January 20 2015 Board Meeting MinutesNew Hanover County ABC Board
Meeting Minutes
January 20, 2015
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 January 20, 2015 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 attendance were:
Dan Sykes, Chief Executive Officer
Gary Cain, Retail and LBD Operations Manager
Carol Martin, Board Secretary
Maj. M. J. Adams, NHC Sheriff's Department
Taylor B. Simms, LS3P Associates, LTD Senior Associate & Project Manager
Charles Boney, LS3P Associates, LTD Principal
Det. Joe Jewell, NHC Sheriff's Department
Det. Dean Olinger, NHC Sheriffs Department
Allen Robbins, Assistant LBD Store 107 Manager
Absent with notice were:
Wanda Copley, Legal Counsel
Avril Pinder, Ex- Officio Member
11I.Approval of minutes from last meeting
Mr. Dickerson presented the minutes from the last Regular Meeting (both the open and closed
session minutes) of December 16, 2014. Mr. Wolfe made the motion to approve the minutes as
written, with the omission of one word, "substitute ". Mr. Martenis 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 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 refrainfrom
any undueparticipation in theparticular matter involved. "
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Let it be recorded that no conflicts were identified by any Board member regarding this Board meeting.
V. Approval of proposed agenda
Mr. Martenis made the motion to accept the proposed meeting agenda as written with one (1)
addition, inclusion in the closed session portion of today's meeting discussion of real estate (per NC
GS 143- 318.11(a)(5). Mr. Everett seconded the motion, and all approved.
VI.EmIloyee Recognition
Mr. Sykes introduced Mr. Robbins to the Board, and thanked him for his interest in the ABC Board
and its activities —as Mr. Robbins made a request to attend the meeting. Mr. Sykes stated that Mr.
Robbins has been with the Board since May of 2005 and consistently receives "Exceeds
Expectations" performance review ratings from his supervisors.
VII. Administrative_Renorts
A. ABC Law Enforcement Officer's Unit Monthly (ALE) Report for December was presented by
Det. Jewell. Officers performed the following activities for the month of December, 2014:
*632 Store Visits
*338 Bank Deposits
* 16 Change Deposits
* 17 Video Investigations
* 8 Charges
*7Arrests
*4 Searches (Consent or Probable Cause)
*Cited 7 "Underage Possession" ABC Law Violations
*Cited 9 "Unauthorized Possession" ABC Law Violations
*Cited 2 "Other Alcohol" ABC Law Violations
*Cited 3 "DWI & Implied" Other Offenses
*Cited 26'Traffic" Other Offenses
*Cited 11 "Criminal" Other Offenses
*Cited 9 "Weapons /Assaults" Other Offenses
*Noted 1 "Seller /Server" Alcohol Education
*Assisted 27 ABC Law Agencies
*Assisted 5 Controlled Substance Agencies
*Assisted 7 Other Agencies
*Performed 46 Business Inspections
*Performed 3 4 Business Compliance Checks
*Completed 40 Training Hours
Det. Jewell introduced Det. Olinger to the Board. Det. Olinger is replacing Det. Jay Davis as a Board
ABC Officer. Det. Jewell apprised the Board that its ABC officers, beginning in February, will work
from noon until midnight on Thursdays, Fridays and Saturdays. He stated that these later hours on
these evenings are when underage drinking and sales to minors [wine, beer, and liquor] historically
happen, and that this issue is the department's priority.
B. Mr. Sykes presented the Board with Financial Statements for December, 2014. Mr. Sykes
reported for December, the Actual -to- Budget comparison showed Gross Sales greater than
projected by $156k (4.16 %), Operating Expenses less than budget by $68k (15.53 %), and Income
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from Operations better than budget by $105k (21.66 %). Year to date, Gross Profits were more than
projected by about $375k (7.77 1/o), and "Change in Net Position before Profit Distributions" had a
positive variance of $684k (63.73 %). Mr. Sykes noted that in the Actual -to- Actual comparison,
year to date sales are up over $1.2 million (6.5 %), and Income from Operations was up $113k
(3.89 %) from last fiscal year to date.
C. Mr. Sykes presented the Board with his Financial Pro sections thru Year -End as of 1213112014 for
discussion purposes. Actual financial figures are shown for the Board's FY2014 -15 first half, and
budgeted financial figures are shown for the second half. Based on the current year -end projections it
appears that the projected "Change in Net Position" will be greater than originally budgeted, by over
$850k. Mr. Kopp requested that the Board be copied on the actual quarterly Profit Distributions in
the future, for its decision making purposes.
D. Mr. Sykes presented the Board with one update:
The ABC Commission's next Kickoff "Talk It Out NC" Presentation will be held at the Minnie
Evans Arts Center, Murray Middle School at 10:00am Tuesday, February 3, 2015. "Talk It Out
NC" is a statewide multi -media campaign designed to create awareness among parents and
students about the dangers of underage drinking. Murray Middle School 8"' grade students and
parents will be at the presentation. Mr. Jewell said that at least two of the Board's ABC officers
plan to attend this event, as will some Board members and staff.
E. Mr. Sykes provided the Board with his annual Recurring Board Meeting Activities —a list of
Proposed Activities for calendar year 2015. The Board normally meets at 8:30am in the ABC
main office on the third Tuesday of each month. Mr. Wolfe made the motion to change the
May, 2015 Board meeting to the second Tuesday, May 12, 2015. Mr. Kopp seconded the
motion and all approved.
F. Mr. Sykes presented the Board with the North Carolina Alcoholic Beverage Control 2014
Annual Report. The report is informative and includes data provided by the N.C. Beer & Wine
Wholesalers, (based on monthly reports from the N.C. Department of Revenue) in addition to
detailed reporting on each of the 166 Active Local ABC Boards.
VIII. New Business
A. Mr. Sykes apprised the Board that he and Mr. Cain had recently met with LS3P Associates, LTD to
discuss the 17a' Street /Castle Street Facility renovation, and that Mr. TJ Land was on conference
call for the entire meeting. Mr. Boney presented the Board with the "Whole Cost Preliminary
Estimate " — originally dated January 14, 2015 and revised January 19, 2015 - -- keeping the
Construction Costs and Soft Costs under $2 million. Baker Roofing's report and roof plan with
seven (7) core cut findings revealed that most of the existing insulation could be saved —
representing a savings of over $150k from the first quote. Following Board discussion, Mr.
Martenis made the motion to add two of the alternatives (including fees) Mr. Boney proposed:
1) Additional brick on fagade quoted at $116,500 and
2) Larger LBD canopy quoted at $15,000
Mr. Everett seconded the motion, and all approved. Mr. Boney suggested that it would take two
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months to get the project out to public bid.
B. Mr. Martenis proposed the need for a Board retreat to allow for several hours to discuss Board
business uninterrupted. Mr. Kopp suggested planning the retreat prior to the FY2015 -I6 annual budget
being adopted. The Board agreed to have the retreat beginning at 10:00am Thursday, April 2, 2015 at
the ILM airport Executive Conference Room. The meeting room has been reserved for this purpose
and date, and a light lunch will be served
C. Mr. Sykes presented his annual New Hanover County ABC Board Employee Diversity Report for
2014. The report provides July, 2014 (most recent) raw numbers and breakdown by percentage the
races and genders of New Hanover County's entire population. The report also provides the Board's
race and gender breakdown, as well as its 41112010 - 11112015 related progress toward a more diversified
workplace. Mr. Wolfe made the motion to accept the Employee Diversity Report for Calendar Year
2014 as prepared. Mr. Martenis seconded the motion, and all approved.
D. Mr. Sykes presented his annual 2014 Employee Turnover Report. For the Calendar Year 2014 the
Employee Turn -over Percentage was 5.21% compared to Calendar Year 2013's 11.07 %. Mr. Sykes
noted that the percentage is a metric which indicates how the human resources side of the system is
functioning from year -to -year. Excess turnover can be problematic if it has an adverse impact on the
performance of the organization. The Turnover Ratio is calculated as "# Employees Departing" divided
by "Average # of Full Time Equivalents" and Mr. Sykes showed the ratio for each of the last five
years. The authorized full -time headcount was increased from 43 to 45 during the calendar year. Mr.
Martenis made the motion to accept,the History of Employee Turnover Report as of I1112015. Mr.
Kopp seconded the motion, and all approved.
E. Mr. Sykes apprised the Board that the initial one year Landscape Maintenance Contract with
"Lawn Sharks" is due to expire February 28, 2015. The contractor has satisfactorily performed over
the last year, and verbally offered to perform the same services for the next two years for the current
annual amount, $17,244. Mr. Wolfe made the motion to authorize the Chair/Vice Chair to execute the
necessary documents to enter into a lawn maintenance contract effective March 1, 2015 for two years
for an annual amount of $17, 244. Mr. Wolfe noted that this contract omits landscaping services at the
new ABC Complex -- currently maintained within its first year by the install landscaper. Mr. Martenis
seconded the motion, and all approved.
F. Mr. Sykes asked the Board to consider the approval of the revised Property and Equipment Policy.
The revisions were to increase the capitalization threshold from $1,000 to $2,000, and to change the
lives of several fixed asset categories to be more in line with comparable local government units and
asset usage. Subject to approval of the NC ABC Commission, Mr. Martenis made the motion to
approve the revised Property and Equipment Policy as written. Mr. Wolfe seconded the motion, and all
approved. (Approval from the commission has since been attained.)
G. Mr. Sykes recommended to the Board the purchase of a Fixed Asset Accounting License. The
licensed software is an add -on product to the Board's current accounting system, Open Systems'
TRAVERSE, and integrates directly with its general ledger — assuring accurate, time - saving entries for
the Board's depreciable assets. As a result, the independent auditors will not have to duplicate staff
accounting efforts to complete the annual audit, Mr. Wolfe made the motion to authorize the
ChairNice Chair to purchase a Fixed Asset Accounting license as discussed not to exceed $3,000,
including applicable State sales taxes. Mr. Martenis seconded the motion, and all approved.
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III. Closed Session
Mr. Martenis trade the motion to go into Closed Session. Mr. Kopp seconded the motion and all approved,
The purpose of the Closed Session meeting was to both discuss personnel issue(s) in accordance with NC GS
143-318, 1 1(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. Wolfe seconded the motion, and all approved.
The Chair asked that Mr. Sykes review the recent Employee Survey to formulate his executive plan and to
report back on its progress at the next meeting. Mr. Wolfe noted that the Board is not interested in
"micromanaging" the staff or the CEOs decisions. No action was made on any land acquisition.
IV. Ad'ournment
Mr. Martenis made the motion to adjourn the meeting; Mr. Wolfe seconded, and all approved.
Minutes submitted by: &R'� or g-1.,
Carol E. Martin, Secretary
AMinutes approved by:, � .4
Cedric Dickerson, Chairman
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