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HomeMy WebLinkAboutJune 17 2014 Regular Minutes New Hanover C Board Meeting Minutes June 17, 2014 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 June 17, 2014 in the General Office at 523 S. 17th Street, Wilmington, NC. IL Roll call Ms. Clark, Acting Board Secretary conducted a roll call. The following Members rs f 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: Dan Sykes, Chief Executive Officer Gary Cain, Acting Assistant Chief Executive Officer Kathy Clark, Acting Board Secretary Charles Hill, Acting Retail & LBD Operations Manager Sharon Kelly, ABC Store 4108 Assistant Manager Wanda Copley, Legal Counsel Ashley Withers, Star News Reporter 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 f interest and rrnces of conflicts. Does any member have any known conflict f interest or aearnce ,f conflict with respect to any matters coning before the Board today? f ,please ieni� 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 Mr. Dickerson presented the minutes from the last Regular Meeting of May 20, 2014. Mr. Martenis made the motion to approve the minutes as written, Mr. Wolfe seconded, all approved. 1 V. Approval of proposed agenda Two changes requested by Mr. Wolfe and Mr. Sykes, addition of item 2.e. NABCA Update and item 3.j. Liquor Sales by Distilleries. Motion to adopt the prepared agenda as written, with the two additions was made by Mr. Martenis, seconded by Mr. Wolfe, all approved. VI. Service A wards & Other Recognitions The Board recognized Ms. Sharon Kelly with five years of dedicated service. Ms. Kelly is currently the Assistant Manager at the Market Street Store (old Bob Evans), which has a very high sales volume. VII. Administrative Reports a) ABC Law Enforcement Officer's Unit Monthly (ALE) Report for May was reviewed by Mr. Sykes. Officers performed the following activities for the month of May, 2014: *571 Store Visits *304 Bank Deposits *15 Change Deposits *42 Charges Video Investigations *25 Arrests *8 Searches *Cited 16 "Underage Possession" ABC Law Violations *Cited 9 "Unauthorized Possession" ABC Law Violation *Cited 9 "Other Alcohol" ABC Law Violations Cited 14 "Traffic" Other Offense *Cited 1 "Criminal" Other Offenses *Assisted 21 ABC Law Agencies *Assisted 9 Controlled Substance Agencies *Assisted 4 "Other" Agencies *Performed 59 Business Inspections *Performed 42 Business Compliance Checks *Performed 2 Training Hours b) Mr. Sykes presented the Financial Statements for May 2014. He reported that the Statements of New Position showed that cash was down $704.4k compared to last year. This downward change was due to ABC Complex building construction and related costs. Mr. Sykes reported that for the month, the Actual-to-Budget comparison showed Gross Sales were less than projected by $42.5k. However, the Actual-to-Budget comparison for year-to-date showed that the "Change in Net Position before Profit Distributions" figure was better than budget by $93 5lc. c) Mr. Sykes presented the Financial Projections thru Year-End (as of 6/11/2014) for discussion purposes. Based on the current year end projections it appears that the "Net Income before Profit Distributions" figure will be about$832k better than budget. Additional profit distributions were on the agenda for discussion near the end of the meeting. 2 d) In regards to the I'M/Castle Street Project., Mr. Sykes stated that a progress meeting had recently been set-up with the Building Committee to meet with LS 3 P in their offices at noon on June 19th. e) Mr. Cain presented a brief summary of the New ABC Complex progress for the past 30 days (as of 6/11/14). • Bordeaux Construction reports that the project is 66% complete (as of 5/20/2014). • Taylor Simms (LS3P) reports that the "project is on schedule/budget at this time". • TJ Land (Construction Manager) reports that change orders remain within budget. • Owner supplied Projects: a. Low Voltage Cabling is being installed by Peerless Communications. b. The Security and Surveillance systems are being installed by Hooks Alarm Co. f) Mr. Wolfe gave an update on the National Alcohol Beverage Control Association (NABCA) conference. The focus was on customer service and privatization in the state of Washington. This has resulted in liquor prices to increase and a reduction of variety of products on their shelves. Mr. Wolfe noted that many North Carolina Boards have been sending their General Managers to the NABCA meetings. He explained that we can, as a local board,join the NABCA for $500, which would allow staff to attend these meetings. Mr. Wolfe made a motion to join the NABCA, seconded by Mr. Everett, all approved. g) Mr. Sykes provided a Proposed Recurring Board Meeting Activities document for the upcoming 12 months. No changes or action were taken. h) Mr. Sykes presented the Public Officials Management& Employment Practice Liability Insurance renews July 24, 2014 for one year for the total cost of$7,011. This is an increase of$786 over the current year's policy. Mr. Sykes advised the board that the renewal has been reviewed by Ms. Stancil, our Risk Management advisor, who has recommended renewing with Darwin National Assurance Company. Motion was made by Mr. Martenis to authorize the Finance Officer to initiate the appropriate paperwork to renew Public Officials Management ent &Employment Practice Liability Insurance policies with Darwin National Assurance Company (though HPB Insurance Group) effective 7/14/2014 for a total amount of$7,011. Seconded by Mr. Matthews, all approved. i) Mr. Sykes presented the renewal of the Legal Service contract with the County's Legal Office for the next year effective July 1, 2014 for $24,000 ($2,000 monthly). Motion was made by Mr. Martenis to authorize Chair Vice Chair to renew the Legal Services contract with the County's Legal office for the year July 1, 2014 through June 30, 2015 for $24,000. Seconded by Mr. Everett, all approved. j) Mr. Sykes presented the renewal of Risk Management Services with the County's Risk Management Office. This would be an advisory fee of 3.00% of the total annual premiums (just under$100,000); therefore, the fee is about $3,000 annually. Motion was 3 made by Mr. Martenis to authorize Chair dice Chair to renew the Risk Management Services contract with the County's Risk Management Office for the year July 1, 2014 through June 30, 2015 for 3.00% of total premiums. Seconded by Mr. Matthews, all approved. k) Mr. Sykes presented a Contract/Lease for communication services and equipment for the new ABC Complex. Mr. Cain bid-out the project and received competitive quotes. Earth Link Business provided the best quote at $686 monthly plus applicable 911 charges, sales taxes and surcharges. Motion by Mr. Martenis to authorize Chair Nice Chair to execute a three—year contract/lease with Earth Link Business for the ABC Complex communications services. Seconded by Mr. Everett, all approved. 1) Mr. Sykes presented a bid for the Carton Flow System for the New ABC Complex for the LBD portion which requires shelving (and related equipment to optimize the time required to fill orders). This bid was put out by Mr. Cain; the lowest bidder was Carolina Material Handling, Inc. of Greensboro,NC for$31,919 including all material, labor, freight and sales taxes. Mr. Cain informed the board that this recommendation is not just based on pricing. It was also based on referrals. Mr. Cain explained to the Board that he has visited a local wine distributor that has this type of system in place now. He feels that Carolina Material Handling, Inc. will provide an excellent system. Motion was made by Mr. Martenis to authorize the Chair vice Chair to execute a contract with Carolina Material Handling, Inc. to furnish material, labor, equipment, including estimated freight and sales taxes to install the LBD Carton Flow System for an amount not to exceed $35,000. Seconded by Mr. Everett, all approved. m) Mr. Sykes proposed several personnel actions. Updating of job titles (Classifications) and job descriptions effective immediately. These changes consist of the following: a. Assistant LBD Manager to Assistant LBD Store Manager b. Assistant Manager to Assistant.Retail Store Manager c. Accounting, Finance & Administrative Manager to Finance & Administrative Manager d. Accounting & Administrative Assistant to Finance Specialist e. Store Manager to Retail Store Manager Mr. Sykes proposed additional changes with the Vacation Time and Holiday Day pay as follows: a. Adding of a paid holiday for Memorial Day. This would still be a work day for employees. However, they would receive holiday pay based on their employment status of full-time or part-time. Full-time employees would receive eight hours of holiday pay. Part-time employees would receive a pro-rated share of holiday hours based on their budgeted work percentage. b. Vacation Leave proposed changes are as follows: • Full-time employees with 3 years but less than 8 years would accrue at a rate of 1 days per year. • Full-time employees with 8 years but less than 15 years would accrue at a rate of 1 day per year. 4 • Pull-time employees with 15 years or more would accrue at a rate of 20 days per year. • Vacation Pay—Sell Back: Employees eligible to earn in excess of 80 vacation hours annually may sell up to 40 hours of vacation time back to the Board under certain conditions: Sell back transactions are limited to one per employee per year for a maximum of 40 hours, Vacation hours must be earned and available before they can be sold-back. Vacation buy-back pay will be disbursed during the normal pay cycle; advance notice of at least two full weeks to payroll administration is required. The changes to the Holiday Pay and Vacation Leave would go into effect with the beginning of the payroll year at January 1, 2015. Mr. Sykes proposed the addition of increasing the full-time employees from 43 to 45. This will allow for the increase of one person to Purchasing and Logistics Operations and will increase Retail & LBD Operations by one person. This increase would take effect on July 6, 2014 to coincide with the beginning of the payroll period. Mr. Sykes proposed a change in the Pay Plan which was recommended by the Evergreen Solutions, LLC Classification and Compensation study dated March 28, 2014, however, a few of the Board Members requested further review of this item. Therefore, the Pay Plan will be discussed at the next regular Board meeting. Motion was made by Mr. Martenis to accept the revised list of job titles effective immediately, accept revised Vacation and Holiday policies effective January 1, 2015, also authorize the increase of full-time head count from 43 to 45 effective on July 6, 2014. Seconded by Mr. Wolfe, all approved. n) Mr. Sykes presented the Audit Engagement Letter which details the responsibilities of both parties. The executed contract with Koonce, Wooten&Haywood, LLP, Certified Public Accountants, gave the Chair Vice Chair the appropriate authorization to execute associated documents. No vote was necessary. o) Mr. Sykes presented the proposed legislation in the Senate that would allow distilleries to sell liquor at retail. Brief discussion was made among the Board Members; all expressed opposition to any sales of liquor by distilleries. With all Board Members being of the same opinion, Mr. Sykes informed them that Jon Can had recommended that a letter be sent to Senator Rick Gunn, expressing their opposition of the sales of liquor by distilleries. All Board Members signed the letter which will be forwarded to Senator Rick Gunn. p) After the Board's careful review and discussion of the projected additional profits for the year ended June 30, 2014, Mr. Sykes proposed an additional profit distribution to the 5 Board's beneficiaries in the amount of$400,000. Motion by Mr. Wolfe to compute and distribute an additional profit distribution to the Board's beneficiaries in the total amount of$400,000 prior to June 30, 2014. Seconded by Mr. Everett, all approved. q) Mr. Wolfe informed the Board that the County Commissioners approved June 16, 2014 the extension of Mr, Matthew's appointment to September 30, 2014. e also informed the Board that the Commissioners appointed Mr. William A. Kopp as a Board member with an October 1, 2014 effective date. VIII. Adjournment Mr. Martenis made the motion t adjourn the meeting; Mr. Everett seconded, all approved. Minutes submitted by . Kat y lark, Acting Board Secretary Minutes s roved by: - Date: 7 LC* 19 Cedric Dickerson, Chair 6