By Jessie Burchette
jburchette@salisburypost.com
County commissioners are split over whether the Rowan-Kannapolis ABC system needs an efficiency review by outside experts.
Commissioners will hear from the Alcoholic Beverage Control Board and Terry Osborne, the system’s general manager, at their May 18 meeting.
Rowan leaders want the ABC board to explain the relatively small amounts of money turned over to the county by a system that has more than $7 million in annual sales.
Commissioner Tina Hall, who serves as liaison to the ABC board, brought the issue to commissioners Monday night. Hall asked commissioners to make a formal request to the ABC board to rethink its position on an efficiency review.
At their April 21 meeting, ABC board members Marny Hendrick, Gus Andrews and Ken Argo declined a request for an efficiency study. The board also voted against distributing any profits to the county for the first quarter. Previously, the board approved $50,000 for distribution.
Hall included a report on distributions from the system since its inception in 1949, when it was the Rowan ABC system.
The report showed that through the 1980s, the annual distribution was between $300,000 and $400,000. That declined in the 1990s, falling to less than $200,000 yearly. Since 2000, the highest annual distribution was $89,000.
The merger of the system with Kannapolis and the addition of three Kannapolis stores occurred since 2000.
Hall also included copies of e-mails from County Attorney Jay Dees, who made inquiries of state ABC officials concerning the “discrepancy” of monies turned over to the county compared to ABC systems of similar size.
Hendrick, ABC board chairman, responded to Dees in an e-mail, calling his inquiry about an efficiency study “totally inappropriate” and saying the local ABC board is willing to answer all questions.
Hall also provided state ABC figures showing a comparison of systems similar to Rowan-Kannapolis. Many distribute substantially more than the local system.
Hall and commissioners Chairman Carl Ford made clear they would like to see a review of the local system by other ABC officials from across the state.
Vice Chairman Jon Barber and commissioners Chad Mitchell and Raymond Coltrain said they would rather hear the ABC board explain its operations and why the profits are low.
Mitchell left open the door that once he hears from ABC, he might also support an efficiency study.
Barber said he wanted to avoid a confrontational situation with ABC. He noted the agency has a lot of hidden costs.
Coltrain also cited hidden costs, suggesting the ABC board should have the opportunity to meet with commissioners and discuss the system’s finances.
Ford recalled his days in Cannon Mills, saying no one liked to see the efficiency folks come around. But in many cases, they made the job easier.
Ford said he is willing to hear from the ABC board but still wants an efficiency study.
Mitchell also pointed out that since the ABC board has refused to request the review, the county has time to listen. Mitchell noted it will be a couple of years before commissioners can replace current ABC board members.
Andrews’ term expires July 31, with Hendrick’s term ending July 31, 2010, and Argo’s on July 31, 2011.
Members of the ABC board and Osborne sat on the back row listening to the discussion.
Asked if they could be ready to make a presentation at the May 18 meeting, Hendrick said they were ready Monday night.
Andrews, a former county commissioner, advised that the ABC board needed at least an hour to make its presentation.
Contact Jessie Burchette at 704-797-4254.