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Home My WebLink AboutABC Minutes 09 25 2012 New Hanover County ABC Board Meeting Minutes September 25, 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 September 25, 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. Martenis, 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 Mary Richardson, ABC Store Manager Gary A. Ridgeway CPA, Audit Director, McGladrey LLP Martha Wayne CPA, Audit Manager, McGladrey LLP 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 coming 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. IV. Approval of minutes from last meeting Ms. Martin presented the minutes from the last Regular Meeting of August 1, 2012. Mr. Dickerson made the motion to approve the minutes as written, Mr. Martenis seconded, all approved. Ms. Martin presented the minutes from the Closed Session Meeting of August 1 1, 2012. Mr. Dickerson made the motion to approve the minutes as written, Mr. Martenis seconded, all approved. V. Approval of proposed agenda Motion to adopt the prepared agenda as written, with one addition:A discussion regarding an Alcohol Rehabilitation Contribution concept, and the need to enter into closed session after regular meeting conducted, was made by Mr. Martenis, seconded by Mr. Everett, all approved. VI. New business a) ABC Law Enforcement Officer's Unit Monthly (ALE) Report for August was presented by Colonel Jones. Officers performed the following activities for the month of August, 2012: *726 Store Visits *332 Bank Deposits * 15 Change Deposits "Cited 63 "Underage Possession" ABC Law Violations *Cited 39 "Other Alcohol" ABC Law Violations *Cited 1 "Paraphernalia" Controlled-Substance Violation *Cited 2 DWI&Implied "Other Offenses" *Cited 2 Traffic "Other Offenses" *Cited 5 Criminal "Other Offenses" *Assisted 7 ABC Law Agencies *Assisted 4 Controlled Substance Agencies *Assisted 3 "Other" Agency *Performed 40 Bar Inspections *Cited 1 Violations Submission *Performed 6 Compliance Checks *Engaged in 1 Training Hour b) Mr. Sykes presented the Board with Financial Statements for August, 2012—they compare Actual August, 2012 to Budgeted August, 2012 figures. Mr. Sykes noted that for August both Cash-in-Bank and Inventories were up from the previous year, and that Income from Operations exceeded budget by $126.0k(31.21%). Mr. Sykes also noted that Change in Net Assets Before Profit Distributions was up over$111k. Mr. Sykes further noted that for the Fiscal Year-To-Date, Income from Operations exceeded budget by $169.7k (20.23%). c) Ms. Martha Wayne,Audit Manager and Mr. Gary Ridgeway, Audit Director with McGladrey LLP presented the Independent Auditor's Report for fiscal years ended June 30, 2012 and 2011. The New Hanover County Alcoholic Beverage Control Board was given an unqualified opinion. The auditors also presented the Report to the Governing Board which included a Summary of Accounting Estimates and a Summary of Recorded Audit Adjustments. Mr. Sykes' agenda item on this audit topic noted that two items were listed by the auditors as Subsequent Events. One event regarded the Board's approved 2 decision to restrict funds for future expansion that was not voted on by the Governing Board until after the fiscal year end. The second event was the Board declared additional $400,000 profit distribution that was not finalized until after the fiscal year end. Mr. Wolfe made the motion to accept the annual audit and related report as presented, Mr. Everett seconded, all approved. d) Mr. Sykes advised the Board that McGladrey LLP has completed its third audit, and suggested that a Request for Proposal (RFP) may be in order. The Board discussed the need for an audit committee and did not choose to form one at this time. The Board also elected that if McGladrey LLP is awarded a new contract that mid-year compilations need not be performed. Mr. Martenis made the motion that an RFP be prepared by the county purchasing office to be sent out for bids. Mr. Matthews seconded, all approved. e) Mr. Sykes advised the Board that the NC ABC Commission, per G.S. 18B-700 (g2) states, "...the local board shall annually provide the appointing authority's written confirmation of such approval to the Commission and a copy of the travel policy authorized by the appointing authority" requires all ABC Boards obtain approval of their travel policy from their appointing authority annually. Because our Board chooses to conform to the County's most current travel policy annually, (versus the State's policy) Mr. Sykes revised the Board's Travel Policy as the County had revised its in March, 2012. G.S. 18B-700(g2) requires the appointing authority to approve the adopting of their travel policy annually. This approval must be obtained at the beginning of each fiscal year. Ms. Copley will add this to the county's next meeting agenda for consideration of adoption. Mr. Martenis made the motion to accept the revised Travel Policy as written, to become effective upon approval by the Board of County Commissioners. Mr. Dickerson seconded, all approved. f) Mr. Sykes apprised the Board that most of the Board's commercial and casualty policies renew November 1s`, and that he had recently put the policies out for proposal. Four established companies quoted, and after careful comparison, Mr. Sykes recommended renewing coverage with the current agency, Robins and Weill Insurance Company for the upcoming insurance year. Mr. Sykes also suggested the board add Data Breach Liability coverage of$250k through the agency in the new insurance year. Mr. Dickerson made the motion to renew the current coverage with Robins and Weill. Mr. Martenis seconded, and all approved. Mr. Martenis made the motion to add the data breach liability policy, Mr. Dickerson seconded, all approved. g) Mr. Sykes presented the Board with a suggested donation alliance with CoastalCare(a nonprofit) specifically for their Alcohol Rehabilitation Programs. "CoastalCare's mission is to improve the quality of life of individuals having a Mental Illness, Substance Use Disorder, or Intellectual/Developmental Disability through efficient management of an effective care system in our communities." He suggested that the areas in which boxes the ABC system currently gives to the general public could have signage about the Alcohol Rehabilitation Program and secure donation boxes for the public to give voluntarily. A quarter ($0.25) was the amount discussed by the Board for suggested donation for each box taken. Internal controls would be implemented to insure the donations get to the intended program. 3 Because the ABC Board is limited in activities it can participate in outside of selling liquor, Mr. Sykes excerpted from the North Carolina Administrative Code: 04 NCAC 02R.1709 ALCOHOL REHABILITATION COLLECTIONS PERMITTED (a)Local boards may provide containers for the collection of voluntary contributions to alcohol rehabilitation programs approved by the Commission. (b)Collection or solicitation of contributions for any other purpose is prohibited. History Note:Authority G.S. 18B-207; 18B-807; Eff.May 1, 1984. Mr. Martenis made the motion to authorize the Chair to proceed in gathering information and then approaching the NC ABC Commission for approval before implementing the alliance, Mr. Everett seconded, all approved. VII. Closed Session The Board entered into Closed Session to discuss a potential real estate acquisition in accordance with NC GS 143-31S.11(a)(5). Mr. Martenis made the motion to enter into Closed Session,Mr. Dickerson seconded, all approved. After several minutes in Closed Session, Open Session began again. Mr. Dickerson made the motion to restart the Open Session; Mr. Martenis seconded, all approved. VIII. Return to Open Session It was stated that the Closed Session resulted in no action, and that necessary real estate research would continue. IX. Adjournment The next meeting is re-scheduled for October 23, 2012 (as opposed to October 16, 2012). Mr. Martenis made the motion to adjourn the meeting; Mr. Dickerson seconded, and all approved. Minutes submitted by: CAL S al.ter' Carol E. Martin, Secretary Minutes approved by r., . Date: /0-3/—4 - Cedric Dickerson, Vice Chairman 4