SUMMARY MINUTES OF THE ARV ADA LIQUOR LICENSING AUTHORITY REGULAR MEETING HELD JULY 23, 2015

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SUMMARY MINUTES OF THE ARV ADA LIQUOR LICENSING AUTHORITY REGULAR MEETING HELD JULY 23, 2015 1. CALL TO ORDER - By Chairman Albrandt at 5:33 p.m. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL OF MEMBERS Those present were: Alan Albrandt, David Caulder, Kevin Bonich, Jed Ladd and Phil Swartzlander. Also present were: William Barber, Senior Assistant City Attorney; Ron Arguello, Assistant City Attorney; Kristen Rush, Deputy City Clerk and Judy Lydick, Acting Deputy City Clerk. 4. APPROVAL OF MINUTES - Chairman Albrandt moved to approve the Summary of Minutes of the regular meeting of July 9, 2015. Those voting Yes: Albrandt, Bonich, Caulder, Ladd, Swartzlander 5. OLD BUSINESS - none 6. NEW BUSINESS - none 7. PUBLIC HEARING A. Application for the Tavern Liquor License of Klines, LLC, d/b/a Kline's Beer Hall, 7519 Grandview Avenue The public hearing was opened. Sworn Testimony: Michael Huggins, Managing Member of Klines, LLC The Applicant presented three exhibits: Exhibit 1 Exhibit 2 Exhibit 3 Petition packet number one Petition packet number two Posting Log and Posting Affidavit The city presented four exhibits: Exhibit A Exhibit B Licensing Investigator's Clearance Memo Publisher's Affidavit

Page 2 Exhibit C Exhibit D Pictures of posted signs Applicant's file Chairman Albrandt moved to accept the exhibits into the record. No one else was present wishing to speak for or against the application. The public hearing closed. A public hearing on the Application for the Tavern Liquor License of Klines, LLC, d/b/a Kline's Beer Hall, 7519 Grandview Avenue, Arvada, Colorado was held on Thursday,, before the City of Arvada (hereinafter "Authority"). After considering all of the evidence presented at said public hearing, reviewing the exhibits, petitions, remonstrances, and considering all of the facts presented, the Authority adopts the following Findings of Fact: 1. The neighborhood to be served by the requested license is that area surrounded by the following: On the North by the centerline of West 64th Avenue and extensions thereof On the East by the centerline of Lamar Street and extensions thereof On the South by the centerline of West 52nd A venue and extensions thereof On the West by the centerline of Carr Street and extensions thereof 2. The City Clerk's Results oflnvestigation dated July 17, 2015, is incorporated herein and made a part hereof. 3. Representatives of the applicant testified as to the character and reputation of the individuals involved in the application and plans for operation of the proposed outlet. 4. The Authority finds there are seven similarly licensed outlets presently existing within the applicant's delineated boundary. 5. The applicant submitted petitions containing the signatures of approximately 134 persons, 12 of which were deleted. Of the petition signers, 122 support the issuance of the proposed license and none oppose it. Petition signers, according to the testimony of the circulators, support the issuance of the proposed liquor license. The evidence indicated that several persons contacted were opposed to the issuance of the license for various reasons. The Authority has not considered those

Page 3 objections to the issuance of the license, which are not consistent with the Colorado Liquor Code. 6. No persons, other than representatives of the applicant, testified in support of the proposed license regarding the needs and desires of the neighborhood. 7. The Authority finds the applicant's file is complete. 8. The City Zoning permits the use of the subject property for the proposed outlet. 9. No petition in opposition was received and no person spoke in opposition. The Authority finds there has been an adequate showing the present outlets in and near the neighborhood are not meeting the reasonable requirements thereof. 10. As authorized by C.R.S. 12-47-313 (III), Section 6-97 of the Code of the City of Arvada allows for the issuance of a Liquor License within 500 feet of any public or parochial school or the principal campus of any college, university or seminary. Therefore, the Licensing Authority does not need to determine whether the proposed outlet is located within 500 feet of any public or parochial school or the principal campus of any college, university or seminary. 11. The Authority has considered all of the evidence coming before the Authority at the public hearing and finds the evidence does establish conclusively: A. The reasonable requirements of the neighborhood are not presently being met. B. The desires of the inhabitants of the neighborhood are consistent with these Findings and the granting of the application. C. The character, record and reputation of the individuals involved in the application are satisfactory. Chairman Albrandt moved the foregoing Findings of Fact be Adopted and the Application for the Tavern Liquor License of Klines, LLC, d/b/a Kline's Beer Hall, 7519 Grandview Avenue, Arvada, Colorado, be and the same is Approved.

Page4 B. Alleged Violation of the Retail Liquor License of Gagan, Inc., d/b/a/ Arvada Wine and Spirits, 6350 Sheridan Blvd, #117 Acting Deputy City Clerk Judy Lydick explained that there is a typographical error in the initial paperwork for this alleged violation, wherein the corporate name was entered as "Gagnan, Inc." while the correct name should appear as "Gagan, Inc." Chairman Albandt made a motion that the Liquor Authority acknowledge the error, recognize that Gagnan, Inc. and Gagan, Inc are the same entity, and let the record reflect that all proceedings apply to Gagan, Inc. The public hearing opened. Carl Ream, Attorney representing the licensee, was present. Ron Arguello, Assistant City Attorney, was present and gave an opening statement. The City presented four exhibits: Exhibit 1. Exhibit 2. Exhibit 3. Exhibit 4. Copy of Letter GAGNAN, INC., d/b/a ARVADA WINE AND SPIRITS dated June 25, 2015, Certificate of Certified Mailing, and Certificate of Personal Service. Copy of Notice and Order to Show Cause and Copy of Show Cause Hearing Procedure. Copy of Retail Liquor License Number 15529, issued to GAGNAN, INC. d/b/a ARV ADA WINE AND SPIRITS. Copy of the narratives from the June 22, 2015 incident report in Arvada Police Department Case Report Number 2015-008746, in reference to the incident involving the sale of alcohol to a minor. The exhibits were accepted into the record. Ron Arguello, Assistant City Attorney, reviewed the following stipulation with the authority: COMES NOW the City of Arvada, by and through its attorney, Ronald Bryan Arguello, and the Licensee, GAGNAN, INC., doing business as ARV ADA WINE AND SPIRITS, 6350 Sheridan Boulevard #117 & 118, Arvada, Colorado 80003, by and through its attorney, Carl Ream, hereby stipulate and agree that the violation of CRS

Page 5 12-47-901(1)(a.5)(I) and CRS 12-47-901(5)(a)(I), as alleged inarvada Police Report for Case Number 2015-0087 46 and the Local Licensing Authority's Notice and Order to Show Cause dated June 25, 2015, did occur provided that the Authority accept the Parties Recommendation related to penalty. The parties further stipulate that: The Notice and Order to Show Cause dated June 25, 2015 was served and is in all respects and for all purposes legally sufficient; The Licensee has received and reviewed a copy of the Arvada Local Liquor Licensing Authority Show Cause Hearing Procedures; Any reviewing authority may take judicial notice of all referenced provisions of the Colorado Revised Statutes, the Colorado Code of Regulations, or other laws or regulations including the Sentencing Guidelines for the Arvada Liquor Licensing Authority dated October 24, 2013, and the Arvada Local Show Cause Hearing Procedures, historical data on sanctions imposed by the Arvada Local, and Colorado Department of Revenue Liquor Enforcement Division 2011 Report of Enforcement Actions, as necessary; The Licensee has at all times pertinent to this proceeding held Retail Liquor Store License Number 15529 and has no prior violations. The Parties stipulate to the admission of this Stipulation and Order, Recommendation Relating to Penalty and Order, and all attachments listed as Exhibits 1 through 4, respectively, which are described below and attached hereto: EXHIBITS Exhibit 1. Exhibit 2. Exhibit 3. Exhibit 4. Copy of Letter to Gagnan, Inc., d/b/ a ARV ADA WINE AND SPIRITS, dated June 25, 2015, Certificate of Certified Mailing, and Certificate of Personal Service. Copy of Notice and Order to Show Cause and Copy of Show Cause Hearing Procedure. Copy of Retail Liquor Store License Number 15529, issued to GAGNAN, INC., d/b/ a ARVADA WINE AND SPIRITS. Copy of the narratives from the June 16, 2015 incident report in Arvada Police Department Case Report Number 2015-008746, in reference to the incident involving the sale of alcohol to a minor Chairman Albrandt moved that this Local Licensing Authority accepts the proposed stipulation, as outlined by Assistant City Attorney, Ronald Arguello.

Page 6 Mr. Arguello reviewed the following recommendation relating to penalty: COMES COMES NOW the City of Arvada, by and through its attorney, Ronald Bryan Arguello, and the Licensee, GAGNAN, INC., doing business as ARV ADA WINE AND SPIRITS, 6350 Sheridan Boulevard #117 & 118, Arvada, Colorado 80003, by and through its attorney, Carl Ream, hereby stipulate to and recommend that the Licensing Authority accept the following agreement and penalty recommendation: The Parties hereby agree and recommend that the Arvada Liquor Authority ("Authority") accept the following Recommendation Relating to Penalty: 1. A penalty of suspension of the Retail Liquor Store License Number 15529 for 10 days, of which 7 days will be held in abeyance pending the satisfactory completion of the following conditions. a. For one year from today's date, the Licensee cannot be charged with any violation of the Colorado Liquor Code or Department of Revenue Regulations from which an administrative body finds a violation; or conviction, plea of nolo contendere, or other guilty finding in a criminal action; or stipulation (of any kind) results; b. All employees handling alcohol sales, who have not done so in the past two years, shall attend an Authority approved liquor education class within ninety (90) days and submit written proof of attendance to the City Clerk's Office (those that have attended in the past two years must provide proof of the same); c. Pay a fine in lieu of a three day active suspension. Licensee shall submit copies of its sales tax records for the last 60 days, and must include a breakout of all sales by category (including all alcohol sales) on monthly Income Statements within fourteen days of this Order. The fine shall be equivalent to twenty percent of the licensee's estimated gross revenues of alcohol sales for a ten-day period, except that the fine shall not be less than $200.00 or more than $5,000.00. d. Payment of the fine shall be in the forms of cash or certified funds made within twenty (20) days of written notification of the amount of the fine pursuant to the Order. 2. If any of these conditions are not met in the manner set forth above, Licensee's Retail Liquor Store License shall be suspended for the number of days held in abeyance, consecutively.

Page 7 Chairman Albrandt moved that after considering the statements made in mitigation and aggravation, the sentencing guidelines, and the Recommendation Relating to Penalty, the Local Licensing Authority of the City of Arvada accepts the Recommendation Relating to Penalty as outlined by Assistant City Attorney Ron Arguello and is hereby made an order of the Local Licensing Authority of the City of Arvada, this 23rd day of July, 2015. C. Alleged Violation of the Retail Liquor License of Kye T. Han, d/b/a Hidden Lake Liquors, 6790 Sheridan Blvd, Unit B The public hearing opened. Sworn Testimony: Kye Han, licensee Ron Arguello, Assistant City Attorney, was present and gave an opening statement. The City presented four exhibits: Exhibit 1. Exhibit 2. Exhibit 3. Exhibit4. Copy of Letter to Kye T. Han, d/b/a HIDDEN LAKE LIQUORS, dated June 25, 2015, Certificate of Certified Mailing, and Certificate of Personal Service. Copy of Notice and Order to Show Cause and Copy of Show Cause Hearing Procedure. Copy of Retail Liquor Store License Number 15466, issued to Kye T. Han, d/b/ a HIDDEN LAKE LIQUORS. Copy of the narratives from the June 16, 2015 incident report in Arvada Police Department Case Report Number 2015-008748, in reference to the incident involving the sale of alcohol to a minor. The exhibits were accepted into the record. Ron Arguello, Assistant City Attorney, reviewed the following stipulation with the authority: COMES NOW the City of Arvada, by and through its attorney, Ronald Bryan Arguello, and the Licensee, KYE T. HAN, doing business as HIDDEN LAKE LIQUORS, 6790 Sheridan Boulevard, Arvada, Colorado 80003, by and through Kye T. Han, hereby stipulate and agree that the violation of CRS 12-47-901(1)(a.5)(I) and CRS 12-47-901(5)(a)(I), as alleged in Arvada Police Report for Case Number 2015-008748 and the Local Licensing Authority's Notice and Order to Show Cause dated

Page 8 June 25, 2015, did occur provided that the Authority accept the Parties Recommendation related to penalty. The parties further stipulate that: The Notice and Order to Show Cause dated June 25, 2015 was served and is in all respects and for all purposes legally sufficient; The Licensee has received and reviewed a copy of the Arvada Local Liquor Licensing Authority Show Cause Hearing Procedures; Any reviewing authority may take judicial notice of all referenced provisions of the Colorado Revised Statutes, the Colorado Code of Regulations, or other laws or regulations including the Sentencing Guidelines for the Arvada Liquor Licensing Authority dated October 24, 2013, and the Arvada Local Show Cause Hearing Procedures, historical data on sanctions imposed by the Arvada Local, and Colorado Department of Revenue Liquor Enforcement Division 2011 Report of Enforcement Actions, as necessary; The Licensee has at all times pertinent to this proceeding held Retail Liquor Store License Number 15466 and has no prior violations. The Parties stipulate to the admission of this Stipulation and Order, Recommendation Relating to Penalty and Order, and all attachments listed as Exhibits 1 through 4, respectively, which are described below and attached hereto: EXHIBITS Exhibit 1. Exhibit 2. Exhibit 3. Exhibit4. Copy of Letter to Kye T. Han, d/b/a HIDDEN LAKE LIQUORS, dated June 25, 2015, Certificate of Certified Mailing, and Certificate of Personal Service. Copy of Notice and Order to Show Cause and Copy of Show Cause Hearing Procedure. Copy of Retail Liquor Store License Number 15466, issued to Kye T. Han, d/b/ a HIDDEN LAKE LIQUORS. Copy of the narratives from the June 16, 2015 incident report in Arvada Police Department Case Report Number 2015-008748, in reference to the incident involving the sale of alcohol to a minor. Chairman Albrandt moved that this Local Licensing Authority accepts the proposed stipulation, as outlined by Assistant City Attorney, Ronald Arguello.

Page 9 COMES NOW the City of Arvada, by and through its attorney, Ronald Bryan Arguello, and the Licensee, KYE T. HAN, doing business as HIDDEN LAKE LIQUORS, 6790 Sheridan Boulevard, Arvada, Colorado 80003, by and through Kye T. Han, hereby stipulate to and recommend that the Licensing Authority accept the following agreement and penalty recommendation: The Parties hereby agree and recommend that the Arvada Liquor Authority ("Authority") accept the following Recommendation Relating to Penalty: 1. A penalty of suspension of the Retail Liquor Store License Number 15466 for 10 days, of which 7 days will be held in abeyance pending the satisfactory completion of the following conditions. a. For one year from today's date, the Licensee cannot be charged with any violation of the Colorado Liquor Code or Department of Revenue Regulations from which an administrative body finds a violation; or conviction, plea of nolo contendere, or other guilty finding in a criminal action; or stipulation (of any kind) results; b. All employees handling alcohol sales, who have not done so in the past two years, shall attend an Authority approved liquor education class within ninety (90) days and submit written proof o~ attendance to the City Clerk's Office (those that have attended in the past two years must provide proof of the same); c. Pay a fine in lieu of a three day active suspension. Licensee shall submit copies of its sales tax records for the last 60 days, and must include a breakout of all sales by category (including all alcohol sales) on monthly Income Statements within fourteen days of this Order. The fine shall be equivalent to twenty percent of the licensee's estimated gross revenues of alcohol sales for a ten-day period, except that the fine shall not be less than $200.00 or more than $5,000.00. d. Payment of the fine shall be in the forms of cash or certified funds made within twenty (20) days of written notification of the amount of the fine pursuant to the Order. 2. If any of these conditions are not met in the manner set forth above, Licensee's Retail Liquor Store License shall be suspended for the number of days held in abeyance, consecutively. Chairman Albrandt moved that after considering the statements made in mitigation and aggravation, the sentencing guidelines, and the Recommendation Relating to Penalty, the Local Licensing Authority of the City of Arvada accepts the

Page 10 Recommendation Relating to Penalty as outlined by Assistant City Attorney Ron Arguello and is hereby made an order of the Local Licensing Authority of the City of Arvada, this 23rd day of July, 2015. D. Alleged Violation of the Retail Liquor License of AIS, LLC, d/b/a Simms Liquor, 11651 W. 64 1 h Ave, Unit E-6 The public hearing opened. Sworn Testimony: Issa Sawaged, licensee Ron Arguello, Assistant City Attorney, was present and gave an opening statement. The City presented four exhibits: Exhibit 1. Exhibit 2. Exhibit 3. Exhibit 4. Copy of Letter AIS, LLC, d/b/a SIMMS LIQUOR, dated June 25, 2015, Certificate of Certified Mailing, and Certificate of Personal Service. Copy of Notice and Order to Show Cause and Copy of Show Cause Hearing Procedure. Copy of Retail Liquor License Number 15448, issued to AIS, LLC, d/b/a SIMMS LIQUOR. Copy of the narratives from the June 22, 2015 incident report in Arvada Police Department Case Report Number 2015-008751, in reference to the incident involving the sale of alcohol to a minor. The exhibits were accepted into the record. Ron Arguello, Assistant City Attorney, reviewed the following stipulation with the authority: COMES NOW the City of Arvada, by and through its attorney, Ronald Bryan Arguello, and the Licensee, AIS LLC, doing business as SIMMS LIQUOR, 11651 W. 64th A venue, Arvada, Colorado 80004, by and through Issa Sawaged, hereby stipulate and agree that the violation of CRS 12-47-901(1)(a.5)(I) and CRS 12-47-901(5)(a)(I), as alleged in Arvada Police Report for Case Number 2015-008751 and the Local Licensing Authority's Notice and Order to Show Cause dated June 25, 2015, did occur provided that the Authority accept the Parties Recommendation related to penalty.

Page 11 The parties further stipulate that: The Notice and Order to Show Cause dated June 25, 2015 was served and is in all respects and for all purposes legally sufficient; The Licensee has received and reviewed a copy of the Arvada Local Liquor Licensing Authority Show Cause Hearing Procedures; Any reviewing authority may take judicial notice of all referenced provisions of the Colorado Revised Statutes, the Colorado Code of Regulations, or other laws or regulations including the Sentencing Guidelines for the Arvada Liquor Licensing Authority dated October 24, 2013, and the Arvada Local Show Cause Hearing Procedures, historical data on sanctions imposed by the Arvada Local, and Colorado Department of Revenue Liquor Enforcement Division 2011 Report of Enforcement Actions, as necessary; The Licensee has at all times pertinent to this proceeding held Retail Liquor Store License Number 15448 and has two previous violations of selling to a visibly intoxicated person on August 6, 2012, and October 27, 2012. The Parties stipulate to the admission of this Stipulation and Order, Recommendation Relating to Penalty and Order, and all attachments listed as Exhibits 1through4, respectively, which are described below and attached hereto: EXHIBITS Exhibit 1. Exhibit 2. Exhibit 3. Exhibit 4. Copy of Letter to AIS LLC, d/b/ a SIMMS LIQUOR, dated June 25, 2015, Certificate of Certified Mailing, and Certificate of Personal Service. Copy of Notice and Order to Show Cause and Copy of Show Cause Hearing Procedure. Copy of Retail Liquor Store License Number 15448, issued to AIS LLC, d/b/ a SIMMS LIQUOR Copy of the narratives from the June 16, 2015 incident report in Arvada Police Department Case Report Number 2015-008751, in reference to the incident involving the sale of alcohol to a minor. Chairman Pro Tern David Caulder moved that this Local Licensing Authority accepts the proposed stipulation, as outlined by Assistant City Attorney, Ronald Arguello. Mr. Arguello reviewed the following recommendation relating to penalty:

Page 12 COMES NOW the City of Arvada, by and through its attorney, Ronald Bryan Arguello, and the Licensee, AIS LLC, doing business as SIMMS LIQUOR, 11651 W. 64th A venue, Arvada, Colorado 80004, by and through Issa Sawaged, hereby stipulate to and recommend that the Licensing Authority accept the following agreement and penalty recommendation: The Parties hereby agree and recommend that the Arvada Liquor Authority ("Authority") accept the following Recommendation Relating to Penalty: 1. A penalty of suspension of the Retail Liquor Store License Number 15448 for 24 days, of which 14 days will be held in abeyance pending the satisfactory completion of the following conditions. a. For one year from today's date, the Licensee cannot be charged with any violation of the Colorado Liquor Code or Department of Revenue Regulations from which an administrative body finds a violation; or conviction, plea of nolo contendere, or other guilty finding in a criminal action; or stipulation (of any kind) results; b. All employees handling alcohol sales, who have not done so in the past two years, shall attend an Authority approved liquor education class within ninety (90) days and submit written proof of attendance to the City Clerk's Office (those that have attended in the past two years must provide proof of the same); c. Pay a fine in lieu of a ten day active suspension. Licensee shall submit copies of its sales tax records for the last 60 days, and must include a breakout of all sales by category (including all alcohol sales) on monthly Income Statements within fourteen days of this Order. The fine shall be equivalent to twenty percent of the licensee's estimated gross revenues of alcohol sales for a ten-day period, except that the fine shall not be less than $200.00 or more than $5,000.00. d. Payment of the fine shall be in the forms of cash or certified funds made within twenty (20) days of written notification of the amount of the fine pursuant to the Order. 2. If any of these conditions are not met in the manner set forth above, Licensee's Retail Liquor Store License shall be suspended for the number of days held in abeyance, consecutively. Chairman Pro Tern David Caulder moved that after considering the statements made in mitigation and aggravation, the sentencing guidelines, and the Recommendation Relating to Penalty, the Local Licensing Authority of the City of

Page 13 Arvada accepts the Recommendation Relating to Penalty as outlined by Assistant City Attorney Ron Arguello and is hereby made an order of the Local Licensing Authority of the City of Arvada, this 23rd day of July, 2015. 8. OTHER AUTHORITY ITEMS - none 9. STUDY SESSION - none 10. REPORT FROM CITY ATTORNEY'S OFFICE- none 11. REPORT FROM CITY CLERK'S OFFICE - none 12. REPORT FROM POLICE DEPARTMENT- none 13. ADJOURNMENT - 6: 15 p.m. Alan Albrandt, Chairman ATTEST: ~\\\\\\11111111///f////;. #'" OF A~ " 1 %,, ~ ~... v ~ ~ "'. *... :1;.~ ~....'V ~ :::: r,.. 7;;::. ~ '-'( SEAL \ ~ :::::. ~ *"... @ ~.. ;::: ~. *. ~ ~ o.... 0 ~ ~ OtoRi'\) #' ~1111111111111111 \\\\\\\\\\\\\~