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HomeMy WebLinkAbout2020-02-20 Liquor Adjudication Board MinutesCOUNTY OF HAWAII DEPARTMENT OF LIQUOR CONTROL LIQUOR ADJUDICATION BOARD MINUTES — FEBRUARY 20, 2020 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 Riley Smith at 10:04 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, Hawai'i. The following were present and constituted a quorum: Board Members: Riley Smith, Chair Andi Pawasarat-Losalio, Vice Chair Dwayne Mukai, Board Member Art Taniguchi, Board Member Absent and Excused: Geraldine Giffin, Board Member Others Present: Gerald Takase, Director Brandon Gonzalez, Administrative Officer Diana Mellon -Lacey, Deputy Corporation Counsel (Board) Dorsi Lim, Secretary to the Board & Commission Smith: As we typically do, I'd like to go around and introduce our staff and also our Board Members, starting with the Board. My name is Riley Smith. I'm the Chair. Pawasarat-Losalio: Andi Pawasarat-Losalio, Vice Chair. Taniguchi: Art Taniguchi, Board Member. Mukai: Dwayne Mukai, Board Member. Mellon -Lacey: Diana Mellon -Lacey, from Corporation Counsel. Takase: Gerald Takase, Director. Lim: Dorsi Lim, Secretary to the Board and Commission. Gonzalez: Good morning. Brandon Gonzalez, for the Department of Liquor Control. Armstrong: I'm Mike Armstrong, General Manager at Umekes restaurants. Hawaii County is an Equal Opportunity Provider and Employer Smith: Thank you very much. Place your cell phones on silent mode. We're recording this meeting so please remember a couple of things: speak one at a time so that the recording remains clear. The microphones in the room do not amplify your voice. They only record what is being said. II. Approval of Minutes Smith: Item No. II on the agenda is our approval of the minutes. The November 21, 2019, and December 5, 2019, meeting minutes were circulated via email on February 13, 2020. Do I have a motion to approve? Mukai: Move to approve. Taniguchi: Second. Mr. Mukai moved to approve the November 21, 2019, and December 5, 2019 meeting minutes; seconded by Mr. Taniguchi. Smith: Thank you, Dwayne and Art. Is there any discussion? There was no discussion from the Board Members. Smith: Hearing none, all those in favor say, "Aye." The Board Members voted "Aye." Smith: Any opposition? There was no opposition by the Board. Smith: Hearing none, motion carried. Thank you very much. The motion was carried unanimously. III. Hearings Smith: I'd like to propose that we take a number of items out of order to accommodate the folks that are in the room. I'd like to suggest that the following order for the items listed on the agenda start with No. 1, go to No. 6, No. 2, No. 3, No. 5, and finish with No. 4. Do I need a roll call vote, or do we need a motion, or just do it? Takase: You just do it. Smith: Okay, sounds good. The first item of business is No. 1 on our agenda. 1. CASE NO. 2020-001 (10:06 A.M.) In the Matter of the Accusation Against Umekes, LLC, dba Umeke's Alii Plaza, located at the Alii Plaza, 75-143 Hualalai Road, Building B, Suite Nos. B104 FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 2 and B105, Kailua-Kona, Hawai'i. This is an Informal Hearing (Alternative II) on violation of Rule 5-2 of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawai'i, State of Hawaii, for failure to have a person duly approved by the Department of Liquor Control as a Person in Active Charge of the premises. Michael Armstrong, General Manager, was present. Smith: Mr. Armstrong, please state your appearance for the record. Armstrong: Mike Armstrong, I'm the General Manager of Umekes, LLC. Smith: Thank you very much. Mr. Gonzalez, can you please read the Complaint and Accusation and the Answer to the Complaint. Gonzalez: Yes. Mr. Chair and Members of the Board, the Complaint and Accusation reads that on or about the 4th day of November 2019, in the County and State of Hawai'i, the Licensee, Umekes, LLC, dba Umeke's Alii Plaza, did fail to have a person duly approved by the Department Liquor Control as a person in active charge of the premises at all times while the premises was open for business to provide supervision in the exercise of the liquor license in accordance with the liquor laws, in violation of Rule 5-2 of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawai'i. The Licensee has selected Alternative II, they admitted the allegation and they waived their right to a hearing and appeal, but they request an informal hearing to present the circumstances surrounding the violation. Smith: Okay, thank you very much. Do I have a motion to find the Licensee in violation of the charge? Taniguchi: So move. Mukai: Second. Mr. Taniguchi moved that the Licensee in Case No. 2020-001, be found in violation of Rule 5-2 of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, Person in Active Charge; seconded by Mr. Mukai. Smith: Thank you. Motion by Art, second by Dwayne. Is there any discussion from Board Members? If not, I'd like to vote on the question. There was no discussion from the Board Members. Smith: All those in favor of the motion please say, "Aye." The Board Members voted "Aye." FEBRUARY 20, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 3 Smith: Any opposition? There was no opposition by the Board Members. Smith: Hearing none, motion carried. The motion was carried unanimously. Smith: Mr. Armstrong, prior to assessing a penalty, you may proceed with your presentation of the circumstances surrounding the violation. If you'd like to, go ahead. Armstrong: Thank you very much. First of all, the investigator, Stephen Frendo did a very thorough job in his report. I don't know if you all had a chance to read the report, but as you read on, you can see that we did not have a person (in charge) on that Monday when he came in. We immediately addressed the situation because we take it very seriously. We immediately took care of the situation and had every employee, that means everyone there, go to the class and get the card so we would be, certainly, covered at all times. What I believe happened is, there was an employee that was let go the previous week, I believe he called, maybe anonymously. It's odd that the following Monday the inspector would show up at this place with this guy knowing that the Manager would be off that day. He had a card and the Manager had a card. I do not, I'm not trying to get out of anything. I'm just saying it's my responsibility as General Manager, to make sure we were covered; but I was definitely caught off guard on that one, didn't think anything like that would've happened. Armstrong: But, the guy was captured on tape stealing from us, and we had no choice but to let him go. His comments were 'I'm going to call the Liquor Board because I didn't steal beer.' He didn't get it. He thought we caught him stealing beer, which we didn't even suspect him of, but that's what he was basically admitting to us. We thought 'oh, he was stealing beer, too.' And he goes 'no, no, no, you have no proof of that.' But, we did catch him red-handed scooping poke out and taking it home. We cannot have an employee like that and we had to let him go. That's stealing, we didn't prosecute him in any which way, and business is tough enough. We can't have food disappearing and this has been going on, evidently, for a while. So, we were investigating on our own. I believe he called and maybe made an anonymous complaint or tip, I don't know. It's odd that the next day, Stephen Frendo showed up there on that Monday. Yes, Sonia was off that day. The guy knew that Sonia would be off, too. Stephen didn't. He is very thorough. Armstrong: If you had a chance to read it, I think it even says in here, that we've already sent everybody to the class. Everybody has got a card now. We actually had them delivered by, think, Kalani Mills delivered them to the employees. It took a while, and I even checked because we didn't have the cards, and the Department said we're approved. All the people passed the class, they just didn't have the cards yet. We could have them work, which we did. As Umekes, we have no previous violations and we immediately took care of the situation. I apologize for being caught in the trap of not having somebody there at the time. We fired the guy the week before. We were in a violation, I admit to that. We did take care of the situation. That's all I really have. As I said to Brandon and you guys just now, Stephen Frendo, and I don't even know this guy, but he did a very thorough job of investigating. FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 4 Armstrong: We immediately supplied all the schedules of the employees and everything that we had that he requested. We gave it to him immediately. He made his determination from there. Smith: Thank you very much. Board Members, any questions? Pawasarat-Losalio: I have a question. How long did it take from the date that you received the violation until all of your staff were able to take the class? Armstrong: Well, we signed up for the class immediately. There wasn't a class that week, so I believe they came the following week for the class. They didn't have a class that week. But the first opening they had, we got in, and we sent them all. Pawasarat-Losalio: Okay, and did you discontinue liquor sales at the time that Sonia was not on duty? Armstrong: We did not discontinue because Sonia worked the entire time. We had her on constantly. She worked the extra hours. It's not like our liquor sales make or break that place. Our sales are so low down there, thirty dollars a day or something. Pawasarat-Losalio: How many employees, do you know? Armstrong: Down there, two, three, four. Four that work the front and we have two that work the back. Pawasarat-Losalio: Okay, thank you. Smith: Any other questions? There were no other questions from the Board Members. Smith: I have a couple of comments. Armstrong: Certainly. Smith: I agree, I thought the 'report was extremely thorough and comprehensive. Armstrong: Yes. Smith: I appreciate your staff being able to respond via email to all the questions for documentation and with schedules and all that. That's exactly what you should be doing. Just a couple suggestions: we're in the "determining the penalty phase" and going through these experiences is a learning experience for yourself and your organization and you always have the opportunity, when you enter this kind of situation, to call the Department to let them know what your circumstances are, ask for suggestions from them. I think one of the things they might have told you was that you could suspend liquor sales during that period, but still stay open and sell your products in your business. FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 5 Armstrong: Which we did on that Monday. Correct. Smith: And, looking at your sales from your receipts, I agree. You hardly have any liquor sales but you have a lot of poke sales. That's the majority of your business. I think many of us are very business -minded and want you to be successful in your business, so we're trying to provide you with alternatives to stay in business and keep your employees employed and paid for their families and their obligations, too. I think you'll find the Department will do the same thing, too. They'll try to help you as much as they can while staying within the rules. Armstrong: I have to say, the Liquor Department here has always been incredibly cooperative with us whenever we've needed to get an off-site permit or anything like that. The people that work in your office have been more than accommodating. We have the Pa'ina Room there, so if we get the approval from Colliers, which is the management company for the Queen Lili'uokalani Trust, and pay our $523 after taxes, we submit our information immediately to your Department and they are timely and very concise and have worked well with us. We've had a couple of times where a party has been sprung on us at the last minute and what are we going to do? I say, "Well, let's make it happen. Let's get on it right away, we need to get the money over to Colliers first off, we get the information into Stacie or Mary or whoever it is at the Department so they can get it approved." The Liquor Department here has been good to us. I appreciate that. Smith: Okay, and also, we acknowledge the efforts you tried to make to get somebody from your other location to come and cover the retail establishment. That didn't check all the boxes, but at least (you) tried to do something. But in the future, when you run into situations, you can always call the Department and I'm sure Brandon or Gerald can give you their cell phone numbers if you wanted to call them whenever. Armstrong: That's a good idea. Thank you. Smith: Any other questions from the Board Members? Takase: I did have one for Mr. Armstrong. Smith: Gerald? Takase: Your terminated employee did not callus. It was a standard check. Armstrong: Okay, it just seemed odd to me, you know, the timing thing. Takase: No, there wasn't... Armstrong: That's okay. Thank you for letting me know. I appreciate that. Smith: If no other comments, Mr. Gonzalez? There were no other comments from the Board Members. FEBRUARY 20, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 6 Gonzalez: Thank you. As far as this case goes, Mr. Armstrong is correct. This Licensee has had no previous violations, so they have a clean record. The original issuance of the license was April 30, 2015, for this location. For historical purposes, there have been twenty-two previous Rule 5-2 violations within the County within the last five years. The typical fines have been an imposition of a thousand -dollar fine with a certain portion suspended, usually five hundred to seven hundred and fifty suspended, based on the circumstances. In this case, Mr. Armstrong called the office and we spoke at length discussing his options. He did not want to contest the charge. He explained the circumstances. We will be recommending a $1,000 fine with $750 suspended, so $250 to be imposed. That takes into account their clean record, taking responsibility, full cooperation during the investigation, and unfortunate circumstances. Gonzalez: If you take a look, in the report, they only had two people listed as the persons in active charge and one of them had to be let go. That left them short-handed. We discussed this within the office. They are fortunate to have a Dispenser operation, so they brought someone from the Dispenser side to help in the Retail side. But, they're not a person in active charge for the Retail side. If they had called to let us know, that might have helped us to help them through the situation. We're taking into account, too, that they did their best in the situation and they immediately scheduled all their employees at that location for the next available class which was November 13, the following week. They've taken steps to remedy the situation and ensure that it does not occur in the future. Smith: Sounds good, thank you, Mr. Gonzalez. Mr. Armstrong, do you have any comments as to the proposed penalty? Armstrong: I, of course, would like it to be zero. But, two hundred and fifty is way better than a thousand, so I would accept that. The one thing that did come out of this, and I appreciate you bringing up the fact that we can call the Department and Brandon, is that I'm more aware of the situation now. If something like that happens, I would definitely make sure that we are covered before we terminate an employee. It was an oversight on my part, and I definitely take the responsibility for it. As General Manager, I have to. Smith: Okay, I appreciate that. Mukai: I move that we accept the recommendation of the Department. Taniguchi: Second. Mr. Mukai moved that the Licensee in Case No. 2020-001, be assessed a penalty in the amount of $1,000 with $750 suspended for one year from the date of service of the Decision and Order, on the condition that there be no similar violation of Rule 5-2 of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, Person in Active Charge, and that $250 is to be paid within thirty (30) days upon receipt of the Decision and Order; seconded by Mr. Taniguchi. Smith: Motion by Dwayne, second by Art. Any discussion? FEBRUARY 20, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 7 Mukai: I have a comment. Smith: Go ahead. Mukai: For a violation like this, I know in a perfect world you would like to have it zero. But, at two -fifty, seven -fifty to be suspended, that's very unusual. During my term on the Adjudication Board, I don't think I recall seven -fifty suspended, so this is again, in consideration of your good standings and what... Armstrong: I really appreciate it, and I know it is. Mukai: Thank you. Smith: Any other comments? There were no other comments from the Board Members. Smith: If not, call for the question. All those in favor say, "Aye." The Board Members voted "Aye." Smith: Any opposition? There was no opposition by the Board. Smith: Hearing none, motion carried unanimously. Thank you very much. The motion was carried unanimously. Smith: Mr. Armstrong, I have a question. When are you going to open your new location by Kona Brew? The parking at your other place is terrible. Armstrong: We have eleven parking spots there. When they redid the parking lot, even going back to when Collette's Framing was there, it was way different. It was way better than what it is now. When they redid the parking lot, they gave us eleven parking spots and with Umekes being there, it attracted other businesses and the place is full now. There may be one vacant spot, but the other tenants, and this is not to be negative, demand their parking spots. We've even had tenants come into the restaurant with a picture on their cell phones going around the tables asking (customers) 'is this your car? Is this your car?' I've had to ask them to leave, and they (say) 'well, they're in my spot.' It's not my concern, it's the concern of Colliers and they need to call them. It's an ongoing nightmare. Armstrong: The new place will have about a hundred parking spots which is one of the main reasons we're moving. We were delayed, big time, on getting our permit over a fire issue which was, not to make it a long story, but they changed the rules after we signed our lease, on the fire hydrants. It's a different Fire Chief that adopted a different fire rule; therefore, we wouldn't pass because the fire hydrants wouldn't cover a fifteen -foot corner of our restaurant. We had to get a variance and that took us eighteen months to get. FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 8 Smith: So, when are you going to open? Armstrong: So that put us behind. Getting back to your question, we're hoping May 1 st Smith: Okay, sounds good. Thank you very much. Good luck with your business. Armstrong: Thank you, guys. Smith: A written Decision and Order will be prepared and served upon the Licensee, which will be due and payable within thirty (30) days of its receipt. Armstrong: Okay. Smith: Thank you very much, Mr. Armstrong. Armstrong: That will be mailed to the... Gonzalez: We will hand -deliver it to the location. Armstrong: To the Ali'i Plaza? Gonzalez: Yes, and it has to be signed for there. Armstrong: Okay. Thank you very, very much. Smith: We will go to No. 6. Takase: Well, go to No. 5 since he's here. Smith: Okay. There was a discussion on the order of business. Smith: We're going on to Case No. 2020-005. 5. CASE NO. 2020-005 (10:24 A.M.) In the Matter of the Accusation Against O&J LLC, dba Waikoloa Restaurant and Bar (now Johnny's at Waikoloa Village), located at 69-1790 Melia Street, Waikoloa, Hawai'i. This is an Informal Hearing (Alternative II) on violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawai'i, State of Hawai'i, for failure to submit its payment of percentage fees due for the license year by November 15, 2019. Wilson Palomo, Manager, was present. Smith: Sir, would you please state your name for the record? FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 9 Palomo: I'm Wilson Palomo. I'm the Manager for O&J. Gonzalez: Would you mind spelling your last name for the record? Palomo: Last name is P -A -L -O -M -O. Gonzalez: Thank you. Smith: Mr. Gonzalez, can you please read the Complaint and Accusation and the Answer to the Complaint? Gonzalez: Thank you. The Complaint and Accusation, in this case, reads that on or about the 15th day of November 2019, in the County and State of Hawaii, the Licensee, O&J LLC, dba Johnny's at Waikoloa Village, formerly known as Waikoloa Restaurant & Bar, did fail to submit its payment of percentage fees due for the license year by November 15, 2019, in violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawai'i, State of Hawaii. The Licensee, in this case, has selected Alternative II. They wish to admit to the allegation. They waive their right to a hearing and appeal and they wish to explain the circumstances for the violation. Smith: Thank you very much. May I have a motion to find the Licensee in violation of the charge? Mukai: So move. Taniguchi: Second. Mr. Mukai moved that the Licensee in Case No. 2020-005, be found in violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, Failure to Submit Percentage Fees; seconded by Mr. Taniguchi. Smith: Thank you, Dwayne and Art. Any discussion? There was no discussion from the Board Members. Smith: Hearing none, all those in favor say, "Aye." The Board Members voted "Aye." Smith: Any opposition? There was no opposition by the Board Members. Smith: Hearing none, motion is carried. Thank you very much. The motion was carried unanimously. FEBRUARY 20, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 10 Smith: Prior to assessing a penalty, we're in the penalty phase now, you may proceed with your presentation of the circumstances surrounding the violation. Palomo: At the end of September last year, my partner decided to sell back to the original owner, Ophelia (Shively). That made me decide to also stay out of the business. There was a transition period and I was the only one who was in a capacity to provide financial records, all the records they wanted. I was the only one doing it, as well as bartending and cooking. I did everything as we were shorthanded. They started cleaning my office and they told me they were going to put everything in the files. In that process, I neglected going over the files. I usually (have them) on my desk, so it was my oversight to go over those files again because they keep coming on my desk. I just didn't have the time until one of your inspectors came and said that we are in violation. That's when I remembered that, and we paid it right away. But, we are in violation, we agree on that. I'm really sorry. I meant no disrespect or to disregard the law or rules. I'm sorry. Smith: Okay, thank you very much. Do the Board Members have any questions of the Licensee? Dwayne, go ahead. Mukai: Has the email address changed? I see that there were three emails sent out to remind the business of the deadline, but there was no response. Palomo: One is waikoloarestobar(o)-yahoo.com, and my personal email is wilsonpalomo(d_)yahoo.com. Mukai: Of the three emails that were sent on October 2nd, November 7th, and November 15tH who reads them? Palomo: The new owner, Ophelia Shively. I have access to that also. Mukai: No one read the emails that were sent prior? The three emails? Palomo: I don't know the third one. Mukai: According to our report, email notification was sent on October 2nd , November 7th, and amount due on November 15th. Then the Department actually called and left a message on your phone. Palomo: I'm not aware of a call. Mukai: Okay, thank you. Smith: Any other questions? There were no other questions from the Board Members. Smith: Hearing none, Mr. Gonzalez? FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 11 Gonzalez: Mr. Chair, as to the Department recommendation for the penalty, in this case, the Department is recommending a $100 fine to be paid within thirty days upon receipt of the Decision and Order for said violation, payable to the Department of Liquor Control. This recommendation takes into account the fact that this Licensee has had no previous violations, that they did ultimately pay their percentage fee within one week of the voice message reminder on November 18, they paid their $2,105.68 percentage fee to the Department, (and) after speaking with Wilson this morning, explaining the circumstances and how he may have been a bit overwhelmed and disorganized in having to take care of the reporting. Since that time, he told me, they've hired a person to take care of the paperwork and the accounting. This should not occur in the future. Smith: Mr. Palomo, do you have any questions or comments? Palomo: Not for that. I just want to make sure that (you know) I did not disrespect or totally ignore the communication. I'm just overwhelmed with my tasks, it's so much. Smith: Thank you very much. Do I have a motion on the penalty? Mukai: Mr. Chair, I move that we accept the recommendation of the Department. Smith: Okay, is there a second? Taniguchi: Second. Mr. Mukai moved that the Licensee in Case No. 2020-005, be assessed a penalty in the amount of $100 to be paid within thirty (30) days upon receipt of the Decision and Order for said violation, payable to the Department of Liquor Control; seconded by Mr. Taniguchi. Smith: Okay, any questions? Taniguchi: I have a question for Mr. Gonzalez. Smith: Sure, go ahead, Art. Taniguchi: Is there a percent guideline that we use for instances like this? In other words, the amount that wasn't paid on time was $2,100 something, correct? Gonzalez: Correct. Taniguchi: So, is there a percentage, like 3%, 5%? Do we have any kind of guidelines like that? Gonzalez: I see what you're saying. Taniguchi: Is there any kind of guideline like that? Gonzalez: No, we do not have any. FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 12 Taniguchi: So, why the hundred dollars? That's my question. In other words, if the amount due was $10,000 and the situation was the same, would it still be a hundred dollars? I just want to understand how the hundred dollars (was determined). Gonzalez: What I looked at, in this case, and spoke with the Director (about), was the failure to file your sales report fine. In our rules it's specified as a one hundred dollar fine. This is a little different because this is actually having to pay the monies owed to the Department, so it's a little more serious. I was using that as a starting point. Starting at a hundred dollars as my floor, I was looking at the nine prior cases in the last five years where people failed to pay their percentage fee, and some of those fines were up to two thousand because people closed up shop and skipped town without paying. Those circumstances are different. That's why I took into account the circumstances of the situation for this Licensee, and I didn't factor in the percentage that was due. Although we could in the future. Takase: In the past, prior to my being the Director, I believe it was set by Corp. Counsel. We did try that method, charging a percentage of the percentage fee due; but to try and write it out and account for all the variables; it was getting unwieldy. At first, we charged a percentage, a ten percent penalty, it seemed easy enough. But if it was a day late or really late, that changed it. We attacked it from the other side. We try to make sure that everybody pays on time and from our side, I'll make sure that they get some notice so that I don't have a situation where someone would say they totally forgot. That's not an excuse. I'll have the girls call several times to make sure that we've given them a chance to pay on time. Takase: We've done pretty well. When I started, we probably had 30 to 50 late payments, but now we're down to usually less than five. It has worked and most of them, if they communicate with us during that time, some have legitimate excuses, but if they speak with us, we'll try to give them a break. We look at their past records. We haven't had a lot of problems. It's been different ones, no chronic late payers. We had a couple of chronic ones, but they've shaped up and they said they appreciated us helping them through their rough times and now they pay on time. It works. Taniguchi: It's because my background is in lending. So, you know you have to pay, we hope that everybody pays on time, but the reason I brought it up, not so much for this one because it's a small amount, like only four percent; but in the future to make decisions, it's easier to justify if you have something to follow. Even if they paid it ten days late or whatever, if the amount is a million dollars, is it still going to be a hundred bucks? Just being kind of facetious, but that's basically why I was trying to figure out how we can... Takase: The other thing is, we're capped at two thousand dollars for a penalty, so we can't go above that. Taniguchi: Just to have something to follow rather than a subjective thing, for me, is... I just wanted to understand the process. That was my question all the time. It's what I would ask my people when they come with their recommendations, what's the justification? If they say it's because the last guy owed us so much and this guy owes us this much, but paid... it's just that it's easier to back yourself up with a ... that's why I ask the question. I don't have a problem with the hundred dollars in today's (case). FEBRUARY 20, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 13 Smith: Any other comments? I support Mr. Taniguchi's comments. I think it would be good to have guidelines so that there's a rationale ... I understand that in the provisions on payment we allow two-part payments so you could pay half by November 15, and half by January 15. It's great that you're given that latitude. I spoke with the Director and he mentioned that sometimes you make other accommodations. I think that's important, but there needs to be a rationale. If Mr. Palomo had only paid half by November 25th, and he paid the balance by January 15tH I think the penalty should be something different. I have no problem with what we're proposing here, but I think it would be good to have some kind of nexus for how we make decisions so it's not as arbitrary. Any other comments? There were no other comments from the Board Members. Smith: If not, all those in favor say, "Aye." The Board Members voted "Aye." Smith: Any opposition? There was no opposition by the Board Members. Smith: Hearing none, the motion is carried unanimously. The motion was carried unanimously. Smith: Wilson Palomo, a written Decision and Order will be prepared and served upon the Licensee, which shall be due and payable within thirty (30) days of its receipt. Any questions? There were no questions from Mr. Palomo. Palomo: I just want to thank you. Mukai: I have an "after motion comment." What's interesting, Mr. Palomo, is that you went through the process and I appreciate you coming here. You saw the previous situation that we addressed, and what's good to keep in mind is that the Department works with all of you. Whenever there's a question, by all means, call the Department and they'll be more than willing to help you address the situation you have. People don't realize that the Department is not an adversary. They would work with you and help you the best they can. Palomo: Yes, I believe that. Smith: Shall we go on to Item No. 2? Gonzalez: Yes, Mr. Chair. Smith: Case No. 2020-002. FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 14 2. CASE NO. 2020-002 (10:38 A.M.) In the Matter of the Accusation Against Carl & Amy's Naalehu, LLC, dba Wiki Wiki Mart #7 (Naalehu), located at 95-5591 Mamalahoa Highway, Na'alehu, Hawai'i. This is an Informal Hearing (Alternative 1) on violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawai'i, State of Hawai'i, for failure to submit its payment of percentage fees due for the license year by November 15, 2019. Smith: Mr. Gonzalez, please read the Complaint and Accusation and the Answer to the Complaint. Gonzalez: Thank you, Mr. Chair. The Complaint and Accusation, in this case, reads that on or about the 15th day of November 2019, in the County and State of Hawaii, the Licensee, Carl & Amy's Naalehu, LLC, dba Wiki Wiki Mart #7 (Naalehu), did fail to submit its payment of percentage fees due for the license year by November 15, 2019, in violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawai'i, State of Hawai'i. The Licensee, in this case, has selected Alternative I. They stipulate to the violation, they admit to the violation, they waive their right to be present at the hearing, and state that discipline can be imposed without their presence, and request an informal hearing for the discipline to be imposed. Smith: Thank you very much. May I have a motion to find the Licensee in violation of the charge? Mukai: So move. Taniguchi: Second. Mr. Mukai moved that the Licensee in Case No. 2020-002, be found in violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, Failure to Submit Percentage Fee; seconded by Mr. Taniguchi. Smith: Thank you, Dwayne and Art. Any discussion? There was no discussion from the Board Members. Smith: If not, all those in favor say, "Aye." The Board Members voted "Aye." Smith: Any opposition? There was no opposition by the Board Members. FEBRUARY 20, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 15 Smith: Hearing none, the motion is carried unanimously. The motion was carried unanimously. Smith: Mr. Gonzalez, please provide the Department's recommendation for penalty in the case. Gonzalez: The Department is recommending a $100 fine to be paid within thirty (30) days. The Licensee has no previous violations and has a clean record. The Licensee paid the fine of $2,952.89 after being notified by phone that they were late. The Licensee explained that they were busy opening their new location at Kawailani and the payment of the percentage fee for the N5'Alehu location just fell through the cracks and they apologized. Smith: Can I have a motion on the penalty? Mukai: Yes, Mr. Chair. I move that we accept the recommendation of the Department. Taniguchi: Second. Mr. Mukai moved that the Licensee in Case No. 2020-002, be assessed a penalty in the amount of $100 to be paid within thirty (30) days upon receipt of the Decision and Order for said violation, payable to the Department of Liquor Control; seconded by Mr. Taniguchi. Smith: Thank you, Dwayne and Art. Any discussion? Brandon, similar to the comments on the previous case, create some rationale. Being due on the 15th and paying on the 19th, that's like due on the 15th and paying the 25th; I think that's fine. But, if it took a month to pay, there should be some difference. Takase: Mr. Chair, the Department has some rationale for the recommendation. That was what he was reading to you. Gonzalez: They have a clean record, they paid within a week of being told, and they took responsibility and apologized. Smith: Okay, I'm good with that. Any comments or questions? There were no comments or questions from the Board Members. Smith: If not, all those in favor say, "Aye." The Board Members voted "Aye." Smith: Any opposition? There was no opposition by the Board Members. Smith: Hearing none, motion carried unanimously. FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 16 The motion was carried unanimously. Smith: A written Decision and Order will be prepared and served upon the Licensee, which shall be due and payable within thirty (30) days of its receipt. Thank you very much. Smith: Case No. 2020-003. 3. CASE NO. 2020-003 (10:42 A.M.) In the Matter of the Accusation Against Chapter 27, LLC, dba Chapter 27, LLC, located at 216 Kamehameha Avenue, Hilo, Hawaii. This is an Informal Hearing (Alternative 1) on violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, for failure to submit its payment of percentage fees due for the license year by November 15, 2019. Smith: Mr. Gonzalez, please read the Complaint and Accusation and the Answer to the Complaint. Gonzalez: Mr. Chair, the Complaint and Accusation reads that on or about the 15th day of November 2019, in the County and State of Hawaii, the Licensee, Chapter 27 LLC, dba Chapter 27 LLC, did fail to submit its payment of percentage fees due for the license year by November 15, 2019, in violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii. The Licensee has selected Alternative I, admitting to the allegation stipulating that disciplinary action may be taken on this Complaint and Accusation without them being present, and they fully and knowingly waive their right to a hearing and appeal. Thank you. Smith: May I have a motion to find the Licensee in violation of the charge? Mukai: So move. Taniguchi: Second. Mr. Mukai moved that the License in Case No. 2020-003, be found in violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, Failure to Submit Percentage Fee; seconded by Mr. Taniguchi. Smith: Thank you, Dwayne and Art. Any discussion? There was no discussion from the Board Members. Smith: If not, all those in favor say, "Aye." The Board Members voted "Aye." FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 17 Smith: Any opposition? There was no opposition by the Board Members. Smith: Hearing none, the motion carried unanimously. Thank you very much. The motion was carried unanimously. Smith: Mr. Gonzalez, please provide the Department's recommendation for penalty in the case. Gonzalez: The Department is recommending a $1,000 fine. The rationale for the recommendation is that the Licensee has a prior violation from 2019 for unlicensed liquor where they were fined $1,000. They have a record. Additionally, as of January 1, 2020, the premises has closed for business. They were evicted by their landlord. They've had issues in the past and the Department has been working with them as they were trying to get up to date with their State tax clearances, and also for money owing to their suppliers and wholesalers. We're not asking for the $2,000 fine at this point, because of the $2,791.68 that was due on November 15th, they paid $500 towards that on January 13, 2020. They still owe us $2,291.68 to date. The Department has prioritized getting the percentage fee paid to it higher than collecting the fine. Also, making sure that once they pay us our percentage fee, they actually pay the debts they owe to the other businesses and their suppliers. That's also in the rationale for the $1,000 fine. The Licensee is no longer operating; they're closed. I'm open to any other questions. Taniguchi: What happens, do they still have to follow the rest of the rules? What happens to the inventory, and does that have to be reported? Gonzalez: Yes, and as part of the closing, they have to submit documents, meaning the inventory and what's happening to it. Then, they have to submit other closing documents like the sales up to the point of closing so that we can calculate what they owe as well. Taniguchi: So, in the event that these amounts aren't paid, does that exclude the Licensee from coming back to apply for another license? Gonzalez: It will definitely factor into a Liquor Commission's decision on whether the individual is fit to have a license. It also has an impact on the current liquor license that hasn't been exactly cancelled yet. The license can't be sold or transferred because there are pending violations on it. It cannot be transferred until all of these matters with the Department are cleared up. There has been one inquiry from someone for the space, saying they wanted to take over the space and open a restaurant in there. We had to notify them that the space won't come with the liquor license until certain matters are taken care of. Taniguchi: Thank you. Smith: I had a question. I think it's admirable that you try to make sure that this company that's gone out of business pays its vendors and everything. How do you encourage them to do that? FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 18 Takase: We've had them on life support for a while and I've spoken with the vendors about it, saying that if we close them down, which we could have, everybody's going to lose. Since about September or maybe even August, they have been making some payments. I think they've brought a couple of them current. Gonzalez: They did. Takase: But they still owe others money. At that time, I told them that they needed to pay us, but they need to pay their vendors also if they're going to stay in business. He was trying to get there, and we probably carried him longer than we would've a normal business, but it was just my feeling that if I shut him down, nobody's going to get paid anything and we'd all lose. He was always of the opinion that if he was given a chance, he'd do something. Up until January of this year, he was trying to make payments. He's asked what was going to happen. I told him that if he paid up all his bills, we'd carry him. We wouldn't cancel his license just because of that. He'd be getting more fines because of it, but (being) a young person trying to make (a go of) it, we were trying to give him a chance. That was our primary goal, to not beat everybody out. If he had just walked away from it all, probably, everybody would lose. Takase: I told him that I felt I should shut him down to save him from himself because he seemed to be racking up more bills. He said 'no, just give me a chance and hopefully I can come out of it.' From what we could see, at least on the weekends, he was pretty busy. There was a chance for him to make some money back. But he understands that he needs to clear everything before we would let him back in the business or sell his license. Even after he closed, we received an email the other day asking to know all that he owed. He's still keeping in contact with us and trying to do something. Smith: Kind of a related question, by not revoking his license, is there still some value to that? That he could assign it to a subsequent lessee of this location so they can start this business? So there's value there? Takase: Yes, there's some value to it. Usually, what happens in those kinds of cases, they get the new licensee to pay up all their debts for them. If they were smart about it, you'd think the new licensee would say'I'II just apply for my own.' It doesn't hurt us to hold it in limbo for now and if it makes them pay it up, then so be it. Smith: Sounds good, any further questions? Mukai: Mr. Chair, I move that we accept the recommendation of the Department. Taniguchi: Second. Mr. Mukai moved that the Licensee in Case No. 2020-003, be assessed a penalty in the amount of $1,000 to be paid within thirty (30) days upon receipt of the Decision and Order; seconded by Mr. Taniguchi. Smith: Thank you, Dwayne and Art. Any discussion? FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 19 There was no discussion from the Board Members. Smith: If not, all those in favor say, "Aye." The Board Members voted "Aye." Smith: Any opposition? There was no opposition by the Board Members. Smith: Hearing none, motion carried unanimously. The motion was carried unanimously. Smith: For the record, a written Decision and Order will be prepared and served upon the Licensee, which shall be due and payable within thirty (30) days of its receipt. Thank you very much. Gonzalez: Mr. Chair, we can take number six since it's a straight forward Alternative I. For item number four, no one will be present for that, but there will be exhibits and more procedural steps for that one. If you take that at the end, it may be better. Smith: Case No. 2020-006. 6. CASE NO. 2020-006 (10:52 A.M.) In the Matter of the Accusation Against SNS LLC, dba Aloha Vista Bar & Grill, formerly located at 78-7000 Alii Drive, Kailua-Kona, Hawaii. This is an Informal Hearing (Alternative 1) on violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, for failure to submit its payment of percentage fees due for the license year by November 15, 2019. Smith: Mr. Gonzalez, please read the Complaint and Accusation and the Answer to the Complaint. Gonzalez: The Complaint and Accusation, in this case, reads that on or about the 15th day of November 2019, in the County and State of Hawaii, the Licensee, SNS LLC, dba Aloha Vista Bar & Grill, did fail to submit its payment of percentage fees due for the license year by November 15, 2019, in violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii. The Licensee, in this case, has selected Alternative I, admitting to the allegations, stipulating that disciplinary action may be taken on this Complaint and Accusation without their presence, and waiving their right to a hearing and appeal. Thank you. Smith: Thank you very much. May I have a motion to find the Licensee in violation of the charge? FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 20 Mukai: So move. Taniguchi: Second. Mr. Mukai moved that the Licensee in Case No. 2020-006, be found in violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, Failure to Submit Percentage Fees; seconded by Mr. Taniguchi. Smith: Thank you, Dwayne and Art. Any discussion? There was no discussion from the Board Members. Smith: If not, all those in favor say, "Aye." The Board Members voted "Aye." Smith: Any opposition? There was no opposition by the Board Members. Smith: The motion is unanimously carried. Thank you very much. The motion was carried unanimously. Smith: Mr. Gonzalez, please provide the Department recommendation for penalty in this case. Gonzalez: Mr. Chair, the Department is recommending a $100 fine as part of a settlement agreement with the Licensee. There was a change in ownership; one owner going out and a new owner coming in. The owner going out said they would take care of the percentage fees that were owed while they owned it. As part of helping them, and working with them, and their willingness to work with us, we decided for a hundred dollar fine and they have paid it already. They did that as part of their closing. That, also, is what drove us to recommend a hundred dollars in other cases, to be consistent. Gonzalez: Since these people ultimately paid the percentage fee, and this gentleman called and even though he was already done, he (admitted) that he missed the deadline and he would pay the fine for it. So, we set it at a hundred dollars so he could close up the business, wipe his hands of it and move on. They owed $1,809.55 which they paid by a hand -delivered check on November 20th, within five days. They had no previous violations at the location, and as I said, as part of a settlement agreement with the Department to assist them with their closing, we agreed to a hundred dollar fine, subject to your ratification. Smith: So, we're validating or confirming what's already be done? Gonzalez: Yes. FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 21 Smith: Okay, do I have a motion? Mukai: Yes, Mr. Chair. I move that we accept the actions of the Department. Taniguchi: Second. Mr. Mukai moved to ratify the settlement agreement between the Licensee in Case No. 2020-006, and the Department of Liquor Control of the County of Hawaii, State of Hawaii, assessing the Licensee a penalty in the amount of $100, as paid on November 20, 2020; seconded by Mr. Taniguchi. Smith: Thank you, Dwayne and Art. Any discussion? There was no discussion from the Board Members. Smith: All those in favor say, "Aye." The Board Members voted "Aye." Smith: Any opposition? There was no opposition by the Board Members. Smith: Hearing none, motion carried. Thank you very much. The motion was carried unanimously. Smith: A written Decision and Order will be prepared and served upon the Licensee, which shall be due and payable within thirty (30) days of its receipt. Moving on to the last item, No. 4, which is mainly a "documentation exercise," right? Gonzalez: Yes. Smith: Case No. 2020-004 4. CASE NO. 2020-004 (11:00 A.M.) In the Matter of the Accusation Against Daylight Mind, Inc., dba Daylight Mind, formerly located at the Queens' MarketPlace, 69-201 Waikoloa Beach Drive, Space J1, Waikoloa, Hawai'i. It is my understanding that after a diligent search by the Department, the Licensee, in this case, cannot be found, resulting in this matter defaulting to Alternative III, Formal Hearing pursuant to Rule 1.8(d). This is for violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawai'i, State of Hawaii, for failure to submit its payment of percentage fees due for the license year by November 15, 2019. FEBRUARY 20, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 22 Smith: Mr. Gonzalez, please read the Complaint and Accusation and the Answer to the Complaint. Gonzalez: The Complaint and Accusation, in this case, reads that on or about the 15th day of November 2019, in the County and State of Hawai'i, the Licensee, Daylight Mind, Inc., dba Daylight Mind, did fail to submit its payment of percentage fees due for the license year by November 15, 2019, in violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawai'i, State of Hawaii. There is no answer to the Complaint, since the Licensee, to the knowledge of the Department, has left the jurisdiction. By default, it moves to Alternative III. Gonzalez: Mr. Chair, my offer of proof of sufficient notice, in this case, would be as follows if you would allow me. Smith: Yes, go ahead. Gonzalez: I would like to submit as Exhibits 1 A, 1 B, and 1 C. One set is yours, Dorsi, and one set is for the Chair. Exhibits 1 A, 1 B, and 1 C were entered and provided to Mr. Smith. Gonzalez: The Exhibits are the Department's efforts to contact Mr. Colin Finn, the owner of Daylight Mind. Exhibit 1A, for the record, is the timeline of us contacting Mr. Colin Finn from October 18th in person, notifying him to pay his percentage fees, all the way through November 7, 2019, where we did a residence check, and the neighbors said that (Mr.) Finn moved out and moved to Australia. The Department also attempted to notify Mr. Finn via certified mail, and that is Exhibits 1 B and 1 C. The ones accepted into evidence, those are returned certified mail documents that we mailed out on January 29th with the Complaint and Accusation; returned to our office on February 7, 2020. You will note that we mailed it to the last known place of business and also his last know residential address. Gonzalez: The Department also emailed Mr. Finn at his last known working email, a copy of the Complaint and Accusation, on or about January 29, 2020. There has been no response. Smith: Did you want to go over the other Exhibits, too? Gonzalez: For the Exhibits relating to us providing him sufficient notice of the hearing, that's all I want to do now. Exhibit 2 will be for the basis of the violation. Smith: There's another Daylight Mind on Ali'i Drive, right? Gonzalez: Yes. Smith: Are you going through similar gyrations on that location? Takase: No, he sold it and they followed the proper procedures. Everything was paid up in that case. We missed this. When I spoke with him about it, he said he just needed to sell that location to capitalize on the location. The next thing I know, he was gone. FEBRUARY 20, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 23 Gonzalez: Yes, so the Director is correct. This was unfortunate because the investigators spoke with him about a week before the deadline. He said he would mail it in the next week. This is the reason why, when a Licensee says they'll pay now, we tell the investigators to take it. Further information for the Ali'i Drive location, the current owner, Papa Kona Coffee, wanted to do a transfer, but they came in for an original, I believe, because the negotiations between Mr. Finn and them suddenly broke down. We have an investigation that was concluded for a similar violation for failing to pay the percentage fee for that location. Smith: For the new Licensee? Gonzalez: No, for Daylight Mind, that location. But, we weren't able to get the investigation completed in time for this meeting. That report just came in a few weeks ago. Smith: As a general overview, for these kinds of situations when the guys skip town, the Department's goal is to just get a judgment so that we have a case against them should he ever try to be an applicant again? Gonzalez: We're trying to document all of the happenings in case he comes up in the State again applying for a license. Smith: Just another comment, in looking at the report, I was surprised at how little their percentage rent was for a Queens' MarketPlace location that I would tend to think would have high liquor sales. Other businesses in there, if you think about Sansei, those places are jamming, and these guys were paying less than percentage rent than some of these other locations that are more like retail. It just seemed strange that it was so low. Smith: Do I need to administer an oath to any witness? Takase: No. Smith: Okay, you submitted all the evidence? Gonzalez: As long as the Board accepts into evidence Exhibits 1 A, 1 B, 1 C, and Exhibit 2... Mukai: Mr. Chair, I move that we accept the Exhibits as presented. Taniguchi: Second. Mr. Mukai moved to accept Exhibits 1A, 113, 1C, and Exhibit 2 into evidence as presented; seconded by Mr. Taniguchi. Smith: Thank you, Dwayne and Art. Any discussion? There was no discussion from the Board Members. Smith: Hearing none, all those in favor say, "Aye." The Board Members voted "Aye." FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 24 Smith: Motion carried. Thank you very much. The motion was carried unanimously. Smith: Mr. Gonzalez, please present your evidence. Gonzalez: Long story short, he owed us money on the 15th. He told us that he would be sending in a check, and shame on us, the check never came and when we tried to go to his location to find him, his physical location for the store and his residence, he was gone. He owed us $817.21. On October 21, 2019, the investigators met with him to notify him of closing documents he needed to provide to our Department because there was an article saying he was closing the location. He just up and left. Since December 15, 2019, when his phone was disconnected, there's been no other contact with him. Gonzalez: Exhibit 2 is the complete investigator's report detailing what I just summarized for you. He was supposed to pay by November 15th but he didn't. And I rest on the submission of Exhibit 2 and my summary. Smith: Okay. I need a motion to close the hearing. Is that where we're at? Gonzalez: Yes. Smith: Do I have a motion to close this hearing? Mukai: So move. Taniguchi: Second. Mr. Mukai moved to close the public hearing; seconded by Mr. Taniguchi. Smith: Thank you, Dwayne and Art. Any discussion? There was no discussion from the Board Members. Smith: If not, all those in favor say, "Aye." The Board Members voted "Aye." Smith: Hearing no opposition, motion carried unanimously. The motion was carried unanimously. Smith: At this point, we're going to deliberate in open session, taking upon all the findings of the facts. We may recess to allow Board Members to review the facts or we could continue the matter to allow more time for consideration. You may also ask both Counsels to submit their findings, to request minutes for the hearing to assist in decision-making. I don't think we need to do any of that right now. FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 25 Smith: Decision-making requires motions to approve ... so all four of these motions, the Decision, Finding of Fact, Conclusions of Law, Decision and Order? Pawasarat-Losalio: We need to make the decision to find if they're in violation. Smith: Are you going to propose those, Brandon? Gonzalez: Yes. Smith: We need to enter into the record the decision. Takase: Mr. Chairman, I suggest finding them in violation... Gonzalez: ...and we'll prepare the finding of facts. Takase: Yes, give us time and we'll prepare the finding of facts. Smith: That's a future meeting? Gonzalez: Yes, and you can adopt it at the next meeting. Smith: Okay. I need a motion to find the Licensee in violation as presented. Mukai: So move. Taniguchi: Second. Mr. Mukai moved that the Licensee in Case No. 2020-004, be found in violation of Rule 3-6(C) of the Rules and Regulations of the Liquor Commission of the Department of Liquor Control of the County of Hawaii, State of Hawaii, Failure to Submit Percentage Fees; seconded by Mr. Taniguchi. Smith: Dwayne, Art, thank you very much. Any discussion? There was no discussion from the Board Members. Smith: If not, all those in favor say, "Aye." The Board Members voted "Aye." Smith: Any opposition? There was no opposition from the Board Members. Smith: Hearing none, motion carried unanimously. The motion was carried unanimously. FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 26 Smith: Mr. Gonzalez, I believe you're going to provide your recommendation at a future meeting? Is that accurate? Gonzalez: Yes. Smith: There's no penalty, so there's no motion. Gonzalez: At this time. Takase: Why don't we adopt the penalty with the finding of facts? Gonzalez: Okay. Smith: So that's future? Gonzalez: Future. Smith: Okay, that was the last item on our agenda. VI. New Business Smith: Brandon, is there any new business? Gonzalez: No, Mr. Chair. VII. Announcements Smith: Future meetings; we're not going to have a meeting in March, and we may have a meeting April 16, 2020, location to be determined. Pawasarat-Losalio: I won't be here on April 16. Smith: Okay, any comments or questions? Geri is still on until March? What's her disposition? Takase: Yes, her last meeting would have been March, but we're not having a meeting. Smith: Is the Mayor's Office looking for a... Gonzalez: Mr. Director, adjourn? Mukai: So move. Taniguchi: Second. Mr. Mukai moved to adjourn; seconded by Mr. Taniguchi. Smith: Moved and seconded, all those in favor say, "Aye." FEBRUARY 20, 2020 - LIQUOR ADJUDICATION BOARD MINUTES 27 The Board Members voted "Aye." There was no opposition from the Board Members. Smith: Motion carried. Thank you very much. The motion was carried unanimously. The meeting adjourned at 11:10 A.M. G rald Takase Director The February 20, 2020, meeting minutes were approved as circulated via e-mail/mail on May 14, 2020, by the Liquor Commission of the County of Hawaii, on May 21, 2020. FEBRUARY 20, 2020 -LIQUOR ADJUDICATION BOARD MINUTES 28