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HomeMy WebLinkAbout2018-02-01 Liquor Commission MinutesCOUNTY OF HAWAII DEPARTMENT OF LIQUOR CONTROL LIQUOR COMMISSION FEBRUARY 1, 2018 WEST HAWAII CIVIC CENTER, 74-5044 ANE KEOHOKALOLE HIGHWAY, BUILDING B, 2ND FLOOR, KAILUA-KONA, HAWAII I. Call To Order The meeting was called to order by Chair Art Taniguchi at 10:00 A.M., in the Meeting Room, Department of Liquor Control, West Hawaii Civic Center, 74-5044 Ane Keohokalole Highway, Building B, 2nd Floor, Kailua-Kona, Hawaii. The following were present and constituted a quorum: Commissioners: Art Taniguchi, Chair Shelby Nahale-a, Vice Chair Warren Arakaki, Commissioner David Greenwell, Commissioner Stephen Lopez, Commissioner William Takaba, Commissioner Absent and Excused: Michael Hughes, Commissioner Claude Onizuka, Commissioner Others Present: Gerald Takase, Director Brandon Gonzalez, Administrative Officer Craig Masuda, Deputy Corporation Counsel Gail Fujimoto, Licensing Officer Stacie Waltjen, Licensing Tech I Dorsi Lim, Secretary to the Board & Commission Taniguchi: First of all, let us introduce ourselves starting from Brandon. Gonzalez: Good morning, Brandon Gonzalez, Administrative Officer. Takaba: Bill Takaba, Commissioner. Greenwell: David Greenwell, District 9 Commissioner. Lopez: Steve Lopez, Commissioner. Nahale-a: Aloha, Shelby Nahale-a, Commissioner. Masuda: Craig Masuda, Commission Counsel. FEBRUARY 1, 2018—LIQUOR COMMISSION MINUTES 1 Taniguchi: Art Taniguchi, Commissioner. Arakaki: Warren Arakaki, Commissioner. Takase: Gerald Takase, Director. Fujimoto: Gail Fujimoto, Licensing Officer. Waltjen: Stacie Waltjen, Licensing Tech. Lim: Dorsi Lim, Secretary to the Board and Commission. Taniguchi: Thank you. I'd like to ask everyone to put your phone either on silent or vibrate. I appreciate it. Starting with the first item of business, Approval of Minutes. II. Approval of Minutes Taniguchi: The December 7, 2017, minutes were circulated via email. Can I have a motion to accept? Nahale-a: So move. Takaba: Second. Ms. Nahale-a moved to approve the December 7, 2017, Liquor Commission minutes as circulated; seconded by Mr. Takaba. Taniguchi: So moved and seconded by Bill. Any discussion? There was no discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 2 III. Approval of Addendum and/or Supplemental Agenda Taniguchi: Thank you very much. We have addendums to the Agenda. Pursuant to Section 92-7, Hawaii Revised Statutes, as amended, Items 1, 2, 3 and 4 are proposed amendments to the agenda and have been determined not to be of reasonably major significance nor does it affect a significant number of persons, and are proposed for placement on the agenda by two-thirds vote of the Commission. 1. Public Hearings, CHANGE paragraph to read: 1. Application No. 17-02 (10:00 A.M.) Kealakekua Ranch, Ltd., dba K -Ranch Grill; for an original Restaurant General liquor license, Category 82, located at the Kealakekua Ranch Center, 82-6066 Mamalahoa Highway, Unit E, Captain Cook, Hawaii, TMK: 8-2-001:125. 2. Preliminary Hearings, ADD new paragraphs to read: 2. Application No. 17-21 (10:00 A.M.) Kailua-Kona Restaurants, Inc., dba Pancho and Lefty's Cantina & Restaurante, for a Change of Location to its Restaurant General liquor license, Category 82, from the Kona Marketplace Shopping Center, 75-5719 Alii Drive, Unit No. A-201, Kailua-Kona, Hawaii, TMK: 7-5-007:016, to the Kona Marketplace ll, 75-5725 Alii Drive, Suite B-201, Kailua-Kona, Hawai`i, TMK: 7-5-007:023. 3. Application No. 17-22 (10:00 A.M.) Kohala Village Hub Pub & Shop LLC, dba Hub Pub, pursuant to Rule 3-1-R (9) of the Rules and Regulations of the Liquor Commission, under its Small Craft Producer Pub liquor license, Category 82, requests to add a second location to manufacture beer and wine, currently held by Kawaihae Spirits, Inc., dba Blue Dragon, located at Kawaihae Village, 61-3616 Kawaihae Road, Kawaihae, Hawai`i, TMK: 6-1-002:064 and 088. 3. New Business, CHANGE paragraphs to read: 5. Dragon Roll LLC, dba Tunaichi. Pursuant to Rule 4-2-M of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, requests permission to extend the time issuance of its Dispenser General liquor license, Category A, located at 75-5699 Alii Drive, Suite F, Kailua-Kona, Hawai`i, for an additional six months from October 6, 2017, to and FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 3 including April 6, 2018, by letter dated and received January 12, 2018. 7. Olu Kai, Ltd., dba Huggo's, ratification of Application for Alteration Permit to remove existing fenced section, pursuant to Rule 3-2-D-1 of the Liquor Commission Rules and Regulations, to its Restaurant General liquor license, Category 82, located at 75-5828 Kahakai Road, Kailua-Kona, Hawaii submitted on January 12, 2018, approved by Director Gerald Takase on January 22, 2018. 4. New Business, ADD new paragraphs to read: 9. Holualoa Enterprises LLC, dba Kona Style (on board vessel "Noa Noa'), ratification of Application for Outside Storage Permit, for a warehouse, located at 74-381 Kealakehe Parkway, #D, Kailua-Kona, Hawai`i, to its Tour or Cruise Vessel liquor license, Category B1, approved by Director Gerald Takase on January 24, 2018, effective February 1, 2018. 10. Holualoa Enterprises LLC, dba Kona Style (on board vessel "Noa Noa"), ratification of a sale and transfer of the Tour or Cruise Vessel liquor license, Category B1, currently held by Kona Snorkel and Sail, LLC, dba Kona Style (on board vessel "Noa Noa"), moored at Kailua Bay Pier, Kailua-Kona, Hawaii, final inspection completed on January 25, 2018, approved by Director Gerald Takase on January 26, 2018, effective February 1, 2018. 11. Kim Mukai LLC, dba Kim's at Hilo Muni, ratification of Application for Temporary Increase in Licensed Premises, to its covered patio fronting the Restaurant, for a special event held on January 27, 2018, received on January 26, 2018, approved by Director Gerald Takase on January 26, 2018, to its Restaurant General liquor license, Category B1, located at 340 Haihai Street, Hilo, Hawaii. 12. Volume Services, Inc., dba Centerplate; Centerplate - Hawaiian; and Centerplate - Aloha, ratification of Personal History and Affidavit for Marc Allen Blass, as Treasurer, effective December 26, 2017, received on January 25, 2018, approved by Director Gerald Takase on January 25, 2018, to its Dispenser General liquor licenses, Category A, located at Hilo International Airport, 2450 Kekuanao`a Street, Hilo, Hawaii; Ellison Onizuka Kona International Airport, Hawaiian Airlines Terminal, 73-200 Kupipi Street, Keahole, North Kona, Hawai`i; and Ellison Onizuka Kona International Airport, Aloha Airlines Terminal, 73-200 Kupipi Street, Keahole, North Kona, Hawaii, respectively. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 4 13. Special Licenses issued for ratification q. Application No. SP -17-77, Kahilu Theatre Foundation, dba Kahilu Theatre Foundation, for a Special Beer and Wine liquor license, to be held at the Kahilu Theatre, located at 67-1186 Lindsey Road, Kamuela, Hawaii, on February 2-4, 9-11, 15, 17-19 and 24, 2018. Nahale-a: Move to approve addendums to the Agenda. Takaba: Second. Ms. Nahale-a moved to approve the addendums to the Agenda; seconded by Mr. Takaba. Taniguchi: Moved by Shelby, seconded by Bill. Any discussion? There was no discussion from the Commissioners. Taniguchi: Can we have a roll call vote? Lim: Commissioner Arakaki? Arakaki: Aye. Lim: Commissioner Greenwell? Greenwell: Aye. Lim: Commissioner Lopez? Lopez: Aye. Lim: Commissioner Nahale-a? Nahale-a: Aye. Lim: Commissioner Takaba? Takaba: Aye. Lim: Chairman Taniguchi? Taniguchi: Aye. Lim: Chairman, we have 6 Ayes, 0 opposed, the Ayes have it. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 5 IV. Public Statements on Agenda Items Taniguchi: Thank you very much. Do we have any public statements on the Agenda items? There were no public statements. Taniguchi: Since none, we'll go to Public Hearings. V. Public Hearings Taniguchi: Application No. 17-02, Kealakekua Ranch, Ltd., dba K -Ranch Grill, for an original Restaurant liquor license, Category B2. 1. Application No. 17-02 (10:06 A.M.) Kealakekua Ranch, Ltd., dba K -Ranch Grill, for an original Restaurant General liquor license, Category B2, located at the Kealakekua Ranch Center, 82-6066 Mamalahoa Highway, Unit E, Captain Cook, Hawaii, TMK: 8-2-001:125. Takase: Mr. Chairman, the Applicant has to re -do their Notice to Property Owners. We are waiting for them to notify us when they do it. We will continue it indefinitely until we get more information from them. Nahale-a: Move to continue Application No. 17-02, at a date to be determined. Greenwell: Second. Ms. Nahale-a moved to continue Application No. 17-02, Kealakekua Ranch, Ltd., dba K -Ranch Grill, for an original Restaurant General liquor license, Category B2, located at the Kealakekua Ranch Center, 82-6066 Mamalahoa Highway, Unit E, Captain Cook, Hawaii, TMK: 8-2-001:125, at a date to be determined; seconded by Mr. Greenwell. Taniguchi: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 6 There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. Taniguchi: Item No. 2, Application No. 17-17, Poke N Crab Inc., dba Poke N Crab, for an original Dispenser General liquor license, Category B1. 2. Application No. 17-17 (10:06 A.M.) Poke N Crab Inc., dba Poke N Crab, for an original Dispenser General liquor license, Category B1, located at the Alii Sunset Plaza, 75-5799 AIi'i Drive, Unit C-5, Kailua-Kona, Hawaii, TMK: 7-5-009:030 and 031. Amador Allen Cabudol, Owner, was present. Taniguchi: Is there a representative present? Cabudol: I am Amador Allen Cabudol, Owner of Poke N Crab, Ali'i Sunset. Taniguchi: Have you read the report? Cabudol: Yes. Taniguchi: Any changes to that report? Cabudol: No. No changes. Taniguchi: Can you briefly describe the business for us? Cabudol: It's a seafood restaurant serving poke and crab and some steak. And serving beer and wine. Taniguchi: Director, any report of protest? Takase: Mr. Chairman, the Applicant mailed out 4 of 4 notices within 100 feet, 384 out of 390 within 500 feet, and 2 notices to condominium or cooperative apartment managers. There were 140 properties entitled to protest and there were 12 protests to this application. There are 7 other owners or residents or interested persons that also protested this application. Taniguchi: Do we have any public testimony? There was no public testimony. Taniguchi: Any questions from the Commissioners? FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 7 Lopez: How close in proximity is this Kona Alii to the business? Cabudol: I think it's about 100 feet. Lopez: One hundred feet? Cabudol: One hundred to 500 feet, I guess. Takase: They're outside of 100 feet, but they're within 500 feet. Lopez: Thank you. Takase: I'd like to ask some questions as we do have some members from the Kona Alii and I think they just need to know a little more about his operation to better understand (inaudible). Mr. Cabudol, maybe you can explain a little more about your hours of operation first of all. Cabudol: My hours of operation, if we go to the live entertainment, I'm sorry for the misinterpretation. We only do 6:00 P.M. to 9:00 P.M. for a single performer, like with ukulele and guitar. We serve breakfast, lunch also. Takase: You're applying for a B1, so you won't have dancing allowed. Cabudol: No, we don't have dancing. Takase: As far as entertainment, it will probably be single or small group? And your normal hours will be until 9:00 P.M.? Cabudol: Yes, single. We do karaoke bar, karaoke. Takase: How late will you stay open until? Cabudol: It will be about 10:00 P.M. to 12:00 A.M. Takase: That would be karaoke? Cabudol: Yes. We open seven days a week, so we're not going to go until 2:00 A.M. because everybody will get tired. Takase: Your entire place is enclosed? Cabudol: Closed, air conditioned. Takase: That's all the questions I have. Mr. Chairman, we received some protests from the Ali`i Kai Subdivision and most of them were concerning noise, especially late night noise. It was very similar to the protest that we received for Fumi's Kitchen, if you recall is right across the walkway from this current location. I don't anticipate them to have any different type of establishment, so if he sticks with what he says, I don't think we should have a problem. We met with Fumi's and the Alii Kai Subdivision when their license came up and the residents were satisfied with what he had said he was going to FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 8 do and we haven't had any protest since that. He has complied, so if Mr. Cabudol follows that same representation, I don't think that we should have a problem. Mr. Cabudol, you understand that you can always be called back if you do get noise complaints? Cabudol: Yes. Taniguchi: Commissioners, any questions? I have a question. That was a restaurant, right? That was the Japanese restaurant right across? Cabudol: That was Bistro Yokohama. Taniguchi: It's all enclosed? Takase: Yes. Taniguchi: Wasn't part of Fumi's entertainment going to be outside, too? Takase: Potentially. Taniguchi: This one is all enclosed. I just wanted to double check. I'm looking at the map and that's what it appears to be. Lopez: If I may reiterate just so I can understand? There will be music until approximately 9:00 P.M., an ukulele player and a small group? Cabudol: Yes. Single performers. Lopez: Then from 10:00 P.M. to 12:00 A.M. there would be karaoke? Cabudol: Yes. Lopez: Thank you. Taniguchi: Any other questions? There were no further questions from the Commissioners. Taniguchi: Since none, can I have a motion to close public hearing? Nahale-a: Move to close public hearing. Greenwell: Second. Ms. Nahale-a moved to close the public hearing; seconded by Mr. Greenwell. Taniguchi: Moved and seconded. Any other discussion? There was no further discussion from the Commissioners. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 9 Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. Taniguchi: May I have a motion to approved Application No. 17-17, pending final inspection? Lopez: So moved. Nahale-a: Second. Mr. Lopez moved to approve Application No. 17-17, Poke N Crab Inc., dba Poke N Crab, for an original Dispenser General liquor license, Category B1, located at the AIi`i Sunset Plaza, 75-5799 AIi`i Drive, Unit C-5, Kailua-Kona, Hawaii, TMK: 7-5-009:030 and 031, pending final inspection. Taniguchi: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. Taniguchi: Thank you. VI. Preliminary Hearings Taniguchi: Item No. 1, Application No. T17-20, Ratchanee, LLC, dba Royal Thai Cafe, for a sale and transfer of the Restaurant General liquor license, Category B1. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 10 1. Application No. T17-20 (10:14 A.M.) Ratchanee, LLC, dba Royal Thai Cafe, for a sale and transfer of the Restaurant General liquor license, Category B1, currently held by Chatcharat LLC, dba Royal Thai Cafe, located at the Keauhou Shopping Center, 78-6831 AIi'i Drive, Space Nos. K-2 & K-3, Kailua-Kona, Hawaii, TMK: 7-8-010-040. Ratchanee Hoff, (soon to be) Owner and Chatcharat Chantaraviboon, Owner, were present. Taniguchi: Is there anybody present? Good morning. Chantaraviboon: Good morning. Hoff: Good morning. Taniguchi: Can you identify yourselves, please, and your relationship to the business? Hoff: My name is Ratchanee Hoff, going to be the next Owner. Chantaraviboon: My name is Chatcharat Chantaraviboon, current Owner. Taniguchi: Did you read the report? The application and the report? Hoff: Yes. Taniguchi: Any changes? Hoff: No. Taniguchi: Can you briefly describe your business? Let us know what the business is like. Hoff: We serve Thai food. Taniguchi: Is it a restaurant? Hoff: It's a Thai restaurant. We sell Thai food and serve beer and wine. We open Tuesday until Sunday. Tuesday and Friday open 11:00 A.M. until 9:00 P.M. and weekends we open noon until 9:00 P.M. Taniguchi: Is there any public testimony regarding this application? There was no public testimony. Taniguchi: Since none, Commissioners, do you have any questions? There were no questions from the Commissioners. FEBRUARY1, 2018 -LIQUOR COMMISSION MINUTES 11 Nahale-a: Move to approve Application No. 17-20, if approved public hearing to be held March 1, 2018, in Hilo, Hawaii. Greenwell: Second. Ms. Nahale-a moved to approve Application No. T17-20, Ratchanee, LLC, dba Royal Thai Cafe, for a sale and transfer of the Restaurant General liquor license, Category B1, currently held by Chatcharat LLC, dba Royal Thai Cafe, located at the Keauhou Shopping Center, 78-6831 AIi`i Drive, Space Nos. K-2 & K-3, Kailua-Kona, Hawaii, TMK: 7-8-010-040, for a public hearing to be held on March 1, 2018, in Hilo, Hawaii; seconded by Mr. Greenwell. Taniguchi: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. Taniguchi: Thank you very much. Hoff: Thank you. Nahale-a: Thank you. Taniguchi: Item No. 2, Application No. 17-21, Kailua-Kona Restaurants, Inc., dba Pancho and Lefty's Cantina & Restaurante, for a Change in Location to its Restaurant General liquor license, Category B2. 2. Application No. 17-21 (10:16 A.M.) Kailua-Kona Restaurants, Inc., dba Pancho and Lefty's Cantina & Restaurante, for a Change of Location to its Restaurant General liquor license, Category B2, from the Kona Marketplace Shopping Center, 75-5719 Ali`i Drive, Unit No. A-201, Kailua-Kona, Hawaii, TMK: 7-5-007:016, to the Kona Marketplace II, 75-5725 Ali`i Drive, Suite B-201, Kailua-Kona, Hawaii, TMK: 7-5-007:023. Terry Wigzell, President, was present. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 12 Taniguchi: Good morning. Wigzell: I'm Terry Wigzell, President. Taniguchi: Have you read the report? Wigzell: Yes. Taniguchi: Any changes to it? Wigzell: No. Taniguchi: Thank you very much. Can you briefly describe your business? Wigzell: We're a restaurant and bar, a Mexican restaurant that serves liquor. Taniguchi: Any public testimony? There was no public testimony. Taniguchi: Commissioners, any questions? There were no questions from the Commissioners. Taniguchi: Since none, may I have a motion? Nahale-a: Move to approve Application No. 17-21, if approved public hearing to be held April 5, 2018, in Kailua-Kona, Hawaii. Takaba: Second. Ms. Nahale-a moved to approve Application No. 17-21, Kailua-Kona Restaurants, Inc., dba Pancho and Lefty's Cantina & Restaurante, for a Change of Location to its Restaurant General liquor license, Category B2, from the Kona Marketplace Shopping Center, 75-5719 AIi`i Drive, Unit No. A-201, Kailua-Kona, Hawai`i, TMK: 7-5-007:016, to the Kona Marketplace II, 75-5725 AIi`i Drive, Suite B-201, Kailua-Kona, Hawaii, TMK: 7-5-007:023, for a public hearing to be held on April 5, 2018, in Kailua-Kona, Hawaii; seconded by Mr. Takaba. Taniguchi: Moved and seconded. Any other discussion? There was no further discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 13 There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. Taniguchi: Thank you very much. Wigzell: Thank you. Nahale-a: Thank you. Taniguchi: Item No. 3, Application No. 17-22, Kohala Village Hub Pub & Shop LLC, dba Hub Pub, pursuant to Rule 3-1-R (9). 3. Application No. 17-22 (10:22 A.M.) Kohala Village Hub Pub & Shop LLC, dba Hub Pub, pursuant to Rule 3-1-R (9) of the Rules and Regulations of the Liquor Commission, under its Small Craft Producer Pub liquor license, Category B2, requests to add a second location to manufacture beer and wine, currently held by Kawaihae Spirits, Inc., dba Blue Dragon, located at Kawaihae Village, 61-3616 Kawaihae Road, Kawaihae, Hawaii, TMK: 6-1-002:064 and 088. Delphina Dorrance, Co-owner, Director of Blue Dragon and Paul Anderson, Facilities Manager, were present. Taniguchi: Good morning. Dorrance: Good morning. Taniguchi: Please identify yourselves and your relationship to the business. Dorrance: I'm Delphina Dorrance, you see my first name too, "Leigh," but I go by Delphina and I'm the Co-owner of the Kohala Village Hub Pub and I've been Director of the Blue Dragon which as you know is still closed, so here's a new idea for the Commission. Anderson: Paul Anderson and I'm Facilities Manager. Taniguchi: Have you read your report? Any changes to it? Dorrance: Yes. No. Takase: Mr. Chairman, let me explain to the Commission what's happening. This is a little different than what you've seen before. Remember Kohala Village Hub Pub, located in Kohala? They are in operation but they're not brewing at the current time because they're having some "back and forth" with the Building Department. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 14 Dorrance: That was regarding finishing the liquor license, so that was successful after a long time. It did hold us up financially and that's why in order to brew, we just honestly don't have the funds yet for the new brewery facility. We're basically going to build a new site and we are applying for that, but we have two years to build that or get an extension. In the meantime, and I know it's very new for the County but our Craft 898, the Class 18 does allow for a second location. Paul had the wonderful idea of using the Blue Dragon for a very small pilot system to start testing the recipes and maybe even re -open as a taproom with some bar food to go along with that. Takase: As a Class 18 Licensee, they are allowed to open one additional site at another location which is what they're choosing to do. Although it's currently two separate licenses, they are the owners of Blue Dragon as well. If approved, they will transfer this license to that second location. They will be giving up the Blue Dragon license. Dorrance: Yes, but only after all the other Departments sign off. Takase: Yes. They don't want to get stuck. Dorrance: It's the DOH, Building and Planning we'll have to go through. Takase: Yes. We would allow them to operate a second location under this license as well. Taniguchi: So everything will be at Blue Dragon? Takase: For now. Your restaurant is in operation already, right? Dorrance: It would actually be two restaurants but only the Blue Dragon would start brewing. We're already under operation at the Hub Pub. We serve breakfast, lunch and dinner and we are able to sell beer, wine and spirits. We just don't have our own beer to serve yet. Taniguchi: But they're not going to bring the Blue Dragon beer to the Hub Pub? Takase: They can. Dorrance: Eventually. Or we could also eventually brew there. Takase: They can take it now. Dorrance: As a brewery under Class 18, you are allowed to distribute whether that's island wide or just to another restaurant. That's my understanding. It would basically be to test recipes; start serving if and as we can get the business up and running again. I'd like to serve food because I don't want people just drinking. In that location, everybody has to drive there, so we'll still be conscious of the hours. It's going well so far, too, at the Hub Pub. Masuda: Commissioners, any questions? FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 15 There were no questions from the Commissioners. Dorrance: Since we have the two liquor licenses, do we still have to do the public hearing? Is it being treated like a new license or is it just to let the neighbors know? Can we start doing a little brewing there? Takase: At the Kawaihae location? Dorrance: Yes, at the Blue Dragon. Takase: Yes. If it was under Blue Dragon, you still could. But since it's moving a different license down there, we're requiring the public notice again. Hopefully, you won't have any problems. Dorrance: No, it should be okay. I'm just thinking, is there any other creative way like maybe change the Blue Dragon one to the Craft Class? Takase: How soon are you going to be able to brew? Dorrance: It will probably be up to the other Departments. Finishing the wastewater, getting signed off on this. Takase: You will be able to brew from us come April 1st. I didn't anticipate you were going to be ahead of that. Dorrance: Okay, right. Takase: But, you could still re -open Blue Dragon if you wanted to serve. But, I'm just telling you there's still some other issues you have to take care of. Dorrance: Yes. Takase: You could re -open Blue Dragon as a restaurant and serve liquor. You just couldn't brew at that location until April 1st Dorrance: So, the hearing is really about adding the brew component? Takase: And just notifying them that it's a different Licensee even though you're kind of the same. Dorrance: Commission, that's the other underlying organizational thing that we would do is do a lease. We would lease Kawaihae Spirits LLC to Kohala Village Hub & Shop. That's my understanding, unless we need to dissolve that and become it. But I think we can handle that with a lease. Nahale-a: Your intention is to get the Blue Dragon up and running again as a food service place? Dorrance: It would have to change, I mean, you guys were probably the only ones making money on it before, so we would have to change the operations. For instance, FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 16 change the amount of food or type of food to just be a little simpler. Maybe even counter service instead of wait service and things like that. To be able to serve food or at least pupus with the beverages would be great. If we could add lunch, that would also help the success of the business. We do have a food truck if that helps, we could utilize that out front on the part that we own. Hawaiian Homelands owns the lease on the parking lot and they've said no to our being able to expand our wastewater system under our parking lot that we lease there, and they said no to having our food truck there. It's been a very challenging year. Taniguchi: Anybody else? There were no further questions from the Commissioners. Taniguchi: Can we have a motion? Nahale-a: Move to approve Application No. 17-22, if approved public hearing to be held April 5, 2018, in Kailua-Kona. Greenwell: Second. Ms. Nahale-a moved to approve Application No. 17-22, Kohala Village Hub Pub & Shop LLC, dba Hub Pub, pursuant to Rule 3-1-R(9) of the Rules and Regulations of the Liquor Commission, under its Small Craft Producer Pub liquor license, Category B2, requests to add a second location to manufacture beer and wine, currently held by Kawaihae Spirits, Inc., dba Blue Dragon, located at Kawaihae Village, 61-3616 Kawaihae Road, Kawaihae, Hawaii, TMK: 6-1-002:064 and 088, public hearing to be held April 5, 2018, in Kailua-Kona, Hawaii; seconded by Mr. Greenwell. Taniguchi: Moved and seconded by Mr. Greenwell. Any other discussion? There was no other discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. Nahale-a: Thank you. Dorrance: Thank you so much for having us. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 17 VII. Unfinished Business None VIII. New Business Taniguchi: Under New Business, Item No. 1, Spanky's Bar & Grill LLC, dba Spanky's Bar & Grill, pursuant to Rule 4-2-M as in mother, requests permission to extend issuance of its Temporary Dispenser liquor license, Category B1 and D. 1. Spanky's Bar & Grill LLC, dba Spanky's Bar & Grill, pursuant to Rule 4-2-M of the Rules and Regulations of the Liquor Commissioner of the Department of Liquor Control of the County of Hawaii, requests permission to extend the time issuance of its Temporary Dispenser General liquor license, Category B1 and D, located at 750 Kinoble Street, Hilo, Hawaii, for an additional six months from January 6, 2018, to and including May 5, 2018, by letter dated and received January 2, 2018, approved by Director Gerald Takase on January 3, 2018. Nahale-a: Mr. Chair, I would like to make a motion that the Commission finds good cause to extend and approve the request to extend the issuance of Spanky's Temporary Dispenser General liquor license, Category B1 and D, for an additional six months. Greenwell: Second. Ms. Nahale-a moved that the Commission finds good cause to extend and approve the request submitted by Spanky's Bar & Grill, for permission to extend the time issuance of its Temporary Dispenser General liquor license, Category B1 and D, located at 750 Kino`ole Street, Hilo, Hawaii, for an additional six months from January 6, 2018, to and including May 5, 2018, by letter dated and received January 2, 2018, approved by Director Gerald Takase on January 3, 2018; seconded by Mr. Greenwell. Greenwell: What are the dates that this is going to be extended to? Originally, they were asking for six months and that was mathematically only about five months and now I see these dates are lined out. What are we looking for as far as dates? Takase: Let me back up and tell you what the "good cause" is. We approved Spanky's a while ago and their six months ran out on January 6, so we were going to extend them out to May of this year. The reason being is that as they were going through their inspection process, they have to do their electrical which was news to them and news to us because it has been operating as a bar for the last several years. Apparently, the person who owns it is a contractor. But they're trying to do their electrical wiring and FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 18 they hope to get it finished within the next three months. But their time had run out on their temporary earlier this month. We have extended it. Greenwell: So, Gerald, we give them an extension and does that correlate with the Planning Department's extension? If something should go haywire between now and then? Takase: They're approved with Planning. I believe they're not approved with Building's Electrical Division. They have plans in to make the changes and they're just waiting to get the work done and approved again. We have allowed them to operate because I felt it would be even worse for us as a County to now turn around and say, "Oh, and by the way, never mind that this thing has been open for the last 10 years. Since you're not meeting the Code requirements, we're going to shut you down." I believe that most of the Code requirements relate to how many outlets you have, not that the workmanship is bad or that it's going to catch on fire. Nowadays you have to have, think, every six feet you have to have an outlet. Those are the types of things they're not Code compliant with. It's not a matter of safety. Nahale-a: And they anticipate the work being done within about three months? Takase: I think they're hopeful. Their Landlord is a contractor so I would hope he's going to do it. They have been open, they have been running, so I would like to give them at least this much time to get something done. I know they're pushing from their side, but can only push their contractor so hard. I would think he's going to get it done, or he won't be getting lease rent as well. Taniguchi: This is on the other side of Floral Mart? Takase: Yes. The old Main Street. Taniguchi: Any other questions? There were no other questions from the Commissioners. Taniguchi: Since none, I call for the question. All those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you very much. The motion was carried unanimously. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 19 Taniguchi: Item No. 2, Umekes, LLC, dba Umeke's Kuakini Center, ratification of Application for Temporary Increase in Licensed Premises to its parking area for a concert held on January 4th, approved by Director Gerald Takase on January 4, 2018. 2. UMEKES, LLC, dba Umeke's Kuakini Center, ratification of Application for Temporary Increase in License Premises to its parking area for a concert held on January 4, 2018, approved by Director Gerald Takase on January 4, 2018, to its Restaurant General liquor license, Category B1, located at Kuakini Center, 74-5563 Kaiwi Street, Unit No. 112, Kailua-Kona, Hawaii. Nahale-a: Move to ratify. Takaba: Second. Ms. Nahale-a moved to ratify the Application for Temporary Increase in License Premises, submitted by Umekes, LLC, dba Umeke's Kuakini Center, to its parking area for a concert held on January 4, 2018, approved by Director Gerald Takase on January 4, 2018, to its Restaurant General liquor license, Category B1, located at Kuakini Center, 74-5563 Kaiwi Street, Unit No. 112, Kailua-Kona, Hawaii; seconded by Mr. Takaba. Taniguchi: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Taniguchi: All those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Thank you. The motion was carried unanimously. Taniguchi: O&J LLC, dba Waikoloa Restaurant and Bar, ratification of Application for a Temporary Increase in Licensed Premises, to its banquet room for a special dining event held on January 26, 2018. 3. O&J LLC, dba Waikoloa Restaurant and Bar, ratification of Application for Temporary Increase in Licensed Premises, to its banquet room for a special dining event held on January 26, 2018, approved by Director Gerald Takase on January 10, 2018, to its Restaurant General liquor FEBRUARY1, 2018 -LIQUOR COMMISSION MINUTES 20 license, Category B2, located at the Waikoloa Village Clubhouse, 68-1790 Melia Street, Waikoloa, Hawaii. Takaba: Move to ratify. Nahale-a: Second. Mr. Takaba moved to ratify Application for Temporary Increase in Licensed Premises, submitted by O&J LLC, dba Waikoloa Restaurant and Bar, to its banquet room for a special dining event held on January 26, 2018, approved by Director Gerald Takase on January 10, 2018, to its Restaurant General liquor license, Category B2, located at the Waikoloa Village Clubhouse, 68-1790 Melia Street, Waikoloa, Hawaii; seconded by Ms. Nahale-a. Taniguchi: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Taniguchi: All those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. Taniguchi: Item No. 4, Kona Hawaii Lodge 2616, Benevolent & Protective Order of the Elks of the United State of America, dba Kona Elks Lodge, ratification of the Application for Game Permit for a Texas Hold'em Dinner held on January 15 and 29, 2018. 4. Kona, Hawaii, Lodge No. 2616, Benevolent & Protective Order of Elks of the United States of America, dba Kona Elks Lodge, ratification of Application for Game Permit for a Texas Hold'em Dinner held on January 15 and 29, 2018, approved by Director Gerald Takase on January 10, 2018, to its Club liquor license, Category B2, located at 74-5596 Pawai Place, Bays M and N, Kailua-Kona, Hawaii. Nahale-a: Move to ratify. Greenwell: Second. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 21 Ms. Nahale-a moved to ratify the Application for Game Permit, for a Texas Hold'em Dinner held on January 15 and 29, 2018, submitted by Kona, Hawaii, Lodge No. 2616, Benevolent & Protective Order of Elks of the United States of America, dba Kona Elks Lodge, approved by Director Gerald Takase on January 10, 2018, to its Club liquor license, Category B2, located at 74-5596 Pawai Place, Bays M and N, Kailua-Kona, Hawai`i; seconded by Mr. Greenwell. Taniguchi: Moved and seconded. Discussion? Lopez: Question. I see this particular one come up regularly. I'm a member of the Elks and I have a calendar. Do they have to apply for this every month? Takase: They can apply for several months in a row. We take it as they send it to us. Lopez: Absolutely. Takase: You can tell them they can submit multiple months on it. Masuda: Are you a member of this particular Elks Lodge? Lopez: Yes. Masuda: I will ask to recuse yourself at this point. Lopez: Will do. Mr. Lopez recused himself from voting on New Business, Item No. 4. Taniguchi: Any other questions? There were no further questions from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Please note that Mr. Lopez has recused himself. The motion was carried unanimously. Takase: Have you been attending these events? FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 22 Lopez: No, I actually haven't. Masuda: Commissioner Lopez is back on the (inaudible). Taniguchi: Item No. 5, Dragon Roll LLC, dba Tunaichi, pursuant to Rule 4-2-M as in mother. 5. Dragon Roll LLC, dba Tunaichi, pursuant to Rule 4-2-M, of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, requests permission to extend the time issuance of its Dispenser General liquor license, Category A, located at 75-5699 Ali`i Drive, Suite F, Kailua-Kona, Hawaii, for an additional six months from October 6, 2017, to and including April 6, 2018, by letter dated and received January 12, 2018. Takase: Let me explain this one, too. This is located below Gertrude's Jazz Bar on the corner on Ali`i Drive where the shaved ice place is. They're having trouble with getting the grease traps approved. It doesn't really affect their operation, but nobody can get their Landlord to move on the matter. There are several businesses in there that are having the same problem. As a Licensee, they're trying to do everything they can, but the Landlord hasn't done anything. Maybe what we'll do in the future is try to advise any new Licensees that move in there of the problems that the other ones have had and they will probably have as well. It's just an unfortunate situation for the Licensee because they're stuck. They've got their money invested in this place and basically can't (get the Landlord to address the problem). We're trying to avoid having to shut them down for something that's beyond their control. That's the good cause to allow them. You'll see it keep coming up because you can only extend them so long. Nahale-a: Mr. Chair, I'd like to move that the Commission finds good cause to extend and approve the request to extend the issuance of its Temporary Dispenser General liquor license for another six months. Takaba: Second. Ms. Nahale-a moved that the Commission finds good cause to extend and approve the request, submitted by Dragon Roll LLC, dba Tunaichi, for permission to extend the time issuance of its Dispenser General liquor license, Category A, located at 75-5699 Alii Drive, Suite F, Kailua-Kona, Hawai`i, for an additional six months from October 6, 2017, to and including April 6, 2018, by letter dated and received January 12, 2018; seconded by Mr. Takaba. Taniguchi: Moved and seconded. Do you have a question? Greenwell: In issues like this, where there's something unrelated to the Liquor Department, do you have to go to permitting or someplace like that to get some kind of FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 23 a formal understanding or does the Building people come to you and say, "You know, this guy shouldn't get their license extended." Is there any kind of overlap between the departments? Takase: Informally there is. It's coming up as part of our final inspection process. That's how this one came up. These things are not compliant. Greenwell: Gerald, let me re -phrase it. You hear people come in and say they have problems with Building, electrical, plumbing or this and that. You seem to be so pro- business and want to help them. Do the Building people come to you and say, "Hey, these guys aren't doing their job"? Why are you so pro-business and some of these others are not? Takase: I think a part of it is because of where I sat previously. As a former Assistant Corporation Counsel, I can see these problems coming up and can anticipate them. don't think their problems cannot necessarily be resolved. In my estimation, it's our responsibility to at least make sure that these places are safe. In a lot of these situations, it has nothing really to do with the safety, but rather you have to meet some Code requirements and a lot of the time, Code requirements keep changing on people. If they're working to get them resolved, we will help them get there because if we don't allow the business to continue, they're probably not going to have money to do the changes anyway. We're going to cause them to go out of business. The problem will never be taken care of, so I would like to give them a chance to rectify that. We look at the Licensees. If the Licensee's just refusing to do anything, we will not approve those, however, where the Licensee's trying to do everything within their power to bring themselves into compliance, those are the situations where we will help them from our position. I don't think our primary duty is to make sure that all of the Code requirements are in place. I think we should not be ignoring them, but we will help them get to a place where they can get things done. Overall, in the inventory of business spaces, we should all be working towards bringing them all into compliance. If the space is not going to be rented, then nothing is ever going to happen there. Hopefully, by having a business in there, things will get done to bring them into compliance. That's our philosophy of what we're doing. Greenwell: I understand, Gerald, but it seems that you allow people to do tents like in Pahoa and here these poor guys are trying to get through the hoops and the hurdles with the other side of the County. It's understandable that you want to keep them in business. Taniguchi: Any other questions? Very good question. There were no further questions from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "Aye." FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 24 Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. Taniguchi: Item No. 6, Wal-Mart Stores, Inc., dba Walmart No. 2321 in Kailua-Kona, and dba Walmart No. 2473, to change entity. 6. Wal-Mart Stores, Inc., dba Walmart No. 2321 (Kailua-Kona), located at 75-1015 Henry Street, Kailua-Kona, Hawaii, and dba Walmart No. 2473 (Hilo), located at 325 East Maka'ala Street, Hilo, Hawai'i, submits notification for approval to change entity to Walmart Inc., dba Walmart No. 2321 (Kailua-Kona), and Walmart Inc., dba Walmart No. 2473 (Hilo), respectively, to its Retail General liquor license, effective February 1, 2018. Nahale-a: Move to approve. Takaba: Second. Ms. Nahale-a moved to approve the notification, submitted by Wal-Mart Stores, Inc., dba Walmart No. 2321 (Kailua-Kona), located at 75-1015 Henry Street, Kailua-Kona, Hawaii, and dba Walmart No. 2473 (Hilo), located at 325 East Maka'ala Street, Hilo, Hawaii, to change entity to Walmart Inc., dba Walmart No. 2321 (Kailua-Kona), and Walmart Inc., dba Walmart No. 2473, respectively, to its Retail General liquor license, effective February 1, 2018; seconded by Mr. Takaba. Taniguchi: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 25 The motion was carried unanimously. Taniguchi: Item No. 7, Olu Kai, Ltd., dba Huggo's, ratification of Application for Alteration Permit to remove existing fenced section. 7. Olu Kai, Ltd., dba Huggo's, ratification of Application for Alteration Permit to remove existing fenced section, pursuant to Rule 3-2-D-1 of the Liquor Commission Rules and Regulations, to its Restaurant General liquor license, Category B2, located at 75-5828 Kahakai Road, Kailua-Kona, Hawaii, submitted on January 12, 2018, approved by Director Gerald Takase on January 22, 2018. Nahale-a: Move to ratify. Greenwell: Second. Ms. Nahale-a moved to ratify the Application for Alteration Permit to remove existing fenced section, pursuant to Rule 3-2-D-1 of the Liquor Commission Rules and Regulations, submitted by Olu Kai, Ltd., dba Huggo's, to its Restaurant General liquor license, Category B2, located at 75-5828 Kahakai Road, Kailua-Kona, Hawaii, on January 12, 2018, approved by Director Gerald Takase on January 22, 2018; seconded by Mr. Greenwell. Taniguchi: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. Taniguchi: Item No. 8, Express Waiters, LLC, dba Express Waiters, located at 56 Kaapuni Loop, Hilo, Hawaii, requests approval for third -party delivery service for Licensee Thomas T. Kadota, Ltd., dba Kadota Liquors. 8. Express Waiters, LLC, dba Express Waiters, located at 56 Kaapuni Loop, Hilo, Hawaii, requests approval for third -party delivery service for FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 26 Licensee Thomas T. Kadota, Ltd., dba Kadota Liquors, located at 194 Hualalai Street, Hilo, Hawaii, for delivery within the Hilo area on a trial basis. Nahale-a: Move to approve. Takaba: Second. Ms. Nahale-a moved to approve the request for approval for third -party delivery service for Licensee Thomas T. Kadota, Ltd., dba Kadota Liquors, located at 194 Hualalai Street, Hilo, Hawaii, submitted by Express Waiters, LLC, dba Express Waiters, located at 56 Kaapuni Loop, Hilo, Hawaii; seconded by Mr. Takaba. Taniguchi: Moved and seconded. Any discussion? I have a question. These people are the ones that do the delivery of food, right? Takase: Yes. Taniguchi: Kadota Liquors will take the order for the food and Kadota will deliver the liquor? Is that what it is? Takase: They are going to deliver liquor for Kadota Liquors. You can buy the food from whatever restaurants they are partnered with. If you want liquor, you can put in an order through Kadota's and they will deliver that, too. We do have some liquor delivery services, but right now, the rest of them are in conjunction with their stores. In other words, the stores themselves are delivering directly. This is a little bit of a change. This is a third -party actually delivering for Kadota's rather than Kadota's delivering themselves. We met with these people a couple of times and I don't see the difference in operation. We're asking them to try out this new ID checking software that we, as a Department had been looking at. It's a mobile app. so they can get it on their phone and it's pretty accurate. The only part that the person has to do is make sure the ID matches the face on the ID. This mobile app. will read the card and it's 99 percent accurate. We can't say 100 percent, but we haven't been able to trip it up yet. It seems pretty good. It's a local business starting out and I wanted to help them out because I'm starting to get other applications from national businesses that want to start doing this. For those of you who have attended national conferences, you see the other entities out there like Drizly, starting to provide a delivery service like a FedEx of local delivery. It's coming. This is a test run and we've talked with them enough that they understand and Kadota understands they will still have to follow the same procedures that any other Licensee that delivers has. They'll have to pre -register at Kadota's and they will develop a registry of people they can deliver to. They may extend it, and that's why we're testing this software because they may take orders from hotels where they are not pre -registered. That's why I'm telling them if they can get this software, and you can check them, then maybe we will accept that. That's a little bit of a change. That's why FEBRUARY1, 2018 -LIQUOR COMMISSION MINUTES 27 I'm requiring that they use this software as a backup saying it's okay versus them coming to the store to pre -register. Taniguchi: Do these people have to be licensed? Express Waiters? Takase: They're technically working under Kadota's license because they're not selling it themselves and that's one of the issues we had to make clear to them. They will just charge a flat fee for delivery. They cannot mark it up based on price, which is what think they're doing on the food side. Taniguchi: They're doing it exactly like what they're doing for food? You order from Kadota and they will pick it up from Kadota and deliver. Takase: I think on the food side though, they have different prices based on how much you order (they can charge different prices). Taniguchi: If you go to KTA and they want to deliver for them, do they have to come to us again? Takase: Yes. KTA would come to us and say, "Could we have these guys deliver for us?" Assuming this one goes fine, we'd probably approve that as well. Arakaki: I have a question about that software. It reads the license? Takase: It reads the barcode that's on the back of it. We're getting if for all of our investigators, but we had it six months now. We've been testing it and it's very accurate. It'll read the back and that's usually where, if there's a fake ID, it'll match up whether it was issued by the proper authorities, etc. Fake IDs are very good now. By us just looking at it, we probably couldn't tell all the differences of which is real or not. Taniguchi: It would tell you if it's a fake one and what it's supposed to look like, right? Takase: It's being used now by many agencies. They've got all of the States and Canadian provinces and some others. The Department of Defense is also using this scanner to check their IDs. We're satisfied with the product so far. Greenwell: Gerald, you said you're getting requests from mainland companies about this delivery. What would happen if CVS came to you and said we want to deliver beer to a luau for instance? Would that have to be a separate program that they'd have to start because they were a distributor and there's no middleman? Takase: Right now, it's all the retailers that are actually delivering. They just need to let us know and get approved for delivery service and they can do it as well. Right now, it's been the high-end ones so the last one I saw was Kealakekua Ranch Market. Nahale-a: The Mexican one downtown. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 28 Takase: Kona Wine Market Nahale-a: The Mexican Cantina one asked to do delivery service, right? Takase: Yes, Mi Tierra. Also, Waikoloa Village Mart. Previously, it was just the high- end guys doing it, but as everything goes by, you have to remain competitive so more and more they may want to do it. Potentially you could see every store offering delivery service if it made sense financially. Nahale-a: I see it in the Express Waiters' Policy for Customer Database they scan, then all that information gets kept in a dropbox that is theirs for which Kadota will get reports from. Takase: Yes. Essentially, when they scan it, they're creating a profile for Kadota's to keep. Nahale-a: I see that the Department doesn't necessarily have anything to do with it unless maybe there's an issue? Takase: Yes. We require all of the Licensees that do delivery to keep a file on who they're allowed deliveries to. That's what Kadota's will have to start to keep as well. Taniguchi: All those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. Taniguchi: Item No. 9, Holualoa Enterprises LLC, dba Kona Style (on board vessel "Noa Noa"), ratification of Application for Outside Storage Permit, for a warehouse, located at 74-381 Kealakehe Parkway, #D, Kailua-Kona, Hawai'i, to its Tour or Cruise Vessel liquor license, Category B1. 9. Holualoa Enterprises LLC, dba Kona Style (on board vessel "Noa Noa"), ratification of Application for Outside Storage Permit, for a warehouse, located at 74-381 Kealakehe Parkway, #D, Kailua-Kona, Hawai'i, to its Tour or Cruise Vessel liquor license, Category B1, approved by Director Gerald Takase on January 24, 2018, effective February 1, 2018. Nahale-a: Move to ratify. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 29 Greenwell: Second. Ms. Nahale-a moved to ratify the Application for Outside Storage Permit, for a warehouse, located at 74-381 Kealakehe Parkway, #D, Kailua-Kona, Hawaii, submitted by Holualoa Enterprises LLC, dba Kona Style (on board vessel "Noa Noa"), to its Tour or Cruise Vessel liquor license, Category B1, approved by Director Gerald Takase on January 24, 2018, effective February 1, 2018; seconded by Mr. Greenwell. Taniguchi: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. Taniguchi: Item No. 10, Holualoa Enterprises LLC, dba Kona Style (on board vessel "Noa Noa"), ratification of a sale and transfer of the Tour or Cruise Vessel liquor license, Category B1. 10. Holualoa Enterprises LLC, dba Kona Style (on board vessel "Noa Noa"), ratification of a sale and transfer of the Tour or Cruise Vessel liquor license, Category B1, currently held by Kona Snorkel and Sail, LLC, dba Kona Style (on board vessel "Noa Noa"), moored at Kailua Bay Pier, Kailua-Kona, Hawaii, final inspection completed on January 25, 2018, approved by Director Gerald Takase on January 26, 2018, effective February 1, 2018. Nahale-a: Move to approve. Takaba: Second. Ms. Nahale-a moved to approve the sale and transfer of the Tour or Cruise Vessel liquor license, Category B1, currently held by Kona Snorkel and Sail, LLC dba Kona Style (on board vessel "Noa Noa"), moored at Kailua Bay Pier, Kailua-Kona, Hawaii, final inspection FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 30 completed on January 25, 2018, submitted by Holualoa Enterprises LLC, dba Kona Style (on board vessel "Noa Noa"), approved by Director Gerald Takase on January 26, 2018, effective February 1, 2018; seconded by Mr. Takaba. Taniguchi: Moved and seconded. Gerald, what is this about? Number 10. Masuda: Sale and transfer. Gonzalez: For this case, because it's a vessel, the mooring requirement from the Department of Land and Natural Resources and the Harbors Division is that the entity holding the license for liquor is to be the same as the one holding the mooring permit. They're just trying to clear up the paperwork on their end so that they can continue to obtain the proper approvals of the Department of Land and Natural Resources. If I recall correctly, it's the same principle people but instead of using sub companies or subsidiaries they're matching it up. Takase: We don't require notice on these cruise ships because their place of business is out at sea not at dock. Taniguchi: Any questions? Lopez: I have a question. I read Item No. 10 that's on the Agenda, but then I look at the Application for outside storage permit. Takase: No, that was for No. 9. Taniguchi: It's No. 9. Masuda: You have to look at the Amended Agenda. Lopez: Thank you. Taniguchi: All those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 31 Taniguchi: Item No. 11, Kim Mukai LLC, dba Kim's at Hilo Muni, ratification of Application for Temporary Increase in Licensed Premises, to its covered patio fronting the Restaurant, for a special event held on January 27, 2018. 11. Kim Mukai LLC, dba Kim's at Hilo Muni, ratification of Application for Temporary Increase in Licensed Premises, to its covered patio fronting the Restaurant, for a special event held on January 27, 2018, received on January 26, 2018, approved by Director Gerald Takase on January 26, 2018, to its Restaurant General liquor license, Category B1, located at 340 Haihai Street, Hilo, Hawaii. Nahale-a: Move to ratify. Greenwell: Second. Ms. Nahale-a moved to ratify the Application for Temporary Increase in Licensed Premises, to its covered patio fronting the Restaurant, for a special event held on January 27, 2018, submitted by Kim Mukai LLC, dba Kim's at Hilo Muni, received on January 26, 2018, approved by Director Gerald Takase on January 26, 2018, to its Restaurant General liquor license, Category B1, located at 340 Haihai Street, Hilo, Hawaii; seconded by Mr. Greenwell. Taniguchi: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. Taniguchi: No. 12, Volume Services, Inc., dba Centerplate; Centerplate — Hawaiian; and Centerplate — Aloha, ratification of Personal History and Affidavit. 12. Volume Services, Inc., dba Centerplate; Centerplate — Hawaiian; and Centerplate — Aloha, ratification of Personal History and Affidavit for Marc Allen Blass, as Treasurer, effective December 26, 2017, received on January 25, 2018, approved by Director Gerald Takase on January 25, 2018, to its Dispenser General liquor licenses, Category A, FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 32 located at Hilo International Airport, 2450 Kekuanao`a Street, Hilo, Hawaii; Ellison Onizuka Kona International Airport, Hawaiian Airlines Terminal, 73-200 Kupipi Street, Keahole, North Kona, Hawaii; and Ellison Onizuka Kona International Airport, Aloha Airlines Terminal, 73-200 Kupipi Street, Keahole, North Kona, Hawaii, respectively. Nahale-a: Move to ratify. Takaba: Second. Ms. Nahale-a moved to ratify the Personal History and Affidavit for Marc Allen Blass, as Treasurer, effective December 26, 2017, received on January 25, 2018, submitted by Volume Services, Inc., dba Centerplate; Centerplate — Hawaiian; and Centerplate — Aloha, approved by Director Gerald Takase on January 25, 2018, to its Dispenser General liquor licenses, Category A, located at Hilo International Airport, 2450 Kekuanao`a Street, Hilo, Hawaii; Ellison Onizuka Kona International Airport, Hawaiian Airlines Terminal, 73-200 Kupipi Street, Keahole, North Kona, Hawaii; and Ellison Onizuka Kona International Airport, Aloha Airlines Terminal, 73-200 Kupipi Street, Keahole, North Kona, Hawaii, respectively; seconded by Mr. Takaba. Taniguchi: Moved and seconded. Any discussion? There was no discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. Taniguchi: Item No. 13, Proposed legislation, H.B. 2413, Related to Liquor Commissions. 13. Proposed legislation, H.B. 2413, Relating to Liquor Commissions, to require members of county liquor commissions and liquor adjudication boards to submit to annual criminal history record checks, and H.B. 2414, Relating to Liquor Licenses, to streamline procedures in the issuance of temporary licenses. FEBRUARY 1, 2018—LIQUOR COMMISSION MINUTES 33 Taniguchi: Gerald, do you want to explain? Takase: I gave the Commissioners a copy of the proposed testimony. Bill 2413 is a bill before the Legislature that requires several things. First and foremost for the Commissioners is it will require annual criminal background checks of all Commissioners, Adjudication Board Members and any attorneys that we hire. I think I know the impetus for this bill and it's really coming out of Maui. They're upset with the Maui Commission and what they were doing in terms of requiring background checks of special licensees which caused a lot of their fundraisers to fall by the wayside. There might have been some political fundraisers as well and that's why we see this in front of them. It does that, number one; and number two, it requires Chapter 91 reviews which we already have; and thirdly, it removes civil service protections for the appointment of directors and officers. For the three (requirements), I'm saying: number one, I'm not sure why they would require background checks of you Commissioners because no other board or commission is subject to that kind of requirement. I know the argument they're going to give me is that we require background checks of licensees, a kind of tit for tat. I'm saying that it's a whole different ball game. They're trying to make money from this and I think it's unreasonable for them to require that. I wanted to bring it up to the Commissioners. If you want to say anything, like you don't think it would be good, can add that in that I polled our Commission and they feel that they're not in favor of it. I just got off the phone prior to the meeting with the other Directors, Maui and Kauai and Honolulu and they're going to oppose it as well. We feel that Maui created the problem, let them deal with it. Why are you trying to pass something statewide to deal with what has only been a problem on Maui? Every other island doesn't require. On Maui if you come in for a special permit such as a non-profit fundraising, they require all their officers, and most boards have many people, to come in and get fingerprinted to send to the FBI before they can get permitted. It takes awhile to do that, probably a month or more. Most non -profits that we deal with remember the week of their event that they have to get a liquor license. Consequently, Maui was turning down a lot of applicants. There's a lot of flak. Maui asked for an opinion from the Attorney General whether they had to do that. The Attorney General came back and said it's not a requirement, you can do it if you want to, but it's not necessary. Maui chose to continue. We were going to bring it up in not so many words and I've been thinking about this overnight and whether I should change my testimony to not be so "in your face" with the Legislature. Honolulu is trying to convince people we should do that—let Maui deal with it. Taniguchi: Who sponsored the Bill? Takase: Keith Agaran who is from Maui apparently. He's the Senate side and we're not sure whose signature is on the House Bill. Some say it's Greg Takayama who's actually from Honolulu. The second part about the Directors and civil service, we don't have civil service protections anyway. We serve at will so I'm saying that it can be taken out (of the testimony), it doesn't matter. But, I think they're just firing these things off. They don't understand what's there and usually the Legislators are slow to pass things that have no effect so that might be another reason to stop it. Thirdly, with Chapter 91, we are subject to Chapter 91. Any decisions that are made can be FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 34 appealed as it is now. They're just thinking that nobody can challenge the Maui Commission, that's why they're adding that in. Regarding Maui, the Commission and Director are together but they're fighting everybody. The Mayor has spoken with them, their Corporation Counsel is not supporting them, but they've still chosen to go ahead. Their Deputy Director, Mark Honda came to the same opinion and they refused to follow his advice so he resigned towards the end of the year. I feel the rest of us are thinking that while Maui has problems we don't want to be a part of it. Masuda: Are they still in litigation, too? Takase: I think they're in litigation but they reversed their decisions that started the litigation. I'm not sure how it will end. Anyway, that's where we're at. I sent this to the Mayor's Office. They have approved so we'll probably go with something close to this. Takaba: They approved it? Takase: Yes. Taniguchi: Steve, question? Lopez: Yes. I don't disagree with your intent here, but as a reader since this is public testimony, can you confirm that a single jurisdiction is having concerns? Is that factual in terms of this legislation? I'm thinking of "fake news." Maybe there's other words you could use? Also, Licensees are also profiting from the sale of liquor. Is that an argument? Takase: I know that's going to be their number one argument. The thought would be that we require the Licensees to go through a background check, so what's good for them should be good for you, why do you object? So, I need to draw distinction between you and them. Lopez: In your distinction is it profit-making? Takase: Yes. Plus it's the State law. Lopez: And then you say "purely retaliatory" so is that the right language? Takase: That's why I brought it to the Commission. I'd like the Commission to tell me. I appreciate your comments because if it's too harsh, then we can scale it back. I have until 2:00 to revise it. I need to bring it up (in my testimony). If I take it all out, then it might appear that we just don't want to do anything. Lopez: You're not at a trial so you don't have to support your statements. It's just that it's a public document. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 35 Takase: We can support our statements because it's well-documented already, maybe not for the rest of the islands but in the Maui news there's stories every week about the Maui Liquor Commission and what's going on there. We have been following that. Lopez: For my comments after just from an outside observer reading, its public testimony. Takase: No, that's good. That's why I brought it to you. That's what I've been thinking about all night. I'm wondering if we're wording this too strongly because now it's almost as though we're challenging the Legislature. Lopez: Or you're accusing them. Takase: Yes. Masuda: I'm not sure if it's necessarily challenging the Legislature. That's why they have the process. They haven't ruled on it, it's just a proposal. Takase: Well, that's why I was talking about the retaliatory part. It's almost like they cannot control Maui County so they're going to control it at their level, but that's what we don't really want to see happen. So, deal with the problem on Maui. It's like you're in school and one kid was bad so a new rule is made for all of the kids. Taniguchi: What is Maui's rationale? The community must be really upset with them. Takase: Oh, yes. Brandon and I were talking about it and I think they're being controlled by their investigators and their investigators are very "black and white" in their thinking. It says we can do it, we'll do it. We're the Department, whatever we say goes. That's been Maui's position for years. That's where we've all drifted apart now. He did some eye-opening things like his 24-hour retail stores which seemed very out of character with him. I'm not sure if there's any real rhyme or reason with what he's doing. Greenwell: Gerald, I don't think this is too strong. It might need to be polished a little. think this is good with a little polishing. I don't think it's too terribly strong. Taniguchi: The intent is good. You sent this to us the other day, right? Takase: No, I sent you just the points. Takaba: Just with the word "retaliation" and mentioning "Legislators" might offend someone who's sitting at the table. Takase: Yes. I'll re -word that portion. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 36 Takaba: That was my only concern. If you want your testimony to fly, then you don't want to insult them at the same time. Masuda: So Gerald, can you testify live on this? Taniguchi: The other Directors, too? No? Takase: Yes. I'm not sure about Maui. Nobody's been in touch with Maui. Taniguchi: I mean Honolulu and Kauai. Takase: Yes. Honolulu, and I think Kauai will be there. He says he wants to leave it to the lawyers. I don't think you need to make a motion. Masuda: Did you want to make it so you brought it to the Commission and they agreed? Or do you just want to file the communication? Lopez: We all support what you're trying to do. Takase: I won't be saying this is the official of the Commission. I can say that we did discuss this with the Commission. Masuda: But the Commissioners are free to write in their vote. Greenwell: Gerald, you start this out with "I am Gerald Takase" and it makes it sound like you're doing this yourself. Takase: I'm pretty sure they'll ask me at some point "what do your Commissioners think about this?" And that's where I can bring the Commission in. But, since it came up so late, only yesterday I think, I didn't have a chance to formally put it on your Agenda. I don't want to take a vote and say our Commission is doing this. But if they ask, I will say I discussed it with the Commission and here's their sentiment. Greenwell: But how do you make the point to them that you have our unanimous support? Takase: I'll slip it in there. It's the same thing for all the other islands because all the Commissions meet today. Takaba: It seems like somehow in your statement that we support it, you'd have to also state the fact the Commission continues to support not requiring background checks for all Licensees. Takase: Yes. I'II bring that up as well. If I'm asked if we require that, I'll say all we actually require of Licensees is that they sign an affidavit saying that they have not been FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 37 convicted of any crimes. We don't require fingerprinting. That's where we'll start drawing the distinction between us. Takaba: If we just say that we will oppose background checks, it's a bit self-serving because it applies to the people. Takase: That would be the argument that would first come up. That's why I'm trying to draw distinctions between what it's being used for. Yes, we do it for Licensees, but it's not as onerous as what Maui is doing. Secondly, the Commission is here to help the public, you're not trying to profit from the public which is (kind of) the whole reason, if we have to go into why they even had background checks then so be it. We will be prepared to note that it started off with prohibition when the mafia were controlling the liquor and to keep them out of that as they moved out of prohibition, and the reason for background checks is to make sure that they're not there. I think as of this day and age it's really an ancient concept. Takaba: So, is the statement that they sign a sworn affidavit? Takase: Yes. We notarize it so if we have to use it against them, we can. We've whittled it down to what's complying with the law but not overly taxing on everybody. I believe we've only had one that we had to go back on. That's the other thing. They want you to do an annual background check. We only require as of when they have their license. We've had one licensee that did get convicted later on. Other than that, we haven't had problems with criminal background checks. Taniguchi: So we don't have to vote on this. Nahale-a: Mr. Chair, as a matter of process, I move to close file. Greenwell: I second. Ms. Nahale-a moved to close the file regarding the proposed legislation, H.B. 2413, Relating to Liquor Commissions to require members of county liquor commissions and liquor adjudication boards to submit to annual criminal history record checks, and H.B. 2414, Relating to Liquor Licenses, to streamline procedures in the issuance of temporary licenses; seconded by Mr. Greenwell. Nahale-a: And I would like to express my support for the Director's testimony in opposition to H.B. 2413 in its entirety. Taniguchi: Moved and seconded. Any other discussion? There was no further discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 38 The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. 14. Special Licenses issued for ratification Taniguchi: Can we have a motion for ratification of Special Licenses SP -17-61 to SP -17-77, Items No. 14(a) to 14(q)? Nahale-a: So moved. Greenwell: Second. Ms. Nahale-a moved to ratify Special Licenses SP -17-61 to SP -17-77, Items No. 14(a) to 14(q); seconded by Mr. Greenwell. Taniguchi: Moved and seconded. Any other discussion? There was no further discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. 15. Transient Vessel Licenses issued for ratification Taniguchi: Item No. 15, may I have a motion to ratify Transient Vessel License Application No. TV -17-37? Nahale-a: Move to ratify. Greenwell: Second. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 39 Ms. Nahale-a moved to ratify Transient Vessel License Application No. TV -17-37, Princess Cruise Lines, LTD., dba Emerald Princess, to amend its Transient Vessel License issued on November 16, 2017, and ratified on December 7, 2017, located in port at Hilo Harbor, Hilo, Hawaii, on April 4, 2018; seconded by Mr. Greenwell. Taniguchi: Moved and seconded. Any other discussion? There was no further discussion from the Commissioners. Taniguchi: Since none, all those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. The motion was carried unanimously. IX. Announcements Taniguchi: Announcements, next meeting March 1st, 10:00 A.M., Hilo, April 5th in Kona. Any other announcements? There were no other announcements from the Commissioners. Meetings of Liquor Commission March 1, 2018, 10:00 A.M., Meeting Room, Department of Liquor Control, Hilo Lagoon Centre, 101 Aupuni Street, Unit 230, Hilo, Hawaii. April 5, 2018, 10:00 A.M., Meeting Room, Department of Liquor Control, West Hawaii Civic Center, 74-5044 Ane Keohokalole Highway, Building B, 2nd Floor, Kailua-Kona, Hawaii. X. Adjournment Taniguchi: Motion to adjourn? Nahale-a: Move to adjourn. Takaba: Second. Taniguchi: Moved and seconded. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 40 Ms. Nahale-a moved to adjourn the meeting of the Liquor Commission; seconded by Mr. Takaba. Taniguchi: All those in favor signify by saying, "Aye." The Commissioners voted "Aye." Taniguchi: Those opposed, "Nay." There was no opposition by the Commissioners. Taniguchi: Motion carried. Meeting adjourned. Thank you. The motion was carried unanimously. Meeting adjourned at 11:14 A.M. Takase, Director The February 1, 2018, Liauor Commission minutes were approved as circulated via e-mail/mail on February 23, 2018, by the Liquor Commission of the County of Hawaii on March 1, 2018. FEBRUARY 1, 2018 -LIQUOR COMMISSION MINUTES 41