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Home My WebLink About2021 ABC Board Minutes Orange County ABC Board Open Meeting Board Minutes Tuesday January 19,2021 The Orange County ABC Board held its regular meeting on Tuesday, January 19, 2021 at 8:30 AM via Zoom telecommunication.These are the minutes of the Open Session. Present: Patrick Burns,Chairman Jane Cousins,Vice Chairman Mike Zito,Member Elizabeth Carter,Member Alice Mahood,Member Tony DuBois,General Manager Angela Willoughby,Asst. GM Ron McCoy,Finance Officer Angel Neighbours,Board Secretary Absent: Chris Willett,Beemer,,Hadler&Willett,P.A., Earl McKee,BOCC Liaison Visitors: Chief Duane Hampton,Hillsborough Police Department Lt.Tony Sorrell and Inv.Mondrez Pamplin,Chapel Hill Police Department Lt.Brian Whitehurst,Orange County Sheriff Department Brad Ward,Carrboro Police Department Call to order: at 8:30 am, a quorum was present and Mr. Burns, Board Chairman, called the regularly scheduled Board Meeting to Order. Mr.Burns 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. Burns 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 present said nay. 1 Approval of the Open meeting Agenda: Ms. Mahood made a motion to approve the agenda,Mr. Zito seconded the motion and the vote carried 2 Meeting Minutes: The Open Meeting Minutes for November 17, 2020 were presented. Discussion was held. Mr. Zito made a motion to accept the open session minutes,Ms. Cousins seconded the motion and the vote carried. 3. 2020-2021 Law Enforcement Mid-Year Reporting: Law Enforcement presented a mid-year update to the Board. Each Law Enforcement agency reported on the challenges throughout this past year with Bar and Restaurant closures from COVID-19 and conducting their compliance checks and Bars training. All businesses can elect to have an online BARS training for their employees. All agencies are looking forward to collaborating together within the County and start back up with more DWI and compliance checks. After each presentation, each agency answered questions from the Board. I 4. Consent Agenda:November 2020 a.Financial Reports: i.Comparative Statement of Net Assets ii.Comparative Revenue and Expenses for November 2019 and November 2020 iii Actual-to-Budget November 2020 b.November 2020 and Year-to-Date Retail Sales i c.Statewide Sales Report I I i I Open Session 1/19/2021 Page 1 of 2 pages I Orange County ABC Board Open Meeting Board Minutes Tuesday January 19,2021 Discussion was held.Ms. Mahood made a motion to approve the November 2020 Consent Agenda, Mr.Zito seconded the motion and the vote carried. 5. Consent Agenda: December 2020 a.Financial Reports: i.Comparative Statement of Net Assets ii.Comparative Revenue and Expenses for December 2019 and December 2020 iii Actual-to-Budget December 2020 b.December 2020 and Year-to-Date Retail Sales c.Statewide Sales Report Discussion was held.Mr. Zito made a motion to approve the December 2020 Consent Agenda,Ms. Cousins seconded the motion and the vote carried. 6.Management Updates: 1.Law Enforcement:This report is required be the NCABC. 2.Store Maintenance and Repairs:A new roof at the main office has been completed.The upfits on Store#1 in Hillsborough and Store#6 at the Durham County line will begin in February. 3.Business Insurance: The Boards business insurance was up for renewal January 1, 2021. The renewal was quoted and the Board signed with Surry Insurance with a total cost of$66,000. This is a saving of approximately. $17,000. 4.Mebane Property Closed: The purchase of the Mebane lot behind our existing building has closed and combining the two pieces of property has been completed. 5.Extra Duty Pay: A background of all extra duty pay paid to employees from April 2020- August 2020 was presented to the Board. The General Manager proposed a bonus to all employees for hours worked from November 22, 2020-January 2, 2021.Discussion was held. Ms. Mahood made a motion to give a bonus of$3.00 per hour to fulldme employees and $1.50 per hour to all paritime employees for.hours worked. Ms. Carter seconded the motion and the vote carried 7 Families First Coronavirus Response Act: The FFCRA requires certain employers to provide their employees with paid sick leave for specified reason related to COVID-19. These provisions expired on December 31,2020. On December 27,2020 a new bill was signed which included an update on FFCRA and affirms that the mandated leave expired on December 31,2020. However as of January 1, 2021 employers may opt to extend the leave through March 31,2021 and tax credits would be available in the same manner they were available in 2020. Staff recommends the Board extend the FFCRA leave and receive the tax credit. Discussion was held. Ms. Mahood made a motion to extend the leave and receive the tax credit,Ms. Carter seconded the motion and the vote carried. No Closed Session needed. Board Comments: Board members appreciated staff for doing a great job At 9:47am,Mr.Zito made a motion to adjourn,Ms. Carter seconded the motion and the vote carried Meeting adjourned. '--2V��l�/ 7 / Chair's Signature and Date Board Secretary's Signature and Date Open Session 1/19/2021 Page 2 of 2 pages Orange County ABC Board Open Meeting Board Minutes Tuesday February 16, 2021 The Orange County ABC Board held its regular meeting on Tuesday, February 16, 2021 at 8:30 AM via Zoom telecommunication.These are the minutes of the Open Session. Present: Patrick Burns,Chairman Jane Cousins,Vice Chairman Mike Zito,Member Elizabeth Carter,Member Alice Mahood,Member Tony DuBois,General Manager Angela Willoughby,Asst.GM Ron McCoy,Finance Officer Angel Neighbours,Board Secretary Earl McKee,BOCC Liaison Absent: Chris Willett,Beemer,Hadler&Willett,P.A., Visitors: Elinor Landess,Campus and Community Coalition Gayane Chambless,Kyle Smith and Keith Bagby,Orange Partnership Courtney Crawford and Pablo Silva,El Futuro Inc Janet Cherry,Chapel Hill Carrboro Schools Call to order: at 8:31 am, a quorum was present and Mr. Burns, Board Chairman, called the regularly scheduled Board Meeting to Order. Mr. Burns 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. Burns 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 present said nay. 1 Approval of the Open meeting Agenda: Ms.Mahood made a motion to approve the agenda,Mr. Zito seconded the motion and the vote carried 2 Meeting Minutes: The Open Meeting Minutes for January 19, 2021 were presented. Discussion was held. Mr.Zito made a motion to accept the open session minutes,Ms. Cousins seconded the motion and the vote carried 3. Consent Agenda: January 2021 a. Financial Reports: i.Comparative Statement of Net Assets ii.Comparative Revenue and Expenses for January 2020 and January 2021 iii Actual-to-Budget January 2021 b.January 2021 and Year-to-Date Retail Sales c.Statewide Sales Report (Discussion was held. Mr. Zito made a motion to approve the January 2021 Consent Agenda, Ms. Carter seconded the motion and the vote carried I 4.Management Updates: 1.Law Enforcement:This report is required be the NCABC. j 2.Store Maintenance and Repairs: The Store and office repairs/ improvements are mostly I complete.The Hillsborough location on Hwy 70 will be closed the week of February 15-20 while the new floor is being installed as well as the new doors,ceiling tiles and roof.Parking lots will be striped and sealed in March and April. j Open Session 2/16/2021 Page 1 of 2 pages i I Orange County ABC Board ." Open Meeting Board Minutes Tuesday February 16,2021 3.Board Member Appointment: The Board will have one open seat on July 1. and Mr.Burns is up for his 2nd term. We will receive applications from the B.O.C.C. office. After reviewing the applications,the board will send a recommendation for the open seat,as well as a recommendation for Mr.Burns' second term.The Clerk to the Board of County Commissioners will set a date for our recornmendations to be considered on their agenda. 4.Mebane Project:We are in the final planning stages for the exterior design for the store and are now moving to the interior. We anticipate finalizing the site plan and construction documents by April and putting out for bid in May. 5.2020-2021 Alcohol Rehabilitation and Education Grant:Midyear Presentations: 2020-2021 Grantees presented a mid-year update to the Board.Each grantee reported on their goals,strategies, measurements of success and tools used.They answered questions from the Board as well. Elinor Landess,Campus and Community Coalition Gayane Chambless,Kyle Smith and Keith Bagby,Orange Partnership Courtney Crawford and Pablo Silva,El Futuro Inc Janet Cherry,Chapel Hill Carrboro Schools No Closed Session needed. Board Comments: Mr.Burns stated the upflt and remodeling of the stores look great At 10:ll am,Ms. Cousins made a motion to adjourn,Ms. Carter seconded the motion and the vote carried. Meeting adjourned. 3� /b•Zv2 c chi - 9 1 ® - airs Signature and Date Board Secre ary s Signature d�Date Open Session 2/16/2021 Page 2 of 2 pages Orange County ABC Board Open Meeting Board Minutes Tuesday March 16,2021 The Orange County ABC Board held its regular meeting on Tuesday,March 16,2021 at 8:30 AM via Zoom telecommunication.These are the minutes of the Open Session. Present: Patrick Burns,Chairman Jane Cousins,Vice Chairman Mike Zito,Member Elizabeth Carter,Member Alice Mahood,Member Tony DuBois,General Manager Angela Willoughby,Asst.GM Ron McCoy,Finance Officer Angel Neighbours,Board Secretary Earl McKee,BOCC Liaison Absent: Chris Willett,Beemer,Hadler&Willett,P.A., Visitors: Fiorella Horna,El Centro Trish Hasley&Dean Blackburn,Caree Diem Sean O'Hare,Caitlyn Fenhagen&Shana Harper,CJRD Drug Treatment Court Tova Hairston&Bre Powell,Boomerang Sherita Cobb,Orange County Schools Call to order: at 8:30 am, a quorum was present and Mr. Burns, Board Chairman, called the regularly scheduled Board Meeting to Order. Mr.Burns 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. Burns 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 present said nay. 1 Approval of the Open meeting Agenda: Mr.Zito made a motion to approve the agenda,Ms.Mahood seconded the motion and the vote carried 2 Meeting Minutes: The Open Meeting Minutes for February 16,2021 were presented. Discussion was held. Mr. Zito made a motion to accept the open session minutes,Ms.Mahood seconded the motion and the vote carried 3. Consent Agenda:February 2021 a.Financial Reports: i.Comparative Statement of Net Assets ii.Comparative Revenue and Expenses for February 2020 and February 2021 iii Actual-to-Budget February 2021 b.February 2021 and Year-to-Date Retail Sales c.Statewide Sales Report Discussion was held.Mr. Zito made a motion to approve the February 2621 Consent Agenda,Ms. Carter seconded the motion and the vote carried. Open Session 3/16/2021 Page 1 of 2 pages Orange County ABC Board Open Meeting Board Minutes Tuesday March 16,2021 4.Management Updates: 1.Law Enforcement:This report is required be the NCABC. 2.Store Maintenance and Repairs: The Store and office repairs/improvements are mostly complete.The front doors at the Hillsborough and Eno locations will be replaced Sunday,March 21.Parking lots will be striped and sealed at both locations in March/April on a Sunday. 3.Board Member Appointment:The Board will have one open seat on July 1 and Mr.Burns is up for his 2nd term. The Board has decided Mr. Burns,Mr. DuBios and Ms. Carter will interview applicants via Zoom meeting and the Board will make a decision in the April Meeting. 4.Mebane Project: We have a final site plan completed and,in the process,found out we have to rezone the property as our current ABC store is not on property zoned for an ABC store. We anticipate finalizing zoning, construction documents and the bidding process by May. We need to have this in the budget for next year. 5.2020-2021 Alcohol Rehabilitation and Education Grant: Midyear Presentations: 2020-2021 Grantees presented a mid-year update to the Board.Each grantee reported on their goals,strategies, measurements of success and tools used.They answered questions from the Board as well. Fiorella Horna,El Centro Trish Hasley&Dean Blackburn,Carpe Diem Sean O'Hare,Caitlyn Fenhagen&Shana Harper,CJRD Drug Treatment Court Tova Hairston&Bre Powell,Boomerang Sherita Cobb,Orange County Schools No Closed Session needed. Board Comments: Mr.Zito will look into attending Drug Peatment Court's Graduation. At 10:50am,Ms. Cousins made a notion to adjourn,Mr.Zito seconded the motion and the vote carried Meeting adjourned. /u/ho Z � ``d ?r6 Chair's Signature and D4fc qBoVardecretary's Signature and Date Open Session 3/16/2021 Page 2 of 2 pages Orange County ABC Board Open Meeting Board Minutes Tuesday April 20,2021 The Orange County ABC Board held its regular meeting on Tuesday,April 20,2021 at 8:30 AM via Zoom telecommunication.These are the minutes of the Open Session, Present: Patrick Burns,Chairman Jane Cousins,Vice Chairman Mike Zito,Member Elizabeth Carter,Member Alice Mahood,Member Tony DuBois,General Manager Angela Willoughby,Asst.GM Ron McCoy,Finance Officer Angel Neighbours,Board Secretary Absent: Chris Willett,Beemer,Hadler&Willett,P.A., Earl McKee,BOCC Liaison Visitors: Call to order: at 8:30 am, a quorum was present and Mr. Burns, Board Chairman, called the regularly scheduled Board Meeting to Order. Mr. Burns 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. Burns 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 present said nay. 1 Approval of the Open meeting Agenda: Ms. Mahood made a motion to approve the agenda, Ms Cousins seconded the motion and the vote carried. 2 Meeting Minutes:The Open Meeting Minutes for March 16,2021 were presented,Discussion was held. Ms. Cousin made a motion to accept the open session minutes,Mr.Zito seconded the motion and the vote carried 3. Consent Agenda: March 2021 a.Financial Reports: i.Comparative Statement of Net Assets I Comparative Revenue and Expenses for March 2020 and March 2021 iii Actual-to-Budget March 2021 b.March 2021 and Year-to-Date Retail Sales c.Statewide Sales Report Discussion was held.Ms.Mahood made a motion to approve the March 2021 Consent Agenda,Ms. Cousins seconded the motion and the vote carried. 4.Management Updates: 1.Law Enforcement:This report is required be the NCABC. 2.Store Maintenance and Repairs: The Store and office repairs/improvements are mostly complete.The front doors at the Hillsborough and Eno locations are an issue to be resolved. We have installed mulch at several locations. 3.Board Member Appointment:The Board will have one open seat on July 1 and Mr.Burns is up for his 2nd term.Mr.Burns,Mr.DuBois and Ms.Carter interviewed a couple of candidates.Per the Board's decision,the Board Secretary will send a letter of recommendation to the Board of Open Session 4/20/2021 Page 1 of 2 pages Orange County ABC Board Open Meeting Board Minutes Tuesday April 20,2021 County Commissioners to appoint Judson Williamson as a new board member as well as appointing Mr.Burns to a 21 term. 4.Mebane Project: We have a final site plan completed and, in the process, found out we must rezone the property as our current ABC store is not on property zoned for an ABC store. We anticipate finalizing zoning,construction documents and the bidding process by May. We need to have this in the budget for next year. S.Store Technology Upgrades:Many desktops are ageing out in the stores and office.The stores will receive new desktop computers and several office computers will be replaced as well. 6.'Warehouse Updates: The warehouse has added some new racking to allow the bulk purchases of products on sale which will require purchasing a new forklift.Each warehouse employee will receive forklift training. 5. 2020-2021 Budget Amendment: An amendment to the FY2021 budget was presented. The amendment addresses proposed increases to capital expenditures for improvements to our stores and office,new computers for our stores and office,wall racking and forklift for our warehouse,payoff of the existing loan for property (lot) at 106 Oakdale Drive (Hillsborough) and a decrease to funds allocated for alcohol educations and rehabilitation grants. (see attached). Discussion was held.Ms. Carter made a motion to approve the Budget Amendment,Ms.Mahood seconded the motion and the vote carried. 6 .2021-2022 Rough Draft Budget: Compiling an annual budget entails a thorough examination of the Board's current financial performance and forecasting trends over time.However,the covid pandemic that started to impact business in March 2020 has lasted through the current year and led to unprecedented financial conditions for the Board.While we expect our elevated sales levels to recede in the upcoming year, determining what those sales levels remain a challenge. The 2021-2022 rough draft budget is for review purposes only and can be adjusted until the 2021-2022 Budget is approved in the June 2021 Meeting. 7. Board Goals: Board Goals are directions from the Board of Directors to establish long term goals for growth of the Orange County ABC Board.The pandemic pushed back this process and can be re-established moving forward.Discussion was hold. The Board would like the last written Board Goals to be emailed to them for reference. 8 .2021-2022 Alcohol Rehabilitation and Education Grant Application Distributions: Grant requests were given out in the April 2021 Board meeting for the Board's review.The allocations for 2021-2022 grant will be determined in the May 2021 Board meeting and final decisions in the June 2021 Board meeting. *Mr.Dubois will email all Law Enforcement Grants to the Board members at a later date. No Closed Session needed. Board Comments: Ms.Mahood would like the guidelines for in person meetings from the county. Mr.Zito would like an ongoing recruitment for new Board members. Mr.Burns would like everyone to work as a team and communicate more. At 10.01am,Mr.Zito made a motion to adjourn,Ms. Cousins seconded the motion and the vote carried Meeting adjourned. L-d Chair's Signature and D e Board Secretary's Signature and Open Session 4/20/2021 Page 2 of 2 pages ORANGE COUNTY ABC BOARD i 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 30,2021, Section 1 To Increase revenues related to the upturn In retail(store)sales of spirituous liquor,decrease revenues related to the decline In LBD/commercial sales and increase sales-related expenses(taxes,cast of goods) I cn rease decrease Revenues(retail liquor sales) 5,092,457 Revenues(LBD/commercial sales) 2,135,542 Excise/bottle taxes paid on sales 503,545 Cost of goods 1,568,850 Working capital retained(Change in net position) 884,250 Sectio To increase capital expenditures related to the repairs and Improvements at Store#1(Hillsborough), Store#6(Eno/Durham)and the office(601 Valley Forge Rd.,Hillsborough) Increase decrease Capital improvements/repairs 65,000 Working capital retained(Change in net position) 65,000 Sects To increase capital expenditures related to the purchase of the lot adjacent to the existing Store#4 -(Mebane) Increase decrease Property purchase 8,500 Working capital retained(Change In net position) 8,500 Section 4 To increase capital expenditures related to the purchase,Installation and networking of twelve(12) replacement computers for the stores and the office/warehouse increase decrease Computers/installation 20,000 Working capital retained(Change in net position) 20,000 Section 5 To Increase capital expenditures related to the purchase of new racking and forklift for the warehouse i i Section 6 To increase capital expenditures related to a decrease In debt service with the payoff of an existing loan on the lot at 106 Oakdale Drive,Hillsborough Increase decrease Debt Service(Oakdale lot) 276,275 Working capital retained(Change in net position) 276,275 Section 7 To decrease the distribution of revenues approved for alcohol education and rehabilitation grants due to school closures prompted by the 2020 pandemic increase decrease Alcohol Education and Rehabilitation grants 33,500 Working capital retained(Change In net position) 33,500 Section 8 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 April,2021 Pat Burns, Orange County ABC Chairman I I I I I I i I Orange County ABC Board Open Meeting Board Minutes Tuesday May 18, 2021 The Orange County ABC Board held its regular meeting on Tuesday,May 18,2021 at 8:30 AM via Zoom telecommunication.These are the minutes of the Open Session. Present: Patrick Burns,Chairman Jane Cousins,Vice Chairman Mike Zito,Member Elizabeth Carter,Member Alice Mahood,Member Tony DuBois,General Manager Angela Willoughby,Asst.GM Ron McCoy,Finance Officer Angel Neighbours,Board Secretary Earl McKee,BOCC Liaison Absent: (scheduled) Chris Willett,Beemer,Hadler&Willett,P.A., Visitors: Call to order: at 8:30 am, a quorum was present and Mr. Burns, Board Chairman, called the regularly scheduled Board Meeting to Order. Mr.Burns 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. Burns read the Conflict-of-Interest Statement.The question was asked: does anyone have a conflict of interest with respect to any matters on the agenda?All present said nay. 1 Approval of the Open meeting Agenda: Ms Carter made a motion to approve the agenda,Mr.Zito seconded the motion and the vote carried 2 Meeting Minutes:The Open Meeting Minutes for April 20,2021 were presented.Discussion was held. Ms.Mahood made a motion to accept the open session minutes,Ms Carter seconded the motion and the vote carried. 3. Consent Agenda: April 2021 a.Financial Reports: i.Comparative Statement of Net Assets I Comparative Revenue and Expenses for April 2020 and April 2021 iii Actual-to-Budget April 2021 b.April 2021 and Year-to-Date Retail Sales c.Statewide Sales Report Discussion was held.Ms. Cousins made a motion to approve the April 2021 Consent Agenda, Mr. Zito seconded the motion and the vote carried 4.Management Updates: 1.Law Enforcement:This report is required be the NCABC. 2.Store Maintenance and Repairs: The Store and office repairs/improvements are mostly complete. The front doors at the Hillsborough and Eno locations are an ongoing issue and two new doors have been ordered.We have a solution in place moving forward.Parking lots will be striped and sealed at both locations on a Sunday weather permitting. 3.Store Technology Upgrades: The stores received new desktop computers and several office computers were replaced. Open Session 5/18/2021 Page 1 of 2 pages Orange County ABC Board ' Open Meeting Board Minutes Tuesday May 18, 2021 4.Warehouse Updates: The warehouse has added some new racking to allow for the bulk purchases of products on sale which will require purchasing a new forklift. Each warehouse employee will receive forklift training.This training has been scheduled for June 4"'. 5.Travel Policy: The Board gets annual approval to use the county policy,so it is not necessary to use the state travel policy.Communication has begun on this annual approval and is scheduled on June 1,2021 for the Board of County Commissioner's meeting for approval. 6.Southern Village: The Board is looking in the Southern Village area each time a location becomes available that may suit our needs for a potential new store location. 7.Mebane Project: The rezoning of the property was approved and we are waiting on the approval of the constructions plans.Board may need a meeting scheduled in July to open bids for approval. 5. 2021-2022: Budget Timeline and Draft Budget: The Draft budget for fiscal year 2021-2022 was presented to the Board.Discussion was held.Final Budget approval will take place in the June 2021 Board meeting. 6. 2021-2022 Law Enforcement Funding: Funding request were reviewed, and discussion was held. All allocations are subject to the 2020-2021 budget approval at the June 2021 Board meeting. Orange County Sheriff Office $110,000 Chapel Hill Police Department $ 35,000 Carrboro Police Department $ 10,000 Hillsborough Police Department $ 11,000 7.2021-2022 Alcohol Rehabilitation and Education Grant Funding:Funding Request were reviewed,and discussion was held.All Allocations are subject to the 2021-2022 budget approval at the June 2021 Board Meeting. Boomerang Youth $16,000 Campus&Community $30,000 Carpe Diem $20,000 Chapel Hill Carrboro Schools $40,000 El Futuro $24,000 El Centro Hispano $20,000 Orange Partnership $20,000 Orange County Drug Court $32,000 Orange County Schools $35,000 8.Orange County General Fund:The Orange County ABC Board discussed the distribution to the Orange County General fund for the upcoming year.Allocation for the 2021-2022 fiscal year will be$530,000. No Closed Session needed. Board Comments:All Board members thanked staff for a job well done. Mr.Burns would like GM Evaluations turned in by June 1st and any recommendations to add to the list of Board Goals. At 10.20am,Mr.Zito made a motion to adjourn,Ms. Carter seconded the motion and the vote carried Meeting adjourned. i i 1'5�ZDZ,�I4 A 2�2 Chair's Signature and Date �-— oard Se retary's Signatare and Date Open Session 5/18/2021 Page 2 of 2 pages 1 I Orange County ABC Board Open Meeting Board Minutes Tuesday June 15,2021 The Orange County ABC Board held its regular meeting on'hiesday,June 15,2021,at 8:30 AM at the ABC Board Administrative Office 601 Valley Forge Road Hillsborough,N.C.27278.These are the minutes of the Open Session. Prescint: Patrick Burns,Chairman Jane Cousins,Vice Chairman Mike Zito,Member Elizabeth Carter,Member Tony DuBois,General Manager Angela Willoughby,Asst.GM Ron McCoy,Finance Officer Angel Neighbours,Board Secretary Absent: (scheduled) Chris Willett,Beemer,Hadler&Willett,P.A., Alice.Mahood,Member Earl McKee,BOCC Liaison Visitors: 8:30 am Mr.Burns opened the Public Hearing for anyone who wishes to be heard concerning the FY 2021-2022 Budget. 8:35am Mr.Burns closed the Public Hearing. Call to order: at 8:35 am, a quorum was present and Mr. Burns, Board Chairman, called the regular Board Meeting to Order. Mr.Burns 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.Burns read the Conflict-of-Interest Statement. The question was asked: does anyone have a conflict of interest with respect to any matters on the agenda?All present said nay. l Approval of the Open meeting Agenda: Mr.Zito made a motion to approve the agenda,Ms. Carter seconded the motion and the vote carried 2 Meeting Minutes: The Open Meeting Minutes for May 18,2021 were presented.Discussion was held. Mr.Zito made a motion to accept the open session minutes,Ms. Carter seconded the motion and the vote carried 3 Consent Agenda: May 2021 a.Financial Reports: i i.Comparative Statement of Net Assets ii.Comparative Revenue and Expenses for May 2020 and May 2021 iii Actual-to-Budget May 2021 b.May 202.1 and Year-to-Date Retail Sales c.Statewide Sales Report Discussion was held.Ms.Cousins made a motion to approve the May 2021 Consent Agenda,Mn Zito seconded the motion and the vote carried Open Session 6/15/2021 Page 1 of 2 Orange County ABC Board Open Meeting Board Minutes Tuesday June 15, 2021 4 Management Updates: 1.Law Enforcement:This report is required be the NCABC. 2.Store Maintenance and Repairs: The column was replaced at the Eno store(#6). The parking lot is complete at the Hillsborough store(#1)and the Eno store is scheduled.Both locations are still on the schedule for new doors. 3.Annual ABC Association Meeting: This meeting will be held August 15-17 in Winston-Salem. Any board members wanting to attend should inform staff by June 30. With the annual meeting scheduled on these dates,the board elected to change the Orange County ABC Board meeting to the 241 of August. 4.Warehouse updates: Forklift drivers' training/certification for warehouse staff was completed on June 41. 5.Travel Policy: The Board of County Commissioners approved the board's continued use of the current travel policy. 6.Sothern Village:The Board is looking into the Southern Village area for a potential store location. 7.Mebane Project:The Mebane project is moving forward as expected.There will be a bid opening on June 281 at 12:00 pm.Mr.Zito and Mr.Burns will attend the opening of the bids.On June 301" at 10:00 am we will have a Special Meeting to award a contractor the construction bid. 5 Approval of the 202.1-2022 Budget:Mr.Dubois stated he would like approval from the board to have a 5%pay increase for employees as part of the budget approval process.Discussion was held.Ms. Cousins made a motion to approve the S%pay increase,Ms. Carter seconded the motion and the vote carried Mr.McCoy presented the proposed 2021-2022 budget to the Board.Discussion was held.Mr.Zito made a motion to approve the 2021-2022 Budget as written,Ms. Carter second the motion and the vote carried. (See attached) 6 2020-2021 Year Budget Amendment: Discussion was held.Ms. Carter made a motion to approve the 2020--2021 year end budget amendment,Mr.Zito seconded the motion and the vote carried Closed Session in accordance with NCGS 143-318-11 Personnel Matter. 9:38 am Mr. Zito made a motion to go into closed session.Ms. Carter seconded the motion and the vote carried 10:28 am Ms. Cousins made a motion to return to open session,Mr. Zito seconded the motion and the vote carried Board comments:AU Board member thanked Ms. Cousins for her 6 years on the Board. Ms. Cousins"thanked staff and Board,for allowing her to a part of this amazing board." At 10:37am,Ms. Cousins made a motion to adjourn,Mr.Zito seconded the motion and the vote carried Meeting adjourned. Chair's Signature and Dat oard Sec etary's Signature an Date Open Session 6/15/2021 Page 2 of 2 COUNTY OF O11ANGE .ALCOHOLIC BEVERAGE CONTROL BOARD 601 VALLEY FORGE RD HILLSBOROUGH,NORTH CAROLINA 27278 919-732-302 FAX; 919-732-S829 c>czti_hc(i��l i nil s�1_i n�;u>i�i PAT BURNS,Chair Hoard Members JANE COUSINS,Vice Chair LIZ CAR"rBR TONY DUBOIS,General Manager ALICE MAIIOOD MIKR ZITO ®range County ABC Hoard Budget for FY 2021-22 June 16, 2021 Budget Message The Annual Budget for the fiscal year July 1, 2021 through June 30, 2022 (FY 22) has been prepared in accordance with North Carolina General Statutes and in compliance with the standards of financial 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$24,965,715 and operating costs including payroll are projected at$4,307,815 along with total distributions of$933,000. • Sales growth is projected at a slight decrease due to the sales bubble. • Distributions to Law Enforcement agencies for this budget are$166,000 for alcohol law enforcement in Orange County and the towns of Carrboro, Chapel Hill and Hillsborough and remain well over the statutory requirements. • Alcohol Education funds are statutorily set at 7%or$60,000 (est.) and budgeted at $237,000, staying well above statutory requirements, • Distributions to the Orange County General Fund will be$530,000. i I I Highlights and Key elements of the budget Include: Payroll Continued support of the living wage will increase payroll and will decrease profitability for years to come as raises compound the cost of the workforce.The Covid-19 extra duty pay and increase in the percentage of retirement expenses for each employee will also impact payroll. Capital Improvements,More Improvements and Building Projects We are building a store in Mebane on our existing property with an estimated cost of$2,350,000. (tent and Lease Payments The only lease payments are in Ram's Plaza and Meadowmont and both will increase this year. Training& Education Our education funds available are$10,000 as we maintain our relationship with Catapult 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 normally maintains an employee base of 49 Employees with 34 Full-Time and 15 Part- Time and do not usually expect this number to fluctuate. We had some surge hiring for the extra sales we are experiencing and have created a new category of temporary part time for any part time employee anticipated to be working less than a year. We will maintain enough employees 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 and Law Enforcement.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. QT�— -I�D Tony DuBois General Manager Orange County ABC Board ANNUAL BUDGET ORDINANCE Orange County ABC board Orange County,North Carolina Fiscal Year 2021-2022 BE IT ORDAINED by the ABC Board of Orange County,North Carolina,that the following ordinance estab4shing revenues and setting expense appropriations Is hereby adopted and effective July 1,2021 through June 30,2022, Sectlon 1,Estimated Revenues It Is estimated that the revenues listed below w11I be available during the fiscal year beginning July 1,2021 and ending June 30,2022 to meet the operational and functional appropriations as set forth in Section 2 In accordance with the chart of acounts prescribed by the state ABC Commission. Estimated Revenues Sales: $24,965,715 Other Income; $1,860 Total: 24,967,575 Section 2 Appropriations The following expenses are hereby appropriated for fiscal year 2021.2022 and are funded by the revenues made available through Section 1,herein. Appropriations Taxes based on revenue: $5,929,360 Cost of Sales: $13,169,415 Operating Expanses Sto s Admin/Office Warehouse Total Salaries and Benefits 2,448,320 350,105 18-1,205 2,981,630 Board Member Expense 7,180 7,180 Rent 201,425 20L425 Repairs and Maintenance 53,500 4,000 S7,300 UtllltlesTelephone/Internet 74,750 8,500 18,200 101,450 Insurance-Genr;ral and Bonds 41,105 10,000 22,500 73,605 Store Supplies and Expenses 132,935 20,680 2,000 155,615 Office Supplies and Expenses 23,035 23,035 Servlce/Maintenance Contracts 114,495 12,250 5,700 132,445 Professional Fees(audlt and legal) 20,410 3,000 2,000 25,410 Credit Card Processfng/bank fees 409,050 950 410,DG0 vehIcle expenses 2,695 10,785 13,480 Debt service(I nterest) 124,540 124,54n Contingencicls 250 250 Soo Total 3,496,240 567,185 244,390 4,307,815 Debt Service Debt Service(principal) 1881865 Capital outlay Capital Expenses_ _ _ 2,350,000 Total Estimated Capital Ekpendltures 2,538,865 Total extimated expenses and copltal outlay 6,846,680 Distributions Law Enforcement 166,000 Alcohol Education and Rehab, 237,000 403,000 Other County/Municipal 530,000 Total Dlstrlbutlons 933,000 Working Capital Retained 11,910,880) (Appropriated Fund Balance-Unrestricted) Total Appropriations 24,967,575 Section 9 Copies of this Budget Ordinance shall be furnished to the Orange County Board of Commissioners,the state ABC Commisslon,and to the Budget Officer and Finance Officers to be kept on file by them for their direction In the disbursements of funds. Adopfe the Orange County ARCBoord this SSth day oflune,2021 Pat B cos, Cha(rman,Orange County ABC Board ORANGE COUNTY ABC BOARD Annual Budget for Flucal Year 2022 Bolos: LlquorSales 21,952,995 Wine/Mixer 45,200 LSD 21966,520 Gross Sales 24,965,715 Lose:Taxes on Gross Sales: Taxes 5,929,350 Net Sales: 19,096,355 Loss:Cost of bales Cost of goode sold(Ino,Inventory adjustments) 13,169,415 Grass Profit$ 5,866,940 Gross Profit 91 23.50% Payroll and Related Expenses Salaries and Wages 2,104,120 Payroll Taxes 155,705 Retirement 171,570 Group Health Insurance 365,865 Retiree's Group Insurance 125,000 Health Relmb./Flex 5,600 Cash Short(over) 750 401k 45,075 Processing fees 7,945 Total payroll related expenses 2,981,630 Operating Expenses Board Member/Meeting Expenses/Travel 7,180 Rent 201,425 Repairs&Maintenance-Bldgs 38,585 Repairs&Malntenance-Equlp. 18,915 Utilities,Telephone,Internet 101,450 Business Insurance 73,605 Store Supplies,Bogs&Expenses 141,11E Employee Travel 1,5o0 Office Supplies&Expenses 16,205 Exterior Malnb Services 36,120 Service Agreements(Data/HVAC) 89,000 Postage 3,125 Professional Fees(audit and legal) 25,410 Dues&Subscriptions 3,705 Credit Card Processing/bank fees 410,000 Training and Education/Meeting 10,000 Burglar Alarm and Security 7,325 Vehicle Expense 13,480 Un(forms 3,000 Debt Service(interest Exp) 124,540 Contingencies/Misc. 500 Total Operating Expenses 1,326,185 Operating Income %559,123 Other Income Interest Income 1,300 Otherincome 560 Total Other Income 1,860 Not Income Before Distributions 1156019BS Statutory Distributions Law Enforcement 166,000 Alcohol Rehab&Ed 237,0W 403,000 Other Distributions Orange County General Fund 530,000 Total0lstrouCons 933,000 Net Income After Dist rib's 627,985 capital Outlay Replacement store construction:Mebane 2,350,000 f Debt Service(principal) BB&T(Chapel HIII North) 63,682 ) RSB(Oakdale) _ 105,183 18g'065 1 Total capital expenses 2,538,865 i Working Capital Reduction(Approprlated Fund Balance) (2,350,000) i Working Capital Retained (Appropriated Fund Balance-Unrestricted) 439,120 I I BUDGET AMENDMENT ORANGE COUNTY ABC BOARD The following amendment to the annual budget document for the fiscal year ending June 30, 2021 has been approved and adopted. Section 1. To record additional revenues and expenditures related to elevated sales levels. Increase Decrease Retail liquor sales (revenues) $711,484 LBD sales (revenues) $324,171 Taxes $269,628 Cost of goods $619,023 Working Capital retained $147,005 Section 2. To record adjustments related to changes in payroll-related expenditures. Increase Decrease Taxes $8,900 Retirement $7,860 Health Insurance $17,445 Health Reimbursement/FLEX $4,475 401k $6,235 Working Capital retained $11,395 Section 3. To record adjustments related to changes in capital related expenditures. Increase Decrease Store Shelving $2,030 Warehouse racking $2,215 Debt service (lot payoff) $2,690 I Debt Services(principal) $14,310 Working Capital retained $21,245 i i I Section 4. To record adjustments related to reallocations of operational expenditures. Increase Decrease Repairs& Maintenance-Equipment $12,830 Store Supplies and Bags $5,975 Office Supplies and Expenses $1,715 Exterior Maintenance Services $11,095 Credit card processing fees $100,945 Vehicle expenses $4,540 Board Member/Meeting expenses $2,825 Rent $6,510 Repairs & Maintenance-Buildings $8,395 Business Insurance $6,550 Travel (employee) $2,500 Professional fess(audit/legal) $4,950 Training & Education $9,125 Debt Service (interest) $16,315 Working Capital retained $79,930 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 15th day of June, 2021 i Pat Burns, Orange County ABC Chairman I Ii I I I Orange County ABC Board Open Meeting Board Minutes Wednesday June 30, 2021 The Orange County ABC Board held its Special meeting on Wednesday, June 30, 2021 at 10:00 AM via Zoom telecommunication.These are the minutes of the Open Session. Present: Patrick Burns,Chairman Jane Cousins,Vice Chairman Mike Zito,Member Elizabeth Carter,Member Tony DuBois,General Manager Angela Willoughby,Asst.GM Ron McCoy,Finance Officer Angel Neighbours,Board Secretary Absent: (scheduled) Chris Willett,Beemer,Hadler&Willett,P.A., Alice Mahood,Member Earl McKee,BOCC Liaison Visitors: Call to order: at 10:07 am, a quorum was present and Mr. Burns, Board Chairman, called the special Board Meeting to Order. Mr. Burns 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. Burns read the Conflict-of-Interest Statement. The question was asked: does anyone have a conflict of interest with respect to any matters on the agenda?All present said nay. l Approval of the Open meeting Agenda: Mr.Zito made a motion to approve the agenda,Ms. Carter seconded the motion and the vote carried. 2. Mebane Store Contract Bids:3 bids were opened in public on June 29th at 2:00pm.Bids were: Racanelli $2,635,000 Lowest Responsible Bidder ABi $2,828,010 Riggs-Harrod $2,898,991 Discussion was held Mr.Zito made a motion to hire Racanelll as the contractors for the Mebane store build,Ms. Carter seconded the motion and the vote carried. At 10:32 am,Ms. Cousins made a motion to adjourn,Mr.Zito seconded the motion and the vote carried. Meeting adjourned. D2-----` /2,1,2/ Chair's Signature and Da Ye Board Secretary's Signature and Date i Open Session 6/30/2021 Page 1 of 1 page I Orange County ABC Board Open Meeting Board Minutes Monday July 19,2021 The Orange County ABC Board held its Special meeting on Monday,July 19,2021 at 10:00 AM via Zoom telecommunication.These are the minutes of the Open Session. Present: Patrick Burns,Chairman Mike Zito,Member Elizabeth Carter,Member Alice Mahood.Member Judson Williamson Angela Willoughby,Asst.GM Tony DuBois,General Manager Ron McCoy,Finance Officer Angel Neighbours,Board Secretary Absent: (scheduled) Chris Willett,Beemer,Hadler&Willett,P.A., Earl McKee,BOCC Liaison Visitors: Cap to order: at 10:01 am, a quorum was present and Mr. Burns, Board Chairman, called the special Board Meeting to Order. Mr. Burns 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. Burns read the Conflict-of-Interest Statement.The question was asked: does anyone have a conflict of interest with respect to any matters on the agenda?All present said nay. 1 Approval of the Open meeting Agenda: Ms. Mahood made a motion to apprope the agenda,Ms. Carter seconded the motion and the vote carried. Ms.Neighbours swore in new Board Member Judson Williamson Ms. Mahood nominated M.s. Elizabeth Carter as Vice Chairman, Mr. Williamson seconded the nomination and the vote carried. 2. Mebane Store Contract Bids:Due to an error in the first bid document,the Board elected to reopen the bid process for new bids.Bids were: Racanelli $2,719,000 Lowest Responsible Bidder ABI $2,782,213 Riggs-Harrod $2,744,248 Discussion was held.Ms.Mahood made a motion to hire Racanelli as the contractors for the Mebane store build Ms. Carter seconded the motion and the vote carried. At 10:14am,Mr. Williamson made a motion to adjourn,Ms. Mahood seconded the motion and the vote carried. Meeting adjourned. l A� Zoe � l Chair's Signature Boar and ate d Secretary's SignaqIre, Date Open Session 7/19/2021 Page 1 of 1 Orange County ABC Board Open Meeting Board Minutes Tuesday August 24,2021 The Orange County ABC Board held its meeting on Tuesday, August 24, 2021, at 8:30 AM via Zoom telecommunication. These are the minutes of the Open Session. Present: Elizabeth Carter,Vice Chair Alice Mahood,Member Judson Williamson,Member Angela Willoughby,Asst.GM Tony DuBois,General Manager Ron McCoy,Finance Officer Angel Neighbours,Board Secretary Absent:(scheduled) Patrick Burns,Chairman Chris Willett,Beemer,Hadler&Willett,P.A., Earl McKee,BOCC Liaison Mike Zito,Member Visitors: Art Winstead&.Mason Barringer,Auditors,DMJ&Company Call to order:at 8:39 am,a quorum was present and Ms.Carter,Board Vice Chairman,called the Board Meeting to Order. Ms.Carter 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. Ms.Carter read the Conflict-of-Interest Statement.The question was asked:does anyone have a conflict of interest with respect to any matters on the agenda?All present said nay. Approval of the Open meeting Agenda: Mr.Dubois requested to table the Salary Chart Discussion until all Board members were present. Mr. Williamson stated minutes from previous meetings would need Board members that were present for the meeting to make motions. All minutes were tabled until the September 2021 Board meeting. Ms.Mahood made a motion to approve the agenda,Mr. Williamson seconded the motion and the vote carried. 1 Minutes of the Open and Closed session June 15,2021. Tabled to September 2021 Board meeting. 2 Minutes of the Open Session June 30,2021.Tabled to September 2021 Board Meeting. 3 Minutes of the Open Session July 19,2021. Tabled to September 2021 Board Meeting. 4 Audited Financial Statements for Fiscal Year 2021:Mr.Art Winstead&Mason Barringer of DMJ& Co. presented the audited financial statements for the fiscal year ending June 30, 2021. They also addressed any questions from the Board. Mr. Williamson made a motion to approve the Audited Financial Statements for fiscal year 2021,Ms ; Mahood seconded the motion and the vote carried. Ms.Mahood made a motion to move$1,314,SS0 in revenues(change in net position for FY2021)from Suntrust/Trulst Bank to Roxboro Savings Bank,Mr. Williamson seconded the motion and the vote i carried. i s Open Session 8/24/2021 Page 1 of 2 i Orange County ABC Board Open Meeting Board Minutes Tuesday August 24, 2021 6 Consent Agenda: July 2021 a.Financial Reports: i. Comparative Statement of Net Assets ii. Comparative Revenue and Expenses for July 2020 and July 2021 iii Actual-to-Budget July 2021 b.July 2021 and Year-to-Date Retail Sales c. Statewide Sales Report Discussion was held. Mr. Williamson made a motion to approve the July 2021 Consent agenda, Ms. Mahood seconded the motion and the vote carried. 7 Management Updates: 1 Law Enforcement Reports:This report is required by the NCABC 2 Store Maintenance and Repairs:The doors at store#1 Hillsborough are complete and Racanelli Construction will be installing the new doors at 46 soon. 3 Annual ABC Association Meeting: This meeting was held August 15-17 in Winston-Salem.Mr. Dubois decided to cancel participation in this conference due to health concerns with the Delta variant and no new safety measures were in place at the conference location. 4 Mask Mandates: Beginning August 24,2021, The Orange County ABC Board will require mask being worn at all locations per the new government order. 5 Recurring Topics:The updated recurring topics were presented. 6 Mebane Project Timeline: Mr. Dubois stated that the start date on the Mebane project will most likely be November 2021-December 2021.Steel will arrive around March 2022.The plan is to open the new Mebane location by the Fall of 2022. S Southern Village: Over the last several years the Orange County ABC Board has searched for property in the southern part of the county for a potential new store location. There is currently a proposal from Southern Village to renovate a building in the 300 Market Street space to open an ABC Store.The landlord has committed to a major up fit and redesign both inside and outside the space to entice us to sign a lease. Discussion was held.Ms. Mahood made a motion to start the process of getting approval from the ABC Commission and move forward with the new location at Southern Village,Mr. Williamson seconded the motion and the vote carried. 9 Salary Chart: This item was tabled to the September 2021 Meeting 10 Vaccine Incentive:A vaccine incentive was presented to the Board.Similar financial incentives are in place throughout the county and state. Each Employee that has received their COVID vaccination can send in a copy of the vaccination card by October 1, 2021, to receive their incentive.Un-Vaccinated employees would need to submit a negative COVID test weekly starting Oct 4th,These tests can be administered at local health departments. Failure to submit weekly tests could lead to a loss of scheduled hours.Repeat failure to turn in a weekly test result could lead to suspension or termination.Discussion was held. Ms. Mahood made a motion to approve a$400 incentive for each employee as per these guidelines, Mr. Williamson seconded the motion and the vote carried 11.Board Comments:Board members would like to have contact information for each other. At 9:42am, Ms. Mahood made a motion to adjourn, Mr. Williamson seconded the motion and the vote i carried Meeting adjourned. a67--1 A-d�' � Chair's Signature and ate Board S etary's Signatu a and Date j I Open Session 9/24/2021 Page 2 of 2 1 Orange County ABC Board Open Meeting Board Minutes Tuesday September 21, 2021 The Orange County ABC Board held its meeting on Tuesday,September 21,2021,at 8:30 AM via Zoom telecommunication.These are the minutes of the Open Session. Present: Patrick Burns,Chairman Elizabeth Carter,Vice Chair Alice Mahood,Member Mike Zito,Member Judson Williamson,Member Angela Willoughby,Asst. GM. Tony DuBois,General Manager Ron McCoy,Finance Officer Angel Neighbours,Board Secretary Earl McKee,BOCC Liaison Absent:(scheduled) Chris Willett,Beemer,Hadler&Willett,P.A., Visitors: Call to order: at 8:31 am, a quorum was present and Mr. Burns, Board Chairman, called the Board Meeting to Order. Mr.Burns 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.Burns read the Conflict-of-Interest Statement.The question was asked: does anyone have a conflict of interest with respect to any matters on the agenda?All present said nay. 1 Approval of the Open meeting Agenda: Ms. Mahood made a motion to approve the agenda, Ms. Carter seconded the motion and the vote carried. 2 Minutes of the Open session June 15,2021 were presented.Mrs.Carter made a motion to approve the Open Session minutes as presented,Mr.Zito seconded the motion and the vote carried. 3. Minutes of the Closed session June 15,2021 were presented.Mr.Zito made a motion to approve the Closed session minutes as presented,Ms. Carter seconded the motion and the vote carried. 4 Minutes of the Open Session June 30,2021 were presented.Ms.Carter made a motion to approve the open session minutes a s presented,Mr.Zito seconded the motion and the vote carried 5 Minutes of the Open Session July 19,2021 were presented.Ms.Mahood made a motion to approve the open session minutes as presented,Mr.Zito seconded the motion and the vote carried. 6 Minutes of the Open Session August 24,2021 were presented.Ms.Mahood made a motion to approve the open session minutes as presented,Mr.Zito seconded the motion and the vote carried 7 Consent Agenda:August 2021 a. Financial Reports: i. Comparative Statement of Net Assets ii.Comparative Revenue and Expenses for August 2020 and August 2021 iii Actual-to-Budget August 2021 b.August 2021 and Year-to-Date Retail Sales c.Statewide Sales Report Discussion was held.Mr. Williamson made a motion to approve the August 2021 Consent agenda, Ms Carter seconded the motion and the vote carried. Open Session 9/21/2021 Page 1 of 2 Orange County ABC Board Open Meeting Board Minutes Tuesday September 21, 2021 8 Management Updates: Law Enforcement Reports:This report is required by the NCABC. 2 Store Maintenance and Repairs: The doors at the Hillsborough store #1 are complete and the doors for the Eno store#6 were completed on September 191. 3 BARS Training: Two BARS training classes were held virtually for employees on Monday September 13th and Tuesday September 10. Mondrez Pamplin from the Chapel Hill Police Department was the instructor. 4 Vaccine Update: Many of our staff currently have their vaccination and will receive the $400 incentive from the Board. Employees without a vaccine will need to submit a weekly COV1D test starting October 4th. 5 Southern Village: The 30-day public comment period will end September 231d and the sign will be removed from the Southern Village window. The framework for a lease is being reviewed by the Board's attorney and the landlord.The ABC Commission is scheduled to consider our request for a new location on October 1311 at the next scheduled meeting of the ABC Commission. 6 Mebane Project Timeline: Mr. Dubois stated that the start date on the Mebane project will most likely be November 2021-December 2021.Steel will arrive around March 2022.The plan is to open the new Mebane location by the Fall of 2022. 9 Salary Chart:A potential change to the salary chart was presented.Discussion was held.Mr.Williamson made a motion to increase the starting pay for permanent employees from $14.90 to $15.00 an hour, Ms. Carter seconded the motion and the vote carried. Board would like staff to bring back information concerning potentially implementing the$15.40 Orange County living wage and its effects on payroll compression. i 10. Board Comments:Ms Mahood stated she is available for the ABC Commission meeting concerning the new Southern village store.Mr: Burns went on a ride along with Hillsborough Police Dept during their compliance checks. If other board members would like to attend a ride along,please contact Mr. Burns At 9:42am, Ms Carter made a motion to adjourn, Mr. Williamson seconded the motion and the vote carried Meeting adjourned. 771 is r lv'7- ,� �, 10 � o1 Chair's Signature and Dat Board S eretary's Signatdrc and Date i i Open Session 9/21/2021 Page 2 of 2 i Orange County ABC Board Open Meeting Board Minutes Tuesday October 19,2021 The Orange County ABC Board held its meeting on Tuesday, October 19, 2021, at 8:30 AM via Zoom telecommunication. These are the minutes of the Open Session. Present: Patrick Burns,Chairman Elizabeth Carter,Vice Chair Mike Zito,Member Judson Williamson,Member Tony DuBois,General Manager Angela Willoughby,Asst. GM Angel Neighbours,Board Secretary Earl McKee,BOCC Liaison Absent:(scheduled) Chris Willett,Beemer,Hadler&Willett,P.A., Ron McCoy,Finance Officer Alice Mahood,Member Visitors: Call to order: at 8:30 am, a quorum was present and Mr. Burns, Board Chairman, called the Board Meeting to Order. Mr. Burns 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.Burns read the Conflict-of-Interest Statement.The question was asked:does anyone have a conflict of interest with respect to any matters on the agenda?All present said nay. 1 Approval of the Open meeting Agenda:Ms. Carter made a motion to approve the agenda,Mr.Zito seconded the motion and the vote carried 2 Minutes of the Open session September 21,2021 were presented.Mr.Zito made a motion to approve the Open Session minutes as presented,Ms. Carter seconded the motion and the vote carried 3 Consent Agenda: September 2021 a.Financial Reports: i. Comparative Statement of Net Assets ii.Comparative Revenue and Expenses for September 2020 and September 2021 iii Actual-to-.Budget September 2021 b.September 2021 and Year-to-Date Retail Sales c.Statewide Sales Report Discussion was held.Mr.Zito made a motion to approve the September 2021 Consent agenda,Ms. Carter seconded the motion and the vote carried. 4 Management Updates: 1 Law Enforcement Reports:This report is required by the NCABC. 2 ABC Law Changes:The Governor signed new ABC legislation into law.Mr.Dubois summarized these new laws for the Board. 3 Vaccine Update: All but four employees have been vaccinated and received the $400 incentive approved by the Board.The four unvaccinated will submit weekly test results. 4 Store Security: A manager's staff meeting was held. Store security was one of the topics of emphasis as we move into our busy holiday season. Open Session 10/19/2021 Page 1 of 2 Orange County ABC Board Open Meeting Board Minutes Tuesday October 19,2021 5 Southern Village:The ABC Commission approved a new location at Southern Village on October 13,2021.The timeline for completion and opening is April-June 2022, 6 Mebane Project Timeline: Mr. Dubois stated that the start date on the Mebane project will most likely be December 2021.Steel will arrive around March 2022.The plan is to open the new Mebane location by the Fall of 2022. 5 Return to Work Policy: Our new Workman's Compensation carrier is recommending us to adopt a return-to-work program. We created a program that will follow guidelines from our carrier and will amend our current Workman's Compensation Policy. Discussion was held. A Final draft will be presented in the November 2021 Board Meeting. 6. Board Comments:Board members thanked stafffor their hard work. Ms. Carter and Mr. Williamson stated the new online ordering procedures suggested by the state may be a good idea and to keep the Board up to date on this progress.Mr.Zito asked ff Board meetings could start at 10:00am. The Board agreed to discuss the change in limes with all Board members.Mr.Burns stated that the new Southern Village store location Is a good move for the Board. He also stated he has partnered with Orange Partnership,Orange County Schools,and the Orange County Health Department for a presentatlon December 811 on underage and binge drinking. At 9.10am, Ms. Carter made a motion to adjourn, Mr. Williamson seconded the motion and the vote carried. Meeting adjourned. Chair's Signature and ate BOA Secretary's Signature and Date Open Session 10/19/2021 Page 2 of 2 Orange County ABC Board Open Meeting Board Minutes Tuesday November 16,2021 I The Orange County ABC Board held its meeting on Tuesday,November 16, 2021, at 10:00 AM via Zoom telecommunication.These are the minutes of the Open Session. Present: Patrick Burns,Chairman Elizabeth Carter,Vice Chair Mike Zito,Member Judson Williamson,Member Tony DuBois,General Manager Alice Mahood,Member i Angel Neighbours,Board Secretary Angela Willoughby,Asst.GM Ron McCoy,Finance Officer i Absent:(scheduled) Chris Willett,Beemer,Hadler&Willett,P.A., Earl McKee,BOCC Liaison Visitors: Call to order: at 10:00 am,a quorum was present and Mr. Burns, Board Chairman, called the 1 Board Meeting to Order, i Mr.Burns 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.Burns read the Conflict-of-Interest Statement.The question was asked:does anyone have a conflict of interest with respect to any matters on the agenda?All present said nay. 1 Approval of the Open meeting Agenda: Ms. Mahood made a motion to approve the agenda, Ms. Carter seconded the motion and the vote carried 2 Minutes of the Open session October 19,2021 were presented.Mr.Zito made a motion to approve the Open Session minutes as presented,Ms. Carter seconded the motion and the vote carried 3 Consent Agenda:October 2021 a. Financial Reports: i. Comparative Statement of Net Assets ' ii. Comparative Revenue and Expenses for October 2020 and October 2021 iii Actual-to-Budget October 2021 i b.October 2021 and Year-to-Date Retail Sales c.Statewide Sales Report Discussion was held. Mr. Williamson made a motion to approve the October 2021 Consent agenda,Mr. Zito seconded the motion and the vote carried 4 Management Updates: 1 Law Enforcement Reports:This report is required by the NCABC. 2 Meeting Changes: The starting time for the Board's monthly meeting was discussed and changed to 10:00a.m.moving forward.All meeting times are subject to change with board approval. 3 Network Changes:The Board changed network security companies and went with the same vendor that services our POS system in the stores. There is a significant cost savings, and this will also streamline tech support and operations. i Open Session 11/16/2021 Page 1 of 3 Orange County ABC Board Open Meeting Board Minutes Tuesday November 16, 2021 4 Health and Dental Insurance: The approved budget for 2021/2022 included a 100/0 increase for health and dental insurance.The annual increase was 2%and stays with budget for the fiscal year. We will continue with the same coverage with First Carolina Care which includes pre-65 retirees. S Board Attorney Contract:The Board attorney contract was up for renewal.Discussion was held. Mr. Williamson made a motion to renew the Board attorney contract, Mr. Zito seconded the motion and the vote carried 6 Southern Village: The ABC Commission approved the new store location at the meeting on Oct 13. The lease was signed,and fixtures were ordered the same day. Renovations will be completed by the landlord except for flooring in the sales area, data cabling for the registers and security. Expected completion date is June 2022, 7 Mebane Project Timeline: The store construction start date has been pushed to January 3, 2022, to correspond with the steel production and delivery schedule. 8 ABC Meeting in Raleigh:Mr.Dubois attended the first ABC Board Advisory Committee Meeting in Raleigh. 9 Living Wage: The staff requested direction from the Board concerning the Orange County Living Wage and its current increase.Ms Mahood and Mr. Williamson stated Orange County would like to see Orange County ABC use the living wage structure. Mr. Zito and Mr. Burns stated they would like to see our current salary structure along with potential compression issues related to a living wage increase- 5 Return to Work Policy:Our insurance company,EMS Insurance is recommending we adopt a Return- to-Work program. The Return-to-Work program is a way to support recovering workers to come back to work with restrictions.A draft was presented at the October 2021 meeting.The proposed policy amends our current Workers Compensation Leave policy to include the Return-to-Work program.Discussion was held. Ms. Carter made a motion to approve the updated Workers Compensation Leave Policy,Mr.Zito seconded the motion and the vote carried 6 LGERS Attestation Engagement 2020: In April 2021, we were contacted by the State and Local Government Finance Division of the Department of State Treasury.Orange County ABC was one of 60 local government units selected to participate in an attestation audit of personnel/payroll procedures related to the reporting of wages and retirement data in the state Local Government Employees Retirement System (LGERS). After an extensive review of digital and hard copy personnel files, quarterly and annual payroll financial and tax reports (941/Schedule B; NC-5Q, BLS 3020, NC-101 UI, W-2s), demographic reports, online and paper monthly retirement reports(ORBIT)and confirmations of monthly payments of the Board's obligations,the auditor issued a positive report. 7 Midyear Budget Amendment:Mr.McCoy recommended a Mid-Year Budget Amendment.The budget amendment included a new HVAC at the administrative office, auditing services related to the LGERS attestation and lease hold improvements for the newly leased space at Southern Village.Discussion was held. Ms. Carter made a motion to approve the Mid-Year Budget Amendment for fiscal Year 2022, Mr. Williamson seconded the motion and the vote carried (See attachment) 8 Financing Proposals for Mebane: Requests for proposals for financing the new Mebane store constructions were sent out in September 2021. Given the Board may choose to self-fund all or part of the construction project,we requested two financing scenarios,one for 100%and another for 50%of Racannelli Builders contract.Requests were sent to six banking institutions with whom the Board has dealt previously. We received proposals from four of the six solicited.The Board reviewed all proposals.Discussion was held. Ms Mahood made a motion to accept First Horizons proposal with bank fees not to exceed$IS,000,Ms. Carter seconded the motion and the vote carried. Open Session 11/16/2021 Page 2 of 3 Orange County ABC Board Open Meeting Board Minutes Tuesday November 16,2021 9 Board Comments: Mr. Burns stated there will be a couple of community outreach events taking place on November 30 and December 8. At 12:09pm,Ms. Mahood made a motion to adjourn,Mr. Williamson seconded the motion and the vote carried. Meeting adjourned. -77 F "Loll Chair0�ignatore a4DIfe Board Sec tary's Signature Wd Date Open Session 11/16/2021 Page 3 of 3 Orange County ABC Board Policy and Procedure Manual Workers Compensation Lease and Return to Work Program All injuries arising in the course of employment should be reported by employees, deemed by state law, immediately to the Assistant General Manager with information, such as who, what, when, where, witnesses, and nature of injury. An Employee Work Incident/Injury Report should be filled out as soon as possible. Failure to report injuries immediately may result in denial of the claim by the insurance company. The employee must contact EMC on call nurse, the nurse will access the injury and determine next steps. When an employee is injured in the course of performing,duties related to the job, benefits are available under the North Carolina Worker's Compen tibn Act. This benefit is available to all full-time and part-time employees. An employee absent from duty because of sickness or disability covered by Worker's Compensation laws may: ➢ Elect to receive only those payments made under Worker's Cot, fpensation law without using accumulated vacation or sick leave, or ➢ Elect to use their accumulated vaeationor sick leave to receive as a supplemental payment the difference between their regular salary and the payments received under Worker's Compensation. Accurn,ulated vaoatton or slek leave schedules will be adjust to reflect tim&Aised, Before returning to work, a Physician's Certificate is mandatory to determine the fitness of an employee to resume duties, While on wo rn' coin em tion le ue, the employee will continue to accumulate vacation and sick left-6 to be credif to the em.ployee's account for use upon return to regular full- time duty. If the employee d o%.not return to..regular full-time duty from workers' compensation leave and vacation accumulated only d.14,0ing the first six months of worker's compensation leave will be paid by a ,lum,p sum payment. This payment will be in addition to any unused vacation leave which was. on hand at the time of the injury. Sick leave will also be accumulated accordingly (for therfirst six months) but it applied, not paid. State Statute below for reference No compensation, as defined in G.S. 97-2 11 , shall be allowed for the first seven calendar days of disability resulting from an injury, except the benefits provided for in G_S97_25. Provided however, that in the case the injury results in disability of more than 21 days, the compensation shall be allowed from the date of the disability. Nothing in this section shall prevent an employer from allowing an employee to use paid sick leave, vacation or annual leave, or disability benefits provided directly by the employer during the first seven calendar days of disability, i i 4-14 11/2021 Orange County ABC Board Policy and Procedure Manual Return to Work The Orange County Alcoholic Beverage Control Board is committed to providing a safe and healthy working environment for all employees. As part of this commitment, we shall make every reasonable effort to provide suitable temporary employment to any employee unable to perform their job duties as a result of a workplace injury or illness. This may include a modification to the employee's original position or providing an alternative position, depending on the employee's medical restrictions, providing that this does not create an undue hardship to the Orange County Alcoholic Beverage Control Board. This program applies to all employees with work-related injuries and/or illnesses. Only work that is considered meaningful and productive ak,°{l'be considered for use in the return to work program. Employees placed on a return to works ltChvjll be expected to provide feedback in order to improve the program. All employees, regardless of Injury or illness, will be considered for placement through the return to work program, Return to Work Program All employees injured at work will go to their medical provider for treatment as suggested by EMC OnCall Nurse (OCN). The Orange County Alcdholic Beverage Control l3pard will work within the medical provider's prescribed restrictions to find trans onal work for all' injured errtployees. The work may consist of modified, alternative or a='combination. Modified VNo> � ,Enclude c1rrrting inferring or eliminating specific job duties within the employee's,�.f _�6el 63- meet tl�e•temporarymork restrictions. Alt®rna#i r ork may in�fi'll le ofi iri q the emplr yee a position other than his or her regular job to meet the't ,porary work restrictions.. Transitional WOW,allows an gl (ployee with temporary work restrictions to work in a modified capacity for a defihjgd=period of time, while recuperating from an illness or injury. Note: An employee may I e,41squalified from receiving worker's compensation benefits if they refuse to return to work after a physician has cleared them for work. 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 30,2021. Section 1 To increase expenses for auditing services related to a required examination of personnel files/procedures as mandated by the Local Government Employee's Retirement System(LGERS) Increase decrease Auditing/attestation services $12,375 Working capital retained(Change In net position) $12,375 act on 2 To Increase capital expenditures related to the purchase and installation of a new heat pump at the office(601 Valley Forge Road,Hillsborough) increase decrease Heat Pump System $11,340 Working capital retained(Change in net position) $11,340 Section 3 To Increase capital expenditures related to the purchase and installation of a new Sonos Port music system at the office(601 Valley Forge Road,Hillsborough) increase decrease Sonos Port music system $3,7S5 Working capital retained(Change in net position) $3,755 Section 4 To Increase rent and security deposit expenditures related to the lease at Southern Village (300 Market St,Chapel Hill),the location of our newest store(#008) Increase decrease Security deposit $8,030 Rent(includes CAM fees/taxes/Insurance)(five months) $46,400 Working capital retained(Change in net position) $54,430 Section 5 To increase capital expenditures related to the renovation of the newly leased space at 300 Market Street,Chapel Hill(Southern Village,Store 4008) Increase decrease Leasehold Improvements(flooring,signage) $28,000 Furniture,fixtures and equipment(registers,shelving,security) $112,000 Working capital retained(Change In net position) $140,000 Section 6 To reduce capital funds-allotted for the construction of the new/replacement store in Mebane(Store #4)In the current fiscal year,due to a protracted start date Increase decrease Replacement store construction $221,900 Working capital retained(Change In net position) $221,900 Section 7 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 16th day of November,2021 i i Pat Burns, Orange County ABC Chairman Page 1 of 1 pages l FIRST HORIZON . 1 Glenwood Avenue, Suite 800 Phone (919) 645-6330 Raleigh, NC 27603 Steele.HallAfirsthorizon.coin *CONFIDENTIAL* Term Sheet (For Discussion Purposes) October 27,2021 Orange County ABC Board 601 Valley Forge Road Hillsborough,NC 27278 Attn:Ron McCoy, Finance Officer RE: Option 1: $2,719,000 Loan 100% GC Contract Option 2: $1,359,500 Loan 50%GC Contract Dear Ron: First Horizon Bank(Lender) is pleased to submit the following proposal for your consideration. . This is not a commitment to lend by the Bank,but rather a summary of potential financing terms that can serve as a basis for further discussion. In the event that final credit approval is obtained, the actual terms and conditions of the approval may differ from those outlined below.The terms and conditions of the loan are as follows. TYPE OF LOAN: Construction Permanent Real Estate Loan to finance a new ABC retail store. BORROWER: Orange County ABC Board PURPOSE: The loan proceeds are to be used solely for construction of a new ABC retail store located at 7713 US Highway 70,Mebane,NC 27302. LOAN AMOUNT: The borrower shall have the option of selecting one of the loan amounts listed below: OPTION 1: Up to Two Million Seven Hundred Nineteen Thousand and no/l00 Dollars ($2,719,000.00) OPTION 2: Up to One Million Three Hundred Fifty Nine Thousand Five Hundred and no/100 Dollars($1,359,500.00) INTEREST RATE: The following interest rates will be available depending on the Loan Amount Option and Term selected: OPTION 1: (1)A fixed rate of 2.65% for 21 years will be assessed. (2) A fixed rate of 2.40%for 16 years will be assessed. (3) A fixed rate of 2.10%for 11 years will be assessed. OPTION 2: (1)A fixed rate of 2,80%for 21 years will be assessed. (2) A fixed rate of 2.55%for 16 years will be assessed. (3) A fixed rate of 2.25%for 1.1 years will be assessed. Interest will be computed on the basis of a 360-day calendar year LOAN TERM: After the 12 month interim construction period concludes,it will be followed by a permanent term of 10, 15,or 20 years.The term will be dependent upon the interest rate option selected above. REPAYMENT: Beginning approximately 30 days from closing, 12 monthly payments of interest only will be due and payable.Interest payments will be calculated based on the average outstanding principal balance of the loan. Following the 12 month interest only period,240, 180, or 120 monthly payments of principal and interest payments will be due in an amount necessary to amortize the loan over the permanent term selected. See attached amortization schedules for further detail. GUARANTOR(S): None LATE CHARGES: We will assess a late payment charge of 4%of the unpaid balance of any payment which is at least 15 days past due. COLLATERAL: The Loan shall be secured by a first priority lien on the Premises and all material and other personal property related to the Borrower, subject to the Permitted Encumbrances,as evidenced in the definitive Loan Documents. This shall include: First priority security interest in the real property and all improvements, A title insurance policy will be provided reflecting First Horizon Bank's security position and containing no exceptions not approved by First Horizon Bank. An approximately 7,200 square foot ABC retail store located at 7713 US Highway 70,Mebane,NC 27302. APPRAISAL A commercial evaluation will be ordered that is in form and content acceptable and subject to the Bank.You are responsible for paying the cost of the commercial evaluation. ENVIRONMENTAL An environmental liability risk assessment of the Real Estate Collateral satisfactory to Lender, consisting of an Environmental Data Base Report and an Environmental Questionnaire completed by Borrower. The requirement for an Environmental Phase I or Possible Phase II report will be waived in the event that the Data Base Report and Evaluation shows no recognized environmental conditions and shows that the property is low risk. DEPOSIT RELATIONSHIP We would like to have the opportunity to discuss moving more of the deposit relationship over to the bank that includes the Orange County ABC Board. COMMITMENT FEE: None INSURANCE: At the time the loan is originated, and all times thereafter until the loan is paid in full, you must maintain builders risk/hazard and general liability insurance on the collateral against such risks and in such form and amount as the Bank may require. If the collateral is located in a flood hazard area, flood insurance is also required. The Bank must be named as a loss payee on the hazard policy and additional insured on the general liability policy you must provide us with an insurance certificate. The insurance must be issued by a company approved by the Bank and licensed to transact business in the state in which the collateral is located. PREPAYMENT PENALTY: Option 1: In the event that the borrower selects the 20 year permanent term,they shall have the privilege to prepay the principal amount of the Loan in full or in part subject to the following prepayment premium: 5% for year one,4%for year two,3%for year three,2%for year 4,and 1% for years 5— 10. Option 2: In the event that the borrower selects the 10 or 15 year permanent term,they shall have the privilege to prepay the principal amount of the Loan in full or in part subject to the following prepayment premium:3%for years one and two;2%u for years three and four;and 1% for year five. Under either option, the Prepayment Penalty shall be waived on that portion of the loan which is paid from the net income of the Borrower, excess or extraordinary earnings of the Borrower, or a bona fide third party sale of the property, FINANCIAL REPORTING 1.Audited Financial Statements a. Orange County ABC Board i I i I b. Frequency: Annual Due Date: Due within 10 days of filing but in any event no later than 90 days of each calendar year end. ADDITIONAL INFORMATION If at any time during the life of the loan the IRS were to determine that the subject loan is not a valid debt issuance for Municipalities or that the taxable structure is no longer tax exempt, the Lender will have the right to re-price the loan at that time. EXPIRATION You have 60 days to accept the proposed terms and rates discussed in this Term sheet.This timeframe begins from the date of this term sheet.After acceptance,you have an additional 30 days to close the loan. If you have any questions regarding the above proposal,please feel free to contact me at 919-645-6330.I appreciate the opportunity to discuss this request with you, and I look forward to hearing from you soon. Sincerely, A. Steele Hall Vice President Please indicate your agreement to the terms and conditions set forth in the term sheet above by signing below where indicated. Please return an executed copy to my attention. BORROWER: Orange County ABC Board By: Title: Chair Date I .. i I 1 i