HomeMy WebLinkAboutABC Board minutes 082019 Orange County ABC Board
Open Meeting Board Minutes
Tuesday August 20,2019
The Orange County ABC Board held its regular meeting on Tuesday, August 20, 2019 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: Keith Bagby,Chairman Patrick Bums,Vice Chairman
Jane Cousins,Member Elizabeth Carter,Member
Tony DuBois,General Manager Angela Willoughby,Asst.General Manager
Ron McCoy,Finance Officer Angel Neighbours,Board Secretary
Renee Price,BOCC Liaison Chris Willett,Beemer,Nadler&Willett,P.A.
Absent: Mike Lassiter,Member
Visitors: Art Winstead and Mason Barringer,Auditors DMJ&Company
Call to order: at 8:30am a quorum was present and Mr. Bagby, Board Chairman, called the
regularly scheduled Board Meeting to Order.
Mr.Begby 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 stores. -,
Mr. Bagby reed the Conflict of Interest Statement. The question was asked: does anyone has a
conflict of interest with respect to any matters on the agenda?AB present said nay.
v
1 Approval of the Open meeting Agenda: Mr. Bums made a motion to approve the Open meeting
agenda,Ms. Carter seconded the motion and the vote carried
2 Ms. Jane Cousins nominated Mr. Patrick Burns as Vice Chairman,Ms. Elizabeth Carter seconded
the nomination and the vote carried
3 Meeting Minutes:The Open Meeting Minutes for June 17,2019 were presented.Discussion was held.
Ms.Cousins made a motion to approve the open session minutes,Mr.Bums seconded the motion and
the vote carried. The Closed Meeting Minutes for June 17,2019 were presented.Mr. Bums made a
motion to approve the closed session minutes,Ms.Carter seconded the motion and the rote carried
4 Audited Financial Statement for Fiscal year 2019:Art Winstead and Mason Barringer of DMJ&Co.
presented the audited financial statements for fiscal year ending June 30, 2019. They also addressed
questions from the Board. Ms. Cousins made a motion to approve the Audited Financial Statements
for Fiscal Year 2019 with a minor correction to the wording of Education and Rehabilitation Grants,
Mr.Burns seconded the motion and the vole carried
Mr.Bums made a motion to move S519,916 in revenues(change in ndposidon)to Capital Bank,Ms.
Carter seconded the motion and the vote carded
Open Session 8/20/2019 Page 1 of 3 pages
Orange County ABC Board
Open Meeting Board Minutes
Tuesday August 20,2019
5 Consent Agenda:June 2019
a. Financial Reports:
i.Comparative Statement of Net Assets
ii.Comparative Revenue and Expenses for Jane 2019 and Jane 2018
iii Acmal-to-Budget June 2019
b.June 2019 and Year-to-Date Retail Sales
c.Statewide Sales Report
Discussion was held.Ms.Cartermade a motionW approve the June 2019 ConsentAgenda,Mr.Bums
seconded the motion and the vote carried
6. Consent Agenda:July 2019
a.Financial Reports:
i.Comparative Statement of Net Assets
ii.Comparative Revenue and Expenses for July 2019 and July 2018
iii Actual-to-Budget July 2019
b.July 2019 and Year-to-Date Retail Sales
c.Statewide Sales Report
Discussion was held.Mr.Burns made a motion to approve the July 2019 ConsentAgenda,Ms.Carter
seconded the motion and the vote carried
7.Management Updates:
L Law Enforcement Reports:This report is required by the NCABC.
2. House Bill Update: Several Bills passed and will go into effect as of September 1, 2019 (see
attached).
3.Recurring Topics:An updated list of recurring Board topics and dates were presented.
4.Annual Meeting: Keith Bagby,Chairman,Tony DuBios General Manager, Sonya Pennington,
Store Manager and Kevin Lane,Assistant Buyer attended the annual conference in Pinehurst,NC.
5.Oakdale Project Update: The project is moving forward and still has a completion date tofinish
near the end of October.Updated photos were presented at the meeting.
8. Budget Amendment: Staff is recommending a budget amendment for funds to purchase and install a new
security system at our Store#4location(Mebane).The proposed amendment would increase capital expenses
for FY 2020 by$9130 and decrease capital retained by the same mutual.Mr.Burns made motion to approve
the budget amendment in the amount of$8130,Ms. Cousins seconded the motion at We vote carried
9. Oakdale Project update: Work on the new Hillsborough Store 810 at Oakdale Drive is underway. An
updated Project Budget will be presented monthly at the bond meeting throughout the project
10. Property Sales Approval:The Board owns real property at 112 John Earl Street,Hillsborough NC 27278.
A resolution was passed on June 17,2019 to sell the property.A negotiated offer was accepted on August 8,
2019,subject to an upset bid process.The upset bid notice was posted in the News and Observer on August
9,2019.The 10-day period expired on August 19,2019 and we have received no upset bids.Discussion was
held on accepting the offer of$450,000 for the property at 112 John Earl Street,Hillsborough NC.Ms.Carter
made a motion to accept$I50,000forthe propero at 112John BarlSbee4 Mr.Burns secondedthemotion
and the vote carried
Open Session 8/20/2019 Page 2 of 3 pages
Orange County ABC Board
Open Meeting Board Minutes
Tuesday August 20, 2019
11.Board Comments:
• Mr.Burns stated he is no longer contracting services with Orange Partnership.
• Mr.Bagby attended the Drug Treatment Court graduation on August 19,2019.
10:31 am Ms. Cousins made a motion to adjourn,Ms. Carter seconded the motion and the vote carried.
Meeting adjourned. /
_ 9113119 4 � />9
Chair's Signature a e —Board Se retaty's Signature and Date
Open Session 8/20/2019 Page 3 of 3 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, 2020.
Section 1. To increase outlay for capital expenditures to include the purchase and installation
of a new security system at Store#4(Mebane)to include a new 16 channel network video
recorder, 12 TB hard drive, monitor and 12 high definition cameras.
increase decrease
Security system
(cameras, recorder, monitor) 8,130
Working capital retained 8,130
Section 2. 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 20th day of August, 2019
(/z/lam
Keith Bagby,
Orange County ABC Chairman
ABC Law Changes
Section 1(a)— distillery permittees are eligible for permits for on-premises sales,
including mixed beverages, effective September 1, 2019.
Section 3(a) - This section has two main parts. GS 18B-800(cl) provides that ABC
stores shall allow the purchase of individual bottles of liquor on the special items list
and may sell in store any bottles it receives from a special item case in excess of what
is purchased by the customer. GS 18B-800(c2) requires that an ABC board shall fulfill
an order by a mixed beverages permittee for individual bottles or cases of liquor by an
eligible distillery (craft distillery)that are listed as regular code items; if the order
cannot be fulfilled because the Board does not have the item in stock or the order
cannot otherwise be fulfilled within the time period requested by the permittee, the
local board shall notify the ABC Commission within 48 hours of the request for the
order and request authorization for direct shipment; the Commission shall then
determine if the distillery wishes to directly ship the product order to the local board,
and if so shall authorize that direct shipment so the local board can promptly fulfill the
permittee's order. Both parts are effective September 1, 2019.
Section 3(b) — requires the ABC Commission to develop an internet-based system to
facilitate the sale and purchase of regular approved list items and special order list
items of liquor by and among local ABC Boards. This section is expected to help local
boards meet their obligations to sell a single bottle from a special item case and to
meet the craft distillery needs of permittees under the new sales requirements above.
Effective September 1, 2019.
Section 4(a)—allows a craft distillery to sell an unlimited amount of its product for off-
premises consumption to visitors who tour the distillery. Effective September 1, 2019.
Section 5(a) —changes the purchase-transportation law statute to allow any employee
of an ABC Board to issue the permit if authorized by the Chairman of the local board,
and allows the permit to be issued by the owner or designated employee of a distillery
authorized to sell its product for off-premises consumption to visitors who tour the
distillery. Effective September 1, 2019.
Section 6(a)—authorizes local boards to allow in-store liquor tastings, subject to
numerous additional limitations which begin on page 6. Effective September 1, 2019.
Section 17(a) -- requires a local board to accept electronic payment for any liquor
purchased by a permittee. A local board may not charge a fee for electronic
payment. Electronic payment means by debit card or by electronic funds transfer as
defined in GS 105-228.90, but does not include payment by charge card or credit
card. Effective October 1, 2019. This does NOT mean that you cannot accept a credit
card or charge card —you could still accept payment from a permittee by credit card or
charge card, and some boards view this as good customer service. This new law simply
mandates that you must accept payment by debit card or electronic fund transfer. GS
105-228.90 defines electronic funds transfer as follows: "A transfer of funds initiated
by using an electronic terminal, a telephone, a computer, or magnetic tape to instruct
or authorize a financial institution or its agent to credit or debit an account."
Section 23(a)—Allows a mixed beverages permittee, or employee of the permittee, to
purchase and transport any amount of liquor for use by the permittee without having
to obtain a purchase-transportation permit. Allows a local board employee to
transport liquor to a permittee without obtaining a purchase-transportation
permit. Effective September 1, 2019.
Section 24(a)— Requires the ABC Commission to submit a written report to the Chairs
of the Joint Legislative Oversight Committee on Justice and Public Safety on the
progress made in bidding and selecting an independent contractor for the receipt,
storage and distribution of spirituous liquor at and from the State warehouse.
Section 25(a)—allows a local board to provide delivery of liquor to a mixed beverages
permittee, to use its employees or an independent contractor to do so, and to charge a
fee. Allows a permittee to contract with an independent contractor to provide
delivery of the liquor from the local board to the permittee. Section 25(a) is effective
September 1, 2019
Section 25(b) requires the ABC Commission to adopt rules to implement this section,
including the allowed fee for delivery and the requirements to be an independent
contractor. Section 25(b) is effective when it becomes law.
HB 389 allows sales of beer, wine and mixed beverages in university stadiums. This law
recognizes the difference between beer/wine and liquor by not allowing mixed
beverages sales when the stadium is being used for a sports event sponsored by the
college or university.