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4 City Council Regular Meeting Minutes August 12, 2014 Page 4 1 Mayor Faust stated the Organized Collection Statute requires the contract to be between three 2 and seven years and the City received bids for a five-year contract and a seven-year contract. 3 4 Motion by Councilmember Jenson, seconded by Councilmember Stille, to approve a five-year 5 agreement with the City's licensed collectors pursuant to the Revised Proposal. 6 7 Motion carried 4-0. 8 9 D. Liquor Operations Mid -Year Report. Mike Larson Liquor Operations Manager, 10 reporting. 11 12 Liquor Operations Manager Larson presented the mid -year report for liquor operations and stated 13 that profits from liquor operations are used for reducing the property tax levy, providing funds 14 for special projects, and providing funds for equipment purchases. He reviewed the five-year 15 profit history stating that since 2009, the liquor operations have averaged $485,000 in net profit 16 each year. He stated that through June 2014, sales have decreased $199,000 and net profits have 17 decreased $56,000 and explained that possible factors for the decrease includes weather, some 18 decreased shopping traffic at Silver Lake Village, and increased competition from brew pubs and 19 new off sale liquor stores. He stated that 2014 sales are projected at $6.4 million and 2014 net 20 income is projected at $325,400. He discussed several 2014 accomplishments, including many 21 wine and beer sampling events and increased social media and print advertising to combat the 22 decrease in sales. He stated they have been awarded the "Best Wine" and "Best Beer" selection 23 by Lillie Suburban Newspapers Readers Choice Awards. He stated that upcoming events 24 include the Touch a Truck event on September 13`h, the ten-year anniversary of the liquor stores 25 in their current locations, and October beer and November wine events, adding they are also 26 looking into implementing a customer loyalty program. 27 28 Mayor Faust noted that the City anticipated some pressure on its liquor operations based on what 29 is happening in the marketplace and urged the Liquor Operations department not to lower its 30 standards in any way. 31 32 Councilmember Stille agreed that the Liquor Operations should not alter its standards by any 33 means and stated the Liquor Operations has been a great operation and he was certain the 34 community would continue to support it. 35 36 Councilmember Gray stated he continues to hear from people that have tried other places that 37 they come back to the St. Anthony liquor stores and they want to do business here, adding that it 38 is not all about price and he urged the Liquor Operations staff to keep up the great work. 39 40 VII. REPORTS FROM CITY MANAGER AND COUNCIL MEMBERS. 41 42 City Manager Casey reported that he participated in Night to Unite on August 5a' along with the 43 Liquor Operations Manager, Finance Director, and Public Works Director and they all enjoyed 44 meeting residents. 45 46 Mayor Faust expressed the thanks on behalf of the City Council to the City's department heads 47 for taking the initiative to participate in Night to Unite and stated that this speaks volumes about 48 their commitment to the City.