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March 13, 2012 Item No.
Resolution Authorizing Change of Hours for Lakeville Municipal Liquor Stores
Proposed Action
Staff recommends approval of the following motion: Approve resolution authorizing a
change of business hours for the Lakeville Municipal Liquor Stores.
Passage of this resolution would allow the three municipal liquor stores to remain open
from 9:00 a.m. to 10:00 p.m. Monday thru Saturday on a seasonal basis April 1 thru
September 30
Overview
Currently, Lakeville Liquor Stores are open 9:00 a.m. to 9:00 p.m. Monday thru
Thursday, and 9:00 a.m. to 10:00 p.m. Friday and Saturday. Due to competitive
changes in the market, Liquor Department Staff are seeking approval to remain open
until 10:00 p.m. Monday thru Thursday. Hours on Friday and Saturday would remain
unchanged.
Primary Issues to Consider
• What are the competitive changes in the market?
• Why is this a seasonal recommendation?
• How will this impact sales and net income?
Supporting Information
• Resolution authorizing the change of business hours.
Brenda L. Visnovec
Liquor Operations Director
Financial Impact: Estimated Increase in Net Income of $32,107
Source: Related Documents (CIP, ERP,)
Notes:
Staff Analysis of Primary Issues
Consideration for Change In Business Hours
For the Lakeville Municipal Liquor Stores
March 19, 2012
• What are the competitive changes in the market
The City of Burnsville recently amended their city ordinance to allow all liquor stores to
remain open until 10:00 p.m. Monday through Saturday. Previously, city ordinance
required the stores to close at 8:00 p.m. Monday through Thursday.
In addition, the Cities of Apple Valley and Farmington also close at 10:00 p.m.
• Why is this a seasonal and not a permanent recommendation
Until 1999, we were open until 10:00 p.m. Monday through Thursday. It was
determined at that time that the final hour of business did not warrant the additional
hour we were operating at a loss for the final hour.
We are making the recommendation as seasonal hours in order to have some time to
determine the profitability of the action.
If determined that remaining open is beneficial, the liquor department staff would come
back with a resolution seeking council approval to make this a permanent revision.
6 How will this impact sales and net income
As it has been 13 years since we were last open until 10:00 p.m. it is difficult to make
any tangible presumptions. However, if the amended final hour results provide only
50% of the net sales that came from the 8:00 to 9:00 hour of business in 2012, it would
result in an increase in sales of $225,000 and a gross profit of $56,859. Increased
labor expenses would be approximately $24,752 resulting in a potential increase in net
income of $32,107.
CITY OF LAKEVILLE
RESOLUTION NO.
RESOLUTION ESTABLISHING
LIQUOR STORE HOURS
BE IT RESOLVED that the Lakeville Liquor Stores hours of business will be from 9:00
a.m. to 10:00 p.m. Monday thru Saturday on a seasonal basis from April 1 through September 30.
APPROVED this 19th day of March, 2012
CITY OF LAKEVILLE
Mark Bellows, Mayor
ATTEST:
Charlene Friedges, City Clerk