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Home My WebLink AboutABC MINUTES 10 23 2012 New Hanover County ABC Board Meeting Minutes October 23, 2012 I. Call to order Vice Chairman Cedric Dickerson called to order the regular meeting of the New Hanover County Alcoholic Beverage Control Board at 8:30am on October 23, 2012 in the Lucie Harrell Conference Room, Room 601 of the Government Center, 230 Government Center Drive, Wilmington, NC. H. Roll call Ms. Martin, Board Secretary conducted a roll call. The following Members of the Board were present: Cedric Dickerson,Vice Chairman Robert W. Martenis, Member Augustus C. Everett,Jr., Member David Matthews, Member Absent: Thomas Wolfe, Chairman Others in attendance were: Daniel Sykes, Chief Executive Officer Wanda Copley, Legal Counsel Carol Martin, Board Secretary Gary Cain, ABC Retail and LBD Operations Manager Colonel Arch Jones,NHC Sheriff's Department Ann Arnone, ABC Sales Associate 11II. Call meeting to order Mr. Dickerson verbally confirmed that the Board had 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 September 25, 2012. Mr. Martenis made the motion to approve the minutes as written, Mr. Everett seconded, all approved. Ms. Martin presented the minutes from the CIosed Session Meeting of September 25, 2012. Mr. Everett made the motion to approve the minutes as written, Mr. Martenis seconded, all approved. 1 V. Approval of proposed agenda Motion to adopt the prepared agenda as written 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 September was presented by Colonel Jones. Officers performed the following activities for the month of September, 2012: *609 Store Visits *297 Bank Deposits * 13 Change Deposits *Cited 40 "Underage Possession" ABC Law Violations *Cited 25 "Other Alcohol" ABC Law Violations *Cited 3 DWI& Implied "Other Offenses" *Cited 3 Traffic "Other Offenses" *Cited 5 Criminal "Other Offenses" *Assisted 8 ABC Law Agencies *Assisted 6 Controlled Substance Agencies *Assisted 1 "Other" Agency *Performed 8 Bar Inspections *Cited 3 Violation Submissions *Performed 28 Business Compliance Checks *Engaged in 1 Training Hour b) Mr. Sykes presented the Board with Financial Statements for September, 2012—they compared Actual September, 2012 to Budgeted September, 2012 figures. Mr. Sykes noted that for September Cash-in-Bank was up over$1M from the previous year, and that Income from Operations exceeded budget by $68 (.02%). Mr. Sykes also noted that Change in Net Assets Before Profit Distributions was up over$16.3k. Mr. Sykes further noted that for the Fiscal Year-To-Date, Change in Net Assets Before Profit Distributions beat the budget by about $177k. c) Mr. Sykes presented the Board with a Financial Dashboard. The "Dashboard" compared our Board to Three (3) NC ABC Boards with Comparable Sales [Cumberland County, Triad Municipal, and Greensboro ABC Board] in four measurements. These indicator measurements include Inventory Turnover Rate, Current Ratio, Operating Profit as a% of Net Sales, and Average Retail Sales Per Store. Mr. Sykes noted that our Board retained about 5.25% more of its profits as a percentage of net sales than the compared Boards and that our Board consistently turns inventory about eight times a year compared to the average of six times a year by the compared boards. d) Mr. Sykes apprised the Board that the New Hanover County Board of Commissioners approved our Board adopting their Board's revised travel policy, as required by G.S. 18B- 700 (g2). This was approved at their October 15, 2012 meeting. Per G.S. 18B-700 (g2), our Board must provide"...confirmation of such approval to the Commission and a copy of the travel policy authorized by the appointing authority". Our Board will do so upon approval of the Board of County Commissioners' meeting minutes. 2 e) Mr. Sykes presented the Board with a copy of the current Succession Plan, dated 12/21/10 and his Memo for the Record—Succession Planning dated 10/16/2012 that documents his executive review of the plan and the related personnel involved. The 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, current key employee strengths, weaknesses, continuing education and development, and if needed, plans recruitment and management placement of identified candidates. Management cross training continues 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. Martenis made the motion to approve the Board's review of the current plan; Mr. Everett seconded, all approved. f) Mr. Sykes presented the Board with a Personnel Request. With increased sales and more ABC Commission mandates added, two more full-time personnel are needed in the sales force to handle the workload. Mr. Sykes anticipates promoting two current part-time employees to fill the needed full-time positions. Mr. Everett made the motion to authorize the personnel strength be increased from 41 to 43 full-time employees, Mr. Martenis seconded, all approved. g) Mr. Sykes presented the Board with an Administrative Budget Amendment. At quarter- end, three (3) budgeted line items necessitated clean-up adjustments. These accounts were: 1.) Interest Expense-this expense was imputed on the Board's Other Post Employment Benefits Payable. The expense was first charged at the end of FY2011-12, and so was not included in the current year's budget. 2.) Merchandise Short (Over)-the expense was greater than budgeted for the 1st quarter. 3.) Profit Distributions-the extra County&Municipalities' Profit Distributions approved and paid by the Board in July 2012 (for FY11/12) were reclassified to FY12/13 and were listed as a"Subsequent Event" on the audit. h) Mr. Sykes presented the Board with a Budget Amendment Policy. The purpose of the policy is to provide a process for making any needed changes to the Board's Adopted Budget in accordance with NC GS 18B-702(h). The policy authorizes the CEO or designee to transfer up to $2,500 between budget functions within the same fund prior to a Board motion. The policy states that all transfers must be approved by the Board prior to fiscal year end and each must be entered into the Board minutes. The Finance Officer is responsible for ensuring copies of budget amendments are provided to the Board of County Commissioners and the NC ABC Commission within 10 days of Board approval. Mr. Martenis made the motion to approve the Budget Amendment Policy as written, Mr. Everett seconded, all approved. i) Mr. Sykes presented the Board with a Custodian Services Request for the Administrative offices and Boardroom. A long-time Board employee has established a small business with a separate IRS Employment Identification Number and has prepared a cleaning 3 services proposal with a thirty-day notice escape clause. Mr. Matthews made the motion to allow the current employee to perform the duties on her own time, for an amount not to exceed $3,500 annually. Mr. Martenis seconded the motion, all approved. j) Mr. Sykes gave each Board member and Ms. Copley, Board Legal Counsel a binder of his proposed revisions to the Board's Personnel Policies that were re-written in April 2010 under the direction of the Interim Board. These new 2012 rewritten policies strive to properly introduce new employees to the Board' history, procedures and benefits. And they more readily layout the many sections of the personnel policies for easier reference. The Board was asked to make any recommendations for change by the next Board meeting in November. VII. 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. Everett 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 November 12, 2012 (as opposed to November 20, 2012). Mr. Martenis made the motion to adjourn the meeting; Mr. Everett seconded, and all approved. Minutes submitted by: Elita.,k ` Carol E. Martin -:-cretary 40„ Minutes approved by + Date: l- Thomas Wolfe, Chair 4