HomeMy WebLinkAboutItem 06.c
Date: October 2, 2017 Item No.
MOTION ADOPTING CHANGE OF LIQUOR DEPARTMENT
PREMIUM DISBURSEMENT POLICY
Proposed Action
Staff recommends adoption of the following motion: Move to approve changes within the
Lakeville Liquors Premium Disbursement Policy.
Overview
The Liquor Department’s Premium Disbursement Policy first took effect February 20, 2007.
This policy contained specific procedures for the disbursement of dealer loaders and premiums
(premiums are items of value received by the liquor store for meeting purchase ordering
objectives).
This policy has become obsolete and needs modification.
Changes within the policy, which have been reviewed by the City Attorney include:
• Currently, Liquor Committee review and approval is required for disbursal of items.
The revised policy places this responsibility on the City Administrator or designee.
• The policy as written required that all items not utilized for Capital Outlay must be sold
through silent or city asset auctions. The revised policy, as proposed, allows items to be
sold or used in manners as long as public expenditure criteria is met as follows:
o The activity will benefit the community as a body
o The activity will benefit or directly relates to functions of government
o It cannot benefit a private business or entity
Primary Issues to Consider
• If approved, what are some examples of other uses that these items may be approved for?
Raffles at Community Development conferences and Chamber fundraisers that have
potential to improve residential or commercial growth.
Financial Impact: Unknown Budgeted: Source:
Related Proposed Policy
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Brenda Visnovec, Liquor Operations Director
PREMIUM DISBURSEMENT POLICY
POLICY
Lakeville Liquors is allowed to accept premiums/dealer loaders for quantity purchases on
behalf of the City of Lakeville. As received, these items are to be documented, recorded
and stored at Lakeville Liquors, or other secure city owned facility, until they are
reviewed and approved for disbursement by City Administrator or his/her designee.
Consideration of disbursement will be given on the following criteria:
1. Capital Outlay:
If the item has been requested as a capital outlay item by another department,
the item will be issued to the department in need with notification also provided to
the Finance Department.
2. Other Public Purpose:
With approval by the City Administrator, items may be used for “public purpose”
when the activity meets the following:
• The activity will benefit the community as a body.
• The activity directly relates to functions of government.
• The activity does not have, as its primary objective, the benefit of a
private interest.
3. Sale of Assets:
Excess dealer loaders or displays that are not issued based on the first two
criteria will be sold through auction, with resolution and approval by the city
council.