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