MINUTES OF THE MEETING OF THE UTAH ALCOHOLIC BEVERAGE CONTROL COMMISSIONHELD TUESDAY, JUNE 28, 2016, AT 1625 SOUTH 900 WEST, SALT LAKE CITY, UTAH.

[Copies of the proposed agenda for this meeting were emailed to all persons on the regular email list (a copy of which is located in the front of the minute book) and to all of the individuals and groups on the agenda (applicants, those with violations, etc.) on Wednesday, June 22, 2016. A copy of the final agenda was posted on the bulletin board at the DABC Administrative Office, emailed to the Salt Lake Tribune and the Deseret News, and posted on the Utah Public Notice Website by10:00 a.m. on Monday, June 27, 2016.]

Chairman John T. Nielsen called the meeting to order at 10:00 a.m.

Commissioners Present: John T. Nielsen, Jeff Wright, Amanda Smith, and Steven Bateman.

Staff Present: Sal Petilos, Director; Cade Meier, Deputy Director; Nina McDermott, Compliance, Licensing and Enforcement Director; and Man Diep, Finance Director.

Also Present: Sheila Page, Asst. Attorney General.

PLEDGE OF ALLEGIANCE:

Chris Johnson led the group in the Pledge of Allegiance.

APPROVAL OF MINUTES:

Upon motion of Mr. Wright, seconded by Ms. Smith, it was unanimously voted to approve the minutes of the Commission Meeting held May 24, 2016.

ANNOUNCEMENTS:

Mr. Nielsen made the following announcements:

a. Proposed Future Meeting Schedule: (subject to change)- Tuesday, July 26, 2016

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- Tuesday, August 30, 2016

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b. Holiday Closure: - Monday, July 4, 2016 (Independence Day)

Liquor stores and the DABC administrative office and warehouse will

be closed.

- Monday, July 25, 2016 (Pioneer Day)Liquor stores and the DABC administrative office and

warehouse will be closed.

VIOLATIONS:* Referral Source – State Bureau of Investigation (SBI)

a. Consent Calendar:

[The following Consent Calendar items include uncontested letters of admonishment (written warnings) and settlement agreements that have been agreed to and accepted by the licensees. They are considered as a block with one vote unless one of the commissioners request that any item be removed for individual discussion. A summary of consent calendar items was distributed to the commissioners and is attached and made part of these minutes.]

(1) Osaka Sushi Japanese, Tooele, and Shiloh*SBI (RL)Vigil (employee).

(2) Shoots Chinese Restaurant, Provo, and *SBI (RL)Jasmine Chan (employee).

(3) William Ingram, employee of North Fork *SBI (RE)Table and Tavern, Eden.

(4) Pawit’s Royal Thai Cuisine, Salt Lake, and *SBI (RL)Issarangkool Chook (employee).

(5) Nuch’s Pizzeria, Salt Lake, and Clare *SBI(RL)

Keenan (employee).

(6) Aragosta, Restaurant, Ivins, and Raymond *SBI(RL)

Wilkerson (employee).

(7) Don Pedro’s Mexican Restaurant, Heber, *SBI (RE)and Aide Torres-Almanza (employee).

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(8) Don Pedro’s, Vernal, and Emma Edmond *SBI (RE)(employee).

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(9) Edge Steakhouse & Drafts @ Westgate *SBI (RE)Resort, Park City, and Regie Gonez (employee).

(10) Goodwood Barbecue, Draper, and James *SBI (RE)Goodro (employee).

(11) Hyatt Place Cottonwood, Salt Lake, and *SBI (RE)Jonathon Hill (employee).

(12) It’s Tofu, Midvale, and Brittany Bowling *SBI (RL)(employee).

(13) Mojo’s Restaurant, Park City, and James *SBI (BE)Totora (employee).

(14) O’Shucks, Park City. *SBI (CL)

(15) O’Shucks Bar & Grill, Park City. *SBI (RE)

(16) Pei Wei Asian Diner, Salt Lake and Rebecca *SBI(RL)

Brunko and Thomas Andrus (employee).

(17) Peppers Cantina, St George, and Shilee *SBI (RE)Benson (employee).

(18) Ricardo’s @ Greenwell Inn, Price, and *SBI (RE)Jeremy Mullis (employee).

(19) Ricardo’s, St George, and Alicia Root and *SBI (RE)Emily Deerman (employee).

(20) Schneiter’s Riverside Golf Club, Ogden, *SBI (BE)and John Knight (employee).

(21) Sports Page Bar, Price, and Adam Young *SBI (CL)and Macee Muncy (employee).

(22) Sushi Ya (Pan), Clearfield, and Fang *SBI (RL)Zhongyn and Pei Huang (employee).

(23) Syracuse Family Fun Center, Syracuse, and *SBI(BE)

Christian Woodall (employee).

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(24) Tarahumara, Midway, and Susana De Jesus *SBI(RE)

Cortes-Gervacio (employee).

(25) The Farm @ Grand Summit Hotel, Park *SBI (CL)City, and Stephanie Way (employee).

(26) Tram Car Pizza/Rendezvous @ Snowbird *SBI (BE)Resort, Snowbird and Andrew Verrinder (employee).

(27) University Broiler, Ogden, and Kelsey East *SBI(RB)

(employee).

(28) Warrens Craft Burger, Ogden, and *SBI (RE)Brittney Gailey (employee).

Sheila Page gave an overview of the consent calendar asking the commissioners to strike #1 Osaka Sushi Japanese, #2 Shoots Chinese Restaurant, #3 William Ingram, #4 Pawit’s Royal Thai Cuisine, #5 Nuch’s Pizzeria, #18 Ricardo’s @ Greenwell Inn, #19 Ricardo’s St. George, #21 Sports Page Bar, #22 Sushi Ya, #24 Tarahumara, and #27 University Broiler. Ms. Page added that #8 Don Pedro’s in Vernal received their third sale to minor violation. Don Pedro’s agreed to a 25 day suspension and a $15,000 fine. They acknowledged that they understand a further violation will result in emergency action and the department seeking revocation.

Ms. Smith moved to approve the consent calendar with the exceptions of #1 Osaka Sushi Japanese, #2 Shoots Chinese Restaurant, #3 William Ingram, #4 Pawit’s Royal Thai Cuisine, #5 Nuch’s Pizzeria, #18 Ricardo’s @ Greenwell Inn, #19 Ricardo’s St. George, #21 Sports Page Bar, #22 Sushi Ya, #24 Tarahumara, and #27 University Broiler. Mr. Wright seconded the motion which passed unanimously.

ORDERS TO SHOW CAUSE:

a. Applebee’s, Layton. STRIKE

b. Promontory’s Deer Valley Mountain Lodge, Park City. (CL)

Ms. McDermott gave an overview of the statute that may prohibit an individual with a disqualifying offense from acting in the capacity of owner, manager or supervisor for a licensee. She explained that the commission

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may choose to take action on the license, or choose to take no action against the license.

Richard Roberts came forward to address the commission. When Promontory’s Deer Valley became aware of the disqualifying offense, Mr. Roberts was removed from a management position but is still working for Promontory’s Deer Valley Mountain Lodge. He would like to return to management. Mr. Roberts explained an incident in 1998 while employed at Gart Brothers that resulted in a petty theft charge. He pleaded no contest and completed his probation successfully.

Mr. Wright moved to take no action on the club license for Promontory’s Deer Valley Mountain Lodge in Park City. Ms. Smith seconded the motion which passed unanimously.

COMPLIANCE UPDATE:

Ms. McDermott updated the commission on the activities of the Compliance Department. To date they have processed 529 event and license applications (a 10% increase over last year). Of those, 367 were event permits, 129 retail licenses, and 18 special use applications.

Ms. McDermott also noted that the number of label approvals and brewer certificates have increased. To date, over 500 labels have been approved.

TRANSFER OF LOCATION APPLICATIONS:

a. Mid City Pub (CL) From:16 West Market Street, Salt Lake City.To: 7101 South Bingham Junction #104, Midvale.

Dan Oberg gave an overview of the application noting it is complete and staff recommends approval.

Mr. Bateman moved to approve a location transfer for the Mid City Pub club license. Mr. Wright seconded the motion which passed unanimously.

b. Union Grill (RE) and (BC) From:2501 Wall Avenue, Room 212, Ogden.To: 315 24th Street, Ogden.

Rob Hansen gave an overview of the request to move the full restaurant and banquet catering licenses for Union Grill. He noted that the new location is

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across from an Episcopal Church. A public hearing was held with no opposition. Both the church and city consented to the proximity variance.

Ms. Smith moved to approve location transfers for the Union Grill full restaurant and banquet catering licenses along with a proximity variance. Mr. Wright seconded the motion which passed unanimously.

c. Joe Vera’s Mexican Restaurant (RE) From:250 West Center Street, Provo.To: 201 West Center Street, Provo.

Abe Kader gave an overview of the application noting it is complete and staff recommends approval.

Mr. Wright moved to approve a location transfer for the Joe Vera’s Mexican Restaurant full service restaurant license. Mr. Bateman seconded the motion which passed unanimously.

d. Bistro 222 (CL) From:222 South Main Street, Salt Lake City.To: 1122 East Draper Parkway, Draper.

Abe Kader gave an overview of the application noting it is complete and staff recommends approval.

Mr. Wright moved to approve a location transfer for the Bistro 222 club license. Ms. Smith seconded the motion which passed unanimously.

e. Caffe 222 STRIKE

INDUSTRIAL MANUFACTURING APPLICATIONS:

a. Boli Naturals, Orem.

Abe Kader stated the application is complete and staff recommends approval.

Kit Wilkins from Boli Naturals came forward to address the commission. He gave an overview of the business noting the alcohol is used for preservatives.

Ms. Smith moved to approve an industrial manufacturing license for Boli Naturals in Orem. Mr. Wright seconded the motion which passed unanimously.

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b. Dial Herbs, Manti.

Abe Kader stated the application is complete and staff recommends approval.

Wendy Malmstrom from Dial Herbs came forward to address the commission. She explained how the alcohol will be used to manufacture herbal tinctures and supplements.

Mr. Wright moved to approve an industrial manufacturing license for Dial Herbs in Manti. Ms. Smith seconded the motion which passed unanimously.

c. Blind Pig, Salt Lake City.

Abe Kader stated that the applicant was unable to attend the meeting. He explained that they will be using the alcohol to manufacture bitters for food and botanically infused herbs and spices for alcohol. They have restaurant and club licenses. The application is complete and staff recommends approval.

Mr. Wright moved to approve an industrial manufacturing license for Blind Pig in Salt Lake City. Mr. Bateman seconded the motion which passed unanimously.

MANUFACTURE BREWERY APPLICATION:

a. Strap Tank Brewing, Springville.

Abe Kader stated the application is complete and staff recommends approval.

Joe Lambert from Strap Tank Brewing came forward to address the commission. Mr. Lambert gave an overview of the business and explained why they are applying for a brewery license.

Mr. Wright moved to approve a manufacture brewery license for Strap Tank Brewing in Springville. Ms. Smith seconded the motion which passed unanimously.

SCIENTIFIC EDUCATIONAL APPLICATION:

a. Genysis Labs, Salt Lake City.

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Abe Kader gave an overview of the application stating staff recommends approval.

Scott Roberts from Genysis Labs came forward to address the commission. Mr. Roberts explained that they need ethanol in the lab to do fiber testing and for cleaning.

Ms. Smith moved to approve a scientific educational permit for Genysis Labs in Salt Lake City. Mr. Wright seconded the motion which passed unanimously.

CLUB RECLASSIFICATION FROM CLASS “C” DINING TO CLASS “D” SOCIAL:

a. Atomic Burger, Moab.

b. Copper Common, Salt Lake City.

Stephne Hanson explained that during the renewal process the financials showed the 60% food requirement is not being met by the two clubs. As a result, they are asking to be reclassified from dining to social clubs. Staff recommends approval on both.

Mr. Wright moved to grant club license reclassifications from dining to social clubs for Atomic Burger in Moab and Copper Common in Salt Lake City. Ms. Smith seconded the motion which passed unanimously.

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CLUB RENEWALS:

Stephne Hanson explained that there are two lists for the commission to consider. List A includes those that are complete and renewed on time. List B includes those that are complete but renewed late and paid a late fee. Staff recommends approval.

Mr. Wright moved to approve the club license renewals on List A that are complete and renewed on time; and those on List B, that are complete but renewed late. Ms. Smith seconded the motion which passed unanimously.

LICENSE APPLICATIONS:

a. Full Service Restaurant Applicants: License Transfers:

(1) Allies American Grill @ University Park Marriott, Salt Lake City.

(2) Trestle Tavern, Salt Lake City. (Conditional) New Applicants:

(1) Peekaboo Canyon Wood Fired Kitchen, Kanab. (Conditional)

(2) Tsunami (Traverse Mountain), Lehi. (3) Himalayan Kitchen, Salt Lake City.

Rob Hansen gave an overview of the license transfer application for #1 Allies American Grill @ University Park Marriott stating it is complete and staff recommends approval.

Mr. Wright moved to approve a full service restaurant license transfer for #1 Allies American Grill @ University Park Marriott in Provo. Mr. Bateman seconded the motion which passed unanimously.

Mr. Hansen gave an overview of the license transfer application for #2 Trestle Tavern noting it is conditional.

Mr. Wright moved to approve a conditional full service restaurant license transfer for #2 Trestle Tavern in Salt Lake City. Mr. Bateman seconded the motion which passed unanimously.

Mr. Hansen gave an overview of the new applicants noting #1 Peekaboo Canyon Wood Fired Kitchen is conditional; #2 Tsunami and #3 Himalayan Kitchen have violations that have been resolved. Staff recommends approval.

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Mr. Wright moved to approve a conditional full service restaurant license for #1 Peekaboo Canyon Wood Fired Kitchen; and full service restaurant licenses for #2 Tsunami in Lehi and #3 Himalayan Kitchen in Salt Lake City. Ms. Smith seconded the motion which passed unanimously.

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b. On-Premise Banquet Catering Applicants: License Transfer:

(1) Marriott Salt Lake City University Park, Salt Lake City.New Applicant:

(1) Hyatt Place/Cottonwood, Salt Lake City.

Rob Hansen gave an overview of the license transfer application. Staff recommends approval.

Mr. Wright moved to approve a banquet catering license transfer for #1 Marriott Salt Lake City University Park in Salt Lake City. Ms. Smith seconded the motion which passed unanimously.

Mr. Hansen gave an overview of the new application. Staff recommends approval.

Mr. Bateman moved to approve a banquet catering license for #1 Hyatt Place/Cottonwood in Salt Lake City. Ms. Smith seconded the motion which passed unanimously.

c. Reception Center Applicants:New Applicant:

(1) Sugar Space, Salt Lake City. (2) Himalayan Kitchen, Salt Lake City.

Rob Hansen gave an overview of the new license applications. Staff recommends approval.

Ms. Smith moved to approve a reception center license for #1 Sugar Space in Salt Lake City. Mr. Wright seconded the motion which passed unanimously.

Mr. Hansen noted that #2 Himalayan Kitchen is dual licensed. He clarified that the licensed premises are completely separated.

Ms. Smith moved to approve a reception center license for #2 Himalayan Kitchen in Salt Lake City. Mr. Wright seconded the motion which passed unanimously.

d. Club Applicants:License Transfers:

(1) Bout Time Pub & Grub, Holladay. STRIKE(2) Bout Time Pub & Grub, Ogden. STRIKE(3) Bout Time Pub & Grub, Salt Lake City. STRIKE(4) Bout Time Pub & Grub, Taylorsville. STRIKE(5) Bout Time Pub & Grub, West Valley City. STRIKE

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(6) Bout Time Pub & Grub, Park City. STRIKE(7) Main Street Social, Heber. (Dining) (Conditional)(8) Pitcher’s Lounge @ University Park Marriott, Salt

Lake. (Social)(9) The Outlaw, Ogden. (Social) (Conditional)

(10) Wicked Pour House, Salt Lake City. (Social)Previous Applicants:

(1) Wong’s Asian Bistro Club, Salt Lake City. (Conditional) (Social)

(2) Water Witch Bar, Salt Lake City. (Conditional) (Social)

(3) Eating Establishment, Park City. (Dining)(4) Copper Onion, Salt Lake City. (Dining)(5) Salt Flats Grill & Brewhouse, Draper. STRIKE

New Applicants:(1) Copper Kitchen, Salt Lake City. STRIKE(2) Old Town Cellars, Park City. (Social)(3) The Gateway Saloon, Vernal. (Social)

Rob Hansen asked the commissioners to strike the first six license transfer applicants. He noted #7 Main Street Social in Heber is conditional.

Mr. Wright moved to approve a conditional club license transfer for #7 Main Street Social in Heber. Ms. Smith seconded the motion which passed unanimously.

Mr. Hansen gave an overview of the balance of the license transfer applications.

Ms. Smith moved to approve a club license transfer for #8 Pitcher’s Lounge @ University Park Marriott in Salt Lake City. Mr. Wright seconded the motion which passed unanimously.

Ms. Smith moved to approve a club license transfer for #9 The Outlaw in Ogden. Mr. Wright seconded the motion which passed unanimously.

Mr. Wright moved to approve a club license transfer for #10 Wicked Pour House in Salt Lake City. Ms. Smith seconded the motion which passed unanimously.

Mr. Hansen asked the commissioners to strike previous applicant #5 Salt Flats Grill & Brewhouse in Draper, and new applicant #1 Copper Kitchen in Salt Lake City. Mr. Nielsen noted two new club licenses are available. The applicants came forward and made brief presentations to the commission.

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Ms. Smith moved to grant a club license to previous applicant #2 Water Witch Bar in Salt Lake City. Mr. Wright seconded the motion which passed unanimously.

Ms. Smith moved to grant a club license to new applicant #2 Old Town Cellars in Park City. No second, the motion failed.

Mr. Bateman moved to a grant club license to new applicant #3 The Gateway Saloon in Vernal. Ms. Smith seconded the motion which passed unanimously.

Mr. Hansen noted two summer seasonal licenses were available. Applicants were not interested in the summer seasonal licenses.

e. Limited Service Restaurant Applicants: Previous Applicant:

(1) Even Stevens, Logan. STRIKE New Applicants:

(1) Susie’s Branding Iron, Moab.(2) Burgers and Barley, Park City.(3) We Olive, Salt Lake City. (Conditional)(4) Red Mermaid Bistro, Salt Lake City.(5) Jasmine Asian Bistro & Sushi Bar, Salt Lake City.

(Conditional)(6) Rustler’s Restaurant, Tropic. (Conditional)(7) A1 House Sushi & Chinese Food, Vernal.

Steve Wallenda explained that he hasn’t heard from previous applicant #1 Even Stevens in Logan. The item was stricken from the agenda. Mr. Wallenda gave an overview of the new applicants noting #3 We Olive, #5 Jasmine Asian Bistro and #6 Rustler’s Restaurant are conditional. Staff recommends approval.

Mr. Bateman moved to approve conditional limited service restaurant licenses for #3 We Olive in Salt Lake City, #5 Jasmine Asian Bistro & Sushi Bar in Salt Lake City, and #6 Rustler’s Restaurant in Tropic; and limited service restaurant licenses for #1 Susie’s Branding Iron in Moab, #2 Burgers and Barley in Park City, #4 Red Mermaid Bistro in Salt Lake City, and #7 A1 House Sushi & Chinese Food in Vernal. Ms. Smith seconded the motion which passed unanimously.

f. On-Premise Beer Only Restaurant Applicants:Previous Applicant:

(1) La Frontera, St. George. (Proximity Variance Needed)

New Applicants:

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(1) Miner’s Diner, Eureka.(2) El Pariente Mexican Restaurant, West Valley City.

(Conditional)

Steve Wallenda reminded the commissioners that previous applicant #1 La Frontera in St. George is requesting a beer license and a proximity variance. They are in proximity to a LDS Church and did not get written consent from the governing authority. Ms. Page summarized the statute and outlined the actions required when the governing authority of the community location does not give written consent. The license applicant must establish: 1) there is a substantial unmet public demand to consume an alcoholic product within the geographic boundary; 2) there is no reasonably viable alternative for satisfying the unmet demand; and 3) there is no reasonably viable alternative location. The geographic boundary is St. George City.

Terry Montano came forward to address the commission. Ms. Montano gave an overview of the alcohol licenses in the area. She also noted there have been a number of letters and a petition requesting that the restaurant have a beer license.

Ms. Smith stated that the Legislature set a high and vague bar to meet. Ms. Smith moved to grant a proximity variance for #1 La Frontera in St. George based on substantial unmet demand geographically, and unmet demand for the retail licensee. Looking at the zip code, the growth of the community and the increase in tourism traffic suggests a substantial unmet demand and the fact that the restaurant is able to stay in business with another Mexican restaurant in the strip mall suggests they are doing something different than Don Pedros. Mr. Wright seconded the motion. Mr. Bateman stated he is not convinced that there isn’t a reasonable viable alternative. Mr. Nielsen stated he has similar concerns as Mr. Bateman.

Mr. Nielsen called for a vote on the motion. Mr. Wright and Ms. Smith voted yea, Mr. Bateman and Mr. Nielsen voted nay. The motion failed.

Mr. Wallenda gave an overview of the new applications.

Mr. Wright moved to grant a beer only restaurant license to #1 Miner’s Diner in Eureka, and a conditional beer only restaurant license to #2 El Pariente Mexican Restaurant in West Valley City. Ms. Smith seconded the motion which passed unanimously.

g. On-Premise Beer Recreational Applicants:New Applicants:

(1) JNL Plus Café, Layton.(2) Utah State Fairpark, Salt Lake City.

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Steve Wallenda gave an overview of the applications noting staff recommends approval.

Ms. Smith moved to approve beer recreational licenses for #1 JNL Plus Café in Layton and #2 Utah State Fairpark in Salt Lake City. Mr. Wright seconded the motion which passed unanimously.

h. On-Premise Beer Tavern Applicant:New Applicant:

(1) 4 Below, Salt Lake City.

Steve Wallenda gave an overview of the application stating staff recommends approval.

Mr. Wright moved to approve a tavern license for #1 4 Below in Salt Lake City. Ms. Smith seconded the motion which passed unanimously.

DISCUSSION OF CHARACTER AND PROFESSIONAL COMPETENCE OF DABC PUBLIC INFORMATION OFFICER CANDIDATES.

Mr. Nielsen moved to adjourn to closed session to discuss the character and professional competence of the public information officer candidates. Mr. Wright seconded the motion which passed unanimously. [11:12 a.m.]

Mr. Wright moved to adjourn the closed session and reconvene the open meeting. Mr. Bateman seconded the motion which passed unanimously. [Reconvened at 11:25 a.m.]

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APPOINTMENT OF DABC PUBLIC INFORMATION OFFICER.

Ms. Smith moved to confirm the appointment of Terry Wood as DABC Public Information Officer. Mr. Wright seconded the motion which passed unanimously.

Mr. Nielsen welcomed Mr. Wood. Mr. Wood gave a quick overview of his background.

PARENTS EMPOWERED UPDATE:

Doug Murakami explained that twice a year a research agency is contracted to do qualitative research. Research should be completed in the next few weeks and will be used to guide the campaign and come up with new creative concepts for next year.

Mr. Murakami also distributed a press release for an press event with the Sandy City Fire Department.

OPERATIONS UPDATE:

a. Package Agency Audits.

Mr. Meier stated that six package agencies were audited and found to be in compliance.

b. Listed Items.

Mr. Meier stated that 19 general and 20 limited items were listed.

FINANCIAL UPDATE:

a. Financial Statement.

Man Diep gave an overview of the May 2016 financials. Year-to-date retail sales are up $27,258,000 (7.49%) and case sales are up by 157,696 cases.

b. Department Dashboard.

Department expenditures are on track.

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QUESTIONS/COMMENTS FROM COMMISSIONERS AND PUBLIC:

None.

There being no further business, Ms. Wright moved to adjourn the meeting at 11:35 a.m. Ms. Smith seconded the motion which passed unanimously.

_________________________________Chairman

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