11-10-1986 Council Packet - Laserfiche WebLink

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positive turnaround in operational prof -'`s, it should be noted that the customer count through �-.,:tober has noted an upswing: 1983 44,801 1984 1985 1986 42,016 ALTERNATIVE' - The options for the Counc 40,637 42,006 ..e az follows: A. Delay a decision pending the fourth quarter results. B. Continue the operation until the fiscal year that it realizes an operation profit (loss) below a specific bench mark, such as a minim-1 return on invEstment. (5- 6% of assets) C. Cease operation within the next 12 months by sale to a private concern. D. Continue the operation indefinitely. RECOMMENDATION - Based on the above discussion together with anticipated inpact of County Road 15 on the business the fact that store employees may have the opportunity to loop for jobs elsewhere or possibly with the new owner. Staff feels the City's continued operation is neither in the best interest of its long term financial stability and therefore I recommend disposition in 1987. This recommendation is given with the understanding that it will cost the City approximately $10,000 in severance benefits and a maximum unemployment compensation expense of $22,000 together with the fact that it may .ealize little in the sale of the business apart from the cost value of its inventory. ($80-90,000) It is further recommended that a public hearing be held prior to final Council action directing disposition. In addition staff will research the means to tie any additional compensation for the rlanager and employees to overall store performance. PROPOSED MOTION - Moved by , seconded by that Council based on this recommendation hold_a public hearing on the matter for the first meeting in December to determine community reaction to the possible sale of this facility to a private vendor. Ayes '.lays cc: Lorraine WcGowan, Liquor Store Manager Tom Kuehn, Finance Director