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Home My WebLink AboutABC Minutes 07-10-2012 New Hanover County ABC Board Meeting Minutes July 10, 2012 I. Call to order Chairman Thomas Wolfe called to order the regular meeting of the New Hanover County Alcoholic Beverage Control Board at 8:30am on July 10, 2012 in the General Office at 523 S. 17th Street, Wilmington, NC. IL 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 Robert W. Martens,Member Augustus C. Everett, Jr., Member David Matthews, Member Others in attendance were: Daniel Sykes, Chief Executive Officer Avril Pinder, Ex-Officio Member Wanda Copley, Legal Counsel Carol Martin, Board Secretary Gary Cain, ABC Retail and LBD Operations Manager Colonel Arch Jones, NHC Sheriff's Department Mark Boyer,NHC Public Information Officer Brett Cottrell,NHC TV Photographer Craig Reck,WECT TV News Reporter III. Call meeting to order Mr. Wolfe 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 coining before the Board today? If so, please identify the conflict or appearance of conflict and refrain from any undue participation in the particular matter involved." Let it be recorded that no conflicts were identified by any Board member regarding this Board meeting. 1 IV. Approval of minutes from East meeting Ms. Martin presented the minutes from the last Regular Meeting of June 19, 2012. Mr. Martenis made the motion to approve the minutes as written, Mr. Everett seconded, all approved. V. Approval of proposed agenda Motion to adopt the prepared agenda as written, with two additions: Law Enforcement discussion of Fake IDs and a Budget Amendment, was made by Mr. Dickerson, seconded by Mr. Martenis, all approved. VI. New business a) Mr. Sykes apprised the Board that July is the Board's regular month to discuss organizational issues. It was noted that Mr. Wolfe had been already re-appointed as Chairman by the New Hanover Board of County Commissioners. Mr. Martenis nominated Mr. Dickerson to serve as Vice Chair for a third year, and Mr. Dickerson agreed to do so. Mr. Everett seconded, all approved. Ms. Martin was asked to serve a second year as Board Secretary and agreed to do so. Mr. Martenis made the motion to re- appoint Ms. Martin, Mr. Dickerson seconded, all agreed. The Board discussed considerations of moving the regular monthly meetings, and Mr. Everett made the motion to have the day and time remain the same. Mr. Martenis seconded, all approved. b) ABC Law Enforcement Officer's Unit Monthly (ALE) Report for June was presented by Colonel Jones. Officers performed the following activities for the month of June, 2012: *658 Store Visits *321 Bank Deposits * 14 Change Deposits *Cited 16 "Underage Possession" ABC Law Violations *Cited 2 "Unauthorized Possession" ABC Law Violation *Cited 20 "Other Alcohol" ABC Law Violations *Cited 1 "Possession" Controlled-Substance Violation *Cited 1 "Paraphernalia" Controlled-Substance Violation *Cited 9 Traffic "Other Offenses" *Cited 2 Criminal "Other Offenses" *Assisted 7 ABC Law Agencies *Assisted 3 Controlled Substance Agencies *Assisted 1 "Other" Agency *Performed 35 Inspections *Submitted 1 Violation *Performed 20 Compliance Checks Col. Jones mentioned that the Sheriff Office had seven officers on duty on Masonboro Island on the Fourth of July to tame the crowd of over two thousand. He also mentioned that the Sheriff's Office gave the Down Town Task Force one of their Segways to assist in their efforts downtown. • 2 c) Mr. Wolfe and Col. Jones discussed in depth with the Board the revocation of a driver license as a condition of using a fake ID. Mr. Wolfe said that he would bring the discussion to the NC Alcoholic Beverage Control Board meeting in July and with ABC Commission Chair, Zander Guy. Mr. Wolfe felt like both the NC ABC Commission and the NC Association of ABC Boards would support this as legislation. d) Mr. Sykes afforded everyone in attendance the opportunity to view first-hand the various functions and conditions of the facility of the Current 17th Street Building Complex by leading a tour of the building. The facility houses the distribution center for all ABC sales in the County, the Board's largest LBD store, its smallest and busiest retail stores, the Administrative Offices and Board Room. The Board members appreciated the opportunity to talk with the various employees and to see the operations themselves. e) Mr. Sykes apprised the Board of one (1) update: *The New Hanover County Board of Commissioners in accordance with NC GS 18-B-805(d) approved our Board's request to restrict funds for capital improvements for FY2012-13 in the amount of$2,555,950. This vote was made at their July 2, 2012 Commissioners' meeting. f) Mr. Sykes presented the Board with Unaudited Financial Statements for June and for the Year Ended June 30, 2012—the income statements compared Actual 2012 to Budget 2012 figures. Mr. Sykes noted that for the month of June, Income from Operations exceeded budget by $81k (22.2%). For the Year Ended June 30, 2012 Income from Operations exceeded budget by $853k (21.61%) and Net Income before Distributions exceeded budget by $862k(21.63%). g) Mr. Sykes proposed an additional profit distribution due to unexpected income. He provided two tools with which to assist the members in their decision, a "Sliding Scale of Percentages" and a "Graph". The graph showed the actual local distributions made to Law Enforcement, the County and Municipalities over the past seven years. Mr. Sykes suggested distributing another$400k for FY2011-12 for a total profit distribution of $1,900,000 for the year. Mr. Martenis made the motion to approve the additional $400k profit distribution to the beneficiaries with an accompanying letter stating that this is a one-time lump sum distribution. Mr. Dickerson seconded, all approved. h) Mr. Sykes apprised the Board that the renewal paperwork and premium amounts for flood insurance were expected in the near future; however, the Board may not meet in August to review them. He suggested that the Board authorize Mr. Dickerson coordinate with him to take appropriate action to ensure flood insurance remains in effect for the Wrightsville Beach, Carolina Beach and Castle Hayne stores. Mr. Martenis made the motion to authorize Mr. Dickerson to review the policies and to authorize the payment and for the CEO to execute. Mr. Everett seconded, all approved. 3 i) Mr. Sykes presented the Board with an "Operational and Strategic Planning" handout for discussion purposes only. The handout had four(4) proposed floor plans: 1.) The Current Layout of the 523 S. 17th Street Building. 2.) The Proposed Layout of Renovated 523 S. 17th Street Building, depicted without Administrative area (this area is shown used for retail storage and distribution storage). 3.) The Proposed Layout of Renovated 523 S. 17th Street Building, depicting existing offices remaining for training, staff meetings, alcohol law enforcement, etc. 4.) Proposed New Complex (LBD, Distribution Center and Administrative Offices). j) Mr. Sykes presented the Board with his executive Fiscal Year Highlights. His list covered many areas, and Mr. Matthews asked for the list to be available for the Board at or before the next Board meeting. Mr. Boyer had produced a Media News Release which expounded on the successful fiscal year and the approved additional profit distribution. He stated that the goals of the Board and its' employees "are to achieve a reasonable balance in five general areas, 1.) providing a high level of customer service. 2.) contributing to the Board's beneficiaries. 3.) maintaining a knowledgeable and dedicated workforce. 4.) supporting efforts to ensure the legal sell and control of alcoholic beverages. 5.) maintaining sufficient working capital to sustain the future". k) Mr. Sykes presented the Board with an Administrative Budget Amendment. At year-end, four (4) budgeted line items exceeded the annual budgeted amount and a clean-up adjustment was needed. These accounts were: 1.) Interest Expense-this expense was imputed on Board's Other Post Employment Benefits Payable. 2.) Gain/Loss on Disposal of Fixed Assets-a result of normal fixed asset write offs. 3.) Repair & Maintenance-Buildings-normal legitimate maintenance/repair items. 4.) Store and Warehouse Supplies-normal legitimate supply expenditures The budget amendment is required to transfer funds from the contingency account "Miscellaneous" (Operating expense) to the associated budgeted general ledger expense accounts. Mr. Dickerson made the motion to approve the Administrative Budget Amendment, Mr. Martenis seconded, all approved. VII. Adjournment The next meeting is re-scheduled for August 1, 2012 (in lieu of no August meeting). Mr. Martenis made the motion to adjourn the meeting; Mr. Everett seconded, and all approved. Minutes submitted by: (f1� --' C� a Martin, S retary Minutes approved by r• e: �1�. 4 Thomas Wolfe, Chair 5