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Home My WebLink About2011-06-21 F s New Hanover County ABC Board Meeting Minutes June 21, 2011 s I. Call to order Chairman Wolfe called to order the regular meeting of the New Hanover County Alcoholic Beverage Control Board at 8:30am on June 21, 2011 in the New Hanover County Government Center, Conference Room 500, Finance Suite, 230 Government Center Drive, Wilmington, NC. S i II. Roll call k Ms. Martin conducted a roll call. The following Members of the Board were present: Thomas Wolfe, Chairman Cedric Dickerson, Vice Chairman David Matthews, Member f Augustus C. Everett, Jr. Member Robert W. Martenis, Member Wanda Copley, Legal Counsel Avril Pinder, Ex- Officio Member j Others in attendance were: Daniel Sykes, Chief Executive Officer Carol Martin, Board Secretary Gary Cain, ABC Retail and LBD Operations Manager Arch Jones, Colonel, NHC Sheriff's Department Ed McMahon, Sheriff, New Hanover County Ralph Evangelous, Chief of Police, City of Wilmington Susi Hamilton, State Representative Bruce Shell, County Manager Kevin O'Grady and Laura Padgett, Council Members, City of Wilmington John Hinnant, Executive Director, Wilmington Downtown Inc, Robert Clark, Assistant Store Manager New Hanover County Sheriff's Officers: Sgt. Arron Morrisette Dep. Chris Stewart Dep. John Almasy g Dep. John Menker 4 Dep. Chad Payne III. Approval of minutes from last meeting Ms. Martin presented the minutes from the last regular meeting and Closed Session portion of May 17, 2011, and the Special Meeting of May 24, 2011. Mr. Martenis motioned to approve the minutes as written; Mr. Dickerson y seconded; all approved. � 1 New Hanover County ABC Board Meeting Minutes June 21, 2011 IV. Approval of proposed agenda Mr. Martenis made a motion to adopt the proposed agenda with one exception, to discuss, "Item five, Alcohol Law Enforcement ", at the beginning of the meeting. It was seconded by Mr. Matthews, all approved. V. New business a) ABC Law Enforcement Office's Unit Monthly (ALE) Report for May was presented by Colonel Jones, NHC Sheriff's Department. Officers performed or cited the following activities during the month of May, 2011: *Cited 18 Underage Possession ABC Law Violations at Permitted Establishments and 3 Away from Permitted Establishments *Cited 3 Unauthorized Possession ABC Law Violations *Cited 9 "Other Alcohol" ABC Law Violations *Cited 7 Controlled Substance Possession Violations *Cited 7 Paraphernalia Controlled - Substance Violations *Cited 6 Traffic and 19 Criminal "Other Offenses" *Assisted 16 ABC Law Agencies *Assisted 1 Controlled Substance Agency and 2 "Other" Agencies *Performed 32 Inspections *Submitted 2 Miscellaneous Violations *Performed 38 Compliance Checks Colonel Jones apprised the board that signs have been placed on each store entrance door to "Remove Hats, Sunglasses and Hoods When Entering ". This will help officers identify suspects in law enforcement situations. b) Mr. Wolfe presented the Board with the contract for Annual Recurring Law Enforcement and a Task Force Contract. Mr. Wolfe gave an in- depth discussion on the background and work that went into drafting the Task Force Contract. He stated that the Sheriff and Chief came up with the task force to enhance alcohol law enforcement for a one -year period, primarily in the downtown Wilmington area. The ABC board offered to fund a portion of the expenses with an $180,000 distribution. Mr. Everett made the motion to approve the onetime $180,000 contract, Mr. Dickerson seconded, all approved. Our distinguished guests made favorable comments on the coordinated union between the two divisions of law enforcement for the betterment of our downtown for our citizens. For FYI 1/12, the board was asked to approve $300,000 for the Recurring Law Enforcement Contract. This amount includes the salaries, overtime and benefits of 2 New Hanover County ABC Board Meeting Minutes June 21, 2011 3 't four ABC Sheriff's officers. Mr. Martens made the motion to approve the s $300,000 contract, Mr. Everett seconded, all approved. 3 c) Mr. Sykes apprised the Board of four updates: 1.) The County Commissioners re- appointed Mr. Wolfe as Board Chair, and Mr. Matthews was re- appointed for a three -year period to the ABC Board. a 2.) The County Commissioners rejected the ABC Board's request to grant Mr. Sykes a pay increase; however, Mr. Sykes appreciated the fact that the Board had considered the pay increase. 3.) Mr. Dickerson requested representation from our Board to attend a meeting of the Cape Fear Coalition for a Drug -Free Tomorrow in the near future, and to perhaps give a brief bullet point presentation. 4.) Two NCABC proposed amendments to the Administrative Code will affect this board, if passed: a.) Maintenance of Working Capital: The proposed change will f lower the maximum working capital from four months to three months —a reduction of $1.9 million working capital for this board. b.) Shelf Management: A shelf management plan will be needed for each store, effective November 1, 2011. d) Mr. Sykes presented the May 2011 and Rolling 12 -Month Comparison. For May, Retail stores showed a 1.79% ($33.7k) increase in sales. LBD sales were up with } a 4.53% ($39.4k) increase, and Total Sales were up 2.65% ($73.1k). In May, LBD sales represented over 32% of total sales. For the 12- Month Rolling Comparison, Retail stores showed a 5.61% ($1.16 million) increase in sales, LBD sales were down 1.63% ($158k) and Total sales were up 3.30% ($1.0 million). j e) Mr. Sykes presented the Statewide Sales for May, 2011. This information is for spirituous beverages only (no wines /mixers are included): Retail: We had a 1.53% increase compared to 0.02% decrease Statewide. LBD: We had a 4.53% increase compared to 5.45% increase Statewide. Overall: We had a 2.47% increase in spirituous beverages compared to a 1.06% increase Statewide. Our overall sales figures exceeded the State average by over $26k. : f) Mr. Sykes presented the Board with Financial Statements for May and YTD— both compare actual to budget figures. Mr. Sykes noted that based on the May statement, the Board has a great liquidity position. He further noted that the # 3 y � I New Hanover County ABC Board Meeting Minutes June 21, 2011 FY11 /12 proposed budget shows an additional $300k profit distribution (an increase from $1.2 million to $1.5 million) and that this distribution can be made in August 2011— assuming the projections hold true and the Board finalizes this distribution. g) Mr. Sykes presented the Board with his Latest Income Projections Thru Year - End. He surmised that it appears that "Net Income after Distributions" should be about $993k at year - end —over $304k more than originally budgeted. h) Mr. Sykes presented the Board with McGladrey & Pullen, LLP, Certified Public Accountants' Compiled Financial Report – 3` Quarter. The board discussed considering a mid -year compilation for FY2011 -12 in lieu of quarterly compilations since in -house monthly statements were being presented timely. i) Mr. Sykes presented the Board with two (2) Contracts /Agreements: 1.) Land Planner: The contract for land planning services with Ms. Cindee Wolf, local Land Planner with Withers & Ravenel expires at the end of June if not extended. Mr. Sykes estimated that $10,000 is needed for FYI 1/12, and that fees paid for specific land planning will be a cash outlay and will be capitalized as part of the cost of the completed asset (as opposed to a period expense). Mr. Martenis made the motion to approve the $10,000 amount, Mr. Dickerson seconded, all approved. Mr. Martenis then made the motion to extend the contract term to cover FY11 /12; Mr. Dickerson seconded, all approved. 2.) Real Estate Appraiser: Mr. Sykes stated that proposals are being solicited to have the property that was purchased by the former Board in the vicinity of IV & Castle Streets appraised as of two dates: 06/30/08 and 06/30/11. The properties are currently recorded on the books and records at the amount actually paid plus the cost of improvements. His concern is the property was not appraised prior to purchase and may be substantially overstated on the books and records; if so, a prior period adjustment would be required. Mr. Dickerson made the motion to' approve retaining the services of a real estate appraiser for an amount not to exceed $8,000, Mr. Matthews seconded, all approved. j) Mr. Sykes presented the Board with a proposal for a new LBD, Dock and Landscaping project as an addition to the current Castle Street property location. He suggested that the increase to the "Cash Outlays" on the FY11 /12 Budget Ordinance would be $1.5 million. The Board generally agreed not to make a decision regarding this project because a following Closed Session discussion also affects the budget. 4 I i New Hanover County ABC Board Meeting Minutes June 21, 2011 VI. Closed Session A. The Board entered into Closed Session to discuss a potential real estate acquisition in accordance with NC GS 143- 318.1l(a) (5). Mr. Martenis made the motion to enter into Closed Session, Mr. Matthews seconded, all approved. After several minutes in Closed Session, Mr. Dickerson made the motion to restart the Open Session, Mr. Matthews seconded, all approved. i VII. Return to Open Session It was stated that the Closed Session resulted in no action, and that necessary research 5 would continue. Mr. Sykes presented the Board with the New Hanover County ABC Board Revised Budget Ordinance for Fiscal Year 2011 -2012 Revisions to the recommended budget were as follows: A. Revenues & Expenses: A reduction in LBD sales by over $300,000 which primarily affected "taxes related to sales ", "cost -of- sales" along with several operating expenses. B. Capital Outlays: a. Include items approved and ordered, but not yet received: add Warehouse Forklift $25,000 and $6,000 for LBD web software. b. Increase the cost of the LBD Building from $840,000 t0 $1,500,000 (to make it two stories; and to include loading dock construction and landscaping). Mr. Martenis made the motion to accept the revised FY11 /12 budget with the changes discussed, Mr. Matthews seconded, all approved. VIII. Ad iournment # Mr. Martenis made the motion to adjourn the meeting; Mr. Dickerson seconded, j all approved. I s Minutes submitted by: IOU4 M i Carol . Martin, retary Minutes approved Date: I % f I i Thomas Wolfe, Chair 5 a