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Home My WebLink AboutABC Board minutes 062118 Orange County ABC Board Public Hearing Open Meeting Board Minutes Thursday June 21, 2018 The Orange County ABC Board held its regular meeting on Thursday,Jane 21,2018 at 8:30 AM at the ABC Board Administrative Office 601 Valley Forge Road Hillsborough,N.C.These are the minutes of the Open Session. Present: Greg Jarvies,Chairman Keith Bagby,Vice Chairman Jane Cousins,Member Mike Lassiter,Member Jamezetta Bedford Member Tony DuBois,General Manager Ron McCoy,Finance Officer Angela Willoughby,Asst.General Manager Angel Neighbours,Board Secretary Absent: Chris WilleMBeeme[,Hadlar&Willett,P.A., Renee Price,BOCC Liaison Visitors: 8:26am Mr.Jarvies opened the Public Hearing for anyone who wished to be heard concerning the 201 MO19 Budget. 8'32am Mr.Jarvies closed the Public Hearing. Call to order: at 8:32am a quorum was present and Mr. Jarvies, Board Chairman, called the regularly scheduled Board Meeting to Order. Mr.Jarvies read the Mission Statement:The Mission of the Orange County ABC Board and our employees is to serve our locality responsibly by controlling the sale of spirituous liquor,returning profits to Law enforcement, Alcohol Education, and the County Fund while providing excellent service in customer friendly,modern and efficient stares. Mr. Jarvies read the Conflict of Interest Statement. The question was asked: if anyone has a conflict of interest with respect to any matters on the agenda?All prevent say no. 1 Approval of the Open meeting Agenda: Mr. Bagby made a motion to approve the Open meeting agenda,Ms.Bedford seconded the modon and the vole carried 2 Meeting Minutes:The Open and Closed Meeting Minutes for May 22,2018 were presented.Discussion was held. Ms Bedford made a motion to accept the open and closed session minutes,Ms Cousins seconded the motion and the vote carried 3 Consent Agenda: May 2018 a.Financial Reports: i.Comparative Statement of Net Assets ii.Comparative Revenue and Expenses for May 2018 and May 2017 iii Actual-to-Budget May 2018 It.May 2018 and Year-to-Date Retail Sales c.Statewide Sales Report Discussion was held.Ms Cousins made a motion to approve the May 2018 Consent Agenda,Mr. Bagby seconded the motion and the vote carried Open Session 6/21/2018 Page 1 of 2 pages Orange County ABC Board Public Hearing Open Meeting Board Mjnutes Thursday June 21, 2018 4. Management Updates: 1.Law Enforcement Reports:This report is required by the NCABC 2.ABC Conference: The ABC Conference is August 5-8.Keith Bagby and Tony DuBios will be attending this year. 3.Willow Creek/Carrboro/LBD:The current construction timeline for finishing the Carrboro remodel is delayed due to the faewall redesign and materials lead time.The expected project completion date has moved to late September.Updated pictures were presented at the meeting. 4.Oakdale: We have submitted intimal designs for this project to the town to start the approval process.Projected timeline to begin this project is August 2018. 5. Year End Budget Amendment:Discussion was held Mr.Babgv made a motion to approve the Fiscal Year 20172018 Budget amendment. (See attached),Mr.Lassiter seconded the motion and the vote carried 6 Approval 2018/20/9 Budget. The proposed budget was presented to the Board.Discussion was held Ms.Bedford made a motion to approve the 20182019 f8cai year budget,Ms. Cousins seconded the motion and the vote canted (See aaached) 7. Compensation Study Follow-up: Discussion was held and additional information will be brought back to the August meeting. 8 Board Comments: The Orange County Commissioners appointed Jane Cousins to a second three- year term,Patrick Burns as a new board member and Keith Bagby as Chairman. Closed session in accordance with NCGS 143-318-11(s)Personnel Matters: 9:48am Mr.Bagby made notation logo info closedsession,Ms.Bedfordsecanded the modon andthe vote carried 10:55am Mr. Bagby made a motion to go back to open session,Ms. Bedford seconded the motion and the vote carried At 11:00amMs.Cousins made a motion to odjoum,Ms.Bedford seconded the motion and the vote carried Meeting adjourned. `A I = Chair's Signature and Delta Board S"re 's Signorme and Date Open Session 6/21/2018 Page 2 of 2 pages BUDGET AMENDMENT ORANGE COUNTY ABC BOARD BE IT ORDAINED by the Orange County ABC Board that the following amendment be made to the annual budget ordinance for the fiscal year ending June 30, 2018. Section 1. To adjust liquor sales, related taxes and cost of goods expenses per revised year- end projections. Liquor sales (revenue) 27,738 LBD sales 174,455 Wine sales 4,393 Other Income 610 Taxes on liquor sales 70,325 Cost of Sales (liquor) 15,939 Working capital retained 1 222,525 222,525 Section 2. To revise funds appropriated for payroll-related expenses to reflect increases and decreases per year-end projections. Salaries and Wages 22,702 Payroll taxes 6,682 Retirement 16,739 Group Health insurance 38,417 Health reimbursement/FLEX 2,443 401k 2,170 Payroll processing fees 753 Working capital retained 3 64,761 64,761 Section 3. To revise funds appropriated for operational expenses to reflect increases and decreases per year-end projections. Board Member/Meeting expenses 24 Cash Short (Over) 293 Rent 10,495 Depreciation 20,974 Repairs&Maintenance (Bldgs) 8,460 Repairs& Maintenance(Equipment) 2,876 Utilities 5,158 Business Insurance 4,719 Store Supplies& Bags 28,046 Employee Travel 688 Office Supplies 187 Maintenance Services 1,645 Service Agreements 18,528 Postage 409 Professional Fees 11,454 Professional fees(audit/legal) 6,360 Dues and Subscriptions 53 Credit Card Processing 1,182 Training and Education 14,835 Security 421 Vehicle expenses 4,410 Uniforms 652 Debt service(Interest) 178 Misc./Contingencies 453 Working capital retained 540 71,520 71,520 Section 4. To adjust capital outlay to reflect increases and decreases per year-end projections. Store Improvements(Store#2, Ram's Plaza) 546 Remodel (Store#7, Carrboro) 594,193 Design/Engineering (Store#10, Hillsborough) 18,436 NAV/POS system 22,697 Warehouse forklift 4,247 Loan Proceeds (Store#7, not used) 850,000 Debt Service(principal) 44 Working capital retained 263.813 876,988 876,988 Section 5. Copies of this budget amendment shall be furnished to the Clerk of the County of Orange County,the NC ABC Commission, and to the Budget Officer and the Finance Officer for their direction. Adopted this 21st day of June, 2018 Gregg Jarvis , Orange County ABC Chairman COUNTY OF ORANGE ALCOHOLIC BEVERAGE CONTROL BOARD 601 VALLEY FORGE RO HILLSBOROUGH,NORTH CAROLINA 27278 919-732-3432 FAX: 919-732-5829 ucab0aamindsor ne com GREGG JARVIES,Chair Board Members XEITH BAGBY,Vice Chair LANE COUSINS TONY DUBOIS,General Manage MIKE LASSITER JAMEZETTA BEDFORD Orange County ABC Board Budget for FY2018-19 June 22, 2018 Budget Message The Annual Budget for the fiscal year July 1,2018 through June 30, 2019 (FY 19) has been prepared in accordance to North Carolina General Statutes and in compliance with the standards offinancial operations of local boards.The ABC board determines through adoption of an annual balanced budget the best way to use our resources to maintain a high level of customer service in customer friendly, modern, and efficient stores.This document outlines the ways that we will appropriately spend revenue to accomplish those goals.The primary drivers in the presentation of this budget are the cooperating needs to provide an environment where customers feel comfortable shopping while creating maximum return and to fulfill our statutory obligations. The items that follow reflect the board's goals and commitment to running an outstanding operation focused on the customer. Key Assumptions • This budget is predicated on projected gross revenue of$20,780,685 and operating costs including payroll are projected at$3,679,530 along with distributions of$939,000. • Sales growth is projected at 3.25%. • Distributions to Law Enforcement agencies are required to be a minimum of 5%or $50,000est.This budget of$160,000 for alcohol law enforcement in Orange County and the towns of Carrboro, Chapel Hill and Hillsborough remain well over the statutory requirements. • Alcohol Education funds are statutorily set at 7%or$70,000est. and are budgeted at $244,000 staying well above statutory requirements. • Distributions to the Orange County General Fund will be$535,000 despite a lower projected net income for 2018/19 primarily due to the implementation of the living wage, corresponding salary scale adjustments and increased expenses related to store relocation. Highlights and Key elements of the budget Include: Payroll Continued support of the living wage continues to increase payroll and will decrease profitability for years to come as raises compound the cost of the workforce. Capital Improvements,Store Improvements and Building Projects We budgeted 20K for LED lighting upgrades at 5 locations.We have included $400,000 in the budget for remodeling the store in Carrboro and$1,400,000 for construction of the new store relocating in Hillsborough. We will also pay off the property of$440K for the Oakdale property in Hillsborough. Rent and Lease Payments Leasing the temporary location in Carrboro will be$18,000. Training The training budget of$25,000 reflects our commitment to training employees and providing them with professional development opportunities. We maintain our relationship with CAI in Raleigh and Greensboro as a member and will continue to partner with them to provide training. Several core areas will be covered to improve customer service and management skills with the continuing goal to create a comfortable customer environment and improve overall operations and profitability. Staffing Summary The Board maintains an employee base of 47 Employees with 33 Full-Time and 14 Part-Time and do not expect this number to fluctuate.We will maintain enough staff to keep customer service a high priority by maintaining consistent staffing levels. Changes to this budget after adoption will be accompanied by a budget amendment with changes in excess of$5,000 requiring approval by the board and changes under$5,000 requiring approval by both the Budget Officer and Finance Officer.This budget shows the commitment of the Orange County ABC Board to go over and above statutorily required distributions to Alcohol Education, Law Enforcement while increasing the distribution to the Orange County General fund by 25% despite a projected lower net income in 2017/18.This budget reflects the board's commitment to improving store infrastructure and increasing profitability by investing in the employees who generate revenue through their hard work and dedication to outstanding Customer Service. 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