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PENNSYLVANIA LIQUOR CONTROL BOARDMEETING MINUTESWEDNESDAY, SEPTEMBER 2, 2015NORTHWEST OFFICE BUILDING, CONFERENCE ROOM 117, HARRISBURG, PATim Holden, ChairmanJoseph E. “Skip” Brion, Board MemberMichael Negra, Board MemberJohn E. Metzger, Executive DirectorJohn Stark, Board SecretaryOffice of Chief CounselBureau of LicensingBureau of Human ResourcesBureau of Purchasing and ContractingBureau of Retail OperationsBureau of Product Selection/MarketingFinancial ReportOther IssuesPUBLIC MEETING – 11:00 A.MBoard Secretary John K. Stark indicated that a quorum of the Board was present and Chairman Holden called themeeting to order.CALL TO ORDER . Chairman HoldenPledge of Allegiance to the FlagOLD BUSINESS. Secretary StarkA. Motion to approve the previous Board Meeting Minutes of the August 19, 2015 meeting.Motion Made:Seconded:Board Member NegraBoard Member BrionBoard Decision:Unanimously approved (3-0 vote) previous Board Minutes.PUBLIC COMMENT ON AGENDA ITEMSThere was no comment on the printed agenda items.NEW BUSINESSFrom the Office of Chief Counsel . Faith Smith Diehl, Chief Counsel(1)Nostalgia202 West Main StreetAnnville, Pennsylvania 17003-1325Restaurant Liquor License No. R-18148LID 58972Request to TerminateConditional LicensingAgreement
Note: Board Minutes are not officially approved until all required signatures are affixed.(2)Motion Made:Seconded:Board Member NegraBoard Member BrionBoard Decision:Chairman Holden asked if anyone was present on behalf of the licensee, but therewas no response. Unanimously agreed (3-0 vote) to Deny Request to Terminatethe Conditional Licensing Agreement.Buddy Clarke’s Tavern, Inc.1604 Clay AvenueDunmore, PA 18509-2106R-13323LID 49881Citation No. 14-1372CAdministrative Law JudgeAppealMotion Made:Seconded:Board Member NegraBoard Member BrionBoard Decision:Attorney Michelle Fox from the Office of Chief Counsel explained the case. TheLicensee was cited for sales to a minor. The ALJ sustained the citation, imposeda three thousand dollar ( 3,000.00) fine, and ordered RAMP compliance. TheLicensee appealed the ALJ’s determination, but the appeal was filed late. Onappeal, the Licensee claimed several bases for the late appeal, including financialhardship. Ms. Fox indicated that none of the reasons claimed by the Licenseewould justify allowing the late appeal and that the evidence presented before theALJ supported that Licensee’s bartender had served a minor. The Office of ChiefCounsel recommended affirming the ALJ and dismissing the appeal.Member Brion asked for some clarification regarding the Licensee’s argument onappeal.Ms. Fox explained that the Licensee’s argument focused primarily on the reasonsfor the late filing and the financial hardship that the Licensee has experienced.However, she also noted that the Licensee had already paid the three thousanddollar ( 3,000.00) fine.Unanimously agreed (3-0 vote) to Affirm the ALJ and dismiss the appeal.2
Note: Board Minutes are not officially approved until all required signatures are affixed.(3)Proposed RegulatoryChangesRegulation - Management ContractsMotion Made:Seconded:Board Member NegraBoard Member BrionBoard Decision:Attorney Rod Diaz from the Office of Chief Counsel explained the proposedregulatory change. Mr. Diaz stated that there are currently some conflicts in thelaw regarding owners of licensed establishments and management companies. Heindicated that management companies are currently prohibited from having apecuniary interest in the operation of a licensed business. However, the PLCBhas received industry feedback indicating that this is not working. Therefore, theproposed regulatory changes would delete the provisions that prohibitmanagement companies from having a pecuniary interest in a license. Mr. Diazindicated that the proposed changes will need to be submitted to the IndependentRegulatory Review Commission for its review and then proceed through theregulatory review process. However, he does not believe the proposed changeswill have any adverse impact, and he does not anticipate any pushback regardingthese proposed changes.Member Negra asked Mr. Diaz if these proposed changes were needed to bringthings into the 21st century with regard to management agreements.Mr. Diaz responded by indicating that the industry expressed a need for thechange because of difficulties they were experiencing, and these proposedchanges will address the concerns raised accordingly.Unanimously agreed (3-0 vote) to Accept the Proposed Regulatory Changes.3
Note: Board Minutes are not officially approved until all required signatures are affixed.Regulation – Right to Occupy(4)Proposed RegulatoryChangesMotion Made:Seconded:Board Member NegraBoard Member BrionBoard Decision:Attorney Rod Diaz from the Office of Chief Counsel explained the proposedregulatory change. Mr. Diaz stated that, under current PLCB regulations,licensees are required to establish that they have the right to occupy the premisesto be licensed, which must be evidenced by a deed, lease, or bill of sale.However, an issue was raised by licensees that some management companies donot have formal lease agreements. The proposed regulatory change will allow theright to occupy requirement to be satisfied through other written documentation.Mr. Diaz indicated that this is a final form regulation which has already beenpresented to the Independent Regulatory Review Commission. The onlycomment that was received during the review process was from the IndependentRegulatory Review Commission, which requested that the PLCB check with theGaming Control Board to make sure the proposed change would not haveunintended consequences for casinos. The PLCB checked with the GamingControl Board, and the Gaming Control Board did not have any issues with theproposed regulation.Unanimously agreed (3-0 vote) to Accept the Proposed Regulatory Changes.From the Bureau of Licensing . Jerry Waters, Director of Regulatory AffairsTisha Albert, Director, Bureau of Licensing(1)(2)Notice of Change in BusinessStructure – RestaurantBHMK Enterprises, LLCR-7808 (LID No. 66646) Case No. 15-90981308 Frankford AvenuePhiladelphia, Philadelphia CountyMotion Made:Seconded:Board Member NegraBoard Member BrionBoard Decision:Unanimously agreed (3-0 vote) to Approve Notice of Change in BusinessStructure.New & Requests for InteriorConnections with Other Businesses& to Conduct Another Business onthe Licensed Premises – HotelCBK Lodge, LPt/a Camelback Lodge AquatopiaH-6466 (LID No. 70926)193 Resort DrivePocono TownshipTannersville, Monroe County4
Note: Board Minutes are not officially approved until all required signatures are affixed.(3)(4)Motion Made:Seconded:Board Member NegraBoard Member BrionBoard Decision:Unanimously agreed (3-0 vote) to Approve New Application & Requestsfor Interior Connections with Other Businesses & to Conduct AnotherBusiness on the Licensed Premises.Conditional Licensing AgreementPerson-to-Person Transfer –RestaurantLiberty Retro Café, LLCt/a Avenue Bar & GrillR-6291 (LID No. 70677) Case No. 15-90761501 Lancaster AvenueReading, Berks CountyHOLD – 7/29/15 SESSIONMotion Made:Seconded:Board Member NegraBoard Member BrionBoard Decision:Unanimously agreed (3-0 vote) to Approve Transfer with ConditionalLicensing Agreement.“Intermunicipal” Double Transfer& Requests for InteriorConnections with AnotherBusiness & to Conduct AnotherBusiness on the LicensedPremises – RestaurantWeis Markets, Inc.R-1524 (LID No. 71945)365 South Cedar Crest BoulevardAllentown, Lehigh CountyMotion Made:Seconded:Board Member NegraBoard Member BrionBoard Decision:Chairman Holden asked Jerry Waters, Director of the Office of RegulatoryAffairs, if there are any gas pumps at the proposed location. Mr. Watersindicated that, to the best of his knowledge, there are no gas pumps.Member Brion noted that Cedar Crest College is located within threehundred (300) feet, but they have not objected.Unanimously agreed (3-0 vote) to Approve Transfer & Requests forInterior Connections with Another Business & to Conduct AnotherBusiness on the Licensed Premises.(5)“Intermunicipal” Double Transfer& Requests for InteriorConnections with AnotherBusiness & to Conduct AnotherBusiness on the LicensedPremises – RestaurantWeis Markets, Inc.R-11600 (LID No. 71942)5580 Crawford DriveHanover TownshipBethlehem, Northampton County5
Note: Board Minutes are not officially approved until all required signatures are affixed.Motion Made:Seconded:Board Member NegraBoard Member BrionBoard Decision:Chairman Holden asked Jerry Waters, Director of the Office of RegulatoryAffairs, if there are any gas pumps at the proposed location. Mr. Watersindicated that, to the best of his knowledge, there are no gas pumps.Unanimously agreed (3-0 vote) to Approve Transfer & Requests forInterior Connections with Another Business & to Conduct AnotherBusiness on the Licensed Premises.(6)(7)(8)Renewal – District 3Main Street Bar & Grill, Inc.R-14072 (LID No. 43777) Case No. 15-9062316-318 South Main StreetShenandoah, Schuylkill CountyMotion Made:Seconded:Board Member NegraBoard Decision:Hold by Board Member Negra for a Conditional Licensing Agreement.Conditional Licensing AgreementRenewal – District 8Northeast Concessions, LPR-15046 (LID No. 54136)1280 State Highway Route 315Plains TownshipWilkes Barre, Luzerne CountyMotion Made:Seconded:Board Member NegraBoard Member BrionBoard Decision:Unanimously agreed (3-0 vote) to Approve Renewal with NewConditional Licensing Agreement.Renewal – District 6SDS Ventures, LLCR-1154 (LID No. 64602) Case No. 15-90201808 Main StreetAliquippa, Beaver CountyMotion Made:Seconded:Board Member NegraBoard Decision:Hold by Board Member Negra for a Conditional Licensing Agreement /Offer in Compromise.6
Note: Board Minutes are not officially approved until all required signatures are affixed.From the Bureau of Human Resources . Jason Lutcavage, Director of AdministrationJennifer Haas, Director, Bureau of Human ResourcesPersonnel Actions(1)Richard Claude – Removal Action(2)Tierra Graham – Affirm Removal(3)Reginald Jackson – Removal Action(4)William Malandrakis – Removal Action(5)Bryson Pitt – Removal Action(6)Barry Seibert – Removal ActionMotion Made:Seconded:Board Member NegraBoard Member BrionBoard Decision:Unanimously agreed (3-0 vote) to Approve all Personnel Actions.From the Bureau of Purchasing and Contracting . Oren Bachman, Chief Financial OfficerMelinda John, Director, Bureau of Purchasing & Contracting(1) Fire Alarm System Replacement – DGS Public Works Project – This will be a Design/BuildRequest for Proposal (RFP) handled by DGS Public Works in conjunction with the PLCB toupgrade/replace the Northwest Office Building’s (NWOB) Fire Alarm System. Funding wasapproved in the Capital Budget Project Itemization Act of 2013-14 and will be transferred to DGSupon request. The Board will approve the final spend prior to the award of any contract – 1,500,000.00 estimated cost.(2) F5 Load Balancers with One (1) Year of Support – DGS Statewide Contract – VENDOR: ePlus– TERM: One (1) year – Provide two (2) F5 Local Traffic Management Appliances with one (1)year of support to replace two (2) Cisco ACE Content Switches. These appliances will be used tobalance Intranet and Internet network traffic loads to application servers, as well as provideautomatic failover from one application server to another for high-availability with little or nodisruption to users – 71,469.46 estimated cost.(3) Steel Shelving – DGS Statewide Contract – VENDOR: Kent Fixture Corp. – Steel shelving for thehybrid branding of Store #2334 in Glen Mills – 60,423.74 estimated cost.(4) Application Developer 2 Staff Augmentation – DGS Statewide Contract – VENDOR: ComputerAid, Inc. – TERM: Four (4) months – Provide support for Retail Sales Audit (RESA), CashManagement and General Ledger modules for the IBMS Financial Support team. The additionalsupport is needed until the vacant positions on the team are filled – 59,158.65 estimated cost.7
Note: Board Minutes are not officially approved until all required signatures are affixed.(5) Furniture for Store #2334 – DGS Statewide Contract – VENDOR: TC Millwork – New centertable, wall units and display carts for store #2334 in Glen Mills – 110,175.56 estimated cost.(6) Info Tech Gold Subscription Renewal – DGS Invitation to Qualify Contract – VENDOR: InfoTech Research Group – TERM: One (1) year – This subscription allows named users access for ITresearch in an effort to reduce cost, increase efficiencies and to improve service – 21,385.00estimated cost.Motion Made:Seconded:Board Member NegraBoard Member BrionBoard Decision:Unanimously agreed (3-0 vote) to Approve all Purchasing & Contractingmatters.From the Bureau of Retail Operations .Charlie Mooney, Director of Retail Operations1. #9716 – 271 Briggs Street, HarrisburgParking Agreement (36 spaces)2. #1705 – 1824 Daisy Street, ClearfieldAmendment3. #2103 – 109 South Conestoga Drive, ShippensburgAmendment4. #2211 – 1158 Mae Street, HummelstownAmendment5. #4028 – 850 Sans Souci Parkway, Wilkes-BarreAmendment6. #4605 – 103 West Cheltenham Avenue, CheltenhamAmendment7. #23XX – 4809 Edgemont Avenue, BrookhavenTemporary Store (to replace #2309)8. #4004 – 300 Laird Street, Wilkes-BarreRelocation / Consolidation (#4015 and #8458)9. #6518 – 8775 Norwin Avenue, North HuntingdonRelocation / ExpansionMotion Made:Seconded:Board Member NegraBoard Member BrionBoard Decision:Unanimously agreed (3-0 vote) to Approve all Retail Operations Actions.8
Note: Board Minutes are not officially approved until all required signatures are affixed.From the Bureau of Product Selection/Marketing . Dale Horst, Director of Marketing/MerchandisingJoseph Puhalla, Director of Product Selection1. Regular Cost and Retail DecreasesCODEPRESENTCOSTRETAILBRAND NAME AND SIZEPROPOSEDCOSTRETAILBACARDI USA INC0423807971Dewar's White Label Scotch1.75 L, 6 Units Per CaseVelocity Code: B Cost Per Unit:Dewar's 12 Yr Scotch750 mL, 12 Units Per CaseVelocity Code: C Cost Per Unit: 163.14 27.19 43.99 159.42 26.57 42.99 274.32 22.86 36.99 259.44 21.62 34.99 103.92 8.66 14.99 96.84 8.07 13.99 103.92 8.66 14.99 96.84 8.07 13.99 103.92 8.66 14.99 96.84 8.07 13.99 89.52 14.92 24.99 85.92 14.32 23.99 103.92 8.66 14.99 96.84 8.07 13.99 103.92 8.66 14.99 96.84 8.07 13.99 103.92 8.66 14.99 96.84 8.07 13.99 104.76 8.73 14.99 97.80 8.15 13.99 104.76 8.73 14.99 97.80 8.15 13.99 89.52 14.92 24.99 85.92 14.32 23.99 103.92 8.66 14.99 96.84 8.07 13.99 89.52 14.92 24.99 85.92 14.32 23.99 103.92 8.66 14.99 96.84 8.07 13.99 89.52 14.92 24.99 85.92 14.32 23.99JIM BEAM BRANDS 5205064050700507105074Pinnacle Vanilla Vodka750 mL, 12 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Orange Vodka750 mL, 12 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Citrus Vodka750 mL, 12 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Whipped Vodka1.75 L, 6 Units Per CaseVelocity Code: B Cost Per Unit:Pinnacle Tropical Punch Vodka750 mL, 12 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Whipped Vodka750 mL, 12 Units Per CaseVelocity Code: B Cost Per Unit:Pinnacle Chocolate Whipped Vodka750 mL, 12 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Cake Vodka750 mL, 12 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Red Liquorice750 mL, 12 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Cherry Vodka1.75 L, 6 Units Per CaseVelocity Code: B Cost Per Unit:Pinnacle Cherry Vodka750 mL, 12 Units Per CaseVelocity Code: B Cost Per Unit:Pinnacle Grape Vodka1.75 L, 6 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Grape Vodka750 mL, 12 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Raspberry Vodka1.75 L, 6 Units Per CaseVelocity Code: C Cost Per Unit:9
Note: Board Minutes are not officially approved until all required signatures are 38309670Pinnacle Raspberry Vodka750 mL, 12 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Strawberry Kiwi Vodka1.75 L, 6 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Strawberry Kiwi Vodka750 mL, 12 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Pineapple Vodka750 mL, 12 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Peach Vodka750 mL, 12 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Cinnabon Cinnamon Roll Vodka750 mL, 12 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Amaretto750 mL, 12 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Coconut Vodka750 mL, 12 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Cranapple750 mL, 12 Units Per CaseVelocity Code: C Cost Per Unit:Pinnacle Citrus Vodka1.75 L, 6 Units Per CaseVelocity Code: C Cost Per Unit: 103.92 8.66 14.99 96.84 8.07 13.99 89.52 14.92 24.99 85.92 14.32 23.99 103.92 8.66 14.99 96.84 8.07 13.99 104.76 8.73 14.99 97.80 8.15 13.99 104.76 8.73 14.99 97.80 8.15 13.99 104.76 8.73 14.99 93.96 7.83 13.99 104.76 8.73 14.99 97.80 8.15 13.99 104.76 8.73 14.99 97.80 8.15 13.99 104.76 8.73 14.99 97.80 8.15 13.99 89.52 14.92 24.99 85.92 14.32 23.99 110.46 18.41 29.99 103.08 17.18 27.99WESTERN SPIRITS BEVERAGE CO07258Lexington Bourbon750 mL, 6 Units Per CaseVelocity Code: C Cost Per Unit:EFFECTIVE DATES: The proposed cost will become effective September 06, 2015 and the proposed retail prices willbecome effective when the current stock has been sold.RECOMMENDED ACTION: We recommend the Board to approve this Action.2. Regular Cost and Retail Increases DecemberCODEPRESENTCOST RETAILBRAND NAME AND SIZEPROPOSEDCOST RETAILMAJESTIC W S USA, INC.7652Josh Cellars Pinot Noir750 ML, 12 Units Per CaseVelocity Code: C Cost Per Unit: 118.68 9.89 16.99 126.36 10.53 17.99 44.64 7.44 13.49 46.32 7.72 13.99SOUTHERN WINE SPIRITS PA4030Bully Hill Grower's Blush1.5 L, 6 Units Per CaseVelocity Code: C Cost Per Unit:10
Note: Board Minutes are not officially approved until all required signatures are affixed.4072592370808428Bully Hill Niagara1.5 L, 6 Units Per CaseVelocity Code: C Cost Per Unit:Bully Hill Banty Red1.5 L, 6 Units Per CaseVelocity Code: C Cost Per Unit:Bully Hill Sweet Walter Rose1.5 L, 6 Units Per CaseVelocity Code: C Cost Per Unit:Bully Hill Grower's Red1.5 L, 6 Units Per CaseVelocity Code: C Cost Per Unit: 44.64 7.44 13.49 46.32 7.72 13.99 44.64 7.44 13.49 46.32 7.72 13.99 44.94 7.49 13.49 46.62 7.77 13.99 44.64 7.44 13.49 46.32 7.72 13.99 80.52 6.71 11.99 87.36 7.28 12.99 80.52 6.71 11.99 87.36 7.28 12.99 80.52 6.71 11.99 87.36 7.28 12.99 80.52 6.71 11.99 87.36 7.28 12.99 80.52 6.71 11.99 87.36 7.28 12.99 196.50 32.75 52.99 203.88 33.98 54.99TREASURY WINE EST AMER CO41045344534553467166Beringer Founders Pinot Grigio750 ML, 12 Units Per CaseVelocity Code: C Cost Per Unit:Beringer Founders Cabernet Sauvignon750 ML, 12 Units Per CaseVelocity Code: B Cost Per Unit:Beringer Founders Chardonnay750 ML, 12 Units Per CaseVelocity Code: C Cost Per Unit:Beringer Founders Merlot750 ML, 12 Units Per CaseVelocity Code: C Cost Per Unit:Beringer Founders Pinot Noir750 ML, 12 Units Per CaseVelocity Code: C Cost Per Unit:WILLIAM GRANT SONS INC4002Tullamore Dew Irish Whiskey1.75 L, 6 Units Per CaseVelocity Code: C Cost Per Unit:EFFECTIVE DATES: The proposed cost will become effective November 29, 2015 and the proposed retail prices willbecome effective November 30, 2015.RECOMMENDED
year of support to replace two (2) Cisco ACE Content Switches. These appliances will be used to balance Intranet and Internet network traffic loads to application servers, as well as provide automatic failover from one application server to another for high-availability with little or no
