September 22 2015 Regular MinutesNew Hanover CountyABC Board
Meeting Minutes
September 22, 2015
I. Call to order
Chairman R o b e r t W. M a r t e n i s called to order the regular meeting of the New Hanover
County Alcoholic Beverage Control Board at 8:30am on September 22, 2015 at the General
Office, 6009 Market Street, Wilmington, NC.
II. Pledge of Alleffiance
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
Others in attendance were:
Marnina Queen, Chief Executive Officer
Gary Cain, Retail and LBD Operations Manager
Charles Hill, Acting Retail and LBD Operations Manager
Carol Martin, Finance Manager
Kathy Clark, Board Secretary
Wanda Copley, Legal Counsel
Avril Pinder, Ex- Officio Member
Sergeant Joe Jewell, NHC Sheriffs Department
Absent with notice but remotely dialed in via speaker phone):
Vivian Z. Partin, Member
IV.AV12roval of minutes from last meeting
Mr. Martenis presented the minutes from the Regular and Closed session Meeting of August
18, 2015. Mr. Kopp made the motion to approve the regular 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 August 18, 2015. Mr. Wolfe seconded the motion, and all approved.
V. Annroval of imposed Benda
Mr. Kopp made the motion to add two items to the proposed meeting agenda, 3c.
Contract Cost Adjustment and 3d. Surveillance System; Mr. Wolfe seconded the motion, and
all approved.
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VI. Conflict of Interest Reminder
Mr. Martenis verbally confirmed that the Board members had read the following ethics
reminder:
Ms. Partin recused herself from any Board votes today.
"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 theparticular matter involved. "
Let it be recorded that no conflicts were identified by any Board member regarding this Board
meeting.
VII. EmLiloyee Recognition & Service Awards
Mr. Martenis recognized Ms. Queen, the Board's new Chief Executive Officer.
VIII. Administrative Reports
A. ABC Law Enforcement O f f i c e r s' Unit Monthly (ALE) Report for August was presented
by Det. Jewell. Officers performed the following activities for the month of August, 2015:
*557 Store Visits
*309 Bank Deposits
* 10 Change Deposits
* 15 Video Investigations
*91 Charges
*45 Arrests
*10 Searches
*Cited 49 "Underage Possession" ABC Law Violations
*Cited 21 "Unauthorized Possession" ABC Law Violations
*Cited 5 "Other Alcohol" ABC Law Violations
*Cited 1 "Possession" Controlled- Substance Violation
*Cited 1 "Paraphernalia" Controlled - Substance Violation
*Cited 1 "DWI & Implied" Other Offense
*Cited 18'Traffic" Other Offenses
*Cited 20 "Criminal" Other Offenses
*Assisted 47 ABC Law Agencies
*Assisted 16 Controlled Substance Agencies
*Assisted 6 "Other" Agencies
*Performed 42 Inspections
*Submitted 1 Violation
*Performed 69 Compliance Checks
*Completed 7 Hours of Training
B. Ms. Martin presented the Board with Financial Statements for August, 2015. Ms. Martin
reported for August, the Actual -to- Actual comparison showed Gross Sales less than prior
August by $64k (1.83 %), Operating Expenses less than prior August by $19k (5.3 %), and
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Income from Operations less than prior August by $4k (.66 %). "Change in Net Position before
Profit Distributions" was higher than prior August by 3k (.81 %).
C. Ms. Martin presented the Board with the August 2015 & Rolling 12 -Month Comparison. The
report showed Total sales were down by 64k (1.83 %). Rolling 12 -Month Comparison Total
sales were up by 1 million (2.87 %). It was noted that the Labor Day sales for 2014 fell in the
month of August the prior year. Therefore, the 2015 Labor Day sales will show in the
September sales.
D. Ms. Martin presented the Board with the Statewide Sales Report for August 2015. The report
showed Statewide Averages for overall sales were up .48 %. Overall sales for the Board for
August 2015 were down by 1.85 %, and Surrounding ABC Boards sales were down by 2.22 %.
E. Mr. Cain presented the Board with updates:
• 17t" /Castle Street Project — Mr. Hill reported that all dry wall has been finished
and painting is complete with the exception of a couple of rooms in LBD. Within
the next thirty days we should see stone work and brickwork completed on the LBD
portion of the building.
Regular Agenda Item 3e Contract Cost Adjustment (not in order of Agenda)
Mr. Hill reported that the change proposal worksheet summary for the roof replacement
came in at $199,992.62 (change order RCO -08). He also explained that with the
installation of the roof drains and wiring for the overhead lights, the ceiling will be
damaged and will need to removed. The change proposal workshect summary for
(change order RCO -02) comes up to $20,167.58. Mr. Kopp made motion to increase
the contract with Bordeaux Construction from $1,606,500.00 to $1,826,660.20 in order
to cover the two change orders and to preserve the 10% cushion for future unforeseen
allowances. With no need for a second following a motion made from the Real
Estate Committee, all approved.
Regular Agenda Item 3d Surveillance System (not in order of Agenda)
Mr. Hill reported the findings of the bid opening for the new Surveillance System
for the 17"' Street Project. ASG Security came in with the lowest bid of $22,380.89.
Mr. Kopp made motion to accept ASG Security bid for an amount not to exceed
$22,380.89. With no need for a second following a motion made from the
Real Estate Committee, all approved.
6009 Market Street Update — Mr. Cain reported the findings of the 11"' month
walk thru. There were 14 items noted from the walk thru in need of attention. He
reported that only 3 items remain on the list with a scheduled completion date of
September 30tH
Finance Committee U date - Ms. Martin reported that the Committee has met
twice since the last Board Meeting. She reported at the August 28, 2015 meeting
staff recommended to the Committee the purchase from Neuwirth Motors, of a
2014 Chrysler Town and Country Minivan for, $ 25,999.00. The Committee agreed
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and received "yes" votes from all non - attending members via personal phone calls.
Mr. Wolfe made the motion to ratify the motion previously approved via phone
calls for the purchase from Neuwirth Motors, a 2014 Chrysler Town and Country
Minivan for, $ 25,999.00. With no need for a second following a motion made
from the Finance Committee, all approved.
Ms. Martin reported at the September 16, 2015 Committee meeting the
reviewed the Excess Flood Insurance bill for the Castle Hayne and Carolina
Beach Stores for $1,524.45. Both Committee members agreed to pay this bill.
Mr. Wolfe made motion to ratify the committee decision to pay the excess
insurance bill for the Castle Hayne and Carolina Beach Stores for $1,524.45.
With no need for a second following a motion made from the Finance
Committee, all approved.
IX. Regular Agenda Items of Interest (not in order of Agenda)
A. Ms. Martin introduced Mr. David Boyce, Partner with Independent Accounting firm Koonce
Wooten and Haywood, LLP. The firm performed the Board's recent audit for FYI 4/15. Mr. Boyce
explained the final Change in Net Position (net earnings) increased from the internal financial
statements, primarily because GASB Statement No. 68 was implemented regarding the Board's
participation in LGERS. LGERS stands for Local Governmental Employees Retirement System
(North Carolina). The requirements of this Statement will improve financial reporting by clarifying
the appropriate use of the financial statement elements deferred outflows of resources and deferred
inflows of resources to ensure consistency in financial reporting. Pronouncements of the GASB
apply to financial reports of all state and local governmental entities. In a nut shell, much of the
Board's retirement expense for the year is now recorded in the Statements of Net Position --as
Deferred Outflows (Assets) and Deferred Inflows (Liabilities). Mr. Wolfe made the motion to
approve the audited financial report for the fiscal year ended June 30, 2015. Mr. Kopp seconded
the motion, and all approved.
B. Ms. Clark presented to the Board quotes from Dell, Inc. and Carolina Data Systems, for 7
PC's and 6 black & white printers for the stores. The Finance Committee reviewed these
two quotes prior to the Board meeting. Mr. Wolfe made motion to authorize the purchase
of 7 PC's and 6 black and white printers for the Stores from Carolina Data system for an
amount not to exceed $30,000.00 inclusive of taxes, labor and other expenses. With no
need for a second following a motion made from the Finance Committee, all approved.
C. The Board agreed that the next regular meeting would be held on October 20, 2015 at
10:00am at the General Office, 6009 Market Street, Wilmington, NC, following a
breakfast and annual presentation to the New Hanover County Board of Commissioners
and invited guests. The Board also agreed that the following regular meetings would be
held on November 18 at 8:00am and December 16 at 8:00am at the General Office, 6009
Market Street, Wilmington, NC.
X. Closed Sessir�n
Mr. Kopp 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 discuss a real estate issue with NC GS
143- 318.11(a)(5).
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XI. Return to Open Session:
Mr. Kopp made the motion to return to Open Session; Mr. Wolfe seconded the motion, and all present
approved.
No action was taken in Closed Session.
XII. Adjournment
Mr. Kopp made the motion to adjourn the meeting; Mr. Wolfe seconded the motion, and all approved.
Minutes submitted by:
Minutes approved by:
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Date:,