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Show 1 REVIEW. A4 September 16. 1965 Post Game Melee EDITORIALS save some too. We believe his request should be granted. The sudden surge in the countys population has far exceeded the growth of the sheriffs division. They now receive 5000 complaints per ionth, and have 57 deputies over a three shift period to answer them. This force is 150 men below the national average, based on per capita studies. Come On Over The Salt Lake County Commission issued a blanket invitation last week to tavern owners everywhere . . . come on over to the county side, where the rules are for the fun of it. easy the recommenThey did so when they refused to follow dation of the Sheriff, expressed through his chief deputy of the Blackhawk George Q. Nielsen, to rescind the license As we have stated before in these columns a license to run a bar or a tavern is a privelege, not a right, n May 6 when the commi ssion refused to suspend two licenses we said: "Licensing of taverns is not intended rather as an extra as a revenue broducing measure to suspend refused On May 6 when the commission not intended ' of taverns is two licenses we said: Licensing an extra as rather as a revenue producing measure . means of guaranteeing the privelege wont be abused. Recognizing that it is possible for a place to be undesirable without breaking the law the ordinance requires that a report from the Sheriff accompany each application and specifially provides for the commission to exercise its judgement in denying, suspending or revoking a license On the advice of law enforcement to sell beer or set-up- s. think the commission should hesitate we don't officers, to suspend or deny a license. licensing powers were intended "Arbitrary? Of course to provide arbitrary control." We havent changed our minds one bit . . . apparently neither have at least two members of the commission. We dont know all the facts in the Blackhawk Club matter, of anything . . . we do feel and we are accusing no-o- ne had that the Sheriffs department information, had given warnings and that they have the responsibility for law enforcement. Failing to back them up only makes their job that much tougher. It just shows those tempted to shade the law that they don't really have to worry, because all the Sheriffs warnings and outcries mean next to nothing when they come before the commission. The County Sheriff s department has enough problems, the commission need not add to them. .... A The men work a five and a half day week, with no over- time During a particularly serious situation, such as this weeks bank robbery, even more overtime is required, without any additional compensation. Chief Nielsen points out that a large number of criminals are repeaters, but that the department now has little time or capability to do any preventive work among prisoners. That would be a good spot to nip at least some crime in the bud. The report issued by the Public Administration Service on police services in Salt Lake Valley states "The department has not been able to keep abreast of recent developments in manpower utilization, data processing techniques, records control and report review and similar admi nistra-tiv- e and operational advances. Thirty men comprise a modest request. Theres an old joke about never being able to find a cop when you need one . . . its especially true if were not willing to to pay employ enough of them. The Many Mtnnl of it ... his department is heres another Lunt by B ill Lucas So why all the fuss about dancing on Sunday???? I was shocked to find members of the sheriff's department and the county commission frequenting bars (of all things) on South State Street and observing people dancing. (It was rumored I find it inthat dancing was sinful). creasingly difficult to believe tiut anyone could find anything sinful in dancing... but this dancing occured on Sunday! Any other day of the week dancing is not sinful. (No, I dont know why) Because I am posessed of a keen intellectual analytical mind 1 tried to find the reason behind this strange metamorphasis that dancing undergoes on a given specified day of the week... Sunday. History has it that the ancient Druids danced on Sunday. The Greeks danced and conUnue to dance on Sunday (some things they never do on The Romans danced on SunSunday). The Egyptians danced on Sunday., day and all the way down thru history vast civilisations danced on Sunday... But!! I can find no historical evidence of a sheriff or county commissioner observing any dance on Sunday and branding it as 'sinful.' Is it a first for Salt Lake County? Are we making history right Modest Request Speaking of the Sheriffs problems, HI one short-hande- d. Chief Deputy George Q. Nielsen has requested 30 more trainees to man the jail. It will cost money, but it will Tiff Flares (Continued from page (Continued irom Page 1) cans and Democrats over the years. The opportunity to staff this section is considered a powerful force in Utah politics But recently Commissioner generally. Marvin G. Jenson stated he would set up a bona fide test of the present system In his statement he said vs. contract. his only interest was to obtain for the county the lowest possible price and best performance on its highways. Horace J. Gunn, manager of the Utah Chapter of Associated General Contractors of America, stated in an open letter to the county commission last Thursday, In a survey of our organization, we cannot find any contractors reporting doing road work for Salt Lake County. To our knowledge, this work is not put out for bid to contractors." Leading a group of about 10 contractors, Mr. Gunn charged that the public is entitled to the benefits of competition, in which taxpayers can receive better construction at a lower price by utilizing the contract method. We are therefore asking that the county pass an ordinance that will require that road construction and asphalt laying be put out for bids. " he said In a special interview after the commission meeting, WoolasA. Macey, superintendent of the department of roads and bridges, pulled out a cost sheet which showed that the county can make its own "mulch - road paving material - for $2 61 a ton delivered to the job site. (Continued on page 7) letters To The Editor here in our provincial vauey? I'll bet there isn't one member in my vast discerning reader audience that can say he hasnt broken the law on Sunday by dancing. According to my Websters Unabridged. ..dancing is the performance, either alone or with others, a rhythmic and patterned succession of movements, commonly to music. We are all guilty of the sin of dancing on Sunday. ..shame on us. Last Sunday I tried to concentrate While in the on not dancing... I failed. shower, I forgot to regulate the water to a nice temperature and I stepped into a icy blast... and friends, Im here to testify, I danced. I danced a thing that made the Frug, the watusi, the Uncle Willie look like King Louie's one step.' I didnt mean to but I broke the law. I broke the law. Luckily, members of the county commission and the sheriff's department wernt standing by observing me in the shower... or gosh knows what might have happened. They might have taken away my dancing pumps. Is there any truth to the rumor that someone told the County Grand Jury that they saw Commissioner Creer dancing last Sunday ...or was it an ingrown toenail? Dear Sir: This Commission is very much concerned with the enforcement of the State Liquor Laws, and especially those which pertain to minors. The store personnel have been warned repeatedly that it is illegal to sell to minors, and that if there is any doubt in their minds as to age, they are to refuse to sell and to have the person in question fill out an Identification Form, which is supplied to all stores. Even with this repeated warning it appears that some of the personnel are not sufficiently alert, and we are asking any person who has evidence that sales have been made to minors, please help us to identify offenders so that they may be properly reprimanded Bulletins are circulated frequently among store personnel on this subject, enclosed is a copy of a recent one Suggestions or criticism of a constructive nature are welcome at any time by this Commission. Sincerely, UTAH LIQUOR CONTROL COMMIS J W. Pace Chairman 1) mouth. The next few minutes were confused and jumbled, and frightening for the five Randy Olympus students. In the process was hit again, and kicked, and two of the other boys were hit. Randy, son of Mr. and Mrs. George W. Barker, was most seriously hurt and has been in bed recupera torn ating all this week from badly a cheek, broken two teeth knocked back, and chin bone. The number of boys in the attacking group was given at between 30 and 40 by one of the five. There were police at the game that seven of them employed by . night South High School during their off duty hours. During the melee Randys brother went to one of the police. He was advised to take Randy to the police station, and the police would take him to the hospital from there. Salt Lake City police are not provided with police cars during their hours, so the policeman was not in a position to get the boys to a hospital any faster than has companions could take him. The five went to the Murray City police Station,- and the injured were taken to Cottonwood Hospital from there. By Wednesday Mr. Barker had names of two of the attackers and had filed complaints with the police. Charges are still According to pending as of Wednesday. one of the boys at the scene all of the boys in the group that attacked the Olympus students were Negroes. Mr. Barker stated that two of the boys whose names he had were 21 and 23 years old. The incident brings into question two aspects of high school football games which worry educators, administrators and parents alike: Should there be night games? and should there be better police protection for the games? Neither the city police or county sheriffs departments has sufficient manpower to completely patrol these games, so the school hires their own, who can, at public functions wear the regular police uniform. But they are not provided with equipment such as cars or motorcycles or radios at these events, while they are paid by the school activity fund, they a re still under the disciplinary jurisdiction of the police or sheriff, as the case may be. There is conflict over the issue of night games in Salt Lake Valley. Dr. Harold Handley, principal of Olympus, is opposed to them without qualification. Probably most principals would prefer not to have them, but the larger attendance helps support the school activity fund, which would otherwise have to be supported by district taxes. The storm of controversy doesnt help Randy Barker to feel muen Detter, and as his father said, It's not fair to expose youngsters to these hazards." The city police are now investigating the matter further, as are the schools involved. . . off-du- ty - Text Of Little Hoover Commission Report (Continued from page 1 1 ti n i 1) in many routine administrative matters. This depth of administrative involvement wastes what should be the valuable time of top executives and impedes the development of capable middle and lower management groups. In addition to the problems of administrative effectiveness, commission salary costs, expenses, and trappings of office" require substantial outlays. These costs are excessive when measured against the cost of a general manager. Inasmuch as this is clearly a business, the recommended board of directors should function in the exact manner of a traditional corporate board of directors and should have the following responsi- out these responsibilities. The most significant of these would be: (1) Planning: Development and implementation of long and short-ranplans for the achievement of department obge jectives. (2) Policy: Formulation of recommended policies for the approval cf the board of directors and establishment ol operating I policies and procedures to implement programs within board guidelines. (3) Management: Day to day direction, coordination, and delegation cf responsibility to department executives and the development of a dynamic and requiring fe system of management. (4) Control: Establishment and mainr tenance of an Integrated system of management controls to provide performance information in order to bilities: quickly identify problems areas and take (1) The board should vigorous corrective action. Objectives: stimulate and oversee the development of (5) Reporting: Preparation of meaningboth broad and detailed objectives for ful reports to the board of directors to each aspect of the department's operation. assist them in evaluating department perObjectives should be short-ter(one formance. of the organizational year ahead) and long-ter- m Implemeutation (five to ten years in the future), objectives should changes recommended assures that very be in writing and clearly stated. sensitive major policy and regulatory Objectives and plans should be cast in matters will receive careful and objective quantitative terms such as expense ratio consideration by the board of directors objectives and rate of turnover targets and provides a structure for dynamic, so that management can be evaluated on effective, and business-lik- e management. the basis of actual performance. (2) Policy: The board should establish basic departmental policies, policies should be framed broadly and flexibly to give clear guidance to department 2. Organize tne Department of Liquor management, but to avoid rigidity that Control into Three Divisions: purchasing inhibits imaginative administration. A Distribution, Retail ( perations, and The Control and Administration (3) performance Evaluation: board should evaluate the performance The present organization of the Liquor and progress of the department, using as Control Commission reflects an measures; 0) progress toward objectives, assignment cf responsibilities toarbitrary the three (2) administrative operations ntlun policy commissioners rather than a logical divisguidelines; and (3) concise and meaningful ion of functions found in a typical management reports by the general manbusiness. Under the present ager. Further, the board should develop plan, there are several opportunities for criteria against which the general ma- Improvement. nagers performance should be measured An appropriately close relationship beand should formally evaluate his pertween purchasing and warehousing is not formance annually and in his presence. provided for in the organizational struc(4) Leadership: The board should be ture, making it difficult to establish conresponsible, in coordination with the gentrols over warehousing and distribution eral manager, for developing and carrying costs. out t planned program of external relaThe supervisor of stores and agencies tions - with the legislature, other state has an unrealistic span cf control with i and local agencies, and the general public. 30 store managers and 57 package agenThe board of directors should serve as cies reporting directly to him. of the public interest and be a watch-do- g The integrity of the audit function is composed cf five members appointed by partially compromised, as the supervisor the governor to serve at his pleasure of stores and r.i agencies exercises some with senate confirmation. Board memcontrol over the field auditors. ? exshould include and prudent bership The important e of effective personnel h perienced community leaders. management is not recognized organizationally. The duties cf the newly appointed inspectors are not related to other control and audit programs. i The geoeral manager should be appoint- In order to eliminate these deficiencies f ed by the board at directors, with the and provide an organizational framework , 1 manThe board that permits effective, business-Ll- e approval at the governor. should have the responsibility to remove agement and control, it is recommended f: the general manager if his performance . that the proposed Department of Liquor has nt met its standards. He should Control be organized into three divisions: responsible and accountable for the Following are some of the major charactmanagement and control cf the eristics of this plan. . activities cf the department cf liquor The grouping of the purchasing, invena control and be gives authority to carry tory, and attribution functions into a li i? ate m Three Divisions v i ; whole-saleret- i General Manager fbe ail single division permits clear assignment of responsibility for the control of costs associated with these functions. The establishment of regional store and agency managers encourages effective geographic supervision of sales outlets. The combination of the auditing and enforcement functions under the controller, provides needed coordination as well as independence from the operating divisions. The need for top management attention to effective personnel administration is recognized through the establishment of a personnel office under the general manager. Most importantly, the recommended plan Is derived from a rational classification of the flow of work through the department and permits assignment of responsibilities which are meaningful and easily understood. Finally, the plan provides a framework for management that better equips the department to identify and implement cost reduction and income improvement opportunities. It indeed provides the structure for a State owned business to operate In a business like way. Cost Reduction 11 COST REDUCTION OPPORTUNITIES The tact that the Liquor Control Commission earn a profit in excess of $5,000,-00- 0 tends to divert attention from the very real opportunities which exist for further improvement in operations. Evaluation of operations points to eight principal areas for cost reduction opportunities. The potential savings represent conservative rough approximations but in each case, the potential gain to the State is sufficient to warrant further detailed study in each area. Cost reduction opportunities which have been identified are set forth In the following recommendations. 3. purchase the Present Warehouse Building The new warehouse In Salt Lake City has been leased for 15 years at an annual rental of approximately $41,000. Steps should be taken to explore the possibility of purchasing the warehouse and cancelling the lease. 4. Consider Buying or Building Stores in Lieu of Renting The annual rental of 30 existing stores approximates $100, 000. Continuing savings may be realized by gradually acquiring ownership of the more profitable retail stores, 5. Consolidate Certain Stores Which are Located Close Together Certain stores in metropolitan areas are located within a few blocks of each other. Consolidation of these stores would reduce expenses considerably and would permit more efficient operation at the remaining location. 6. Convert Small, Low-proStores into Package Agencies The sales volume of some of the larger agencies and smaller stores is reasonably comparable. However, the larp agencies are returning as much as 33 net profit while some of the low. volume stores are fit Simplification at the work being performed and particularly the "paperwork involved In sales transactions. Consdlidation of the order handling and cashiering functions where feasible. Elimination of obvious excess crews. Greater use of part time labor to handle peak loads. Adoption cf the self service, "supermarket" approach in certain stores. The store payroll, including associated payroll charges, is approximately $535,-07. Improve Inventory Turnover per year at present. It is estimated On May 31, 1965, the liquor Inventory that store labor costs could be reduced amounted to $2,560,000, distributed as annually by 20, or approximately $100,000 if the steps outlined above are follows: Central warehouse $1,155,000 taken. Ill INCOME IMPROVEMENT Retail stores 1,103,000 OPPORTUNITIES Package agencies 302,000 The Liquor Control Commission has $2,560,000 a responsibility for regulating the disAt the 1964 level of sales, this overall tribution, sale, and use of alcoholic bevinventory represents a 2 12 month stock erages. However, it also has a responsiand turnover ratio erf 4 8. Analysis of bility for providing sales outlets in areas the individual store inventories shows a where a need exists. In addition, profits wide variation in turnover ranging from a should be maximized within the framework low of 3.5 times per year to a high of of the law and the temper of the community. 14 times per year. Substantial slow mov- To meet this objective, the following recing stocks apparently exist and popular ommendations are made: brands are not being turned over as rapidly as they might. It should be possible to bring about a substantial increase in inventory turnover through; Better and more uniform control pro10. Locate New Stores and Agencies in cedures. Growth and Tourist Areas A reduction in stocks. Many suburban communities in Utah's More frequent delivery service to some metropolitan areas are expanding. Likestores. wise, a number of large and attractive Determination of the optimum Inventory motels have been built in recent years. level requires a study of all significant A study should be made to identify am economic factors. Experience in similar service needrf as they develop. Based on situations, however, indicates that an this analysis, long and short-ranplans overall turnover target of at least 10 should be developed for expanding retail times per year would be desirable and outlets. feasible, if this ratio were attained, it 11. Remove Statutory Restrictions on would mean that present sales could be Policy and Assign this ResponsiPricing supported by an inventory of $1,250,000 bility to the Board of Directors of the instead of the present $2,560,000. This Liquor Control Department would permit the diversion of over$l, 000,-0- 00 Present statutes require a retail markin invested funds to other uses. up over cost of 55 percent on liquor and 8. Provide In House Delivery Service 45 percent on wines, in addition there is to Additional Stores and Agencies an 8 percent school lunch fund tax and a Some of the outlying areas undcn)ted3y 3 5 percent sales tax on the retail price. should continue to be served by common The theory that higher prices automaticarrier. Even In these cases, however, cally produce higher profits not valid for is it may prove economical to have supplies this type of business. Although there are to a transfer point In the commisshipped no competing sources of liquor in Utah, sion' truck. todays mobile society makes it convenient to obtain liquor from neighboring states which Utahns will inconvenience themselves to buy liquor out of state. This activity is difficult and expensive to control 9. Improve Store Labor Utilization and the state could lose more revenue than it makes The staffing costs cf the retail stores through the leakage varies widely. The more efficient stores through higher prices. It thus becomes apparent that pricing averaged $28 of labor per $1,000 of sales in 1964 and the lowest ratio was $23 policy is a matter requiring careful study (Store 34). At the other extreme, this and knowledge of the market and should ratio rose as high as $54 per $1,000 at be flenble enough to permit adapting to sales (Store 18) and several others ran changing market conditions It is recommended that these determinations be left close to $50 Observations indicate that the stores to the board of directors 12. Eliminate Rigid generally are significantly overmanned Budgetary Restricand that labor is poorly utilized in comtions on Liquor Control Operations In the management and operation of a parison with rood commercial practice. Fed action of store labor costs can be wholesaleretaul business, flexibility is accomplished in several ways including reeded m financial matters Legislative the following; budgetary restrictions which limit the earning somewhat less. A comparison suggests that wherever annual sales volume is $250,000 or less, a package agency may be more profitable ard practical than a store unless It Is found that substantial reductions can be made in store expenses through other recommended action. Turnover 00 Relocate slow-movi- ng ge to a fixed operating budget a two year period prevent flexibility. As a result, management is unable to take quick advantage of changing market conditions and cost reduction opportunities. It is recommended that the operating budget be prepared by the general manager and submitted to the Board ofDirec-tor- s for approval. The budget should be designed to provide the board and legislature with sales forecasts, store location department for plans, pricing policies, anticipated operating costs and other pertinent data. The board should be authorized by the legislature to approve and make adjustments In the operating budget subject to broad legislative controls and approval of the Governor. No Agents One final point should be underscored. Currently, liquor manufacturers retain ' ' r 50 representatives to assure that neir products receive optimum consideration in Utah. This particular practice, in the judgment of this Commission, is wrong and should be discouraged. The State of Utah does not need liquor representation; no useful purpose is served by such representation; and the practice itself is mimical to the public interest and contrary to the mores and traditions of our people. 13 Require an Annual Audit of Receipts, Expenditures, and Transactions by an Outside Professional Auditing Firm It is highly important that the publi as well as the legislature and the executive branch of Utah State government develop a high degree of confidence that the financial affairs of the Liquor Control organization are handled prudently, honestly, and with sound business judgment. One way to achieve such a level of confidence is to subject financial transactions to systematic and rigorous financial audits Therefore, an annual audit should be conducted by an independent, private auditing firm, an organization erf substance and reputation whose analysis and judgment is beyond question. This approach is the only sound way to provide the commission's stockholders, the people of Utah, with the protection and assurance that they require. More Income Benefits Benefit s to Utah The liquor control activity is one which produces a significant amount erf revenue for the Stae it is clearly a business activity and should be run Lke a business andev',aatpd against industrial standards. Feco nendations implemented from this report will; Provide an organizational structure for evident and profitable operations Point ways towards cost reductions of about $253,000 These are substantial benefits asd should be aggressively pursued. W urge hat these recommendations be given priority atientior. |