August 18 2015 Regular Meeting MinutesNew Hanover CountyABC Board
Meeting Minutes
August 18, 2015
I. Call tg or er
Chairman Robert W. Martenis called to order the regular meeting of the New Hanover County
Alcoholic Beverage Control Board at 8:30am on August 18, 2015 at the New Hanover County
Government Center, 230 Government Center Drive, Room 500, Wilmington, NC.
II. PledLye of Allegiance
III.Chairman confirms quorum
The following Members of the Board were present:
Robert W, Martenis, Chairman
William A. Kopp, Jr., Vice Chairman
Thomas Wolfe, Member
Augustus C. Everett, Jr., Member
Vivian Z. Partin, Member
Others in attendance were:
Gary Cain, Retail and LBD Operations Manager
Charles Hill, Interim 2" Retail and LBD Operations Manager
Carol Martin, finance Manager
Kathy Clark, Board Secretary
Wanda Copley, Legal Counsel
Avril Pinder, Ex- Officio Member
James Southerland, Retail Store Manager
Sergeant Joe Jewell, NHC Sheriff's Department
Major Donald Taft, NHC Sheriff's Department
Dan Sykes, Retired Chief Executive Officer
IV.Annroval of minutes from last meeting
Mr. Martenis presented the minutes from the Regular Meeting of July 21, 2015, Mr. Wolfe made the
motion to approve the minutes as written. Mr. Everett seconded the motion, and all approved. Mr.
Kopp made the motion to approve the minutes from the Closed Meeting of July 21, 2015. Mr. Wolfe
seconded the motion, and all approved.
V. Approval of proposed agenda
Mr. Wolfe made the motion to accept the proposed meeting agenda as written, Mr. Everett
seconded the motion, and all approved.
VI. Conflict of InterestReDlinde
Mr. Martenis verbally confirmed that the Board members had read the following ethics reminder:
"In accordance with General Statute 1813 -201, it is the duty of every Board member to avoid
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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.
VII. Emoloyee Recognition & Service Awards
Mr. Martenis introduced Mr. Southerland to the Board. Mr. Southerland has served the Board for
21 years as of August 1, 2015. Mr. Southerland has recently been promoted to the Retail Store
Manager at Store 9102, on Carolina Beach Road.
VIII. Administrative Reports
A. ABC Law Enforcement O f f i c e r s' Unit Monthly (ALE) Report for July was presented by Det.
Jewell. Officers performed the following activities for the month of July, 2015:
*687 Store Visits
*299 Bank Deposits
* 16 Change Deposits
* 13 Video Investigations
*61 Charges
*38 Arrests
*6 Searches (Consent or Probable Cause)
*Cited 43 "Underage Possession" ABC Law Violations
*Cited 21 "Unauthorized Possession" ABC Law Violations
*Cited 9 "Other Alcohol" ABC Law Violations
*Cited 4 "Possession" Controlled- Substance Violations
*Cited 2 "Paraphernalia" Controlled- Substance Violations
*Cited 7 "Traffic" Other Offenses
*Cited 12 "Criminal" Other Offenses
*Cited 2 Weapons /Assaults
*Assisted 45 ABC Law Agencies
*Assisted 11 Controlled Substance Agencies
*Assisted 12 "Other" Agencies
*Performed 5 6 Inspections
*Reported 1 Violation
*Performed 75 Compliance Checks
*Completed 5 Training Hours
B. Ms. Martin presented the Board with Financial Statements for July, 2015. Ms. Martin reported
for July, the Actual -to- Actual comparison showed Gross Sales better than prior July by $307k
(8.48 %), Operating Expenses higher than prior July by $82k (23.97 %), and Income from Operations
less than prior July by $25k (4.35 %). "Change in Net Position before Profit Distributions" was less
than prior July by 40k (11.36 %). Ms. Martin noted that in July, 2015 the Board sold 49743 gallons
of spirituous liquor and that the top selling product in the retail stores for the month was Smirnoff
Vodka 50ml 1 Opk with 7070 l Opks sold.
C. Ms. Martin presented the Board with the July 2015 & Rolling 12 -Month Comparison. Ms. Martin
reported that Total sales were up by 307k (8.48 %). Rolling 12 -Month Comparison Total sales were
up by 1.2 million (3.29 %). Mr. Martenis noted that the LBD facility 4107 had sales over $1 Million
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for the month and that Retail Store #108 broke $5 million in total sales in its' rolling 12 -month
analysis.
D. Ms. Martin presented the Board with the Statewide Sales Report for July 2015. Ms. Martin reported
that the Statewide Averages for overall sales were up 10.8 %. Overall sales for the Board for July
2015 were up by 8.5 %, and Surrounding ABC Boards sales were up by 9.46 %. Ms. Partin noted that
we should also compare this to economic growth and growth in tourism.
E. Mr. Cain presented the Board with updates:
17t "/Castle Street Proiect — Mr. Hill reported that the second roof survey was
completed and shows that total roof replacement will be necessary. LS3P Associates,
Ltd.is preparing the final numbers on the cost of this replacement. Mr. Hill reported
that the initial cost estimate for the roof system was $186k. The addendum for
renovations /unforeseen allowance of $20k is now down to $6,487. Mr. Wolfe made a
motion to authorize the Building Committee to approve a total roof replacement up to
$200k, seconded by Ms. Partin, and all approved.
6009 Market Street Update — Mr. Cain reported he would be meeting with Mr.
Thompson with Cape Fear Commercial Realty to submit covenants and policies that
would govern the ABC Complex surplus land sale and explore the Boards position on
land division. General discussion was made regarding limiting the use of the property
by potential purchasers. The Board asked Mr. Cain to gather more information on what
should be restricted from being built on the property and report back to the Real Estate
Committee. The information is to be brought back to the Board at the September 2015
meeting.
Trainine Program — Mr. Cain reported that he had received information on very
affordable management training provided by UNWC. The Swain Center offers a wide
variety of classes that addresses our plan to give better training to all of our employees.
Mr. Cain shared that Mr. Southerland and he plan to attend a management class
together in the near future.
• ABC Board Taxes and Distributions Impact on Local Beneficiaries Tax Bases'
Representative Penny — Ms. Martin reported that the ABC Contributions equivalent to
one penny for New Hanover County is 0.6, City of Wilmington 0.9, Town of
Wrightsville Beach 1.6, Carolina Beach l .6, and Town of Kure Beach 0.1.
IX. Reiziflar A n i m f Interest (not in order ofAgenda)
A. Ms. Martin presented to the Board a quote from the Boards current independent auditing firm,
Koonce, Wooten & Haywood, LLP for the next three fiscal years' annual audit. The quotes
Koonce, Wooten & Haywood, LLP proposed include an increase of $500.00 per year, for the
next three years. Mr. Kopp made a motion to have the Finance Committee prepare an RFP for
Certified Public Accountants, Ms. Partin seconded the motion, and all approved.
B. Mr. Hill reported to the Board that Bordeaux Construction Company Inc. has asked for a two
week no- cost -to -Board time extension. This extension is due to the permit issues they had
encountered. Mr. T.J. Land, Architect and Board Project Construction Manager, advised the
Real Estate Committee that this was normal and since it was no cost to the Board he
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recommended the Board grant the extension. Mr. Kopp made the motion as Real Estate
Committee member to grant Bordeaux Construction a no- cost -to -Board time extension on
their contract. With no need for a second following a motion made from the Real Estate
Committee, all approved.
C. Ms. Martin presented to the Board quotes for Merchant Services Provider. Receiving three
quotes, she recommended that the Board accept the quote from Electronic Payments (EPI).
EPI is the vendor endorsed by the North Carolina Association of ABC Boards and serves 92
of the state's ABC Boards. They will provide the Board with a '/z cent savings per transaction
over First Data Merchant Services. Mr. Wolfe made the motion to switch to Electronic
Payments (EPI) for merchant services, Ms. Partin seconded, and all approved.
D. Ms. Clark presented to the Board a quote from Carolina Data Systems, the Board's IT
Provider, for 7 PC's and 6 color printers for the stores for an amount not to exceed $31,000
inclusive of sales tax. Following discussion the Board agreed to have the Finance Committee
receive additional quotes. These will be brought back to the Board next month.
E. Mr. Cain presented the Board with a draft of the Designation Policy. Discussion was made
and the Board agreed to table it so that the new CEO could review before initiating a move on
this policy.
F. The Board agreed that the next regular meeting would be held on September 22, 2015 at
8:30am at the General Office, 6009 Market Street, Wilmington, NC.
X. Closed Session
Mr. Kopp made the motion to go into Closed Session. Ms. Partin seconded the motion and all approved.
The purpose of the Closed Session meeting was to discuss a personnel issue in accordance with NC GS
143- 318.11(a)(6).
XI. Return to Open Session:
Mr. Kopp made the motion to return to Open Session; Ms. Partin seconded the motion, and all present
approved,
Mr. Kopp made motion that Mr. Martenis be authorized to make an offer to the CEO candidate, Ms.
Partin seconded, and all approved.
XII. Adjournment
Mr. Wolfe made the motion to adjourn the meeting; Mr. Everett seconded the motion, and all approved.
Minutes submitted b
Minutes approved b;
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