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1 City Council Regular Meeting Minutes December 17, 1997 Page 5 1 Motion carried unanimously. 2 B. Approve Change Orders for SAV 2 and Discussion with Mike Larson-regarding the 3 New Store Opening. 4 Morrison explained the budget information in regard to the new SAV 2 Liquor Store 5 construction. He noted the budget currently has a surplus balance of$3,137.87. The planned 6 tire and dumpster enclosure has not been built. It has been determined that the enclosure 7 cannot be built next to the building as planned. The Fire Inspector has stated it must be 8 located ten feet from the building. Staff is recommending that the City hire their own 9 contractor next spring to install some type of enclosure or have the City's Public Works crew 10 do the job. 11 Morrison noted the Council had directed Staff and allowed them to negotiate change orders 12 during the construction of the new SAV 2 Liquor Store. He presented the change orders in 13 the amount of$60,473.00 and noted this amount does not include the tire and dumpster 14 enclosure. 15 Motion by Enrooth, second by Marks to approve all of the change orders in a total amount of 16 $60,473.00 for the SAV 2 Liquor Store. 17 Motion carried unanimously. 18 Morrison presented a list of the expenditures at the new SAV 2 Liquor Store for fixtures and 19 equipment. He noted the expenses were $74,889 and the amount budgeted was $62,900. One 20 cost which was not anticipated was new cooler racking. When Carlson Display Fixtures 21 moved the old cooler they noted the racking system had deteriorated to the point that it would 22 not withstand the move. The new cooler racking was then ordered. 23 Morrison commended Liquor Operations Manager Larson for an outstanding job in managing 24 the SAV 2 Liquor Store project. He noted there were many complications with the project 25 and Mr. Larson handled them all quite well. 26 Mike Larson, Liquor Operations Manager,'reported that operation of the SAV 2 Store is going 27 well. He has received no complaints in regard to the store, product selection or layout. Staff 28 is seeing a lot of new faces and business is being drawn from the Cities of New Brighton and 29 Columbia Heights. The targeted customers for January and February will be Northeast 30 Minneapolis and the CUB Food shoppers. 31 Mayor Ranallo asked if the new SAV 2 is pulling business from the other municipal liquor 32 store. 33 Mr. Larson stated this is a concern which is being monitored. His intention is to attract all 34 new customers to the SAV 2 Store.