HomeMy WebLinkAboutItem 06.dSeptember 14, 2012 Item No.
Resolution Authorizing Permanent Change of Hours for
Lakeville Municipal Liquor Stores
Proposed Action
Staff recommends adoption of the following motion: Approve resolution authorizing a
permanent change of business hours for the Lakeville Municipal Liquor Stores.
Passage of this resolution will allow the three municipal liquor stores to remain open from
9:00 a.m. — 10:00 p.m. Monday thru Saturday on a permanent basis.
Overview
In March, the Lakeville City Council approved the above noted changes in operational
business hours for the Lakeville Municipal Liquor Stores on a seasonal basis.
As the change has produced favorable results in increased revenue and service, we are
requesting that these operational changes in hours become permanent.
Liquor Committee has reviewed and approved the attached recommendation.
Primary Issues to Consider
• In March, it was estimated that the revenue increase would be approximately
$225,000 is this still accurate?
• Does this pose any safety risk to the operation or its employees?
• Was six months enough time to determine the validity of this hour? Won't sales
decrease that hour in the winter months?
Supporting Information
• Resolution authorizing the change of operational business hours
(Signature)
(Title)
Financial Impact: $32,107 Budgeted: Y/N _ Source: Net Income Related
Documents (CIP, ERP, etc.):
Notes:
Staff Analysis of Primary Issues
Consideration for Change In Business Hours
For the Lakeville Municipal Liquor Stores
October 1, 2012
• In March, it was estimated that the revenue increase would be approximately
$225,000, is this still accurate?
Through September 6 or 23 weeks of business, the final hour of sales has resulted in
$149,177 in revenue. So yes, considering summer months are going to be when the
stores witness their highest peaks in that final hour of business, the projected sales
increase of $225,000 appears to be very accurate. This revenue will provide an
estimated increase of nearly $35,000 in additional net income.
• Does this pose any safety risk to the operation or its employees?
We have witnessed no significant increases in the number of incident reports related to
this final hour of business.
• Was six months enough time to determine the sales validity of this hour?
Won't sales decrease that hour in the winter months?
Lakeville Liquors management staff will continue to monitor this. Even within in the first
six months of trial, we saw peaks and valleys within that final hour. However, of the 14
hours of operational business in a day, the hour remained consistently close to the 8 -9
busiest hour of the day, with approximately 4% of the day's daily sales occurring this
final hour. The peaks in that final hour were found to be relevant and consistent with
the general peaks in the overall business for that time period.
CITY OF LAKEVILLE
RESOLUTION NO. 12 -103
RESOLUTION AUTHORIZING CHANGE OF OPERATIONAL HOURS
FOR LAKEVILLE MUNICIPAL LIQUOR STORES
BE IT RESOLVED that the Lakeville Liquor Stores hours of business will be from 9:00
. _ , l : 00 _ _. , . b O cto b er n 20 2
a.rn. �o rv:vv p Monday if�u Satur on a permanen� oasis effective vcroner i, wig.
APPROVED this 1 day of October, 2012
CITY OF LAKEVILLE
Mark Bellows, Mayor
ATTEST:
Charlene Friedges, City Clerk