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HomeMy WebLinkAboutAgenda - Item 8-r - Alcoholic Beverage Control (ABC) Board Request to Exceed State Salary Limit for the ABC Board General Manager ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 19, 2018 Action Agenda Item No. 8-r SUBJECT: Alcoholic Beverage Control (ABC) Board Request to Exceed State Salary Limit for the ABC Board General Manager DEPARTMENT: County Manager’s Office ATTACHMENT(S): 1- Memorandum from ABC Board Chair 2- ABC General Manager Compensation Survey INFORMATION CONTACT: Travis Myren, 919-245-2308 PURPOSE: To consider a request from the Alcoholic Beverage Control (ABC) Board to exceed the statutory salary limitation imposed on ABC Board General Managers by up to four percent (4%). BACKGROUND: North Carolina General Statute 18B-700(g1) stipulates that the salary of the General Manager of a local ABC board "shall not exceed the salary authorized by the General Assembly for the clerk of superior court of the county in which the appointing authority was originally incorporated unless such compensation is otherwise approved by the appointing authority." The Chair of the Orange County ABC Board has requested that the Board of Commissioners consider allowing the ABC Board to grant a performance based salary increase to the ABC Board’s General Manager that exceeds the State limitation. The FY 2017/18 authorized salary for the Orange County Clerk of Superior Court is $99,834, and the ABC General Manager’s current salary is $98,834. Therefore, any merit based salary increase greater than one percent (1%) would exceed the State salary limit. According to the ABC Board’s compensation policies, a performance rating of average or above would qualify for an increase of between three percent (3%) and five percent (5%). The ABC Board Chair reports ABC employees will receive an average 3.4% to 3.5% salary increase next fiscal year. The ABC Board General Manager does not receive any additional compensation beyond the amount reported in his annual salary. The ABC Board Chair is requesting authorization to grant a performance based salary increase no greater than four percent above the current statutory limit. Attached is a General Manager compensation survey by the North Carolina Alcoholic Beverage Control Commission (NCABC) indicating current pay ranges for general managers in the NCABC system. As noted on the survey, Pitt County ABC Board sales are comparable to Orange County ABC Board sales, and the NCABC Commission lists the Pitt County General Manager current salary as $101,644. 1 FINANCIAL IMPACT: The Alcoholic Beverage Control Board has sufficient funds budgeted to accommodate the potential salary increase for the General Manager. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this item: • GOAL: ENABLE FULL CIVIC PARTICIPATION Ensure that Orange County residents are able to engage government through voting and volunteering by eliminating disparities in participation and barriers to participation. RECOMMENDATION(S): The Manager recommends the Board approve the ABC Board’s request to exceed the statutory limit on the General Manager’s salary by up to four percent (4%). 2 Attachment 1 COUNTY OF ORANGE ALCOHOLIC BEVERAGE CONTROL BOARD 601 VALLEY FORGE ROAD HILLSBOROUGH, NORTH CAROLINA 27278 919-732-3432 FAX: 919-732-5829 ocabc@mindspring.com orange.ncabc.com Board Members GREGG JARVIES, Chair JANE COUSINS KEITH BAGBY, Vice chair MIKE LASSITER TONY DUBOIS, General Manager JAMEZETTA BEDFORD TO: Chairman Mark Dorosin Orange County Board of Commissioners FROM: Chairman Gregg Jarvies Orange County ABC Board DATE: May 15, 2018 RE: ABC General Manager Salary The purpose of this memorandum is to seek approval for an exemption to salary limits for the Orange County ABC board's general manager. North Carolina General Statute 18B-700(g1) stipulates that the salary of the general manager of a local ABC board "shall not exceed the salary authorized by the General Assembly for the clerk of superior court of the county in which the appointing authority was originally incorporated unless such compensation is otherwise approved by the appointing authority." The FY 2017/18 authorized salary for the Orange County Clerk of Superior Court is $99,834. Our general manager's current salary of $98,834 is one percent below the maximum level allowed by General Statute 18B-700(g1). The ABC board of directors will not make a final determination of the general manager's FY 2017/18 performance rating and accompanying pay increase - if any - until our business meeting on June 21. Should the general manager's performance in this current fiscal year be rated average or above he will be eligible for a salary increase of at least three percent but no more than five percent. Granting a pay increase exceeding one percent of the general manager's current salary would require the BOCC to approve an exemption to the statutory limit. After your June 19 meeting the BOCC will not meet again until September 4. Should the ABC board determine that the general manager has earned a pay increase of more than one percent we would like to grant the manager the salary increase and make it effective July 1. To relieve any uncertainty about whether the ABC general manager will receive a pay increase for his performance this past year and to mitigate any unnecessary delay in receiving what we determine to be a fair and deserved salary, I respectfully request that the Board of Commissioners authorize the ABC board of directors to exceed the statutory limit imposed by GS 18B-700(g1) by no more than four percent. Thank you for your consideration of this request. 3 FY 2017 FY 2017 2017 Section 35.5 Ranking Unit Name Revenues # of Stores Population Tier Level Low High 1 Mecklenburg County 151,920,383 24 1,077,301 4 95,800 174,720 2 Wake County 130,358,564 24 1,048,771 4 97,000 165,000 3 Greensboro 47,044,964 15 527,696 4 55,848 112,607 4 Triad Municipal 45,289,402 14 372,651 4 0 126,000 5 New Hanover County 44,167,206 8 227,261 3 91,109 137,886 6 Durham County 36,072,852 8 306,184 4 0 123,407 7 Cumberland County 35,104,648 10 329,604 4 100,000 112,000 8 Asheville 32,716,652 9 261,532 4 52,880 77,120 9 Orange County 19,545,413 8 142,365 2 75,000 125,000 10 Catawba County 19,260,793 11 156,949 3 0 98,000 11 Pitt County 18,919,765 8 176,424 3 65,000 104,766 12 High Point 18,146,476 6 167,105 3 68,000 99,000 13 Dare County 17,258,882 5 36,792 1 75,000 104,766 14 Onslow County 17,068,220 6 195,621 3 55,130 88,208 15 Concord 15,779,886 6 205,473 3 49,723 96,000 GM/Clerk of Superior Court Salaries 2018 2019 (Section 35.5)Population Tier Rate Rate Less than 100,000 1 89,188 90,972 100,000 to 149,999 2 99,834 101,831 150,000 to 249,999 3 110,480 112,690 250,000 and above 4 121,131 123,554 GM Salary Range 2018 4