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HomeMy WebLinkAboutABC MINUTES of January 16 2013 New Hanover County ABC Board Meeting Minutes January 16, 2013 I. Call to order Chairman Cedric Dickerson called to order the regular meeting of the New Hanover County Alcoholic Beverage Control Board at 8:30am on January 16, 2013 in the General Office at 523 S. 17th Street, Wilmington, NC. II. Roll call Ms. Martin, Board Secretary conducted a roll call. The following Members of the Board were present: Cedric Dickerson, Chairman Robert W. Martenis, Vice Chairman Thomas Wolfe, Member Augustus C. Everett, Jr., Member David Matthews, Member Others in attendance were: Daniel Sykes, Chief Executive Officer Carol Martin, Board Secretary Gary Cain, ABC Retail and LBD Operations Manager Wanda Copley, Legal Counsel Avril Pinder, Ex-Officio Member Arch Jones, Colonel, NHC Sheriff's Department Troy Johnson, Part-time Sales Associate III. Call meeting to order Mr. Dickerson verbally confirmed that the Board members 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 December 18, 2012. Mr. Martenis made the motion to approve the minutes as written, with one correction that has since been remedied—a member had erroneously been identified as having both made a motion and seconded it. Mr. Everett seconded, all approved. 1 V. Installation of Chairman and Selection of Vice Chairman Pursuant to G.S. 18B-700(c) the Board of County Commissioners officially appointed Mr. Dickerson as the new ABC Board Chairman at its January 7, 2013 meeting. Mr. Matthews nominated Mr. Martenis as the new Vice Chairman, Mr. Everett seconded, all approved. VI. Approval of proposed agenda Motion to adopt the prepared agenda as written, plus three additional items,Real Estate Committee meeting minutes of January 15, 2013, a proposed additional Profit Distribution and the need to add a closed session to the meeting, was made by Mr. Martenis, seconded by Mr. Wolfe, all approved. VII. New business a) Mr. Dickerson introduced Mr. Johnson to the Board and thanked him for his service. b) ABC Law Enforcement Officer's Unit Monthly (ALE) Report for December was presented by Col. Jones. Officers performed the following activities for the month of December, 2012: *566 Store Visits *316 Bank Deposits * 11 Change Deposits * 4 Video Investigations * 1 Consent Search *Cited 2 "Underage Possession"ABC Law Violations *Cited 3 "Unauthorized Possession"ABC Law Violations *Cited 2 "Other Alcohol" ABC Law Violations *Cited 8 Criminal "Other Offenses" *Assisted 2 ABC Law Agencies *Assisted 3 Controlled Substance Agencies *Assisted 4 Other Agencies *Performed 12 Bar Inspections *Performed 11 Business Compliance Checks *Engaged in 2 Training Hours Col. Jones apprised the Board that On December 14, 2012, the North Carolina Supreme Court ruled that per G.S. 14-306.4 Electronic machines and devices for sweepstakes are prohibited. He said that although Vice and Narcotics Division of the New Hanover County Sheriffs Office is responsible for the enforcement, our ABC officers would be enforcing the ruling in any of the Board's LBD customers' establishments. Col. Jones also noted that the area new ALE Supervisor will be D. J. Hales. This change will take effect on February 1, 2013. 2 c) Mr. Sykes presented the Board with Financial Statements for December, 2012. The Balance sheet compared 12/31/2012 with 12/31/2011 figures and the Income Statement compared Actual December, 2012 to Budgeted December, 2012 figures. Mr. Sykes noted that for December Cash-in-Bank was up $1.5M from the previous year, and that Income from Operations exceeded budget by$38k (7.33%). Mr. Sykes also noted that Change in Net Assets Before Profit Distributions was up over$48k. Mr. Sykes further noted that for the Fiscal Year-To-Date, Income from Operations exceeded budget by $347k (14.62%) and Change in Net Assets Before Profit Distributions beat the budget by about $355k. d) Mr. Sykes presented the Board with his Financial Projections through Fiscal Year-End, as of December 31, 2012. The purpose of the sales/expense projections spreadsheet is to give some insight as to how the year is going and how it is expected to end. Basically it is actual financial information for the first six months plus projected/budgeted information for the remainder of the year. e) Mr. Sykes provided the Board with two updates: The NC Association of ABC Boards will hold its annual General Managers' meeting in Greensboro, March 12 and 13, 2013. Mr. Sykes would like to attend with Mr. Cain and Ms. Martin. The NC Association of ABC Boards has selected and endorsed Electronic Payment Systems as Preferred Vendor for Merchant Services. This program will only be available to ABC Boards that are members of the Association. As is typical with most preferred vendor arrangements between a vendor and an association, the Preferred Vendor will provide some compensation to the Association which will enable the Association to further its missions and objectives, which include retaining the control system for the sale and distribution of spirits. Mr. Sykes and Ms. Martin will meet with both Electronic Payment Systems and the Board's current provider, Heartland Payment Systems, and their comparison and recommendations will be presented at the next regular Board meeting. f) Mr. Sykes presented the Board a"CEO Performance Evaluation Policy". The purpose of this policy is to standardize the performance evaluation process to provide the structure for comprehensive, defensible and consistently applied performance evaluation. The performance evaluation is an opportunity for coaching and corrective measures as well. The CEO is the only employee evaluated by the Board. Mr. Wolfe made the motion to accept the policy as presented, Mr. Martenis seconded, all approved. g) Mr. Sykes presented to the Board a revised version of the "Board Meeting Procedures & Related Responsibilities Policy". Many items had changed since the policy was first approved in July, 2010. Mr. Martenis made the motion to accept the revised policy as presented, Mr. Matthews seconded, all approved. h) Mr. Sykes presented the Board with a"Board Member Compensation" spreadsheet. The data was obtained from the NC ABC Commission's website 12/31/12. The spreadsheet provides pertinent information from comparable boards, and per NC G.S. 18B-700(g), 3 any increase above $150 per Board meeting must be approved by the appointing authority. After Board discussion, Mr. Martenis made the motion to request the New Hanover County Board of Commissioners approve an increase in the monthly (not per meeting) stipend from$150 to $250 for Board members other than the Chair, and from $150 to $300 for the Board Chair. Mr. Everett seconded the motion and all approved. Mr. Sykes will present the request to the New Hanover County Board of Commissioners at their February 18, 2013 meeting. i) Mr. Sykes presented the Board with a narrative and supporting spreadsheet relaying, "Justification for Additional ABC Stores", as the topic has come up several times. Mr. Sykes' analysis notes that using equivalent populations and average number of stores per 10k population and average sales per store of four compared Boards, the NHC ABC Board could justify 12-13 stores (retail and LBD). j) Mr. Sykes presented an Employee Diversity Report for Calendar Year 2012. The report provided raw numbers and a breakdown by percentage of New Hanover County's entire population. The report also provided the Board's race and gender breakdown. Mr. Sykes iterated that diversity in hiring qualified applicants is a priority of this Board and improvements have been made each year. Mr. Everett made the motion to accept the Diversity Report as prepared; Mr. Wolfe seconded, all approved. k) Mr. Sykes presented a 2012 Employee Turn-over Percentage Report. For the Calendar Year 2012 the Employee Turn-over Percentage is 5.15% compared to Calendar Year 2011's 16.69% and Calendar Year 2010's 13.95%. Mr. Sykes noted that the percentage is a metric which indicates how the human resources side of the system is functioning from year-to-year. Excess turnover can be problematic if it has an adverse impact on the performance of the organization. The headcount (Full-Time Equivalent's) increased late in the calendar year, as the Board authorized two more full-time positions (43 total) to meet customer demand for products. Mr. Martenis made the motion to accept the Employee Turnover Report as prepared; Mr. Wolfe seconded, all approved. 1) Mr. Sykes provided the Board a"Narrative to Support Sales Graphs and Cost-of-Goods- Sold Information". In summary, Mr. Sykes stated that the cost of additional warehouse and administrative space can be reasonably justified because of the potential for growth over the next ten-to-twenty years, and that funds can be saved through efficient and effective inventory management practices. m) The New Hanover County Board of Commissioners recently voted unanimously to pay law enforcement officers to safeguard the elementary schools from Feb. 1 to June 15. Mr. Wolfe made the motion to make a one-time additional $100k profit distribution with a non-binding request that these funds be used by the local government beneficiary entities to help fund law enforcement protection in New Hanover County public schools. Mr. Matthews seconded, and all approved. VIII. 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 4 minutes in Closed Session, Open Session began again. Mr. Everett made the motion to restart the Open Session; Mr. Martenis seconded, all approved. IX. Return to Open Session It was stated that the Closed Session resulted in no actions taken. X. Adjournment Mr. Matthews made the motion to adjourn the meeting; Mr. Martenis seconded, and all approved. Minutes submitted by: d . Carol E. Martin,`Secretary Minutes approved b ° r "l pp y�. ' �- Date: Cedric Dickerson, Chair 5