Director of the Department of Liquor Control effective January 1, 2026; Seconded by Commissioner Nishimoto. Okabe: Any discussion? There was no discussion by Commissioners. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 33 OF 35 Okabe: Hearing none, any public testimony? There was no public testimony. Okabe: Hearing none, roll call vote. Sayles: Vice Chair Greenwell. Greenwell: Aye. Sayles: Commissioner Morifuji. Morifuji: Aye. Sayles: Commissioner Nakashima. Nakashima: Aye. Sayles: Commissioner Nishimoto. Nishimoto: Aye. Sayles: Commissioner Okamoto. Okamoto: Aye. Sayles: Commissioner Taniguchi. Taniguchi: Aye. Sayles: Commissioner Ventura. Ventura: Aye. Sayles: Commissioner Yadao. Yadao: Aye. Sayles: Chair Okabe. Okabe: Aye. Sayles: You have nine (9) ayes. The motion was carried unanimously. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 34 OF 35 Okabe: Congratulations, Stacie. Would you like to say a few words? Waltjen: Thank you to Frendo and Andrew as well because throughout this whole process you know, everybody remained professional and friendly, it never came to the point where it was adversarial or you know, we weren't getting along, so thank you to Frendo and thank you to Andrew. Thank you to the people that came and supported me to provide their support you know, Craig showed up this morning, Marcia, and Jenn, so thank you for doing that. And you know lastly, thank you to the Commission for entrusting me with this big responsibility, and you know, I take it very seriously and I'll do you folks proud. And I'll continue to work for the community and the licensees to make sure that you know, we're constantly doing a good job and keeping that balance up, making sure as a Department we're following all of our rules and regulations but also supporting the needs of our community. IX. Announcements (11:59 AM) Meetings of the Liquor Commission January 8, 2026, 10:00 A.M., Hilo Meeting Room, Department of Liquor Control, Hilo Lagoon Centre, 101 Aupuni Street, Unit 230, Hilo, Hawaii. February 5, 2026, 10:00 A.M., Kona Meeting Room, Department of Liquor Control, 75-5706 Kuakini Highway, Suite 107, Kailua-Kona, Hawaii. X. Adjournment Meeting adjourned at 11:59 A.M. Stacie T. Waltjen Director The December 15, 2025 meeting minutes were approved as circulated, via email on January 29, 2026, by the Liquor Commission of the County of Hawaii on February 5, 2026. MINUTES - LIQUOR COMMISSION MEETING SPECIAL MEETING - MONDAY, DECEMBER 15, 2025 - HILO PAGE 35 OF 35