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Home My WebLink AboutABC Minutes September 17 2013 Regular Minutes New Hanover County ABC Board Meeting Minutes September 17, 2013 1. Call to order Vice Chairman Robert W. Martenis called to order the regular meeting of the New Hanover County Alcoholic Beverage Control Board at 8:30am on September 17, 2013 in the General Office at 523 S. 17`x` Street,Wilmington, NC. II. Roll call Carol Martin, Board Secretary conducted a roll call. The following Members of the Board were rep sent: Robert W. Martens, Vice Chairman Thomas Wolfe, Member Augustus C. Everett, Jr., Member David Matthews,Member Others in attendance were: Dan Sykes, Chief Executive Officer Gary Cain, Retail and LBD Operations Manager Carol Martin, Board Secretary Avril Pinder, Ex-Officio Member Wanda Copley, Legal Counsel Danny Meeks, Purchasing & Logistics Manager Colonel Arch Jones, NHC Sheriff's Department Det. Chris Wright, NHC Sheriff's Department Det. Reid Schronce, NHC Sheriff's Department Det. Joe Jewell, NHC Sheriff's Department Steve "Red Dog" Parker, Recent ABC Retiree David Boyce, Partner with Koonce,Wooten & Haywood, LLP (CPA's) Charles H. Rivenbark, Jr., City of Wilmington Council Member Absent with Notice: Cedric Dickerson, Chairman (Mr. Dickerson availed himself to most of the meeting via speaker phone] III. Call meeting to order Mr. Martenis 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. 1 IV. Approval of minutes from last meeting Mr. Martenis presented the minutes from the last Regular Meeting of July 16, 2013. Mr. Everett made the motion to approve the minutes as written, Mr. Wolfe seconded, all approved. Mr. Martenis presented the minutes from the Closed Session Meeting of July 16, 2013. Mr. Everett made the motion to approve the minutes as written, Mr. Matthews seconded, all approved. V. Approval of proposed agenda No proposed changes were made to the prepared agenda as written. Ms. Copley stated that adoption is not necessary regarding agenda acceptance. VI. Service Awards & Other Recognitions Col. Jones introduced Det. Schronce who will retire from the NHC Sheriff's Department at the end of the month, and will fill in for the Board as needed. The Board thanked Det. Schronce for his years of service as an ABC law enforcement officer and presented him with a certificate. Col. Jones introduced Mr. Wright as the Board's newest ABC officer and stated that he had been on their force for over 21 years. The Board recognized Mr. Parker's recent retirement and many years of Board service and presented him with an inscribed wooden plaque. Mr. Rivenbark attended to share Mr. Parker's honor by the Board. VII. New business a) ABC Law Enforcement Officer's Unit Monthly (ALE) Report for both July and August was presented by Col. Jones. Officers performed the following activities for the months of July and August, 2013 combined: *1,270 Store Visits *640 Bank Deposits 'r 12 Change Deposits *2 Consent Search *4 Video Investigations *55 Charges *11 Arrests *Cited 3 "Sell to Underage"ABC Law Violations *Cited 1 "Sell to Intoxicated" ABC Law Violation *Cited 36 "Underage Possession" ABC Law Violations *Cited 19 "Unauthorized Possession" ABC Law Violations *Cited 53 "Other Alcohol" ABC Law Violations *Cited 17 "Manufacture/Sell/Deliver/Trafficking" Controlled-Substance Violations *Cited 10 "Possession" Controlled-Substance Violations *Cited 12 "Paraphernalia" Controlled-Substance Violations *Cited 10 "Other" Controlled-Substance Violations *Cited 2 "DWI& Implied" Other Offenses *Cited 41 "Traffic" Other Offense *Cited 52 "Criminal" Other Offenses 2 *Cited 10 "Weapons/Assaults" Other Offenses *Performed 1 "Other Presentation" Alcohol Education 'Assisted 7 ABC Law Agencies 'Assisted 8 Controlled Substance Agencies *Assisted 8 "Other" Agency 'Performed 33 Business Inspections *Submitted 1 Violation *Performed 21 Business Compliance Checks *Completed 40 Training Hours Col. Jones stated that he is allowing some of the officers assigned to the Downtown Task Force to dress in plain clothes in order to enhance their efforts to avert crime and underage drinking. Col. Jones thanked the Board for helping to fund a four-wheel drive 2014 Chevrolet Tahoe for an ABC officer to drive. The $25k the Board contributed was budgeted and approved for this fiscal year. b) The Board's Audit Manager, Mr. Boyce presented each Board member with a bound copy of the FY2012-13 audited financial report, as well at the SAS114-Report to Governing Board. His CPA firm, Koonce, Wooten &Haywood, LLP expressed an unqualified opinion on our financial statements, meaning that in all material respects they are presented fairly. Mr. Boyce stated that the Board can rely on its internal reports and controls. Mr. Wolfe made the motion to approve the audited financial report for the fiscal year ended June 30, 2013 as presented. Mr. Everett seconded and all approved. Mr. Wolfe then made the motion to authorize the Chair or Vice Chair to engage Koonce, Wooten & Haywood, LLP to perform the FY2013-14 audit for a fee not to exceed $15k. Mr. Matthews seconded the motion, and all approved. c) Mr. Sykes briefly apprised the Board that based on his ten year projections, the Board may need to borrow additional cash after September, 2014. He told the Board that he can better project cash flows once the bids for the ABC Complex have been opened and the planning is underway for the 17`h Street location renovations. d) Mr. Sykes and Mr. Meeks updated the Board on the current need for the budgeted FY2013- 14 new delivery vehicle. When the existing large delivery truck is out of order, there is no suitable replacement readily available. To assure that State purchasing laws are being abided, Mr. Sykes would like for the County Purchasing office to put the large truck out for bid. Ms. Pinder stated that the truck could indeed be bundled with the County's large equipment bids. Mr. Matthews asked Mr. Sykes to include a quote for a hybrid comparable vehicle for the Board to consider, much like NYC is implementing to transport soft drinks. Mr. Wolfe made the motion to authorize the Chair/Vice Chair to purchase a medium- commercial delivery vehicle in an amount not to exceed $110,000. Mr. Matthews seconded the motion and all approved. e) Mr. Sykes presented the Board with a"Comparative Common Size Analysis for the Year 6130113". It compares the Board's FY2013 audited figures to those of three (3) comparable size ABC boards: Greensboro Municipal, Triad Municipal and Cumberland 3 County. Those boards' audited 6/30/12 figures were compared to our Board's 6/30/13 figures to show that in five (5) key areas, ours out performs. These pertinent benchmarks were: a) lower cost of sales, b) lower operating expenses, c) higher operating income, d) greater total distributions, and e) greater net profit retained by the Board. Mr. Sykes advised the Board that he would update this analysis as soon as the audited 6/30/13 figures for the three (3)boards are known and present that analysis to the Board. f) Mr. Sykes updated the Board on the Employee Classification and Co,aymnsation Study. He informed the Board that of the nine-plus service proposals received through the County personnel office, four were seriously considered. Ms. Pinder stated that Evergreen Solutions was awarded the contract. Mr. Sykes expects the project to be completed by the end of February for the Board's review in March. This coincides with the FY2014-15 budgeting process, for any wages, classifications or benefits needing adjustment. g) Mr. Sykes presented the Board with Financial Statements for August, 2013. He reported that for the month, the Actual-to-Budget comparison showed that Income from Operations exceeded budget by 146k (30.77%), and that for the year, Net Income before Distributions exceeded budget by $181k(19.350). Mr. Sykes noted that year-to-date, Cost of Sales are less than 50%! h) Mr. Sykes provided each Board member with a Performance Appraisal Form for the Board's ABC position, Chief Executive Officer. Mr. Dickerson and Mr. Everett requested their completion by October 10`h so that they could compile the results in preparation for the CEO performance evaluation at the next regular Board meeting scheduled for October 15, 2013. i) Mr. Sykes scheduled a Special Board Meeting for 10am, Thursday, September 26, 2013 in the administration Board Room. The purpose of this meeting will be to award the construction bid contract for the new ABC Complex. The actual bid opening is scheduled for 3:OOpm September 19, 2013 at the County Government Center. VIII. Ad ournrnent Mr. Wolfe made the motion to adjourn the meeting; Mr. Matthews seconded, all approved. Minutes submitted by: U Carol E. Martin, Secretary p Minutes approved by: Date: ' 2--3 Robert W. Martenis, ice Chair 4