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CITY OF ST. ANTHONY <br /> REQUEST FOR CITY COUNCIL ACTION <br /> --------------------------------------------------------- <br /> • Date Submitted Type of Action Requested Agenda Item Number <br /> Resolution <br /> April 22. 1982 Ordinance New Business=l <br /> Date Action Requested X Formal Action/Motion Title Purchase Request <br /> Other <br /> April 27, 1982 Municipal Liquor Store <br /> ------------------------------------------------------------------- <br /> TO: Mayor and Councilmen <br /> FROM: David Childs , City Manager <br /> ----------------------------------------------------- .. <br /> SUMMARY DISCUSSION OF SUBJECT: Ray Nelson , Liquor Operations Manager, has <br /> been studying methods of promotion for the Liquor Operation. One area which has <br /> gained tremendous popularity in on-sale businesses and which has proved very pro- <br /> fitable is the installation of wide-screen television. The system would all'ow the <br /> showing of sports events as well as movies and other items of interst (X-rated or <br /> similar showings would be expressly prohibited) . Presently live music is used to <br /> draw patrons at the cost of $350.00 per week. This would terminate with the addi - <br /> tion of the video system. <br /> FISCAL IMPACT: The cost of the system is approximately 53 ,850 and based on a <br /> savings of $350.00/week through the elimination of live music, the system should <br /> pay for itself in 11 weeks. Thereafter the savings in music costs coupled with <br /> expected better crowds should improve the profit picture substantially. Just the <br /> elimination of the band will save $18,200 annually. The increase in crowds is <br /> nearly impossible to predict, but a recent test of-the system at Liquor 111 brought <br /> very positive results. <br /> ALTERNATIVES : <br /> 1 . Continue present promotion with a band (status quo) . <br /> 2. Cut the band and add nothing (possibly with a loss in business) . <br /> 3. Add a wide-screen T.V. system, and drop the band. <br /> 4. Add a wide-screen T.V. system and drop the band, later adding a VCR or Beta-Max <br /> type system to enhance capabilities. <br /> RECOMMENDATION: Staff recommends option A. A quote from Video Plus for a <br /> Moss TV system with 6' screen was $3,800 ($375-$425 for installation) and a quote <br /> from Digital Den for a Kloss TV system with 6' screen was $3,441 .45 ($300-$500 for <br /> installation) . <br /> Staff recommends awarding the bid to Digital Den with purchase of a VCR at a <br /> later date. <br /> CITY MANAGER' S REVIEW: COMMENTS : <br /> I ' 111 <br />