City could review alcohol policy
Two new businesses, including a restaurant, will soon be selling alcohol in the city of Russellville.
The Russellville City Council approved alcohol licenses for Rancho Viejo Mexican restaurant, which is located on U.S. 43 south across from Cedar Creek subdivision and for the Wal-Mart Supercenter during Monday’s council meeting.
Both businesses will now apply to the state and could be selling alcohol within a week.
The city council may look at adopting a policy suggested by Russellville business owner Jim Sibley, who became the city’s first business to sell alcohol when Legacy Chevron began selling two weeks ago.
Sibley asked the council to adopt a minimum margin of 16 percent on the sale of alcohol. He said that small business owners had suffered in some areas when large retailers sold beer and other alcohol at much lower margins, sometimes as low as two percent.
Sibley’s plan would mean that all beer sold in the city would have same the minimum price.
“Wal-Mart will set a margin that no one else can afford,” Sibley told the city council Monday.
Efforts to reach Wal-Mart spokespeople were unsuccessful Tuesday.
“You want competition, but you don’t want large companies to swallow up local businesses.”
Sibley said that beer is one product that a minimum margin could be placed on because all distributors in the state of Alabama are required to sell it for the same price.
“As a city, we could set a basement price so that we all have a fair chance. This will help the city generate more tax revenue because more people will be able to sell it and we would all be selling it for the same minimum price.”
City councilman David Grissom encouraged council members to think about Sibley’s plan because he saw how large retailers affected his own family’s business.
“My family started a jewelry business in Russellville in 1977 and at that time there were four other jewelry stores,” Grissom said.
“They all lived here and went to school here and shopped here. Now, the no. 1 diamond sales company in the world is Wal-Mart. They lowered the margin to the point that family businesses couldn’t afford it.”
In other business, the council:
• passed a resolution recognizing RES for receiving the 2010 CLAS Banner distinction
• proclaimed April 25-30 as “Don’t Drop it on Franklin County Week”
• passed a resolution authorizing the mayor to sign an agreement for preliminary work for school pedestrian improvements
• passed a resolution proposing to construct a new walking trail and upgrade the existing trail at Sloss Lake
• approved a fire marshal’s job description for submission to the civil service board
• promoted Josh Tompkins to sergeant in the police department
• accepted a grant to purchase life packs for the fire department
• voted to purchase 20 street signs that will include the Russellville Golden Tigers logo that will be placed in areas where there are stoplights
• re-appointed Jerry McDuffa and Charles Canida to the electric board
• approved a contract with Mike Pounders as a part-time compliance officer with the police department.
