12-01-2008 WS - Laserfiche WebLink

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Item No: 3 Meeting Date: December 1, 2008 Type of Business: Work Session Administrator Review : Yes City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, Clerk - Administrator Item Title/Subject: Discuss Status of the Amusement Machines at the Community Center Introduction: At the Council’s meeting on November 24, 2008, I alerted the Council members that the amusement machines at the Community Center were going to be removed by the owner, as they were not bringing in enough revenue to justify keeping them there. The owner provided the City with the cost of each machine if we were interested in keeping any or all of the machines. The Council requested this be discussed at the December worksession. Discussion: Earlier this month, Pat Prindle let us know that the amusement devices (the two pool tables, the foosball table and air hockey table, plus the change machine) were in jeopardy of being removed from the Community Center as they were not generating sufficient revenue, according to the owner of the machines. American Amusement Arcades, the owner, has provided the City with a cost breakdown of the machines in case we’d like to purchase any of them. Also provided are the year–to-date revenues generated by the machines. Cost Rev 2008 Air Hockey - $700.00 $217.25 Tornado Foosball - $500.00 $ 87.50 Valley Pool Table - $700.00 $174.00 Valley Pool Table - $700.00 $101.00 Rowe Change Machine - $500.00 n/a I asked Pat Prindle if there were a machine or machines that he’d like to see remain at the Community Center, and he indicated it would be nice to keep the foosball table and one of the pool tables. The cost of the two devices would total $1,200. Given the revenues collected in one year, it would take five years to recover the investment, assuming no malfunction or maintenance along the way. The Council expressed an interest in seeing if there are other vendors who’d be interested in providing the same service. Desaree Crane contacted a few vendors in an effort to seek out comparable quotes, and one such vendor responded. We can get the same machines at the Community Center to replace those removed, but the one vendor who responded indicated the cost to play the games would have to be increased to make it feasible. I have not yet received a response back from the vendor to determine if a compromise on the price-per- play rates can be reached, and have not heard back from American Amusement, whom I asked if it would be viable for them to simply raise their rates instead of removing the machines. I should know more Monday and will provide you with such updates.