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May 12 2015 Board Meeting MinutesNew Hanover County ABC Board Meeting Minutes May 12, 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 May 12, 2015 at the General Office, 6009 Market Street, Wilmington, NC. II. Roll cal Carol Martin, Board Secretary, conducted a roll call. The following Members of the Board were present: Cedric Dickerson, Chairman Thomas Wolfe, Member Augustus C. Everett, Jr., Member William A. Kopp, Jr., Member Others in attendance were Dan Sykes, Chief Executive Officer Gary Cain, Retail and LBD Operations Manager Charles Hill, Interim 2nd Retail and LBD Operations Manager Carol Martin, Board Secretary Wanda Copley, Legal Counsel Benjamin R. David, District Attorney, 5th Prosecutorial District, New Hanover County & Pender County Steven Cral1, victim/witness Legal Assistant & Program Coordinator For Underage Drinking Deferred Prosecution and Prevention Program Maj. Donald Taft, NHC Sheriff's Department Det. Joe Jewell, NHC Sheriff's Department Mark Francolini, New Hanover County Human Resources Director Tracy Dawson, New Hanover County Human Resources Analyst Yanira "Jenny" Colette, Assistant Retail Store Manager Tonia Moore, Assistant LBD Store Manager Laura "Beth" Stukes, Assistant Retail Store Manager Anthony Snyder, Warehouse & Delivery Assistant Allen Robbins, Assistant LBD Manager Kathy Clark, Finance Specialist Joe Lauritzen, Retail Store Manager Tom Dunnigan, Account Executive, Windstream Corporation Absent with notice: Robert W. Martenis, Vice Chairman (was non- voting, attending meeting via telephone) Avril Pinder, Ex- Officio Member 11I.AllUrovall of minutes from last meeting Mr. Dickerson presented the minutes from the last Regular Meeting of April 21, 2015. Mr. Wolfe made the motion to approve the minutes as written. Mr. Kopp seconded the motion, and all approved. 1IPage IV. Conflict of Interest Reminde r 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. " Let it be recorded that no conflicts were identified by any Board member regarding this Board meeting. V. AUUrovaj of Uroposed agenda Mr. Kopp made the motion to accept the proposed meeting agenda as written, with the addition of items 4.j., Recommendation for Board Chair and 4.k., Proposed Appraisal of Board Facilities, and the need to enter into closed session at the end of the regular meeting. Mr. Everett seconded the motion, and all approved. VI.Emplovee Recognition Mr. Sykes introduced several employees to the Board. Recognized with a framed certificate and lapel pin for five years of Board service were: Ms. Colette, Ms. Moore, Ms. Stukes and Mr. Snyder. And recognized for ten years of Board service, with a framed certificate and lapel pin, were: Mr. Robbins and Ms. Clark. The Board thanked the group for their service and photos were made of each, next to Mr. Dickerson and Mr. Sykes. VII. Administrative Reports A. ABC Law Enforcement O f f i c e r s' Unit Monthly (ALE) Report for April was presented by Det. Jewell. Officers performed the following activities for the month of April, 2015: *667 Store Visits *295 Bank Deposits * 14 Change Deposits * 13 Video Investigations * 109 Charges *64 Arrests * 19 Searches (Consent or Probable Cause) *Cited 1 "Sell to Underage" ABC Law Violation *Cited 4 "Sell to Intoxicated" ABC Law Violations *Cited 44 "Underage Possession" ABC Law Violations *Cited 10 "Unauthorized Possession" ABC Law Violations *Cited 23 "Other Alcohol" ABC Law Violations *Cited 1 "Man /Sell /Deliver /Trafficking" Controlled- Substance Violation *Cited 4 "Possession" Controlled - Substance Violations *Cited 4 "Paraphernalia" Controlled - Substance Violations *Cited 3 "DWI & Implied" Other Offenses *Cited 24'Traffic" Other Offenses *Cited 22 "Criminal" Other Offenses *Assisted 34 ABC Law Agencies *Assisted 12 Controlled Substance Agencies 21 Page *Assisted 7 "Other" Agencies *Performed 44 Business Inspections *Reported 2 Violations Submitted *Performed 83 Business Compliance Checks *Completed 12 Training Hours Asked, Det. Jewell explained that a charge is a criminal law offense, and an arrest can involve several separate charges. He added that a full 30% of the Law Enforcement Monthly Reporting Numbers (reported to the North Carolina ABC Commission monthly) for April were attributed to New Hanover County ABC's Law Enforcement. Mr. Wolfe apprised the Board that the twenty Governor's Substance Abuse and Underage Drinking Prevention and Treatment Task Force posters the Board paid to have enlarged and printed have been delivered to the schools. B. Mr. Sykes presented the Board with Financial Statements for April, 2015. Mr. Sykes reported for April, the Actual -to- Budget comparison showed Gross Sales better than projected by $109k (3.43 %), Operating Expenses less than budget by $26k (6.64 %), and Income from Operations better than budget by $88k (21.57 %). Year to date, Gross Profits were more than projected by about $600k (7.83 %), and "Change in Net Position before Profit Distributions" had a positive variance of $938k (55.86 %). C. Mr. Sykes presented the Board with his Financial Proiections thry Year -End (as of 5107120151 for discussion purposes. Actual financial figures are shown for the fiscal year's first ten months, and budgeted financial figures are shown for the last two months. Based on the current year end projections it appears that Gross Sales will exceed the budget by over $862k, and that Operating Income should be better than budget by over $1.1 million. D. Mr. Sykes presented the Board with updates regarding the 171h Street/Castle Street Renovation Project: • The Pre -Bid Walk Thru is scheduled for 3:OOpm Wednesday, May 13th • The deadline for delivery of sealed bids is 3:OOpm Wednesday, May 27t }' in the ABC Board multi - purpose room, and LS3P will be managing the formal bid opening and acceptance procedures. The bids amounts will be announced to everyone in attendance. • The Bid Review is scheduled for Thursday, May 281h at the offices of LS3P Associates, LTD. Mr. Martenis is expected for the bid review. Mr. Sykes suggested that the Board may want to consider holding a Special Meeting, since the next regular Board meeting is not until Tuesday, June 16, 2015. The purpose of the Special Meeting would be to accept a bid, to appropriate the necessary funds, and to authorize the Chair /Vice Chair to execute the construction contract. After general discussion, the Board chose to hold this Special Meeting at 8:30am, Tuesday, June 2, 2015 in the ABC Board multi - purpose room. VIII. Public Hearing A public hearing for the FY2015 -16 proposed budget, as required by NC General Statute 1813-702, paragraph (f) was advertised in the legal section of the Star News on May 9, 2014. The ad stated the time, date and location of the meeting (same as this Board meeting) and that it was to give all interested citizens the opportunity to make comments on the budget. Mr. Dickerson opened the Public Hearing. Let it be recorded that no one from the public attended the meeting. Mr. Kopp made the motion to adjourn the Public Hearing portion of the meeting. Mr. Everett seconded the motion and all approved. 31 Page IX. New Business Regular Agenda Items of Interest Item 4.b. in the written agenda titled Donation of Board Proberl` was presented next —not in the same sequence as the printed agenda: A. Mr, Sykes apprised the Board that the subject of donating ABC Board real property to a non -profit organization comes up from time -to -time, particularly regarding the residential parcels the Board owns at 17th Street /Church Street and 18'x' Street /Church Street. Ms. Copley (New Hanover County Attorney) researched the issue and issued a New Hanover County Legal Department Memorandum. The memorandum carbon copied the New Hanover County ABC Executive Director and the Board's Ex -Officio Member. Mr. Wolfe made the motion to include the document statement in these official minutes and a copy of Ms. Copley's memo be stored in the permanent Board minutes' location. Mr. Kopp seconded the motion, and all approved. Let it be recorded that Ms. Copley's New Hanover County Legal Department Memorandum dated April 16, 2015 regarding ABC Property Disposition says: The question has been posed whether the ABC Board may donate real property to a non-profit. The answer is a special act would have to be obtained by the legislature. Under G.S. I8B- 701(12), the Board is authorized to dispose of property utilizing the process allowed for cities under G.S. 160A, Article 12. In addition to other arrangements for sale of property such as auction, upset bids, etc., G.S 160A -279 permits titres to sell (with or without full compensation) property to nonprofits carrying out a public purpose. However, 160 ,4- 279(b) states, "Notwithstanding any other provision of law, this section applies only to cities... and not any other entity which this Article otherwise applies to. " Therefore, any conveyance for less than market value for other than ABC purposes could be challenged for of lack of express authority. Summary: A local act must be obtained expressly permitting the New Hanover County ABC Board to convey property to a non-profit carrying out a public purpose. B. Mr. Sykes informed the Board that the Board's "Other Post - Employment Benefits" (OPEB) actuarial computations are required every three years to determine the net - present value of future benefits payable. The Board's OPEB covers medical insurance for certain retirees (as detailed in the Board's Personnel Policies & Procedures, November 12, 2012 Article VIII, paragraph 5). Ms. Martin obtained three quotes for this actuarial service ranging from $3,000.00 to $4,200.00. Ms. Martin recommended retaining Cavanaugh McDonald to perform the service. Their quote computed to $3,540.00. Mr. Wolfe made the motion to authorize the ChairNice Chair to execute appropriate documents for Actuarial Studies for Other Post - Employment Benefits for an amount not to exceed $3,600.00. Mr. Everett seconded the motion, and all approved. C. Mr. Sykes apprised the Board that its Public Officials Management & Employment Practices Liability policy is set to renew 7114115. The premium quote increased 4.2% since last renewal, and the coverage is provided by Darwin National Assurance Group. Mr. Kopp made the motion to authorize the Chair/Vice Chair authority to renew Public Officials Management & Employment Practices Liability with P &G Brokers (A Division of Professional Governmental Underwriters, Inc.) for the term 711412015 - 711312016 in the amount of $7,307.00. Mr. Wolfe seconded the 41 Page motion, and all approved. D. Mr. Sykes informed the Board that the Grounds Maintenance Services for the new Complex at 6009 Market Street were not included in the builder's landscaping warranty as was believed. Rather the trees, shrubs and plant maintenance are covered under the warranty. The Board recently awarded its Grounds Maintenance Services for all other Board locations for two years to Lawn Sharks, Mr. Cain prepared a Request for Proposal (RFP) for the ABC Headquarters and the surrounding lots with the assistance of Ms. Lena Butler, County Purchasing Officer Manager. Four bids were received and ranged in monthly price from $560.00 to $950.00. Mr. Cain recommended that Lawn Sharks be awarded the contract at $585.00 per month, given their proven quality service. Mr. Kopp made the motion to authorize the Chair /Vice Chair to execute a Grounds Maintenance Service contract for with Lawn Sharks for an amount not to exceed $13,000 for the 21 -month period June 1, 2015 through January 31, 2017. (Note: this is the time the contract for the other Board locations' matures) Mr. Wolfe seconded the motion, and all approved. E. Mr. Sykes apprised the Board that a routine Administrative Budget Amendment ( #1) for FY2014- 15 is necessary to reclassify operating accounts from one to another to alleviate negative balances (expense overages) at year end. The total amount to re -align three expense line items against the contingency (miscellaneous) account is $13,500.00. Mr. Kopp made the motion to approved budget amendment request number one for FY2014 -15 as requested to shift funds from one Operating Expense account to another. Mr. Wolfe seconded the motion, and all approved. F. Mr. Sykes briefed the Board that updated communications services and related equipment are needed for eight of the Board locations. Ms. Clark and Mr. Cain bid the project out and received quotes from AT &T, EarthLink Business and Windstream Corporation. The two introduced Mr. Dunnigan to the Board. As recommended by Mr. Cain and Ms. Clark, the Board would realize an annual savings of over $10k by accepting Windstream Corporation's proposal. Mr. Wolfe made the motion to authorize the Chair /Vice Chair to execute a three -year contract /lease with Windstream to provide communications services to eight New Hanover County ABC retail locations, and back up internet capacity to the ABC Headquarters. Mr. Kopp seconded the motion, and all approved. Regular Agenda Items of Interest Item 4.a. in the written agenda titled Local Law Enforcement Distribution Request was presented next —not in the same sequence as the printed agenda: G. D.A. David presented the Board with an update to his request from the April 21, 2015 Board Meeting for financial backing to retain pertinent staff. This is an effort to maintain momentum in his unique Underage Drinking Deferred Prosecution and Prevention Program. The dollar amount needed for the one -time, lump -sum funding was not known at the last Board Meeting. Following D.A. David's delivery, Mr. Wolfe made the motion to approve a one -time, lump -sum personnel funding to the DA's office for the FY2015 -16 budget year in an amount not to exceed $31,668.00. Mr. Kopp seconded the motion, and all approved. Ms. Copley stated that her office would review the logistics and draw up the necessary paperwork to execute this Law Enforcement Distribution. Mr. Wolfe told the Board that D.A. David will be a featured speaker at the NC Association of ABC Boards 2015 Summer Conference in July. H. Mr. Sykes presented the Board with his Proposed Budget Message and related Budget Document. He noted that both were also being released to the public and the media today (May 12, 2015), and 51 Page that copies were being forwarded to the New Hanover County Commissioners and the NC ABC Commission as required. Mr. Kopp made the motion to accept the Proposed Budget Message and Proposed Budget Document as presented. Mr. Everett seconded the motion, and all approved. It is important to note that this vote should not be confused with a Board approval of the Budget Ordinance which, by statute NC G.S. 17B -702, cannot be for at least ten days after the budget presentation, and is expected to occur at the June 16, 2015 regular Board meeting. 1. Mr. Sykes apprised the Board that security and surveillance equipment is several years old and is beginning to fail. The recorder at the Castle Hayne store failed since the April 21, 2015 Board Meeting and was replaced by the Board's security and surveillance provider, Hooks Alarm for an approximate amount of $1,700.00. Mr. Sykes stated that the recorder at the Carolina Beach store has also failed, and has been deemed irreparable. Mr. Wolfe made the motion to approve the purchase of the Castle Hayne store video recorder in the approximate amount of $1,700.00 after - the -fact; and to authorize the Chair/Vice Chair to approve purchase of a video recorder for the Carolina Beach store in an amount not to exceed $1,700.00. Mr. Everett seconded the motion, and all approved. Regular Agenda Items of Interest Item 4.k. in the revised approved agenda titled Proposed Appraisal of Board Facilities was presented next —not in the same sequence as the approved agenda: J. Mr. Sykes advised the Board that their insurance agent (HPB's James Mahoney) recommended that the "Replacement Cost Valuation" of the Board's facilities be reviewed prior to the November 1, 2015 renewal because it has been several years since a complete computation has been performed. Ms. Jennifer Stancil (the Board's contract Risk Manager) obtained a quote on the Board's behalf from HCA Asset Management to appraise the facilities and the contents. In his opinion, Mr. Sykes stated that the quotes appear reasonable for the service and the service would provide a professional, third -party assessment of the "Replacement Cost" of the facilities. Mr. Wolfe made the motion to authorize the Chair/Vice Chair to execute the necessary documents to have the Board's facilities and related contents appraised by FICA Asset Management, as proposed, in an amount not to exceed $5,000.00. Mr. Kopp seconded the motion, and all approved. K. As requested by Mr. Dickerson, item 4.j. in the revised approved agenda titled, Recommendation for Board Chair was saved as the last item in Open Session. Mr. Dickerson acknowledged that he agreed to remain on the Board for a two month extension past June 30, 2015. (Note: the New Hanover County Board of Commissioners has granted this extension since the last Board meeting) Following Board discussion, Chairman Dickerson recommended that Vice Chairman Martenis fill the Chairman position effective July 1, 2015. Via long - distance telephone, Mr. Martenis accepted the nomination. Mr. Dickerson nominated Mr. Kopp as Vice Chairman effective July 1, 2015. Mr. Kopp accepted the nomination. Mr. Everett made the motion, contingent on the approval of the New Hanover County Commissioners (the appointing authority) to approve these accepted nominations. Mr. Wolfe seconded the motion, and all approved. Mr. Dickerson agreed to write Ms. Copley a letter to this effect, as she requested. X. Closed Session Mr. Wolfe made the motion to go into Closed Session. Mr. Kopp seconded the motion and all approved, The purpose of the Closed Session meeting was three -fold; to discuss a personnel issue in accordance with NC GS 143 -318.1 l(a)(6), to discuss potential real estate acquisition in accordance with NC GS 61 Page 1.43.318.1 1(a)(S), and to consult with an attorney employed or retained by the public body in accordance with NC GS 143.318,1.1(a)(3). Mr. Kopp made the motion to return to Open Session; Mr. Wolfe seconded the motion, and all approved. The Chairman stated that no Board action was taken. XIA l`ournment Mr. Kopp made the motion to adjourn the meeting; Mr. Wolfe seconded the motion, and all approved. f Minutes submitted by: n, Carol E. Mat -tin, Secretary Minutes approved by: � Cedric Dickerson, Chairman 71 Page