After Farmington liquor operations scrutiny, a quiet resignation
City seeks new manager to focus on profits
After more than 20 years with the city, Farmington Liquor Operations Manager Randy Petrofske has resigned.
Farmington City Council members have recently raised concerns about the lack of liquor store profits and operating procedures, especially at the downtown store, but Mayor Todd Larson said he did not know Petrofske’s reasons for resigning the position.
“He resigned a week or a week-and-a-half ago,” Larson said Aug. 10. “I know very little about this one other than he resigned.”
This spring, council reviewed an analysis by the Minnesota Municipal Beverage Association requested by the city that found if changes were made, the city’s liquor stores could be profitable.
The same association recommended profit-building changes in 2007, but they were never implemented, and the city’s liquor store profits have for years struggled to return at most a 2 percent profit margin.
The most recent state auditor’s report found Farmington earned $17,935 (0.4 percent of sales) in net profits in 2010, the lowest of any of the 19 metro municipal liquor operations cited in the report.
One of the biggest concerns council members discussed this spring was an apparent history of inventory practices that may have played a part in the losses because policies did not adequately regulate which employees are authorized to conduct returns, voids and discounts.
A $37,000 budget loss in 2007 was never accounted for, and although the MMBA recommended a thorough review and written policies regarding these practices, no changes were made.
The city has posted an advertisement for the position at the League of Minnesota Cities website.
It states the position pays between $65,645 and $78,806 annually.
Duties listed include supervising staff and inventory control and states, “special emphasis will be placed on the development of a business plan for liquor operations, marketing efforts for two stores, and increasing profits of the operation.”