October 15 2013 Regular Minutes f
New Hanover County ABC Board
Meeting Minutes
October 15, 2013
I. Call to order
Chairman Cedric Dickerson called to order the regular meeting of the New Hanover County
Alcoholic Beverage Control Board at 8:30am on October 15, 2013 in the General Office at
523 S. 17`h Street, Wilmington,NC.
II. Roll calf
Carol Martin, Board Secretary, conducted a roll call. The following Members of the Board
were rem
Cedric Dickerson, Chairman
Robert W. Martenis, Vice Chairman
Thomas Wolfe, Member
Augustus C. Everett, Jr., Member
David Matthews,Member
Others in attendance were:
Dan Sykes, Chief Executive Officer
Gary Cain, Retail and LBD Operations Manager
Carol Martin, Board Secretary
Avril Pinder, Ex-Officio Member
Wanda Copley, Legal Counsel
Colonel Arch Jones,NHC Sheriffs Department
Shea Carr, ABC Vacation/Relief Manager
Charles Walker,Former ABC Board Chairman
III. Conflict of Interest Reminder
Mr. Dickerson verbally confirmed that the Board members had read the following ethics
reminder:
"In accordance with General Statute I8B-201, it is the duty of every Board
member to avoid both conflicts of interest and appearances of conflicts. Does any
member have any !mown conflict of interest or appearance of conflict with respect
to any matters coming before the Board today? Ifso,please identify the conflict or
appearance of conflict and refrain from any undue participation in the particular
matter involved."
Let it be recorded that no conflicts were identified by any Board member regarding this
Board meeting.
IV. Approval of minutes from last meeting
Mr. Dickerson presented the minutes from the Special Meeting of September 26, 2013. Mr.
Martenis made the motion to approve the minutes as written,Mr. Wolfe seconded, all
approved.
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VIII. Administrative Reports (cone.)
b) Mr. Sykes presented the Board with Financial Statements for September, 2013. He
reported that for the month, the Actual-to-Budget comparison showed that Gross Sales were
less than projected by$209k(7.51%), Income from Operations was less than budget by$24k
(6.61%), and that for the year,Net Income before Distributions was less than budget by
$23.3k (6.45%). Mr. Sykes noted that September, 2012 included five(5) Saturdays,versus
September, 2013 which included five (5)Mondays.
c)Mr. Sykes briefed the Board on six(6)updates:
1)The Annual Board Update before the County_Commissioners will be presented by Mr.
Dickerson on October 21, 2013 in the Historic Courthouse at 10:OOam, and all Board
members are invited to attend.
2) The Board's Architect, LS3P, is hosting the New ABC Complex pre-construction
meeting at 10:00am October 16, 2013, and Mr. Martens, Mr. Cain, and Mr. Sykes are
expected to attend.
3)Evergreen, LLC,the Board's Employee Classification and Compensation Study
consultant, has requested information to perform their study. Information requested
includes job descriptions, pay scales, and employment policies. Mr. Sykes will attend the
8:30am October 28, 2013 orientation meeting at the Government Center with department
heads. In separate meetings and on a voluntary basis, Board employees will be given their
opportunity for input into the study.
4) The Independent Auditor contract for the year ending June 30, 2014 has been
executed.
5) The County Purchasing Office will advertise the New Board Delivery Truck for bids
soon,with an anticipated due date for bids near November 7, 2013.
6)Mr. Sykes presented Ms. Pinder with an$800.00 check written to Coastal Care. Ms.
Finder serves on the Coastal Care board, and stated that these funds go to the schools for
alcohol education. The Board has collected and remitted$1,750.00 to date from donations
received for cardboard boxes and from the sales of wooden pallets.
IX. New Business
a)Mr. Sykes recommended the Board retain its commercial insurance coverage through HPB
Insurance Group for the November I"annual renewal. Following a staff policy review
meeting held on October 4, 2013 that also included Jennifer Stancil, County Risk Manager
and HPB agent Jim Mahoney, it was recommended that the Board increase its Data Breach
coverage from$250k to $500k, at an additional cost of$585; the total HPB premium is
increasing about $5,400 from last year. Mr. Sykes noted that the HPB proposal did not
include Flood Insurance or Public Officials Liability/Employment Practices Insurance, as
these do not renew on November 15t. Mr. Martenis made the motion to authorize the Chair to
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e) Mr. Sykes apprised the Board that its health insurance provider, First Carolina Care, was
offering early renewal for health insurance. The normal date of renewal is June 1",but by
renewing effective December 1, 2013,the Board can lock into a firm one-year contracted
rate. Mr. Dickerson stated that he had spoken with the Board's agent and that the agent
expected a 10-15% increase at a June I"renewal. Mr. Dickerson, an insurance agent, said he
felt that being proactive would be a wise move. The stated increase rate known at the date of
the meeting was 4%. Mr. Sykes stated that early renewal will give the insurance industry
time to settle-down after the Affordable Care Act has been in place longer. Mr. Martenis
made the motion to accept First Carolina Care's early renewal option with a 4% increase
effective December 1, 2013 for 12 full months. Mr. Wolfe seconded the motion, and all
approved.
X. Public Comments on Non-Agenda Items
Mr. Walker rose to speak briefly. He stated that he had served on the New Hanover County
ABC Board for 12 years, beginning about 1977 when there were only three Board members,
and during that time the existing building at 17`'' and Castle Streets was expanded, and that
the then-new Liquor By The Drink(LBD) division was first introduced. He stated that it
appears that the current Board is doing a good job.
XI. Closed Session
The Board entered into Closed Session to discuss a personnel matter, pursuant to GS
143-318.II(a)(6). Mr. Martenis made the motion to enter into Closed Session,Mr.
Matthews seconded, all approved. After several minutes in Closed Session, Open
Session began again. Mr.Martenis made the motion to restart the Open Session; Mr.
Wolfe seconded, all approved.
XII. Return to Open Session
It was stated that the Closed Session resulted in an exceptional, unanimous CEO appraisal, with
both a recommended 6.67% base salary increase to be voted upon by the Board of County
Commissioners, and an administrative directive. The administrative directive was a$75 monthly
"technology allowance" supplement to be issued immediately to both Mr. Sykes and Mr. Cain,
and to be reported on Form 1099. Ms. Copley and Mr. Wolfe recommended that the CEO look
at additional ABC staff to assess any directive supplement need in accordance with the County's
plan and to present the results at a later meeting. Mr. Wolfe made the motion to approve the $75
monthly technology allowance supplement to Mr. Sykes and Mr. Cain, Mr. Martenis seconded,
and all approved.
XIII. Adiournment
Mr. Martenis made the motion to adjourn the meeting; Mr. Wolfe seconded, all approved.
Minutes submitted by: 6u6o 1nw-k_
Carol E. Martin, Secretary
Minutes approved by: .C�s&-' 4(l Date:
Cedric Dickerson, Chairman
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