September 16 2014 Board Meeting Minutes New Hanover County ABC Board
Meeting Minutes
September 16, 2014
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 September 16, 2014 in the General Office at
523 S. 17th Street, Wilmington,NC.
II. Roll call
Mr. Dickerson noted that all the following Members of the Board were present:
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, Acting Assistant Chief Executive Officer
William Kopp, Incoming Board Member
Kathy Clark, Acting Board Secretary
Charles Hill, Acting Retail & LBD Operations Manager
Tonia Moore, ABC Store #103 Vacation/Relief Manager
Wanda Copley, Legal Counsel
Major M.J. Adams,NHC Sheriff's Department
Taylor B. Simms, LS3P Associates, LTD Senior Associate & Project Manager
Charles Boney, LS3P Associates, LTD Principal
David Boyce, Koonce, Wooten& Haywood, LLP
III. Call meeting to order
Mr. Dickerson verbally confirmed that the Board members had read the following ethics
reminder:
"In accordance with General Statute 18B-201, it is the duty of every Board
member to avoid both conflicts of interest and appearances of conflicts. Does any
member have any known conflict of interest or appearance of conflict with respect
to any matters coming before the Board today? If so,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.
1
IV. Approval of minutes from last meeting
Mr. Dickerson presented the minutes from the last Regular Meeting of August 19, 2014. Mr.
Martenis made the motion to approve the minutes as written, Mr. Wolfe seconded, all
approved.
V. Approval of proposed agenda
No changes to the proposed agenda. Motion to adopt the prepared agenda as written was
made by Mr. Martenis, seconded by Mr. Wolfe, all approved.
VI. Employee Recognition
The Board recognized Ms. Tonia Moore for her upcoming promotion to the 17th Street LBD
store Assistant Manager and her full-time service since May 2010.
VII. Administrative Reports
a) ABC Law Enforcement Officer's Unit Monthly (ALE) Report for August was reviewed by
Major Adams. Officers performed the following activities for the month of August, 2014:
*411 Store Visits
*417 Bank Deposits
*15 Change Deposits
*40 Charges
*16 Video Investigations
*21 Arrests
*11 Searches
*Cited 13 "Underage Possession" ABC Law Violations
*Cited 15 "Unauthorized Possession" ABC Law Violation
*Cited 6 "Other Alcohol" ABC Law Violations
*Cited 22 "Traffic" Other Offense
*Cited 24 "Criminal" Other Offenses
*Assisted 28 ABC Law Agencies
*Assisted 14 Controlled Substance Agencies
*Assisted 7 "Other" Agencies
*Performed 39 Business Inspections
*Performed 66 Business Compliance Checks
b) Mr. Sykes presented the Financial Statements for August 2014. He reported that the
Statements of Net Position showed that cash was down $2.58 million compared to last
year. He reported that as of 8131114, $911k was the remaining balance due on the ABC
Complex, which some of this balance has already been paid. Mr. Sykes reported that for
the month, the Actual-to-Budget comparison showed Gross Sales were greater than
projected by $10k. Actual-to-Budget comparison for year-to-date showed that the "Change
in Net Position before Profit Distributions" had a positive variance of over $368k.
c) Mr. Cain presented a brief summary of the New ABC Complex progress for the past 30
days (as of 9/10/14).
2
• As of 9/10/2014 Mr. Cain reports that the project is more than 99% complete, on
schedule/budget at this time.
• The Real Estate Committee and member of the ABC staff participated in a walk
through inspection on 9/10/2014. This was led by Taylor Simms of LS3P and The
Board's Construction Manager TJ Land. No major setbacks were discovered and
only minor problems made it to the punch list.
• Mr. Cain reported that it is expected Administration to begin moving on
9/26/2014. The final phase will be to open the new LBD #107 on October 13,
2014.
d) Mr. Boney gave an update on the renovations at the 17th Street location. The previous
month's whole cost preliminary estimate was incorrectly showing LS3P fee percentage as
8.5% instead of the 12% as listed in their contract. Using the correct fee raises the total
project cost estimate to $2,513,582. Mr. Boney requested that the Board receive this
corrected estimate for information proposes only today. Allowing them upon completion of
an independent cost estimate to revise their fees in October.
e) Mr. Boyce reviewed the audited financial report for fiscal year ended June 30, 2014. He
reported to the board that there was a material change between the audited financials when
compared to the financial statements prepared internally. Net earnings actually increased
because of an adjustment to Other Post-Employment Benefits (OPEB) which is the Health
Care Plan for certain Board retirees. Motion was made by Mr. Martenis to approve the
audited financial report for fiscal year ended June 30, 2014, as presented. Seconded by Mr.
Everett, all approved. The Board also discussed renewing the audit contract with the
current independent auditor.
f) Mr. Sykes provided a spreadsheet showing the Distributions of Taxes, Profits &Alcohol
Law Enforcement Funds for the year ended June 30, 2014. This spreadsheet shows that the
State Agencies received $10,640,951 and the Local Government Beneficiaries received
$4,546,811. Mr. Sykes went on to explain that when comparing the past four years, for the
State Agencies this was an 18.18% increase, and for Local Government Beneficiaries this
was an increase of 42.59%.
g) Mr. Sykes presented the proposal for commercial insurance coverage with HPB Insurance
Group for the period 11/1/2014 — 10/31/2015. He informed the Board that Ms. Clark had
been keeping track of the dates/times that our Warehouse employees had actually driven
(which has a higher insurance rate than working in the warehouse) over the last year. This
has made it possible to decrease the estimated payroll coverage needed for workers
compensation. Motion was made by Mr. Martenis to authorize Chair/Vice Chair to renew
the coverage as quoted by HPB Insurance Group for the upcoming insurance year which
runs November 1, 2014 through October 31, 2015. Seconded by Mr. Everett, all approved.
h) Mr. Sykes reviewed the quote for computer and related equipment for the new LBD store
from Carolina Data System. Purchasing of this equipment will enable the LBD outlet
located on 17t1 Street to remain open for the convenience of the downtown customers. He
advised the board that the quote with estimated sales taxes to be almost $13,000. Mr. Sykes
3
request authorization from the Board to purchase the computer and related equipment for
an amount not to exceed $14,000. Motion was made by Mr. Everett to authorize purchase
of computer equipment and related for the new LBD store from Carolina Data System for
an amount not to exceed $14,000 inclusive of taxes, labor and other expenses. Seconded by
Mr. Martenis, all approved.
i) Mr. Cain presented three proposals for recycling and trash removal for the new ABC
Headquarters Facility. He recommend that the Waste Industries proposal be accepted.
Motion was made by Mr. Martenis to authorize the Chair to contract with Waste Industries
for recycling services for 36 months for a monthly rate not to exceed $100 with a 12-month
guarantee. Seconded by Mr. Everett, all approved.
j) Mr. Dickerson presented a resolution to Mr. Matthews. Thanking him for his last four and a
half years of service to the ABC Board. Mr. Matthews reviewed the highlights of his years
of service on the Board.
VIII. Adjournment
Mr. Martenis made the motio- to adjourn the meeting; Mr. Everett seconded, all approved.
Minutes submitted by.'
Kathy l C. • k, Acting Board Secretary
Minutes approved by: P Date: /0-.L/ -f Y
Cedric Dickerson, Chair
4