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City Council Regular Meeting Minutes <br />March 28, 2006 <br />Page 6 . <br />1 Councilmember Stille stated there is insufficient information. <br />3 Councilmember Horst stated the vision probably would work in the City but more information is <br />4 needed. He suggested the applicant work with staff. <br />5 <br />6 Mayor Faust stated the City is business friendly, but standards need to be met. He added the <br />7 issue before Council tonight is the parking variance and all other issues mentioned are <br />8 secondary. This does not meet the state statute for a variance. <br />9 <br />10 <br />Ayes -- 3 Nays -1 orst Motion carried. <br />11 <br />12 Mayor Faust recessed the meeting at 8:15 p.m. <br />13 <br />14 Mayor Faust reconvened the meeting at 8:20 p.m. <br />15 <br />16 D. Annual De artment Head Reorts. <br />17 a. Liquor Operations, <br />18 Mike Larson, Liquor Operations Manager, addressed the Council and provided an overview of <br />19 liquor operations for 2005. He stated during the year 2005 the City owned and operated two off- <br />20 <br />ff20 sale liquor stores. He reviewed the number and position of employees and their mission <br />21 statement. He provided a summary of year 2005 sales and the number of transactions per store, <br />22 noting total sales were divided as follows, liquor at 30%, beer at 41 %, wine at 26%, and mix and <br />23 miscellaneous at 4%. He presented a 10 -year net profit history. He reviewed year 2005 <br />24 activities and awards, noting liquor operations passed all of their alcohol and tobacco compliance <br />25 checks. He presented year 2006 projects. He encouraged viewers to visit their website and <br />26 provided the address. He reviewed year 2005 customer survey responses noting all categories <br />27 received 90% or above in Excellent or Good. He added in the first three months of 2006 the <br />28 stores' beer selection has increased to over 1,200, the liquor selection to over 1 200 and the wine <br />q > <br />29 selection to over 900 labels. To date, sales are $117,000 above this same time in 2005. <br />30 <br />31 Councilmember Thuesen asked if there has been a trend towards higher sales with specials such <br />32 as micros. He also asked if there have been any unusual trends in wine sales over the past year. <br />33 Mr. Larson replied that segment of the beer market is an increasing trend in the industry. He <br />34 added there has been a large increase in imported wines. The largest change in 2005 was <br />35 consumer buying in that they are going for a higher quality, higher -priced wine than in the past. <br />36 <br />37 Councilmember Thuesen asked now that both stores are up and running and road co'nstructio'n.is <br />38- done how are the two stores doing. Mr. Larson replied there has been a change in product <br />39 purchasing habits of consumers. <br />40 <br />41 Councilmember Thuesen congratulated Mr. Larson and staff for their hard work and effort. <br />42 <br />43 Councilmember Stille commented there were lower sales in 2005 due to construction. Mr. <br />44 Larson replied with roads closed he expected worse than what occurred., He added the stores are <br />45 becoming more of a destination. <br />46 <br />s <br />