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Home My WebLink About2011-09-20 3 z s` t New Hanover County ABC Board Meeting Minutes 3 September 20, 2011 I. Call to order a Chairman Wolfe called to order the regular meeting of the New Hanover County Alcoholic Beverage Control Board at 8:30am on September 20, 2011 in the General Office at 523 S. 17'' Street, Wilmington, NC. U. Roll call Ms. Martin, Board Secretary conducted a roll call. The following members of the Board were present: Thomas Wolfe, Chairman Cedric Dickerson, Vice Chairman David Matthews, Member Augustus C. Everett, Jr., Member Robert W. Martenis, Member Wanda Copley, Legal Counsel Avril Pinder, Ex- Officio Member r Others in attendance were: Daniel Sykes, Chief Executive Officer Carol Martin, Board Secretary Gary Cain, ABC Retail and LBD Operations Manager Colonel Jones, NHC Sheriff's Department j Diana Page, McGladrey & Pullen, LLP Gina Golden, Part -time ABC Employee Ill. Approval of minutes from last meeting Ms. Martin presented the minutes from both the last regular meeting & Closed Session portion. Mr. Matthews made the motion to approve the minutes as written, Mr. Martens seconded, all approved. IV. Approval of proposed agenda Motion to adopt the proposed agenda was approved as written by Mr. Martenis, seconded by Mr. Everett, all approved. V. New business a} Ms. Diana Page, Audit Manager with McGladrey & Pullen, LLP presented the Independent Auditor's Report for fiscal years ended June 30, 2011 and 2010. The New Hanover County Alcoholic Beverage Control Board was given an unqualified opinion. The audit did note that during the year ended June 30, j I 1 2011, the Board recorded a special impairment charge of $1,432,000 due to a change in intended use for land purchased during the year ended June 30, 2008. The land was zoned residential when purchased and attempts to rezone by the prior Board were unsuccessful. Rezoning was not attempted by the current Board. The impairment charge has been recorded to reduce that land and related improvements to its appraised market value as of June 30, 2011. Ms. Page also presented the Report to the Governing Board which included a Summary of Accounting Estimates, a Summary of Recorded Audit Adjustments and a Summary of Uncorrected Misstatements. Mr. Martenis made the motion to accept the annual audit and related report as presented, Mr. Dickerson seconded, all approved. b) ABC Law Enforcement Office's Unit Monthly (ALE) Report for August was presented by Colonel Jones, NHC Sheriff's Department. Officers performed the following activities for the month of August, 2011: *Cited 1 Sell to Intoxicated ABC Law Violation *Cited 10 Underage Possession ABC Law Violations *Cited 3 Unauthorized Possession ABC Law Violations *Cited 12 "Other Alcohol" ABC Law Violations *Cited 2 Controlled Substance Possession Violations *Cited 3 Controlled Substance Paraphernalia Violations *Cited 3 DWI & Implied "Other Offenses" *Cited 4 Traffic and 14 Criminal "Other Offenses" " *Assisted 11 ABC Law Agencies *Assisted 4 Controlled Substance Agencies *Assisted 6 "Other" Agencies *Performed 36 Inspections *Performed 20 Compliance Checks *Completed 20 Training Hours Colonel Jones further noted 32 arrests, 37 charges, 29 inspections, 6 consent searches, 636 store visits and 249 bank deposits. Colonel Jones thanked the Board for purchasing the three alcohol breath sensors for the downtown units. He noted that the department is getting positive responses from the downtown bars regarding the additional officer exposure. c) Mr. Sykes presented the August 2011 and Rolling 12 -Month Comparison. He noted that August was an exciting month in New Hanover County, with a water spout over land at Carolina Beach, a funnel cloud spotted in the Myrtle Grove area, an earthquake in Virginia felt locally, and Hurricane Irene missing the coast by about 50 miles. The stores closed a couple of hours early on Friday August 26 and remained closed all day on Saturday, August 27 For August, Retail sales were up 8.91% ($160k). LBD sales were up 3.96% ($33.2k). Total Sales were up 7.34% ($193.3k). For the 12 -Month Rolling Comparison, Retail stores 2 y 3 8 S k showed a 5.48% ($1.15 million) increase in sales, LBD sales were down .61% ($58.8k) and Total sales were up 3.57 % (about $1.1 million). d) Mr. Sykes presented the Statewide Sales for August, 2011. This information is for spirituous beverages only (no wines /mixers are included): Retail: We had a 8.83% increase compared to 8.03% increase Statewide. LBD: We had a 4.00% increase compared to 7.62% increase Statewide. Overall: We had a 7.29% increase in spirituous beverages compared to a 7.95% increase Statewide. Our overall sales figures were below the State average by $17.4k. e) Mr. Sykes presented the Board with Financial Statements for August and YTD— F both compare Actual 2011 to Actual 2010 figures and Actual 2011 to Budget 2011 figures. Mr. Sykes noted that about $300k has been cut from inventories, and that inventories will increase as we begin to receive additional shipments and buy -ins for the holiday season. Mr. Sykes further noted that Net Income before Distributions was up $68.5k over last year. j f) Mr. Sykes presented the Board with two proposed purchases: a 1.) Surveillance Equipment Upgrades for stores #102 - Carolina Beach Road, #105 - Carolina Beach, and #106- College Road. These systems have been of concern for our law enforcement personnel for several months. Mr. Dickerson made the motion to authorize this capital expense of $8,465.00; Mr. Martenis seconded, all approved. 2.) Landscaping for store #105 - Carolina Beach. Five of the palm trees have died in recent years and the Senior Planner for the Town of Carolina Beach s stated that the trees must be replaced if removed. Mr. Everett made the motion to authorize our landscape company to remove and replace the five trees for approximately $1,860.00; Mr. Martenis seconded, and all approved. g) Ms. Martin presented the Board with a proposed purchase of Financial Statement Spreadsheet ApQlication Software Global Software's Designer GL Custom Profile is a spreadsheet application which integrates with our SLQ Traverse F (General Ledger Data) software in real time. This will produce "perpetual" j financial statements and free -up valuable time currently spent producing monthly z financial statements in Excel manually. Ms. Pinder made the motion to make the t purchase for an amount not -to- exceed $14,080.00; Mr. Martenis seconded, and all approved. x h) Mr. Sykes presented the Board with a Memo of Record dated 9/15/2011 that documents his review of the plan and the related personnel involved. The F primary concern of the Succession Plan is to provide coverage for key personnel during absences for up to eight weeks, at which time permanent decisions can be { made. The Plan requires the CEO to review the plan on an annual basis. The review assesses the organization, assesses key employees, develops employees, 3 and if needed, plan recruitment and management placement of identified candidates. Management cross training has already begun in his review of the key positions: 1) Chief Executive Officer, 2) Accounting, Finance & Administrative Manager, 3) Purchasing & Logistics Operations Manager, and 4) Retail & LBD Operations Manager. Mr. Matthews made the motion to approve the Board's review of the current plan; Mr. Dickerson seconded, and all approved. VI. Closed Session The Board entered into Closed Session to discuss a potential real estate acquisition in accordance with NC GS 143- 318.11(a)(5). Mr. Martenis made the motion to enter into Closed Session, Mr. Everett seconded, all approved. After several minutes in Closed Session, Open Session began again. Mr. Martenis made the motion to restart the Open Session; Mr. Dickerson seconded, all approved. VII. Return to Oven Session It was stated that the Closed Session resulted in the Board authorizing Chairman Wolfe to execute initial and subsequent real estate documents on behalf of the Board contingent on approval by the North Carolina Alcoholic Beverage Control Commission. VIII. Adiournment Mr. Dickerson made the motion to adjourn the meeting; Mr. Martenis seconded, all approved. Minutes submitted by: Car E. Martin, cretary c_ Minutes approved Date: Thomas Wolfe, Chair 4