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Liquor Control Board - August 18, 2021 Minutes

LIQUOR CONTROL BOARD
August 18, 2021 1:30 P.M.

Present: Commissioner Piepkorn, Kay Schwarzwalter, John Stibbe, Lydia Tackett, Robert Nelson
Absent: None
Others Present: Police Chief David Zibolski, City Auditor Sprague, Rick Carik, Rick’s; Duane Litton, Duffy’s; Dustin Mitzel, Happy Harry’s, Dave Glessner, Sidestreet, Daniel Ohmane & Francis Brown, Africa Club, and other interested parties.

Meeting was called to order at 1:00 P.M.

1. Commissioner Piepkorn called the meeting to order and asked if there were any additions or corrections to the minutes of July 28, 2021. There were no additions or correction to the minutes of July 28. Moved by Tackett, seconded by Schwarzwalter to approve the minutes of the July 28, 2021 meeting of the Liquor Control Board all voted in favor, motion passed unanimously.

2. A. Application for a Class FA alcoholic beverage license from Sickies ND, Inc. d/b/a Sickies Garage Burgers & Brews to be located at 2551 45th Street South. Items raised in the background checks were deemed old enough to no longer be of concern.

Schwarzwalter asked the Chief if the guidelines should contain a longer time frame. Chief Zibolski commented he would like to see the background check taken in its totality, he would not want to be boxed in on recommendations.

Moved by Tackett seconded by Stibbe to approve the application for a Class FA alcoholic beverage license for Sickies ND, Inc. d/b/a Sickies Garage Burgers & Brews. Motion carried.

B. Application to transfer a Class F alcoholic beverage license from Drunken Noodle d/b/a Wasabi Poke Bowl to Wasabi Poke Bowl LLC d/b/a Wasabi Poke Bowl to be located at 560 2nd Ave North. No issues of concerns were raised in the background check.

Schwarzwalter commented she would like to see all licenses come from the City and no longer allow license transfers, she thinks the license transfers can cause inflated license prices causing increased costs leading to overserving.

Moved by Stibbe, seconded by Tackett to approve the application for transfer of a Class F alcoholic beverage license from Drunken Noodle d/b/a Wasabi Poke Bowl to Wasabi Poke Bowl LLC d/b/a Wasabi Poke Bowl. Motion carried.

3. Schwarzwalter commented she would like to see the city stop doing license transfers, so that all licenses would be issued directly from the City, this would level the playing field. She would like to see the reclassification of the license system so the process is simplified. She would also see the cost of the licenses reviewed. Commissioner Piepkorn commented we need to make changes that have a purpose and not just make changes to make changes. The licenses were created for a reason. Stibbe asked if managing 34 classes of licenses is difficult. Sprague replied some of the licenses were created to allow the City to adjust to market pressures, we have denied some requests because they were not unique or couldn’t be accomplished in another way. We encourage businesses to get the right license for their business concept. We have always encouraged the applicant to have some risk, that helps ensure the manage their business in an appropriate manner. Liquor licenses are a privilege not a right. Nelson commented that one of the reasons the licenses are high is that they are limited but it is most likely not in the City’s interest to increase the number. Density and proximity to other licenses need to be taken into account. Businesses with existing licenses consider the license to be an asset. Tackett would also like to see some merging of licenses. Sprague agreed to meet with committee members Schwarzwalter and Tackett to discuss simplification.

4. Chief Zibolski discussed the liquor establishment incident forms, these forms will be presented every month to the liquor board. Included with the agenda packet were a number of reports from various establishments that the Board can review on their own. The focus and a request for action today will be from several incidents that occurred at the Windbreak centering around underage drinking. On June 18 while responding to a traffic crash an intoxicated 19 year old admitted to using a fake Wisconsin ID to gain entry and consume alcohol at the Windbreak. On June 24 PD was sent to Windbreak in response to a report of a fight, one of the participants was an underage female who admitted her boyfriend purchased two wrist bracelets which gained her access to the facility where she consumed alcohol. She has pled guilty to a minor in a licensed facility and consuming alcohol.

On July 20 Deputy Chief Anderson spoke to the Owner/General Manager Michael Hiebechuk about underage drinking and installing an ID scanner. The ownership group did not feel the scanner would be necessary. On August 6 Chief spoke to one of the owners Chad Klimek who thought if they used an ID scanner they would not be able to process patrons into the facility quickly. The goal is to keep underage out of the tavern.
An additional event of concern involved a vandalism report in the parking lot, when the complaintant spoke to the Windbreak security they asked her to report the incident from her home and offered gift cards if they would do that. The concern being the facility is showing signs of being uncooperative with PD.
Tackett asked why we don’t require the people checking ID’s to attend server training. Chief responded the real concern here is that they were allowed to purchase 2 wrist bands, thereby allowing the underage person to walk right in and not have the ID checks.
Commissioner Piepkorn asked if the City could mandate installation of an ID scanner, Chief responded it would require an amendment to the City Ordinace. Attorney Morris indicated the Liquor Board would request the City Commission to direct the City Attorney to amend the ordinance. We would also need to determine what the requirements would be. Commissioner Piepkorn stated some bars are installing the ID scanners voluntarily others are refusing. Schwartzwalter questioned if it were mandated to purchase scanners who would pay and who’s data would it be.

Moved by Schwatzwalter, seconded by Stibbe to direct the City Attorney to explore adoption of ID scanners and implement as ordinance. Motion passed.

Moved by Tackett, seconded by Schwartzwalter to find cause for a violation of 25-1509 for the Windbreak and to implement the matrix penalty of $500 and mandatory server training.

There being no further business to come before the Liquor Control Board, the meeting was adjourned at 2:08 p.m.