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December 16 2014 Board Meeting MinutesNew Hanover County ABC Board Meeting Minutes December 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 December 16, 2014 at the General Office, 6009 Market Street, Wilmington, NC. II. Roll call Carol Martin, Board Secretary, conducted a roll call. The following Members of the Board were present: Cedric Dickerson, Chairman Robert W. Martenis, Vice Chairman Thomas Wolfe, Member William A. Kopp, Jr., Member Augustus C. Everett, Jr., Member Others in attendant were: Dan Sykes, Chief Executive Officer Gary Cain, Retail and LBD Operations Manager Carol Martin, Board Secretary Wanda Copley, Legal Counsel Avril Pinder, Ex -Officio Member Maj. M. J. Adams, NHC Sheriff's Department Linda Gregory, Retail Store Manager- Market Street Taylor B. Simms, LS3P Associates, LTD Senior Associate & Project Manager Charles Boney, LS3P Associates, LTD Principal Mark Francolini, New Hanover County Human Resources Director Cheryl Knips, New Hanover County Human Resource Analyst Caroline Dawkins, New Hanover County MPA Fellow Bill Jayne, Carolina Place /Ardmore Neighborhood Association Member Jonathan Spiers, Reporter, Port City Daily IILA rova f minutes from last mee in Mr. Dickerson presented the minutes from the last Regular Meeting of November 18, 2014. Mr. Martenis made the motion to approve the minutes as written. Mr. Wolfe seconded, and all approved. IV. 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 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 refrainfrom any undueparticipation in theparticitlar matter involved. " I I P a g e Let it be recorded that no conflicts were identified by any Board member regarding this Board meeting. V. AVproval of 1roposed agenda Mr. Martenis made the motion to accept the proposed meeting agenda as written with three (3) additions and one (1) change in sequential order. The additions were: Mr. Wolfe's inclusion in the closed session portion of today's meeting to discuss real estate (per NS GS 143- 318.11(a)(5), Mr. Sykes' apprising the Board of a weekend crash into one of the retail stores, and Mr. Sykes' explanation of how the ABC Commission's 511115 change in bailment and surcharge will affect the sales price on a bottle of liquor to the customer. Agenda item, "Employee Recognition" was moved to just after item 2.c. Mr. Wolfe seconded the motion, and all approved. VI. Administrative Reports A. ABC Law Enforcement Officer's Unit Monthly (ALE) Report for November was presented by Maj. Adams. Officers performed the following activities for the month of November, 2014: *445 Store Visits *284 Bank Deposits *7 Change Deposits *5 Video Investigations * 17 Charges * 16 Arrests *2 Searches (Consent or Probable Cause) *Cited 17 "Underage Possession" ABC Law Violations *Cited 5 "Unauthorized Possession" ABC Law Violations *Cited 2 "Other Alcohol" ABC Law Violations *Cited I "Man /Sell /Deliver, Trafficking" Controlled- Substance Violations *Cited 2 "Possession" Controlled- Substance Violations *Cited 22'Traffic" Other Offenses *Cited 4 "Criminal" Other Offenses *Assisted 18 ABC Law Agencies *Assisted 8 Controlled Substance Agencies *Assisted 5 Other Agencies *Performed 37 Business Inspections *Noted 4 Miscellaneous Violations Submitted *Performed 2 8 Business Compliance Checks *Completed 48 Training Hours B. Mr. Sykes presented the Board with Financial Statements for November, 2014. Mr. Sykes reported for November, the Actual -to- Budget comparison showed Gross Sales greater than projected by $65.5k (9.34 %), Operating Expenses less than budget by $24k (6.4 %), and Income from Operations better than budget by $89.5k (27.39 %). Year to date, Gross Profits were more than projected by about $337.5k (8.67 %), and "Change in Net Position before Profit Distributions" had a positive variance of $577k (71.91 %). Having completed the new ABC Complex, there are no funds currently Restricted for Capital Improvements. 21 Page C. Mr. Sykes presented the Board with a few updates: a. The IRS Standard Business Mileage Rate for 2015 will be $0.575/mile, up from $0.56 in 2014. b. The Water Supplier Change at the Wrightsville Avenue Store is expected at the same time as development of the neighboring Galleria parcel begins, per McKim & Creed Project Manager Ms. Murphy c. A customer crashed into the front doors of the Carolina Beach Store Saturday evening, December 13'h. No one was injured, no charges were tiled and the store received damages estimated at $20k. The Board's insurance carrier is handling the claim with the driver's insurance company. d. Mr. Sykes surmised that the ABC Commission's 511115 modifications to the price mark -up formula (decrease in bailment per case from $1.60 to $1.50; increase in the bailment surcharge per case from $0.80 to $1.40; and increase in local Board markup from 39.00% to 39.50 %) will most likely have little effect on the sales price per bottle to our customers. VII. Employee Recognition & Service Awards Mr. Sykes introduced Ms. Gregory to the Board. Ms. Gregory has served the Board since December, 2004, and is currently the Retail Store Manager at the old Bob Evans store location. This store consistently has the highest sales volume, and Ms. Gregory consistently receives "Exceeds Expectations" performance review ratings from her supervisors. Mr. Dickerson and Mr. Sykes presented Ms. Gregory with a ten -year plaque and thanked her for her service. VIII. New Business A. Mr. Sykes presented the Board with his Recommendation and Justification regarding the 17'" Street Facility. His recommendation was to renovate the existing building including an entirely new roof with the construction contract alone capped at $2.2 million. This recommendation comes in lieu of building on a new site, or tearing down and rebuilding on the existing site. To quantify the efficiency with which this Board operates and to justify his recommendation, Mr. Sykes derived the average employment cost /case of liquor ( "Total Pay & Benefits $'s" divided by the "Number of Cases Sold'). Comparable Boards (Cumberland, Durham, Greensboro and the Triad) average employment cost is $17.77 /case, whereas the New Hanover County ABC Board's is $13.84 average employment cost /case. This equates to an annual savings of about $800k (based on FYI 3/14 audited financial statements). Mr. Sykes points out that this supports why larger, nicer buildings in our county are justified for customers, as we are 5"' in North Carolina in sales volume, but 3rd in North Carolina in tax and profit distribution dollars paid to the local government beneficiaries. He also stated that it is less expensive to operate one large store rather than two small stores. Following Board discussion, Mr. Martenis made a motion to accept Mr. Sykes recommendation to renovate the existing 17`h Street/Castle Street building, however at a dollar amount not to exceed $2.0 million for the renovation inclusive of the construction contract and "soft costs" (such as architect /engineering fees /printing, permits, etc.). Mr. Kopp seconded the motion, and all approved. Mr. Wolfe noted that the actual motion is tabled until the January Board meeting when Mr. Boney and Ms. Simms and the Real Estate Committee come to the Board with the feasibility of renovating for no more than $2.0 million. B. Mr. Cain presented the Board with four (4) recommendations: a. Blinds at new ABC Headquarters -for all Boardroom walls and for the interior six glass office walls. Having reviewed all of the qualifying bids and contacting their references, Mr. Cain 31 Page recommended approving Kernersville's Commonwealth Blinds bid, at an amount not to exceed $5k. Mr. Wolfe made the motion to authorize the Board Chair /Vice Chair to execute necessary documents to have the blinds purchased and installed at this cap. Mr. Martenis seconded the motion, and all approved. b. Security System Upgrade at Wrightsville Beach Retail Store -ABC officer Joe Jewell recommended upgrading to outdoor cameras with night vision, a 4- terabyte hard drive, etc. to enhance store protection. Having reviewed all of the qualifying bids and contacting their references, Mr. Cain recommended approving the Security Plus Electrical bid, at an amount not to exceed $4k. Mr. Martenis made the motion to authorize the Board Chair /Vice Chair to execute necessary documents to upgrade the security system at this cap. Mr. Kopp seconded the motion, and all approved. c. Pest Control Service Contract. Having reviewed all of the qualifying bids and contacting their references, Mr. Cain recommended approving the Terminix Pest Control bid to provide monthly service at the nine (9) Board locations for 36- months, at an annual fee not to exceed $4,200.00. Mr. Martenis made the motion to authorize the Board Chair /Vice Chair to execute necessary documents to enter into a 36 -month pest control service agreement at this cap. Mr. Wolfe seconded the motion, and all approved. d. Heating /Ventilation /Air Conditioning (HVAC) Service for all Board locations, except new ABC Headquarters and 17`h Street /Castle Street locations. [The new Headquarters is under a one-year warranty contract, and the I7rh Street7Castle Street location will be undergoing renovations, including new HVAC]. In an effort to enhance preventive maintenance, and to assure priority treatment from the awarded bid contractor regarding periodic inspections, emergency service, general maintenance, and repairs, Mr. Cain sought public bids. Having reviewed all of the qualifying bids and contacting their references, Mr. Cain recommended approving the Newcomb and Company 36 -month bid contract for an amount not to exceed an annual budget of $4,500.00. Mr. Wolfe made the motion to authorize the Board Chair /Vice Chair to execute necessary documents to enter into a 36 -month HVAC maintenance agreement /contract at this cap. Mr. Martenis seconded the motion, and all approved. C. Mr. Sykes suggested tabling his agenda item, "Appraisal of Excess Property -6009 Market Street" until the January 20, 2015 Board Meeting. No action was made. ITI. Closed Session Mr. Dickerson made the motion to go into Closed Session. Mr. Wolfe seconded the motion and all approved, The purpose of the Closed Session meeting was to both discuss the annual CEO appraisal review in accordance with NC GS 143 -318.1 l(a)(6), and to discuss potential real estate acquisition in accordance with NC GS 143.318.11(a)(5). Mr. Martenis made the motion to return to Open Session; Mr. Kopp seconded the motion, and all approved. The Chair stated that Mr. Sykes' will receive a 2.5% merit increase to be effective October 1, 2014. IV. Adjournment 41 Page a�� -� �� , `� 'a �`� .fit � eR �' ��.a ��% 4 �:� � "eE r'�� py.4'' >� r :�)