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New Hanover County ABC Board
Meeting Minutes
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September 20, 2011
I. Call to order
a Chairman Wolfe called to order the regular meeting of the New Hanover County
Alcoholic Beverage Control Board at 8:30am on September 20, 2011 in the
General Office at 523 S. 17'' Street, Wilmington, NC.
U. Roll call
Ms. Martin, Board Secretary conducted a roll call. The following members of the
Board were present:
Thomas Wolfe, Chairman
Cedric Dickerson, Vice Chairman
David Matthews, Member
Augustus C. Everett, Jr., Member
Robert W. Martenis, Member
Wanda Copley, Legal Counsel
Avril Pinder, Ex- Officio Member
r Others in attendance were:
Daniel Sykes, Chief Executive Officer
Carol Martin, Board Secretary
Gary Cain, ABC Retail and LBD Operations Manager
Colonel Jones, NHC Sheriff's Department j
Diana Page, McGladrey & Pullen, LLP
Gina Golden, Part -time ABC Employee
Ill. Approval of minutes from last meeting
Ms. Martin presented the minutes from both the last regular meeting & Closed
Session portion. Mr. Matthews made the motion to approve the minutes as
written, Mr. Martens seconded, all approved.
IV. Approval of proposed agenda
Motion to adopt the proposed agenda was approved as written by Mr. Martenis,
seconded by Mr. Everett, all approved.
V. New business
a} Ms. Diana Page, Audit Manager with McGladrey & Pullen, LLP presented the
Independent Auditor's Report for fiscal years ended June 30, 2011 and 2010. The
New Hanover County Alcoholic Beverage Control Board was given an
unqualified opinion. The audit did note that during the year ended June 30, j
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2011, the Board recorded a special impairment charge of $1,432,000 due to a
change in intended use for land purchased during the year ended June 30, 2008.
The land was zoned residential when purchased and attempts to rezone by the
prior Board were unsuccessful. Rezoning was not attempted by the current Board.
The impairment charge has been recorded to reduce that land and related
improvements to its appraised market value as of June 30, 2011. Ms. Page also
presented the Report to the Governing Board which included a Summary of
Accounting Estimates, a Summary of Recorded Audit Adjustments and a
Summary of Uncorrected Misstatements.
Mr. Martenis made the motion to accept the annual audit and related report as
presented, Mr. Dickerson seconded, all approved.
b) ABC Law Enforcement Office's Unit Monthly (ALE) Report for August was
presented by Colonel Jones, NHC Sheriff's Department. Officers performed the
following activities for the month of August, 2011:
*Cited 1 Sell to Intoxicated ABC Law Violation
*Cited 10 Underage Possession ABC Law Violations
*Cited 3 Unauthorized Possession ABC Law Violations
*Cited 12 "Other Alcohol" ABC Law Violations
*Cited 2 Controlled Substance Possession Violations
*Cited 3 Controlled Substance Paraphernalia Violations
*Cited 3 DWI & Implied "Other Offenses"
*Cited 4 Traffic and 14 Criminal "Other Offenses" "
*Assisted 11 ABC Law Agencies
*Assisted 4 Controlled Substance Agencies
*Assisted 6 "Other" Agencies
*Performed 36 Inspections
*Performed 20 Compliance Checks
*Completed 20 Training Hours
Colonel Jones further noted 32 arrests, 37 charges, 29 inspections, 6 consent
searches, 636 store visits and 249 bank deposits. Colonel Jones thanked the
Board for purchasing the three alcohol breath sensors for the downtown units. He
noted that the department is getting positive responses from the downtown bars
regarding the additional officer exposure.
c) Mr. Sykes presented the August 2011 and Rolling 12 -Month Comparison. He
noted that August was an exciting month in New Hanover County, with a water
spout over land at Carolina Beach, a funnel cloud spotted in the Myrtle Grove
area, an earthquake in Virginia felt locally, and Hurricane Irene missing the coast
by about 50 miles. The stores closed a couple of hours early on Friday August
26 and remained closed all day on Saturday, August 27 For August, Retail
sales were up 8.91% ($160k). LBD sales were up 3.96% ($33.2k). Total Sales
were up 7.34% ($193.3k). For the 12 -Month Rolling Comparison, Retail stores
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showed a 5.48% ($1.15 million) increase in sales, LBD sales were down .61%
($58.8k) and Total sales were up 3.57 % (about $1.1 million).
d) Mr. Sykes presented the Statewide Sales for August, 2011. This information is
for spirituous beverages only (no wines /mixers are included):
Retail: We had a 8.83% increase compared to 8.03% increase Statewide.
LBD: We had a 4.00% increase compared to 7.62% increase Statewide.
Overall: We had a 7.29% increase in spirituous beverages compared to a
7.95% increase Statewide. Our overall sales figures were below the State
average by $17.4k.
e) Mr. Sykes presented the Board with Financial Statements for August and YTD—
F both compare Actual 2011 to Actual 2010 figures and Actual 2011 to Budget
2011 figures. Mr. Sykes noted that about $300k has been cut from inventories,
and that inventories will increase as we begin to receive additional shipments and
buy -ins for the holiday season. Mr. Sykes further noted that Net Income before
Distributions was up $68.5k over last year.
j f) Mr. Sykes presented the Board with two proposed purchases:
a 1.) Surveillance Equipment Upgrades for stores #102 - Carolina Beach Road,
#105 - Carolina Beach, and #106- College Road. These systems have been of
concern for our law enforcement personnel for several months. Mr.
Dickerson made the motion to authorize this capital expense of $8,465.00; Mr.
Martenis seconded, all approved.
2.) Landscaping for store #105 - Carolina Beach. Five of the palm trees have
died in recent years and the Senior Planner for the Town of Carolina Beach
s stated that the trees must be replaced if removed. Mr. Everett made the
motion to authorize our landscape company to remove and replace the five
trees for approximately $1,860.00; Mr. Martenis seconded, and all approved.
g) Ms. Martin presented the Board with a proposed purchase of Financial Statement
Spreadsheet ApQlication Software Global Software's Designer GL Custom
Profile is a spreadsheet application which integrates with our SLQ Traverse
F (General Ledger Data) software in real time. This will produce "perpetual" j
financial statements and free -up valuable time currently spent producing monthly
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financial statements in Excel manually. Ms. Pinder made the motion to make the
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purchase for an amount not -to- exceed $14,080.00; Mr. Martenis seconded, and all
approved.
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h) Mr. Sykes presented the Board with a Memo of Record dated 9/15/2011 that
documents his review of the plan and the related personnel involved. The
F primary concern of the Succession Plan is to provide coverage for key personnel
during absences for up to eight weeks, at which time permanent decisions can be
{ made. The Plan requires the CEO to review the plan on an annual basis. The
review assesses the organization, assesses key employees, develops employees,
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and if needed, plan recruitment and management placement of identified
candidates. Management cross training has already begun in his review of the key
positions: 1) Chief Executive Officer, 2) Accounting, Finance & Administrative
Manager, 3) Purchasing & Logistics Operations Manager, and 4) Retail & LBD
Operations Manager. Mr. Matthews made the motion to approve the Board's
review of the current plan; Mr. Dickerson seconded, and all approved.
VI. Closed Session
The Board entered into Closed Session to discuss a potential real estate
acquisition in accordance with NC GS 143- 318.11(a)(5). Mr. Martenis made
the motion to enter into Closed Session, Mr. Everett seconded, all approved.
After several minutes in Closed Session, Open Session began again. Mr.
Martenis made the motion to restart the Open Session; Mr. Dickerson
seconded, all approved.
VII. Return to Oven Session
It was stated that the Closed Session resulted in the Board authorizing Chairman
Wolfe to execute initial and subsequent real estate documents on behalf of the
Board contingent on approval by the North Carolina Alcoholic Beverage Control
Commission.
VIII. Adiournment
Mr. Dickerson made the motion to adjourn the meeting; Mr. Martenis seconded,
all approved.
Minutes submitted by:
Car E. Martin, cretary
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Minutes approved Date:
Thomas Wolfe, Chair
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